There are some benefits to filing a part 13 situation over a part 7 situation that you should keep in mind if you are considering bankruptcy proceeding. As an example, you could have most equity in your home than can be covered of the exemption for real home in a Chapter 7 situation. Declaring Chapter 13 case of bankruptcy automatically remains a foreclosure proceeding, giving you time for you to include to your arrange a method to fix your late mortgage payments that may make it easier to keep the room. Also, Chapter 13 case of bankruptcy have a particular automated stay supply that prohibits range steps against co-debtors (individuals accountable for a debt along with the debtor) for unsecured debt. Also, whereas you are required to surrender all nonexempt assets for distribution under part 7, so long as you successfully complete all of the repayments below your section 13 plan, the nonexempt assets were secured and never need to be turned-over to lenders. Before filing for bankruptcy, you will want to get in touch with a seasoned bankruptcy lawyer, who is able to carry out a way test to find out their qualification to register a Chapter 7 or Chapter 13 personal bankruptcy.