Chapter 13 bankruptcy provides some benefits that are not offered in the more common Chapter 7 format. Sometimes, Chapter 13 bankruptcy is an option when Chapter 7 is not. Here are a few reasons you might consider a Chapter 13 filing.

If you are in a position to repay some of your debt but can’t repay all of it or make payments as they are currently structured, a Chapter 13 filing lets you reorganize debt through a legal structure. The amount you must pay depends on the type of debt you owe; priority and secured debt must be paid in full. Unsecured debt payments are negotiated. Once a Chapter 13 reorganization is in place, you make monthly payments to a trustee, who then disburses those funds to creditors.

A Chapter 13 bankruptcy can help you keep your home if you are in danger of foreclosure. In many cases, a bankruptcy filing stops foreclosure proceedings. You arrange payments to the lender through the Chapter 13 proceeding. The same is true for repossession of a vehicle.

Chapter 13 might provide some additional options for keeping property that is not exempt under other types of bankruptcy filings. It can also be an option if someone does not quality for a Chapter 7 bankruptcy because one’s income is too high.

Understanding which debt relief option is right for you and your family is important. Numerous options exist for legal relief, but the wrong type of bankruptcy could actually leave you less able to move into the future. Talking with a legal professional can help you understand what the right step is on your journey to a clean financial slate.

Source: FindLaw, “Chapter 13 vs. Chapter 7 Bankruptcy,” accessed Nov. 06, 2015