Breaking the news: Chapter 13

One of the tough parts of my job is when I need to be the one to first break the news that a fresh start isn't in the near future for a client. Chapter 7 just isn't appropriate for all cases.

The four main reasons why clients will file Chapter 13 are:

• Means Test Qualification
• Asset Protection
• Prior Chapter 7 case within 8 years.
• Foreclosure.

Foreclosure and prior case filings are usually simple if/then checkoffs that most callers will have understood well during their own research.

Asset exemptions and the Means Test are more complex topics. Plenty of times I'm the first contact with a solid understanding of these topics. That can make me the bad guy. Read on:

Means test failure.

Unexempt assets.