Chapter 13 bankruptcy is not always the preferred option to use, but it does have its advantages over Chapter 7. One advantage you might be interested in learning about is called lien stripping. This is something that is commonly used in Chapter 13 bankruptcy cases, and its purpose is to remove second and third liens from homes. What is Chapter 13? Chapter 13 bankruptcy is one of the options available to people that are struggling with debt.
Filing for chapter 7 bankruptcy can help you deal with an overwhelming debt problem, but you must pass a means test to qualify for this type of case. The means test is designed to determine if you have enough disposable income to pay your debts. If you do, you won't be able to file for chapter 7 and will have to settle for chapter 13. However, the bankruptcy court does allow debtors to deduct a number of expenses from their incomes, which may make it easier to qualify for chapter 7 bankruptcy.