If a person has a lot of unsecured debt that has been charged off by the lenders and the person is not eligible for Chapter 7, should they file Chapter 13? What are the benefits of filing Chapter 13 in this situation? Thanks!
If your lender "charges it off," it doesn’t mean you off the hook. It could mean that the creditor assigned it to a collection agency or actually sold the debt to a collections agency. Either way the creditor is going to continue to try to collect after charge off, which is actually an accounting issue and does not preclude collections.
When you really need bankruptcy protection is if a creditor decides to file a lawsuit against you. Then it’s time to call in the professional help, it’s time to call in a lawyer.
