While it may not be as fast as Chapter 7, and also involves the continued repayment of your debts, Chapter 13 bankruptcy does have its own advantages. In fact, some of these advantages are significant enough that a debtor may choose Chapter 13 despite being eligible under Chapter 7. A major advantage of Chapter 13 is that it is typically possible to include any missed mortgage payments into the repayment plan, thereby giving you a couple years to remedy the mortgage and avoid foreclosure. Amount of years can vary based on state and county. Another advantage of Chapter 13 has to do with the fact that, unlike Chapter 7, there is no possibility of losing assets to liquidation. In the event that the state and federal exemptions would be insufficient to protect your assets against liquidation attempts on the part of bankruptcy trustee, Chapter 13 may be your best answer for protecting your estate.

Further, the credit damage caused by this type of bankruptcy is not as great as it is for the other. Whereas a Chapter 7 bankruptcy can remain on your credit report for 10 years, a Chapter 13 case will disappear from your report after 7 years have passed. Although it may take longer to reach the point when your debts are finally discharged., you do not have to wait until the completion of the process to begin enjoying the benefits of bankruptcy under Chapter 13. From the moment you file your petition, you will be protected by an automatic stay against repossession, wage garnishment and foreclosure.