Families that have a steady source of income and a reasonable chance to repay debts would choose Chapter 13 rather than Chapter 7 of the U.S. Bankruptcy Code.

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Chapter 13 bankruptcy allows individuals with a regular income to develop a plan to repay all or part of their debts, whereas Chapter 7 involves liquidating assets to pay debts. Families with a steady income and the ability to repay debts would typically opt for Chapter 13 to keep their assets and manage repayment over time.

Families That Have a Steady Source of Income and a Reasonable