Families who have a source of income and who want to retain their assets above the protected amount would select Chapter 13 rather than Chapter 7 bankruptcy.

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Chapter 13 bankruptcy allows individuals with a regular source of income to create a repayment plan to pay off their debts over a period of three to five years. This option allows individuals to retain their assets above the protected amount while still paying off their debts. In contrast, Chapter 7 bankruptcy involves liquidating assets to pay off debts and may not be the best option for individuals who want to retain their assets.

Families Who Have a Source of Income and Who Want