Families who have a steady source of income and who want to retain their assets above the protected amount would selectChapter 13 rather thanChapter 7 of the bankruptcy code.

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This is because Chapter 13 allows individuals with a regular source of income to restructure their debts and create a repayment plan over a period of time, while keeping their assets above the protected amount. In contrast, Chapter 7 involves liquidation of assets to pay off debts, and therefore may not be preferable for those who wish to keep their assets.

Families Who Have a Steady Source of Income and Who