A Chapter 13 bankruptcy can be very beneficial if you cannot qualify for a Chapter 7 bankruptcy. A Chapter 13 bankruptcy has many pros and cons, but if you are struggling with debt and having a hard time making ends meet, it could be the solution that you need.
What are some of the disadvantages of a Chapter 13 bankruptcy?
Some possible disadvantages of Chapter 13 bankruptcy include that:
- Debts have to be paid out of your disposable income
- It may take up to five years to emerge from bankruptcy and pay back what you owe
- If you run into more financial trouble in the future, you can’t file for a Chapter 7 within six years of a Chapter 13
- You still have to get rid of your credit cards
- It will damage your credit for a while
Why would you choose a Chapter 13 bankruptcy?
A Chapter 13 Bankruptcy isn’t all bad. There are many benefits to choosing this form of bankruptcy. Some benefits include:
- Having more time to pay what you owe on your debts
- Keeping all of the property that is in your possession (so long as you are making payments on it)
- That an unlimited number of debts may be relieved, depending on the types of debts that you have. Most unsecured debts can be discharged completely at the end of the bankruptcy’s program
People worry about filing for bankruptcy for many reasons, but the truth is that it can be helpful in reducing the debt you owe. It can also help you get onto better and more financially secure ground.
If you would like to learn more about Chapter 13 Bankruptcy, our website has more information. Please continue reading to find out more about your options.