The pros and cons of seeking Chapter 13 bankruptcy protection

On Behalf of | Aug 29, 2022 | Chapter 13 Bankruptcy |

The decision to file for bankruptcy is not an easy one to make. If you are considering this step, it is likely because you have faced months or years of debt problems, contact from debt collectors and more. While this is often a difficult choice, it could be the most effective way to secure your interests and lay the foundation for a better financial future that is free from debt. One option you may consider is Chapter 13 bankruptcy.

Chapter 13 bankruptcy is a popular choice for Tennessee consumers who have certain types of debt. While this specific bankruptcy option can take months to complete, it could offer you a way to keep your home, protect your assets and deal with certain types of debt balances once and for all. Before you move forward, you may benefit from understanding more about the benefits and potential drawbacks of this option.

Is it right for you?

There is no one-size-fits-all solution to dealing with significant amounts of debt. As every situation is different, it is critical to carefully evaluate your specific situation and your options before you decide. Some of the reasons you may consider Chapter 13 bankruptcy include:

  • You will be able to make payments on your debt over a period of time according to the terms of your bankruptcy plan.
  • While under the protection of Chapter 13 bankruptcy, you will be able to keep your personal property.
  • Filing for bankruptcy will halt certain actions underway against you, such as foreclosure efforts and wage garnishment.

While it does offer some benefits, there are reasons why Chapter 13 may not be the ideal choice for you. It can take three to five years to complete this process, and you will have to adhere to the terms of a court-approved debt-repayment plan. A previous Chapter 13 bankruptcy filing may stay on your credit for up to 10 years.

The best financial future for your family

Bankruptcy could offer you a way out of your current debt concerns. If you are struggling with making payments, dealing with contact from creditors and facing the threat of losing your home, Chapter 13 bankruptcy could offer you a way out. An assessment of your income, types of debt you have and other factors can help you understand whether this is the ideal option by which you can seek the best financial future for your family.

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