If you are struggling with debt, one option for finding relief is to file for Chapter 13 bankruptcy. You may be wondering if Chapter 13 is the right option for you, so the experienced Fort Worth bankruptcy attorney at Huebner Law Firm, P.C. has put together the pros and cons of filing for Chapter 13 bankruptcy to help make your decision.
The Pros of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is available to people with debts under an established maximum value, and who have a regular income that allows for repayment over time. Although Chapter 7 discharges qualifying debt altogether, Chapter 13 gives debtors 3-5 years to pay off their consolidated debt in regular payments. Any unsecured debt left after 3-5 years is discharged.
The pros of filing for Chapter 13 include:
- Your debts are all consolidated into a single debt payment plan.
- The amount of your payment is adjusted according to your income.
- While paying under a Chapter 13 plan, you get to keep the property you make payments on.
- Your assets are not at risk of being sold.
- All accounts listed in the bankruptcy are removed after 7 years
- There are no income tests involved (there are in Chapter 7 bankruptcy).
- It is viewed more favorably by future lenders because you took responsibility for debt payments.
The Cons of Chapter 13 Bankruptcy
Chapter 13 bankruptcy might not work for you depending on your situation. There are cons to chapter 13 that can affect your case.
The cons of filing Chapter 13 include:
- You'll be making payments for up to 5 years.
- All your disposable income at the time of filing is committed to paying off debt.
- It will appear on your credit score for 10 years.
- You won't be able to file for Chapter 7 bankruptcy for 6 years.
Experienced Fort Worth Bankruptcy Lawyer: Call 817-576-1889
Filing for bankruptcy is stressful and potentially overwhelming, which is why it is important to have the guidance and support of an experienced Forth Worth bankruptcy attorney. If you have additional questions regarding Chapter 13 bankruptcy, our firm can help you determine if it is the best choice for your situation. As a bankruptcy lawyer with more than 18 years of legal experience, you can trust our firm to fight for your financial freedom.
Contact our Forth Worth bankruptcy attorney today at 817-576-1889!