Before you decide to declare Chapter 13 bankruptcy, it’s important to consider the pros and cons. It is generally recommended for individuals who can afford daily living expenses but are struggling to make payments on debts.
Pros to declaring Chapter 13 bankruptcy include:
- all property is kept;
- debt payments may be reduced or stretched out;
- can protect home from going into foreclosure; and
- stops wage garnishment.
The following are cons to declaring Chapter 13 bankruptcy:
- some debt may remain;
- disposable income will have to pay for outstanding debts;
- stays on your credit history for as many as 10 years; and
- makes it difficult to file for Chapter 7 in the future.
Bear in mind that these are the basics for Chapter 13 bankruptcy, you will want to discuss your specific situation with a Richardson bankruptcy attorney. For instance, some people are not allowed to file for Chapter 13, such as commodity brokers and stockbrokers.
Contacting a Richardson, Texas Bankruptcy Lawyer
There are advantages and disadvantages to declaring both Chapter 13 and Chapter 7. To learn which may be the best for your situation or if there are alternative options, seek legal advice.
Contact a bankruptcy lawyer at Warren & Migliaccio at 888-584-9614. Before meeting with an attorney, you can learn more about the process and other valuable tips by taking advantage of our FREE bankruptcy guide.