Should I File Chapter 13?

Should I File Chapter 13?

When your debt is overwhelming, but you still want to take care of your creditors and keep most of your assets, Chapter 13 bankruptcy can be a good solution. While it does not wipe out all your debt, it does allow you to make payments you can afford and still survive. However, before you make any decisions about whether you should file Chapter 13, it’s best to weigh the pros and cons. It is also important that you consult experienced bankruptcy lawyers to help you determine the best route for your situation.

Disadvantages of Filing Chapter 13

Although Chapter 13 allows you to keep some of your assets, you may not be able to keep your credit cards. Since credit cards are usually among the top credit issues that cause financial trouble in the first place, this may not be a negative consideration in the long run. You may also face other limitations as well. The court will only agree to a payment plan that involves using all of your disposable income to pay your past debts.

You will be able to meet your basic needs, but expensive vacations and other entertainment options might not be feasible. If, in the end, you are still unable to recover from your debts, you might need to file Chapter 7, but you won’t be able to file for six years unless you have paid off 70 percent of the original debt. For more information on Chapter 7, click here (

Advantages of Chapter 13

The biggest advantage of filing Chapter 13 is that you will be on a payment plan you can afford. You will also have five years to make those payments, and in the meantime, you will have enough income to survive while you work your way out of debt. Chapter 13 might appear on your credit record for ten years, but it also demonstrates that you made every effort possible to meet your financial obligations.

In addition, you have the option to pay more than you are required to, which can make your credit look even better. You can read more about Chapter 13 bankruptcy here (

Choosing the Right Path for You

In the end, whether it’s Chapter 7 or Chapter 13, most people only file bankruptcy when there isn’t any other choice. While it is not the best thing that could happen to you, having multiple accounts in arrears or lawsuits concerning money you can’t pay, might actually look worse than filing bankruptcy. With bankruptcy, you get a fresh start, which for many people is worth it. Once you are able to share your details with an attorney, you can determine whether bankruptcy is the best option to help you move forward.

Please share this post online with friends and family members who may be considering Chapter 7 or Chapter 13 bankruptcy.

Related Links:

Florida Bankruptcy Attorneys

Chapter 13 Bankruptcy

Florida Chapter 7 Bankruptcy Lawyer

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