If you find yourself thinking about Chapter 13 bankruptcy, you'll first want to make a list of the pros and cons. By doing this, you can decide if it's the right move for you at the present time.
The biggest drawback of any bankruptcy is the long lasting impact it will have on your credit score. While you can recover from this, it will take many years to do so.
Other drawbacks include:
-- It can take as long as five years to repay all your debts throughout Chapter 13 bankruptcy.
-- You will lose your credit cards.
-- This has nothing to do with any child support or alimony obligations. You'll still owe this.
On the plus side, here are some benefits of Chapter 13 bankruptcy:
-- You are given enough time to repay your debts, knowing in the end that you'll have a fresh start.
-- The opportunity to keep the property you are making payments on through your repayment plan.
-- It's easier to qualify for Chapter 13 bankruptcy than Chapter 7.
With all this in mind, you need to answer one very important question: Is Chapter 13 bankruptcy the right decision for you at the present time?
There's a lot to think about, even more than what you see above, so it's imperative to make a decision based on your personal situation and financial goals.
If you decide that Chapter 13 bankruptcy is the way to go, learn more about the process and your legal rights. This will help you move forward in the appropriate manner without wasting any time.
Source: FindLaw, "Pros and Cons of Declaring Bankruptcy under Chapter 13," accessed Oct. 04, 2016