The Four Most Vital Facts You Need to Know About Filing for Chapter 13 Bankruptcy
Many people find a Chapter 13 bankruptcy as an attractive alternative to more austere bankruptcy options like Chapter 7 — because a Chapter 13 bankruptcy allows an individual to still repay their debts, just in a more manageable manner.
But before you go ahead and seek help with filing bankruptcy from a local bankruptcy attorney, there are still some things you need to know and take into account about the realities of this type of bankruptcy.
Here are four of the most important Chapter 13 bankruptcy facts everyone needs to know before they file a Chapter 13 bankruptcy:
1. How long does Chapter 13 bankruptcy last?: In comparison to a Chapter 7 bankruptcy, which usually lasts no more than a few months, filing Chapter 13 bankruptcy takes anywhere from three to five years to complete, depending on the amount of debt you have. Before you hire a Chapter 13 bankruptcy attorney, it’s
2. Chapter 13 bankruptcy takes its toll on your credit: Like a Chapter 7 bankruptcy, a Chapter 13 will stay on your credit report for 10 years after you file. However, it is possible to build up your credit score again by staying on top of your payments and practicing good financial habits.
3. You can hold on to your assets in a Chapter 13 bankruptcy: Unlike other forms of bankruptcy, a Chapter 13 debt repayment plan lets you keep your possessions like your home, your car and any other major assets. This makes Chapter 13 the best option for people whose debt isn’t overpowering, but is still difficult to manage.
4. Chapter 13 lets you repay your debts: If you feel a moral duty to pay back your creditors, then a Chapter 13 bankruptcy is the right choice for you. It lets you pay your debt on a schedule that won’t overwhelm your budget, and works based on what’s right for you. Read more.