You probably already know how difficult it is to stay ahead in the nation’s economic environment. Despite your very best efforts, you may have reached the conclusion that bankruptcy is the only way to address your financial hardships. While it can be a sad realization, you are in good company as many other Wisconsin residents are in the same situation.

If you are considering a chapter 13 approach, it is time to examine the upside and the downside of chapter 13 bankruptcy. For many, this is the best way to make a firm decision and go about the process of starting fresh.

The upside

  • You will have more time to pay off your debts, and in some cases, flexible payment options.
  • You can hold on to the property included in a chapter 13.
  • As soon as you file a chapter 13, you can start rebuilding your credit.
  • This approach puts a stop to aggressive debt collection tactics.
  • Chapter 13 bankruptcy will alleviate many of your financial obligations.

The downside

  • It can take several years to pay down your debts.
  • You will have nearly no disposable income until you complete the program.
  • Under chapter 13, you will lose all of your credit cards.
  • Chapter 13 bankruptcy will make it difficult to get a mortgage.
  • Your credit score will take a nosedive and remain on your report for up to 10 years.

In the end, you must carefully weigh the pros and cons of a chapter 13 bankruptcy before you make a commitment. In nearly all cases, it is beneficial to seek advice from a bankruptcy attorney before and during the process.

Source: FindLaw, “Pros and Cons of Declaring Bankruptcy Under Chapter 13,” accessed Oct. 06, 2017