The Pros and Cons of Filing for Chapter 13 Bankruptcy: Is It Right for You?
The Pros and Cons of Filing for Chapter 13 Bankruptcy: Is It Right for You? As experienced bankruptcy attorneys at Kennedy, Purdy, Hoeffel, & Gernert , we understand that deciding to file for bankruptcy is a daunting task. While Chapter 13 bankruptcy can provide a lifeline for those drowning in debt, it's important to weigh the significant pros and cons of bankruptcy before making any decisions. Here, we explore both sides to help you understand whether it's the right choice for you. The Pros of Filing for Chapter 13 Bankruptcy 1. Debt Reorganization: The primary advantage of Chapter 13 bankruptcy is the reorganization of your debts. Rather than wiping them out, as in Chapter 7, Chapter 13 allows you to establish a manageable, court-approved payment plan based on your income. 2. Home Protection: Under Chapter 13, you can prevent foreclosure and stay in your home. You'll just need to keep up with bankruptcy plan payments and your current mortgage. 3. No Direct Conta