Deciding to file for bankruptcy can be a very difficult decision to make. Sometimes it may feel as though it would be easier to bury your head in the sand and pretend that your debts do not exist. But the fact of the matter is that in order to free yourself from your increasing debts, action must be taken.
Not all bankruptcy filings are equal. Bankruptcy can depend on the individual’s specific circumstances, but it can also vary according to the type of bankruptcy that a debtor files for. In this blog, we will discuss the pros and cons of filing for bankruptcy under Chapter 13.
What are the benefits of filing for Chapter 13 bankruptcy?
One of the great things about Chapter 13 bankruptcy is that it does not need to alter your quality of life to an extreme degree, because payments are made over three to five years. This means that you will still be able to enjoy life with your family. In addition, you do not need to give up your family home in the process of repaying your debts.
What are the downsides of filing for Chapter 13 bankruptcy?
Any bankruptcy filing is no walk in the park. It means that certain luxuries will need to be sacrificed, and debts will need to be paid over a three- to five-year period. In addition, you will lose access to credit cards and your credit record will be damaged.
Filing for Chapter 13 bankruptcy means making sacrifices; however, many people believe that these sacrifices are worth it in order to be able to live a debt-free life.