• Our Guarantee to Our Clients

    We promise to represent your best interests and keep you fully informed.

    Read Our Guarantee
  • Bankruptcy eBook

    Get a FREE eBook to become more familiar with the bankruptcy process.

    Download It Here
  • Our Video Center

    Click here to access a list of our firm's videos.

    Get More Information
  • When You're Ready To Talk

    We're ready to listen. Contact us to receive a free initial consultation.

    Request a Consultation

The Pros and Cons of Filing Chapter 13 Bankruptcy

Filing bankruptcy isn't something anyone wants to do, but if you find yourself needing to, it is best if you know what different types there are and the pros and cons to them. What is chapter 13 bankruptcy? Also known as a wage earners plan, this type makes it possible for those with sustainable income to repay their debt. It is up to their creditors what the repayment is set at, according to uscourts.gov.

As an article on findlaw.com states,

pros of filing chapter 13

  • You have more times to pay off your debts
  • You may be able to pay your debt over a longer period of time
  • Creditors cannot demand payment in full once you enter into an agreement under chapter 13
  • You get to keep your property while paying back the debt
  • You may be able to get a line of credit from a credit card company after paying your bill from one to three years
  • Bankruptcy prevents lenders from calling you continuously

Cons of filing chapter 13:

  • It can take as long as five years to pay off your debt
  • Chapter 13 must be paid out of the money you have left after paying bills , such as mortgage, rent or car payment
  • Chapter 13 can stay on your credit report for 10 years
  • You lose all credit cards and cannot get a new one
  • You may not be able to obtain a mortgage
  • Filing under chapter 13 will make it harder to file a chapter 7
  • Bankruptcy doesn't take away alimony or child support payments
  • You're still responsible for student loans

We, at the Law Offices of James C. Shields would be happy to answer any questions you might have regarding bankruptcy. Please contact us for assistance.

Categories: Chapter 13
  • Our Guarantee to Our Clients

    We promise to represent your best interests and keep you fully informed.

    Read Our Guarantee
  • Bankruptcy eBook

    Get a FREE eBook to become more familiar with the bankruptcy process.

    Download It Here
  • Our Video Center

    Click here to access a list of our firm's videos.

    Get More Information
  • When You're Ready To Talk

    We're ready to listen. Contact us to receive a free initial consultation.

    Request a Consultation

When You're

Ready to talk

Our firm is ready to listen. Call for a FREE case consultation.

Call Toll-Free 888.910.6652

"The Law Offices of James C. Shields is located in Torrance and proudly serves clients all throughout the South Bay including:

  • Long Beach
  • Irvine
  • Los Angeles
  • Palos Verdes Estates
  • Huntington Beach
  • Hermosa Beach
  • Redondo Beach
  • Manhattan Beach
  • Newport Beach
  • Costa Mesa
  • El Segundo
  • Rolling Hills
  • Hawthorne
  • Playa Del Rey and Culver City
Law Offices of James C. Shields - Torrance Bankruptcy & Estate Planning Attorney
Located at 21707 Hawthorne Blvd, Suite 204
Torrance, CA 90503.
View Map
Phone: (888) 910-6652
Local Phone: (310) 626-4404

Website:
© 2017 All Rights Reserved.