It Is Essential To Know The Positive And Negative Sides Of Filing For Chapter 13 Bankruptcy
Before people make big changes in their life, they sometimes like to create a list of positives and negatives to help themselves make an informed, logical decision. If you are thinking about filing for Chapter 13 bankruptcy in Augusta, this could also be a good idea so that you can feel comfortable in whatever choice you ultimately make regarding your financial future.
Though the term “bankruptcy” has negative connotations for many people, Chapter 13 bankruptcy can be the saving grace for individuals who are overwhelmed by debt. If you think that you may be a good candidate for Chapter 13, here are some things you should consider before making your decision:
The Positive Side of Filing for Chapter 13 Bankruptcy in Georgia
- If creditors have been harassing you or threatening to garnish your wages, Chapter 13 bankruptcy will temporarily give you protection from their collection efforts.
- Worried about foreclosure? Keep making your scheduled payments during the Chapter 13 payment plan and your house will not be foreclosed on.
- You have three to five years to pay back the debt you owe.
- You should be able to keep your personal property.
- If you previously filed for Chapter 7 bankruptcy but not all of the debts were discharged, they could be reduced in a Chapter 13 plan.
The Negative Side of Filing for Chapter 13 Bankruptcy in Georgia
- There’s no immediate gratification, because you could be bound by the payment plan for up to five years.
- Not every kind of debt can be discharged, including taxes, student loans, child support, and alimony.
- The Chapter 13 payment plan will make your monthly payments much more manageable, but that does not mean you will have extra money to use however you like. Once you’ve covered things like food and shelter, any extra money goes toward paying off your debt..
- Your credit report could reflect the Chapter 13 bankruptcy for up to 10 years.
If you are interested in seeing whether you qualify for Chapter 13 bankruptcy, as well as learning about additional pros and cons of bankruptcy, contact Seymour & Associates, P.C., at (706) 872-7117 to schedule a free consultation at our Augusta office.