Chapter 13
Chapter 13 Bankruptcy
Chapter 13 bankruptcy provides a structured path for individuals to reorganize their debts and gradually repay them over a period of 3-5 years. This approach offers several key advantages:
- Debt Consolidation: Your debts are combined into a single, manageable monthly payment made to a court-appointed trustee.
- Asset Protection: You can often keep valuable assets like your home and vehicle, which are at risk in Chapter 7 bankruptcy.
- Reduced Debt Burden: We will work with you to develop a repayment plan that minimizes your overall debt burden.
- Fresh Start: Upon successful completion of the repayment plan, you receive a discharge of most of your eligible debts, providing a fresh start for your financial future.
At Mario Gunde Peters & Kelley, we understand the complexities of bankruptcy. Our experienced team will guide you through the entire process, ensuring you make informed decisions and achieve the best possible outcome for your unique financial situation.
Call us to schedule your free initial consultation.
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Call 321-631-0506
Chapter 13 Potential Downsides
There are potential downsides to Chapter 13 bankruptcy:
- Lengthy Repayment Period: The repayment plan typically lasts 3-5 years and requires consistent and disciplined budgeting during this time.
- Credit Score Impact: Bankruptcy negatively impacts credit scores for several years, making it harder to obtain loans, rent apartments, or secure specific jobs.
- Stricter Financial Restrictions: You’ll have limited flexibility in your spending during the repayment period, as most of your disposable income will be used to repay your debt.
- Potential for Dismissal: If you fail to make timely payments or violate the terms of your repayment plan, your case could be dismissed, leaving you with unresolved debts and facing potential consequences.
- Higher Costs: Chapter 13 often involves higher attorney fees and court costs than Chapter 7 bankruptcy.
Disclaimer: This information is for general knowledge and guidance only. It does not constitute legal advice. You should consult a qualified bankruptcy attorney to discuss your situation and understand the potential risks and benefits.
