Illinois residents please call 708-349-9333

Know the potential drawbacks of Chapter 13 bankruptcy

| Jun 28, 2017 | blog |

There are many people who believe they don’t qualify for bankruptcy because of their income or assets. However, as you learn more, you may soon come to find that you qualify to move forward.

Chapter 13 bankruptcy is meant for people who are willing to repay some or all of their debt through a repayment plan. With a zero percent plan that stretches over the course of three to five years, you are given the opportunity to pay down your debt to start fresh in the future.

Despite the many benefits of Chapter 13 bankruptcy, there are some potential drawbacks you should also think about before taking this step:

— It can take as long as five years to repay your debt

— You have to pay your debts from your disposable income, which can make it difficult to have extra cash during the repayment period

— You cannot use Chapter 13 bankruptcy to rid yourself of student loan debt, child support or alimony

To learn the best solution to your debt problems, discuss all of your bankrupcy options, including Chapter 7 bankrupcy, with an experienced attorney .