The Advantages and Disadvantages of Filing Chapter 13 Bankruptcy in Chicago

When filing bankruptcy in Chicago it is important to do your research on which form of bankruptcy will best suit you. Different chapters of bankruptcy offer different features that the person filing may be intested in. Chapter 13 is very unique in it's structure and it's benefits. Those filing for chapter 13 bankruptcy have to maintain a consistent income making it available to only a select few bankruptcy candidates. Depsite the initial appeal of chapter 13 bankruptcy it does have it's disadvantages as well.

The advantages of chapter 13 bankruptcy are clear. Most obvious is that you can typically keep all of your assets and avoid foreclosure. Additionally, chapter 13 is structured so that once you file you can no longer be harrassed by debt collectors. You will have a payment plan outlined and as long as you keep up with your payments as planned none of your creditors can initiate or proceed with any legal action against you. Chapter 13 is ideal for someone who has intentions of paying off their existing debt however their means are such that they need a little extra time and flexibility in order to do so. Once you have fulfilled your payment plan you will be discharged of your debts.

Many Chicago residents are so thrilled to see that they can file chapter 13 and still keep their assets that they fail to see the downside of chapter of banktupcy. Despite the benefits chapter 13 is still a very serious form of bankruptcy and like any other form it will stay on your credit report for 10 years and have a dramatic effect on your credit score. This will make borrowing money very challenging while you build your credit score back up. There are few specific types of debt that cannot be discharged through chapter 13 bankruptcy. Those include child and spousal support, some student loans and tax debts. Chapter 13 is also not a guarantee. Once your payment plan is set up you are required to maintain the payments as agreed upon. Should you begin missing payment you would no longer be protected from creditors and they could proceed with any pending reposessions or foreclosure. In Chicago bankruptcy filings are public record which some people find to be very embarrassing.

If you live in the Chicago area and are considering filing for chapter 13 bankruptcy you will want to reach out to an experienced bankruptcy firm such as Chang & Carlin as soon as possible. They can assist you in navigating these pros and cons to find the solution

Chang and Carlin Disclaimer
The content found on the Chang & Carlin site is not legal advice and is purely for informational purposes. The information contained herein is not a substitute for the advice of an attorney and does not create an attorney-client relationship. If you are interested in obtaining information about chapter 7 bankruptcy, chapter 13 bankruptcy, foreclosure services, real estate legal services, you are encouraged to call our law firm at 866-790-8601 or Request a Free Legal Evaluation. Chang and Carlin serves clients in Chicago, Schaumburg, Joliet, Warrenville, Waukegan, Illinois.