Chapter 13 Bankruptcy in West Palm Beach, FL

The Pros and Cons of Filing Chapter 13 Bankruptcy

Bankruptcy may be a dreaded state for many; however, thankfully Chapter 13, under Title 11 of US code, offers debtors a little leeway. But before going into it, it is necessary to find out all of its pros and cons. Knowing your potential gains or losses will enable you to determine whether filing Chapter 13 Bankruptcy will be worth the efforts.


1.    Peace of mind

Chapter 13 allows you a very long time to gradually repay your debts. You can use this time to figure out how to avoid the same mistakes and organize your finances to keep yourself debt free in the future.

2.    Allows you to retain your property

Chapter 13 allows you to retain your current residence and/or any vehicles. Mortgage payments can be made on a monthly basis.

3.    Improvement of Credit Score

After sometime, though it may be long after your case is closed, the chances of improving your credit score get better.

4.    It’s not the end of the world

Believe it or not, there will always be someone whose case is worse than yours. So don’t be afraid of filing for Chapter 13 Bankruptcy as your last resort.

5.    Payment Plans

Because it may take you a long time to pay off your debts, you can make a payment plan that helps you to decide how you will repay your debt without jeopardizing your current income. Chapter 13 allows you to pay off a little bit of your debt every month.

6.    Guarantee to end up debt-free

Because you are repaying your debts instead of evading them, you may potentially be debt free in three to five years, or even sooner, depending on the amount of debt and consistency of repayments.


1.    Long Time Coming

If you think that Chapter 13 is the best plan for you, then it may b e worthwhile to know that it might take up to over five years for the situation to resolve. Seems like a long time!

2.    Chapter 13 May not be for everyone

By opting for Chapter 13, you might be in over your head. The process is long and tedious. In some situations, Chapter 7 may be a more suitable option.

3.    Mortgage

Chances are you already have a mortgage. But if not, then chances of you getting one are close to none after this.

4.    What Credit Cards?

If you didn’t already know that your credit cards were the very reason you had to file for bankruptcy, then you need to reconsider your reasons. Chapter 13 allows you to slowly repay your debts, which means you cannot accumulate any more. Therefore, your credit cards will be a thing of the past.



5.    You will HAVE to pay for some things

Filing for chapter 13 does not mean that you are automatically exempted from paying alimony, or even child support.

6.    Discrimination by employers

Employers might see your filing for bankruptcy as a sign of your ineptitude. Although it is illegal to terminate an employee after they have been declared bankrupt by the court, you may feel discriminated at your workplace.

If you need more information about filing Chapter 13 bankruptcy in West Palm Beach please contact the attorneys at Walker Law by calling (561) 689-1512.

Walker Law Firm – Bankruptcy Attorney
500 South Australian Avenue Suite 600
West Palm Beach, FL 33401
(561) 689-1512