Chapter 13 Disadvantages Bankruptcy Lawyers for Over 40 Years
Why NOT Chapter 13?
Disadvantages of Chapter 13 bankruptcy include:
Chapter 13 takes longer – from three to five years, sometimes less – so your finances remain under the supervision of the Bankruptcy Court longer than Chapter 7, which typically take from three to six months.
Chapter 13 attorney fees and Trustee fees are higher than in Chapter 7 although those fees including attorney fees are paid with money that would go to unsecured creditors like credit card companies.
The amount of debt that you can have must not exceed $1,149,525 in secured debt or $383,175 in unsecured debt if you want to file for Chapter 13; however, these amounts are adjusted periodically to account for inflation.
You may have to pay more money over the three to five years required for Chapter 13 than in a Chapter 7.
This is not intended as legal advice to you because Chapter 13 is complicated and depends on your specific circumstances. If you are considering a Chapter 13, call us toll free at (877) 886-5955 for a free consultation so we can provide legal advice tailored and specific to your unique situation. There is no obligation and the call is confidential.