Reorganize & Repay Your Debt With Chapter 13 Bankruptcy

When people think of bankruptcy, they tend to think of the Chapter 7 model, which discharges most debts in exchange for forfeiting certain assets. But there is another model for personal bankruptcy — one that relies on manageable repayment of debt rather than debt forgiveness.

If you are wondering how to get out of debt, but don't believe that Chapter 7 is your best option, you may want to consider filing Chapter 13 bankruptcy. Often referred to as reorganization bankruptcy, this option allows you to restructure debt and repay it, with favorable terms, over a period of three to five years.

The Pros And Cons Of Chapter 13

There are many advantages to filing Chapter 13 (as compared to Chapter 7), including:

  • Being allowed to keep all of your assets (if you are faithfully making payments)
  • Being allowed to stop foreclosure and keep your home
  • Repaying your debts manageably and sustainably over a period of years
  • Chapter 13 stays on your credit report for less time than a Chapter 7
  • It is easier to qualify for Chapter 13 than Chapter 7
  • Having time to repay debts that cannot be discharged in bankruptcy (such as student loans and tax debts)

Before you file, you should also know about the disadvantages/challenges of Chapter 13, including:

  • The need to have your repayment plan approved by a court
  • The length of time that a Chapter 13 lasts (three to five years, compared with about six months for Chapter 7)
  • Being required to repay some of your debt rather than having it discharged
  • Losing your disposable income during the repayment period (because debts are repaid from any income left over after paying monthly necessities such as housing, food, etc.)

Working With The Right Attorney Can Make A Huge Difference

There is no need to feel shame or judgment when seeking bankruptcy protection. You deserve kudos for addressing your debt issues rather than avoiding them. At Brow and Associates, we help you determine which kind of debt relief is right for you and help you understand all your legal options.

Get A Free Case Evaluation By Phone — Contact Us Today

Brow and Associates, LLC, is based in east-central Georgia, with offices in Augusta and Greensboro. To schedule your free case evaluation with an experienced Chapter 13 bankruptcy lawyer, call us at 706-688-9007 or send us an email.

We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code.