Chapter 13 Bankruptcy | Pros And Cons Of Chapter 13 Bankruptcy
Chapter 13 Bankruptcy | When people are experiencing financial difficulties, they know that bankruptcy may be an option that can help them out of their current situation. They must also be aware of the ways in which bankruptcy can complicate their lives. If they decide that bankruptcy is the best plan, they need to hire the services of a qualified and experienced bankruptcy attorney. The first thing people must consider is the fact that it may take up to five years to pay under their Chapter 13 Plan.
Any money that they have after they pay for their home, groceries, medical expenses and utilities will be designated toward paying their debts. Therefore, they may not have any disposable income for a period of time. Bankruptcy will also affect their credit rating. The bankruptcy can remain on credit reports for up to 10 years. Also, they will lose access to their credit cards. If they were hoping to purchase a house, the bankruptcy will make it more difficult to qualify for a mortgage. For those who are going through a divorce, their obligations to pay child support or alimony will not be eliminated with bankruptcy. It also cannot relieve them of the need to pay their student loans. However, there are clear advantages that can be obtained in Chapter 13.
Chapter 13 bankruptcy gives people more time to pay their debts. After they have completed their payments according to the plan, their creditors will be unable to collect the balance from them in the future. The fact that they will not be able to use credit cards during bankruptcy can be a good thing. After all, it is possible that they were having financial difficulties because of their misuse of credit cards. Although the bankruptcy will be on their credit reports for a long time, this may be preferable to having several defaults, repossessions and law suits on their reports. In representing thousands of people over the years, I have seen my Chapter 13 clients make many positive changes in all aspects of their lives. I am a certified specialist in Bankruptcy. I am dedicated to assisting you every step of the way. D. Max Gardner, Attorney at law, serving clients in Kern and Inyo Counties.
The Bakersfield division of the Bankruptcy Court covers all of Kern and Inyo Counties. I represent clients residing in Bakersfield, Taft, Maricopa, Buttonwillow, Wasco, McFarland, Shafter, Delano, Frazier Park, Lebec, Tehachapi, Mojave, Ridgecrest, California City, Bishop, Lone Pine and all other parts of Kern and Inyo Counties