Advantages and Disadvantages of Chapter 13 Bankruptcy
By any stretch of the imagination, it is difficult to apply the word advantage to the scenario of bankruptcy. Once this word begins to enter your vocabulary frequently, and you are not actively working in this area, something has gone wrong. Whether an unexpected illness drained your family’s accounts or you took on an insurmountable amount of debt, bankruptcy acts as a clean slate for many individuals. While different forms of bankruptcy occur around the country, chapter 13 occurs quite often in Orlando, Florida. If you find yourself in this predicament, a chapter 13 lawyer Orlando fl will assist with determining if this is the right process for you.
Assessing the Advantages of Chapter 13 Bankruptcy
One of the most significant advantages of chapter 13 bankruptcy involves remaining in possession of the property that you would typically lose in the event of bankruptcy. Since this is most likely to be your place of residence, being allowed to keep your home is undoubtedly a big win in this situation. Along with keeping your house, you will be making payments over a three to five year period of time. While this is a long time to have this situation dangling over your head, it will surely lessen the immediate financial strain of this payment plan. You are also able to forfeit property that you are paying down if you feel this is necessary.
Assessing the Disadvantages of Chapter 13 Bankruptcy
One of the most significant disadvantages of chapter 13 bankruptcy involves losing all of your existing credit cards. Many people that claim any form of bankruptcy were possibly abusing lines of credit, and the bankruptcy court will see that this behavior ends. Another disadvantage of taking this route involves ruining your credit for an extended period. If you have any detailed questions relating to chapter 13 bankruptcy, it would be wise to consult with an attorney.