Chapter 13
Advantages
- You keep all properties.
- Debts that can’t be discharged under Chapter 7 can be reduced under Chapter 13.
- Co-signers are protected.
- Foreclosure proceedings are delayed.
- You can file 13 immediately after 7 to discharge any remaining debts.
- Interest rates on debts can be greatly reduced.
- Payment terms are extended.
- You are protected against further action, such as collection efforts and wage garnishment.
- No limit to how many time you may file.
- Debts that are not discharged in Chapter 7 can be included in Chapter 13.
Disadvantages
- Will affect your credit history poorly and is a public record. Chapter 13 will be on your credit report for 7 years.
- Not all debts are discharged.
- Legal fees are steep.
- The amount of debt you can discharge is limited.
- Stock brokers and commodity brokers are not allowed to file Chapter 13.
- Filers are unable to obtain any new credit during the process of paying back creditors.
Debts that are NOT discharged:
- Home mortgage
- Government student loans
- Debts due to fraudulent activity
- Alimony
- Child support
- Debts obtained due to death or injury caused by driving intoxicated or under the influence of drugs.
