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The truth about Chapter 13 Bankruptcy

My clients think these are the worst words they’ll ever hear:  “you’ll have to do a Chapter 13 Bankruptcy.”  The reasons are many, but the reaction is almost always the same.

Let’s clear up some myths first:  you do NOT always (or even typically) have to repay all of your debt in a Chapter 13 Bankruptcy.  The amount you will have to repay is largely based on your income (and other factors), but only a very small percentage of my clients actually end up repaying all of their debt in their Chapter 13 Bankruptcy case.  And even those that do, NEVER have to repay that debt with even more interest.

So why do people dread the very thought of a Chapter 13 Bankruptcy so much?  Well, admittedly, a Chapter 13 Bankruptcy is slightly adverse to the idea of a “fresh start.”  I mean – what kind of fresh start is it if you have to make payments for three or five years?  Couldn’t you just do that on your own?

No – you probably couldn’t, and that’s the plain and simple truth.  Yes – you could make payments for three or five years without a Chapter 13 bankruptcy, but will you really be able to pay your debt off that quickly?  I doubt it.  You’ll probably be paying for 20 or more years.

The simple fact is that, even if your Chapter 13 Bankruptcy attorney determines you can’t qualify for Chapter 7 bankruptcy relief, a Chapter 13 Bankruptcy is still MUCH better than trying to manage your 25% APR credit cards on your own.  The Chapter 13 Bankruptcy will allow you to get your debts into a payment you can afford.  No longer will you be forced to rob Peter to pay Paul.  For once, you will be able to take control of your finances and make one monthly payment that pays ALL of your debt.

Additionally, you can do things under Chapter 13 Bankruptcy that you cannot do under Chapter 7 bankruptcy.  With a Chapter 13 Bankruptcy, you can actually repay tax debt and stop the penalties, make up missed house payments, or get a car back after a repossession!

Is a Chapter 13 Bankruptcy better than a Chapter 7?  Not always.  Is it better than doing it on your own?  Absolutely!

Contact us today to find out what you need to know to make an informed decision.  You can also visit our Facebook page. 314-827-4027.

Sean C. Paul, Chapter 13 Bankruptcy Attorney Sean C. Paul will give you the individual attention you deserve. He understands the importance of your financial decisions, and wants to help you make the best one, whether it’s a Chapter 7 Bankruptcy, a Chapter 13 Bankruptcy, or something else entirely.

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