Contact
Contact

Contact Us

Bold labels are required.

NameThis field is required.

disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Simon, Fitzgerald, Cooke, Reed and Welch
Simon Fitzgerald, LLC
Louisiana’s Oldest Bankruptcy Law Firm
888-341-8091
Free Case Evaluation
View Our Practice Areas

Chapter 13: Weighing the pros and cons

Encountering serious financial challenges in life is not uncommon. In fact, some Louisiana residents are currently facing foreclosures on their homes or businesses. Chapter 13 bankruptcy is often a means for improving one's financial circumstances in the short term and also for laying the groundwork for a stronger financial future.

One of the benefits of this debt relief option is that it essentially buys time, meaning the petitioner is allowed to extend the time that he or she has to pay off a debt. The petitioner proposes a repayment plan over a three to five-year period, which must be approved by the court before it becomes effective. Perhaps one of the greatest advantages of Chapter 13 as opposed to other types of bankruptcy is that the person making payments may retain ownership of his or her assets while doing so.

To quality, one must have reliable, disposable income for it to work. If unemployment is an issue, this is definitely not a viable option. However, a Chapter 7 liquidation proceeding might fit those circumstances. 

When considering the pros and cons of a Chapter 13 bankruptcy, some Louisiana readers might worry that filing for bankruptcy will destroy their credit ratings. While it is true that bankruptcy will show on a credit report for some time, it is not permanent and a positive credit rating can be restored in time. An experienced debt relief attorney can explain eligibility requirements and help determine whether a court-approved payment plan may be the best course of action to overcome a current financial crisis.

 

 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Office Locations

Shreveport Office
4700 Line Avenue, Suite 200
Shreveport, LA 71106
Phone:318-550-4873
Fax: 318-868-8966

Map & Directions

Shreveport Office

Alexandria Office
1118 3rd Street
Alexandria, LA 71301
Phone: 318-224-0340
Fax: 318-868-8966

Map & Directions

Alexandria Office

Lafayette Office
2901 Johnston Street, Suite 202
Lafayette, LA 70503
Phone: 337-205-0492
Fax: 337-456-5465

Map & Directions

Lafayette Office