What are the disadvantages of filing Chapter 13 Bankruptcy?

Filing Chapter 13 Bankruptcy in Virginia can come with several potential disadvantages. Generally, individuals filing Chapter 13 Bankruptcy must enter into a repayment plan with creditors which can be a long and arduous process. The repayment plan must be approved by the court, outlining how much and for how long the filer will make payments towards their debt. This plan can be difficult to complete as it requires making monthly payments for three to five years. Individuals may not be able to complete the plan and may have their bankruptcy case dismissed or their debt restructured. In addition, filing Chapter 13 Bankruptcy requires the filer to have a steady source of income which can be difficult if they are unemployed. It also requires them to pay additional court fees up front. These fees are usually between $310 and $335, and can add up to several thousand dollars. Furthermore, filing Chapter 13 Bankruptcy often means that not all of the filer’s debt can be discharged, so some debt may need to be repaid in full. Lastly, filing for Chapter 13 Bankruptcy will remain on the filer’s credit report for up to 10 years, which can make it difficult for them to get approved for loans or credit cards in the future. This can have long-term consequences for the filer’s financial life. Overall, filing for Chapter 13 Bankruptcy has the potential for many disadvantages. It’s important for potential filers to consider their options and discuss with a lawyer before taking this step.

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What are the disadvantages of filing Chapter 13 Bankruptcy?

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