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5 Dirty Secrets of Chapter 13 Bankruptcy to Know Before Filing

Written by: Matthew Edward Williamson

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Bankruptcy Chapter 13 Bankruptcy Filing for Bankruptcy

Posted over 2 years ago. 5 helpful votes, 1 comment

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Most Chapter 13 End Up Failing!

Why? The plan is too much for the people. The secret is to bluntly ask your attorney how many of their Chapter 13's end up failing or converting to a Chapter 7.

Many People Might Want to Consider Chapter 7 First

The Dirty Secret is that many times someone comes into an attorneys office thinking they have to file a Chapter 13 - the attorney doesn't determine if this is really true (because it usually pays more money!) when in reality they could be better served by a Chapter 7 (which is usually cheaper overall).

A Chapter 13 May Cost More Than You Realize

Make sure to ask the attorney the bottom line! They may say, don't worry about it, it's taken care of in the bankruptcy - you're still going to pay it! So there is a big difference to "your" bottom line is its 2500 vs 4500. Find out in advance if you are going to have to pay additional fees to the attorney after filing.

The Attorney You Hire May Not Actually Represent You

If you're paying for the head attorney, make sure he/she is going to be there with you when you have to go to court and not someone that you haven't met and is unfamiliar with the case.

There May Be Other Options

Sometimes it might be as simple as downsizing. For some it may just mean giving up the 4,000/month mortgage payment and renting at 1,000 the same type of house in the same neighborhood.