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The Dirty Little Truths About Filing Bankruptcy PART 2 Aka Pros & Cons of a (NY) Ch13

Updated: May 4

angry man clenching fist while facing laptop with eyes closed

Talk of filing bankruptcy still seems to be a guilt-ridden conversation these days, even though educated consumers know that filing Ch13 bankruptcy is one of the most effective ways to reorganize finances and get real debt relief. 

So why the negative backlash from the general public? Well, at Waters Law Group in Brooklyn, NY we decided to share all the dirty little truths about filing Ch13 bankruptcy once and for all to dismiss the myths and help hardworking, honest people feel good about getting a fresh start!

It's really another list of pros and cons (similar to our earlier blog post about Ch7 filings – see PART1), 

 PROS first this time........

  1. Ch13 stops foreclosure already taking place AND can prevent a foreclosure from happening at all.

  2. Ch13 stops foreclosure auctions (home sales) from taking place.

  3. Ch13 stops wage garnishments.

  4. Ch13 unfreezes bank accounts.

  5. Ch13 can wipe out a second mortgage.

  6. Ch 13 allows you 3-5 years to pay off tax debts.

  7. Ch13 prevents car repossessions & extends the auto loan up to an extra 60 months.

  8. Ch13 plans can include monies owed to child support, alimony, jail or other court agencies.

  9. Ch13 eliminates ALL unsecured debts.

Now, the CONS........

  1. There will be a note stating that you filed Ch13 on your credit reports for 7 years.

  2. There is limited payment flexibility – this means excessive obligations will lessen a filer's options.

  3. Ch13 involves a payment plan that lasts anywhere from 36 to 60 months (3-5 years) and you will spend this time “in bankruptcy.”

That's all folks!

For more detailed information about your particular financial situation please feel free to contact Waters Law Group at to schedule a full planning consultation that will determine the best financial options for YOU.

About the Author

Kiva V. Waters, a seasoned consumer protection lawyer specializing in bankruptcy law, has been dedicated to serving human needs since 2010. Founding WATERS LAW GROUP, her firm addresses bankruptcy-related concerns while also catering to elite leaders, thinkers, and creators.

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