What are some pros/cons about section 13 bankruptcy?

Answer 1

Disadvantages of Chapter 13
The disadvantage of filing for personal bankruptcy is that a record of this stays on the individual's credit report for 10 years. During the pendency of a Chapter 13 case the debtor is not permitted to obtain additional credit without the permission of the bankruptcy court. Moreover, creditors may not be willing to risk lending money to such an individual. However, this disadvantage is not unique to Chapter 13; it may also apply to individuals currently in a Chapter 11 case or those who are in or have recently been in a Chapter 7 case.

Advantages of Chapter 13
The advantages of Chapter 13 over Chapter 7 include: the ability to stop foreclosures and to have a mortgage that has been accelerated declared reinstated upon bankruptcy plan completion; to achieve a super discharge of debts of kinds not dischargeable under Chapter 7; to value collateral; to bifurcate the security interest of creditors in certain property that creditors are either charging too much interest for, or are over-secured, or both, and in some cases; to prevent collection activities against non-filing co-signers (co-debtors) during the life of the case.

Answer 2

The pros are that if you are behind on your house or car you can get caught up. You would have your car paid in full at the end of it, and you would be current on the house. Any other debt that isn't secured would be discharged at the end.

The cons are that it will be a difficult payment to make for 3-5 year as it will be your disposable income that you are paying into it. The success rate for chapter 13s isn't exactly 100%

Answer 3

You get relief from creditors' collection actions including lawsuits, foreclosure, and repossessions. It stops late fees and limits interest charges.

Your debts don't just go away. You have to pay at least part of your debt, depending on your finances.

It stays on your credit report for 10 years.

Answer 4

There really aren't any pros, it ruins your credit.