How Does Filing Chapter 13 Change My Future?


Believe it or not, there is life after bankruptcy. For many people struggling with debt, the future does not seem too bright. It is very difficult to see past the enormous debt that has darkened every aspect of life. However, the thought of filing a bankruptcy seems overwhelming, especially a Chapter 13 because it can last up to five years. The thought of being in bankruptcy five years is almost as bad as the thought of never getting out of debt.


I am here to tell you that you can do it! You can file a Chapter 13 bankruptcy case, get out of debt, and have a great future. However, the first step in taking control of your debt and setting a path to a brighter financial future is contacting my office to request a free consultation. Call (212) 244-2882 to schedule your free appointment. Each case is unique; I want to learn about your situation so I can give you the best legal advice to help you get out of debt now.


How Can a Chapter 13 Change My Future?


There are several ways filing a Chapter 13 case can have a huge impact on your future.


  • Preserving the Equity in Your Home or deal with car and rent arrears


Losing your job, being injured in an accident, getting divorced, or becoming ill are just a few of the life events that can cause you to get behind with your mortgage, car or rent payments. If you have owned your home for many years, you probably have a substantial amount of equity in your home. You do not want to lose that equity by losing your home in foreclosure. You also do not want to withdraw that equity to pay other debts.


Filing a Chapter 13 case can preserve your home equity for your future. Through your bankruptcy plan, you repay your past due mortgage, rent and car payments over several years. At the end of your plan, your payments are current, and your equity is safe.


  • Protect Your Retirement Accounts


Most retirement accounts are protected in a Chapter 13 bankruptcy case. You do not have to worry about the court taking your retirement account to pay your creditors. Too many people use their retirement savings to pay debts. By dipping into retirement savings, you not only jeopardize your future, but you also lose money by paying large penalties and taxes for early withdrawal. Instead of jeopardizing your ability to pay for your future expenses, ask how filing a Chapter 13 case can get rid of your debt and protect your retirement savings.


  • Improve Your Credit Rating


Yes, it is true — filing a bankruptcy case will hurt your credit score but only for a short time. Your credit score will improve as you continue to make your mortgage and other payments on time. In fact, filing the bankruptcy case can help improve your credit score by discharging your debts. Once you file your case, creditors cannot continue to report late payments on your credit report. In the long run, this helps to clean up your credit report so you can begin rebuilding your credit score after bankruptcy.


Having a good credit score is extremely important for your future. Credit scores are used for much more than issuing credit. Some employers check credit histories as do insurance companies, utility companies, and rental agencies. Improving your credit score after bankruptcy can help reduce the deposits and premiums you pay for some services.


Do You Want to Improve Your Financial Future?


Are you ready to take the first step to improving your financial future? If so, I encourage you to call our office to schedule a free consultation to discuss filing bankruptcy. Many people focus on the negative aspects of filing bankruptcy. Yes, there can be some negative consequences depending on your circumstances. However, in most cases, the benefits of filing bankruptcy far outweigh the short-term cons of filing bankruptcy.


Call The Law Office of William W. Waldner at (212) 244-2882 or use the contact form on our website. When you need a New York bankruptcy attorney, we hope you will let us provide the services you need to help you resolve your financial problems.