You may have encountered various misconceptions about bankruptcy. Unfortunately, we’ve found that these false and negative claims have increased stigma around the financial decision. However, the truth is that many people and businesses that are struggling with debt can benefit from filing for bankruptcy. Still, you may be wondering about the potential downsides of filing for Chapter 13 bankruptcy if you’re currently in debt. No need to worry because our knowledgeable law firm has all the answers you’ll need! Continue reading or speak with a Rockland County Chapter 13 Bankruptcy Lawyer for individualized legal counseling.


Unfortunately, there are always cons to many different important financial decisions, and bankruptcy is no exception. The most common downsides to filing for Chapter 13 bankruptcy include:

  • It can take up to five years to repay your debts in Chapter 13’s repayment plan
  • Debts must be paid using your disposable income until the repayment plan is completed
  • You will lose all your credit cards
  • The bankruptcy can remain on your credit for up to 10 years
  • It could become difficult to obtain other loans and credits in the future
  • It doesn’t relieve child support, alimony, or student loan debt
  • You might still need to pay back mortgage liens after bankruptcy proceedings are completed


Yes, many legal professionals agree that filing for bankruptcy is still sometimes the best option for some people in debt, even if there are a few downsides. Our law firm has found that most cases we’ve worked on resulted in debtors being able to completely change their life around for the better. Chapter 13 works best for individuals who are still earning money but have fallen behind on their credit payments. Some of the pros of Chapter 13 bankruptcy include:

  • You should be able to keep your home
  • The courts will reorganize your debts
  • The courts will dismiss your unsecured debts (like credit card debt), meaning you won’t need to worry about paying them back
  • You should be able to catch up on important secured debts, like mortgage payments
  • It buys you time to figure out how to responsibly handle your finances
  • Your loan co-signers will be protected

Are you considering filing for Chapter 13 bankruptcy in New York? You might want to speak with a trusted bankruptcy lawyer who can help you to determine your best options moving forward. Thankfully, the Lauterbach Law Firm is on your side! Contact our highly experienced team today for an initial consultation.