Chapter 13 Bankruptcy Horror Stories

You want to understand the Chapter 13 bankruptcy horror stories before filing. Can Chapter 13 ruin your life? Understand certain cases to understand relevancy to your situation.

You are considering a Chapter 13 bankruptcy, and want to understand Chapter 13 bankruptcy horror stories. Can Chapter 13 bankruptcy ruin your life? You are not alone. It's a big step to file Chapter 13 bankruptcy, so it's helpful to understand what may happen.

I speak with many people about Chapter 13 bankruptcy. While many people have success with Chapter 13 bankruptcy, you may also want to consider the pros and cons to avoid Chapter 13 dismissal.

The purpose of this article is to share anonymous Chapter 13 bankruptcy horror stories to help you make the most informed decision.

The Chapter 13 Horror Stories 

Let’s go through a few different stories to give you a sense of what could happen.

Story #1: Increase Income Making Plan Payment Unaffordable.

One of the biggest horror stories I hear the most often here is when the Chapter 13 bankruptcy plan payment goes up due to extra income or another circumstance. In one instance, the individual paid off his vehicle, and he mentioned that his Chapter 13 plan payment increased to a point that was too much for him to handle.

What You Can Do:

  1. Take a free Chapter 13 Calculator that emulates the bankruptcy forms to help you estimate your Chapter 13 plan payment.
  2. Think about What May Happen in the Next 3 or 5 Years That May Result in Increased Income

Story #2: “Chapter 13 Ruined My Life”

I spoke with another individual recently who mentioned that each year her Chapter 13 bankruptcy attorney would modify her plan payment, and charge her an additional ~$1,000 dollars for the plan modification. 

She couldn’t afford the additional plan modification, but she mentioned that she had no choice because she didn’t understand how things worked in the legal system.

One of the challenges is that the attorney may receive their entire Chapter 13 attorney fee before you reach discharge. 

What You Can Do:

  1. Ask your attorney whether there are any additional fees that you would incur if you decided to file Chapter 13 bankruptcy. You can ask for that in writing.
  2. Look up Google Ratings and Reviews to confirm that the individual has strong customer experience, regardless of when the challenges occur in the Chapter 13 plan.

Other Chapter 13 Bankruptcy Stories:

Let’s cover a few more Chapter 13 bankruptcy stories that I found on the web that you may consider before filing Chapter 13 bankruptcy.

1. Chapter 13 Pre-Filing Homestead Exemption

2. Two Jobs, Single Mother, Pretty High Payment

3. Notice of Dismissal for Feasibility Less Than 30 Days From BK Being Over

4. Chapter 13 Bankruptcy Trustee Motion to Raise Payment 50%

5. Chapter 13 Payment 60% of Take Home Pay, Resulting in Individual Taking Out High Interest Loans

6 Chapter 13 Bankruptcy Nightmare (House Equity and Inherited Property)

Is Chapter 13 Bankruptcy All Bad?

Absolutely Not. Chapter 13 bankruptcy does not ruin many people’s lives, and many individual have received relief from their debt in the form of a Chapter 13 bankruptcy. In fact, 38.8% of individuals have received Chapter 13 bankruptcy discharge from a recent study. Using these tips and tricks may help on your Chapter 13 bankruptcy journey.

That said, many individuals decide to go with a Chapter 13 bankruptcy attorney. In fact, the discharge rate for those who filed pro se was only 2.3% of Chapter 13 bankruptcies filed without an attorney.

Hopefully, these Chapter 13 bankruptcy horror stories provide some helpful information to understand whether Chapter 13 bankruptcy is right for you. If you decide Chapter 13 bankruptcy is not right for you, you can research debt settlement and Chapter 7 bankruptcy, which are common alternatives. 

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