By: Darrell Castle

Chapter 13 bankruptcy is designed to help people who are struggling financially get out of debt.

So, everyone knows the ability to get out of debt is a pro. And many people know you can stop a foreclosure, car repossession or wage garnishment by filing for Chapter 13 as well.


But here are some pros you may not know about.

1. You can increase your cash flow.
When you’re behind on your big bills – like your mortgage or car payment – you probably struggle to pay other smaller bills while trying to play catch up. And then the worry about how you’ll afford groceries and gas to get to and from work begin to be a reality.

However with Chapter 13, you’re lumping your debt into an affordable repayment plan over the span of 3-5 years. And often, you’re only paying back a fraction of the debt you actually owe.

This frees up cash flow so that you and your family can meet your monthly needs. That’s pretty beneficial, isn’t it?

2. You can stop creditor harassment.
When you miss payments and fall behind on your bills, the creditors let you know about it.

They’ll call you when you wake up in the morning. They’ll call you at work. They’ll call you at dinner time. They’ll call you when you’re asleep! They’re going to call you and they’re going to harass you into paying them whether you can afford to or not.

However when you file bankruptcy, all creditor harassment must CEASE. No more annoying phone calls when you’re spending valuable time with your family. No more phone calls when you’re at work trying to make a living. No more!

Doesn’t that make you feel at peace?


3. You can rebuild your credit.

A common misunderstanding people have about bankruptcy is what it’ll do to their credit. While bankruptcy doesn’t directly help your credit, it doesn’t hurt it either.

You’re in debt because you’ve missed payments. Missed payments negatively impact your credit score. So therefore, if you’re in debt, you most likely don’t have a good credit score.

What bankruptcy does is get rid of that debt dragging you down, creating a clean slate and fresh start to begin rebuilding your credit the right way!

At Darrell Castle & Associates, our clients gain free access to 7 Steps to a 720, a wonderful online credit restoration program helping users rebuild their credit score to an A+ rating relatively quickly after a bankruptcy.


4. Your creditors get paid.

Bankruptcy isn’t designed so you can stiff your creditor. In fact, when you file Chapter 13 bankruptcy, you’re lumping your debt into a REPAYMENT plan. You’re actually paying money towards your debt in payments you can afford.

Will your creditors get ALL of the money you owe them? Usually not. However, they’ll get something, and that something is better than the nothing they were getting before you filed for bankruptcy.


5. Society is benefited.

When you’re in debt, you’re not going out and spending money. You’re not paying sales tax to help boost the economy. You’re not helping society flourish.

Bankruptcy allows you to get rid of that debt that’s locked your wallet up. Once that debt is discharged, you have the ability to go out and buy things – wisely so you don’t end up back in debt – and become a contributing member to society again.

Doesn’t all of this make Chapter 13 bankruptcy sound like a good thing if you’re struggling with debt? Yes it does, and that’s because it is!


If you’re struggling financially and want to talk to someone experienced about your options, then our FREE financial consultation is perfect for you.

Call (901) 327-2100 today to schedule your appointment, or fill out one of the contact forms on this page to have someone from our office contact YOU!

Darrell Castle & Associates has received multiple Client Distinction Awards from Martindale-Hubbel for client satisfaction, so I promise you’re in good hands here.