While Chapter 13 can offer some real advantages to a debtor,
there are significant disadvantages as well:
Chapter 13 cases are
now coming under greater scrutiny from the court and
from the trustee;
If a debtor has a significant
increase in income midway through the case, monthly
payments to the trustee may be increased as well;
A Chapter 13 case requires
a debtor to be "in bankruptcy" for at least
three years, whereas a Chapter 7 case is normally concluded
within four months;
Lump-sum distributions,
i.e., personal injury settlements, inheritances, etc.)
received during the case normally have to be turned
over to the trustee.
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