Chapter 13 bankruptcy is used by individuals for court protection when their debts are excessive and they want to keep some allowed assets.
There are some myths being discussed in circles of conversations that need to be clarified.
Read more to find out what they are.
Bankruptcy is never a pleasant thing one wants to do, but things happen and this becomes an option.
The discussion of chapter 13 bankruptcy has sprouted some mis-information that we will take a look at.

• You will lose everything you have - Not true.
  There are value limits, but your car, furniture, IRA, household goods, insurance value and your house are all covered under chapter 13.
  
• You can never get credit again - False.
  You may pay a higher interest rate while you are rebuilding your credit, but within a few years you should be back to normal if you have kept in good standing during this time.
  
• Filing bankruptcy will hurt your credit as long as it is on your report - Chapter 13 has a 8 year retention period.
  If you have rebuilt your credit you should be able to buy a house after 2 years at a competitive rate and after 4 years be competitive with credit cards.
  Some lenders may try to use the bankruptcy against you for higher rates, just go else where until you get a fair and honest deal.
  
• Your a criminal - False.
  I heard a client called this one time when she was applying for a place to rent and I wanted to smack the manager.
  Not knowing what she had been through made him an ignorant fool.
  Most people have legitimate situations which bankruptcy is available to use.
   

There is life after a chapter 13 bankruptcy, the main reason you will file this chapter compared to chapter 7 is either your income is to high or you have a home and other assets you want to keep.