The difficulty with a 3-5 year plan is that a number of unforeseen events can arise during that time period, which can make the repayment difficult, or even impossible. To make matters more complicated, Chapter 13 plans must be approved by the Bankruptcy court, and the success rate of doing it without an attorney is only about 2%.
If filing a Chapter 13 Bankruptcy is right for you, you should definitely use an attorney. Having an attorney does not guarantee a successful outcome, but it greatly improves your odds.
To be sure, there are downsides for filing a Chapter 13, including longer proceeding times, and higher fees. Also, when you file for bankruptcy, your credit score will be effected because the Bankruptcy filing will remain on your credit history for 7 years (less than a Chapter 7 which lasts for 10).
You may experience difficulty obtaining newly issued credit during this time. Also, if your Chapter 13 is not approved by the Court, the interest during that time will accrue, and your bankruptcy protection will be lifted. Lastly, you cannot file for a Chapter 7 if you have gone through a Chapter 13 in the last 6 years.
Therefore, it is very important that you consult us about whether Chapter 13 Bankruptcy is the right step for you.