A chapter 13 bankruptcy is a repayment plan where you typically repay only a portion of your debts. Filing Chapter 13 bankruptcy is kind of like calling a “time out” for your finances. We can stop all debt collection, lower car interest rates and payments, allow time to catch up on your mortgage, and create a budget that only requires you to repay the amount of debt that you can afford to repay. At the end of the 3 to 5 year period you will typically have your cars paid off, mortgage current, tax debts resolved, and other dischargeable debts forgiven. This is usually much cheaper than informal debt consolidation plans and is also guaranteed to succeed as long as you follow the terms of the repayment plan.

Posted in: Chapter 13 Frequently Asked Questions, Frequently Asked Bankruptcy Questions