A Chapter 13 bankruptcy is designed for people who have a home, a car, or other property they want to protect and who have a source of income. Many people find it easier and faster to file than a Chapter 7, because only the filing fees and costs have to be paid up front.
Once your petition has been filed, there will be a payment that is usually payroll deducted that will go to the Trustee. This payment will pay for your car payment and any other secured debt, your attorney fee and your Trustee fee. It will last for 3-5 years and, when your bankruptcy is finished, you will have the title to your car, but your unsecured debt, like your credit cards and your medical bills, will be discharged, or erased.
If you are behind on any payments on your home or on your car, your attorney will use a Chapter 13 bankruptcy to give you time over the term of the bankruptcy to catch up on those payments. You can also pay your back taxes and back child support through your bankruptcy. Many people find that a chapter 13 bankruptcy is a good way to consolidate debt, and after filing they are paying out less monthly through their bankruptcy than they were for their car payment and other secured debts. Call us today for a free first visit to find out how bankruptcy can help you.