A Chapter 13 BANKRUPTCY

    Will allow you to pay back your debts over a period of time up to 60 months. The total amount and monthly payment is based on your income and assets. 

    Lets say you have $60,000 in charge card debt and medical bills and you are eligible to pay back 10%.  Your payment will be $100 per month for 60 months.  At the end of the 60 months you would have paid a total of $6000 and the $54,000 remainder of your debt would be eliminated or discharged and you would not have to pay it.

WHAT IF I AM BEHIND ON MY HOUSE OR CAR PAYMENTS?

The Chapter 13 bankruptcy will allow you to take the back payments and pay those out over a period of time up to 60 months.  An example would be if you are $6000 behind on your house payments the Bankruptcy Court would allow us to file a plan in which we could pay $100 per month for the 60 months.  As long as you were able to make your regular house payments and pay the $100 each month the court would not allow the mortgage company to foreclose on your home.  

I OWE MORE ON MY CAR THAN IT IS WORTH. 

    If you have owned the car for more than 2 1/2 years we may be able to pay back the actual market value of the car and reduce your monthly payments.

    If you owe $25,000 and your payments are $600 per month but the car is only worth $18,000 we can file a plan with the court in which you keep your car and pay $300 per month for 60 months.  The remaining $7000 is treated as unsecured debt and may be paid back at pennies on the dollar.