Chapter 13 bankruptcy
If you are doing some form of credit cards counseling. Your payments may or may not be affordable they are based on what they think the creditors will agree to accept. Some of the creditors may not accept any thing they offer and you have to pay them separately at the 30 percent interest rate that it is. The other creditors in the plan can be showing on your credit that you are late every month and still adding on late fees.
A chapter 13 bankruptcy is not base on what you owe but what is it that you can afford to pay the creditor. The interest rate is zero.They do not have a choice whether they want to or not accept the plan amount. The plan will run three to five years, at the end of that time the amount they have received is all they will ever receive. The chapter 13 will fall off your credit three years sooner than the chapter 7 which is ten years. If before you file the bankruptcy and you are a couple months behind on your house, you are allowed to put those payments into the plan to be paid back over the next five years. If you owe the IRS money that can be put in the plan and like the other credit cards the interest rate is zero percent.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
