Filing bankruptcy and still paying debt back
I owe all of my creditors and I want to pay them back. What can I do?
Many people struggle with the idea of incurring debt and not paying their creditors back. Sometimes you cannot afford to do so and the Chapter is a good option. However, sometimes a client comes in who can afford to pay the creditors back just not all at the same time with garnishments, etc. This client is not out of options.
A Chapter 13 can be used as a full repayment plan over 36-60 months where all creditors are being paid in full over the span of the Chapter 13 plan. This would include all unsecured debt, priority debt such as taxes, and secured loans such as car loans as well as any late payments that may be owed on your mortgage.
Even though your income makes you eligible for a Ch 7 does not necessarily mean you can file one. If your income and expenses show that you can afford to pay back your creditors over a period of time then the trustee will want you to do so.
The decision to file bankruptcy is an important one and should not be made without first consulting with a bankruptcy attorney to determine which option is best for you. We offer a free consultation where you can come in and meet with one of our attorneys to go over what options you have.