Your payment goes to someone called a trustee who then pays all your creditors.
Typically, you use Chapter 13 because you're willing and able to pay your debts, but just need a break.
After you file, it will immediately eliminate all the pesky creditors who call you every day trying to collect money.
The same goes if you're afraid of losing your home.
To elaborate, that means if you call me by noon, most of the time I can stop the foreclosure on your home or the repossession of your car by 5pm.
By the way, if you have unsecured debt, meaning you didnít agree to back the debt with collateral such as credit cards, medical bills, payday loans, lawsuits, or judgments these are often wiped-out completely.
With that said, there are some debts which cannot be forgiven such as student loans, recent tax debt, alimony, and child support.
The court will decide what you can afford and typically gives you between 3 and 5 years to repay it.
Another benefit of filing Chapter 13 is the fact you wonít need a truck-load of money to pay your attorney up-front because most of the time, the attorney fees are built into the repayment plan.
Now, I can't say how other attorneys run their practices, but typically, our firm only charges $400 to get started which includes your $310 filing fee and credit check.
The remainder is paid over the term of your repayment plan.
I invite you to call me at 402.659.4254 anytime day or night 7 days a week, so we can talk about your circumstances and make sure you get the immediate relief you're looking for.
For more information on bankruptcy, please watch other videos on my website.