Why file bankruptcy?
As I understand it when you file Ch 13 you have to pay back all of your debt… that being the case why file at all if you have to come up with the money to pay it all anyway? Does the debt get lowered at all? Late fees or interest taken off?
In chapter 13 you still may not pay ALL that is owed. It will eliminate interests and penalties. Yes, your debt may be lowered. I have read "unofficially" bankruptcy is usually most beneficial to those with debts over 65,000 dollars although that figure is adjusted upward for high wage earners. Also, if your debts exceed two years of your annual income it may be a more viable option.
July 29th, 2010 at 8:16 amChapter 13…you will pay no interest..just the monies due…
July 29th, 2010 at 8:16 amChapter 11..pay NO bills back and get to keep your home and car and any credit cards you want to pay off.