You CAN get completely out of debt through a Chapter 13 bankruptcy
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Can you get completely out of debt through Chapter 13?
Hi, I’m Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and the answer is YES, you can get completely out of debt through Chapter 13 and you SHOULD do that in your Chapter 13 case. That is debt except for your house note – your mortgage.
At the end of your Chapter 13 plan, if it’s paid to completion, your mortgage should still exist. But it should be current – not high as it perhaps was when you started the plan. Everything else should be paid off so let’s talk about that for a couple of minutes.
Your car should be completely free of debt at the end of your Chapter 13 plan. Perhaps you’ve paid your car back at a lower payment with lower interest.
Another advantage – all of your unsecured debt like credit cards and medical bills will be completely gone in Chapter 13.
It is a plan – a reorganization plan. It is a good plan that will allow you to become completely debt free, except for your home, in a short period of time. That could be in a few years – whatever the length of your plan is. It usually takes 3-5 years to complete it, but if you make all of those payments and pay it all the way out to conclusion, then you have a debt free life if that’s what you want.
You go from where you are now to where you could just imagine – free of debt and able to keep all of your money, provide for your family, save money, or whatever it is that you want to do.
That plan is completed and all you really have to do is devote your best efforts to making that small payment – a very small payment and small percentage of what you actually owe in most cases. That is something for you and your attorney to decide – how much you can really afford to pay. That is the question and you have to use your best efforts at repayment.