In addition, if you do not qualify for a Chapter 7 Bankruptcy but you are crippled by credit cards, unsecured loans, and medical bills, Chapter 13 Bankruptcy can reduce your payments based on your disposable income. You would make one payment to the court per month for 3 to 5 years. At the end of the 3rd or 5th year, whatever portion of the credit cards, unsecured loans, and medical bills that is unpaid in the plan (even if it is 99%!) will be discharged or ELIMINATED. Once you successfully complete the Chapter 13 Bankruptcy Plan payments and the court granted you a discharge, your creditors for credit cards/unsecured loans/medical bills CANNOT harass or attempt to collect from you. That is the whole point of a Chapter 13 Bankruptcy discharge.

At least with a Chapter 13 Bankruptcy, your payment is limited to 3 to 5 years and the payment is based on what you can reasonably afford. In contrast, if you were to pay off your credit cards with onerous interest rates and penalties on your own, it could take you decades to pay them off. Because every case is unique, there are a lot more issues (not discussed here) to consider to determine whether Chapter 13 Bankruptcy is the right choice for you. Call to schedule a FREE consultation with an experienced Bankruptcy Attorney for more information on how a Chapter 13 Bankruptcy can resolve your financial problems.