Legal Question in Bankruptcy in Illinois

Hello,

I am planning to declare Chapter 13 - bankruptcy. I want to keep my car loan and federal loans out of it. I want to include all my credit cards and private loans. After declaring Chapter 13 - bankruptcy, will I still have to worry about paying for remaining balance on my private loans??

Thank you very much.

B.


Asked on 1/07/10, 6:53 pm

1 Answer from Attorneys
Frank Vosholler Law Office of Frank L. Vosholler III

Chapter 13 is a consolidation bankruptcy. You have to include everything in the bankruptcy and you will pay what ever percentage of your deb that fits the program set up by your attorney. There are some exceptions: EX: If you have student loans, they will be paid at whatever percentage you owe, and then upon completion of bankruptcy you will still owe the remainder. Your car and any other secured debt such as mortgage arrearages, income taces, etc will be paid back at 100%. All unsecured debt like credit cards, medical bills, etc. will be paid back at the percentage plan set up, which can be between 10% and 100% depending on equity, income to debt ratio, or DMI * 60.

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Answered on 1/13/10, 8:38 am


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