Posted by: admin in chapter 13 bankruptsy rules on
burnettbeth asked:
I have researched bankruptsy and understand that i would make payment arrangements and still pay my bill within three yrs. My question is i have hear that you still have to pay the principle on your house and car but you no longer have to pay the interest. For example, on my 50,000 dollar mortgage, would i still end up paying 100,000 over 30 yrs or would i only owe the flat 50,000 and then be done. Cant find any info on this anywhere. Thanks Beth
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I have researched bankruptsy and understand that i would make payment arrangements and still pay my bill within three yrs. My question is i have hear that you still have to pay the principle on your house and car but you no longer have to pay the interest. For example, on my 50,000 dollar mortgage, would i still end up paying 100,000 over 30 yrs or would i only owe the flat 50,000 and then be done. Cant find any info on this anywhere. Thanks Beth
the mortgage note stays the same. only the accouns listed in the 13 have to be paid back in 3-5 years although sometimes the trustee is paid the mortgage pament to ensure it is paid on time
While filing for bankruptcy under Chapter 13, you have to draw up a plan of action meant to pay your dues within the next 3 to 5 years and submit to the bankruptcy court. You should clear your dues as much as possible at frequent intervals. Filing under Chapter 13 will protect you against the undue pressure exerted on you by your lenders to pay your debts.
The only drawback is that your bankruptcy will affect your credit score. It is retained for the next 10 years. So you might find it difficult to get any credit during that time.