Chapter 13 bankruptcy is labeled a reorganization. Through a chapter 13 plan, you would repay some of your debt over a period of three to five years. However, what you pay is not based on the amount fo debt that you owe. It is based on, amongst other things, your disposable income. So it is intended to be a payment that you can afford. At the end of it, any debt not paid is discharged (so long as it is dischargeable debt).
A Chapter 13 bankruptcy can be a powerful tool.
If you are behind on your mortgage loan or car loan, a Chapter 13 bankruptcy can get them caught up and stop a foreclosure or repossession in its tracks.
In some cases you may be able to reduce the amount you owe on your car.
In certain situations, you may be able to discharge your second mortgage.
If you owe a large amount of tax debt, a Chapter 13 bankruptcy can discharge certain portions of it and get the rest repaid during the life of the plan.
If you have a large amount of high valued property, a Chapter 13 bankruptcy will allow you to keep it.
Deciding to file for bankruptcy is a difficult and complex decision. Call me and I'll get you in for a free, no-obligation, consutation where I can look at your personal situation and let you know if bankuptcy is right for you.