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Eric L. Bolves, Esq. |
CAN OUR MONTHLY PAYMENTS BE REDUCEDTO AN AMOUNT WE CAN AFFORD?In a chapter 7 bankruptcy, with few exception, all debt is discharged. That means you don't have to pay any creditor except those you specifically choose to keep. Some creditors, like furniture stores and department stores, often have a lien on the things you bought until they are paid off. Your choices are a little different with them. You can continue to make the regular payment with the hope of keeping good credit with them; You can give back the items you bought and pay nothing more, or; You can REDEEM the goods and pay a reduced amount based on what the goods are worth now. Houses and cars are different. Its rare that you can reduce payments. What you can often do in a chapter 7, is work out a plan to get caught up if your not to far behind. If you're too far behind, you're better off with a Chapter 13. In Chapter 13, you continue to make the regular payments on things like your house and car. The back payments are put into a 3 to 5 year payment plan. All of your other payments are reduced to an amount that allows you to give priority to the more important creditors like your house and car. Return To Main MenuOffice Consultation Area
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