Chapter 13 Question
If a debt beomes part of a Chapter 13 BK, is the payback based solely on principal with interest eliminated? For example, if some files Chapter 13 and opts for a 100% payback, 60-month plan, would a $60,000 CC balance be paid off at a rate of $1000 per month for 60 months? As another example, if someone had an "upside down" car loan in which $20,000 was owed on a car worth $15,000, would the filer only have to pay at a rate of $250/month (15,000 / 60)? If this is the case, it would seem that someone stuck with a high interest, long term, upside down car loan could get a dandy "refinance" by filing a Chapter 13!
Answer:
The answer is, "it depends." It depends on which state you're in, the details of your finances, the type of debt you're paying back, the Proofs of Claim filed, and a number of other factors. Speak with your bankruptcy attorney for more detail.
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