Top Five Reasons to File a Chapter 13 Bankruptcy:

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1. STOP THE GARNISHMENT: All garnishments stop at the moment of filing a Chapter 13 Bankruptcy. Typically a chapter 13 plan payment is less than a garnishment and takes care of all of your debts comprehensively. Chapter 13 Bankruptcy usually requires as little as only the filing fee (currently $281) to file. All attorneys fees are usually within the Chapter 13 plan – most attorneys offer this with a entry of a payroll order to pay for the bankruptcy.

2. SAVE THE HOME: Any home can be saved in Chapter 13. Your arrearage can be paid back over sixty months without interest.

3. REFINANCE YOUR CAR: Practically any call loan can be refinanced to prime rate plus 3% which today is 6.25% or less. This is a remarkable way to save your car and make it more affordable.

4. STRIP THE SECOND MORTGAGE: this magic trick is called a lot of different things but simply put it is getting rid of mortgages that are underwater except the first mortgage on your primary home. For example if your house is worth $200,000 and you have a first mortgage of $240,000 and a second mortgage of $70,000, using this technique in chapter 13 bankruptcy you can pay your first mortgage as usual and treat the second mortgage like a credit card paid at 10 cents on the dollar. At the end of the bankruptcy the second mortgage is released as though paid off completely.


Because salaried workers can pay their chapter 13 legal fees through the chapter 13 plan, most chapter 13's have a reasonable up front payment and are easily affordable for most debtor's and their matters.