How does chapter 13 bankruptcy work? Do you get to keep cable, internet, cell phones? Do they take all of your

Question

extra money for payments?

Answer 1

Chapter 13 is actually the "repayment plan" where you make one payment a month to the courts and you get to keep all of your property and utilities. Contrary to a Chapter 7 or 11 where they take the property that you claim on your bankruptcy if it has not been paid for. I did Chapter 13 and I think it is the best way to go.

Answer 2

There has been a law change since we filed chapter 13 bankruptcy, so some of my answer may no longer apply.

All of our bills had to be reported, from least to greatest. A budget was figured based upon our income. All of our creditors were sent letters advising of our intent to file chapter 13, and the date of our hearing, with invitation to appear. Those who did not appear, and did not contest to filing, and had no collateral on the debt, were either greatly reduced or eliminated. Our house, and the cars, were refigured by the court at the "approved" interest rate (I don't remember what that was). The amount we could afford to pay was figured based on pay periods, and that amount was automatically deducted from my husband's paycheck and sent to the Trustee. The trustee then disbursed the money to the various creditors, attorney, etc. These deductions continued until the debts, as refigured, were repaid. In our case it was almost 5 years. You sign papers stating you will not apply for credit in any form for the length of your repayment plan. Your utility bills are not included, unless there is a past due amount. Anything unnecessary is eliminated, with your agreement, at your hearing. At the time we filed (1998), the lawyer fee was $800. This amount was included in the repayment plan. You will recieve a quarterly statement from the trustee showing where your payments are going.

We did not have cable, internet or cell phones at the time of our filing so I do not know how those things are affected. They may not be considered necessary, but I just do not know.

Answer 3

Pay your bills so the taxpayers don't have to subsidize your excesses..

shut off your cable, cell and internet, maybe you could pay your debts on time.

I am sick and tired of subsidizing slugs.

Answer 4

http://www.creditinfocenter.com/bankruptcy/chapter13BK.shtml

Answer 5

you shouldnt be able to because they are not necessities, i actually think you should go to jail for awhile too.

luckily i dont know if you do why dont you talk to a bankrupcy lawyer since you already need one anyway