in chapter 13 bankruptcy,do you still pay back on credit cards or just things you reclaim?

Answer 1

The previous answer is correct, but maybe I can explain it a bit clearer.

When you say "reclaim" I think you mean "reaffirmation". That means that you are agreeing to pay a debt outside of the bankruptcy.

Lets say you have 5 credit cards in debt, a car loan and a home loan. When you file bankruptcy, any times the credit card companies will cancel your cards. Bad news! After you get out of bankruptcy you want to try to re-establish your credit, so keeping one of your cards is very important.

You request for a "reaffirmation" of the loan to one of your cards, and agree to pay it back in full, outside of the bankruptcy plan. This must be approved by the court. If it's a small amount it's usually not a problem. If it's large, you can expect the trustee to fight with you over it.

All of the other debts are paid back depending on the type of debt.

Priority loans (Taxes, student loans, etc) get paid back in full before everyone else.

Secured loans (car, mortgage, etc) get paid back in full. If there isn't enough money in the plan, they may sell this property to pay the debts. This is something your trustee decides.

Unsecured debts (credit cards) get paid last, and according to a formula. The highest balances get the most amount by percentage.

Note that this is a real "general" description of how it works, because many trustees have their own system. They are NOT looking after your interest, they look after the creditors interest.

Also let me clue you in on a dirty little secret. Trustees get a percentage of whatever is placed into the plan. They will tell you that your mortgage, car, taxes, everything must be put into the plan so THEY can pay your bills. Of course they want that! They get more money from you. Tell your attorney to explain it to you!

Answer 2

A chapter 13 plan determines how each debt is listed... secured/priority, secured/non-priority, unsecured. Depending on the trustee's decision, certain debts are categorized in one or more of these statuses. Usually credit cards are unsecured and non-priority. If they are included, its usually a very small percentage of the balance. Some things like a mortgage may be in two categories. Possibly the balance you owe is more than the value of the collateral on the loan. Its possible that portions of each debt is "excused" or deemed unsecured and in effect, discharged. Your attorney should be able to show the exact breakdown of your debts in the "bankruptcy plan". Good luck!


** 11/6 edit**

A reaffirmation is not used for a chapter 13 bk, only chapter 7. In chapter 13, either the debt is in the bankruptcy plan or not, there is no "reaffirmation".

Answer 3

Information on Chapter 13 Bankrupt
http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-13-Bankrupt.html

Answer 4

Your repayment plan will include your credit cards.