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Now, the key here is unsecured creditors, and what people have trouble sometimes getting in their mind and understanding is that that is where your savings is on a Chapter 13. In other words, that’s where you get your savings. You pay a lot less. The minimum in our jurisdiction is five percent for five years, so that’s only one percent a year or a penny on a dollar for each year, so that’s a huge savings. That’s a drop in the bucket compared to what people owe in unsecured debt, so it comes out to a spectacular deal, basically, for anybody that files.

One step better is to pay nothing, and that’s what our goal is in Chapter 7. When someone comes in, my knee jerk reaction, is that they want to keep everything, house, car, whatever the case may be, and number two, that they want to file Chapter 7 and not pay any unsecured creditors back and be in and out of the whole process in less than four months.

If you’re considering filing for bankruptcy, contact experienced Bankruptcy Attorney Scott Humble for a consultation.

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