Do I have to pay all of my creditors back in full if I file a Chapter 13?

When you file for Chapter 13, you are put on a repayment plan that allows you to reorganize your debts and pay back your creditors over a period of time. One of the great things about Chapter 13 is that people usually only pay off a portion of their debts and have the remaining qualified debts discharged. We explain more below. 

Will I Need to Pay Off All My Debts When I File for Chapter 13?

No. Only a very small percentage of people who file for Chapter 13 actually pay their creditors back in full. Most filers only pay a portion of their unsecured debts during their repayment period, and the rest is discharged after you make your last payment. 

In most cases, your payment to the Trustee each month will pay for your secured debt on the property you want to keep (like your car or your furniture), the back taxes or child support you may owe, your attorney fee, and your trustee fee.

Your unsecured debts (like credit cards, medical bills or debts on the property you do not want to keep) are dischargeable and payment of the debts is not required.

Learn More About Filing for Bankruptcy

Bankruptcy and debt repayment are complex issues that require analysis for each individual. Although many people are not required to repay their creditors in full, there are some cases that do require a 100% repayment in a Chapter 13. A bankruptcy attorney can review your situation and let you know what you can expect. 

Call our office for a free first visit where we can tell you how your case would be handled.