Hello, my name is Andrew H Griffin the third. I’m a California State attorney but over 35 years of experience Can I afford chapter 13? One of the most stubborn myths about bankruptcy is one which says that chapter 13 requires Full payment of all of your debts over 60 months. It’s true This would indeed rule out chapter 13 for most consumers after all. What good? Would come from being granted 60 months to pay off all of your debts If you can’t afford your payments now how in the world could you afford your payments if you had only 60 months to pay them? This myth about paying your debts in full in chapter 13 is happily only a myth In fact a law says something quite different in Chapter 13. Your monthly payment plan is based on what you can afford then and at the end of the chapter 13 case in the 36 or 60 months all of the remaining balances on your debts are Wiped out just like in Chapter 7 you might wonder how that can be fair to your creditors But the answer is easy and the law gives it the full recognition Your creditors were slated to get absolutely no payment in Chapter 7 weren’t they? So how could it be unfair to pay them a dividend consisting of what can you afford in a chapter? 13 case this is especially true when the law requires that you pay what you can afford Into your chapter 13 plan after paying all your reasonable monthly living expenses And no there isn’t any catch-22 lurking in chapter 13 Congress would not have bothered to enact chapter 13 if you had to pay more than you could afford as a monthly payment Because no one would be ever to file chapter 13 if that were so also lawyers wouldn’t steer clients into chapter 13 if the monthly payments who are not possible for clients living in the real world to pay So think about it, maybe chapter 13 wouldn’t be such a bad idea for you after all There’s no means test to worry about and you can get rid of more debts in your chapter 13 and your case is often subject to less scrutiny by debtors than a case under Chapter 7 and Whatever your reason for choosing chapter 13 You can be sure it will solve your debt problems just as effectively as chapter 7 This is Andrew H Griffin the third at Andrew Griffin law office calm today We’re helping you understand the bankruptcy process. You want to learn more about bankruptcy go to Andrew Griffin law office Calm to get a free copy of my book