I have a wage garnishment so that was the reason I decided to file chapter 13 but after really going over my paperwork, I change my mind the reason is I only have about 3 month left to pay it off. My next largest debt is student loans and I have made arrangements to make monthly payments of $200. I also have $5600 in secured debt in which I have spoken with them and worked out a payment plan of $260 a month. My credit card debit is about 7k. My chapter 13 payment will increase to $963 for 19 months. I know I can keep up with my finances once my garnishment is done. It looks like the majority of my payments will be going towards my student loans but even after the 3 years of payments my student loans will still be there. I previously was able to get my credit and finances and prior to falling ill so I know I can do it can. I just think filing chapter 13 is taking the easy way out not to mention I would like to purchase a house in the next 3 to 4 years.
Tell your attorney. You may be underestimating how hard it can be to MAKE creditors work with you outside of Ch 13. The garnishment will restart almost immediately after the case is dismissed. None of the creditors can be forced to work with you outside of ch 13.
Nothing in this response creates an attorney-client relationship. The answer is provided as general information and cannot be relied on due to the many factors that can impact any situation when all of the relevant facts may not have been included.
A Chapter 13 is considered a line of credit and if payments are made on time for a year, it's possible to buy a home. You also will have other debt discharged, and paying what you have to pay with little or no interest is a win win.
I am not your attorney and am not giving legal advice.
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