complete discharge in ch 13?

[kd529]

can some debts be completely discharged in a ch 13, requiring no repayment? i read creidtors have to file to receive payment. most of my debt is credit card debt with the major companies, chase, citi, discover, amex.  do they typically file to receive full repayment?

the more i read, the less likely is sounds like i would get relief in anyway.

[Anonymous]

Most of my cc creditors files, some didn't. How much they were paid (79.9%, in my case) is determined by how much of your income the trustee and court decide you must contribute. At the end of your five years, however much is paid back, THAT'S the percentage they get. It can be as little as 20%, or as much 100%. And, of course, one of the advantages of including them in a filing is that interest stops accumulating.

[kd529]

thanks.  stopping interest is a big thing, even if i have to pay most of the original balance back.  I'm afraid when its time to calculate how much disposable income I have, I will be stuck with a large payback percent. although I see life insurance and disabilty as a necessary expense, i dont think that works into the calculation.

[Anonymous]

You do get relief from cc interest and late fees (and of course annual fees).  Student loans continue to charge interest during the bk.  if there's anyway you can debt snowball (Dave Ramsey's program) your cc debt, that may work better for you in the longrun.  Bk is forever (not just the 7 or 10 years it shows up on your credit reports) and you don't want to use it to avoid paying people what you owe them - it's better just to use bk as a restructuring plan if it is the very best of all restructuring/repayment plans for your situation.  If you must file bk, use it as a rebuilding tool and move forward in good faith - it happens to good people. 

Message Edited by utah2009 on 04-04-2009 06:22 PM