Chapter 13 debt consolidationn

A Chapter 13 bankruptcy is often referred to as debt consolidation. It does consolidate all unsecured debts and allows all or a portion to be paid interest free over the life of the plan. It also permits a filer to catch up on a past due mortgage payments and automobile payments. Chapter 13 personal property interest rates are calculated at this time at 5 per cent. That is a significant reduction for most filers. The Chapter 13 requires a wage earner to have a wage order deducting the chapter 13 plan payments from their wages to fund the plan. This is not a garnishment and should not be considered as one. Chapter 13 is a wage earner plan and usually lasts 60 months long. At the end of the plan most debts are paid out and/or discharged. An exception may be a house mortgage. All bankruptcy filings require complete and thorough disclosure of assets, liabilities, and potential assets ( property to be inherited through a will, lawsuit award, winnings at the casino or lottery)