Are you considering filing for Chapter 13 bankruptcy in San Diego? If so, you might be wondering how much your monthly payment will be and if you can afford it. It is possible to discuss an average monthly payment amount in a Chapter 13 bankruptcy, but it is essential to keep in mind that each case is unique.
The Monthly Payment Amount Depends on Your Unique Situation
In some cases, the average payment for a Chapter 13 case ranges from $500 to $600 per month. If you have several different low payment amounts and not a significant amount of income, you will be paying a lower amount per month. Paying $500 to $600 a month typically happens when a debtor has at least one automobile and other types of average word payment requirements, such as credit card bills.
These cases frequently include others who are barred from filing a Chapter 7 bankruptcy. The required eight years have not yet passed from their previous Chapter 7 bankruptcy, so they are forced to file a Chapter 13 bankruptcy. However, this may not be the case for your particular situation. If you earn a higher income and have more significant debts, you could expect to pay between $1,000 and $2,000 or more.
Paying House Payments and Arrears Increases the Monthly Payment Amount
If you are behind on your mortgage payments, your Chapter 13 bankruptcy plan will include higher monthly payments. Typically, if you owe money for your mortgage, your monthly payments could be closer to $1,500 per month or even higher. The typical, ongoing mortgage payment along with the arrears you owe need to be fully paid throughout your Chapter 13 bankruptcy plan. The bankruptcy trustee overseeing your case will typically charge a conduit for you to pay ongoing mortgage payments through the Chapter 13 plan. As a result, the average payment plan is much higher.
Higher Income Increases the Monthly Payment Amount
Likewise, if you have a higher income, the monthly payments you will need to make will increase considerably over the average. Debtors with high income and high debt frequently paste payments averaging in the two to $3,000 range or even higher. On average, a Chapter 13 Bankruptcy will force these filers to repay a high percentage of the debt. They could raise the debt up to 60%, 80%, or even 100% of the range of repayment.
A higher monthly payment may seem overwhelming, but better still receive the benefits of filing for a Chapter 13 Bankruptcy. For example, they will be able to take advantage of dramatically reduced or 0% interest rates. They will also benefit from the rigid protections that a Chapter 13 Bankruptcy provides, such as a stop to creditor harassment.
Discuss Your Case With a San Diego Bankruptcy Lawyer Today
Are you considering filing for Chapter 13 bankruptcy, but you are concerned about how high your monthly payment will be? If so, one of the best things you can do is discuss your case with an experienced bankruptcy lawyer. Contact Bankruptcy Law Center today to schedule your free initial consultation with one of our experienced bankruptcy lawyers.