Q: Need to file chapter 13 but can only afford payments

A: I understand you are considering filing for Chapter 13 bankruptcy but are concerned about being able to afford the payments. Here is some information that may be helpful:

• Chapter 13 bankruptcy allows you to reorganize and repay debts over 3-5 years. You make monthly payments to a trustee who distributes the money to creditors.

• To qualify, you need enough steady income to make the required payments. The amount is based on your disposable income after necessary living expenses.

• If your income is too low to fund a repayment plan, Chapter 13 may not be a viable option. Consulting with a bankruptcy attorney can help assess your situation.

• Some Chapter 13 plans allow for very low payments to unsecured creditors like credit cards and medical bills. Secured debts like mortgage and car payments must be paid in full if keeping the property.

• Legal fees can often be included in the payment plan rather than paid upfront. Many attorneys offer free initial consultations to review options.

• If you absolutely can't afford a repayment plan, Chapter 7 bankruptcy may be an alternative to discharge debts. However, this liquidates non-exempt property to pay creditors.

My recommendation would be to schedule consultations with a few bankruptcy attorneys in your area. They can review the specifics of your financial situation and provide guidance on your best path forward. Many offer low-cost or free initial meetings. I hope this information is a helpful starting point. Let me know if you have any other questions!