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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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Im not sure if I should file chapter 7 or 13. I have about

Resolved Question:

I'm not sure if I should file chapter 7 or 13. I have about 35,000 in unsecured debt.
I get alot of calls from creditors offering to cut down balance owed. will chapter 13
also cut down balance owed to creditors? I mainly want to get rid of my second mortg.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.

Hi JACustomer,

A Chapter 7 Bankruptcy is preferable to a Chapter 13, because with a Chapter 7 you don't pay your unsecured creditors anything, and with a Chapter 13 you have to pay all disposable income (after subtracting allowable expenses) for 5 years.

However, to get rid of a second mortgage, you have to file a Chapter 13. Filing a Chapter 13 can also reduce the amount that you have to pay to unsecured creditors.

cfortunato and other Bankruptcy Law Specialists are ready to help you