Chapter 13 and debt repayment

[cghornet]

What is the name of your state?KY

I make around 31000.00/yr and have one dependent. I have about 18000.00 of unsecured debt, mostly credit cards with a small amount being medical bills. I'm not sure whether I should file a chapter 7(if I qualify) or a chapter 13. I have one vehicle which has a loan lien. What is the typical(if there is such a thing) percentage of debt that must be paid back in a chapter 13.

Also, under the new laws, do most chapter 13 cases involve a 5 year payment plan?

Thanks in advance.

[Ladynred]

If you have at least $100 in disposable income after ALLOWED expenses, then even if you're under the State median income you could wind up in a Ch 13. If you file for Ch 7 and its not granted and you're shoved into a Ch 13, then yes, the likely term is 5 years. The percentage varies, but if you can pay off at least 25% of your debts that's what the law is going for.

[cghornet]

Well, I definitely will have over 100.00 after allowable expenses. So, you're saying I'll probably end up paying 25% of my unsecured debts?

Thank you

[Ladynred]

That is entirely possible, yes. You should call for a couple of free consultations with an attorney to be certain of where you might stand.