100% Payback Question

[deedee642]

I have a question about Chapter 13. I have recently considered Chapter 13. I have been reading about a lot of people who have "prepared" for months and taken certain actions to save some money and put themselves in a position to pay attorney fees have some money set aside etc. My question is this, if I am looking at 100% payback am I just making things worse by not paying creditors and racking up late charges, over limits, etc. because that will only add to what I will have to pay back over the 5 year period. Also, since I am probably looking at 100% payback is Chapter 13 not such a great idea and what other options are there out there. Thanks a lot for any replies.
Dee

[catleg]

Correct, if you pay back 100% that includes all the late fees, penalties and interest according to the contract.
So it's not usually a great idea to run these things up if you think you might end up paying them.
However, chapter 13 is essentially means-tested repayment.
Are you over the median income?
Most of us are in ch13 because of either: over the median, owe taxes, or mortgage issues (or all of the above!).

[jetsfan2010]

Correct, if you pay back 100% that includes all the late fees, penalties and interest according to the contract.
So it's not usually a great idea to run these things up if you think you might end up paying them.
However, chapter 13 is essentially means-tested repayment.
Are you over the median income?
Most of us are in ch13 because of either: over the median, owe taxes, or mortgage issues (or all of the above!).

all of the above usually sums it up = )