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Law Offices of Christopher A. Benson, PLLC

Can Chapter 13 Bankruptcy Help Me Reduce My Monthly Payments?

  • By: Christopher Benson
  • Published: April 16, 2015

The short answer is “Yes” for most people. Chapter 13 bankruptcy typically provides a global solution to your financial situation for the vast majority of people. Financial problems don’t “go away” by themselves. But, there are effective tools for you to take control of your financial situation and set you up for a fresh start and success going forward.

If you’re considering bankruptcy because you took a pay cut, lost an income source, got divorced or some other long-term change, lowering your monthly payments can be a huge long-term help. The need to own a vehicle or have a home isn’t going away, and you’re able to pay for it, just not at the same price you were able to afford before things changed.

Filing for bankruptcy can help lower monthly payments on items like cars and boats, but it depends on what kind of bankruptcy you file. If you’re filing for Chapter 7, it likely won’t have any impact on your car payment. That’s because some secured creditors—creditors that you are paying in return for an item of value, like a home, car or other item that can be repossessed—won’t allow you to exit bankruptcy without reaffirming your loan agreement. This is especially true of car loans. A reaffirmation agreement means you agree to pay off the item even if you declare bankruptcy again sometime in the future. And if you miss payments, the car is repossessed and you still must continue paying for it.

Here is the key thing to remember: Most bankruptcy attorneys will meet with you for free to find out if filing bankruptcy would be a benefit for you. Therefore, you can find out your options for free. 

Over the past 32 years, the Law Offices of Christopher A. Benson has helped over 2,300 of Washington clients take control of their financial situation. We can stop your garnishment and change your monthly payments for all your combined unsecured debt, and if you have had more than $600 garnished within the last 90 days, we can get all of the money back in most cases. But you have to act quickly–call (253) 815-6940 for your free consultation, or email us today. Evening and weekend appointments available.

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