what is the average amount (percentage of original debt) a person pays to creditors upon filing for bankruptcy?
You do not pay back money to your Creditors when you file a Chapter 7 bankruptcy, unless they are secured debts and/or you have assets which can be sold to pay your creditors. In a Chapter 13 bankruptcy, your Creditors must be paid 1% more in a Chapter 13 than they would receive in a Chapter 7 or they must be paid the monthly amount that you have left over after paying your regular expenses. So…let me know the amount of secured debts, the years you got them, the value of the security, the claim amounts and the amount of your unsecured debts….any priority debts, etc…and I can figure out roughly what you would pay. It also depends on whether you have to pay for 36 months or for 60 months. Since Congress passed these new laws, which stink, by the way, if your income for 6 months if over the median set by the IRS, you must pay for 60 months or 5 years into the plan. This could make the percentage being paid to your Unsecured Creditors a higher percentage. I always tell our clients th
