Only certain kinds of debts are paid back in a St. Louis Chapter 13 bankruptcy. These would include mortgage arrearage (in other words, the amount of money you have fallen behind on your house payments), car loans, tax debt, back child support, and sometimes a portion of your unsecured debt (like credit cards, medical bills, and payday loans). But the exact amount you pay back per month depends on a several key factors.
A Missouri Chapter 13 bankruptcy is described as a repayment plan over the course of three (3) to five (5) years during which you pay a certain monthly amount to the Trustee. The Trustee then distributes these funds to the various creditors listed in your Chapter 13 plan. At the end of the plan, all the remaining unsecured creditors are discharged (i.e. knocked out forever). This in contrast to a St. Louis Chapter 7 bankruptcy, where all the unsecured creditors are discharged right away.
The main reason why someone would file a Chapter 13 would be because they have fallen behind on their mortgage, are risking foreclosure, but are not in a position to come current on the note right away. Filing a Chapter 13 will stop the foreclosure sale from going through, and allow you pay back the arrearage over a period of years (which is far better than coming up with the funds immediately). Another major example would be a case in which your car is repossessed. A 13 will allow you to get the car back, and pay off the balance of the loan with a much better interest rate than you are probably handling right now. In addition, it may also be possible to cram down the amount owed on the car to the actual fair market value of the vehicle. This can often end up shaving several thousand off of what you owe.
A Chapter 13 will also stop all garnishments and bank levies, freeing up that money, and allowing you to spend it as you see fit. As for the unsecured debt that you owe, the repayment plan has provisions for this as well. But how much of this debt you pay back depends greatly on what your household size and income is. An experienced lawyer can make sure that the majority of this unsecured debt (if not all) is discharged without having to pay back a dime.
Once all of these factors are taken into consideration, and the amounts are calculated, these debts are reduced to a monthly, consolidated payment that you make each to the Trustee. The affordable St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken want to make sure that you understand how each chapter of bankruptcy works, and put you in the best position possible moving forward. Our goal is to get rid of the debt you no longer want, keep all the assets you wish to retain, and get you the fresh start / clean slate that you deserve.