How does a chapter 13 case help me with my secured debts?
In a chapter 13 you must pay your home mortgage loan in full. The good thing is that the case gives you time to pay this off over the original term of your mortgage. You must pay any overdue payments over the course of the three to five-year plan. You must make your regular monthly payments time. This means that if you were behind on the mortgage payment when you filed for bankruptcy, you will be making a larger mortgage payment during your plan to make up for the past due debt. You will not be allowed to reduce the interest rate on your mortgage loan.
If you took out a loan to buy a car for your personal use within 910 days (approximately 2.5 years) before you file for bankruptcy, you must pay that loan in full in your chapter 13 plan. If you gave any other property to a lender as collateral for a loan that you obtained within a year before filing for bankruptcy, you must also pay that loan in full in your chapter 13 plan. You may be able to reduce the interest rate on these secured debts.