How Chapter 13 Can Help You Decrease Your Debt Payments

Whether you have massive student debt, medical debts, or credit card debts, you may be seriously considering filing for bankruptcy. This is especially true if you are no longer able to keep up with all of your loan payments and are concerned that you may lose important assets as a result of your debt. 

If you’re currently leaning towards using Chapter 13 to file for bankruptcy to safeguard some of your assets, you may be interested in finding out how Chapter 13 can decrease your debts.

Does Chapter 13 lower your debt? Yes, your overall debt may decrease substantially. That’s because you may not be required to pay back your unsecured debts in full.

How Does The Chapter 13 Bankruptcy Helps You To Obtain Debt Relief In Texas

Student Loans

Some debtors’ personal debt is attributed to student loans that they have not paid off. Unfortunately, your student loans can’t be automatically wiped off by filing for Chapter 13. However, you should be able to reduce the amount you pay towards clearing your student debt. This is one of the advantages of filing for Chapter 13. 

This is great news if you have a large mortgage on top of your student debt. If you can pay less for student debt per month, you’ll be able to catch up on your mortgage payments. However, do keep in mind that once the three to five-year time period after your bankruptcy comes to an end, you’ll be required to continue paying any remaining student debt. This goes on until it is paid off in full.

Medical Debts

If you’re curious about how much of your medical debt you’ll be able to clear through filing for Chapter 13, the answer will depend on your specific circumstance. Your medical debt will typically be lumped into a pool of your total debt. Then depending on factors such as your income, your equity, and assets, you’ll be made to pay back a certain amount of this total debt. 

Credit Card Debts

Your credit card debt will also be added to your total amount of unsecured debt. Along with any medical debts and personal loans which you may have outstanding. Again, note that you may only be required to pay back a small portion of this debt. This means that you can worry less about paying back your credit card debt in full if you choose to file for Chapter 13.


Unfortunately, you will not be able to wipe alimony payments from your bankruptcy payment plan. You will still be required to pay your alimony payments and this holds true during your payment plan and even after that.

Child Support

Chapter 13 bankruptcy does not stop child support payments. In fact, child support payments are considered a priority debt and must be paid in full during a Chapter 13 bankruptcy payment plan. The plan must be approved by the court, and it must provide for full payment of priority debts such as child support.

Home Mortgage

You’ll need to catch up on your mortgage payments in order to be able to keep your home during your bankruptcy to save it from foreclosure. By filing for Chapter 13 a trustee will be appointed who will be in charge of processing both your home mortgage payments and your mandated unsecured debt payments on your behalf. 

Hire An Experienced Bankruptcy Attorney

Manage Your Debts Wisely With Chapter 13 BankruptcyA bankruptcy attorney has extensive knowledge and experience in the complex legal process and regulations surrounding bankruptcy. They can provide guidance on the different types of bankruptcy, the eligibility criteria, and the steps required to file for it.

In addition, they have access to resources that can help you navigate the bankruptcy process successfully. They can connect you with financial counselors, credit repair services, and other professionals who can assist you in rebuilding your financial future.

Lincoln-Goldfinch Law has a team of experienced and skilled Chapter 13 bankruptcy attorneys. The firm aims to provide the highest quality of service while working with your unique needs as a client.


Filing for Chapter 13 in the United States may be a good option if you have massive student debts, credit card debts, or medical debts. The same is true if you are struggling to make your mortgage payments with all of your liabilities. However, it’s always a wise option to speak to an experienced bankruptcy lawyer If you want to file for Chapter 13.

Get More Info
Home Page

Get Help From A Bankruptcy Attorney

    How To Find Us

    Austin Office
    Lincoln-Goldfinch Law

    1005 E 40th St
    Austin, TX 78751

    Waco Office

    Lincoln-Goldfinch Law

    1616 Austin Avenue, Suite A
    Waco, TX 76701
    By Appointment Only

    Austin & Waco

    Call or Text: (855) 502-0555
    Fax: (512) 323-9351