If I Have to File A Chapter 13 Do I Have To Pay All of My Unsecured Debts Back?
No. Only in very few cases do debtors have to pay 100% to unsecured creditors. That would only apply to those who have a large amount of income or those who have a large amount of equity in their home. Most people who file for Chapter 13, are paying back mortgage or car arrears and if they have to pay anything to unsecured creditors, it is a low amount. In many Chapter 13 cases filed, even if something has to be paid to unsecured creditors, in today’s economy, very little is being paid and a large amount of unsecured debt is wiped out. And again, in many Chapter 13 cases, zero percent is being paid to unsecured creditors.
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