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You'll get the benefit of the reduced balance and interest rate only if you complete your Chapter 13 plan. If the case gets dismissed, the loan will revert to its original terms and the creditor will have the right to collect the total amount owed at the higher interest rate.
In most cases, once you complete your Chapter 13 payment plan, you are relieved from this debt. If your dischargeable debt is secured, you must either continue making your payments on it during your bankruptcy or you can surrender the collateral asset (such as your car).
A Chapter 13 petition for bankruptcy will likely necessitate a $500 to $600 monthly payment, especially for debtors paying at least one automobile through the payment plan. However, since the bankruptcy court will consider a large number of factors, this estimate could vary greatly.
You can get a personal loan while you are still repaying your Chapter 13 bankruptcy plan, but it's difficult. Your trustee court will only allow you to take on new debt if there is a pressing need for you to do so, and if it will help you to make your repayments on time.
Creating a payment plan The goal of the Chapter 13 process is to allow you to keep your possessions, including your car, while paying off your debt. Additionally, if you're behind on payments, the plan will require you to catch up and make timely payments moving forward.