Expert: Terry Leeders - 9/30/2008

Question
If someone owe tax money (state and federal, student loans) and get into chapter 13 to force a payment plan.  How can the person calculate how much is going to pay?   What determine the amount to pay?  Do all the debt have to be paid on the years of the bankcrupt?

Thank you

Answer
taxes that are less than 3 years old are paid 100% thru a chapter 13. If older, you might be able to pay them at a discounted rate with your other unsecured creditors.  this can be as low as 10% and up to 100% based on your assets and your income.
Student loans are non-dischargeable, so they would also be paid 10%-100% based on the same issues above, but the balance that doesn't get paid, you will still owe after the case is done.
Speak to a local bankruptcy attorney (I'm in Illinois) to discuss your case and repayment plan.