Ch 13 vs Debt consolidation ...and other ?s

My husband and I are so confused about all of the options. We have about $75000 in debt partially due to a recent foreclosure. Our incomes are better than average and so we will be required to pay almost 100% back in a ch 13. I'm not sure if debt consolidation is an option since I have been sued for 3 credit cards already. We are debating the debt con. route and borrowing from our retirement to pay it off but hate to do that and don't have enough to pay all $75000. Any ideas?

Also, if you know the answers to any of these questions please help!...

How do they figure out what your ch 13 payment will be? Theoretically, if we had larger car payments would our monthly payment stay the same? In other words, if the amout paid based solely on money left over after necessaties are paid out? I ask this because our cars are 10 & 12 yrs old...they won't last the 5 years of our bankruptcy...can we get newer cars before we file?

What happens if our income decreases during a ch 13?

Thank you!

I think it will be better to file Chapter 13 bankruptcy. As soon as you file Chapter 13 bankruptcy, automatic stay will be imposed on the court proceedings. You'll be able to repay your debts under a court monitored plan within 3-5 years. The court will decide about the monthly payment. I guess, it will be better to not purchase new cars right now. Paying off your debts should be your first priority.

Thanks for your reply. We were told it would be a 5 yr ch 13. I agree debts are the priority but also worry that our cars are going to break down. Although they are almost paid off they are luxury cars ($200 for an oil change, etc) and anything that goes wrong will be thousands to fix...which we won't have available. We also need to get to work and have 2 small children so it's important to have reliable transportation. That's why I was asking about it. I assume no one will give us a car loan during our ch 13.

Can you trade in those luxury cars for something economical and used? (Like a used Kia) Your maintenance costs and insurance costs will probably go down.

You need to talk with a bankruptcy attorney. I dont recommend the debt consolidation route .....with active judgments, they can jump in any time and garnish your wages or freeze your bank account at anytime.

Yes, we could trade in the cars...they are only worth about $5000 though. We need something that will fit 2 car seats so we have to weigh the pros and cons. Our cars now are at least very safe ones and can drive well in the snow.

Does anyone know how the monthly payments are calculated for a ch 13?