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Can Chapter 13 bankruptcy help my situation?

Hello, I've had a rough year unfortunately. This year started out great, but came January 5th my world started crumbling. I found out I'm getting laid off and then an hour after I found that out, I turned my head for a split second and in that split second, the cars in front of me completely stopped and by the time I looked up I smashed into a Honda Civic and rammed it into a tow truck and damaged both cars. In one day, my job, my car, and my bills got worse like that. But hey, I survived the crash so I have something to be thankful for and no one else was hurt. The worst news is that my car insurance cancelled on me in November, but I didn't find out until December 27th. By then, I didn't have the money to get new Car Insurance, I was strapped on bills already. I had planned on getting Car Insurance January 9th when I got paid, but obviously it was a bit too late. So with no car insurance, my car has sat totaled in my driveway since. The cost to fix it would be over $8K. A lost cause indeed. For months I've been trying to find a way to survive my current and new debts and I was lucky enough to find a great job that pays $60K a year as a IT consultant. Unfortunately, with as much bills as I owe, its still not enough and I've been living on $100 a week for months now trying to pay these debts, but unfortunately other bills have come up, like they always do, and with theats of creditors and the Auto loan suing me and garnishing my wages, I'm beginining to think that my last resort is Bankruptcy. Of course, Chapter 7 won't work because I make too much money now and there is no way I'm letting this job go as I spent over 2 months searching rapidly and luckily craigslist saved me again. I believe though that I qualify for Chapter 13 bankruptcy which would allow me to create a more affordable repayment plan and protect me for up to 3 to 5 years from creditors coming after me. I'm no expert so I would like someone to review my debts that I'll list below and let me know what they think. Any help would be great. Thanks Here is all my debts: -My Auto loan (Which is the worst decision I ever made) balance is $13,500. -The civic I hit into the tow truck was totaled. I owe $8200 -The tow truck has $2100 worth of damage that I'm responsible for too. -I owe $2000 on a credit card. Another $900 for another credit card. -Another credit card (That I let my Mom open under me) $900 -Overdrawn Checking account $800 (Wells Fargo is out to screw you. $35 Overdraft fees and they always seem to put all your transactions before your deposit and direct deposits) That brings the total to $28200. If I had 3 years to pay this off with no interest getting added I'd have to make $783.33 monthly. If I had 5 years, all I would have to make is $470 a month. I'm not sure if its that simple though. It never really is. Also my auto loan is a secured debt and I'm not sure how thats effected and if Chapter 13 protects me against that. Any feedback about my situation would be great. It's pretty bad, but I'm at the point now where doing a bankruptcy would be relevant as I have 2 more months before these bills start coming after me trying to garnish. Thanks in advance

Public Comments

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2. It sounds to me like you are a candidate for bankruptcy. With Chapter 13 you will likely only have to pay a portion of your debt that fits within your budget. With chapter 13 most attorneys will give you a free consultation, and if you qualify will include their fee in the repayment plan. The payments will often come right out of your check.
3. Yes, chapter 13 will protect your assets from being seized by creditors to satisfy debts owed to them by you. You can get a bankruptcy kit that was prepared by a lawyer in your state that includes a book that will guide you and all the legal forms you need at { http://www.legalformsbank.biz/bankruptcy.asp }.