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Ask Dave

Bankruptcy Debt Snowball

Nathan wants to know where his bankruptcy falls in his debt snowball.

QUESTION: Nathan filed Chapter 13 bankruptcy a couple of years ago and he’s now starting his Baby Steps. Can he incorporate the payments from the bankruptcy into his debt snowball?

ANSWER: Yes you can; it’s the last debt in your debt snowball. You’ll probably have to call the trustee and pay it off in one lump sum. You can’t make payments on it. If you’ve got a good Chapter 13 bankruptcy attorney, they do a great job. Pay the whole thing off at one time.