Joe C.

Brief description of your legal issue:
I foreclosed on my home in 2008 and I had a second mortgage.  My second mortgage still has a balance of approx. $39,000.
On my credit report it shows as charged off, but it still reflects against my debt to income ratio.

>This is because a charge off does not extinguish the debt. It helps the creditor with their books, by charging off, but you still owe the $$>

 I also have a car payment of $675.00 for a car worth $10K.  How does chapter 13 bankruptcy work? can it help me? 

>Ch. 13 likely can help as it consolidates all the payments, the car, the deficiency on the house for the 2d TD, and the credit cards.
It can also be used to re-write the car loan to a more favorable interest and payment, in most cases. Since it deals with all the debt,
it can be very beneficial.

 I already have most of my credit cards on a DMP but I still struggle every month.

> This is very common, and one of the major problems with DMP. Those programs, even the legitimate ones, do not deal with all the
financial problems, leaving you exposed. So, you should come into the office for a free initial consultation to look at your Ch. 13 option,
as well as that under 'straight' Ch. 7. It is possible that the Ch. 7 is even a better option. We will go over the pros and cons for each, to
help make an informed decision.

Best Regards,

John C. Colwell
Attorney at Law
Debt Relief Legal Clinic
www.debtclinic.com
drlc@debtclinic.com