I am active duty and was stationed in San Diego and we dropped to one income and run up an extreme amount of debt (45,000).
I am looking at options and wanted to file Chapter 13 but is it true that they take all of your disposable income? And if so is a debt reduction company a better option?
It is not true that all of your disposable income is taken. I would urge you to meet with a local bankruptcy attorney and go in and discuss your situation so you can get an actual idea about what your payment would be. With such a large reduction in income and debt I can’t see how a debt reduction company would be a path worth pursuing.