What happens in Chapter 13 Bankruptcy? Debt Settlement?

My husband and I are at the beginning stages of considering Chapter 13 bankruptcy, but are really confused about what will happen.

We owe about $ 45,000 in credit card debt, $ 25,000 in auto loans, and $ 45,000 in student loan debt. We are upside down on our house, about $ 40,000 under what we bought it for 2 years ago. The loan amount was $ 1800 per month, but due to increases in property taxes the monthly amount is now $ 2150.

Last year we signed up for Consumer Credit Counseling and was paying our creditors on time. Money was tight but we were making payments. However, when our house payment went up we had to start choosing which bills to pay. My husband cannot get more overtime and I am facing possible work furlough.

We withdrew from the CCCS program and have not paid our credit cards in about 4 months. We contacted the companies to attempt settle the debt. What are the odds that they will settle with us? If not, are we eligible for Ch. 13, and if so, what will happen in that process? Do all our debts go away or will we have to do a payment plan–and is it for the full amount or a reduced amount? Will we be able to keep our house, car, etc?

Thanks for any help, it is appreciated!
I heard there was a difference between Ch 7 and Ch 13, where your debts are forgiven in 7 but not 13. Since my husband and I make over $ 100K a year I am worried we won’t qualify for 7.

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