Yes. If you make too much money to go bankrupt on your payday loans and bad auto loans, you can still control the interest rate you’re paying back in a chapter 13. (Technically, you don’t make too much money to file bankruptcy; you just make too much money to file a simple chapter 7 case).
If your income is too high to qualify for a chapter 7 bankruptcy, then you will most likely be filing a chapter 13 case. You will be controlling your repayment of your creditors at 2% interest over 60 months, instead of the 29% interest credit cards or the 500% interest payday loans. (Your car loans will be at about 5%, give or take half a point depending on the market).
Today, I received a call from a potential client who wanted to file a chapter 7 on about $20,000 in payday loans and medical bills and a $20,000 car loan she was behind on. However, when I reviewed her income, she was making about $30,000 above the median income for her household size, and even with her expenses/health insurance/taxes/etc., she did not qualify for a chapter 7.
As we spoke a little more, I realized that she could file a chapter 13. In her bankruptcy, her car and creditors would be paid back at about $700 a month for 5 years. Prior to this proposed bankruptcy, her car payment alone was $600 a month, not counting the horrendous payday loan payments every two weeks (interest only, not principal).
This was definitely not as good as a chapter 7, but it controlled her debt repayment, dropped the interest rate by 498%, and let her get her life back under control.