@Shooting-For-800 wrote:Income is the big question.
How much do you make, are you married.
chapter 7 is very specific on not giving relief to thse who would qualify for a chapter 13.
chapter 13 can realy suck. Keyword is can.
Suck as in having less than $50 expendable cash left over every week? Yeah I did that for 4 years.
I filed Ch 13 on an unemployment income of about $17k back in 2009 when a resident of GA. I was laid off for an extended period of over a year from my $35k job and my unemployment was $330 a week... the state maximum. Did my attorney steer me in the wrong direction? I don't think so. Why would he? He got his $2500 fee spread out over a year of Ch 13 payments. If he had directed me to Ch 7 he'd have gotten paid in a lump sum.
That being said, I'm assuming I didn't pass the means test for Ch 7 despite the fact the only asset I had at the time of filing was my car. It was 6+ years ago now and is water under the bridge. At the time I knew little about how the BK system worked.
Still, I'd love to know the ins and outs of this means test that determines whether a person can:
a) wipe out all their debt in a Ch 7 and immediately begin piling up new debt after discharge
or
b) get stuck paying a Ch 13 payment for 3-5 years while living the poor life on a limited amount of expendable cash on a week to week basis.
Having to make a monthly payment every month of virtually all my expendable cash was an extreme hardship. Still, I made it and in just a few months my reports will be free and clear of all the Ch 13 derogs and I'm expecting scores in the 750+ range.
I still don't agree with how the system works... if I could afford to pay back debt in a Ch 13 that had me pinching pennies on a weekly basis... so can everyone else. It doesn't matter if it's $10 a week or $100 a week... you can pay back debt for 4 years like I did... THEN start rebuilding your credit.
If I can do it, so you can you.
My $.02 
BTW... I've since moved to WA and doubled my income... and the unemployment here is double as well should I ever need it. WA was recently listed as the #2 best state to make a living... which is more than I can say for the south.
@TRC_WA wrote:
I still don't agree with how the system works... if I could afford to pay back debt in a Ch 13 that had me pinching pennies on a weekly basis... so can everyone else. It doesn't matter if it's $10 a week or $100 a week... you can pay back debt for 4 years like I did... THEN start rebuilding your credit.
If I can do it, so you can you.
My $.02
BTW... I've since moved to WA and doubled my income... and the unemployment here is double as well should I ever need it. WA was recently listed as the #2 best state to make a living... which is more than I can say for the south.
While I can empathize... don't judge the footsteps you haven't walked in. When I filed Chapter 7, I didn't have $10 a month to squeak by on, let alone make payments to a trustee.
OP, I think your plan to look at consolidation first is a good one, but don't be afraid to make a harder decision if your lawyer recommends it. My only regret with my BK was trying to make good much longer than I could.
@Anonymous wrote:
While I can empathize... don't judge the footsteps you haven't walked in. When I filed Chapter 7, I didn't have $10 a month to squeak by on, let alone make payments to a trustee.
But you could immediately open new credit accounts to start rebuilding I'm sure despite not having an extra $10 a month. 
That's what I find most humorous... the people who said "I had no money I had to file Ch 7" and then 2 years later they are like "I filed Ch 7 and look at me now! It's been 2 years and I have a 700 score and $100k in new credit." I can quote about 4 people on these very forums who have said that...
BTW... I have walked in those footsteps of not having any money. I did it for 4 years of Ch 13 payments. Everything that was said earlier in this thread about how a Ch 13 can really suck is 100% accurate... you have no money to save because you are paying the trustee.
As said I'd love to know the ins and outs of the means test because the ones who get the shaft are the ones who file Ch 13.
It's a nightmare I'll never go through again... I can only wish I had gotten off easy with a Ch 7.
That's the end of my rant... LOL
@TRC_WA wrote:
@Anonymous wrote:
While I can empathize... don't judge the footsteps you haven't walked in. When I filed Chapter 7, I didn't have $10 a month to squeak by on, let alone make payments to a trustee.
But you could immediately open new credit accounts to start rebuilding I'm sure despite not having an extra $10 a month.
That's what I find most humorous... the people who said "I had no money I had to file Ch 7" and then 2 years later they are like "I filed Ch 7 and look at me now! It's been 2 years and I have a 700 score and $100k in new credit." I can quote about 4 people on these very forums who have said that...
BTW... I have walked in those footsteps of not having any money. I did it for 4 years of Ch 13 payments. Everything that was said earlier in this thread about how a Ch 13 can really suck is 100% accurate... you have no money to save because you are paying the trustee.
As said I'd love to know the ins and outs of the means test because the ones who get the shaft are the ones who file Ch 13.
It's a nightmare I'll never go through again... I can only wish I had gotten off easy with a Ch 7.
That's the end of my rant... LOL
You just go ahead thinking Ch7s have it easy. It's more satisfying, I'm sure.
Personally, I think any bankruptcy sucks. Sometimes, however, it is the best option.
I agree with the last 2 posts. 
Everyone has a reason for what they do. In my case I had paid all of my bills on time for many years. The credit card companies easily recouped any losses that they took when I filed Chapt 7 in all of the interest that I had prev paid during that time. I did not feel guilty about filing Chapt 7, I simply had no choice at the time. Chapt 13 was not an option. I did hire an attny who specialized in handling BK cases. I would never judge anyone for doing things differently than what I did. It is a personal decision based on many variables.
