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Chapter 13 Questions...

New Member

Chapter 13 Questions...

On 11/30/2017 I decided to file Chapter 13. My list of creditors include federal and state taxes, my vehicle and $12k in credit card debt. I am on a 3 year plan with a meeting of the creditors scheduled for Jan 3rd 2018. In the meantime what should I be doing to clean up my report. I have read several threads but most seem to cater towards Chapter 7 rather than Chapter 13. As mention above, I have 12k in credit card debt. All accounts are now with a collection agency.

Is it possible to work with the collection agency to remove the tradelines since I am in bankruptcy? 

Should I dispute accounts stating included in bankrutpcy? 

Any feedback would be great, thanks! 

Message 1 of 8
7 REPLIES
Valued Member

Re: Chapter 13 Questions...

I just finished a 5 year Chp 13 including IRS back taxes.  If you aren't keeping your vehicle or credit cards, then there is nothing to do.  We actually kept our vehicles and did modifications with our credit union to lower our payments prior to filing.  I'm guessing that the trustee will make you close all credit cards regardless.  Once you file and are put on a plan, focus on making sure that all credit report accounts reflect that they were included in BK.  Your scores will tank at first, then slowly come back up.  No new debt is allowed during your plan including secured cards so plan on paying everything by debit card.  I'm surprised that they let you only do 3 years with taxes involved.  We could have done a Chp 7 except the IRS wanted as much as possible or they would not release us personally so we agreed to a 5 year and full release of any remaining balance.  It wasn't so bad and now we are less than 2 years away from it dropping off our reports.  Between the negative equity in our home and the back taxes, we shed $150,000 in debt.  We are one month out of the Chp 13 and our scores are steadily climbing.  It will still take 2 years to get back into the 700's.

Oct 2017 Scores MyFICO FICO 8

Equifax 633
TU 582 (Suck it TU)
Experian 615


Dec 2017 Scores MYFICO 8
Equifax 666
TU 631
Experian 651

Message 2 of 8
New Member

Re: Chapter 13 Questions...

My back taxes are around $5700 and my car $3600. I believe my low income is also a large part of why I was put on the 3 year plan. All credit cards were closed due to non payment. My biggest dilemma will be dealing with the collection agency. I have so many collection tradelines because of the non payment and I'd like them removed. 

 

Once you filed, you updated all accounts to included in bankrutpcy? 

Message 3 of 8
Valued Member

Re: Chapter 13 Questions...

Once you file, all accounts should reflect IIB(included in bankruptcy) but it may take a few months.  The collection calls, letters, and garnishments will stop pretty much immediately.  If you still get a call, politely let them know that their account has been included in your recent BK.  I don't remember getting one collection letter or call once we filed.  Our reports also showed a federal tax lien but that was also removed during BK.  The only corrections we had to make to our reports was to change a couple of accounts to show IIB and update our address and employer info.  We were also able to obtain a new car loan with trustee permission about a year before we were discharged.  75% of Chp 13 cases get dismissed because the filer did not follow the rules or did not make their payments.  Don't be one of those idiots because once you get dismissed, all the creditors are going to come at you and garnish everything they can get.  If you have to refile, you have to start over and pay again.  

Oct 2017 Scores MyFICO FICO 8

Equifax 633
TU 582 (Suck it TU)
Experian 615


Dec 2017 Scores MYFICO 8
Equifax 666
TU 631
Experian 651

Message 4 of 8
New Member

Re: Chapter 13 Questions...

Thank you so much for your advice. I will definitely follow the rules. I have a state lien on my credit report, I am interested to know if this will be removed. Again, thank you so much! 

Message 5 of 8
Valued Member

Re: Chapter 13 Questions...

Speak with your attorney.  Make sure that every single debt is listed and will be satisfied at the end of 36 months.

Oct 2017 Scores MyFICO FICO 8

Equifax 633
TU 582 (Suck it TU)
Experian 615


Dec 2017 Scores MYFICO 8
Equifax 666
TU 631
Experian 651

Message 6 of 8
Contributor

Re: Chapter 13 Questions...


tnvols wrote:

Speak with your attorney.  Make sure that every single debt is listed and will be satisfied at the end of 36 months.


I agre with speak to your attorney and make sure every single debt is listed.   I disagree with will be satisfied at th end of 36 months.  At the end of your plan whatever is left will be discharged, just as if you had filed a chapter 7.    If you have the ability to have everything satisfied great, but if you don't then the turstee will determine how your creditors are paid and discharge whatever is left at the end. 


Gardening until March 2018.
Message 7 of 8
New Member

Re: Chapter 13 Questions...

Thank you so much for your feedback. I will definitely check with my attorney.

Message 8 of 8