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Chapter 7 or Chapter 13

tag
2009
New Contributor

Chapter 7 or Chapter 13

Hello! I have been reading these boards on a daily basis. I'm going threw a divorce and had to move out on my own. I have been trying to keep up with the bills, but I now have about 15-17 credit cards that are now charged off. I can't afford daily living and pay those cards. Now, I am 2 payments behind on my car with navy federal and now the credit card with them is also behind, but hasn't been charged off. I need to keep my car so I can get to work. I wanted to file CH 7, but I'm finding it hard to come up with the money to file and pay the attorney. Also, I need to find money to catch the car up just to file CH 7. So, now I'm wondering if I should just file CH 13 so that I can keep my car and just add the behind payments into CH 13? I don't know what to do. I'm thinking that CH 13 would be cheaper to file than CH 7. With the cards been charged off will  I still have to repay those under the CH 13 repayment plan? Also, I'm wondering how much the payment would be monthly under CH 13? I need help any advice would be greatly appreciated. My scores are now in the 460's so I don't think BK would hurt them anymore.

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Anonymous
Not applicable

Re: Chapter 7 or Chapter 13

If it were me (and I am 2 years into a 5 year Chapter 13), I would get the car current and file Chapter 7 -- depending on your income and be done with it. You can stretch your filing fees out 3 months so you don't have to come up with the whole $300 or whatever it is right when you file.

 

 With a Chapter 13 you are stuck in it for 3-5 years (again depending on your income) and I do mean stuck - it's an act of congress if you need a new car or anything on credit.   I filed mine pro se and filed my brother's ex-wife's chapter 7 for her.  No, I'm not a paralegal, I do medical billing.   I got a good book from the library and read it and did tons of internet research.  Also some districts have lots of information on their websites as to local rules (mine, not so much). 

 

If we could have filed a Chapter 7, I certainly would have but the debts we had we not dischargable anyway (child support, taxes, etc) so we would have had to pay them regardless.  That's the ONLY reason we filed 13.

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