It's a subject of much debate and I for one can go on and on about it...
The 13 can be up to 5 years... which mine was. I filed April 2009. I made monthly payments for 3 years and 10 months... then paid it off early with a lump sum payment of roughly $2000 in February 2013. I was discharged in May 2013.
My scores at the time were 630's... considerably higher than someone fresh out of a Ch 7 discharge. I started my rebuild with a $1000 Capital One card and haven't looked back... building my profile to over $60k in unsecured CCs in 2 years. I avoided secured cards and I avoided garbage lenders like Credit One and First Premier.
My FICO scores as of today:
EQ: 678
EX: 687
TU: 665
My 7 year date is April 2016. Early exclusion (6 months TU, 3 months EQ/EX) should have everything falling off my TU report in Sept/October 2015... EQ and EX should be clear Jan 2016. Once I reach those dates my scores should be well over 700... I'm expecting the 750 ballpark across the board.
Had I filed a Ch 7 I'd have been discharged in Fall 2009... and probably would have a similar profile to what I have now. The difference is though the bankruptcy public record wouldn't be falling off my report by April 2016... it would be April 2019 because Ch 7 PR stays for 10 years... versus 7 for a Ch 13.
So that is my consolation prize for making payments for nearly 4 years. I have had loan officers at my CU tell me they favor a Ch 13 filing over a Ch 7 for obvious reasons (paying back versus not paying back) but in the end I think most in the banking industry look at them the same.
I'm of the opinion that filing Ch 13 should be mandatory for all non-medical debt. You'll never convince me that someone who runs up tens of thousands of dollars in credit card and other related debt can't spend the time paying it back in whole or in part in a Ch 13 over 3-5 years.
"So let me get this straight... you couldn't pay back $50k in debt last year but now you have $50k in new credit cards?"
Only in America right?
Why did I file? I lost my job in the recession. Life happened. Still had to pay it back.
Anyway, no regrets here. I suppose they both have their perks... and in a matter of months I will reach the end of my 7 year marathon and will have FICO scores that match the efforts I've made over the last 6+ years. Much better than having an ugly public record on my reports for 3 more years. 
@TRC_WA wrote:
I'm of the opinion that filing Ch 13 should be mandatory for all non-medical debt.
I just have to say that I am of the opinion that medical debt/collections should NOT be on your reports at all (paid or not). And even if they were to appear, it should only be for UNPAID ones, if they're paid, they should disappear immediately.
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@Callandra wrote:
@TRC_WA wrote:
I'm of the opinion that filing Ch 13 should be mandatory for all non-medical debt.
I just have to say that I am of the opinion that medical debt/collections should NOT be on your reports at all (paid or not). And even if they were to appear, it should only be for UNPAID ones, if they're paid, they should disappear immediately.
I agree. Healthcare on a CR wasn't my point though... my point was that healthcare related expenses should be all that is dischargeable in a Ch 7...
... not maxxing out $50k in credit cards to wipe it all out and have $50k in new credit cards a year later.
Wasn't there a time when student loan debt was dischargeable?
I believe so... at least until all the doctors and lawyers started filing bankruptcy shortly after graduation and laws were changed.
@djnikki1 wrote:
@TRC_WA wrote:
I'm of the opinion that filing Ch 13 should be mandatory for all non-medical debt. You'll never convince me that someone who runs up tens of thousands of dollars in credit card and other related debt can't spend the time paying it back in whole or in part in a Ch 13 over 3-5 years.
"So let me get this straight... you couldn't pay back $50k in debt last year but now you have $50k in new credit cards?"
Sorry this seems rather judgy if you do not know the person's situation on why they had to file. Great that you were in a financial position to make payments, but other's are not.
Not interested in a formal debate... the OP asked a question and I gave my opinion.
As for your opinion... my apologies for not agreeing.
A person can rack up $50k in credit card debt... wipe it all out... and have $50k in new credit cards inside of a year or two. You don't see a problem with that? I don't buy the "not in a position to make payments" either... I made my Ch 13 payments and literally had $40 left some paydays.
A person can't afford to make payments but can instead use their new credit cards? Nope... I don't buy it. Everyone can make payments... even if it's $10 a week.
Like I said... only in America.
@TRC_WA wrote:Not interested in a formal debate... the OP asked a question and I gave my opinion.
As for your opinion... my apologies for not agreeing.
A person can rack up $50k in credit card debt... wipe it all out... and have $50k in new credit cards inside of a year or two. You don't see a problem with that? I don't buy the "not in a position to make payments" either... I made my Ch 13 payments and literally had $40 left some paydays.
A person can't afford to make payments but can instead use their new credit cards? Nope... I don't buy it. Everyone can make payments... even if it's $10 a week.
Like I said... only in America.
Not trying to start a formal debate either, I just thought it was a brass and judgy comment. I did not rack of $50k in credit card debt, more like $20k in personal loans to pay for my children's autism, ot and speech therapy and Tricare premiums because their bio bailed. Everyone's situation is different and some, like me, really hit rock bottom because of personal reasons beyond their control. 
OP: I originally filed Chapter 13, but switched to a Chapter 7 because the payments the trustee was making was more than was I was paying before. I was paying $450 every month and the trustee wanted $575 every month. I converted to a Chapter 7 because it was the best option for me and my children. I turned in my vehicle and got a beater car. I think if you have the money and resrouces to do a Chapter 13, go for it. But if you are financially strapped and have other expenses, such as medical, Chapter 7 was the best route for me. Everyone is different and has to do which one will work for them.
@djnikki1 wrote:
Not trying to start a formal debate either, I just thought it was a brass and judgy comment. I did not rack of $50k in credit card debt, more like $20k in personal loans to pay for my children's autism, ot and speech therapy and Tricare premiums because their bio bailed. Everyone's situation is different and some, like me, really hit rock bottom because of personal reasons beyond their control.
I think if you have the money and resrouces to do a Chapter 13, go for it.
Same here... lost my job in the recession... and still had to pay it back.
I don't know if I had the money and resources for a Ch 13 though... my budget allowed me to pay my bills and have less than $200 expendable cash per month.
$200.
For nearly 4 years. Paid cash for everything. Moved across the country from GA to WA for a job and had to borrow $4k from family to do it. I most definitely wasn't hiding in a corner feeling sorry for myself because life happened.
My opinion isn't personal... at all. I have issues with the system. I think Ch 7 is far too easy compared to what I had to do for 4 years.
Best wishes.
BTW,
For those higher up that are reading this I answered the OP's question and gave my opinion.
I'm bowing out of this thread now. No need to ramble on... I'm too busy counting down the months till everything falls off my CRs and I'm in the 700 club.
