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Ch. 13 - Should we file?

Skye12329
Valued Contributor

Ch. 13 - Should we file?

My husband and I are debating on filing for ch. 13. long story short husband, lost his job in March. Got a new one and then got injured on the job but needs to cut hours to make medical appointments now. On top of that we needed to take care of my sister who has mental disorders. It's just been a battle recently. Had to use our cards to take care of her and us.

This month we've been struggling a lot and it's not getting better. Our mortgage was paid 15 days late. Not a late mark since it's less than 30. Our electricity is now on the verge of shut off. I can't pay my sister's rent (her social security benefits got cut, so now we're trying to get that resolved.) And we can't take her in because she has medical needs that the staff help her with.

We refinanced one of our cars for a lower monthly payment. We can't refinance the other because we were denied with Navy and our other credit union.

Should we file for ch. 13? We want to keep our house and cars. I don't know what else to do at this point. And is 13 the one that allows us to keep the house?

What if the payment plan isn't low enough for us to handle?

As for stats we don't really qualify for anything. I have 100% payment history but due to hight debt ratio. My scores are ranging between 660-670. Utilization is about 100%. I have tried applying for HELOC and Home equity loan to consolidate. It was denied due to DTI and credit debt.
Aaoa is 5 years
Total accounts - too many to count with student loans. Open accounts is basically what's in my signature. And husband's accounts which are a few cards but used.
NFCU Flagship: 15K
NFCU Amex: 7.5K
BOA Cash Rewards: 500
Affinity Plus CU Premier: 7.5k
Message 1 of 5
4 REPLIES 4
BronsonsBlooms
New Visitor

Re: Ch. 13 - Should we file?

You may qualify for Chapter 7.  In Chapter 7 you also get to keep cars and house.  Most Bankruptcy attorneys will meet with you or talk to you over the phone without charge.  The amount they get paid is usually very little as set by law.  In Chapter 7 you do not make monthly payments.  In Chapter 7 you also have car loans ONLY available during a chapter 7 in which you will only owe on the loan what the car is worth.  It will be higher interest but less money overall as can knock off thousands.  Call some attorneys.  Bankruptcy is the best kept secret.  It is a common myth that they take all your stuff.    

Message 2 of 5
JAG73
Moderator Emerita

Re: Ch. 13 - Should we file?

Make an appointment with a BK attorney. They will be able to tell you what you qualify for 7 vs 13, as well as give you an estimate of your payments if you go the 13 route. 

As a former Ch13, I can tell you the payments are affordable. The judge will not sign off if your income doesn’t cover the payments. 

I can tell you’re stressed, try to make the appointment as soon as possible to find out your options. It’ll be a relief to get the weight off. 

Good luck and keep us posted. 

Got some pruning to do... No more new cards!
Message 3 of 5
Skye12329
Valued Contributor

Re: Ch. 13 - Should we file?

So last night would be day 30 on my Chase cards that are closed. I scheduled payment on day 29. Should I cancel it to recoup the money instead? Or pay them? I've never had a late remark on my credit before. But I called and attorney and we're going to be proceeding with the process.
NFCU Flagship: 15K
NFCU Amex: 7.5K
BOA Cash Rewards: 500
Affinity Plus CU Premier: 7.5k
Message 4 of 5
Cpt13nismo
Established Member

Re: Ch. 13 - Should we file?

if you are going to file, stop paying all unsecurred debt and save that cash for attorney fees.

Message 5 of 5
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