Chapter 13

[Myhearts]

Hey All,

Hearts here. Looks like we are gonna have to do a 13.  Can someone explain exactly how that works and how the payments are determined on this plan?

Thanks

Hearts

[Tuscani]

See:

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html

[Anonymous]

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@Myhearts wrote:

Hey All,

Hearts here. Looks like we are gonna have to do a 13.  Can someone explain exactly how that works and how the payments are determined on this plan?

Thanks

Hearts

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I am deeply sorry that it has come to this. I have gone through it myself after my illness and 90k+ debt crippled me and I saw no other choice. I have been making good strides coming back from it but it has been difficult and a tough reminder. So in advance, I know how you feel going into it and what you will feel coming out the other end. That being said, I went through it when the law was different, it has since changed but from what I know a few things have stayed the same.

You need to report on your filing anything and everything you want to have BK protection on, this means if its not included in your BK file, it won't help you later to say to them that you declared BK because it won't discharge them from coming after you. Not all debt is discharged anymore, in some cases they still are, in some cases they are restructured and you have to pay them off at a fixed interval until gone, in some cases they are reduced and in the cases of student loans, tax liens and child support, they still remain untouchable and must be owned for life and paid back in full. You can do it yourself with alot of self help sites that provide you the form or even help you fill it out and you can also go with attorneys which are limited in their fees so you don't get hosed.

If you need anything more specific, feel free to PM me and I will give you whatever information I can but in the meantime check out the government website on bankruptcy that was provided by another user and check out this site after or before, it will help you deal with aspects of the procedure and how to recover from it. http://www.afterbankruptcy.org/ and you can check out this site for some self help forms and some limited assistance to do it yourself if you want to avoid asking an attorney to do it. Get the forms here: http://www.uscourtforms.com/ and if you want some assistance, use this:  https://www.legalzoom.com/bankruptcy/bankruptcy-overview.html

Hope this all helps get you through some tough times ahead.

[Myhearts]

Thanks Tuscani and Guardian,

I have been reading a lot on the bankruptcy thread here, guess I just didn't want to do it.  I was reading about a means test that they do now to determine payment and all that.  I am concerned about my home and with us being behind on the payments will they be lowered and the arrears broken up over a period of time for us to pay it back and get caught up?  I read on a law website last night that they will break the arrears up over 48 months and then they will have the property appraised and a new loan will be created based on the new value of the home.  Have this been anyone's experience?

Thanks

Hearts

[Anonymous]

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@Myhearts wrote:

Thanks Tuscani and Guardian,

I have been reading a lot on the bankruptcy thread here, guess I just didn't want to do it.  I was reading about a means test that they do now to determine payment and all that.  I am concerned about my home and with us being behind on the payments will they be lowered and the arrears broken up over a period of time for us to pay it back and get caught up?  I read on a law website last night that they will break the arrears up over 48 months and then they will have the property appraised and a new loan will be created based on the new value of the home.  Have this been anyone's experience?

Thanks

Hearts

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Generally your home is a protected asset during BK and its not an easy decision to reach. You really need to speak to a financial advisor that is reputable and you TRUST to go over your financials with a fine tooth comb and then decide what is in your best interest. There is no one size fits all anymore and I am very sorry for the situation you are facing.

[granny031350]

the arrearage is put into the plan and then usually the mortgage payments are continued outside of the plan.  The problems arise however when the mortgage company doesn't separate the 2 and then apply the monies from the trustee and from you to the right places.  When mortgages are included, you need to stay on top of the fees that mortgage companies charge as well. 

If your house is really an issue, you might want to reconsider just letting it go and renting for a couple of years until you get on your feet again. 

I know it is a tough decision to make but sometimes reality just plain bites.  Think of your health and your family.  The house is just a building. 

When one decides to file bk, it is a business decision.  Take the emotions out of it.  Chapter 13 is a big lifestyle change and takes committment to make it to the end.

GL

[Anonymous]

Agreed, it is a long committment and a lifestyle change as it hangs over you for a long time and with it goes everything you have accomplished to that point. I can say life was good and future was nice and bright before the BK and after that all went poof in a blink and it has been years but still the lingering damage hurts me and keeps me from being anywhere near where I was before it.