Ok Morpho...didn't take you long to establish that you are a pompous ass. Look businesses use bankruptcy all the time to liquidate their debts and associated problems. Consumers have the same right, if they desire. I work in health care and have seen may people wiped out because of massive medical debts and their only hope is bankruptcy. Other people lose good paying jobs and can never fully recover the setback.
And sure some folks use credit cards irresponsibly and should work to pay off their debts - but the bankruptcy option is still their legal right.
I started this thread to let people know that, while Ch 13 can stop the harrassment of creditors and releave some stress, it is a difficult journey and most people fail to complete it. They need to be careful when considering this option and they can always try privately negotiating with creditors. I know because I am doing it right now and it's working.
Good luck with your self-righteous attitude.
I successfully completed a chapter 13. While it sucked, it wasn't too hard. Just had to stick to a budget.
Wow! Chill guys. It isnt easy to file either one. People freak out, get nervous, lose sleep and its a hit to their mojo. Been there done that. Its embarrasing and so many other emotions. I am not a community leader nor Mod. But lets be civil and leave the snark out from one community member to another.
If income is too high and you have enough disposable income to live on, you are basically forced into a chapter 13. Trust me, NO ONE wants a 13. Some choose a 13 so they can keep their cars, home (or so they can try to get a modification with their lender), owe student loans which cannot be discharged in any bankruptcy, etc. My boyfriend is about to receive his discharge on his 100% pay-back Chapter 13 plan any day now! 100% plans are relatively rare so it sucks to pay it all back but it's a good feeling. It's been a long 4 years but I am so proud of him for not only completing his 13, but also paying back the 100% (less than 10% of 100% Chapter 13 plans actually make it all the way through to discharge). If he could have chosen a 7, trust me, he would have in a heartbeat. His car was worth way more than our state allows for the car exemption, he makes $80,000 a year with no kids. Even with him paying our mortgage (his name is not on it...only mine), his attorney still couldn't get his expenses up high enough to get him into a cheaper % plan or a chapter 7. He has been getting his chapter 13 payments deducted out of his paychecks (over $800 a month) for a little over 4 years. It's been a long road but it's been worth it to get all that weight off his shoulders.
I guess my point is, there are "dangers" (the word I would use is consequences) with BOTH types of bankruptcies. And the trustee controls 7's as well....you just aren't making any payments to him/her unless you are a chapter 7 with assets case (story for another day). Anyways, this is my take on your post. Unless there is a good reason to file a 13 (many have been mentioned already and I mentioned some as well), no one wants to be in one for those 3-5 years. If your financial circumstances change, your plan can be modified or you may even be able to convert it to a 7. Really these are a case by case basis and the choice is between the debtor and their attorney.