@xkaosx wrote:
So it has come to the point where I think I might file for Chap 13
I spoke to a bankruptcy lawyer and pretty much the only way to keep my car is to do the 13
I am about 4 months behind on my payments now- the repo people are looking for me
I have about 8k in credit card debt and back taxes and some other stuff
Im really wondering if this is the best option for me
I still owe about 14k on car and interest rate is 12%
I NEED my car to find a job. Its not really an option- buses and transportation here is just ridiculous and cannot be used for my commutes.
The only thing I would be keeping and paying off is my car-
He told me my rate would be reduced to about 5% so my payments would be about $260 (down from $376)
What will my credit report look like after i actually file?
I had about 8-10 cards and i was actually current and paying for about 2 years then i lost my job and basically havnt paid on the cards
for like 6-7 months now.
Should I include the credit cards in the 13 too and try to repair my credit? Most of the cards have been closed and i get
like 30 calls a day from collectors now.
Just lost i guess- dont really know what to do
Any advice would be appreciated
You're doing the smart thing in checking out your options.
One of the other options is to check in with a credit counseling service. Look for a non-profit that is well-behaved. I highly recommend this.
As for the CH 13 BK, it seems a shame to file when the debt load is relatively small (probably doesn't feel all that small to you....)
My understanding is that with a CH 13, you are not allowed to choose what you will and will not include. You must include all debts. Your attorney will give you the best input. I would also recommend meeting with a second attorney. It's always good to compare the info you receive from both, and find the one you feel most comfortable with.
The attorney (or attorneys if you check in with two) should give you a straightforward answer on what debts you can/should include.
BK 13 is also referred to as a "Wage Earners Plan" because you repay your debts through the BK (you pay the trustee and they distribute it to your debtors). If you don't have an income, are your attorneys able to qualify you for a CH 13?
One great (and surprisingly easy to understand) resource on CH 13 and CH 7 BK's is here: Bankruptcy Basics
