Three questions about a Chapter 13

Anonymous · ‎11-20-2009

1. I have a charged off bank account that I am in a payment plan with. They gave me a new account as I pay. Will they close my account?

2. What about unsecured debts like Payday loans. I have a couple of those and a Citibank loan I would like to include in the 13 or will I have to pay them along side of my payment to the Trustee.

3. What determines how long you will be in the 13. Is it the amount you owe or is it other factors?

Anonymous · ‎11-20-2009

You will have to disclose and include ALL debts.

Length of payments and amounts are based upon your income and the amount of debt. But regardless of amount of debt, it is limited by income.

Lastly, you are prohibited from seeking or incurring any new credit during the BK 13 unless you submit and receive approval from the court.

Anonymous · ‎11-21-2009

I don't think I explained my second question well enough. Perhaps I have to pay 250 per month as part of my BK13 to the trustee. I have a couple unsecured debts that are current (say about $80 per month). Will I have to pay $80 a month along with the Trustees $250. Or will everything just get bunched up into the BK payment plan.

The first question is will my new bank account get closed.

Anonymous · ‎11-23-2009

No, I did answer.

You cannot keep these "current accounts" outside of BK. You must include them and the court will decide what they receive out of your payment. If you fail to disclose and continue to pay "$80 per month" to them, then your BK could get dismissed (thrown out) later.

BK requires you to include all debt. BK 7 can provide you the opportunity to reaffirm some debt. CH13 does not, it is totally at the discretion of the BK. I understand you want to maintain the good accounts....but unfortunately once you are going BK13, you have no choice in the matter.

I have a friend that was forced into BK13 due to federal tax liens (big ones). He was forced to include his current and in good standing accounts who got NOTHING! The court dischared all those debts and only the IRS is getting payments over the 5 years. He was precluded from paying anything to the other creditor. And if he does attempt to pay or settle them, the BK can be dismissed.

Sorry to be the bearer of bad news

Good luck.

Anonymous · ‎11-24-2009

Thanks for clearing it up. And this is not bad news. I think having all of this included in the BK13 will help me beter afford to pay for the BK. I hope to be able to come out of this 3-5 years in a pretty good position. I am currently trying to come up with a list of all our debts.

Anonymous · ‎11-24-2009

And that is exactly what BK is designed to do. Take all your debt and put it into a manageable amount under 13, or discharged under 7 to give you a new lease on life.

Those who "hide debt" really shoot themselves in the foot and rob themselves of the true benefits of BK once they have to go that route. Hidden debts have caused people to miss BK payments and then gotten the BK dismissed and were worse off than square 1.

MyFico_704 · ‎12-01-2009

So in either case 7 or 13, it would be a good idea to pull a credit report on yourself to make sure you don't miss anything? I myself am still debating which one I'll do, but off the top of my head I can only remember 2 credit cards and 2 revolving. I don't know what else I have out. Or who knows...maybe someone opened a cc in my name that I don't know about...?

So pulling a credit report is a good idea in hopes of seeing all open/active accounts.

Question - I cosigned a student loan for my niece like 3 years ago and she has been paying every month on time. Do I have to include this if I file ch. 13?

Anonymous · ‎12-01-2009

Yes, look at old CR's, collection notices, account statements, etc.

If you have any outstanding debt, liability, potential liability (something you might be sued for in the future) you need to disclose and IIB. This way you get a clean start.