Worst Case Scenario

[Superk88]

So I have put myself in a terrible situation, and also have not learned from my mistakes. Now I have a very hard battle to face. 4 years ago I did a Chapter 7. I rebounded very quickly. Last two years had an amazing job, everything was going great then life struck again. I'm not gonna bore anyone with what happend or anything but here is my situation. My pay right now is spuratic...anywhere between 3800 a month...and 5500 a month. I work in the Auto Industrie. I've spend all my savings pay down bills and right now I have nothing. I need to get my life straight because Me and My Fiance wanna buy a house in 5 years.
My debts are as follows
Trucks $26000 can't sell upsdie down
Bike #1 8500 trying to sell
Bike #2 6500 can't sell upside down.
Credit Cards are around 8800.
I have a loan through netcredit and Rise which are killing me. Combined they are 14k with extremely high interest rates.

Right now would a chapter 13 be in my best interest...I feel Like I almost need someone to take control of my finances for me.

[Anonymous]

You may have thought of these things but I'll throw them out in case you didnt or it sparks more ideas...

Can you and your fiance get a second job (even just doing cash jobs for family and friends) and put all that money into the highest interest debt?

Do either of you have good enough credit to do a debt consolidation to consolidate to a lower interest and also put the amount you're upside down on that second bike into the loan and sell the bike which would free up that payment amount and the insurance you pay on it.

Do you have any Bills at all that could be cut out... maybe television or other nonessential bills... no eating out... no getting your hair done on a regular basis... etc? Or look for ways to save on the essential Bills like insurance or moving into a cheaper place...

Maybe look into couponing (tons of very helpful sites on this) the items that are necessary like basic foods and hygiene and dont buy things that arent essential at the grocery store... youd be suprised how much you can save there.

Oh and DO A BUDGET.. stick with it... dont get discouraged if you have to make adjustments to the first few budgets you make.

Think of it like this... when you give up things... you had your fun and now you're going to sacrifice to get a house... what sacrafices is a house worth to you?

If you do BK...Make sure to research what it takes to get a house while in chapter 13 before you make a decision.

[Superk88]

Edit

[Anonymous]

Looks like you've covered my ideas.

Maybe someone else will chime in re chapter 13s because I am a chapt 7 so idk about 13.

Keep in mind when researching that if you plan on doing a va loan that might change people's advice on the situation.

[Superk88]

Yes we would be using her va loan. So that's could be a problem.

[Superk88]

In a chapter 13...could I surrender my bikes if I couldn't afford them.

Also I know that either a portion or a total of my unsecured will have to be paid back.

Also my truck I have only have had for a year...isn't there a rule that you must own a vehicle for at least 2 years before you can do a cram down or before you can reduce the payment.

[Superk88]

Anyone have experience with that?

[Anonymous]

Looks like you have roughly $63,800 in debt and you make $45,600 - $66,000 a year.
I can certainly see why you’re in a bad position.
Looking at it, most of your debt is secured. A Chapter 13 will let you repay those with no interest and let you keep the property but in most cases you have to pay them back 100% you may be able to “cram down” the upside-down cars and only pay back what they’re worth though. As for the unsecured debts, which is roughly $22,800, those are low priority debts in a Chapter 13 and you usually have to repay them but only at like 5-10 cents on the dollar.
It would probably be a 60 month plan for you and honestly, if you budget correctly, you might be able to clean this up faster than 60 months without trashing your credit a second time.
It’s your decision but I’m not really a fan of Chapter 13’s in general just because of how unforgiving they are.

[FireMedic1]

You are allowed to file a Chapter 13 any time after filing a Chapter 7. When you file your case, you and your attorney determine a reasonable amount of money that you can pay back to your creditors over a three- to five-year period. There are a couple of things to note in this scenario:

• If you file Chapter 13 within four years of filing a Chapter 7, you will not be able to discharge your remaining debts after the three- to five-year period. You can file Chapter 13 to protect yourself from repossessions or foreclosure, to keep creditors from suing you, keep your wages from being garnished, or keep levies off your bank account. This gives you a chance to reorganize your remaining debt and hopefully you will be in a better financial position at the end of the period.

1. If it has been at least four years since your Chapter 7 case was discharged, you can file Chapter 13 and have a very low monthly payment plan. After you complete the three- to five-year repayment period, you will be able to fully discharge all your remaining debts.

[Superk88]

It would probably be a 60 month plan for you and honestly, if you budget correctly, you might be able to clean this up faster than 60 months without trashing your credit a second time.
It’s your decision but I’m not really a fan of Chapter 13’s in general just because of how unforgiving they are. 

I've trying toind this but the only bad thing is right now my Job is Commision and it's constantly up and down. Never know how much I am going to make.