chapter 13 questions

[Anonymous]

Hi, I am about to speak to a lawyer about filing chapter 13. I am behind on my house so it is my only option. I had a couple of questions.  How hard is the process such as filling out paper work etc. and if you have savings do you have to pay that to the trustee or can you keep it. I have a medical procedure this summer and the  money is for that.  

[Anonymous]

Can I ask why you would want to file CH13 & not CH7? I used to think CH13 was a more honorable way of paying your debts, but you get hit just as hard, if not worse, in the credit department because the 13 drags out over a longer time period, where a 7 is done rather quickly. Your credit scores will be affected much longer with the 13.

[Anonymous]

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@Anonymous wrote:

Hi, I am about to speak to a lawyer about filing chapter 13. I am behind on my house so it is my only option. I had a couple of questions.  How hard is the process such as filling out paper work etc. and if you have savings do you have to pay that to the trustee or can you keep it. I have a medical procedure this summer and the  money is for that.  

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How far behind are you?  Is there nothing you can do to work it out?  Is that your only debt?

Anyway, to answer your question, it wasnt hard at all.  And from what I remember (it was 2010), painless.  I had some money in savings, but not a lot at the time.  They didnt take any of that.  The BK attorney factored his costs over and above what I paid up front into payments right along with the others listed in the 13.  So the answer is, I kept it.  The attorney WILL ask you what you have though.  I even disclosed money I had socked away in a jar at home.

[Anonymous]

Hi AlexForever,

I would suggest talk to a lawyer and start with a Chapter 7.  They will do a means test and see if you qualify for CH 7.  If you fail the means test CH 13 might be your only option.  You are able to keep your secure property with both 7 and 13, you just need to do a reaffimation with those companies.  If you can get a 7 do it, 13 stinks cause you have to pay back a certain amount over 3 to 5 years and the payment amount is basically all of your disposable income.

At the end of the day, put all your bills and current status of them down on paper and go talk to a few lawyers (hopefully you can get a good one recommended to you by someone).  Listen to them, ask questions, and figure out what works best for you.

As for your question about the money going to the trustee, include your situation when talking to the lawyer.  The more honest you are the better.

Good luck

[Anonymous]

Have you contacted your morgtage company and asked about loan modification?  I was once almost a full year behind in payments and was able to work with the home preservation specialists to modify my home loan.  Just a thought if that is your only reason for considering bankruptcy.  

[Anonymous]

it is not my only reason, my Mortgage company is being horrible I have a couple of credit cards with pending lawsuits and behind on car and student loansns. It has been a rough year. I have the income to pay now I just need the time, I am hopeing hte lawyer can giv eme some options.

[Anonymous]

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@Anonymous wrote:

it is not my only reason, my Mortgage company is being horrible I have a couple of credit cards with pending lawsuits and behind on car and student loansns. It has been a rough year. I have the income to pay now I just need the time, I am hopeing hte lawyer can giv eme some options.

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Just to let you know student loans cannot be included in a bankruptcy.  But if you can get the other stuff included that should help you.

As others have said talk to a lawyer and see what they say.

Sadly I was in the same boat as you.  It's really bad when you see your house going up for auction on a certain day in the paper :\

The lawyer was able to stop this for me.

[Anonymous]

I currently have a notice of default, so the cahpter 13 should help me, though I have just contacted a housing counselor, more to slow things down than anything else.