BK Ch. 7 vs. Ch. 13

[NoMoreE46]

Is this just me???

I always confuse a Chapter 7's (falling off in ten years)  versus a Chapter 13's (in seven years.)

I wrongly associate the '7' from a Chapter 7 to seven years.  Worse, I incorrectly think that a Chapter 13 filing takes 13 years to fall off.

Therefore, I feel that the BK Chapters ought to be revised to match the time frames for my logic.

Thus, a Chapter 7 should be renamed  as Chapter 10 as it takes ten years to drop.

A Chapter 13 should be renamed as Chapter 7 as it takes seven to drop.

I guess whatever a Chapter 10 is must now be Chapter 13 😊....

[Horseshoez]

LOL, too logical; no governmental regulations would ever allow such a thing.

Speaking strictly for myself, the 7-year anniversary of my Chapter 13 filing is this coming January, so I'm really glad the drop off date isn't 10 or 13 years. 

[Shooting-For-800]

The both used to be 7 years before the BK reform.

[NoMoreE46]

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@Horseshoez wrote:

LOL, too logical; no governmental regulations would ever allow such a thing.

Speaking strictly for myself, the 7-year anniversary of my Chapter 13 filing is this coming January, so I'm really glad the drop off date isn't 10 or 13 years. 

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Cool kewl.

I work for a quasi-government office and the stupid stupid 💩 I encounter.

[BearsCubsOtters]

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@NoMoreE46 wrote:

Is this just me???

I always confuse a Chapter 7's (falling off in ten years)  versus a Chapter 13's (in seven years.)

I wrongly associate the '7' from a Chapter 7 to seven years.  Worse, I incorrectly think that a Chapter 13 filing takes 13 years to fall off.

Therefore, I feel that the BK Chapters ought to be revised to match the time frames for my logic.

Thus, a Chapter 7 should be renamed  as Chapter 10 as it takes ten years to drop.

A Chapter 13 should be renamed as Chapter 7 as it takes seven to drop.

I guess whatever a Chapter 10 is must now be Chapter 13 😊....

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I could see how you see 7 and would think 7 years.

For me, I see it like this: Filed Chapter 13? You paid back some of what you owed; therefore you are rewarded with early removal. Filed Chapter 7? You walked away with a fresh slate so you are penalized for the full 10. 

[kr43002]

Lol

I think the reason they are called BK 7 or BK 13 is the chapter of Code they are derived from.

Bankruptcy Chapter 7 is derived Title 11 Capter 7, I'm sure you can guess where Chapter 13 comes from.

[kr43002]

And hey you can always think of Chapter 13, you are rewarded with 3 years reduced penalty. 

[Horseshoez]

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@kr43002 wrote:

And hey you can always think of Chapter 13, you are rewarded with 3 years reduced penalty. 

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Well, I suppose that is one way to look at it.  For those of us who went through 5-years in credit purgatory (plus 18 months before that), I watched lots of folks declare Chapter 7, and then a month or three later, they were beginning their rebuild while I went from the summer of 2013 through early 2015 when I filed for Chapter 13, and then all of the way until the Spring of 2020 with literally zero credit.

An acquaintance of mine filed for Chapter 7 about the same time as I did, her unsecured credit cards started arriving in the mail a few months later and while she has still has almost four years to go before the Chapter 7 falls off her records, her FICO scores are hovering in the 750 range.  My scores are well behind hers (high 600s FICO 8, low 700s FICO 9), however, come January when my "reduced penalty" causes my bankruptcy to fall off my records, I'm hopeful I'll have scores in the upper 700s.

[CH-7-Mission-Accomplished]

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@Horseshoez wrote:

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@kr43002 wrote:

And hey you can always think of Chapter 13, you are rewarded with 3 years reduced penalty. 

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Well, I suppose that is one way to look at it.  For those of us who went through 5-years in credit purgatory (plus 18 months before that), I watched lots of folks declare Chapter 7, and then a month or three later, they were beginning their rebuild while I went from the summer of 2013 through early 2015 when I filed for Chapter 13, and then all of the way until the Spring of 2020 with literally zero credit.

An acquaintance of mine filed for Chapter 7 about the same time as I did, her unsecured credit cards started arriving in the mail a few months later and while she has still has almost four years to go before the Chapter 7 falls off her records, her FICO scores are hovering in the 750 range.  My scores are well behind hers (high 600s FICO 8, low 700s FICO 9), however, come January when my "reduced penalty" causes my bankruptcy to fall off my records, I'm hopeful I'll have scores in the upper 700s.

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I love you Horseshoez.

I'm just past 8 years since filing BK 7 and my FICO 8's are 770-780 and my FICO 9's are 800-841.   And the the BK will be around for three more years.

Anyone who thinks a Ch 13 is better than a Ch 7 is a fool.   If you can file a 7, file a 7.   Nothing prevents you from repaying your credtors.   But some with a 13 are so grateful because they HAVE TO REPAY up to 100% with their 13.   Seriously???????