Bankruptcy 7 vs 13

Chapter 13 is much better than chapter 7. You will be paying a portion of the total debt under a repayment plan. Creditors / debt collectors are not going to hound you to make larger payments becaue the trustee will fix the payment plan for you.

Chapter 7 wipes off many debts entirely. Not everyone is eligible for chapter 7

A person who has filed chapter 7 within the last eight years, or chapter 13 within the last six years cannot file for chapter 7. Under the new laws in effect from 2005, there are some requirements to be fulfilled before chapter 7 is possible.

Take a look at the procedure explained in this link

http://www.debtconsolidationcare.com/forums/bankruptcy-reform.html

Flying Cats--My paralegal also told me that with a chapter 13, the debt has to be paid off in 36 months. Did I understand her correctly? How would that work with a mortgage or is the chapter 13 to get you back on track with your mortgage payments?

Thanks

Do they only allow you so much money for food, transportation? Or even pet food if you have animals? I ask this becuase for one month after all my bills I pay I only have 367.00 left. That needs to be shared with food gas and medical bills I can fit in. I wonder if its possible to file either.

Jamie, your attorney will go over your budget with you prior to filing. They do include pets into the budget.

Lorri, I don't know what the laws are in your state but in mine if you file a chpt. 13 they make your monthly mortgage payments on a conduit basis which keeps you current.

thanks Steelers

Lorri,

Median incomes vary widely from state to state. I know Connecticut and New Jersey have the highest (more than $90,000 for a family of 4) and New Mexico has the lowest ($48,223 for a family of 4). So, depending upon where you live, it will be decided whether you qualify for bankruptcy. Yes, it is true that one gets back on track with mortgage payments after filing for chapter 13. In chapter 7, there is a risk to the assets because they are liquidated for paying the debts.

Jamie -

Chapter 13 is a 3 to 5 year plan, usually. Mine is 3 years, 5 months. It depends on your debt load and your income as to how long the plan is for. Your attorney will work that out for you and suggest a plan.