About to file Chapter 13 - Very Nervous!

I too think that the monthly payments could be something between $1000 and $1200. This is because your total debt is around $50k plus interest charges (if any) and you are repaying it over a period of 5 years (i.e 60 months) and so the monthly payment is coming around $833 ($50K/60). This is only for the principle amount. In addition to this, if there are interest charges, the monthly payment may go up and can be somewhere around $1000 and $1200.

If the Ch 13 is only for unsecured debt, IMHO, since you would be paying back 100% over 5 years (PLUS the attorney fees of close to $3,000 AND the trustee fees)...I would try to work something out with your creditors...settlement, restructed payment plan...ANYTHING. If you aren't currently being sued by a creditor, it can't hurt.

IMHO, sounds like the attorney was quick to advised BK so that he could make a living...grrr...

I'd get a second opinion...from CCCS and a different attorney...ask them BOTH if BK is the only option...see what they have to say.

Your monthly payment amount in Chap. 13 is not based on the amount of your debt. It is based on your income - neccessity living expenses ( house payment, car payment, groceries, medications, child care, etc. ) = monthly chap. 13 payment.

Also, if you have filed for bankruptcy within the previous 4-6 years this will determine if you receive a discharge at the end of your Chap. 13 Plan.

I would suggest you speak with another attorney for a free consultation BEFORE you file if you still have uncertainty about filing. Your attorney should be your friend not your enemy in filing for bankruptcy.

I wonder, did your attorney calculate your BK plan based on YOUR income alone or with you and your fiance?

Anyway...get a second opinion. It can't hurt.

I still think @ 1000 - 1200 a month, you could pay off the debt on your own. If you could settle, that would be better - and less you have to pay...remember, in a Ch 13 Bk, you pay the attorney fees AND the monthly trustee fee...use that money to pay your debts yourself...

Do the math...@ 1200 / month for 60 months (5 years) you're paying $72,000!

I'm just not convinced that BK is the best way to go RIGHT NOW...of course, I don't have the background info on your situation. I still hold firm that you should seek a second opinion.

I agree with you Desperately. Since the total debt is somewhere around $50K, he can easily settle it between $25K and $30K and pay it off in approx 2 years if he pays $1200 per month. So the debt would be cleared in approx 2 years instead of 5 years, as it would have been, if he had filed Ch 13 bk. In addition to this he would be saving the attorney and trustee fees.

Not to mention that the OP won't have a BK on his CR for 7 years.

The settled accounts will have less of an impact as time goes by. The BK will hurt more.

Both debt settlement and bankruptcy will affect the credit score, but the impact on the credit score will be greater under bankruptcy. In addition to this, bankruptcy may even stay in the credit report for 10 years. Moreover, if you settle the debt, your credit score will start improving after 2 years if you are current with your payments.

I'm currently in a Ch 13 BK, but my payments are not $1200, but I would like to add my two cents. If I were you, I would go to several consults with different BK attorneys, as they are usually free, plus you can get an idea of the whole picture before you make a decision. Are your mortgage payments in arrears? If so, that could be one reason why your payment would be $1200, but $1200 is really not that bad compared to other cases that I've seen making a $2000 monthly payment. Long story short, only you know what's involved with your finances, so your best piece of advice would be to sit down and speak with attorneys from different consults and see what they come up with. Good Luck!!

I'd get a second opinion...from CCCS and a different attorney...ask them BOTH if BK is the only option...see what they have to say. (CCCS = Consumer Credit Counseling Services)

Do the legwork so you know that the decision you made is the right one for you! Good Luck!