If Chapter 7 gets dismissed and 13 isn't an option

[texanboy76]

If my Chapter 7 gets dismissed then obviously 13 is an option however my attorney said I would most likely have to sell my house due to the payment (not an option for family reasons) He also mentioned something about Chapter 11 as an option or just going the route of creditors/collection agencies going afte you. Has anyone had this happen to them? I would assume the hassle of creditors/collection companies hounding you gets old. Let's say they get a judgement on you in state of Texas. They can't take your home, car or put a lien on your property. How long does the judgement last? Let's say creditor A gets a judgement on you for 20K and they don't get a cent from you. Can someone else buy the debt at a decreased value and then slap another judgement on you? Also how long does a judgment stay on your credit report? Any info would be appreciated....

[lrprn]

If my Chapter 7 gets dismissed then obviously 13 is an option however my attorney said I would most likely have to sell my house due to the payment (not an option for family reasons)

Not sure what you mean here. Why did your lawyer say you would have to sell your house if you filed Ch 13? The TX bankruptcy homestead exemption is the same no matter which bk chapter is filed - http://www.thebankruptcysite.org/exemptions/texas.html - it's unlimited.

He also mentioned something about Chapter 11 as an option or just going the route of creditors/collection agencies going afte you.

If you are making so little that you qualify for Ch 7, then Ch 11 is just a pipe dream. Ch 11s are very expensive, and typically consumers that file them have high incomes and assets that exceed the maximum allowed to file Ch 13.

How many lawyers did you interview before deciding on this one?

Has anyone had this happen to them? I would assume the hassle of creditors/collection companies hounding you gets old.

We have several active members here who have gone this route and held off their creditors for quite some time. Do some deep reading in our Collections forum area - lots of information there on what to expect if you go this route.

How long does the judgement last?

Here's information about the TX statute of limitations - http://www.expertlaw.com/library/lim...ate/Texas.html

Let's say creditor A gets a judgement on you for 20K and they don't get a cent from you. Can someone else buy the debt at a decreased value and then slap another judgement on you?

Yes, if they decide it's worth going to court again to try to get you to pay.

Also how long does a judgment stay on your credit report?

Since the judgment actually happened, it can stay on your report for at least seven years unless you satisfy the judgment before then. It's a big negative hit too.

[texanboy76]

Not sure what you mean here. Why did your lawyer say you would have to sell your house if you filed Ch 13? The TX bankruptcy homestead exemption is the same no matter which bk chapter is filed - http://www.thebankruptcysite.org/exemptions/texas.html - it's unlimited.



If you are making so little that you qualify for Ch 7, then Ch 11 is just a pipe dream. Ch 11s are very expensive, and typically consumers that file them have high incomes and assets that exceed the maximum allowed to file Ch 13.



How many lawyers did you interview before deciding on this one?

We have several active members here who have gone this route and held off their creditors for quite some time. Do some deep reading in our Collections forum area - lots of information there on what to expect if you go this route.



Here's information about the TX statute of limitations - http://www.expertlaw.com/library/lim...ate/Texas.html

Yes, if they decide it's worth going to court again to try to get you to pay.

Since the judgment actually happened, it can stay on your report for at least seven years unless you satisfy the judgment before then. It's a big negative hit too.

here are some answers to your questions..

1) He is one of the best in the city and mentioned the judge would say the house is too excessive in monthly cost for a Ch 13

2) I have very high income but still passed the means test mainly because the house was expensive..

3) 5

4) thanks for pointing that out...

5)so actually you get hit twice with the BK still showing that you filed and then a judgement?

[lrprn]

1) He is one of the best in the city and mentioned the judge would say the house is too excessive in monthly cost for a Ch 13.

Ah.....must be a very expensive house then. Interesting because in most areas, if you file a 13, the trustee doesn't typically make a judgment about the house payment since you are creating a debt management plan. Since this appears to be an oddity in your local court, your lawyer does know best in the situation.

[/quote]5)so actually you get hit twice with the BK still showing that you filed and then a judgement?[/QUOTE]It all depends on the type of judgment. A credit card company typically will try to garnish wages. An asset lender will put a lien on an asset to get all or some of their money when you sell the asset.

If it's a wage garnishment judgment that isn't related to child support or breaking a law, that will be stopped after you file.

If it's a lien against an asset, the judgment dollars owed are wiped out when you are successfully discharged, but the judgment itself is not. You have to petition the court to remove the judgment from your asset after your case is closed - then the judgment can be removed from your credit report.