Talk to me about chapter 13?

[bigjoey38]

I am thinking about doing chapter 13.. Some bills are not getting paid and the creditors are now calling. I don't want them to garnish my check.

Can Anyone tell me what are the pros and cons of ch 13?

Thanks
Joe

[no_it_all]

Google is your friend.........a quick "Chapter 13 vs 7" search string showed over forty-four thousand hits...start here: http://www.bklaw.com/chapter13/. Read it and post when maybe you have some more specific questions or maybe don't understand something..

[SinkingFast]

Ch 13 as compared to a Debt Management Plan with a Credit Counselor Service,........

Ch 13 comes with an Automatic Stay put in place the WHOLE time. The Creditors cannot bill you outside the payment plan. They cannot call you. They cannot try to collect from you in anyway. A DMP doesn't come with that.

Ch 13, you may only pay back a portion of what you owe total. You'll have one payment. To the Court and the Court does the rest.

DMP, you pay back at 100%. The CCA's have agreements with Creditors about the interest they charge, but there's no magic "Drop 60% of your Debt" companies out there. If they say that it's bogus. The old "if it sounds too good,....." Well it ain't so. And some Creditors simply won't join. So you're left making the DMP and maybe a couple of other payments every month.

That's a couple of things about Ch 13 and DMP to consider.

We won't even get into Law Suits, Garnishments, Judgements, Liens,........

[bigjoey38]

I have a motorcycle ( 1984 goldwing). Would I be able to keep that?

[anonymuse]

Here's the US Courts BK site with "Bankruptcy Basics":

http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html

There's also a comprehensive pdf file there for printing:

http://www.uscourts.gov/bankruptcycourts/bankbasics04606.pdf

[anonymuse]

I have a motorcycle ( 1984 goldwing). Would I be able to keep that?

You need to take the means test which assesses your disposable income and find out the exemptions for your state to see which assets are exempt.