Announcement

Collapse

Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as BKForum.com and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do:
BKFORUM.com (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto BKForum.com you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.


Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of BKforum.com.

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on BKForum.com are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Are there instances when one would choose Ch 13 over Ch 7?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Are there instances when one would choose Ch 13 over Ch 7?

    I'm fairly new to the forum and I'm finding it so very helpful. My situation is that I am on disability (not social security-it is from a private disability policy) with income of about $3,500/month. I have almost $70k in credit card debt and a $20k car loan with 3 years left on the loan. I am current and able to make all of my loan payments but can't seem to get ahead on any of the debt. I think I could possibly pay off the debt but it would probably take 10+ years. My questions are:

    1. Should I file for bankruptcy? Having the debt hanging over me is causing me tremendous anxiety and depression but I don't know if that is reason enough to file.
    2. Given that I may be able to pay off the debt in 10+ years, should I avoid filing bankruptcy at all cost or should I go ahead and bite the bullet and file?
    3. Are you able to choose to file Ch 13 even if you qualify for Ch 7, and is it ever advantageous to do that? I have been told by attorneys that I would probably be able to file for Ch 7, or that I would have a 3-year Ch 13 if I don't qualify for Ch 7. My disposable income is almost non-existent after my expenses so I think I'd qualify for 7 but I wonder if I have the option to file for 13 over 7 and if that would ever be preferable...

    Thank you!

  • #2
    The only reasons I can think of to file Chap 13 when you qualify for a Chap 7 is to give yourself time to catch up on late home or car payments, to save non-exempt assets that would be liquidated in a Chap 7, or to catch up on non-dischargeable debt like taxes or student loans.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

    Comment


    • #3
      Originally posted by ChelseaMike View Post
      I1. Should I file for bankruptcy? Having the debt hanging over me is causing me tremendous anxiety and depression but I don't know if that is reason enough to file.
      The anxiety, despair, sleepless nights and depression went away once I filed for Ch 13 BK and for that reason alone filing BK was worth it.

      But why do you want to file Ch 13, especially if you would have no disposable income after expenses? Do you own a home and/or vehicles? As LITR says the only reason to file Ch 13 is if you are behind on secured debt (mortgage, car) and you want to pay that back and get current, save property (again, car, mortgage or "non-exempt" property) or to pay past due taxes. If you qualify for Ch 7 and most or all of your property would be exempt (from being take by the trustee to pay your creditors). In Ch if all goes well you are out of debt in a matter of months instead of a matter of years with Ch 13.
      Filed Ch 13 Fall 2013, 60 month plan

      Comment


      • #4
        Originally posted by switch625 View Post
        The anxiety, despair, sleepless nights and depression went away once I filed for Ch 13 BK and for that reason alone filing BK was worth it.

        But why do you want to file Ch 13, especially if you would have no disposable income after expenses? Do you own a home and/or vehicles? As LITR says the only reason to file Ch 13 is if you are behind on secured debt (mortgage, car) and you want to pay that back and get current, save property (again, car, mortgage or "non-exempt" property) or to pay past due taxes. If you qualify for Ch 7 and most or all of your property would be exempt (from being take by the trustee to pay your creditors). In Ch if all goes well you are out of debt in a matter of months instead of a matter of years with Ch 13.
        Thank you. The reason I ask is because the Chapter 13 drops off of your credit report in 7 years vs 10 years for a Ch 7 (as I understand it). I don't have assets to protect so from what you have said it would make more sense to file Ch 7. Thanks again for your feedback.

        Comment


        • #5
          For the most part, the biggest impact to your credit after filing for and discharging debt in bankruptcy, is the two (2) years after discharge. Within 4 years from discharge you can qualify for conventional mortgages just as if you never filed bankruptcy. Very few creditors see a bankruptcy on your credit report and immediately decline. Most creditors go purely on score and you could be in the high 600s within 6 months of discharge of a bankruptcy. However, 2 years seems to be the magic number (as I have learned).
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog


          I am not an attorney. Any advice provided is not legal advice.

          Comment


          • #6
            Another thing to consider is that with a Chapter 7 -- the whole thing is done & over with usually in about 3-4 months. You can move on and put it behind you. No more trustee to deal with, no more meetings, no worry about someone questioning your every move. You don't have to get permission to obtain new credit. Aside from your next tax refund -- which the trustee has every right to take a part of in a chapter 7 -- any money received after six months of filing date is yours to keep. So if an inheritance comes up, bonuses from work, you land a job with awesome pay, and future tax refunds... they don't go to anyone else but you.

            A Chapter 7 may stay on your credit report longer, but a 13 keeps you in a sort of limbo for a very long time. Many here have done it and succeeded -- because they HAD to. If you don't have those circumstances, then 3 more years on your credit report is a small price to pay IMO for getting bk done & behind you.

            Comment

            Unconfigured Ad Widget

            Collapse
            Working...
            X