top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Saw attorney first time today - may have Ch 13, not 7, now not sure what to do

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

    Saw attorney first time today - may have Ch 13, not 7, now not sure what to do

    Hi,

    I am so confused. My husband's home (where he lived before we got married) is being rented and we are "in the hole" with house and will probably be foreclosed on. We both have filed BK before so are pretty ashamed about being in this situation again.

    I have started graduate school, and last Nov. changed my status from full-time to part time. Anyway, the atty suggests that we wait until May to file, which we planned. He said that there is a change we will still be at Ch 13. Not sure if it will be 100% payback or not, but he said we will save money even if we have to go Ch 13 route. He said as far as foreclosure, whenever bank (BOA) would foreclose, all that would happen probably for difference, would be they would send 1099 to us to be reported as income on taxes. Other than that he said we really would not have any ill-effect. The advantage of BK for us would be, according to atty, is that we would have everything paid off in 5 years, we would not have to pay taxes form 1099. Right now we are in debt management (not debt settlement) and we should be paid off with their program about 18 months sooner according to the plan they have laid out for us. The BK atty said any time the creditors in debt management can change their minds and demand to be paid in full (another advantage of BK). The actual agreement with debt management company is for 24 months at a time, then renews every 24 months.

    I am just so confused. I am wondering if I ought to quit school and go back to work full-time (I'm 53), so we can keep with our old income.

    Any advice would be greatly appreciated.

    Thank you.

    #2
    Is this the only attorney that you have consulted with? If so, contact some more. Without more info, though, it is hard to say what you should do. What is your income and what is the median in your state for your household size? Also, what would your schedule J look like? That is going to be what determines if you are in a Chapter 13 or a Chapter 7.

    BTW, I would cancel the debt management you are in. It's a waste of money.

    Comment


      #3
      This was the first attorney we went to.

      I thought if we got out of debt mgmt program all the interest came back with fees? Our credit union pays fees.

      Comment


        #4
        What do you mean your credit union pays fees? They can't give your money to anybody else without your permission. And if they do, it's time to bank elsewhere.

        Comment


          #5
          The credit union pays whatever fees to debt management company. We do not pay any fees to debt management.

          Comment


            #6
            But you are paying money to the debt management company, correct? If so, stop that. It's pointless if you file BK. And to be honest, they rarely work anyway.

            Comment


              #7
              Yes, we pay $870 month to them. The attorney said to keep paying until we get closer to file. Why don't they work?

              Comment


                #8
                Originally posted by basketsbears View Post
                Yes, we pay $870 month to them. The attorney said to keep paying until we get closer to file. Why don't they work?
                You really should consult with more than one attorney. My attorney told me to stop paying all debt as soon as I knew I was going to file. Even if filing was months away.

                They typically don't work because the creditors do not have to accept the terms. And can change it at anytime and add on fees. With BK, they have no option.

                Also, I am not convinced that you have no choice but to do a Chapter 13 based on just one attorney's opinion. Not all attorneys are willing to actually fight for their client, they just want to go the easier route. Plus, the attorney makes more money if you file a Chapter 13 as opposed to a Chapter 7.

                Stop paying and save your money for when you decide on which attorney that you will use.

                Comment


                  #9
                  Ok I understand now, thanks!

                  Comment

                  bottom Ad Widget

                  Collapse
                  Working...
                  X