Chapter 13 Questions (Filed Ch 7 4 years ago)

[2ndtimefiler]

I am stuck in that rock and hard place also. I filed chapter 7 in 2003 and was discharged in Nov 03, I can only file a 13. I have been so hesitant to file though because I am scared I do not have enough disposible income. I know I can squeeze something out of my budget. I filed alone in 2003, and all debt is only in my name (unsecured), and I will go that route again. I also have a car that I can not cram down it doesn't meet the time limits but the interest on the car is killing me. The car is the only secured debt. I fall below the state median (both our incomes). I am paying over 700 monthly to unsecureds only and 300 on the car, along with my other expenses. I know I can find the money, I am paying it now but barely and robbing peter to pay paul. I did some prelimenary inquires and email with lawyers and through lurking on the board I get mixed vibes whether or not I would get approved. I know I just need to officially do it and run the numbers, but I am so scared because I am back in the same place I was 5 years ago. One thing really holding me back is a 10,000 beneficial loan from last August (unsecured personal). I have nothing to show for the money it was eaten up in everyday bills. They are horrible people, constantly calling me. I am anxious to continue to see how this plays out for the OP. I have some hope after reading rrockinggramma's response.

[killi]

Met 2 lawyers. Both seemed confident I could get a 36month plan with a very small percentage to unsecureds. maybe a 200-250/mo payment. Would be like 5% or so to creditors after trustee and atty fees. Just to try and get a rental with the most affordable rent possible 800-900 range, which i could definitely do for or possibly less. If i end up saving well, i could always move up later. Sounds like a great plan to me!

[rrockinggramma]

to secondtime: I am a repeat filer as well. Chapter 7 in 01 and chapter 13 in 05. Had no choice but to file a chapter 13. Unsecured's would get nothing. I would file. Keep the car in or out of plan and let unsecured's get 5 percent, maybe 10. And I would kick beneficial to the curb. They are HFC (Household finance) and their loans are loans that you can never pay off because the interest just eats up your payment, even when you pay extra!

[killi]

Hey rr.. were you 36 months as well? did any 0 balance cards survive the 13... Just for rebuild help after the discharge period? I have a kay jewelers card with like $100 bal i can pay off that i have had for 12 years that survived my ch7.

I have no lates except my house that is now 60 days. I was thinking if it is worth it to pay the last $150 in min payments this month to the last few cards that would go 30 late before i file. When i file they would be less than 30 days late so it would be just the BK and the 60/90 day late house payment

[rrockinggramma]

my plan was for 36 months. My percentage to unsecured was figured at 10 percent. However due to the lack of claims filed, the trustee ended up raising it to 61 percent. So those creditors that filed did get 61 percent. But it didn't change my monthly payment or my length of plan. I would definitely try to keep a couple of those cards at zero balance so you won't have to list them. You don't want to lose the 12 year credit history you have developed with Kay's. That is a real score killer as well. I have been able to rebuild but I had to start with those high fee cards. Now I am graduating to those with fees, just not as bad. And I am hopeful that soon I can close out those fee cards and only have those with no monthly fees etc but that is a year or so away.

But you should decide your course of action based on what is right for you and not on your credit score. You will have plenty of time once you are stress free to worry about that.

I have a total of 4 BK's on my credit report the chapter 7 from 01, the dismissed 2 from 04 and my now current one that is in the discharge pipeline!

all my scores now are over 600.

[killi]

Went to a new lawyer today. Pretty much the de facto BK lawyer in Vegas. He does 100% BK work and nothing else. He looked at my prev 6mos under the median income, saw my salary, verified im losing the house and the truck, and said "200 a month, 36 months, give me my fee and you are done." Didnt even have to get a rental place, said to stay in the house til it's time to leave (6 months average to lift and foreclosure) if i want to save for a larger deposit, and does the credit counseling in his office.