Why bother with Ch. 13?
My husband and I still do not know if we will quality for Ch. 7. So, my question is this... if credit card companies will allow payment plans, then why does anyone bother to file for Ch. 13? Is it a huge discounted repayment?
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What I've gathered from the forum is that Ch. 13 is the legal option available for those who have exhausted every effort to settle bad debts with creditors, in order to avoid foreclosure, liens, garnishment, etc. It likely depends on your terms with the creditors and your financial situation as a whole whether it's a good or bad move.Originally posted by frustrated1 View PostFiled Joint, No Asset, > $100,000 Unsecured Ch.7 6/7/13 ~~ 341 Meeting 7/15/13 ~~ Discharged 9/16/13 !! -
The law requires them to either give up their right to the debt or accept what the plan will pay them.Chapter 7 Pro Se....Discharged Feb. 2006Comment
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To add to that, no more collection calls and if you set up a payment plan outside of a chapter 13, the companies do not have to agree to it. The are bound by law to accept the plan in a 13.Filed Chapter 13 05/23/08
Converted to Chapter 7 Jan 2012
Discharged April 2012
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'will allow' is the key. You can offer credit card companies a repayment plan that you think is fair and just and actually would pay them their total due, but they will just as easily come back with 'we WILL NOT allow that' to your proposalOriginally posted by frustrated1 View Post
So to prevent garnishment or asset seizure resulting from judgements, a Ch13 is filed.
As many others have said, in a CH13 they ain't coming back with 'we will not'! And way more often than not end up with far less than a sensible payment plan would have given them.May 2008: Filed Chapter 13
Jan 2010: Plan Amended and Confirmed! finally plan funds = total funds due!
Jul 2013: 5 years done! Trustee set to discharge! Woo hoooo!
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