Our situation. So lost don't know where to start. Chapter 13??

[FullOfIt]

We are current on all debt at the moment. Home, cars, unsecured debt. Though I do not know that this will be the truth after this month.

We have no intention of going bankrupt on our Home or cars. We have two modest car payment 400.00 and 255.00 these are newer cars with low miles and extended warranties. I suspect they will last us a while with little financial upkeep. Our house payment is 1600.00 We have only lived in our home for 5 years so, our equity is more than likely close to zero. Our student loans are 400.00. We own free and clear a 2006 Chrysler Van with 183000 miles on it. Other than that we own no "property" and don't have assets.

My husband is self employed. Our bring home pay is approx 8000.00(very steady for over 10 years). We believe that we have the means to enter a repayment plan on our unsecured (credit card debt) and our priority Tax debt. Our unsecured credit card/personal loan debt is approx 45,000. Our tax debt from 2011 is 14000.00 and 2012 is not yet filed but we suspect it will be around 8000.00 (we would file and include in Chapter 13 asap if necessary). Is chapter 13 an option if secured debt is not involved

We have a co-signer on our home. If we were to file chapter 13 (not filing on our home) would our co-signer need to be involved? I am not opposed to our co-signer knowing I just absolutely cannot do anything that would affect their credit in any way.

We also have an unsecured "personal loan" w/ a co-signer. We would not want to include this debt either. (is this possible?)

These are our most concerning questions. Again, if our co-signer will be affected we will have to come up with another plan (more than likely default on our credit cards).

Thanks so much for any advice/info!!!

[keepsmiling]

Hello and WELCOME to the forum!
I don't know about the co-signor thing. BUT I can tell you you will have to include ALL debts.
How many are in your household? There is always a possibility you could qualify for 7, even with your high income. Probably not but certainly worth taking a look at. Someone will come along with a link.
Are you actually using the van?

Meanwhile, you should start making some appointments for free consults with bk attorneys. There is no obligation and you want to meet with a minimum of 3.

[FullOfIt]

5 people in our household. Yes we are using the Van. We have 3 drivers in the home. It's probably valued at 2500.00 (but worth way more than that to us).

[murph996]

Other than the co-signor part, are situations were very similar. Similar tax debt, unsecured debt, etc.

Like keepsmiling said, all of your debts are a part of the bankruptcy. You file for bankruptcy personally, and everything you owe comes with that. You may still pay your mortgage outside of the bankruptcy, but they are still notified, and it's still a part of your bankruptcy. And you must not have an arrearage on your mortgage when you file your 13, or it may have to be serviced through the court (along with added trustee fees) during the term of your 13. That was an issue with our 2nd - there were late fees tacked on that didnt show on my monthly statement and that almost got my case dismissed - even after confirmation.

In Ohio, it is required that any auto loans be paid through the trustee..so we had to include ours. That may be different in OK.

You definitely need to file your 2012 taxes prior to filing for your bankruptcy. We filed our 2011 taxes days before our meeting. We owed a bit, and the IRS claimed that additional amount within the plan as secured tax debt, since the debt was incurred in 2011 even though we filed in 2012.

[FullOfIt]

We only have our first mortgage and have never been late. Our back taxes are what threw us into this tailspin. I would love chapter 7 but I just don't think that's realistic.

[keepsmiling]

Read everything you can here so you can become more knowledgeable and know the q's to ask.
13 can be a very powerful tool to put you back in the driver's seat of your finances. But you want a wisely crafted plan that gives you room to breathe so that it can be successful. Hang in there, soon you will be on the road to financial freedom.

[LadyInTheRed]

While all debt is included in your Chap 13, the mortgage does not get discharged and as long as you stay current on your payments, it shouldn't affect the co-signor.

There is a co-debtor stay on collection activiities in a 13, so the co-singer of the personal loan will be protected during your 13, unless the creditor moves for relief form the stay. The bankrupcy can't be reported on a co-signor's credit reports unless they later file BK, but, if the loan is not paid off in the Chap 13, the creditor can pursue the co-singor to collect and report the default on his/her credit report. So, you need to figure out how to take care of that debt immediately after your discharge. The creditor probably will not take any payments during your BK, but you could try. Be sure to talk to your attorney about this issue.

Here are a couple of articles explaining the co-debtor stay.

http://scvbankruptcy.com/articles-lawyers-chapter-13-codebtor-stay.html

http://www.becket-lee.com/Default.aspx?treeIndex=3&tree_id=19&document_id=54

Use the means test calculator at http://www.legalconsumer.com/bankruptcy/means-test/ to find out if you might qualify for a 7.

If you do qualify for a 7, you could keep paying on the personal loan as long as you don't pay over $600 within 90 days of filing. There is nothing to stop you from continuing to pay on a discharged debt. But, the creditor may not accept your payments between filing and discharge. Perhaps the co-signor can send them. Again, please discuss your options with a BK attorney.

Is chapter 13 an option if secured debt is not involved

Absolutely. But in your case, secured debt is involved.

[FullOfIt]

So, would all be fine with a chapter 13 if I right now stopped paying Taxes, and credit card debt, took all that extra money for 3-4 months to pay off my loan with the co-signer and then file or would that create a red flag?

[LadyInTheRed]

So, would all be fine with a chapter 13 if I right now stopped paying Taxes, and credit card debt, took all that extra money for 3-4 months to pay off my loan with the co-signer and then file or would that create a red flag?

That depends on how much you pay within 90 days of filing. If it's over $600 you'll have a problem. You want to make sure the trustee cannot avoid the payments (i.e., take them back from the creditor) as preference payments. The law on preferences is at http://www.law.cornell.edu/uscode/text/11/547

"Would all be fine" is a pretty broad question. We can steer you in the right direction. But, please do talk to an attorney before you do anything.

[LadyInTheRed]

I'm copying the following quote from another thread to keep the co-sigonr discussion in one thread

15 years ago i had 2 joint credit cards with my mom and dad 16,000. They went bankrupt on it and I did not. It did show up as a bankruptcy on my credit report and I vaguely remember signing something but no one ever came after me and I "technically" didn't go bankrupt.It did show up as a bankruptcy on my credit report and I vaguely remember signing something but no one ever came after me and I "technically" didn't go bankrupt.

Your bankruptcy will not show up on anybody else's credit report. But, the creditor can go after the co-borrower for the discharged debt. If you had joint credit cards with your parents, you are lucky the creditor didn't pursue you for payment. Are you sure you weren't just an authorized user? That's different than it being a joint card.

[LadyInTheRed]

I am certain that the 2 cards w/ my parents were on my credit report as a bankruptcy. Anytime I applied for credit I would have to explain the situation.

You should have disputed it. Your parents bankruptcy should not have shown up on your credit report. They could report the default on the account, but there should not have been a reference to bankruptcy if you did not file bankruptcy.

[FullOfIt]

Thanks.....I started the other thread because as you can see I am at a loss right now as what to do. I will most certainly not make a single move with out consulting an attorney or 5

[LadyInTheRed]

Thanks.....I started the other thread because as you can see I am at a loss right now as what to do. I will most certainly not make a single move with out consulting an attorney or 5

You started the other thread to ask a different question. That's fine. It was about to head into the direction of this thread, so I thought I'd prevent that.