Why do I feel like I am being punished?

[mdl]

For filing Chapter 13 over chapter 7?
Everyone talks about how happy their life is within a couple of months and I'm sitting here feeling miserable and beyond broke for another two years.... In case you are wondering, I'm having a self pity party.....

[Kricklet87]

I too am completely broke and struggling every day to scrape money for bills and food. I go nowhere, I buy nothing and to top it off, I found out last week that my plan will last 4 months beyond the 60 months because I had to modify my plan because of a decrease in pay. There has been many nights the last five years where I would go to bed without eating simply because I didn't have enough money left over for something as silly as food! Yes, I got myself into this mess, but I will never regret leaving an abusive ex husband whose income is 6 figures. 4 more months of this hell!

[AngelinaCat]

{{{{{HUGGSSS}}}}} to the both of you. I am confident that the bot of you will make it!

@Kricklet87: Congrats to you for recognizing your abusive situation and taking the steps to take care of yourself. I see many that I know are in that situation, and there is nothing I can do but pray for them.

[TXskyblue]

What I don't understand is why there isn't something between a 7 and a 13. They are very different. A 7 is over right away and there is no pay back. A 13 takes 3-5 years and you pay back a lot. I'm not sure of the specifics, but I'd think it would make more sense to have something in between those two extremes.

[spidge]

I feel for ya mdl. Once you figure out your angle on how to attack the situation you may be surprised as to the relief an all cash life brings.

K87, Food was a tough one for us because my wife would see money in the account and think she could use it for something that I was not privy to. My solution lately is to do a big shopping in one shot as this would remove the cash from the account yet keep us nourished. Top Ramen tastes better when I eat it out of choice and not because it is all we have in the cabinet.

TX, I am right there with ya, but I don't know how it could be done fairly across the board.

Hang in there and keep fighting.

[justbroke]

What I don't understand is why there isn't something between a 7 and a 13. They are very different. A 7 is over right away and there is no pay back. A 13 takes 3-5 years and you pay back a lot. I'm not sure of the specifics, but I'd think it would make more sense to have something in between those two extremes.

It's simple. One is a complete liquidation (Chapter 7) and its done in 3-6 months. The other attempts to pay unsecured creditors "some" dividend when the debtor has the ability to pay. I too wish that all Chapter 13s were 3 years (36 months), but the changes in 2005 setup two types of debtors, under-the-median and over-the-median income debtors.

Also, there are a good number of people who choose Chapter 13 to save property. A debtor can not use a Chapter 7 to cure arrears, fend off the IRS, or force secured creditors to change interest rates and get a "technical" refinancing of the debt. Chapter 13 is a better tool for homeowners that are in trouble or taxpayers in trouble. The Chapter 13 tool albeit comes with some terms that may not be to our liking, short of a Chapter 7 (or another bankruptcy chapter), there is just nothing else that can get creditors off your back.

[159515951]

My favorite part of being in a 13 (sarcasm) is that my credit doesn't even BEGIN to heal itself until after discharge in another 3.5 years, whereas those that file a 7 typically have a credit card or a new car within a year or so of discharge. It's like putting your life on hold for 60 months.

All that aside, we are being punished. This isn't supposed to be easy, but it does end eventually.

[justbroke]

Your score should have bounced back to at least the (very) low 600s within 6 months of filing a Chapter 13. If it is still below 600, then something bad has happened. It is true that the entry of the discharge (and shown on your credit report), gtives you another boost. I think that those that planned their Chapter 13 and were able to fend off having any chargeoffs or serious lateness (no 60+ day late entries) tend to bounceback better.

Just an observation that I have seen based on my own experience.

[andy158]

Your score should have bounced back to at least the (very) low 600s within 6 months of filing a Chapter 13.

Our credit score is a "poor" 633 just three months before our last payment in July in a 60 month plan even though we paid off a vehicle outside the plan last year. I imagine there will be a slight increase after discharge. I don't care because we don't plan on purchasing anything on credit for years to come.

[lillymarlene]

Chapter 13 is a better tool for homeowners that are in trouble or taxpayers in trouble. The Chapter 13 tool albeit comes with some terms that may not be to our liking, short of a Chapter 7 (or another bankruptcy chapter), there is just nothing else that can get creditors off your back.

I agree. I have been in my 4 year Chapter 13 for 3 1/2 years, and mostly did it to save a little property that was left from my small business, my home and ride. These days, I'm still scraping up the mortgage payments on my house, my non-running "classic" car sits in my yard, and except for a few old clients, my small business is done mostly online. I would not survive without my long-term temp factory job, that now takes up most of my time.

If I had to chose the 13 over again, I would. So much happened to me within the past 5 years, bankruptcy was just one of them. Then, anyway since I wasn't much of a saver when I was very young, I'd probably have to be living this way, watching every cent.

[BNKRPTinNC]

Our credit score is a "poor" 633 just three months before our last payment in July in a 60 month plan even though we paid off a vehicle outside the plan last year. I imagine there will be a slight increase after discharge. I don't care because we don't plan on purchasing anything on credit for years to come.

Mine was in the 670 range for the last couple of years. At discharge it jumped to 714. But I'm with you as it doesn't matter whether it's 600 or 850 if I can't pay cash I'm going make do without. Granted, there may come a time when I might consider going into debt again but it will be short term or not at all.