Allowed housing expenses? The county standard or what you actually pay?

[btbeme]

Well, even though you make Chapter 13 seem like a death sentence or some sort of slavery, it is a tool for those of us who actually wanted to restructure debt. Of course, I'm not the poster-child for the correct way to use a Chapter 13 Reorganization. I converted to Chapter 7 some 20 months into my confirmed plan.

I simply see Ch 13 as an expensive way to qualify for a Ch 7. What are the statistics of completion of a Ch 13? I have read that it is very low, maybe as low as the teens. Most flip to a Ch 7 along the way.

What I shake my head over are folks who fall into a Ch 13 because of poor pre-filing decisions that could have been easily avoided, or falling through the gaps in the Means Test because they (or their attorney) failed to understand that there are ways to keep most singular events from ditching a Ch 7. Certainly, it has its place, but I'd rather that people go through a few months of pre-filing pain to conform rather than five years of payments on debts they cannot afford anyway. And I'd absolutely rather see people get their Ch 7 discharge rather than a dismissal or Ch 13 from a Trustee for mistakes that could be avoided. That's all.

[justbroke]

I agree with you, but there are actual and valid reasons to file a Chapter 13 that have nothing to do with a complete liquidation. Sometimes, a sophisticated debtor just needs to reorganize their debts and take advantage of the (up to ) 60 months to repay. It's a strategy.

However, someone with high income, can't just plan to file Chapter 7. Without having serious mortgage payments, or having a very serious business, with business debt and/or serious real estate investments.... it's not that you can "pre-plan" a Chapter 7.

I'm more the Chapter 13 is the right tool for certain tasks. Chapter 7 works for most people, but I couldn't keep my investment properties in a more controlled restructuring of my debt using Chapter 7.

Chapter 13 is a restructuring tool and should be used for the task at hand. Some don't have a simple choice of "planning" to not be in one.

In the end, about 40% of confirmed Chapter 13s make it to discharge.

[LadyInTheRed]

btbeme, I agree with you that people should work for a Chap 7 if they can qualify and it suits their purposes. But some people make enough money that all the planning in the world (other than quiting their job or taking a pay cut) won't qualify them for a Chap 7. When you describe a Chap 13 as "endentured servitude", you scare people who are not able to file a Chap 7 and may discourage them them from considering a Chap 13 even though it may be an excellent solution for them. The fear generated by that kind of comment is what inspired my signature. Working to pay off my unsecured debt for the rest of my life felt a lot more like indentured servitude than my Chap 13 does.