Confused by rought draft we got?

[freshstart32]

Our attorney finally sent us a rough draft of what he will be filing. We haven't gotten the actual copy in the mail because we moved over the weekend and we had our mail forwarded and it hasn't kicked in competely but he sent me a copy of it by email.

When we met with him he told me that our income was over the median income for Indiana by $8,000 (I think it's $65,000 for a family of 4) but that he was going to check it with our county because we live in one of the most expensive counties in Indiana and that it can play a factor in filing because it costs so much to live in this county.

Well he had told us it would more than likely be a Chapter 13 unless the county thing played into it and then I got the rough draft and he has us filing a Chapter 7. I don't know whether I should be happy about that or what? I mean I was prepared to do a Chapter 13 and make the payments to the court. I guess I am worried that what happens if we go to our meeting and stuff and they say we can't file a Chapter 7 I mean he wouldn't try to when he knows we can't would he? Would he charge more money? Can it be changed over to a Chapter 13 if they say we can't do a Chapter 7? Isn't a Chapter 7 worse on you then a Chapter 13?

Sorry so many questions, I just didn't expect it to be a Chapter 7.

[keepmine]

A Chapter 7 is a complete liquidation to unsecured creditors. Why is that a bad thing from your perspective?
If you don't qualify for a 7, you may convert the filing to a 13 and yes, there will be more legal fees in a 13 as opposed to a 7.
File the 7 and see what happens.

[lrprn]

Isn't a Chapter 7 worse on you then a Chapter 13? Sorry so many questions, I just didn't expect it to be a Chapter 7.

Many people feel that a Ch 7 is better because your non-secured debts are wiped out and you can restart with a fresh slate in 90-120 days from filing to closing. Ch 13 is a much longer process - typically 60 months long - and currently the chances of finishing a Ch 13 successfully is running at about 30% . Lots of stuff can happen in 3-5 years - illness, job loss, big car repairs, etc - and there's no extra income available to deal with it - it's all going to your trustee. It's a tough ride if you don't have to take it.

If you'd like to see the differences between Ch 7 and Ch 13, check out these links -

http://www.mroselaw.com/CM/Custom/Chapter-7-13-Comparison.asp

http://www.personal-bankruptcy-chapters-7-13-filing-laws.com/ch13/difference-chapter-13-7.htm

http://www.michiganbankruptcyattorneys.com/chap_7_vs_13.html

Hope this helps!

[freshstart32]

I see......I don't know why I thought that a 7 was worse than a 13 other than I had heard that it lasts longer on your credit and looked worse on your credit than a 13 since on a 13 you were making payments and possibly paying back a portion of your debt.

I am new to all of this so I have no idea about any of it. Just from reading this message board and doing some online research. Thanks for your answers! I am just glad I have somewhere to go to ask questions.