Ch 13 VS 7

[schel]

I know this has been asked before, but can not find the thread.
Which do you all think is better 13 or 7?
Or if someone finds the thread, please post a link for me.
Thanks.
Schel

[HHM]

There is no better or worse. If you need to file BK, you file the chapter that you qualify for and best meets your individual circumstances. (the way the new law is written, you don't really get to "choose" which chapter you file).

[schel]

Thank you.
Schel

[keepmine]

No question, a Chapter 7 is far preferable to a 13. In 90-120 days it's over with the stroke of a pen. A 13 will drag on for 5 long years.

[diviaruba]

No question, a Chapter 7 is far preferable to a 13. In 90-120 days it's over with the stroke of a pen. A 13 will drag on for 5 long years.

But that could be the 5 years you need to make up the arrearages on the home you wish to keep, or protecting equity in that same home that would make it inopportune or impossible to file for Chapter 7 without losing said home or other non-exempt assets.

It's all in what works for you.

[Flamingo]

Prior to the new law going in effect in October 2005, the main reason folks filed Chapter 13 was to keep their house and the equity therein. However, depending on circumstances, that may not have been the best way to go and many plans failed. Things were tidied up a bit with the new law. We have actuallly been informed by mortgage brokers and creditors (during our refinancing and new vehicle purchase) that a Chapter 13 is favored over a Chapter 7 because in a 13, there is at least some sort of payback of all or a portion of the debt owed wherein with a Chapter 7 the debt is wiped clean. This shows in the length of time a Chapter 13 is reported on credit reports compared to a Chapter 7. A Chapter 13 is reported for 7 years from the date of filing and a Chapter 7 10 years from the date of filing. A preference is shown right there. However, one should not look at that if one needs to file bankrtupcy of either Chapter because what is important is what is going on right now and not several years down the road.

[FreshLikeADaisy]

Schel, one thing to remember is that while many people prefer a 7 over a 13 for the reasons stated above, that fact of it is that if you file a 13 you can convert at any time to a 7, provided that you qualify for a 7.

Both 7 and 13 invoke the automatic stay for as long as you are in bk: in other words, filing either chapter stops all collection efforts on the part of creditors, including lawsuits, letters and phone calls, the whole bit.

To me, Diviaruba and HHM got it exactly right: it's not what chapter is best, it's what chapter is best for YOU. Personally, I wish you the very best -- when I read one of your "No tough love, please!" posts it just breaks my heart, because I've been there, where even the smallest sharp word would send me into a tailspin no matter how well meant. You have been in my prayers, and I truly hope it all works out for you very soon.

[JoeBlow]

Chapter 13 is the biggest rip-off in the world. Unless you own a house you are trying to keep, you are better off dodging the collectors and trying to settle with a lump sum down the road or letting them garnish your wages. In most states the garnishment is less than what they would take in Chpt. 13.

And if you are laid off in the future from work you could qualify for Chpt. 7 and wipe out the debt completely. The only people pushing Chpt.13 are the attorneys who make a lot of money scaring people into it.

Chapter 13 is a hoax put over the people by the financial community.

[HHM]

Chapter 13 is the biggest rip-off in the world. Unless you own a house you are trying to keep, you are better off dodging the collectors and trying to settle with a lump sum down the road or letting them garnish your wages. In most states the garnishment is less than what they would take in Chpt. 13.

And if you are laid off in the future from work you could qualify for Chpt. 7 and wipe out the debt completely. The only people pushing Chpt.13 are the attorneys who make a lot of money scaring people into it.

Chapter 13 is a hoax put over the people by the financial community.

Interesting opinion, very short sighted and ignorant, but interesting none the less

[keepmine]

I'm no fan of 13's but, as HHM and Divaruba pointed out-if you have assets to protect above the exemption level of your state, you may have no choice. Not a ripoff by any means.

[FreshLikeADaisy]

I'm no fan of 13's but, as HHM and Divaruba pointed out-if you have assets to protect above the exemption level of your state, you may have no choice. Not a ripoff by any means.

For what it's worth, I'm completely agreed. 100%.

[schel]

Thank you everyone, been busy helping plan a benefit for a friend diagnosed with cancer. There I go again helping out others and ignoring myself. I'm just that way!
Thanks again. Thank you to those keeping me in your prayers!
Schel