What a BK Attorney won't tell me

[S2008]

Thanks for your advice, Epiphany. About the fraud thing, well, what can I say? Not paying your debt in itself is a big fraud, if you ask me. We can call it ch7 or ch13 or whatever. So, no, I am still for careful planning well ahead of time.

You are right about going for BK sooner rather than later. However, my dilemma is I won't qualify for ch7 with my current income. Ch13 is a 5 yr plan, which I can do on my own if the repayment plan is close to 100%. I guess I need to discuss that with a BK attorney.

Yes, I'm just able to pay my bills (living paycheck to paycheck). If that is the threshold for filing for BK, I think the number of BK filings nationally would triple in no time.

Thanks for your good wish.

"The LORD is my shepherd; I shall not want" Ps.23:1

[Flamingo]

Epiphany,
A carefully planned BK is very beneficial, where as a poorly planned BK, where one is forced into it can have minimal benefits. For instance, I've seen on this board people with close to 100% repayment plan on BK ch13. Am I missing anything here? What is the benefit of BK in this case? Couldn't they have done that without filing ch13 BK?

The new bankruptcy law that took effect in October 2005 has forced many people into filing Chapter 13 who wanted to file Chapter 7. One of the purposes of the new bankruptcy law was to eliminate increasing and rampant fraud in filing. No one really wants to file Chapter 13 (you will see all those postings on here of people trying to avoid it) because of the complexity and length of time of payments. In our situation, we filed Chapter 13 because we wanted to keep our house which, at that time, had a good bit of equity and 7 years remaining on our first mortgage. There are many benefits to Chapter 13 in that it allows one to keep assets such as a house with equity if it is possible for them financially and also eliminates interest on the debts being repaid either 100% or in a lower percentage thereof.

The more you see of various posts on here as to people in BK, contemplating BK or discharged, the more you will learn. The more one educates themselves about the process, the better it is...but as to the fraud discussion in this thread, trustees and attorneys have seen it all and are not stupid - They can see what goes on via a time period with the informatoin you will have to provide them. Some have gone back over one year if any kind of fraudulent preplanning is indicated.

[Frogge]

For instance, I've seen on this board people with close to 100% repayment plan on BK ch13. Am I missing anything here? What is the benefit of BK in this case? Couldn't they have done that without filing ch13 BK?

The benefits the I see filing Chapter 13 and paying 100% are, first and foremost, interest/fees/penalties are stopped. Also, you have protection of the court instead of being at the mercy of the creditor.

I owe CC about $68K. My payments are about $1400+ a month at the PRESENT interest - no guarantee that they will not increase. I have enough to pay a few dollars over the minimum, so I'm spinning wheels. I won't have these paid off in 60 months, and if anything goes south I'm toast.