any advantages in filling chapter 13 instead of 7?

[jo23171]

thanks for the kind words FloridaGuy. I feel better now, it just takes time to accept. I was just like you, 790 credit score. It just happened so fast, last sunday I had nothing to worry about and now 7 days later I have nothing. I never really understood why people jumped off buildings in the market crash of 1929 NOW I do.

[FloridaGuy]

Please ask friends for help

Hi jo23171,

I understand this is a HORRIBLY difficult time. I also was not irresponsible with credit, but will be filing next week. But please... if thinking of suicide contact friends, family or a therapist immediately. I understand talking with friends about your situation may seem embarasing, but people will understand. Especially in these bad financial times.

I have building excellent credit for the past 20 years. Until last month we have NEVER had a late payment, EVER. But due bad decisions concerning expanding my business (Which my wife did NOT want me to do and I did any way) and now the slow down in sales we have no choice. Not only did I risk our marriage, but I have also ruined HER credit, not just mine.

We will be surrendering our home, I will be closing the business and have no income. My wife has a job, but her income is in the poverty level. We will have nothing. We are even considering moving back in with her parents depending on the outcome. (Not a good thing in our early 40's!)

But you take it one day at a time... It will get better!

[jo23171]

well this is the hardest thing I ever went through. I didn't go on any spending spree or was irresponsible with my credit. I'll have to file because I lost all the money I had in the stock market this past week. I haven't gotten any sleep and barely ate for the past 4 days and had serious thoughts of suicide. I just hope to make through these bad times.

[Cali]

Ok, was kinda hard to get that from your post, since you said it teaches you(as in people that file BK)..that is why I posted my thoughts.

Cali,

I was just thinking about my own experience with this whole thing.

[parsoc48]

Most likely they will be closed by the lender....you really have to think in terms of NO credit while you go through this...it's much easier when you get there!
Good luck to you

[jo23171]

Thanks for all your help!! I just wanted to salvage my credit. And what happens to the CC that have a $0 balance? Do I keep them after a BK filling?

[HHM]

what happens if I keep making monthly payments on all my CC bills BUT a lot lower than the minimum payment?

OR what happens if I don't do anything and simply stop paying? Unpaid or delinquent accounts will come out of credit report after 3yrs?

There is more to it than your credit report. But keep in mind, those delinquent accounts get sold to collection agencies who "re-age" them and place them back on your credit report. You do not want to go down this road, it does not work.

Paying less than the minimum is still a default. Not paying is a default.

[jo23171]

what happens if I keep making monthly payments on all my CC bills BUT a lot lower than the minimum payment?

OR what happens if I don't do anything and simply stop paying? Unpaid or delinquent accounts will come out of credit report after 3yrs?

[fltoo]

Just Broke, now that I am closing in on the waiting period for my filing, I have been considering other options, including, maybe not filing. I have not even really spoken to an attorney about all my options yet. You seem knowledgable on business BK's.

I was thinking about a Chap 7 non-consumer.

I was a sole prop, DBA, but of course, all my charges for the business were on persoanl cc's. I figured I had to do a personal Chap 7. But, when you look at my cc statements, all the charges are obviously from business vendors.

Anyone have an idea on whether this would fly?

BTW, I had read somewhere about the % of business to personal debt, but now can't find it. Anyone know?

[chloe0724]

Cali,

I was just thinking about my own experience with this whole thing.

[Cali]

I disagree. There was a person at my 341 that filed C13 before and they were filing a C7.
And even if you file a C13, it doesn't mean something could possibly happen to make you file again. And it doesn't mean because you are learning to live w/in your means while in the payment plan that you will continue to do so after your discharge.

I think that a 13 also teaches you how to not get into trouble in the future. I wish I could have filed a 7, but I think in the end, this will work out much better for me and my family because we are forced to live within our means.

[chloe0724]

I think that a 13 also teaches you how to not get into trouble in the future. I wish I could have filed a 7, but I think in the end, this will work out much better for me and my family because we are forced to live within our means.

[liz417]

Those debt consolidation commercials sounds like a chapter 13 but instead of filling you just settle?

Those debt consolidation places try to negotiate with your creditors. Your creditors are under no obligation to work with them. Under a ch 13 bk, your creditors have to accept what the trustee has decided what the debtor can pay back.

Good Luck!

[jo23171]

Those debt consolidation commercials sounds like a chapter 13 but instead of filling you just settle?

[Flamingo]

Hello everyone,

I came to the conclusion most likely I'll have to file for bankruptcy.

the question I have is... Is there any advantage in filling chapter 13 instead of 7 FOR THE DEBTOR?

I read on some posts they both stay on your credit record for 7-10 yrs.

And the 13 you have to pay some money back. I don't get it why some people file for chapter 13 instead of 7

Your situation is the indicator of what Chapter you end up filing if you are eligible to file. Chapter 7 eliminates your debts in one swoop. In a Chapter 13, you pay back a portion of your debts, or 100%, during a period of 3 to 5 years. Most people suggest going for a Chapter 7 if you can because Chapter 13 is no piece of cake to get through for anyone, but is worth it if you have assets you want to and can protect (i.e., house with major equity). Best of luck to you!