Help!

[dylanchance]

I really don't know where to even start. I am in such horrible financial shape right now. We have filed chapter 7 about 6 yrs ago. But since then we really have had some hard times. I went back to school and now my husband and I make really good money but I don't even know where to begin with our credit. We are being sued for numerous accounts. And although we are making better money I just don't see how we are ever going to get out of this mess financially. We are being sued over dr. bills, a car we let go back, and not to mention the numerous things on our credit report. How do we ever get straightened up? How many times can u file chapter 7? What exactly is chapter 13? I just don't even know where to start!

[LSUTiger32]

This is debt that you have gotten since you filed last time? You cannot file Chapter 7 again for I believe 8 years so you have a few years before you could consider that. If you are making good money now, you need to cut your lifesytle to the bone and start trying to at least settle with some of these debts. You might be able to settle for pennies on the dollar. Maybe someone else can chime in on if Chapter 13 is an option.

[AngelinaCat]

Hi dylanchance: Welcome to the forum.

Chapter 13 might be an option for you, but I am not that familiar with it so I really cannot comment further, except to tell you to read the 'stickys' and threads on the Chapter 13 Board. Here is the link to one of them:

http://www.bkforum.com/showthread.php?t=11328

I agree with LSUTiger32 though, cut your spending to the bone. Cut up the credit cards and learn to live on cash only.

It will be at least two more years before you can file another 7.

Good luck to you.

[backtoschool]

If you filed chapter 7 six years ago it is not an option for you for another 2 years, and if you are making good money, it probably wouldn't be an option for you anyway. The laws have changed since you last filed.

Chapter 13 would be an option for you probably, but chapter 13 is very different than chapter 7 and if you make good money, they are going to try to find a way to make you pay off a large chuck of your unsecured debt. It will all depend on how your non credit card expenses come out in the schedules.

It also will depend on whether you need to protect your assets from liens and seizures. This is mainly what chapter 13 does. You usually will end up paying less money if you settle with creditors, then if you are in a chapter 13 if you make good money, but your assets are not protected from judgements and liens until you pay the creditor off.

Before I lost my job, I was considering a chapter 13. They wanted a huge monthly payment out of me, even though my expenses were high living in nyc. I never formally filed, I just consulted with a lawyer. My expenses were higher than the budget guidelines allowed. It would not have helped me much, since I didn't have a house I was trying to protect. I ended up trying to settle with creditors, but that all fell apart when I lost my job. Now I am filing chapter 7.

[JRScott]

A chapter 13 is a restructuring of your debt with a debt payment to the trustee who then distributes it first to himself, then your lawyer, then priority creditors, then other creditors. There is a certain minimum payback required.

At this time it would probably be your only option. You can't file another Chapter 7 for 2 more years.

Without more information on your income levels, bills, etc hard to make any evaluation.