Chapter 7 question

[nbmich78]

Hi,
I filed Chapter 7 in March 2003-Discharged June 2003.
I worked hard to build up my credit since then but unfortunately lost my job and havent been able to pay any of my creditors in over 18 months now.

I think my best option is to file for Chapter 7 again.
From my understanding, the timeframe that one can file again was 5 years
as of when I filed in 2003. However I've been told that under the new bankruptcy laws, this has now changed to 8 years instead of 5?
Is this true?
Would this law apply to me, even if I filed before the law was changed? Shouldn't my 2003 bankruptcy be grand-fathered in under the old law?

It doesn't seem very fair if this isn't the case. I've asked some local
Attorney's , but none of them seem to give me a straight answer.
And some have told me to file Chapter 13 instead. This would be an option, but I dont feel that it's a good idea... simply because I can't afford a payback plan at all. I used to make $55k at my old job but now I only make $25k. I don't own a home or any property. No assests. I live in Connecticut.
Any advice or answers you can provide would be greatly appreciated.
Thanks, Nick

[StartingOver08]

Yes, under the new law your Ch 7 bankruptcy must have been discharged more than 8 years ago to file another Ch 7.

If you want to file a Ch 13, your discharge must have been at least 4 yrs ago. That is why the attorney suggested Ch 13 for you.

Yes, this law applies to you - there is no exception for repeat filers old law/new law.

[nbmich78]

more questions

Thanks for your reply and info. I have a couple more questions if you don't mind. Lets say I file Chapter 13 now. What would they do as far as repayment of debt since I litterally don't have much , if any, disposable
monthly income?? Would I still qualify for a discharge?

Also, if I file Chapter 13 now....would I be able to file Chapter 7
in 2011 (when my 8 years is reached since the last filing)
and go bankrupt on the remaining debt including the Chapter 13
repayment arrangement?

I just need to figure a way to get a new start. I am now being sued
in small claims court by capital one. I really need them off my back.
I wish I had the money to pay, but I just don't.
Not to mention I have another 8 cards that havent been paid in over
18 months as well as a balance of $9k on a vehicle repo.
It seems hopeless.

[StartingOver08]

Have you checked your exemptions in Connecticut? If not, here they are:

http://www.legalconsumer.com/bankruptcy/state_bankruptcy_info.php?st_fullName=Connecticut

Also, are you below median income or above median income? I could only find the 2008 chart right now, but you may have had a change in median income this year, 2009 already. Here is the link I found: http://www.211ct.org/InformationLibr...Income2008.asp

Have you worked your budget as if you are going to file a Ch 13? There are such things as 3 yr plans with zero going to unsecured!!! You have to think positive. Don't think that you are blocked from getting rid of this debt because of the prior filing.

Also, there is such a thing as Filing a Ch 13 and then if you are not able to complete it, having it convert to a Ch 7. But really see if you can qualify under the 3 yr plan with zero to unsecured or something similar. There would be a plan payment but it would be small (Trustee fees, attorney fees, administrative fees, filing fees, taxes, if any and little to none for creditors). It is something to research on this forum in the Ch 13 section.

[nbmich78]

Ok, thanks a bunch for the info. I didn't know about the unsecured debit and zero payments. Right now I have a family of five and we are living on
$40ka year because I lost my old job...so I think I would qualify, because I can't afford much of a repayment plan. I was just worried the Judge wouldn't allow the Chapter 13 since I don't really have a lot of income to actually make
a repayment plan. Honestly, at this point I am lucky to have $100-$200 left over at the end of each month. I don't have any assets at all, no real estate, no savings, no 401K. And all the debt I have is unsecured credit cards. So I will take your suggestions and look into this more. Then I just need to find a local Attorney that deals with Chapter 13 full time and knows exactly what they are doing. Thanks again...I won't give up, yet lol

[StartingOver08]

Ok, you are way under median income for Connecticut!

That's good for you because you are eligible for the 3 yr plan. Just make sure you get an attorney that knows what he is doing with the budget. We usually recommend staying away from the BK mills as they are there just to collect fees and do not necessarily have your best interests at heart.

Check out JustBroke's posts - he is very creative with the Ch 13 plans. His debt was larger and his income larger so his payment is larger - but the concept is the same.