anicholson75 Posted March 27, 2007 Report Share Posted March 27, 2007 We met with an attorney to discuss BK on Friday, and are trying to decide between 7 and 13. I'm leaning toward 13 because it's a little more favorable on the CR, and recover time is better. We have $66K of unsecured debt to discharge. We can pay for somel of the attorney fees for CH 13 now, but CH 7 would take a long time, as they won't file until your pay the attorney off in full. CH 13 we can file right away, as they roll some of the fees into the CH 13payment plan. My question is: if we file 13, our monthly living expenses, which are a bare minimum as it is, do not allow for much to go toward the payment plan. I think our attorney said our payment would be approx. $100/mo for 3 years, and most of that was his fees, so basically only $1000-1500would go to paying our creditors back. Does this sound right? We qualify for CH 7, but in the interest of filing sooner rather than later and CH 13 being a little more favorable, I prefer 13. How exactly do they determine what your payment is monthly if you don't have anything left over every month to pay out? Sorry so long! Link to comment Share on other sites More sharing options...
bingo Posted March 27, 2007 Report Share Posted March 27, 2007 You are making a huge mistake in passing up a Chapter 7 because it looks better on a credit report.Post bk filings require credit cleanup regardless if it's a 7 or a 13. Claenup will be faster in a 7 because, it's over in 90-120 days.Your concern should be in discharging that $66K debt and starting fresh by fixing whatever caused this problem. Establish savings and learn to live below your means.Stop paying unsecured creditors and use those funds to pay your attorney. Link to comment Share on other sites More sharing options...
mattandallismom Posted March 31, 2007 Report Share Posted March 31, 2007 Hmmm... Those figures don't seem very accurate to me. My wages were attached for 3 years at 230 a month and mine was around 10,000.00.(I kept my car so it wasn't all unsecured debt) You may consider a second opinion on what you should file and have another attorney work some numbers up.The laws changed after I filed so I may be wrong but I thought you had to pay at least 10% of the unsecured debt in the chapter 13. I'm not sure about the chapter 13 looking better than the 7. It looks pretty bad either way. Link to comment Share on other sites More sharing options...
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