wewe Posted December 8, 2015 Report Share Posted December 8, 2015 Does anyone out there have any experience with filing chapter 13 BK, and if so, pros/cons, good or bad that you've happened upon during the 5 years. We've tried so hard to stay out of BK and it seems like it is becoming inevitable, and it's very scary and I'm just not convinced that's the route I need/want to go. Any insight would be greatly appreciated. Quote Link to comment Share on other sites More sharing options...
nobk4me Posted December 11, 2015 Report Share Posted December 11, 2015 While I don't have experience with a Chapter 13, I have read that most of them (about 2/3) end up failing. Because the payment plan can extend for 5 years, and things can happen, like job loss or illness, that make it impossible to keep paying. Could you explain your situation, in general terms? Such as total amount of debt, number and types of creditors, with OCs or JDBs, legal status of debts (any judgments?). There may be alternatives to BK. If you have credit card debt with arbitration clauses in the agreements, you have a good chance of defeating the creditors using arbitration, especially if the accounts are with JDBs. Quote Link to comment Share on other sites More sharing options...
wewe Posted December 12, 2015 Author Report Share Posted December 12, 2015 We went to see a consumer atty. about a debt that was sold to a JDB, (15,000). We have 2 debts that have been charged off with chase, and we received a 1099 this past year, and claimed insolvency. We have about 20,000 in other debt, and 1 judgement that we pay 100 a month on. I know it sounds really bad, but we have been trying really hard to stay out of BK, and I'm not comfortable with 13. For exactly the reasons you stated. My husband is 65, and 13 means he would have to work for at least another 5 yrs. I'm guessing the JDB is going to sue, and yes we do have an arb. clause that we've requested. Still waiting to hear, but the problem is, my husbands work is sensitive to law suit, etc, and we are trying to steer clear of all of that. I don't think chase will come after us, because of all of their problems they have had, and I hate to wake them up with a chapt. 13. We are 4 yrs. into a 6 yr. sol. I feel like 13 would open up a bunch of new problems, and we are starting to clean up our past, (slowly, but heading in the right direction). From what I've read, I just feel like it would ruin us for a lot of reasons, and I'd really like to continue on the path we are on, but the BK atty. really hit us hard with 13. (big surprise). Quote Link to comment Share on other sites More sharing options...
despritfreya Posted December 12, 2015 Report Share Posted December 12, 2015 Why a 13? Too much income for a 7? Some non-exempt asset to protect? Des. Quote Link to comment Share on other sites More sharing options...
wewe Posted December 12, 2015 Author Report Share Posted December 12, 2015 too much income right now for a 7, which is why we've been trying so hard to get back on track. If my husband lost his job we would go right to a 7. Quote Link to comment Share on other sites More sharing options...
nobk4me Posted December 12, 2015 Report Share Posted December 12, 2015 If your husband is 65, is he planning to retire soon? If so, then you could do a Ch. 7. By the way, if you think your situation looks bad, mine was much worse. I have only been sued 3 times (out of a total of about 20 accounts), and I beat 2 of the suits and have a very reasonable payment plan on the third one. No BK filed yet. And I always have that option if necessary. You should be able to defeat the JDB with arbitration. And look for a real consumer attorney, one that sues collection agencies for FDCPA violations, not just one that pushes you to do a BK. If you sue a CA, you will get on a list called Web Recon, which will make the creditors much less likely to sue you. This consumer firm practices in Michigan: http://www.fairdebtcollectionhelp.com/ 1 Quote Link to comment Share on other sites More sharing options...
wewe Posted December 12, 2015 Author Report Share Posted December 12, 2015 he really wasn't planning to retire for another couple of years, (need the money), but hate the thought of "having" to work until 70 if we file 13. Thanks for the tip on a consumer lawyer. I hate getting pushed into things when I don't know all of my options, and someone tries to convince me what is best. That's why I wondered if anyone had any experience with 13, but the more I'm hearing and reading, it does not sound like something I want to do. My gut is telling me to stay away, and eventually if we have to file a 7, then we'll do that, but I just feel a 13 is going to create more problems, rather than solve them. Quote Link to comment Share on other sites More sharing options...
nobk4me Posted December 14, 2015 Report Share Posted December 14, 2015 My experience is always follow your instincts, aka gut-level feelings. If your gut is telling you something isn't right for you, it probably isn't. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.