Why a 13?

[leftyf]

I'm reading a book now from Socrates.com series called "Bankruptcy: An action plan for renewal." They seem to be promoting chapter 13 as a good thing...I don't really get it? I have income above the median with essentially no assets to protect...why would I want to file a 13? In this book, they are instructing people on ways they can convince the court to let them file 13 instead of 7...strange. Any input on this? The way I see it:

1) Credit will be harder to obtain if needed during the 5 year payback period and every move I make financially needs to go through the trustee.
2) I am paying back hard earned cash, despite the fact that someone making $6K less than me per year is paying nothing back.
3) I do acknowledge it will fall off of my credit report sooner...assuming I actually make it through the 13 (statistically speaking, a big if.)
4) From what I can tell, regardless of which chapter I file under, most mainstream creditors will consider me a major douchebag. Perhaps moreso while in a ch 13. Might as well not be paying anything if that's the respect I get...

Sorry, just another vent...anyone have positive things to say about 13?
Thanks,
Leftyf

[CATCHMEIFYOUCAN]

It just sucks, but at the same time it prevents those people who actually try to abuse the system and make them pay back all of it IF not a certain percentage of their debts.

The good thing it stops the outrageous finance charges and fees that accumulate over time.

Another thing about Ch13 instead of seeing 30-40 years of debt, depending on your plan through the chapter, you will be relieved after 3-5 years!

Just my 2 cents.

Best Wishes, Catchmeifyoucan

[lrprn]

...anyone have positive things to say about 13?

Here's a few sites that cross-compare Ch 13 to Ch 7 -

http://www.mroselaw.com/CM/Custom/Chapter-7-13-Comparison.asp

http://www.personal-bankruptcy-chapters-7-13-filing-laws.com/ch13/difference-chapter-13-7.htm

http://www.michiganbankruptcyattorneys.com/chap_7_vs_13.html

As you can see, there are a lot of Ch 13 advantages besides home and car protection - tax payment restructuring, avoiding non-secured creditor claims of fraud, filed Ch 7 and need to file bankruptcy again before 8 years, and protecting non-exempt property (luxury goods, rental property, etc) to name a few.

The way I see it, if I have no assets to protect but my income is over the median, 3-5 years in Ch 13 still looks a heck of a lot better than decades trapped in debt, court appearances, judgments, and endless collection harassment while not being able to make a dent in the debt no matter what I do.

Hope this helps see why sometimes Ch 13 is the best choice depending on the debtor's specific circumstances.

[$$only4ever]

Here's a few sites that cross-compare Ch 13 to Ch 7 -

http://www.mroselaw.com/CM/Custom/Chapter-7-13-Comparison.asp

http://www.personal-bankruptcy-chapters-7-13-filing-laws.com/ch13/difference-chapter-13-7.htm

http://www.michiganbankruptcyattorneys.com/chap_7_vs_13.html

As you can see, there are a lot of Ch 13 advantages besides home and car protection - tax payment restructuring, avoiding non-secured creditor claims of fraud, filed Ch 7 and need to file bankruptcy again before 8 years, and protecting non-exempt property (luxury goods, rental property, etc) to name a few.

The way I see it, if I have no assets to protect but my income is over the median, 3-5 years in Ch 13 still looks a heck of a lot better than decades trapped in debt, court appearances, judgments, and endless collection harassment while not being able to make a dent in the debt no matter what I do.

Hope this helps see why sometimes Ch 13 is the best choice depending on the debtor's specific circumstances.

I agree with you !00% lrprn.

[whatamess]

13 is a long, drawn out battle, but if your over the median, It sure beats debt consolidation & debt reduction. Ive never known anyone that has done either of the above and NOT ended bankrupt anyway, ripped off, sued or using a home equity loan to payoff just to get out of the program.
As mentioned, It usre beats getting sued and having obnoxious phone calls and threats every day.
If you have no assets though, it would be very annoying.
I wish we were in a situation now were we could do a 13 rather than 7, with steady good income and assets to protect. Thats just me though. With no assets I gladly take the 7.
WAM