Filed BK7 two years.. Can I now file a BK13?

[Damous]

Hi all, I have managed to get myself into an unbelievably horrible predicament. Two years ago, I was in so deep that I had to file BK7, which was discharged in Dec '06. I managed to allow myself to get trapped in the evil payday loan cycle, and it's just been snowballing over the last year and a half. Currently, I have 6 loans out. Most of them seem to be willing to negotiate, but one is not budging. They are telling me that I currently owe them around $6,000 and that that amount will, probably, double when they get their settlement. I have not been served yet, but 10 days ago, I received a letter from their attorneys saying that I should try to reach an amicable agreement or they will sue. I tried, but the owner of the company is just a jerk and refuses to negotiate.

I just cannot stand this. My stomach is in knots everyday. I live I fear that a constable will show up at my job and serve me in front of my co-workers and that my wages will be garnished by several, if not all of my creditors.

I also have old student loans that I was paying on, but then fell behind.

My main questions are:

1) If I file the BK13, can I expect the amounts of the debts (IE, interest) to be reduced or do I just have to pay what they say I owe?

2) Is there any way for me to legally demand that the payday loan company show me how they calculated the total they are saying that I owe?

3) Can I include my defaulted student loans in the BK13?

[Flamingo]

You can file a Chapter 13 (if you have income right now); you cannot file a Chapter 7 until 8 years after the filing date of the one you filed in 2006. While I hate to say this but your credit is going to be total trash with all that on your records and you may have one heck of a time as to any employment where a credit check is done. To answer your questions:

1) You will continue to accrue interest on those debts until you file. I suggest getting a consulation quickly with a few BK attorneys.

2) Did you review the paperwork provided to you at the time you signed for the payday loans? All the information you probably need should be stated in that paperwork. Read the fine print - you will be probably shocked at what they can do.

3) You will not be able to discharge your student loans. Someone more familiar with how they might be handled during a Chapter 13 can probably help you as to what they can or cannot do as to the defaulted portion.

Worrying will get you no where. Call first thing Monday morning and get some free consultations with some BK lawyers. Contacting the one who handled your BK in 2006 is probably a good first step.

[BKParalegal]

Slow down Flamingo, yes he can file a Chapter 13 now, but he will not receive a discharge. For a chapter 13 to receive a discharge, it has to be filed at least 4 years after the filing date of the Chapter 7. So, if he files a Chapter 13 and does not pay 100% of his debt, than they will come after him the day the 13 payment plan ends.

Good Luck

[Damous]

BKparalegal, in regards to paying 100% of the debt.. does that mean I pay whatever the creditor says that I owe or is there any hope of having the amounts lowered via interest rate reduction or forgiving late fees, etc? Also, how do I get the loan company to show how the total amount was calculated?

I feel like I could pay off all of my debts in 5 years, assuming the payments are structured well. My main concern is preventing any of them from suing me and garnishing my wages.

Also, I get an annual bonus from work. Will that bonus need to be turned over to the trustee or do I just need to tell them about it?

[Flamingo]

Slow down Flamingo, yes he can file a Chapter 13 now, but he will not receive a discharge. For a chapter 13 to receive a discharge, it has to be filed at least 4 years after the filing date of the Chapter 7. So, if he files a Chapter 13 and does not pay 100% of his debt, than they will come after him the day the 13 payment plan ends.

Good Luck

Slow down? From what? I advised him he could file a Chapter 13 (which he can) and told him to see an attorney. That way he can correctly find out his options as to where he stands financially and what he can and cannot do. Speaking with the attorney who handled his Chapter 7 two years ago is the best if he still resides in the same state he filed in.

If you need or want to add further to someone's posting, that's fine...there is no need to tell someone to "slow down" when there is nothing wrong with the information given.

[lindas13]

Go to credit counselors until you can file again