please clarify...

[floridian]

if you get roped into a chapter 13 and say you have a payment plan for 60 months... since its ongoing, will you still be in limbo for buying a house, car or whatever, during the duration of the plan?

[justbroke]

Yes and no.

In order to acquire new debt, you need to have permission of the Trustee and the Court. It doesn't happen often, but sometimes, people need to incur new debt for a variety of reasons. The Trustee and Court review is to make sure you can afford it -- and still support your Plan.

[chloe0724]

and in today's credit market, it will be almost impossible to get credit.

[floridian]

this is looking better all the time.... it looks to me like a 13 is just plain misery..

[justbroke]

this is looking better all the time.... it looks to me like a 13 is just plain misery..

A Chapter 13 can be misery for the following people;

1. People who can't live within a budget;
2. People who filed pro se (caveat: who didn't create a workable Plan)
3. People who don't want to change
4. People who are compulsive gamblers (who haven't sought help)

[broncho14]

I have a Gambling Problem but I have sought help and I have not gambled since I have been in my 13. This sounds weird but my 13 has been the BEST thing to happen to me financially. I have to live within a budget, I have had to change and it has helped me to have even more motivation to not gamble. I am able to make it month to month and I am even able to save a little. I do not live large. I live within my means and I have enough, even after my 13, to do well. I would be miserable if I was still gambling. I could not make it. However, I have made some changes and I am a lot more careful with my money. I do give a lot of credit to my attorney. He was able to negotiate with the trustee and he was very effective. I am learning all the time and I am a better person for going through this. (I don't want to do it again but so far it has helped me).

[HHM]

I agree with Justbroke, its only misery because you are looking at the short term.

I would say that for more than 50% of Americans, it would be IMPOSSIBLE for them to be debt free in 60 months, Guess what, a chapter 13 accomplishes that goal. Getting out of debt allows you to accomplish other goals, i.e. save for retirement, etc.

Lose your short term mind set, get on a budget, and a chapter 13 is a god send.