This idea keeps popping in my head, tell me if I am crazy.

[optimistic1]

I keep getting this idea in my head about having my wife file a Chapter 7 without me on the petition, and then after she is discharged, I will then file my Chapter 13 by myself to rid my debts. The reason I need to do a 13 is because I filed a Chapter 7 less than 8 years ago by the way.


My reasoning is this.

We have been getting letters now from law offices and third party collectors. I want to quickly rid ourselves of them.

I would like to be able to fall back on my wifes credit just in case we need to buy a new car while I am doing my Chapter 13. I always hear about people not being able to get financing. She would not be in the 13, and would have just a Chapter 7 discharge on her report which is less significant.


I can afford it, because I already paid our attorney the same fee that he charges for a Chapter 7. And when I file my Chapter 13, I have a legal plan through my employer that pays for the upfront charges, with no cost to me.


The car issue is important to me, because we only have 1 car, granted it is good condition, and is still under a very good warranty, with only 56k miles on it. But you never know, it could break down, or get stolen, or get totaled in a wreck.

Let me know what you all think about this scenario I have dreamed up.

[lrprn]

I would like to be able to fall back on my wifes credit just in case we need to buy a new car while I am doing my Chapter 13. I always hear about people not being able to get financing. She would not be in the 13, and would have just a Chapter 7 discharge on her report which is less significant.

Frankly, for 2-3 years after your wife's Ch 7 is discharged, she will not get good credit offers. To some banks and credit unions, Ch 7 is actually worse than Ch 13 because in Ch 13 typically the creditors at least get something back. Also 13ers get five years to demonstrate on-time payments so have a quicker recovery to decent loan rates after their 13s are discharged.

I can afford it....

If you can afford this, why not just buy a reasonably decent car now before filing? Seems like a lot of shenanigans to end up in a situation where the potential savings overall would be minimal (if any) over the long run.

[optimistic1]

When I said I can afford it, I meant I could afford to pay for both fees for each bankruptcy, not the auto loan.

But dont you think the ability to get a new auto loan while in a Chapter 13 is very difficult as opposed to being able to fall back on just her credit to obtain a new car loan with just a Chapter 7 BK showing up. I bought the car we own now months after a Ch.7, and was able to obtain easy financing and 0 down. Im afraid of the idea of trying to get a new loan while both of us are in a Chapter 13, it seems as though it is almost impossible to get financed, in the event that our current vehicle breaks down/stolen/wrecked.

[ccfriend]

When I was at my lawyer visit a year ago there was a couple there and the lawyer was having one file 13 and the other file 7 at the same time.

[optimistic1]

interesting!

[CH33 Paralegal]

1. Who's name is the car in and who's name is the debt in?
2. A BK is a Bk on your credit report.
3. Can you wait until 8 years after your last one? How long ago was it?
4. What is the HH income like? What's being surrendered and what's being retained?
5. What other type of wealth do you possess? any R/E of any type? any rights to anything?