Totally Confused...

[sbush]

Hello!

I am very confused about Bankruptcy at this point. I originally thought I want to to chapter 7 or nothing at all. If I have to pay back money, then why file? But, I don't think we'll qualify for a chapter 7 as it seems we'll have too much money left over on schedule j. We show an extra $200 per month when we can only have $100. (we're in Ohio)

We have 12k in credit card debt, a 6k car loan (1.5 years left), 12k car loan (4.5 years left). We also own our home with a mortgage payment of $1291 a month. So, with these debts, we pay about $2200 a month.

I also have about 50k in student loans, but I'm not quite finished with my degree so I'm not paying on them yet.

My questions are:

1. Can student loans be included in chapter 13? I always thought they couldn't, but I think from what I'm reading they just can't be discharged in a 7.

2. Will filing a 13 lower our house payment at all?

3. Do you have to be on a 5 year plan? Do they ever do a 3 year or even a 4 year?

Thank you for your help

[forgotten]

Hello!

I am very confused about Bankruptcy at this point. I originally thought I want to to chapter 7 or nothing at all. If I have to pay back money, then why file? But, I don't think we'll qualify for a chapter 7 as it seems we'll have too much money left over on schedule j. We show an extra $200 per month when we can only have $100. (we're in Ohio)

We have 12k in credit card debt, a 6k car loan (1.5 years left), 12k car loan (4.5 years left). We also own our home with a mortgage payment of $1291 a month. So, with these debts, we pay about $2200 a month.

I also have about 50k in student loans, but I'm not quite finished with my degree so I'm not paying on them yet.

My questions are:

1. Can student loans be included in chapter 13? I always thought they couldn't, but I think from what I'm reading they just can't be discharged in a 7.

2. Will filing a 13 lower our house payment at all?

3. Do you have to be on a 5 year plan? Do they ever do a 3 year or even a 4 year?

Thank you for your help

1) No, but federal student loans do not have to be paid on while in a 13. You will resume payments after the 13 is over.

2) No. If you have a second mortgage and the value of your home is less then the first mortgage you may be able to strip the second however.

3) If you are under the median income for your state it will be a 3 year plan, otherwise it can only be less than 5 if you can pay back 100% in under 5 years.

What is your primary reason for wanting to file? Looks like you only have the $12k in credit card debt you are trying to get rid of.

If your DMI is really $200/mo right now and will be higher in 1.5 years when your one car is paid off, you may have better options.

[sbush]

Exactly! I'm going around and around with my husband on this! He is wanting me to file, but I don't really want to. I want to use our income tax to pay off my one car, which will free up $350 a month. Then, I can use that to pay on my credit cards. I am glad someone else see's what I do! I guess I was just trying to justify what my husband wants. He wants instant relieft where as I can see the future...

[woeisme]

You might be able to reduce your DMI to $0 and fit into a CH 7 if you start making student loan payments. I'm in the southern Ohio district (Columbus) and the trustee allowed me to include my student loan payments into my expenses so I could actually keep paying on them throughout the CH 13 (we still had disposable income tho, so had to go 13 instead of 7).