Chapter 13 with a previous Chapter 7

[Airmech]

Due to the Mortgage Crash, I unfortunatley may have to file a Chapter 13, I had a previous Chapter 7 discharged in 2003. I know I can't file a 7...

I spoke with an attorney today, and after I got my lecture for not properly managing my money, he stated that I would not be able to discharge any debt in a 13 because it has been less than 8 years since the 7. Everything I read (unless I'm reading it wrong) states that debt can in fact be discharged if it has been more than 4 years since the 7.

This is very frustrating, and not a situation that I thought I would ever find myself in again. I certainly don't take this lightly, but If I have to pay back 100%, I think I'm better off rolling the dice and seeing if I can settle, or negotiate debts myself.

We actually did very well rebuilding after our 7, but the inability to refinance a 1st and 2nd mortgage into one loan at a lower rate has caused us to use other means for necessities, as well as borrow from 401K (I know...I know), but I was trying to avoid this at all costs.

Sorry for the rant, but I didn't need a lecture, I just need someone who knows the facts. I think I'll have to interview other attorneys and keep reading. By the way, the Hope for Homeowners Modification's are a complete joke, at least our bank hasn't a clue. I'm in GA if that matters.

Thanks in advance for any responses!

[justbroke]

You need to shop for some more attorneys. I recommend interviewing at least 3-4 more. Remember, you are the boss.

Yes, you may receive a discharge in a Chapter 13 if the time from when you received your Chapter 7 discharge until the time you file your Chapter 13 petition, is more than 4 years!

The 8 year bar is if you were to file another Chapter 7.

Since this attorney apparently only does Chapter 7s... you need to find an attorney that does Chapter 13, and that you feel comfortable with.

Best of luck to you.

[Airmech]

Thanks for the quick response. Apparently this guy just wanted me to go ahead and file with them. I'm not taking this lightly, I've certainly learned, but unfortunately "it is what it is..."

[overspent]

Should be no problem

I am in the same boat. Chapter 7 discharged in 2005, ready to file chapter 13 in 2010. Talked to 2 attorneys, one is my old chpater 7 att. and no body indicates there would be problem. You definitely should shop for another attorney. This guy shoyldn't be lecturing you in the first place. You're bringing in business. Jerk.

[Airmech]

Thanks...I'm fairly adept at reading and deciphering things for myself, and it just didn't seem right, plus I don't need a lecture or anyone looking down on me. This is certainly not a proud moment. I wished it were different.

So, your attorney doesn't see any problems not having a 100% funded 13? The guy I spoke with today told me that If I couldn't come up with 1000-1200 for the 13 payments that it wouldn't work, and when the 13 was over nothing would be discharged, and they would come after me with full interest, penalties, and such.

You know, I didn't ask for the Housing Crash, but it has deeply affected us. I thought our financial battles were over years ago. He also stated that since my wife doesn't work (5 kids...Our Choice) that she would most certainly have to get a job. She's looked, and at minimum wage, there really is no point. I'm sick to death of folks looking down on others caught up in this mess. I desperately want to pay back everything I owe, and we are currently not behind, but the well is dry. The banks have raised most of our rates to nearly 30% on CC's, with NO lates...Unbelieveable. They are funding their recovery from the TARP funds by really sticking it to the consumers. Now it's time for me to make a financial decision that allows me to care for my family

Thanks for the kind words!

[justbroke]

Again, your attorney is smoking something.

[bkstuff]

Airmech,
What did you end up finding out about CH 13 after 7? I hope everything worked itself out and that you found a good attorney.

[optimistic1]