Cancel Ch 13?

[mrbojingles]

What are the ramifications of not going through with the Ch 13 bk... I know funds would be lost to the lawyer.. but there is a situation where we might be able to borrow the 35k from a very good friend who has more money than he knows what to do with... I could pay him back with the money that would have been earmarked for the tt.. Surrendering house ... possible DIL..

Thoughts? Anyone ever done this?

[lrprn]

What are the ramifications of not going through with the Ch 13 bk...

If you've already filed, then yes, you can voluntarily dismiss your 13. However, the damage to your credit by filing is already done. Dismissing the 13 does not change that. The bankruptcy filing will remain on your credit reports for ten years (not seven) because you didn't complete the 13 successfully.

If you haven't filed Ch 13 yet, then I would think long and hard about borrowing that much money from a "very good friend". That could end up a disaster if something unexpected happens and you can't pay the friend back. That's the fastest and most certain way to lose a good friend there is. It will put a tremendous strain on your friendship and, in the end, could destroy it. Are you willing to take that chance?

And frankly, what's the difference between paying back your friend and paying the trustee? At least paying the trustee you aren't risking an important friendship, you won't have to jump the DIL hoops, and you can legally hold your creditors at bay. You've already trashed your credit with all the debt, and if you've already filed, it's even more trashed.

What are you trying to avoid by consolidating your debt by borrowing from your friend rather than filing a 13?

[AngelinaCat]

And I will add to lrprn's excellent post: borrowing money from a FAMILY member is the surest and quickest way to destroy family relationsips. We've been there and done that!