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Chapter 13 is no bargain.

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    #1

    Chapter 13 is no bargain.

    Trying not to complain about it all, but Chapter 13 is looking more and more like a no bargain situation.

    When compared to a 7, its a no brainer.

    And when I look at what I am paying into the plan vs. the assets I kept (an underwater home), it is making less and less sense.

    What really gets me is that the public thinks that when you file BK, your life is great and you have a new start.

    This 13 is not giving me the new start that I wanted because the payment is high and I am tied down to the plan for another 4.5 years.

    At times, I want to quit my job, and wait six months and file a 7!

    Just venting.
    thanks.
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    #2
    The new law passed and changes made in October 2005 forces more people into a Chapter 13 because it has been determined they can pay for part or most of the debt they owe. Most people file Chapter 13 to save assets even though they can't really afford to keep them and end up having their plan dismissed several months down the road. Quitting a job to plan to file a Chapter 7 should not be taken lightly because in this economy, unless you are in the medical profession with a degree, there is no guarantee you will find another job and bankruptcy does not solve employment or cash flow problems.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006
    "A credit card is a snake in your pocket"

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      #3
      Perhaps filing ch. 13, and keeping an underwater home, were not in your best interest. I don't know your details - but its never too lat to sit down and review things with your attorney. Quitting your job seems a bit extreme...
      Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
      (In the 'planning' stage, to file ch. 13 if/when we have to.)

      Comment

        #4
        Originally posted by SMinGA View Post
        Perhaps filing ch. 13, and keeping an underwater home, were not in your best interest. I don't know your details - but its never too lat to sit down and review things with your attorney. Quitting your job seems a bit extreme...

        Yes, I agree. Quitting the job is stupid.
        As for the home, it is about the same as renting. And, even though I have no equity now, in ten years (unreal it has to take that long) I will have equity.

        Its just frustrating. Perhaps pushing to a 7, if it becomes available, would be a good move.

        Comment

          #5
          I hear you brother and feel exactly the same way.
          It's debtors prison by another name.
          filed chapter 13..confirmed...converted to chapter 7...DISCHARGED!

          Comment

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