what if chapter 7 doesn't go in your favor?

[screwedupbyRE]

what happens when chapter 7 doesn't go in your favor? what could be the consequences? do creditors garnish wages...

any insight?

thx

[Cali]

What do you mean doesn't go in your favor?

[southernbelle]

Do you mean if your case gets dismissed?

If that is what you mean then you are basically back to square one. Your creditors get to start hounding you again and you are subject to garnishments, liens, levy's, etc.

If your case is dismissed without prejudice, then I do believe you get to refile after a certain period of time.

[screwedupbyRE]

Thx for reply.

I meant was if bankruptcy doesn't do in my favor or dismissed.

[Help!]

I'm in this very situation since we were given some bad advice about filing Ch. 7. I plan to enroll in a DMP through a credit counseling service, negotiate a deed in lieu agreement with mortgage lender and slowly, painfully, chip away at our debt. I'd still rather do this on my own than file for 13.

[Cali]

You do know that some people see DMP almost the same as C13. They both will be on your credit reports. And sometimes DMP do more harm than good.

I'm in this very situation since we were given some bad advice about filing Ch. 7. I plan to enroll in a DMP through a credit counseling service, negotiate a deed in lieu agreement with mortgage lender and slowly, painfully, chip away at our debt. I'd still rather do this on my own than file for 13.

[MomIcantFindmy]

I'm in this very situation since we were given some bad advice about filing Ch. 7. I plan to enroll in a DMP through a credit counseling service, negotiate a deed in lieu agreement with mortgage lender and slowly, painfully, chip away at our debt. I'd still rather do this on my own than file for 13.

Curious? Why would you do a DMP and "possibly" have problems with credit companies. You already have the BK on your credit regardless of what you do. It would seem to me that a 13 might better serve your interests. You would have the protection of the courts from creditors seeking liens and garnishments. Stuff you would not have in a DMP.

[FreshLikeADaisy]

Help, I have to agree with Cali and Mom -- if your DMP includes all creditors, and they do make your payments as agreed, and they don't pull the normal business of withholding your payments in order to make your creditors more amenable to a settlement agreement, then perhaps you might do okay.

But honestly, if you already have the bk on your credit report, you might as well avail yourself of the many benefits of a Ch13 that you simply can never have with a DMP. The automatic stay, set payments, set time schedule, GUARANTEED creditor participation, the assurance that your payments go exactly where your plan says they will, WHEN it says they will, etc. Not to mention the fact that, once you're in a 13, you can refile for 7 whenever you become eligible for it: this is an additional safeguard against future changes in income and circumstances that again, you just don't have in a DMP.

There are many people here who tried the course you are suggesting, and ended up much worse for the experience, and in bk anyway. I honor your decision -- you have to do what's right for you -- but honestly, your protections and guarantees in Ch13 far, far outweigh the dangers of a DMP. Please do consider all these factors carefully before you make out the check: it had to be pretty bad for you to consider bk, but it can actually get much worse with a DMP and I would hate to see that happen for you. Good luck!!!

[Cali]

Great post!!

But honestly, if you already have the bk on your credit report, you might as well avail yourself of the many benefits of a Ch13 that you simply can never have with a DMP. The automatic stay, set payments, set time schedule, GUARANTEED creditor participation, the assurance that your payments go exactly where your plan says they will, WHEN it says they will, etc. Not to mention the fact that, once you're in a 13, you can refile for 7 whenever you become eligible for it: this is an additional safeguard against future changes in income and circumstances that again, you just don't have in a DMP.

There are many people here who tried the course you are suggesting, and ended up much worse for the experience, and in bk anyway. I honor your decision -- you have to do what's right for you -- but honestly, your protections and guarantees in Ch13 far, far outweigh the dangers of a DMP. Please do consider all these factors carefully before you make out the check: it had to be pretty bad for you to consider bk, but it can actually get much worse with a DMP and I would hate to see that happen for you. Good luck!!!

[FreshLikeADaisy]

Thank you! Except when I reread it, I saw I had screwed up the entire first paragraph and was saying the exact *opposite* of what I meant... *laugh* At least now it's fixed!!!

[laurannm]

Help, I have to agree with Cali and Mom -- if your DMP includes all creditors, and they do make your payments as agreed, and they don't pull the normal business of withholding your payments in order to make your creditors more amenable to a settlement agreement, then perhaps you might do okay.

But honestly, if you already have the bk on your credit report, you might as well avail yourself of the many benefits of a Ch13 that you simply can never have with a DMP. The automatic stay, set payments, set time schedule, GUARANTEED creditor participation, the assurance that your payments go exactly where your plan says they will, WHEN it says they will, etc. Not to mention the fact that, once you're in a 13, you can refile for 7 whenever you become eligible for it: this is an additional safeguard against future changes in income and circumstances that again, you just don't have in a DMP.

There are many people here who tried the course you are suggesting, and ended up much worse for the experience, and in bk anyway. I honor your decision -- you have to do what's right for you -- but honestly, your protections and guarantees in Ch13 far, far outweigh the dangers of a DMP. Please do consider all these factors carefully before you make out the check: it had to be pretty bad for you to consider bk, but it can actually get much worse with a DMP and I would hate to see that happen for you. Good luck!!!

Nice post! While a Ch 7 is definitely the preferred route, a Ch 13 isn't the end of the world either. Your debt is guaranteed to be gone in 5 years, no phone calls from any creditors, no interest rates to worry about, fixed payment, etc. Lots of benefits to a Ch 13. Being in a Ch 13 doesn't mean you are living on bread and water every day

[JRScott]

OP: If your case is dismissed without prejudice you can file again in 6 months. If your case is dismissed with prejudice you cannot file agaiin on those debts ever.

In either case you are back to square one and all the creditors will come after you, though in the first case you can seek relief again in 6 months.

HELP: I would strongly suggest converting to a CHapter 13 rather than a DMP if you have to. After all the 13 can always later be converted to a chapter 7 if things get worse, the DMP would just cut you lose and you'd be on your on.

[justplaintired]

I'm in this very situation since we were given some bad advice about filing Ch. 7. I plan to enroll in a DMP through a credit counseling service, negotiate a deed in lieu agreement with mortgage lender and slowly, painfully, chip away at our debt. I'd still rather do this on my own than file for 13.

Be very careful those DMP can be a nightmare. We were told by a collection agency that the money they take in the beginning just covers their fees, nothing will go to your creditors and she told me that the fees would run into the $1000's. She told us if we went that route we can do anything they will do for us ourselves, so be careful. Remember if we were good at money managing most of us wouldn't be here. I hope you will talk to a few more attorneys, yours did you so wrong, you should look into malpractice on the one you used, or whatever it's called when a lawyer screws up as bad as yours did.

Basically what freshlikeadaisy said is what a collection agency told us, now remember this was a bill collector encouraging us into BK. Advising against DMP. Atleast with a C13 you have protection for bill collectors. Without that protection you could be looking at lawsuits and garnishments.

[southernbelle]

I'm no expert, but Help if you try to enroll in a DMP, isn't it vountary by your creditors to participate, whereas a chapter 13 gives you court protection and a guarantee with a fixed payment amount and duration while making payments through the plan?

Do a search on this forum before you try it because I've heard as many horror stories about DMP's as I've heard about payday loans. I even heard where one DMP filed BK themselves because they were too top heavy.

Just some food for thought.

[nomoretogive]

If the Chapter 7 is dismissed with prejudice does that mean you cannot file under Chapter 13? That would really blow. I guess this is my worst case scenario nightmare.