Chapter 7 or 13

[Bubba1024]

Hi all!

new here and stressed! Any feedback is much appreciated for filing for 7 or 13

[justbroke]

Welcome to BKForum. Do you have a specific question? There are lots of folks here that will be happy to answer any question that you may have.

[Bubba1024]

In a nutshell, post covid our mortgage hardship increased almost 900 a month which was zero help along with mounting credit card debt. I fear chapter 13 will be impossible to pay back debt , along with missed mortgage payments. It would bring our mortgage payment back to original. But chapter 7 seems more doable but now not in the long run.

[Backagain]

You need to consider 2 major things (and a bunch of smaller issues)
the first one is…do you pass the means test? If you do not (meaning you are deemed to have sufficient income to pay your debt), then chapter 7 would not even be possible.
second, what do you have in assets that you cannot protect and so would lose in chapter 7. Many people do a voluntary chapter 13 because they have assets they want to save.

I suggest you have a talk with a couple of BK attorneys to figure out what you need to do considering your circumstances

[mormand]

I may not qualify for a Chapter 7 currently with high income. I might have an opportunity for a much more exciting job that is in a field I've always been interested in. The downside is that it is much lower pay. The silver lining is that this new job with a much lower salary would probably qualify me for Chapter 7 vs a Chapter 13. Is there any reason why I shouldn't take the job and see if I qualify for Chapter 7?

Thanks

[flashoflight]

If you're behind on your mortgage, the chapter 7 will not help you save your house from foreclosure although your personal liability will be wiped. Chapter 13 will save your house from foreclosure, but only if you have high enough income to pay both the arrears and the ongoing mortgage payment every single month with no lates for 5 years. Sometimes you can make too little income to make a bankruptcy successful. If you're fine with losing your home, then maybe chapter 7 and the low paying job will work for you.