Question Does a CH 13 make much sense these days?

[debtprison]

A CH 13 seems to count on stability in things like income and debt. However there is no stability for most people over the course of years. People are losing their jobs, things happen. I see so many people coming here after being in a CH 13 and having missed a payment and not knowing what to do.

What do you think of this?

[HHM]

7 and 13 are just different options and accomplish different things, so its not really a matter of whether a 13 makes sense or not.

Let's big picture this for a moment, unemployment is 9.7%, that means that 90.3% are working (I know its in an oversimplification), but the vast majority of people are still working. So, if someone has the means to pay "something" back to creditors, that was chapter 13 does. I agree, I think the max time should go back to 36 months, but still, for most people who do not qualify for chapter 7, there is NO OTHER option that will get them out of debt in 60 months or less other than a chapter 13.

A good portion of chapter 13 failures are people who wanted to try to hang onto certain assets (they could have filed a chapter 7), but they HAD to keep the motorcycle, or the incredibly upside down house that they can't afford anyway.

[keepmine]

You have no choice. You file the Chapter you qualify for.
People file a 13 because, they have too much disposable income or, they have assets they wish to save that have value beyond what their state allows for exemption.

[AngelinaCatHub]

You have no choice. You file the Chapter you qualify for.
People file a 13 because, they have too much disposable income or, they have assets they wish to save that have value beyond what their state allows for exemption.

Very true. We originally wished to file 13. I did not want to dun those kind enough to loan me money out of anything. When DW got laid off, and I also lost my connection with her job (as a paid consultant, long bad story), we had no choice to 7. We had to pay back to Trustee $5400 at no interest for 12 months. We didn't even need the means test but our property was over the exemptions. Then, the mistakes as inside payments to family I knew NOTHING about. So, it has been expensive, but still, we are happy, and free, and are exercising a new life style. 'Hub

[MSbklawyer]

You have no choice. You file the Chapter you qualify for.
People file a 13 because, they have too much disposable income or, they have assets they wish to save that have value beyond what their state allows for exemption.

True. Back in the pre-BAPCPA days, VERY few people filed for 13. Assets, not income, determined whether you went into 13. If you were able to exempt all your assets you went 7. About the only time 13 was used was when folks were behind on the house or a car.

[liz417]

You have no choice. You file the Chapter you qualify for.
People file a 13 because, they have too much disposable income or, they have assets they wish to save that have value beyond what their state allows for exemption.

Or....you have an attorney that insists you ONLY qualify for a ch 13 because you are over the median. Please consult with at least 3-4 attorneys before you retain one. I would be stuck in a ch 13 if I stayed with my original attorney (1st one I consulted and retained and BEFORE I found this site).

Good Luck!

[justbroke]

I actually am in the HHM tagged "back-door Chapter 7". I filed, actually, to save my rental property... as I really didn't care for my primary residence. Knowing what I know now, and mostly based on the market and how the lenders are "mostly" trying to keep people in their homes (the ones that can afford it), I would have probably gone with a Chapter 7.

You know, I actually had my modification approved, but filed my Chapter 13 the same day. When I called the bank to ask why they haven't called me.... "you filed Bankruptcy sir, the deal is canceled". Wow!

So, I still believe that people who can afford to be in a Chapter 13, should do that way. It has some advantages like being able to discharge debt that you may have received by lying on that credit app. Plus there are some advantages should you need to file bankruptcy sooner than 6 or 8 years after receiving a discharge.