Hello,
I'm new to the forum and have been trying to research on my own some simple questions to way the positives against the negatives for filing a chapter 7 vs chapter 13 in the State of Virginia.
I have about $40k in unsecured debt which is mostly CC. I let my home go back to the bank last July because I was 75K upside down and there was no way to modify the payments due to split up/divorce. The 1st foreclosed in trustees sale, but the 2nd for $100k with Ocwen got wiped out. I have had numerous consultations with my attorney and we had to stop my overtime and get my income straight lined out in the past 6 months. I qualify in the state of Virginia for a Chapter 7. If I go chapter 7 I have about $2000 of personal property at risk due to the exemptions. I am also worried about the truck my ex is driving in another state that is free and clear, but in my name. I have another vehicle here in VA, but my exemptions cover both vehicles according to my attorney. I have some firearms that would also be at risk, but nothing that I wouldn't absolutely be able to live without or that I couldn't replace down the road.
If I go chapter 13, my attorney said my payment would likely be relatively small, under $300 per month. I also owe about $5000 in Federal income tax for 2008 and waiting for a payment schedule with them. So, in a nutshell:
Are there some long term credit benefits of going chapter 13 and discharging early?
Is there less impact down the road on credit re-establishment?
Would 7 be better because I wouldn't be tied to the trustee for the next three to five years and I could start rebuilding credit?
My current HR Manager knows my situation and it is because of a divorce more or less. I am not worried about my current job, but maybe future employment?
I am thinking to going to graduate school in the fall, and want to know if there are any avenues for student loans or grants after BK?
Anyway, sorry for a long post, but I'm sure there is someone out there who has done the comparisons or was presented with the same decision.
Thank you.
I'm new to the forum and have been trying to research on my own some simple questions to way the positives against the negatives for filing a chapter 7 vs chapter 13 in the State of Virginia.
I have about $40k in unsecured debt which is mostly CC. I let my home go back to the bank last July because I was 75K upside down and there was no way to modify the payments due to split up/divorce. The 1st foreclosed in trustees sale, but the 2nd for $100k with Ocwen got wiped out. I have had numerous consultations with my attorney and we had to stop my overtime and get my income straight lined out in the past 6 months. I qualify in the state of Virginia for a Chapter 7. If I go chapter 7 I have about $2000 of personal property at risk due to the exemptions. I am also worried about the truck my ex is driving in another state that is free and clear, but in my name. I have another vehicle here in VA, but my exemptions cover both vehicles according to my attorney. I have some firearms that would also be at risk, but nothing that I wouldn't absolutely be able to live without or that I couldn't replace down the road.
If I go chapter 13, my attorney said my payment would likely be relatively small, under $300 per month. I also owe about $5000 in Federal income tax for 2008 and waiting for a payment schedule with them. So, in a nutshell:
Are there some long term credit benefits of going chapter 13 and discharging early?
Is there less impact down the road on credit re-establishment?
Would 7 be better because I wouldn't be tied to the trustee for the next three to five years and I could start rebuilding credit?
My current HR Manager knows my situation and it is because of a divorce more or less. I am not worried about my current job, but maybe future employment?
I am thinking to going to graduate school in the fall, and want to know if there are any avenues for student loans or grants after BK?
Anyway, sorry for a long post, but I'm sure there is someone out there who has done the comparisons or was presented with the same decision.
Thank you.
Comment