Check whether you qualify for Bankruptcy Chapter 7 or 13

Hi Jessica,

Thanks for the information. I am always confused about this chapter 13 and chapter 7 bankrupcy. And when to file what. But the chart has cleared a lot of doubt.

Jerry

what can i do? i am on social security and i am in a mess with check cashing stores and i can't pay them all back.

Hi,

Welcome to Mortgagefit discussion board.

What companies have you got the loans from? Are they online or storefront? If you are dealing with internet payday loan companies, then feel good to know that most of the companies that are doing business in the US are not legit. Most of them have been breaking the federal and state laws. Please tell me the name of the companies you are dealing with so that I can tell you more about them

Now, since you are on social security income, I can understand that your finance is tight. If the major portion of your money is going to these pdl places, then you don't have anything left for yourself at the end of the month. It will be a good idea to speak to your branch manager about these pdl companies and if possible, block them from pulling out money out of your account. Closing the account is no

Do let me know if you have any other questions.

Thanks
Blue

we make $100K with $70K i unsecured debt. we have a house valued at $177K. we have been told we do not qualify under the means test and plan to file for chapter 13. we are worried that we will be unable to pay the payment ammount the courst may come up with. is it geared to what you can "actually " pay or based on something else. is ther a point where they will tell us we are unable to be helped and be turned out on our own? or will the system to their best to help us "find a way"? All we really hope to do it keep our house and will make whatever other changes we need to.

Hi guest,

Welcome to our forums.

I would advise you to be positive about the filing. It's not that the court comes up with what you actually should pay. Rather it makes you pay what you can afford in your current situation. Well, if you don't satisfy the criteria for filing chapter 13, you won't qualify. But this doesn't mean it's all over. Since the debt is unsecured, you have a chance to enrol for a debt consolidation, settlement or a debt management program. But yes, it'll depend upon your situation as to which one will suit you the best.

Did the court appoint a trustee and when do you have to appear in court to take a look at the repayment plan?

Regards,

Jessica.

Me and my wife had a baby last year and ended up with over 20k credit card debt. We own a house but owe more on it then it cost us to build it 8 years ago. I am the only one working due to it would cost more for my wife to work and pay day care then for her to stay home. we only make 27k a year. would chapter 7 be able to eliminate our credit card debt but allow us to keep our house?

Hi JohnG!

I don't think a Chapter 7 will be helpful for you. Moreover filing a chapter 7 will affect your credit report badly. It will in your credit report for 10 years and I don't think it will help you to save your house.

Its better if you could file chapter 13. This bankruptcy will help you in reorganizing the debts. The lender will give you a different plan through which you will be able to pay off the loan within a period of 3-5 years. This will also help you to save your property.

Thanks,

Jerry

I've been banging my head for the last 4 years. I've been trying to get out of credit debt and still have fallen backwards. Recntly I been layed off. Still looking for work. I have about 15K in debt. Had just moved out of my apparment. Collectors have already taken my truck (which was just payed off) and took all of my savings and Im getting no where trying to talk to these people. I get a better response from my dog. I had to move in with my dad recently and were trying to find if bankrutpcy can help me. I've been trying not to verge to that route but now it seems like my only option. Im still confused if i qualify or not. I really need some advice. My credit rating may also be affecting my job search cause i know i could have been employed a few time recently but employers excuses seem too vague... unsure... I dont know what to do. Have unemployment, but that wont even cover any payments their looking to receive. Judgments are letters and judgments are piling up and im stressing out pretty badly. Will bankruptcy help me. Remember these debt were incured 2002.

Hi Joe the scared one!

I can understand your tough situations and hope you will easily come out of them in future.

Have you tries short sale or deed in lieu foreclosure? You can try these options but for that you will have to speak to the lender.

You can opt for bankruptcy but you should remember that it will badly affect your credit score. You can try for Chapter 13 bankruptcy rather than Chapter 7. Chapter 13 bankruptcy is known as reorganizing the debts. The lender will give you a plan by which you will be able to pay off the debts within 3-5 years. In this process, you will not lose your property.

Thanks.

$$$$ Med bills (stopped counting when reached $150k last year)
Lost home to foreclosure due to shady predatory practice lender
Sold my only car to pay rent (which by the way only paid for 1 month)
Landlord threatens kicking my out with my 3 kids EVERY MONTH! Its his house he can do whatever he wants to do.
Multiple untils cut off at any given point
$2500 month/rent and no means to move
Infant and 2 other kids under 18
Ongoing illness but dont qual for disability
No credit cards to borrow on
Signed for a vehicle 4 years ago for my ex that Ive NEVER driven so Im responsible for the bill and keeping it insured.
He cant qualify for a loan to get it out of my name (although hes willing and has tried on SEVERAL occasions)
Upcoming divorce which will yield NO child support or Spousal support because hes a HS dropout not from this country and limited skills -- whos gonna hire him although hes WILLING and tries to find work
ALL family members on public assistance = NO ONE WHOM I can ask for help
Ongoing Illness = prospects of finding work outside the home is SLIM -- I look ill so whos going to hire me????
I have marketable skills but I MUST WORK FROM HOME -- whos going to hire me with a salary that will sustain a roof over my 3 kids and my head?
No assistance from FEDS or STATE
Creditors keep threatening bad credit -- UM GUESS WHAT? TOO LATE!! I guess Ill keep them employed by at least giving them a phone number to call every day
At least 1 Util cut off every month
The only thing Im trying to protect at this point is my clearance -- and even that is threatened.

OK. Any financial Hot-Shots who can figure THIS one out?? Im ALL EARS!
OK. I give up! You WIN! (whoever YOU is)

Signed
Totally Utterly and COMPLETELY DEFEATED

Hi anon,

Welcome to our community forums.

What type of bankruptcy did you try out for? I hope it's chapter 7, right? Well, I'm afraid but you're in a mess. By this time, the medical bills must have accumulated to a lump sum amount. What is more worse is, you're not getting any assistance from the state or the Fed.

Is there any way you can look out for a freelancing job or something like that? Otherwise you won't be able to meet your daily expenses even. If possible, at least start off with a part time job because you have bills to pay and the creditors are after you. So, you'll have to pay at least some amount. What I mean is, you have to earn enough so that you can at least consolidate or settle your debts. Moreover, you have 3 kids too.

Regards,

Jessica.

My attorney messed up and turned a couple numbers around and now the US Trustee is asking questions, the attorney is saying its possible my case will get dismissed. I do not understand how this can be. Even with out his screw up, we pass the means test due to how much money we put out each month. Since its the attorneys screw up, you would think he should have to fix it. Any suggestions???

hi lori!

yes, as far as i am concerned, i think your attorney should fix the matter. but then if the case gets dismissed, you can appeal to the court and there are chances that after few months, your appeal gets accepted. you can also try filing bankruptcy again if your case has just got dismissed. but you should remember that if bankruptcy is discharged, then there is no automatic stay and creditors can attempt to collect the debt that you owed to them. foreclosure procedure can start up again and your bank accounts get garnished. check out the following link for further information on bankruptcy getting dismissed:
http://www.mortgagefit.com/discuss/bankruptcy-dismissed.html#3033

thanks.

6 mos of credit counseling, does that mean that creditors can hound you for that time frame? Anyone have a great attorney in Delaware for bankrupcies?
Sue

hey sue,

in credit counseling, you will get a debt management plan and this will help you in paying off the creditors with the help of a repayment plan. if you have already taken up a plan for credit counseling, i think you should wait for sometime before filing bankruptcy.