I wondered what the difference between Chapter 7, 10 and 13 bankruptcies. How did the new law that Bush passed now affect bankruptcies (or does so at all)? I've heard all that you can not apply for Chapter 13 bankruptcy since you have to take financial planning classes thereafter. It is also advisable at all? I know that normally people say is their last resort, but I'm beyond debt and have no other resolutions. Any horror stories after the presentation? Any positive stories? Please enlighten me.
thanks!
Debt Credit Card
Online Credit Card Debt Help
07-Oct-2009
Bankruptcy?
Category : Bankruptcy
MEDIA chapter 13 you have to repay all debt ITS A Board of Trustees, Chapter 7, debt SU disappears. THE ONLY advice I can give is stay away from credit counseling and IF YOU FILE A BANKRUPTCY CH 7 NO A 13. What you have to remember is a bankruptcy is a bankruptcy and just because you're paying in CH13 A do nothing better.
I presented the week before changing the laws, but I know a little about what has changed.
Cap. 7 is a liquidation, where unsecured debt is discharged and should not in most. Secured debt can be reaffirmed in some cases. This is the one that is almost impossible to do now.
Cap. 13 is for debt restructuring. There is a formula they use to see how much money monthly that can afford to pay. Using this terrible formula created by the IRS, you can pay up to $ 100 per month, you must file Chap. 13 and liquidate their debts, for a maximum period of 5 years.
The dirty secret that no one spoke before the law changed is that 4 of every 5 people who filed Ch. 13 Before the change, no. You forget one payment and the whole thing can get derailed. God help you if you lose a job, get injured, whatever.
There are also some "means" test, where revenues are compared with the average income in your area. If you make very little money, you may still qualify for a cap. 7.
And yes, I think that before anyone can file a BK now, should meet with a credit counselor utility first.
Call a few lawyers BK. Get quotes on prices, and meet with a couple that are cheap, but apparently well informed. Most will give at least a 30 minute consultation at no charge, hoping to earn your business.
The new law is much more complicated than before. It was designed to keep away from their debts. If you are facing personal bankruptcy then there are two chapters that could be implemented: Chapter 7 and Chapter 13. What would be the best depends on your cirumstances – your income, debts, etc, etc
Do yourself a favor and research the topic before making a move. It really is a last resort and there can be alternatives. This website has lots of information, useful links, etc.
Good luck!