SHould I file for chapter 13?

Discussion in 'Credit Talk' started by victoryvic, Oct 2, 2003.

  1. victoryvic

    victoryvic Member

    I recently lost a second income and fail behind on my credit cards ( about 10,000) worth. And behind one month on a car note and foru months behind ona mortgage yes they have started forclosure process ( they lied to help me get to this point told me that hey could help with me being two payments behind only after I was thro or more, failed to tell me at that point they start foreclosure process ) If I file chapter 13 what will my credit look like for how long and will have to pay back the credit cards . What happens to my car? Can I ever buy a house again . I will have a job that pays me 10,00 dollars more a year in a month. any all replies welcom. Need soem suggestions please .
  2. sirrowan

    sirrowan Well-Known Member

  3. billt1227

    billt1227 Well-Known Member

    you have to consult an bankruptcy attorney on whether to file chap 7 or 13 would be better for your situation. bankruptcy will *buy* you two years of living in your house with no mortgage payments. the down side is you will lose your house. both the foreclosure (7 years) and the bankruptcy (10 years) will be on your credit report. i think it will be at least 3 years before the effects on these things will be diminished; assuming you don't encounter any other credit problems during the three years. fha guaranteed loans are available 3 years after bankruptcy with good credit history after date of bankruptcy.
  4. billt1227

    billt1227 Well-Known Member

    i just thought of this, bankruptcy stops the foreclosure process. credit cards are unsecured debts but the lates and/or charge offs will be on your credit reports. all of your debts, secured first then unsecured (assuming you have any assets left) will be part of bankruptcy. your attorney can advise you on the particulars. you really should consult an attorney to guide you through the bankruptcy because there is a game that can be played (start with chap 13, delay 341 hearing, roll chap 13 into a chap 7, etc.) to delay as long as possible.
  5. Hedwig

    Hedwig Well-Known Member

    It depends. If it's an FHA or VA loan, and it gets foreclosed, you may not get another FHA or VA loan. That's a default with them.

    If you're going to have a job that pays an extra $10K in a month, you need to find a short term solution and try to at least keep the house.

    Do you have a family member or someone who will make you a short-term loan until the higher income kicks in? Maybe for a year or so, to help you get back on your feet.

    Can you rent out a room or something to get some extra income?
  6. victoryvic

    victoryvic Member

    thanks guys for all the replies I do not have any one who will loan me money. Both option s ( no bankruptcy and bakruptcy) feel terrible. I know there are people who have many many more bills who file bankruptcy but I guess it is really about the money you have to pay I do not have the money right now I will consult a bankruptcy attorney today . Thanks

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