Thinking of Filing Chapter 13 Bankruptcy- Need Advice!!

Please see someone regarding debt financing before declaring bankrupcy.

There are many agancies that are cost free.

With something this serious you need to consult with a lawyer. The laws have recently changed and they can give you the correct information. Usually you can get a free consultation. Since this decision will follow you for quite a while you want to have full knowledge of the consequences either way.
Good luck and God bless.

Well, the best person to talk to is a lawyer because every state has its own laws. Most attornies will give a free consult. Talk to more than one to get the best fit. The hardest part for us has been paying to lawyer's fee - 1500. Personally, I can't wait for it to be over and have a fresh start! There is a state median for how much yearly income you make. But sometimes you just have to cut your loses. I'm not real familiar with Ch. 13, we are filing Ch. 7 because we don't own our own home. You have to go to a meeting of the creditors 3 months after you file. I haven't done that yet. But once you retain your lawyer you can give everyone who is calling you his number and they will stop harassing you. Good luck!!

Before filing bankruptcy, check into Dave Ramsey's "Total Money Makeover" www.daveramsey.com it's worth a try. My husband and I are in the process of working through the Dave Ramsey's plan and if things go as planned we should be out of debt (except for the house) in a year and that's including both of our vehicles. And once all of our other debt is paid off we should be able to pay the house off within 3 years (we've only been paying on our house now for 8 years).

Good Luck and God Bless,
Mel

Hi,
My husband and I just finished up a Chapter 7 bankruptcy. I was the money maker and I lost my job one month after we had just paid for our wedding and a week after finding out that I was pregnant. We had a house, but put it in the bankruptcy since our finances had become so tight. Anyway...it was such a great decision for us. I am a Realtor now and am able to stay at home while my husband works and not worry about getting bills paid. You can file a Chapter 7 and keep your house, but you will not be responsible for paying back anything you owe. We had the house and about $14000 in credit card bills since we were basically living off of them for a while and they already had a balance from the wedding. Everything was cleared and we had a fresh start. My husband kept his car. Our credit is bad now, but already each have a credit card to begin building up. Prior to this I had a 720 credit score. It was definitely the right decision for us. Hope this helps.

Hi K.. The best thing you can do is to schedule a consultation appointment with a lawyer- most offer a free inital visit and will give you all the information you need to begin. We did and are currently in the beginning process of filing chapter 7. (She told us that 13 was not the best option for us- this was also one of the hardest decisons we've ever made but we tried every other option that we could first.) You will be required to take 2 credit counciling classes, one before filing and one after. They are $50 each and done online, but you and hubby can take the classes together to avoid having to pay $50 for each one of you. There are also exemptions that you can take that'll allow you to keep your car, house and things in your house. We are "reaffirming" the morgtage on our house, so we won't be loosing it. (All the reaffirming is is saying "Yes, we are going to keep paying on this debt")

My father just got out of a chapter 13 bankruptcy. His repayment plan was based on the wages he made at that time and did not change even when he was making more money. He did have to hand over his tax refund for that 5 year period. If you and hubby do go this route- and I truly feel for you if you do because I'm stressing through the same thing- remember that on a chapter 13, the 7 year "credit report" doesn't start until AFTER the 5 year repayment plan is over.

I work for a bankruptcy attorney in Michigan, but we only do chapter 7, not 13, so I am not as familiar with that chapter. If you only have 60 dollars left over for food each week, then you probably qualify for a 7, but it does depend on how much equity you have in your home. If I were you, I would take advantage of the free consultations, but you always want to call the state bar association before handing over any money, and you DEFINITELY need to feel comfortable with an attorney before retaining him or her. Also, when discussing fees, ask about payment plans and make sure that filing fees, credit counseling certificate, and debtor education are included. I know this is difficult to even think about, but many of our clients say that it was the best thing they ever did. Good luck.

Greetings, K.,
I'm so glad to hear you still consider your husband the love of your life during this stressful time. Often finances is a major cause of divorce. About 7 years into my marriage, my husband went bankrupt. It was difficult because the problem was systemic, meaning....in his system of thinking. We often disagreed about making over-reaching financial decisions, as I perceived the amount of debt and the management of the money was not well grounded in sound financial thinking. YOU MUST LOOK AT HOW YOU HANDLE MONEY FIRST or you will go through it all again. The bankruptcy was grueling...but it gave a certain "fresh start" in that the pressure was off and the bills became manageable...WHEN WE PRACTICED GOOD BUDGETING AND RESPONSIBLE FINANCIAL PLANNING ALL OUR BILLS WERE PAID..even with my staying home with our six kids. WHEN MY HUSBAND went back to the OLD WAY OF HANDLING MONEY THAT GOT THE BANKRUPTCY, it happened again......Sometimes it is better for the lesson to be learned in the first place by doing the work to pay the price of the initial mistakes. Shalom

file chapter 11-full bankruptcy-they both ruin your credit just the same

Have you tried a debt consolidation loan? I know Citi and a couple other banks offer them. I dont know much about filling bankruptcy, but I do know you have to pay to file-though I am not sure how much.

K.,
I know how hopeless and overwhelming major debts can be. It takes a toll on each of you and your family. If bankruptcy is being considered, find a good attorney. If anyone on this site knows one, maybe they can send an email to you and recommend. My husband and I met a less than good one who made us feel like all we had to do was write him a check and everything would be taken care of for us. Luckily, we didn't have enough money to pay him the up front costs and we were able to recieve better advice elsewhere.
I suggest looking at Dave Ramsey's web site (daveramsey.com) or some of the other programs that suggest things other than bankruptcy. Although filing may be unavoidable at this point for you, it can give you advice and tools that will help you and your husband to prevent ever getting in your current situation again. He also has fabulous links to other resources as well. Read Dave's story, you will know he understands. He also had business failures and such and was able to rebound. His philospy - live debt free - simple and not so easy but possible if you are willing to work hard to make it happen.
My husband and I didn't file bankruptcy but worked our buts off so that now we only owe on the house and student loans. My advice - Investigate many options so that any final decision is truly the best one for you and your family.
Good Luck!

Hi K.! My husband and I filed chapter 13 last year after getting behind on our mortgage and being threatened with foreclosure (and a lender not willing to do a work-out plan). (we had relocated to MI 5 years ago and our $1200 monthly mortgage payment somehow became $2000 and that was with a fixed rate mortgage! add that to the increased cost of living up here and crazy medical bills...) Anyhow, they took 1/2 of his paycheck for the plan to cover the house and his car (which was almost paid off), plus our tax refund (which is quite nice with 6 kids). After trying to live on 1/2 his income in Michigan's economy, we decided to file chapter 7 last month. The chapter 13 plan actually made things worse off, but we wanted to stay here until our son graduated from high school.

We are currently in an upside down mortgage situation (housing values here have taken a nose dive, so we owe a lot more than the house is worth now), we will be giving up the house; we're reaffirming on the car (and hope to pay it off with our tax refund) and we're moving back to Cleveland. We're basically starting over. The good thing is, we get to save the 1/2 of his paycheck they were taking out while we live here rent free until the end of July (or so), so we will have a nice chunk of change when we move. But, it will be almost impossible to buy a new house, so we'll have to rent (with 5 kids at home and a dog -- wish us luck!).

Definitely take advantage of the free consultation attorneys offer you! My husband almost died of humiliation at our first visit, but now he's glad we did it. If you don't feel comfortable with the first one, go to another. It is a VERY difficult decision. If there is ANY way that you can refinance your mortgage and 2nd mortgage, I would recommend that. We did that at our house in Parma and the money we saved was well worth it! Depending on when you got the 2nd mortgage, maybe the value of your home has increased some?

I wish you the best of luck through this! Sometimes bankruptcy is the best answer, but BE SURE -- it sticks with you for a LONG time. Best wishes!!!!