chapter 13

I've checked the archives on this, and have received a lot of helpful information, but I'm interested in learning more.  How hard is it to qualify for this?  I'm sure I would qualify, but I would like things to start happening now...not 6 months down the road.  Are lawyer fees owed up front?  Who do I talk to about this? 

A little history...I worked full time for a local ortho office, and decided to work part time from home.  I had 2 small children, but my husband is home most evenings, so working a few hours a day wasn't a big deal.  Well, we unexpectedly got pregnant about a year ago, and we now have added expenses with the new baby, as well as the fact that I don't have as much free time to type.  I'm trying to sell our car right now, but so far there are no bites (it's an SUV, and with gas prices people aren't wanting to buy them anymore).  Anyway, I talked with a credit counseling agent a few weeks ago, and have made my first payment.  However, I am getting calls from creditors saying that I have payments overdue, and when I told them that we are going through a credit counseling agency, they said that they denied the proposal, and I have to make the payment. 

I'm at my wit's end, and literally don't know what to do.  We own a small (1100 sq. ft) 3 bedroom ranch, and would really like to keep it if possible.  I can't work full time with 3 kids, because all my money would just go to childcare. 

Any advice would really help me at this point!  Thanks!

• chapter 13 - sm
  • As far as creditors, once you signed up with the agency, they have sm - Kim
    • Sorry disagree - pj
  • Chpater 13 - been there
    • That's what I'm thinking, too. Our agency told us to refer ALL creditors to them - Kim
  • chapter 13 - pj

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I did a Chapter 13 right before the new laws came into effect and though I could have qualifed for a Chapter 7 I feel better about myself paying something back to everyone.  A few things to look out for about credit counseling as I tried this prior to the bankruptcy.  This was due to an ugly divorce and my ex had a rich Mommy who paid his attorney bills and cost me 14K plus but I was able to keep the house.  (yes he had the new life and the girlfriend, I had the bills).   Anyway, credit counseling was going to cost between $75 to $300 for them to manage my money and pay my bills.  I did the lower one for a while but some of my creditors would NOT work with them.  Also remember if a credit card company decides to give you a discount if you pay the balance, the amount that they write off has to be declared as income.  Say you owe $7,000 to a company and they say if you pay us $5,000 -- then $2K of that is consider income to YOU at tax time.  I pay the courts $300 a month and for 36 months.  It was not easy but like I said I have my home, my business and have found that you can live without credit, save for a car or large purchase and save.   So to me that was the answer.  I can still hold me head up as they are getting something.   So talk to a good attorney and he will advise you.  The good thing about this is that you can't live off your credit cards and it does get you back to  budget and cash that hopefully after doing for 3 years you will just continue with it.  I was told once by a banker that the bankruptcy looks better on your credit report that late payments or credit counseling but who knows for sure.   Nowadays you might have to pay a few perentage points higher for a loan but you can get it if you want it. 

Take care good luck. 

The reason that I went Chapter 13 was because I was told that you could not include taxes in a Chapter 7 unless they were 7 to 10 years old.  Was told that child support, education loans and taxes were very hard to include (if not impossible) in a bankruptcy.  I had no trouble with them when I did my Chapter 13 but I only owed for one year, filed in February and owed for the year previously.  You need to get out your BK papers and see if the IRS was listed and included, talk with your attorney that is what you paid him for and go from there.  Good luck. 

Patti