Re: Thoughts on Chapter 13--Was it worth it?

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Posted by: 13er on 10/23/06:

In Reply to: Thoughts on Chapter 13--Was it worth it? posted by: Wendy on October 23, 2006 at 14:44:33:

We've been there. Just imagine if there a job loss or big medical issue occuring amongst all that debt. Then you will have no choice but to file for BK. You know you are headed into a downward spiral with no way out unless you hit the lottery or come into a large inheritance which you know probably will not happen. Some folks will tell you to contact CCCS and work with them; while others will tell you to file for Chapter 13. We were recently discharged after a 5 year Chapter 13 Plan. We too made too much to qualify for a Chapter 7 and at that time we also had too much equity in our house so we had to file a Chapter 13. It was the best thing we did. It was a hard struggle during those five years and you must live by cash only - no credit cards. You will learn to budget and then budget some more. You will also need to try to save something during that period of time because tires are going to need replacing on the car or the washer will go and need repairs and the cars will definately need repairing. The only bad thing we didn't like about going through the Plan is that we came out needed new cars and need lots of house repairs done. It is going to take quite a bit of money for all of that and we are working on a home equity line now and looking into car loans. During that period of time, you cannot afford to replace anything and you have to make it last until the end of the Plan. If you have a lot of family support, that helps also and it also helps if you have friends, relatives or co-workers who do car or house repairs.

You have two choices - cut up all the cards and go to CCCS and work with them or consider Chapter 13. All BK lawyers give free initiali consultations. Call and make an appointment with one in your state and take with you a listing of all your debts, your montly payments, your pay stubs, other sources of income, and a list of all your assets. Once you have talked to both the CCCS folks (make sure they are affiliated wiht the BBB whoever you go through...be careful) and the BK attorney, you will be in a much better place for your own situation than anyone can tell you. Best of luck to you. It will not be easy.
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: Just wondering if those who have been in Chap 13 for awhile, have finished or almost finished or those w/exp in new law can plesae tell me if they thought it was worth going through now in our situation.

: We are current on everything, but owe what we make in a year in ccs and have no equity in house. Have tried to cut back, etc and I am working overtime. Still not getting ahead. Fico is 675. Between high interest rates on a few big cards and raised mins--often have to charge necessities after all cards paid at end of month. We live in a modest home and do not even take vacations but are still paying from years of cc mistakes.

: Too much $ left for Chapt 7. Cars paid off but are 5 and 9 years old. I am terrified to file and end up in 5 years unable to buy a car or washing machine if needed, but have been stuck in this cycle for years. We could pay 100% back--it is just that the interest is killing us. Cannot balance transfer, because they see how much debt we have. In 1.5 years could borrow enough from 401 to pay 1/3 off. Considered credit counseling, but read all the horror stories and credit damage issues. Keep plugging and hoping will be able to get lower rates as things get paid off, credit counseling or Chap 13. Any input would be greatly appreciated.


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