Re: Chpt 13 BK

Posted by Drew (24.59.27.46) on January 01, 2004 at 17:58:12:

In Reply to: Chpt 13 BK posted by fred42 on January 01, 2004 at 15:23:44:

The advantages are as follows:

If you have a steady wage and you make enough money to pay the minimums on your bills but still not enough money to get all your bills caught up, this is an option.

Advantages:

You get to keep your assets.

You have all the legal protections of a bankruptcy: foreclosures are stopped, collections are ceased, suits are stopped.

You enter into a payment plan where you are settling your debts and agreeing to pay a certain percentage of these debts back over a three year plan usually. The balance that remains is forgiven.

Basically you are doing a legal settlement where this settlement plan with your creditors is recognized by the courts.

Disadvantages:

You have to stick to a court ordered payment plan set by the bankruptcy trustee and depending on who that can be, they might be stingy.

It goes on your credit report for seven years after discharge of debt verses ten years after discharge of debt. It may take three years to discharge your debt so it equals out to ten years either way.

The majority of your creditors have to agree to your repayment plan. If the other creditors do not agree to your payment plan and they are in the minority, they have to accept it. Also from my understanding of the wage earner plan, the creditors have to make their claim.

You have to list all your household expenses, not just the normal ones but the miscellaneous ones as well and all your bills even the kids piano lessons or what you have to pay for repairs and maintenance and upkeep. If you don't do that, they will force you into a payment plan that you might not be able to keep.

So when going wage earner bankruptcy, you must list all miscellaneous household expenses and necessities...school supplies, kids clothes, braces, etc.

I have included some links that help explain better.

http://www.expertlaw.com/library/pubarticles/Bankruptcy/chapter_13_bankruptcy.html

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