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Re: Chapter 13 vs Chapter 7????


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Posted by ann (216.120.137.241) on August 03, 2004 at 12:43:02:

In Reply to: Chapter 13 vs Chapter 7???? posted by MOMTO1 on August 03, 2004 at 07:04:01:

I did Ch 13 in NC 23 yrs ago. The court garnished 25% of my take home pay to pay the creditors. Secured debt (car) got everything they were supposed to, including interest. Unsecured debt got paid last out of what was left over ( not much). Mine lasted for 3 yrs and in NC it was reported on the credit report for only 7 yrs from the time I filed. They do take your tax refunds each year - so if you usually get large refunds it's best to refigure your withholding and reduce the refund. The Ch 13 office sends out mail with "Chapter 13 - Debtor relief" plastered all over it which bothered me because I lived in a very small town and didn't feel it was something I wanted advertised.
Once you start the process, the trustee will decide which way it goes - 7 or 13. It isn't your choice at that point, so beware.
My daughter is going thru a CH 7 right now. She makes $8/hr and has 39 creditors for a total of 40K in debt. Income equals outgo - so she qualified for the Ch7. If you have a couple of hundred dollars left over after you pay for essentials (not CC's), then the trustee will lean for the Ch 13. The key is in setting up the budget and knowing where the money is going. If your car is older, plan for problems and higher maintanence costs - it's allowed. If you sit there and let someone else make up your budget - you will probably get screwed. Go over what you have spent in the last 2-3 years for medical, car, dentist, etc. - do your homework and make the system work for you!
Good luck.


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