filing chapter 13
Thinking About Filing Chapter 13 And Doing Debt Consolidation?
The answer to this one is easy. Stop thinking.
In such a situation, no matter what your reasons, you should not even be considering filing Chapter 13 bankruptcy. For a huge number of reasons, it is a far better idea to go with debt consolidation instead, and it is a process that is far more likely to succeed.
Aurora Lillo Editor of the “Best Debt Consolidation Services” website — http://www.FreeDebtConsolidationQuotes.net — pointed out;
“…Chapter 13 bankruptcy can be attractive, it is true. However, what most people don’t know is that the majority of chapter 13 bankruptcies fail, and that you will probably have to declare the worse chapter 7 bankruptcy, losing a large amount of your assets in the process, instead. However, the same is not true of debt consolidation. This is because, in chapter 13 bankruptcy, you will be going at it alone. Any help in the process will have to be paid for by you, and will probably cost a huge amount. However, debt consolidation companies give you all of that assistance for free. They are paid by the interest on your debt, which you would be paying anyone during the bankruptcy process, so essentially you are getting the package deal with bonuses for free…”
In chapter 13, furthermore, your living expenses will be decided by the government. They will say what you can afford to pay and everything else will go towards paying off your debt over the limited period that you have. This period is typically limited to either 3 or 5 years to pay off the entire debt, so you will have very high payments on your bankruptcy plan. However, in debt consolidation, you and your creditor can set the time limit, interest rates, and payments to whatever you think that you can afford, so you are far more likely to be able to afford luxuries.
“…Furthermore, and worst, chapter 13 bankruptcy, even though you are paying off your debt, is still bankruptcy. And bankruptcy is the single worst thing that you can do to your credit record. Debt consolidation, by contrast, actually helps your credit score. Unless you default on your consolidation payments, you will not have a single strike on your credit score. And, typically, the consolidation company will be able to bargain down the amount of money that you owe, so you will also be paying less money that way. This is really a no-contest…” added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.FreeDebtConsolidationQuotes.net
About the Author
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
Filing Bankruptcy Chapter 7 and 13?
When filing Bankruptcy Chapter 7 do they go by your Gross or Net? Also were thinking about filing Chapter 13 but I heard I will probably owe more monthly filing 13 repayment plan. Which right now we pay well over $600 a month, and we can’t make it. So I guess what are my chances of having a lower payment for filing Chapter 13? The reason we want to file Chapter 13 and not 7 is because our 2nd Mortage wrote off our loan and sent us to collection for $42,000.00 and if we go with 13 it will get rid of that. I would rather do Chapter 7, but I don’t know if we make too much money….
Lou,
It is neither your gross nor your net that matters. It is the result of your Means Test, which is actually a 3-part test. There is both a long form and a short form (kind of like the long form and the short form – and the very short form – for IRS form 1040).
When you read media accounts that say your income needs to be below the median for your state, that is just a VERY rough approximation. If your attorney completes the long form of the means test (Form 22 A, B, or C) there are deductions that can be backed out even after they are included in the gross.
Please see an experienced bankruptcy attorney licensed to practice law in your state for the real answer to your questions. A lot of what you read on the Internet is inaccurate, overly general, incomplete, or not applicable in your state.
Most bankruptcy attorneys offer one free consultation to answer the kinds of questions you have. take advantage of it.
Tax Law, Real Estate & Credit Tips : Rules for Filing Chapter 13