Friends of mine are in serious financial trouble. The husband had cancer two years ago and he is self employeed, their insurance was awful and now they are tens of thousands of dollars in debt and are at risk of losing their home. They own a home (still have a mortage on it) and two vehicles. When you file BK, does the bank take everythign you own? What is the best to file? Ch 10? Ch 13? What is the difference? Experiences please?
Hey, my husband and I filed a chapter 13 years ago. When we had just had our 3rd child my husband got reall sick and he was out of work and because of a mix up at his job (the correct papers not filed when a change was made for workmans comp) we could not pay any of our bills.
We had several credit cards to the max. It was really bad. We had credit people calling nonstop and some of them were very ugly. (one lady told me to get off my #@#@# and get a job so I could make the payments!) Even after he was ablew to go back to work they wanted all there back payment right THEN. It was not possible for us to ever catch up.
Watch this video with good tutorial:
Anyway, we found out about the chapter 13 and I will say that it was a godsend for us!!!! We went in that day, sat down with a lawyer, told him our situation, gave him our credit bills and by the time we left that place he was taking care of everything!
He called all of our creditors and sent a letter of cease and desist and we never got another call. We went to court and it was in and out..noine of the creditors showed up and fought it. We were given a payment plan that we could afford and sent it to the chapter thirteen office every month and they paid a portion to each creditor.
We stayed on it for 3 years, I think it was and that was it. It stayed on our credit for 7 years but we were able to bring our credit back up. As a matter of fact we ended up getting 3 credit cards over the last 3 years.
Then my husband lost his job and he was out of work for over 6 months and we ended up charging to much on those 3 cards and when he went back to work he just wasn’t making what he was before so just recently we got behind in our payments cause we ciuldn’t make the minium payments anymore, so late fees and over the limit fees got us behind AGAIN.
This time we refinanced our house and used the equity to pay off a loan and 1 of the bigger of the credit cards leaving us with two cards left that are behind. My husband is working with them and so far it is looking good. They are really working with us so far.
We actually was working with CCCS but it’s been really slow and while waiting on that we were getting further behind and getting 20 calls a day from 8 am till 9 pm from creditors. So my husband called the last two creditors and talked to them and if they do what they say, they will waive the late fees and over the credit fees and make our monthly payments more where we can afford them.
With lower finance charges we should be paid them off in less than 4 years. Which it would take 20 years to do with the finance charges the way it is now. Of course the cards will have to go but we have desided that if we can not pay cash then we won’t get stuff. We NEVER want to get be in this place ever again. That’s my story. Sorry it was so long. Hope it helps.
P.S. We did not own a home at the time of our chapter 13 but unless things have changed and I remember correctly the lawyer said that we would not have lost our home or car if we had owed owed on them. But check it out for sure first cause this was years ago and I don’t know for sure.