Chapter 13 Questions

Unsecured debt? are you speaking of credit cards and things of that nature? If so, you only pay a percentage of the debt and the payments would come directly from your paycheck to the trustee and then the trustee pays the debts from your payments.

I believe this is how it works :shock: Someone correct me if I'm wrong!!

The lawyer said he would do a Chapter 13 for only $400 more than trying to fight this stupid law suit.

Under the old law you would only pay 5% of each debt, but with the new law you pay 20% of the debt. And you are right Brownsugar, in OH you are required to have your check garnished which goes to the trustee who pays the debts.

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Is it as hard as people say to complete this type of payment plan? Even 20 % of the unsecured debts would be a big help. It's seems the harder we try to do things right, the worse it gets.

But does it go on their credit reports? I'm so tired and stressed right now. I'm being so whiny. I'm about ready to smack my husband because he is sleeping LOL! I get myself so worked up over things sometimes. I guess we can talk further with the lawyer on this. We didn't get into much of bankruptcy talk this morning. He would do a payment plan too since there is only one income in the house basically.

I would think not because your hubby is the main person listed on the loan. So it would hit his credit report not hers because she is not the one filing. I could be wrong because I never filed chapter 13 we filed chapter 7.

And lol on the smacking. When this is all over you can be the one sleeping instead of him.

Well, the first thing I need to do is respond to the summons. A good friend has given me a lot of good ideas on that. Then, I call the stupid lawyer's office tomorrow representing Beneficial to see what can be worked out. Then, we will talk to the lawyer further about Chapter 13. I'm in much need of sleep. Thanks everyone for your help :-)

Mishele ~ I have sent you some links I found on Chptr 13. When we filed, it was a chptr 7, so for 13's I don't know that much about them. Hope the infor helps.

Your CR will show that you are paying the debt back under a chpt. 13 repayment plan. I did a chpt. 13 and actually I have not had any problems with my credit, it actually improved. And they take the payments from your paycheck (garnish) and it goes to the trustee who pays your bills listed in your plan. It isn't difficult.

Thanks everyone for your thoughts and suggestions. We have been able to make payment arrangments on this dang Beneficial account. We are still going to meet with a laywer to dicuss a possible Chapter 13 payment plan. We will be able to avoid a lawsuit by working with their attorney. I guess that's a step in the right direction.

I really wish you good luck on this.

Anon

Mishele - the payment plan is not difficult to complete at all, since it comes right out of your paycheck. You may have a little problem adjusting to the reduced income, but that can all be overcome with some budgeting, once you know what your new income amount will be after the plan payments are taken out.

Well my husband would actually be the one filing, not me. I went through a Chapter 7 a few years ago. Hubby has a lot of unsecured debt, mainly past medical bills so we'll see what the attorney says next week. We have everything together on our end though. He did mention that his mother would be notified but it shouldn't go on her credit report. I talked to her about it last night and she said she would just pay the loan off. I told her it wasn't necessary but I don't think she wants to see her baby have to through all of this crap. It's something that will require a lot of thought and discussion though.

Wow, that's a very generous offer on his mom's part, but I certainly understand her wanting to help out. Talk it over with your husband and his mom and see how this might affect things down the road. You don't need any negative effect on the relationship between your husband and his mom from this.

PM me if you need to talk. :D

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