InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Will need a job or steady income... Posted by Ward-CA- on April 22, 2003 at 7:39 PM In Reply to: Chapter 13. Almost Useless? posted by SeanW on April 22, 2003 at 12:57 AM : I'm not referring to the $185 emergency petition to delay a foreclosure, but actually filing the rest of the Chapter 13. I've been reading Nolo press's book... just for some backgrounding. My conclusions are that a Chap 13 is a waste of time and effort for most debtors. : Supposedly, you can file yourself, but I think most filers will need an attorney or accountant to assist with all the forms. That costs money. And if your plan is approved, the trustee adds 5 to 10% on top of the debts being repaid. : The Chap13 can convert some secured debt into unsecured, but there is a long list of expensive things that you're expected to prioritize in the repayment plan. (Child support, alimony, IRS, unpayed employees, and of course-- secured debt). : So it seems like the main benefit of the plan is reducing unsecured debt, some personal liens, and penalties on various other debts. But for someone with real cash flow problems, moving the debt around and reclassifying it won't change the fundamental problem... Not enough money coming IN!! : Chap13 might help someone temporarily out of work, with a lot of unsecured credit card debt. But it sure seems to me that getting rid of the house payment, and moving into a small apartment would provide more immediate benefits to people-- than enduring a 3-5 year bankruptcy plan. ====================== Sean, A Chapter 13 in Bankruptcy is a workout plan, not a wipeout plan. So you need to prove you’re employed or have money coming in on a regular basis (support from a divorce, etc.) in order to make regular payments to your repayment plan. What the repayment plan is designed to do is scale back your regular payments to the point where you can pay something on them, for a long enough time (3 to 5 years) to give you a chance to get to where you can finally handle your original debt load. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I'm not referring to the $185 emergency petition to delay a foreclosure, but actually filing the rest of the Chapter 13. I've been reading Nolo press's book... just for some backgrounding. My conclusions are that a Chap 13 is a waste of time and effort for most debtors. : : Supposedly, you can file yourself, but I think most filers will need an attorney or accountant to assist with all the forms. That costs money. And if your plan is approved, the trustee adds 5 to 10% on top of the debts being repaid. : : The Chap13 can convert some secured debt into unsecured, but there is a long list of expensive things that you're expected to prioritize in the repayment plan. (Child support, alimony, IRS, unpayed employees, and of course-- secured debt). : : So it seems like the main benefit of the plan is reducing unsecured debt, some personal liens, and penalties on various other debts. But for someone with real cash flow problems, moving the debt around and reclassifying it won't change the fundamental problem... Not enough money coming IN!! : : Chap13 might help someone temporarily out of work, with a lot of unsecured credit card debt. But it sure seems to me that getting rid of the house payment, and moving into a small apartment would provide more immediate benefits to people-- than enduring a 3-5 year bankruptcy plan. : ====================== : Sean, : A Chapter 13 in Bankruptcy is a workout plan, not a wipeout plan. So you need to prove you’re employed or have money coming in on a regular basis (support from a divorce, etc.) in order to make regular payments to your repayment plan. : What the repayment plan is designed to do is scale back your regular payments to the point where you can pay something on them, for a long enough time (3 to 5 years) to give you a chance to get to where you can finally handle your original debt load. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455