Chapter 13

13 Replies
Cathy - October 6

Have any of you filed for bankruptcy specifically chapter 13 and then had a baby? I am in the middle of filing and am scared that the payments they want us to make will not be feesable after the baby is born.


kris A. - October 6

Cathy - why are you filing 13? A chapter 7 is still allowed, but better hurry before rulings change - there isn't much difference between a 7 and 13 in the eyes of creditors, and a 7 gives you a fresh start. I filed a 7 about 10 years ago, and it made all the difference in being able to care for our kids... I bought my home about 5 years ago and my credit is now excellent, so you can recover if you learn from your mistakes... best of luck -


cathy - October 6

we have too much money left over every month after paying our secured debt to file 7. our attorney said we cannot file 7. too much money left. HA


=) - October 6

Go ahead & file. Don't worry, the rest of us will pay for it with higher interest rates!


Bonnie - October 6

Kris A., how did you get a house after filing bankruptcy?


kris A. - October 6

To Bonnie, When we filed, we were both enlisted in the navy as junior petty officers and when kids came we couldn't afford the daycare in addition to our debt load. We filed Ch. 7, then were very careful with our money, got one 29% visa to rebuild our credit, and bought everything else in cash. After 3 years, got another card and used it responsibly - also at 29%, by the way - but got out of military, got a better paying job and stayed consistent with paying all bills on time. When it was time for my home loan, they looked at the cause of bankruptcy - daycare bills exceeding 2400. a month while in the service making 1750 a month... and saw that the Navy wouldn't let either of us out as we were critical ratings... they gave us the loan. To this day I mostly use cash and keep my visa balance very low. I learned from my mistakes, and wont make them again. To Cathy - I would hold off on filing until child is born and then you can figure in the baby's expense.


Bonnie - October 6

Thanks Kris :)


TruckinFool - October 6

Too much money and filing I the only one that seems strange to?


Jamie - October 7

TruckinFool, "too much money" doesn't mean enough money to live on.


Lisa - October 7

I agree; to someone making minimum wage $12.00 an hour is a lot of money. That's not enough to live on; I can't live on that.


Cathy - October 7

What I mean by "too much money" is that after we pay our mortgage and other secured debt and our living expenses we would have more than 500/month excess. This does not include any credit card debt or personal loans that we have. Also it does not include all the hospital bills that I have due to my previous hospitalizations and d&c from past miscarriages. My insurance is awful and will not pay for just about anything. My husband and I do make a good amount of money, but with all of our bills from our "stupid years" and hospital bills on top of that, and now that we are homeowners the added expense of upkeep and with the baby coming, we are up to our eyelids in debt and have seen no other way. Kris I would wait until after the baby is born but the new laws come into effect this month and my attorney advised me to file ASAP. FYI Chapter 13 is a bill repayment plan. We will essentially be paying back our debt without the interest. It will be garnished from our paychecks each week until the full amount is paid for.


Brachah - October 7

What state do you live in? This is what I propose you consider: 1) file your 13 now before the laws change on the 17th - which is ten days from now. 2) Have your baby. 3) Show an effort to follow your Chapter 13 plan for several months 4) CONVERT your 13 to a 7 because by then you can amend your pet_tion and add baby related bills and expenses and "use up" your $500 disposable income.


Cathy - October 7

Thank you. Are you an attorney? You sound like you know what you are talking about. I am from Indiana by the way.


Brachah - October 13

Oh, goodness no. I have, however, worked for a Texas Bankruptcy law firm in the past - five years experience - and my best friend still works for a bankruptcy law firm and she is constantly telling me what is going on with the changes and headaches and stuff. I was just giving you my opinion in the matter, and I hope everything works out for ya'll. Sorry it took so long to respond.



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