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  1. #1
    Join Date
    Dec 2010
    Posts
    1

    Default Should I File Chapter 13 Bankruptcy

    My question involves bankruptcy in the state of: WA

    I'm debating on whether or not I can file Chapter 13?
    Synopsis: Lost my job a year and a half ago. Was on unemployment. Took out 401K year before to survive, now paying tax penalty every month. Couldn't pay credit cards or mortgage (behind by 5 months). Don't have a second mtg, but have HELOC. Started working only 3 months ago, with less pay. Now stuck? Creditor(s) calling, can't
    catch-up. Should I file? Any advice would be most appreciated. Thanks.

  2. #2
    Join Date
    Sep 2010
    Posts
    478

    Default Re: Should I File Chapter 13 Bankruptcy

    Quote Quoting kskarinn
    View Post
    My question involves bankruptcy in the state of: WA

    I'm debating on whether or not I can file Chapter 13. . .paying tax penalty every month.. . . mortgage (behind by 5 months). Don't have a second mtg, but have HELOC. Started working only 3 months ago, with less pay. . .can't catch-up. Should I file?
    1. You need to consult with an attorney.
    2. Your HELOC is a mortgage
    3. Chapter 13, if you can afford it, will do the following

    a. Allow you to cure the arrears on the 1st over the length of the Plan so long as you resume regular monthly payments after filing;

    b. Allow you to either, cure the arrears on the 2nd (HELOC) so long as you resume regular monthly payments after filing OR, if there is no equity after consideration of the 1st mortgage, strip it off;

    c. Pay your taxes over the life of the Plan without additional interest (assuming no tax lien has been filed - if a lien has been filed you may have to pay interest on a portion of the claim);

    d. Get rid of your credit cards and other unsecured debt to the extent that you cannot afford to pay them, subject to certain conditions that your attorney can describe more fully.

    Consultations are usually free. Next step: set up an appointment with an attorney in your area.

    Des.

  3. #3
    Join Date
    Jan 2011
    Posts
    4

    Default Re: Should I File Chapter 13 Bankruptcy

    The payments you make into your chapter 13 plan if you go that route are based on your disposable income after allowable expenses. I am linking to a bankruptcy facts page that may help a bit.

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