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"Is Chapter 13 Worth It" Discussion

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Professional Q&As for "Is Chapter 13 Worth It"

Upsolve Community Member
2022-01-17

How do I file chapter 13 on my own

Community Replies:

Upsolve Community Member
See your other post, Elizabeth! https://upsolve.org/learn/how-to-file-chapter-13-bankruptcy/

Upsolve Community Member
Elizabeth, here's another article you might be interested in as you explore your options: https://upsolve.org/learn/is-chapter-thirteen-bankruptcy-worth-it/

Upsolve Community Member
Hope those help! Jacqueline shared a helpful article about considering Chapter 13- check it out and ask back here if you'd like more information about your options! 

Upsolve Community Member
Check out the https://upsolve.org/learn/how-to-file-chapter-13-bankruptcy/ in our Learning Center for a general overview. 

Upsolve Community Member
2021-12-16

I would like to file chapter 13. I have a van that will be repoed within the next few days. I own my place and a mobile home on a private lot in a trust. It's not worth much but how can I keep it?

2 Reactions

Community Replies:

Upsolve Community Member
Hi Jackie! This article describes some of the options you can use to keep your home in a Chapter 13 bankruptcy: https://upsolve.org/learn/can-bankruptcy-take-your-house/ but ultimately it will depend on your state and personal circumstances. 

Upsolve Community Member
I just saw this article and I think it has some information you'd be interested in reading about repossession and bankruptcy: https://upsolve.org/learn/should-i-file-bankruptcy-after-repo/

Upsolve Community Member
2022-01-03

Which chapter allows me to keep my savings(5k) and can discharge taxes and traffic taxes? I heard chapter 13, but there will be a payment plan which I'll never afford.

2 Reactions

Community Replies:

Upsolve Community Member
Faisal, this article discusses the differences https://upsolve.org/learn/chapter-7-versus-chapter-13-bankruptcy/ and if payments are not in your plans, then you will want to check out https://upsolve.org/learn/chapter-7-bankruptcy-income-limits/

Upsolve Community Member
There's a lot here that may depend on your personal circumstances- but you might find this a helpful place to start: https://upsolve.org/learn/traffic-tickets-and-bankruptcy/ 

Upsolve Community Member
This may also be useful! https://upsolve.org/learn/irs-debt-and-bankruptcy/ 

Upsolve Community Member
I already paid for my ticket. Im sad. But my question can I keep my savings 5k?

Upsolve Community Member
Faisal, checkout https://upsolve.org/learn/trustee-review-bank-statements/ ---- Did you pass the https://upsolve.org/learn/chapter-7-means-test-calculator/ with the $5K in savings included?

Upsolve Community Member
Thanks. This an extremely important part of the process. 5k is all what I have in addition to 2k worth car and some laptops. I am receiving government benefits(food stamps). Doesnt this fact alone mean I pass the means test?

Upsolve Community Member
It doesn't quite work like that- you'd still need to fill out the Means Test form. You can determine how the Means Test applies to you here: https://upsolve.org/learn/chapter-7-means-test-calculator/

Upsolve Community Member
Very useful article!  Im not sure why do I need to calculate my monthly expenses if I make below the household income limit? It isnt obvious to the court that one doesnt have any disposal income if make below the annual income?

Upsolve Community Member
That's just not how it works, unfortunately. The rules for this are set by bankruptcy law. 

Upsolve Community Member
2021-12-16

I have $18,000 worth of lean against my property but I qualify for bankruptcy any type of bankruptcy?

2 Reactions

Community Replies:

Upsolve Community Member
Chapter 7 and Chapter 13 bankruptcy are legal tools to get debt relief if you’re no longer able to keep up with your minimum payments. Review this Upsolve article to help determine if either type of bankruptcy is right for you: https://upsolve.org/learn/chapter-7-versus-chapter-13-bankruptcy/ Also you can learn more about liens here: https://upsolve.org/learn/every-type-of-lien-explained/  Do not hesitate to ask any additional questions.

Upsolve Community Member
2021-12-02

Do you have any suggestions for improving your finances once you get your bankruptcy discharge? I don't want to be in this situation again

17 Reactions

Community Replies:

Upsolve Community Member
One thing that a lot of people think about is their credit score- this can be really important for things like applying for housing. Here's our https://upsolve.org/learn/rebuild-credit-after-chapter-7-bankruptcy/

Upsolve Community Member
Upsolvers, what else has helped you after discharge? 

Upsolve Community Member
I saw that there's a tool that helps people build their credit by giving them a loan

Upsolve Community Member
^ yup! a credit builder loan! 

Upsolve Community Member
Check out https://www.seedfi.com/, I've heard they have some of the best rates amongst the credit loan tools.

Upsolve Community Member
Julie, I was discharged in July 2020 but after I had completed my Questionnaire, I worked on my "new" budget --- life AFTER Chapter 7. My preference is Mint, a free app but there are many budget tools out there. I opened a Chime Credit Builder account and it provides me with a Visa credit card but is SECURE meaning I'm drawing on my own funds and building credit. I'm just now completing my 2nd year of using this card and I have had no complaints at all! I also applied for an installment loan from Self, Inc. I call this "forced savings" because, when you make payments, you are actually paying YOURSELF. Yes, there is interest but at a decent interest rate while you make your monthly payments which are reported to the credit bureaus. So the credit and installment accounts help provide the "mix" of credit that the credit world likes to see. Lots more info, Julie! Let me know if you have specific questions about my rebuilding journey! Good luck! :-) 

Upsolve Community Member
You may find this helpful as well: https://upsolve.org/learn/rebuild-credit-after-chapter-7-bankruptcy/

Upsolve Community Member
Jeff Z, thanks for the heads up on Seedfi! I have two Builder installment loans already and don't want a third so I will payoff one and open the other to get slightly better rates. :-). 

Upsolve Community Member
If you're like me and never heard of a credit builder loan until you came to Upsolve, this article https://upsolve.org/learn/credit-builder-loans/ is a great introduction to the topic!

Upsolve Community Member
Jacqueline, I had never heard of them either but the concept is novel and, if followed wisely by us borrowers, it CAN BE a nice option when rebuilding credit. What it boils down to is weighing the "credit building" aspect with the interest rate they are charging so you need to shop credit builder loans too! Case in point: Jeff Z, an Upsolve Team Member suggested Seedfi (post above) and after going into my Creditwise account, I was paying TWICE the interest and I am supposed to be teaching this stuff, so never stop learning and seeking better terms no matter WHAT your economic status is! :-) 

Upsolve Community Member
One more thought. "Secured" credit cards and installment loans (working with your own money AKA "forced savings") I emphatically endorse, at least for me in the first 2-3 years after discharge? Why? While I learn better habits, what the best budgeting tools are, the best ways to build my "rainy day fund" etc, I am taking steps to improve my credit score. After this 2-3 year period of time, I may want to test the waters of practical unsecured lines of credit --- and if the interest rate has merit, only then would I take the plunge.


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