I could use some help understanding “Chapter 20” because I’m getting a little lost in the strategy side of it.
In considering bankruptcy and trying to figure out if doing a Chapter 7 first and then possibly a Chapter 13 later actually makes sense in real life, or if it’s just something that sounds good on paper.
My situation is kind of mixed. I’ve got a mortgage and I’m not in foreclosure, but I’m behind for March and April and I’ve already tried twice for a loan modification and got denied both times. I also have a decent amount of unsecured debt that would get wiped in a Chapter 7.
What I’m trying to figure out is:
-If I do a 7 first and wipe out the unsecured debt, does a 13 afterward still really help with anything besides mortgage arrears?
Honestly, at that point, would it just make more sense to go straight into a 13 if the goal is just keeping the house stable? One attorney I briefly spoke with said I would possibly be on a 1% payment plan based on my income and lack of disposable income so not sure if that makes any difference.
I’m trying to make a decision that actually works long-term, not just technically works on paper. Any real experiences or insight would really help.
TL;DR:
Debating Chapter 7 → Chapter 13 vs going straight Chapter 13. Want to wipe unsecured debt but also need a realistic plan for keeping my house after failed loan mod attempts.
submitted by /u/AuntieCaramel
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