Chapter 13 Bankruptcy: a Smart Move or a Waste of Your Money and Time

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  • Опубліковано 31 січ 2023
  • While Chapter 13 bankruptcy has its place in certain emergency situations, I am more and more convinced that Chapter 13 repayment plans are likely to be a waste of your time, money and efforts.
    If you did not know this already, the bankruptcy laws in the United States were written by lobbyists working on behalf of lenders and banking interests.
    Credit card companies and consumer lenders want you to exist in perpetual repayment status - making minimum payments, paying late fees and regularly refinancing loans. They don't want you to default but they want to make it extremely difficult to escape recurring debt.
    This same philosophy applies to filing #chapter13bankruptcy in the United States. If you have not yet seen it, take a look at comedian John Oliver's humerous analysis of how bankruptcy works here: • Bankruptcy: Last Week ...
    In most situations, Chapter 13 is designed to fail and currently fewer than one in three Chapter 13 plans actual succeed. Most fail within the first year or two, meaning that bankruptcy filer has put his life on hold and spent thousands of dollars delaying the inevitable.
    In these cases a Chapter 7 liquidation could be a much better choice. #chapter7bankruptcy
    Sometimes you have no choice but to file Chapter 13 if you need to stop a foreclosure or repossession. But before you sign on the dotted line have a heart to heart talk with your lawyer about whether you have a reasonable shot at sucess in this most difficult endeavor. #atlantabankruptcy
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КОМЕНТАРІ • 57

  • @keithcrowe1787
    @keithcrowe1787 8 місяців тому +29

    I just made my last Chapter 13 payment this month. Now I am waiting to hear from the trustee and my attorney on the final steps to discharge the bankruptcy. At times it was near impossible to make the payments on time and deal with issues like you stated. I am proud to be one of the 1/3 that successfully complete the bankruptcy process. No vacations in 5 years, driving old cars, rarely eating out at nice places etc.was a huge price to pay but in that time I have seen my house almost double in value and learned some valuable lessons in money management going forward. I would say that it CAN be done but not without making major changes to your lifestyle before that caused you to be in debt in the first place.

    • @sheneathahollowell2750
      @sheneathahollowell2750 5 місяців тому +1

      So stupid question how would they know what u are spending money on?

    • @PeaceNinja007
      @PeaceNinja007 2 місяці тому +1

      How much were your monthly payments set to?

    • @ladytee1705
      @ladytee1705 Місяць тому +1

      Congratulations 🎉 I just started mine, and you just gave me the motivation to do it. Thank you

  • @turbozguy
    @turbozguy 2 місяці тому +8

    I have to disagree with his opinion on chapter 13. My monthly payments were 20% of what I was paying on credit cards and such. If you are disciplined and don't overspend it's a great option. Especially with our current economy in the US.

  • @attorneydavidromito1567
    @attorneydavidromito1567 5 місяців тому +8

    Bankruptcy is a setback, not a defeat. Hopefully, others will seek professional help from watching your videos.

  • @carmenmadrigal4622
    @carmenmadrigal4622 2 місяці тому +3

    Thank you so much for the information, I will just pay my credit cards one at the time when they offer me a settlement 😊

  • @AfrikanLifestyle
    @AfrikanLifestyle 8 місяців тому +8

    Great breakdown. It's enough info fir me to rule this option out.

  • @deliavelasquez2591
    @deliavelasquez2591 Рік тому +13

    I have been on Chapter 13 for 4 years and 3 months, just 9 more months to get over this, anxiously waiting for that day. I am only paying 55% of what I owed.
    I needed a new car and the trustee did not approve the loan.
    It's hard, but you can pay for it.

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +5

      I hope you are successful in obtaining your Chapter 13 discharge.

    • @tiffanynguyen343
      @tiffanynguyen343 Рік тому +2

      I don’t get it. I’m in chapter 13 and able to get a car loan without going thru a trustee

    • @cafedulce6545
      @cafedulce6545 Рік тому +2

      How much are you paying for chapter 13 monthly

    • @jerezarl
      @jerezarl Рік тому +4

      I make it work with my girl everything is under her name I trust her she trust me all it takes is for 1 to have great credit

  • @amb-yz9ee
    @amb-yz9ee Рік тому +7

    I appreciate that you are realistic as to the difficulties. Some lawyers act as if bankruptcy is so good to the point of implying everyone alive should file, even over small amounts of money.

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +4

      I have been filing Chapter 13 cases on behalf of clients for 30 years. What used to be a viable solution now makes less and less sense because these cases just don't work.

  • @charlessuez3996
    @charlessuez3996 10 місяців тому +2

    Thanks for the information. I have a question, I am filling chapter 13 because l have a judgment against me. After l filed, l informed the attorney of the person that won the case and still, 2 days after, he filed a notice to Lis Pendens. Is this legal? I am in Florida. As per my attorney, he was not supposed to do that. But, why he did it? Can the court grant him that petition? Even though l have filed Chapter 13? I believe all proceedings against me should have sopped or am l wrong? Please let me know. Thanks 😊

  • @Em_Dee_Aitch
    @Em_Dee_Aitch Місяць тому +1

    We did a 13, and we’re sorry we did. Now our attorney is advising we flip it to a 7 - not to mention the fact that he wants an additional 750 bucks to do so.

  • @bonniej0
    @bonniej0 9 місяців тому +1

    Is there an amount I would have to put down on my home payments with a chapter 13 upfront?

  • @patriciaannhenderson9533
    @patriciaannhenderson9533 Рік тому +1

    Would clearing your credit for the debt that is 7 years old help or no, while in bankruptcy ch 13

  • @bonniej0
    @bonniej0 9 місяців тому +1

    Is it discharged from a chapter 13 is that mean you're done and you don't know anything in the house anymore or you could just walk away just like 7?

  • @1dartow
    @1dartow 2 місяці тому +1

    I am in the last year and it can be done. Was it worth it? I don't know, if you can you should pay everybody back what is owed. Again, if you can. If you are just using the system, it doesn't matter what you do. What comes around goes around.

  • @dianec3854
    @dianec3854 Рік тому +5

    That was very helpful because the attorneys that I called regarding bankruptcy they never said anything about the failures of repayment on 13. I would like to know that I can’t seem to find an answer. How much does the debt collectors pay on your portfolio or charge-offs? I keep hearing in the terminologies they pay pennies on the dollar.

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +4

      Generally speaking the older the unpaid debt the cheaper it will be on the open market.

  • @niloebrahimi3527
    @niloebrahimi3527 Місяць тому

    Hello , my deceased husband took equity of home credit and also he did bankruptcy chapter 7 .
    How can I weave that second mortgage.or if it is possible to convert chapter 7 to 13

  • @kathiehoward2778
    @kathiehoward2778 9 місяців тому +7

    What is a better solution?

    • @Loveit45
      @Loveit45 3 місяці тому +4

      Don’t pay the credit let them call you and talk them down

  • @user-ox4kt9ft3f
    @user-ox4kt9ft3f Рік тому +2

    Question" Why do credit companies still report negatively after you are discharged?

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +2

      Because credit reports represent history and discharging debt in a bankruptcy is a fact that members of the credit bureaus can take into account when making credit decisions.

  • @AndrewM62
    @AndrewM62 Рік тому +2

    Is the monthly payment on a Chapter 13 divided by what you owe ? For example, someone owes 60,000, would that be $1,000 per month plus legal fees for the next 5 years ?

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +1

      It is more determined by 1. the means test calculation and 2. the liquidation test

    • @nko5666
      @nko5666 Місяць тому

      I owed 65,000 in credits cards ,personal loans. I pay 1167.00 per mth for 5 yrs

  • @AshantyDarling
    @AshantyDarling 4 місяці тому +1

    Will a chapter 13 save me from getting evicted if I have rental arrears I can’t pay ? Do you recommend this or just leaving the apt

    • @atlantabankruptcy
      @atlantabankruptcy  4 місяці тому +1

      Bankruptcy may stop an eviction temporarily but the Bankruptcy Code is friendlier to landlords than tenants in eviction cases.

  • @nko5666
    @nko5666 Місяць тому

    I filed Chapter 13, should of never did it! I wish people will be honest going in I agreed to a 100% plan the trustee sent 2 realtors to my home saying I had 2 much equity. Anyway I feel like doing voluntary dismissal. Selling my home getting all my money. And getting a place under my daughters name or just settling the debts myself.

    • @juhilarkin1673
      @juhilarkin1673 Місяць тому

      your daughter is minor? or are you allow to do that?

    • @nko5666
      @nko5666 Місяць тому

      @@juhilarkin1673 my daughters are 21 , and 20

  • @jimmykline316
    @jimmykline316 Рік тому +1

    Is a credit forgiveness a better options than filing chapter 13?

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +2

      I think you mean "debt forgiveness." If you can convince all of your creditors to forgive or greatly reduce your debts, that would be better. But it will be difficult to convince all of your creditors to get on board with this. Also you will get 1099s for debt forgiveness. But in general I have a hard time recommending Ch. 13 unless there are no other options.

    • @brittneywilliams2730
      @brittneywilliams2730 11 місяців тому +2

      I did chapter 7 in the past it's much better to get it done and over with if I have to do it again that's the only one I would do

  • @moviesforrandy
    @moviesforrandy 3 дні тому

    does the interests keep going on 13?

  • @originalkencito
    @originalkencito 6 місяців тому +2

    What if I only make $3000 a month and my bills are $6000 a month can I pay each creditor $2 a month?

  • @andrewwilson3963
    @andrewwilson3963 2 місяці тому

    I have 13 payments left

  • @user-is1qk3yz9g
    @user-is1qk3yz9g Рік тому +2

    What is your take on “debt relief” companies? Is chapter 7 a better option if you’re eligible?

  • @JoshB913
    @JoshB913 26 днів тому

    Sounds like you might be better off to just stop paying your debts and let them drop off in 7 years. Especially if you live in a state where they cannot garnish your wages and you do not own a home that a lien could be placed on.

  • @RT-qz5ci
    @RT-qz5ci Рік тому +1

    Whats the alternative if you don’t qualify for ch. 7?

    • @atlantabankruptcy
      @atlantabankruptcy  Рік тому +6

      That is the problem - if you don't qualify for Chapter 7 and you can't fit into one by giving up secured assets, you may have no choice but to go into Ch. 13. If you do, you need to look carefully at the budget and assure yourself that it is liveable for the next 5 years. I have seen too many people stretch their budget to the breaking point to fit into a Ch. 13 and keep everything - those cases inevitably fail.

    • @cafedulce6545
      @cafedulce6545 Рік тому +6

      ​@@atlantabankruptcyi am in the process of doing chapter 13 i have like a 35,000 debt on credit cards my home is up to date and cars too but i am supposed to do a good faith payment of 400 dollars for at least 5 months and then see how many creditors send the paperwork and if all of them do supposely i need to pay 700 for 4 years and this is the part that scares me the most. If i am doing bankruptcy is because i couldnt afford payments so how come payments are that high? And of course i ask myself will i be able to pay 700 monthly for 4 years? I dont know what to do i live in Miami FL

    • @SemiTucked
      @SemiTucked Рік тому +2

      ​@@cafedulce6545😂
      3:41

    • @donor4053
      @donor4053 Рік тому +2

      @@cafedulce6545did you do it ?

    • @itguru2037
      @itguru2037 2 місяці тому

      @@cafedulce6545what is the outcome of your situation?

  • @moviesforrandy
    @moviesforrandy 3 дні тому

    what did trump use 7 or 13? I checked in on filing 7 this week but I have more than $20.000 in property un dam real.

  • @moviesforrandy
    @moviesforrandy 3 дні тому

    the system is rigged.

  • @attorneydavidromito1567
    @attorneydavidromito1567 8 місяців тому +3

    Bankruptcy is a setback, not a defeat. Hopefully, others will seek professional help from watching your videos.