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Were considering chapter 13 and were wondering if having all of our debts worked through one of those credit services that lower interest rates and payments would be a better/equal alternative. We bring home about 7,000 per month after taxes and have a mortgage of about 2200 per month. Were afraid that our disposable income will give us a large BK payment. If our BK payment is going to be a thousand or more than what is the use fiilng BK in the first place. Our credit card payments now are about ,200 per month. I figure I can get them lowered through making deals to a thousand. Were very confused at this point. Any suggestions?
Actually Bert,

The 2,600 that you think we are mishandling goes to 2 car payments, insurance, utilities, food and clothing for our 3 kids, per gallon gas to get around and you’d be surprised to find out there is very very little left over to have all sorts of fun that people who are hemmoraging money get to have.

South Carolina Bankruptcy Attorney Showell Blades leads a 90-minute seminar on Chapter 7, Chapter 11, and Chapter 13 bankruptcy trends and procedures.

For lack of a better term i was forced to take out a mortgage last year on my home that was paid for. The terms and percentages were awful but thats besides the point.

My income at the time was sufficent to pay my bills and the mortgage.

I ran a successful business for a little over two years until 4 months ago when things went downhill. My mortgage payment is more than most people make in my area in 2-3 paychecks and now im unemployed with a SMALL list of other monthly bills besides the mortgage. I do have about k in other unsecured debt from the business and other unsecured creditors from when i was young that i never took care of.

I have thought about bankruptcy, chapter 13 is a no-go mostly because i cant afford the mortgage payments now so why would i waste my time with a 13?Otherwise it could work,but otherwise i dont really need a bankruptcy if were not including the house mortgage because i could just set up monthly payments with my creditors at a small payment.
7 minutes ago – 3 days left to answer.
my monthly expenses are slim so im not worried about that.

My problem seems to stem from my home, i have about 40k worth of equity in a 117k home.

With that kind of equity, it really does not make sense to file a chapter 7 because in my state you lose all equity besides 5k no matter what.

It really doesnt make sense to do a 13 because as already stated i cant afford the payments now,much less the payments to all my creditors plus the mortgage.

And the only other options are selling, of which is not really an option because foreclosure has already been initiated.

Or a deed in lieu of foreclosure, but then im giving them all of my equity for "free" although the foreclosure would likely not show up on my credit report and i could begin to repair the other damage.It would be faster to do this than to wait 10 years for a BK to come off the credit or 7 years for a foreclosure to come off.

OR just let it be foreclosed on……thats not appealing at all ofcourse.
ADVICE?

Sometimes the only option for my prospects is Bankruptcy or Debt Consolidation. Now as a Credit Consultant my job is to restore and maintain a squeaky clean credit report so it kills me to send them off to file BK or consolidate their debt however it’s their only option. I prefer a non-profit in the Central Valley, CA (because that’s where my office is located) who can offer these services and become part of my referral directory. If anyone out there can steer me in the right direction I’d really appreciate it. Thank you

Here is the situation:

College "A" – 2003 – 1 semester I did all the paperwork to receive a subsized and an unsubsized loan, based on full-time status. My mother was suffering from terminal cancer and at the time it was impossible to attend school full-time. So, I withdrew from 2 courses after the free drop-add period but I was still billed for the classes. The college cancelled the unsubsidized loan and returned it to the lender. The college tried to collect on the debt and filed a judgment against me. Garnishment of my bank account, etc.
Total = 00

College "B" – 2006 – 1 semester I was registered full-time. But due to family issues, I was going back and forth from Europe. I wasn’t able to attend, nor was I able to withdraw in time. Therefore, I received incomplete grades. This affected my student loan eligibility and the college cancelled my student loans, both subsidized and unsubsidized. The college is still trying to collect on this debt, but hasn’t sent it to collections yet. Total = 00

In June 2007, I filed Ch 7 BK pro se, and it was discharged in Oct. 2007.

College A accepted the discharge of the debt and I owe them nothing. They stopped their attempts to collect the debt with their attorney. I was able to apply for new student loans and currently enrolled. Case closed!

College B is saying the debt is not dischargeable. I’ve been fighting this with them for a year now. Today, they are saying that they researched this issue with AES (American Education Services), who was the guarantor, and that whomever they spoke to at AES says this debt is not dischargeable.
However, I called AES myself and told them about the situation. Since the loans were cancelled and the money returned to the lender/guarantor, I didn’t owe anything. They didn’t understand why this college would even need to contact them for answers, since this debt is now between me and the college and no longer involves AES.

What I don’t understand is why College A would accept the discharge, but College B will not??? I didn’t receive any educational benefits with either college, since I wasn’t able to attend the classes.
Since I did my bk pro se, I doubt any lawyer will help me fight this!

Is there anyone out there who has any similar experiences or legal advice?
How much would it cost to fight it?
I am desperate! I want to take care of this before they send it to collections and it goes on my credit report, or they file a judgment against me!!

Thanks!!!
Both college names were listed in my bankruptcy.