LogFAQs > #948215733

PoundGarden posted...

It's not the end of the world but also shouldnt be done lightly. Some debt is not forgivable, plus it costs a fair amount of money to file. If you have any assets (metal, firearms, anything) you will have to forfeit or pay a portion of their value. They'll also take tax returns, property tax returns basically any "extra" money you're due.
You can keep your home and car though. All told mine cost me about $3500

thanks for sharing. yeah im deep in the hole. every month im coming out in the negative by nearly a thousand dollars. i dont have any assets i dont think. my bitcoin? i dont mind giving that up.

thats good that you keep your car. i was worried id lose that since yeah its an asset, but i mean its only worth 2000 dollars.

Zanzenburger posted...

I did many years ago. Hit a rough patch with some investments not panning out like they should have and some unexpected family medical expenses. I filed Chapter 13, which is essentially a reorganization where you pay back all your debts to one trustee for a period of five years as a percentage of your annual income. Then, whatever you owe after those five years is forgiven.

Most people are familiar with the Chapter 7 bankruptcy, which is the liquidation one. That one causes you to lose most fixed assets you won except for your house and primary vehicles in exchange for all your debt being erased after 3-6 months. But a Chapter 13 bankruptcy is basically consolidating all your secure debts into one manageable payment plan over five years, and then forgiving some (if not all) of your unsecured debts (i.e. credit cards, medical bills, personal loans). Keep in mind that student loans are not dischargeable in either of those scenarios.

Let me know if you want to know anything about either process.

thanks for this reply. yeah i was confused on the two types, so that helps. who determines what you get? do you apply for a specific type or does a judge decide?

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