Can anyone tell me the difference between Chapter 13, 11 and 7? Pros and Cons.? Do they really work? Does it screw up your credit report?
Chapter 11 is for businesses. Chapter 13 is for individual with a pay back plan. The court determines a proper amount you can pay back over a period of time and distributes to your creditors. Chapter 7 is a total bankruptcy with no pay back plan. You may not be able to keep somethings under this plan. Yes it will screw up your credit for 7 years, but if you're already behind on payments, your credit is screwed anyway. Very brief synopsis.
robbie, if you need an attorney let me know. I know a great guy in Smithfield across from the court house.
Chapter 7 = 10 years Chapter 13 = 7 years And it goes much further than that, really. Notice loan applications, and even many employment applications nowadays, ask "Have you ever filed for bankruptcy?". The question is "ever". The question is not "in the last __ years". The question has nothing to do with what will show on your credit report. Answer dishonestly and you've technically committed fraud. Also, Chapter 7 bankruptcy may fall off your credit report in 10 years, but your court records last for about another 10 years. Court records are public records and can be searched by anyone.
They can also cancel your Home Owners insurance if your case allows you to keep a home. The insurance companies say, "If you file bankruptcy you're are prone to burning down your house for the money." :? :?
Wow, would have never thought of that one! I LOVE MY house! I guess there are people out there that do that kind of stuff, HUH?
I filed hundreds of Chapter 13 cases and never had a client's insurance canceled because they filed bankruptcy; had many canceled for non-payment of premiums, you do have to continue to make your insurance payments and your house payments, as well as your chapter 13 payments, if you want to keep the house.
It is not part of the court case. It is the insurance companies policies. I used the wrong word. They won't 'cancel' your policy. They just won't 'renew' your policy on it's yearly renewal date. Pretty much they 'cancel' you but in real nice terms.:lol: Anyone signing an insurance policy after 1991 has a credit check waiver included, which the companies use to run yearly checks.
