Chapter 7 or Chapter 13 — Which is right for me?
A couple I had talked to a couple months ago had decided to file a chapter 7. They are going to be having their second child so with day care they new mom would be a stay at home mom so expenses would need to change. They were going to surrender the home, the two lease cars and credit cards. If this was the plan then yes the chapter 7 would be the way to go. This way 3 to 5 years when she decides to go back to work their credit would be built back up to buy another house along with new cars.
They came in yesterday and had decide to keep the house because of a raise he was going to be receiving they felt they could afford to make the payment. They were still going to surrender the cars and credit card debts. But since they had stopped making the house payment 3 months ago the mortgage company could not come up with a plan they could afford to do. So the decision was made to file the chapter 13 which they could still surrender the cars, deal with the credit cards, but most of all catch up on the house.
The chapter 13 would also allow them if the house payment was still too much the chapter 13 could be converted to a chapter 7 and surrender it.
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