[lbo-talk] bankruptcy

DSR debburz at yahoo.com
Thu Mar 10 10:43:48 PST 2005


--- Doug Henwood <dhenwood at panix.com> wrote:


> If you've got a credit card problem (and live in the USA), think
> very
> seriously about filing - NOW.
>
> Individual circs may vary, so consult a lawyer. But it's highly
> likely that if you're sweating to service your debts, "going
> chapter"
> (as an old Texan friend of mine says) may make your life a lot
> easier, and with fewer side-effects than you may fear.

This is well-timed advice, indeed. It's my understanding that even if you are considering reorganizing under Ch 13 because of a mortgage or those nondischargeable debts, it's better to file under the current version of Chapter 13 than wait and file under the revised law which has a few more stringent qualifications than the present version. Under current law, Ch 13 reorg plans can allow you to catch up on secured and nondischargeable debts at 0 to mid single digit interest, depending on jurisdiction and individual variables, and still discharge unsecured debt.

- Deborah



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