A NEW INCOME

A New Income Q&A

Q: Chapter 13 Bankruptcy question?

My sister makes about $28k a year. She is a single mother. She filed Chapter 7 last year. She gave her landlord a 30 day notice that she was leaving. She has lived in the apartment for 3 years. Her lease renewed in August. The landlord called her and said she is responsible for rent until they re-rent the place and if she doesn't send the $$ they can file a judgement and garnish her wages. My sister has worked really hard to get this new place and she has done an excellent job on the accounts that have been opened since her discharged Chapter 7. She feels her only protection from the landlord is to file a Chapter 13. From what I know about Chapter 13's, your "disposable income" is used to pay your creditors. My sister really doesn't have any disposable income so can she even file a Chapter 13? Also, will she no longer be able to use her new credit cards she's been doing excellent on?

A: it doesn't work like that. we thought it did when we filed and it cost us, big time. unsecured debt is not something you will have to continue to pay for. its written off, at least it was here in indiana about three years ago. i wrote off a 2000.00 gas bill. if the law has changed, it doesn't matter. you can pay 10.00 a month for 6 years even if the debt is 10,000 it doesn't matter. for instance. I owed 13,000 on my house. I kept under the bankruptcy and paid 256 a month until I decided to turn it back over to the bank. now, to protect me from foreclosure and having to pay the difference between what I owe and what I sell it for, I instead by 40 a month because that all I have left over *wink wink* so now, for 14 months I pay 45 a month. and pay a total of 600 and something as opposed to 9,000. and they can do nothing about it.

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