Chapter 13 Bankruptcy

[smorr]

What is the name of your state? Massachusetts

My daughter is in debt over her head. She's doing the best she can trying to get above water, but it hasn't been easy and I fear that someone's going to sue her just as she feels she's almost at a point where things can be managable. She has a car loan, auto insurance (of course), consolidation loan, which some places wouldn't accept the payments (Chase Bank was one of them). She's about $16,000 in debt, about $9000 of which is the car loan. She'll be done with that in 2009. She probably makes about $100 - $200 or more, less than she pays out per month. She lives with me. She's 25.

Is she still eligible to apply for a Ch. 13 even though she owns nothing? Can she keep her car even though she needs to include it in her petition? I suggested Ch. 13, but was fearful that she'd lose her car in the process and that's what gets her to work - she can't get to work without that. Any other obstacles anyone can think of that she'd face? I've done some reasearch on the web, but a lot of it is the same information over and over.

 

[bigun]

I'd not suggest bk to essentially wipe out $7K in cc debt.
The solution to her problem is more income and better budgeting. She needs to get a better paying job or, some pt work to clean this up.

 

[JustAPal00]

I agree with bigun! I'm 49 months into a 60 month chapter 13 and would not reccoment it to anyone. She just needs a better job, or a second job. I have 3!