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Financial Planning / Living Under Bankruptcy

URL:  http://boards.fool.com/sean-they-are-both-personal-bankruptcies-but-15478460.aspx

Subject:  Re: Reestablishing Credit Worthiness Date:  7/31/2001  2:50 PM
Author:  Ciscokidnmemphis Number:  889 of 1260

Sean,

They are BOTH personal Bankruptcies, but they are different. On Ch 7, you surrender your money/property, etc... up to a certain amount that you get to keep. That stuff is sold to pay creditors. You are usually discharged between 6 months to a year. You do not pay anymore besides what you have.

After discharge you are OK to get credit again.

Ch 13 is like a payment plan, your debt's interest stops or it gets reduced, the creditors cannot take your property away. you get to keep most of your property, but the money is taken from your paycheck into the BK trustee.
Usually Ch 13 takes between 2-6 years b/c your BK does NOT get discharged until you pay back everything. You cannot borrow until you have paid all back in full.

So (number one I am TOTALLY surprised that you declared BK, I've read your posts on other boards from time to time and you never 'fessed up, even when people on other boards think that us who declare BK are the scum of the earth, I wish you hadn't lurk around here so long, I do like your posts and would love if you visit often) Which BK do you have? Ch 7 (most common one) or Ch. 13? If you have NOT been discharged, then you cannot get additional debt to buy property, unless you pay cash.

Cisco




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