My Husband Is Being Advised To Declare Chapter 13 Bankrupcy To Avoid Foreclosure. What Are Pros And Cons? ?

If you are facing foreclosure and you are having collection calls, your credit have taking a hit. Now yes chapter 13 will stop all your creditors from contacting you and you will save your home and other assets.
I did Chapter 13 and it was a living hell because you have to live with cash and how much is left for you it is dictated by the Trustee. All your unsecured you have to pay a percentage between 5-10%, however if you owe on a student loan, back taxes, child support you have to pay 100%.
You can put every single creditor in your chapter 13 including your mortgage payment and just make a payment every month (that is what I did) and deffer your student loan.
Your husband should look for a part-time after you go to the Court, because money is going to be very, very tithe, I’m saying after he goes to court because if he has a second job his income from this job will be taking in consideration for your monthly payment.
I hope the best for you, and good luck!!!

The cons are that you will have to pay back any debt that would have been charged off had you filed a Ch. 7 bankrupcy. Your wages will be garnished and your employer will know that you are in the middle of a bankrupcy.
As far as credit is concered a Ch. 13 affects you much longer than a Ch.7. A Ch.7 is over in a few months and you can start to rebuild your credit. A Ch.13 on the other hand, remains active until you have paid off all of the debts listed under the bankrupcy. Most payment plans for Ch.13s are a 5 year plan. A bankrupcy remains on your credit report for 10 years. Because of how long a Ch.13 remains active, the bankrupcy itself does not start “timing out” on your credit report until you have finished paying your creditors. This means it can appear on your credit for 15 years instead of just 10 (if you choose the 5 year option. If you choose the 3 year option it will be 13 years, etc) People can recover after a bankrupcy and have a decent FICO, but if you plan on applying for a mortgage or an installment loan during that period lenders will take the bankrupcy into account when deciding whether to loan to you and what sort of interest rate to give you.
A bankrupcy lawyer is NOT a credit professional and many times will not be able to accurately inform you as to how to repair your credit after a bankrupcy or what the repercussions may be. Normally I wouldn’t say this about an attorney, but bankrupcy attorneys are famous for not being able to answer their client’s questions about credit accurately. If you really are having problems, call a credit lawyer for a free consultation and explain your concerns.
Hope this helps.

A chapter 13 is a partial BK. It will stop the foreclosure if the house is included. Weigh out your options. A BK is a final desperate attempt. In some cases, its good. It will improve your credit but that will take quite some time. Call your lenders loss prevention center and inquire about a loan modification. You can read on this by looking up the Loan Modification Act of 2007. Try this before the BK. If you are using an attorney, ask them about it. The attorney, if a BK attorney, will naturally tell you that a BK is better because of the paycheck they will receive. If your attorney isn’t seasoned in real estate, call one that is. You can usually find one at a title office. More particularly, your title office.
Chapter 13’s, on a good, note will allow you to refinance at an earlier date than a chapter 7. In a chapter 13 the new lender will usually require that you are 24 months into filing the BK. in a chapter 7 the lender will require that you have been discharged for 24 months. More lenders will enter a 13 than a 7 if at all. Weigh all options. There are more out there but, as you can see, there is a lot of information to type. So, if you want or need more info go ahead and email me oswaldmortgage@yahoo.com. This is my personal email.
I hope this all made sense.