Is Chapter 13 a Career Killer? - Posted by DownOnHisLuck-IL

Posted by JohnBoy on September 16, 2004 at 11:29:30:

Chapter 13 is debt reorganization, which basically means you will still need to pay the debt off over a 3 - 5 year period. For $30k of debt it isn’t worth filing a BK over. $30k isn’t squat! Now if you were talking about at least $300k or $3,000,000 in debt, then that would be another story. But filing BK over $30k is just silly!

Go find about 6 houses you can buy and flip to other investors for an avarage profit of $5k each and pay off your debt. That would be easier and smarter than filing BK over that small amount of money.

For now, forget about getting loans to buy real estate. You don’t need no stinking loans to buy real estate. Read all the info on this site and educate yourself on how to buy real estate without getting bank loans, without using your credit, and without having to use any of your own money. You don’t need any of that to buy real estate with.

There are plenty of sellers out there that will gladly deed their homes to you in exchange for you agreeing to just take over their existing loans! Use THEIR loans they already have on the property to buy real estate. The key is to buy real estate from MOTIVATED SELLERS! They will hand you the keys and just walk away and let you just take over their payments on their loans. No banks, no credit, and no money of your own is needed to do that!

Trust me. This can be done. I’ve done it lots of times. I’ve bought houses, land, and businesses. I never got any loans to buy these with. I never had to use my credit to buy any of it. I used the sellers credit and money. And my buyers credit and money. But never my own!

Is Chapter 13 a Career Killer? - Posted by DownOnHisLuck-IL

Posted by DownOnHisLuck-IL on September 15, 2004 at 16:53:19:

I’m just trying to figure out… I’ve been getting advice from many different angles, and from many different people and gotten really conflicting information from different people.

I’ve had a loan officer tell me that after a Chapter 13 it be about 2 years before you can go back to getting a normal Mortgage loan on Real Estate, and I’ve heard others say that if you start re-establishing your credit immediately after filing, that you can get a decent loan in as little as 6 months.

I’m just trying to sort out fact from fiction, and figure out if Chapter 13 is really a career killer for an RE-Investor. What experience have you folks had with Chapter 13 Bankruptcys and what advice would you give?

As far as my situation goes, I’ve got around 30K worth of debt in Credit Cards, Hospital Bills, and things of the like. I can’t get any loans as it is to buy investment property or even my own residence, so I would think this might be the best way to go. Wipe out my debt, and give me a chance to rebuild my credit.

However, I hear some people say Chapter 13 is ‘no big deal’ and others say it will haunt you for years afterword.

For a Real Estate Investor, what can I expect from Chapter 13 Bankruptcy? What caveats might you have for me, what would make it ‘worth it’ to go ahead with the Bankruptcy?