Chapter 7 & 13??

What is the name of your state? Arizona
I am trying to determine whether to file chapter 7 or 13. Due to medical expenses we are needing to file and I planned to do chapter 7, but we are behind on our auto loans and our home. Our mortage company will and has set up a repayment plan, but if we sign papers for this plan, we cannot use bankruptcy protection - it is outlined in the plan. We have lots of medical bills to discharge, but if we use chapter 13, do these and credit card bills discharge?
Thanks for your hlep.

[Ladynred]

If you file Ch 13, all SECURED debts are paid 100% over the life of the Plan. Unsecured debts, like medical bills and credit cards, are paid some percentage based on the amount of disposable income you have to put into the plan.

I read somewhere that you can file both chapter 7 and chapter 13 - chapter 7 to get rid of unsecured debts, and chapter 13 for keeping property - house and cars. Is this correct?

[Ladynred]

You can't do that. Its one or the other. If you file Ch 7, you could reaffirm the house and cars if you're current or can get them current, and you keep them. Unsecured debts are wiped out.

Ch 13 you get to keep it all, but you must pay back the Secured creditors, they get priority and the bulk of the money goes to them first. The unsecured debts usually get a pretty small percentage of what's owed AFTER the secured creditors are paid off.

THanks for the answers. Another question. Are payroll loans dischargable? In my effort to keep things together I took out some payroll loans which are not repaid. I would like to get rid of them altogether. Can I do so?

[Ladynred]

Payroll loans from your employer ? Or are you talking about PayDay loans.. those little scam shops ??

The scam shops that charge usury - borrow $300 and pay back $90 dollars in addition to the $300 for each time you renew. That kind of thing. I got caught up in it.

I also did some payroll advances which are the same basic principle. They won't let you pay back in payments or anything, and are really hard to work with. My husband warned me, but I didn't really know what else to do.

[Ladynred]

The PayDay loan scams ARE dischargable. I don't know about the payroll advances, though they may be. The question there is do you really want to stiff your employer ?

IMO - the PayDay loan places should be outlawed - they already are in some states.