Chapter 13 Bankruptcy

[undisclosed]

I do a lot of cold calling and recently set an appointment with a couple who mentioned that they're in the middle of chapter 13 bankruptcy (after we had already scheduled a time for me to stop by). I may not have pushed for an appointment had they brought that up sooner, but since we'd already scheduled it I figured I might as well take the opportunity to meet some new people.

My knowledge of the various types of bankruptcy is limited, but it’s my understanding that their income will be pretty strictly regulated by a payment plan until the repayment period is over. If that’s the case, is there even anything that I may be able to do for these people at this point?

I figure that if they’re not going to have the funds to address any current needs or goals, my best approach would be to just get acquainted with them and share some ideas that could help them in the future. If nothing else, maybe they’ll share some referrals with me or think of me down the road when they regain control of their finances.

Is that pretty much the extent of what I can do at this point, or am I missing something?

 

[Franz Kafka]

What happens to your book when you cross out all the liabilities?

Bankruptcy is a great thing - it's the situation before the bankruptcy that is bad.

 

[undisclosed]

I see your point, but that more accurately describes chapter 7 bankruptcy, no?

Wouldn't chapter 13 be more along the lines of using your paychecks to lessen your liabilities for 3-5 years and THEN erasing any remaining balance?

 

[ActingBoss]

I see your point, but that more accurately describes chapter 7 bankruptcy, no?

Wouldn't chapter 13 be more along the lines of using your paychecks to lessen your liabilities for 3-5 years and THEN erasing any remaining balance?

13 involves partial repayment of non-secureds, full repayment (generally) of secureds.......so you are on base.

What I can tell you is, as a practical matter, this is a poor use of time.........they'll give you nothing but grief and if the trustee notices large outlays, he'll kick the plan and you and your customer will be worse off.

Just walk away.