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  • What Happens to Your Home in Chapter 13 Bankruptcy?

    What Happens to Your Home in Chapter 13 Bankruptcy?

    Individual debtors can opt for either Chapter 7 or Chapter 13 of bankruptcy. According to Dallas based bankruptcy law firm Recovery Law Group, Chapter 13 bankruptcy offers people to prevent foreclosure and also catch up on the arrearage through the repayment plan. If you wish to keep your home during and after bankruptcy, consult with expert bankruptcy lawyers at 888-297-6023 to discuss your case.

    Chapter 13 allows you to pay your debt entirely or some portion of it over a period of 3 to 5-years through a repayment plan. You can pay mortgage arrearage including interest while staying current on your mortgage payments to prevent foreclosure on the property. If your sole purpose of filing for bankruptcy is saving your home, there are other methods available. You can avoid foreclosure by negotiation with the lender and opting for “mortgage modification” programs of government.

    You can get rid of 2nd and 3rd mortgages through Chapter 13 bankruptcy California. In case the 1st mortgage is secured by the entire value of the home (due to reduced property rate), there no longer exists any equity for any subsequent mortgages. In such a case, these mortgages can be “stripped off” and recategorized as unsecured debts by the court. Under Chapter 13, debts are paid in this order: secured debts, priority debts and unsecured debts, with unsecured debts, sometimes not paid at all.

    Automatic stay

    Filing for bankruptcy puts a temporary halt on all collection actions including foreclosure and repossession. This takes place through the automatic stay provision. Once the repayment plan (with provision for paying off mortgage arrearage) is approved and confirmed by the court, the lender is bound by the agreement and cannot foreclose on the property. as long as you continue making regular payments towards the loans as per your bankruptcy plan, the automatic stay prevents any foreclosure action.

    In case, there is no provision to address mortgage arrears in your repayment plan, the lender can continue with foreclosure proceedings even after the court approval of your repayment plan. If you do not wish to keep your home as part of your bankruptcy, filing bankruptcy papers gives you some respite from foreclosure proceedings for several months. Moreover, bankruptcy judges provide debtors numerous chances to come up with a viable repayment plan. Since confirmation takes time, debtors get a long respite from foreclosure proceedings.

    An exception to automatic stay exists if you had previously filed for bankruptcy petition within the past 2 years during which the automatic stay was lifted on request of the creditor seeking foreclosure. In such a scenario, filing for Chapter 13 bankruptcy will not be able to stop foreclosure proceedings.

    Modifying mortgages

    Some secured debts can be modified in case the value of the property has reduced over time and is less than the amount owed by the debtor. In this case, cramdown option is available, which reduces the debt of the secured property to the market value and converts the remaining amount due to a nonpriority unsecured debt. However, there are certain limitations:

    • You cannot cramdown on your residence;
    • Cramdown is available for –
    – a mortgage in a multiunit building;
    – personal property loan other than your residence;
    – mobile home considered personal property;
    – the loan is secured by multiple collaterals (residence & business asset)

    Once the loan is crammed down, you need to pay off the entire amount through your Chapter 13 repayment plan. It can dramatically reduce your debts and make your repayment affordable, however, you should have the funds to pay the entire amount at the end of your plan.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Tips to Qualify For Chapter 13 Bankruptcy Code

      Tips to Qualify For Chapter 13 Bankruptcy Code

      There is a specific debt threshold for filing Chapter 13 apart from the regular income criteria. The debt of the filer has to be under the threshold in order to qualify for Chapter 13. Additionally, he/she has to possess sufficient income in order to sponsor his/her future payment plan. This is only possible if there is a considerable amount of disposable income, which is the net of income and some basic expenditures. To know more amazing stuff about bankruptcy and eligibility criterions, log on to Recovery Law Group now. If you just compared your debts with the Chapter 13 debt threshold, if the outcome was a non-qualification, you need not be disappointed as there are some strategies or tips to still qualify for Chapter 13.

      What is the debt threshold limit as of now?

      The recent data as per April 2019 caps secured debts as well as liens to $1,257,850. The unsecured debts have been capped up to $419,275. If your current secured and unsecured debts fall below the threshold, there are no concerns. In this case, you are eligible for Chapter 13, until and unless you hold a consistent source of income. However, if your debts exceed any one of the threshold caps, you may want to consider some smart tricks to try and qualify for Chapter 13 bankruptcy.

      Strategies for qualifying to Chapter 13

      • Reassessing total debts

      The first option to try for qualifying for Chapter 13 would be to verify if all the debts need to be matched up to the threshold or not. For instance, some debts like contingent debts which creates a liability only when a particular situation occurs, or a scenario are developed is not accounted for when verifying for the debt thresholds for eligibility. If you have included contingent debt in your total secured or unsecured debt, you can just exclude the same for determining eligibility.

      Similarly, the ‘unliquidated debts’ are also not usually included in the tally of secured or unsecured debts. Unliquidated debts are debts which cannot be realized to the exact dollar. This can be a lawsuit or an injury or an accident claim. Such debts can also be ignored when determining total secured/unsecured debts for qualification purposes. Another important point to note is that these debts still need to be disclosed while filing bankruptcy and the lender/beneficiary details shall be provided with other lenders or creditors.

      • Lien stripping

      A single type of debt can be categorized into secured and unsecured debt based on the value of lien or the fair market value of the asset attached. The whole process is termed as lien stripping. This is very useful if your secured debt portion is exceeding the threshold but there is a significant gap between the actual unsecured debts and the cap. This will increase your unsecured debts to reduce your secured debts if that is what you want to qualify.

      • Separate bankruptcy filings

      Married people need not opt for the same chapters when applying for bankruptcy. If one person qualifies for Chapter 13 and the two together don’t, one of the spouses can opt for Chapter 7 bankruptcy based on what turns out to be beneficial. This is especially extremely beneficial if one of the spouses has a larger amount of unsecured loans that could be released almost completely under Chapter 7 bankruptcy code. This procedure is not an easy one and can be extremely tricky. Getting hands-on with an experienced attorney is a must for such kind of strategies. It could be just a phone call away at 888-297-6203.

      • Bankruptcy court’s discretion

      Sometimes, the bankruptcy court can modify the thresholds of the debt limit. This is quite rare but can happen none the less. This is commonly seen when in case of a couple where both spouses individually qualify for Chapter 13, the court may allow the proceedings to go further a single case. An experienced attorney in your city may be Dallas, California, or Los Angeles should be able to guide you with some tips to get a discretionary benefit.

      How about considering Chapter 20 as an alternative?

      After evaluating all these potential fixes or tips, if you still aren’t able to qualify for Chapter 13 bankruptcy Dallas, Chapter 20 might not be a bad idea either. Chapter 20 is a combo of Chapter 7 and Chapter 13. Probably a total of 13 and 7 too. Firstly, you let go all your unsecured debts by filing for Chapter 7 and then repay the remaining debt after partial asset sale or liquidation in the Chapter 13 way. You can decide to keep the assets you want and liquidate the assets to set off some of the secured debts and also avail a partial discharge of the unsecured debts too. However, the remaining debts secured and unsecured will need to be paid in full over Chapter 13 payment plan for the next 3-5 years. Since you would have already availed a partial discharge or release of debt under Chapter 7, you would not be eligible to take one more through Chapter 13.

      This can certainly get tricky but with sorted and experienced attorney guidance can always make such complicated cases a lot easier. Do not forget to log on to the website or dial in to resolve your bankruptcy problems in the smoothest way possible.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • Save Your House with Chapter 13 Bankruptcy

        Save Your House with Chapter 13 Bankruptcy

        People worried about bankruptcy might find it difficult to believe that it can help you out of financial distress. Chapter 13 bankruptcy, say Dallas based bankruptcy law firm Recovery Law Group lawyers, offers you to catch up on mortgage payments, reduce some secured debts, pay a small amount of your unsecured debts while getting rid of the remaining through its repayment plan. Apart from this, you can also contest foreclosure proceedings, claims for costs for missed payments and get rid of liens on your home through bankruptcy! Contemplating filing for bankruptcy? Consult with expert bankruptcy lawyers at 888-297-6023 to know more about how you can benefit from bankruptcy.

        There are various benefits associated with bankruptcy. Here are a few ways you can improve your financial distress with Chapter 13:

        • Repay mortgage arrears

        Being behind on your mortgage payments has repercussions. However, so does the filing for bankruptcy. In case you are filing for bankruptcy with the sole purpose of catching up with mortgage payments, this can be done by negotiating a deal with the mortgage servicer, without harming your credit score. However, if you have previously defaulted, then bankruptcy might be the only way out. It might also be cheaper as you don’t have to pay various fees.

        Chapter 13 repayment plan works only if you can show that you have enough disposable income to not only clear your past dues but also current payments, apart from priority debts like taxes. Additionally, you need to provide your bankruptcy trustee gets nearly 10% of the amount payable to your creditors through the repayment plan.

        • Make mortgage affordable

        Many people with large unsecured debts often seek financial assistance through bankruptcy. Chapter 13 offers a chance to reduce your debts to affordable limits and get remaining unsecured debts discharged after a 3 to 5 years’ time. Your disposable income is used to pay a portion of your secure, priority and unsecured debts. In case you have disposable income below the state median you might have your unsecured debts discharged. Including mortgage along with unsecured debts, will allow you to catch up on both and with unsecured debts discharged at the end of the repayment plan, you might be able to afford the mortgage. Low-income bankruptcy filers can opt for a 3-year repayment plan, however, increasing your repayment plan from 3 years to 5 years will reduce the per month payments.

        • Get secured debts reduced

        Assets like motor vehicles depreciate with time, however, the loans don’t. Chapter 13 bankruptcy Dallas judges could reduce the secured debt to the market value of the car as well as the interest rate to the going rate in bankruptcy cases. This will provide you with more money for other secured loans and come up with a repayment plan with better chances of confirmation. The cram down is available only for assets like cars (bought 30 months prior to bankruptcy filing), personal property (computers, jewelry, furniture, etc.) bought at least 1 year before filing, any rental on vacation homes, loan on mobile homes (classified as personal property by your state) and on mortgages which can be paid off within five years.

        • Contest foreclosure

        Though automatic stay prevents any foreclosure activity when you file for bankruptcy, the lender can ask and get permission to have the stay lifted. However, you could contest foreclosure because of erroneous facts provided by the lender in bankruptcy court. A favorable verdict in your case may prevent foreclosure, even if you convert your chapter 3 bankruptcy into a chapter 7 one.

        • Turn subsequent mortgages into unsecured debts

        Many times, homeowners take out a 2nd and 3rd mortgages on their homes. Filing for bankruptcy means that you have fallen behind on payments, forcing foreclosure. In case your property is no longer worth the amount of mortgage owed, the second and third mortgages could be stripped off by bankruptcy court in case of Chapter 13 bankruptcy. This turns any subsequent mortgages into unsecured debts, which are treated in a similar fashion. You don’t need to catch up on past dues, your disposable income is used to pay off debts (secured, priority and unsecured) and any unsecured debt which remains is discharged.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • Responsibilities when filing bankruptcy under Chapter 13

          Responsibilities when filing bankruptcy under Chapter 13

          Chapter 13 filing forms are pretty similar to the forms used for Chapter 7. The information and objectives are the same in both cases. This procedure includes detail of income, assets or properties, expenses, and debts. Along with this information, you shall also provide for a plan that shall manage all the debts in the future 3-5 years. Along with these information pieces, you also need to enclose your latest federal and state tax returns. There has to be proof for income tax filing for the last 4 years. You also have to avail a certificate for credit counseling that has been issued from a United States Trustee approved organization. To know more about Chapter 7 bankruptcy or guidance about anything relating bankruptcy, log on to Recovery Law Group to clarify all your questions and doubts.

          The payments usually monthly are made to the bankruptcy trustee who later distributes the same as decided to the lenders. The bankruptcy trustee collects a commission for the tasks he/she performs. In order to initiate the release of debt under Chapter 13, you have to follow the payment plan for the specified period.

          What will I have to pay?

          The common question with respect to Chapter 13 is what type of debts will be paid and in what proportion. By addressing this question one can easily determine the net liability one may have to bear in the case of Chapter 13 bankruptcy.

          • Administrative fee

          This type of fee includes the filing fee, trustee commissions that could be 3% and as high as 10% on the monthly payment, and attorney fees. While attorney fee depends on whether you hire an attorney or not, even though it is highly recommended, filing fee and commissions have to be paid out without choice. These debts or fees have to be paid off in full.

          • Priority debts

          Similar to administrative fees, these debts are also essential and need to be paid in full meaning 100% without any rebate or discharge. This includes debt like alimony, child support, tax debts may be state or federal, money owed to employees, contributions pending for employee benefit fund, etc.

          • Secured Debts

          All sorts of secured debts home mortgage, auto loans, jewelry loans, etc., need to be paid off in full in order to retain the asset gauged as collateral. There can be a small possibility, where you could get a marginal rebate on paying off debt for secured assets.

          • Unsecured Debts

          These kinds of debts usually include credit card, utility bills, medical bills, membership of some clubs, payday loans, etc. These debts have high-interest rates and are not secured by any asset, lien or any other guarantee. The payout to these debts is the last priority. Depending on the disposable income and the amount of income available after allocating the same to the priority debts, the percentage of monthly payments under Chapter 13 could vary between 0 to 100%.

          Things to note

          There are different ways of calculating disposable income and practical tenure of repayment. To find the most beneficial and appropriate one that could be approved easily by the bankruptcy court without too much intervention, it is best advised to consult an experienced attorney. There are different ways of how an unsecured debt can be converted into a secured one. For instance, if you used a credit card for purchasing a luxury item recently, the credit card company might want to prove your intentions of fraud and might want to convert the debt related to fraud. This will turn the debt liability to 100% which could have been 0%.

          Similarly, there are secured credit cards, and various other lending traps, which many people discover only after filing bankruptcy. Seeking assistance is essential to making a well-informed decision. Dial in 888-297-6203 for best solutions.


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Paying off Chapter 13 Debts Earlier

            Paying off Chapter 13 Debts Earlier

            The financial situation sometimes can get better with time and it so can happen that you have been halfway through your Chapter 13 repayment plan duration only to realize that your financial situation is a lot better now. In such circumstances, it is very tempting to pay off all pending Chapter 13 payments in advance and get rid of the cycle. However, it is not one of the most beneficial attempts as you might end up owing more to the lenders as creditors are entitled to all or most of the disposable income. As the disposable income increases, you might have to pay off all debts in full to end the Chapter 13 payment plan earlier. The discharged debt or released debt might be reversed in such a scenario. To know more about Chapter 13 and its alternatives, log on to Recovery Law Group to get a greater insight on all bankruptcy-related topics.

            Disposable income needs to be channelized to lenders

            The whole concept of Chapter 13 is to channelize disposable income to the lenders over a specific period of months in order to repay as much debt as possible. This period is usually between 3-5 years. The disposable income might well be way higher than actual disposable income as some standard expenses cap is used to calculate disposable income rather than actuals. Since disposal income can change over the Chapter 13 repayment tenure, it will directly impact the payment installments. Since the expenses remain constant irrespective of the income, it is likely to see a direct proportionality between income and monthly payment.

            How is the tenure decided and what debts can be released?

            The tenure of the Chapter 13 payment plan is decided based on your income. There is a state median with respect to the income. Some states might also use Federal median. Your income has to be compared with the state median to determine the tenure of the Chapter 13 payment plan. If your income is below the median, the tenure is usually 3 years. If it is above it can last up to 5 years. The debts which can be released are largely unsecured debts. These include credit card, medical, utility bills as well as payday loans and other types of debts.

            What are the challenges of paying off debt earlier in Chapter 13?

            The common misunderstanding with respect to Chapter 13 payment’s plan is that the filer is only liable for the monthly payment for the specified tenure. However, depending on the debts and tenure, the filer is usually liable for the whole of his/her disposable income until he/she is in the Chapter 13 payment schedule. What this means is no debt shall be wiped out or released if you are planning to end the Chapter 13 payment plan earlier. You should ideally pay off the whole of your disposable income for the specified period until and unless you have settled all your debts in full.

            The procedure for paying off debt earlier is a formal one. All lenders need to be notified and court approval is needed for such an act. The general tendency of the lenders and the bankruptcy trustee is to object the paying off debt in advance. The basic suspicion is that it is the attempt of the filer to protect his/her higher income in the near future from being diverted to Chapter 13 payment’s plan. Most employees attempt this when they receive a bonus or variable pay which is usually a larger sum offered once in a year. However, the lenders shall argue to leverage that as an additional payment to overcome their debt and not a payment that should allow the filer to reduce the length of the Chapter 13 payment program.

            How about ending Chapter 13 due to a drop in income?

            Just how the increase in income adds extra leverage to the lenders, a decrease in income also holds them accountable to compromise. If there is a financial setback and your payment plan has already been designed to pay less than the total debts you are liable too, you might just end up getting all your remaining debts discharged. This happens only if there is a lot of hardship and there is a huge probability of the scenario not bettering in the near future or for the duration of the Chapter 13 payment plan. This process is referred to as ‘hardship discharge’. There are some terms and conditions to avail hardship discharge those can be listed as follows-

            • Your lenders have received as much as they would if you had filed for Chapter 7
            • The change in financial situation or setback is a natural event and does not involve mismanagement or intentional action or basically, there is no fault of the filer
            • The financial condition of the filer does not seem to have a bright future
            • A change in Chapter 13 payment arrangement is also not viable due to lower disposable income

            The above points need to be proven and evaluated by the court to make any judgment with respect to a hardship discharge. A student loan might still not be released though however, most of the other debts can be wiped off. For a deeper analysis of your situation and to help you out of it, contact the best attorneys in town at 888-297-6203.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

            • Is Keeping All Your Property in Chapter 13 Bankruptcy a Wise Decision?

              Is Keeping All Your Property in Chapter 13 Bankruptcy a Wise Decision?

              Filing for bankruptcy is a decision that people are reluctant to take because many times it involves letting go of your property. According to exemptions provided by state and federal government, lawyers of Dallas based bankruptcy law firm Recovery Law Group, explain that you can keep only the amount of property which is exempt. Any non-exempt property is sold to pay off your unsecured creditors in a Chapter 7 bankruptcy case. Contrary to this, Chapter 13 bankruptcy allows you to keep the non-exempt property if you pay your unsecured nonpriority creditors an amount equal to the non-exempt property along with the monthly payments as per repayment plan.

              However, keeping your non-exempt property might be costlier than you think. In case all property you own is exempt, you are a lucky person; as, for all non-exempt property you wish to keep, you need to pay for it. To know more about bankruptcy exemptions, you can call 888-297-6023 and talk with expert bankruptcy lawyers. Many states allow debtors to choose from federal and state bankruptcy exemptions. You can keep the exempt property no matter which bankruptcy chapter you file under, however, the fate of non-exempt property depends on the chapter of bankruptcy you have filed. In the case of Chapter 7, your non-exempt property is liquidated, and the proceeds are used to pay your unsecured debts. In the case of Chapter 13 bankruptcy, you pay your unsecured creditors through your repayment plan an amount equivalent to any non-exempt property you wish to keep.

              Why you should avoid keeping all your non-exempt property?

              Chapter 13 bankruptcy involves a repayment plan wherein the debtor is expected to come up with a plan to pay the unsecured creditors (medical bills, credit card bills, etc.) a part of the debts over a course of 3 to 5-years time. This is done using the disposable income of the debtor. Disposable income is calculated by considering the monthly income and expenditure of the debtor and the amount expected to be paid for secured and priority debts like certain taxes. The non-exempt property also plays an important role in this. If an individual debtor wishes to keep any or all their non-exempt property, they need to pay the unsecured creditors the higher amount of either their disposable income or a value equal to the non-exempt assets. In case you wish to keep all your non-exempt assets and do not have enough disposable income, your repayment plan might get rejected by the bankruptcy court.

              Since mortgage arrears, car loans and priority debts need to be paid off in full, keeping many non-exempt properties might increase your debt problems. In case you wish to keep your house or car, you cannot afford to miss any payments on those dues. Missed payments can lead the creditors to ask the court for a lift on automatic stay and thus they can resume foreclosure or repossession actions. Chapter 13 also allows you to catch up on secured debt payments. You can use the 3 to 5-years repayment plan to pay prearrange as well as regular monthly payments on secured and priority debts. Keeping non-exempt property which you do not need will add up to your expenses, therefore it is important to weigh your options clearly before taking any decision.


                *Are you more than 60 days past due on your mortgage?

                *Do you own a home?

                Are you currently working?

                By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

              • Is it Possible for a Legal Citizen (noncitizen) to file for a Bankruptcy?

                Is it Possible for a Legal Citizen (noncitizen) to file for a Bankruptcy?

                It is possible for a legal citizen (not a US Citizen) to file for bankruptcy, but you must check with your attorney before doing so, to ensure that it is not affecting your citizenship application in any way. To find out in details regarding how to file, contact Bankruptcy attorney at 888-297-6203 or Recovery Law Group.

                Legal Residents are Eligible to File for bankruptcy

                If you are a Legal Resident (noncitizen) and reside in the United States or have a domicile or a business in the United States, then you can file for bankruptcy as any other citizen can. To sum it up, if you are a legal resident with a residence or business in the US, then you are eligible to file for bankruptcy.

                Precautions/Conditions to take care of before filing for bankruptcy

                It is important to note that if you have applied for a Green card or US Citizenship, then filing for bankruptcy can have a negative impact on your submitted application. Nonetheless, immigration attorneys are the best guide in this scenario, as each case of immigration varies and is dependant on your acts, past history, and individual circumstance. Hence it would be best to contact a reputed and experienced attorney before you make the decision to file for bankruptcy (after applying for a US citizenship).


                  *Are you more than 60 days past due on your mortgage?

                  *Do you own a home?

                  Are you currently working?

                  By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                • Impact of Chapter 13 on your credit score

                  Impact of Chapter 13 on your credit score

                  The credit score takes a solid beating when bankruptcy is filed in general. But the common question is to know which Chapter impacts the credit scores the most. The impact may also last for several years when bankruptcy is filed. Filing for bankruptcy under Chapter 13 is slightly more beneficial and lighter on your credit score, especially when compared to Chapter 7. If it is possible not to file for bankruptcy, that shall be the best option. To know if you need to file for bankruptcy or not, log on to Recovery Law Group to get a host of information and make the right decision

                  What is the choice of a lender?

                  The credit score impact is determined by the lender’s inclination towards the debtor choice. Most lenders have a slight inclination towards Chapter 13 filers. Unsecured debtors are likely to receive more portion of their debts when Chapter 13 is filed, hence, they always like Chapter 13 filers. This is quite reverse during the Chapter 7 bankruptcy. Unsecured creditors might end up receiving nothing out of the Chapter 7 bankruptcy and all their debt has to be written off. Also, the exemptions available under Chapter 7 are beneficial. A Chapter 7 bankruptcy can very less nonexempt assets for liquidation and recovery. Overall, the debt released or discharged is larger in Chapter 7. This is the primary reason why lenders do not seem to prefer Chapter 7 history debtors.

                  On the other hand, with Chapter 13 3-5 years, there is an attempt by the debtor to pay off the maximum chunk of secured as well as unsecured debts. Until unless the claims are valid and well supported with a proof, the debtor ends up paying off a good chunk of debts. This makes it favorable for a lender and hence, Chapter 13 is the lender’s choice.

                  Credit score impact

                  Filing of bankruptcy is usually the last choice. If you are considering filing bankruptcy, you must have been struggling with delayed or missed payments from some time now. This has already impacted your credit score significantly negatively. Filing of bankruptcy will only prevent further damage to this already impacted credit score. But, if your credit score is high and you choose to file bankruptcy, the impact will be huge too. There can be a drop of about 100 points depending on circumstances on an average once you file for bankruptcy.

                  The formula used to calculate or estimate credit score is very different. Different agencies use different formulae and are reluctant in disclosing the same. Filing bankruptcy via Chapter 13 or Chapter 7 has an almost equal negative impact on the credit score. But, as realized earlier, Chapter 13 filers might have some edge for future, if they are to avail any sort of credit in future after filing bankruptcy previously.

                  Availing credit after filing bankruptcy

                  The Chapter 13 payment plan lasts for about 3-5 years. During this period, the filer is prohibited from taking any additional credit. This is one of the biggest flaws of Chapter 13 as during an illness, or major breakdown or any other such circumstances, you just cannot avail any sort of credit during that period. The bankruptcy court understands certain situations wherein additional credit can be necessary, for this to be allowed, your attorney might have to pass a motion in the court, which shall allow you to workout with some creditors that facilitate credit to even people in Chapter 13 bankruptcy payment plan.

                  Availing credit after bankruptcy will cost big. High-interest rates and a lot of paperwork is common if you try to avail credit after bankruptcy. It is key to enter a stabilized financial situation and then take credit only if necessary. Once, you start availing credit and paying it off in right times, the credit score as well as interest seems to improve with time. There is not much difference in this improvement between a Chapter 7 or Chapter 13 bankruptcy filer California. However, in crunch time, Chapter 13 filers are bound to get a slight advantage over Chapter 7 filers.

                  Credit score reporting corrections

                  It is a good practice to verify the credit reports. After filing bankruptcy some of the debts might still be listed as ‘unpaid’, which can negatively influence the credit eligibility in the future. Also, the debt released should be appropriately reported as ‘included in bankruptcy’ and not ‘dismissal’. For understanding your credit report or to know more about bankruptcy or the Chapters, call 888-297-6203 now and address all your questions from in-house experts.


                    *Are you more than 60 days past due on your mortgage?

                    *Do you own a home?

                    Are you currently working?

                    By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                  • How to Protect Your Home during Bankruptcy?

                    How to Protect Your Home during Bankruptcy?

                    Most people take mortgages when they purchase their house. With time the property value might appreciate or depreciate. Being unable to make mortgage payments might send you in debt. When you file for bankruptcy, you have options to save your home. However, an accurate assessment of what your home is worth is essential. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group , when you file for bankruptcy, some equity of homestead exemption is available to protect your home. Individuals can opt for federal or state exemptions (if the choice is available in their state). The exemptions vary from state to state. Contact expert bankruptcy lawyers at 888-297-6023 to find out how much homestead exemption is available in your state and how you can protect your home during bankruptcy.

                    What is your home worth?

                    It is important to know the accurate value of your home in order to protect it. This is important because you can protect up to a fixed amount of equity in the home when you file for bankruptcy. To calculate the equity in your home, you need to have your property evaluated, and deduct mortgage balance from the amount. If this amount is less than the homestead protection available, then you can protect your home during bankruptcy.

                    In case of Chapter 7 bankruptcy, in case the equity exceeds the exemption limit, the trustee can sell your house to pay the mortgage, give you your exempt equity and distribute the remaining amount amongst your unsecured creditors. If you have filed for Chapter 13 bankruptcy, you might be able to keep your house, but you need to pay an amount equal to the non-exempt equity to your creditors through a 3 to 5-years repayment plan. This can be difficult for people with a huge amount of non-exempt equity but not substantial income for monthly payments through a repayment plan.

                    How to calculate the current value of your property?

                    There are different methods available to know the “current value” of your home. Your valuation is not the only factor to determine the value of your home as the bankruptcy trustee also determines the same. in case of any discrepancy, the bankruptcy judge makes the final call. The various methods employed to find the fair market value include:

                    • Real estate websites

                    This is a preliminary way to determine the value of your home. It is generally used when the mortgage amount is high, and homestead exemption might be enough to protect the property. Websites like Trulia.com and Realtor.com can provide you a rough estimate of what your property is worth, for an accurate evaluation you can go for a full appraisal.

                    • Full house appraisal

                    Get the most accurate value for your home through this method. Refinancing the home or modifying the loan can give you the latest appraisal, or you can hire a licensed real estate appraiser to inspect your property. Based on certain factors, the appraiser sets a value to the property and explains the valuation in his report. This routine procedure is followed in most bankruptcy cases, especially if you are planning to have second mortgages stripped in case of Chapter 13 bankruptcy.

                    • Comparable market analysis

                    Relatively less expensive than a full appraisal, in this option, a licensed realtor compares your house with similar houses sold in your area. The market analysis uses data from the sale of the home which were in the same locality, were similar in size, condition and structure to yours to get an estimate of your home’s worth.

                    However, you should steer clear of some valuation methods as they are considered unreliable for bankruptcy purposes. These include:

                    • Quick sale value

                    Many people need to sell off their property on short notice. This often results in a lower value and thus cannot give an accurate estimate of the actual worth of the property. This method, therefore, cannot be used during bankruptcy. Additionally, it might make you think you can protect your home through the homestead exemption.

                    • Property tax appraiser value

                    Getting your property evaluated for real estate tax purpose by a property tax appraiser might not work in bankruptcy proceedings since they are not an accurate representation of the actual market value of the property.


                      *Are you more than 60 days past due on your mortgage?

                      *Do you own a home?

                      Are you currently working?

                      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                    • How to Determine Chapter 13 Bankruptcy Eligibility?

                      How to Determine Chapter 13 Bankruptcy Eligibility?

                      Chapter 13 can be a very good option for many people, especially those who are struggling to keep up their assets intact even after filing bankruptcy. However, not all filers are eligible to apply for Chapter 13 bankruptcy code. There some basic requirements to be eligible for filing under Chapter 13. These can be listed as follows-

                      • No lag with respect to income tax filing whether federal or state
                      • The debt is within the predefined threshold
                      • Should be employed or should have some income source to fund the payment plan to be determined under Chapter 13
                      • Should be an individual and not a business. The sole proprietor is an exception as all business accounts are merged into the individual’s account for bankruptcy purposes

                      What has the income tax filing got to do with my eligibility?

                      The income tax filing is a very basic requirement as people evading state and federal tax liability are not regarded with great respect in the eyes of law. The income tax filing for state and federal has to be current. Also, there should be a clean history with respect tax filing for the last 4 years from the date of filing for bankruptcy. If you are not current with respect to the last 4 years, you can get current as soon as possible and present the same to the court in order to prevent your case from being dismissed. To know more about getting current and getting eligible for Chapter 13, log on to Recovery Law Group .

                      What does “Source to fund the Chapter 13 payment plan” mean and include?

                      Chapter 13 is a fixed payment every month for a specific time period up to 5 years to repay as much of debt possible. This fixed monthly payment needs to be sourced appropriately and has to be some income, which over and above, basic expenses. The additional income or disposable income can be sourced from multiple avenues as listed below-

                      • Salary or wages may be regular and/or seasonal
                      • Self-employment income
                      • Commissions / Incentives that are related to job/employment a more permanent or consistent in nature
                      • Social security and pension
                      • Disability/worker’s compensation benefits
                      • Welfare / Unemployment benefits
                      • Any child support or alimony received
                      • Rents and Royalties
                      • Proceeds from the sale of assets like real estate, particularly if your nature of business involves sale and purchase of assets
                      • The income of spouse, if married

                      The basic requirement for the income source to qualify is that it should be consistent and over and beyond the basic necessities. There should be some disposable income that could be diverted to Chapter 13 payment’s plan.

                      Benefits, flaws, and restrictions for Chapter 13

                      Benefits are very clear, if you are not eligible for Chapter 7 bankruptcy or if you wish to safeguard all or most of your assets, this is the best alternative available. Also, the credit score improvement can be slightly easier with respect to Chapter 13. The major flaw is with respect to the debt threshold. If your debt is beyond that threshold you won’t be eligible for Chapter 13. Also, with businesses not able to consider this Chapter, it holds no good even for stockbrokers and commodity traders. Stock and commodity traders are restricted from using Chapter 13 even if they want to release their personal debts.

                      Procedure for filing Chapter 13

                      The basic requisite as a procedure for Chapter 13 is to disclose all information, with respect to your current financial condition, in the most accurate form possible. Expenses, income, lenders, assets, recent transactions, etc., all have to make a detailed appearance in the bankruptcy documents. You need to take a counseling course that will teach you to manage finances better and pay a filing fee along with the documents package to begin the bankruptcy filing under Chapter 13. Under most circumstances, you get 2 weeks or 14 days to submit for a repayment plan unless and until the timeline is revised by the court. Documentation and procedure always require consultation and expert advice. When you have all that with just a phone call, why wait and waste time then. Dial in +1 888-297-6203 now.


                        *Are you more than 60 days past due on your mortgage?

                        *Do you own a home?

                        Are you currently working?

                        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.