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Category: Chapter 13 Bankruptcy

  • Homosexual Spouses Allowed A Joint Petition

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    A homosexual couple got permission for filing a joint petition in a Chapter 13 bankruptcy case despite the argument of the Trustee that their marriage is illegal under the Defense against Marriage Act (DOMA), as only the couples who are legally married can file joint petitions in bankruptcy.

    But on June 13, 2011, a bankruptcy court in California denied the dismissal of a joint Chapter 13 bankruptcy case for homosexual couple debtors. Under 11 U.S.C. 302(a), gay spouse debtors are permitted to file a single petition.

    The court’s statement was: “In this court’s judgment, no legally married couple should be entitled to fewer bankruptcy rights than any other legally married couple.”

    In re Balas, the decision was signed by 20 judges instead of just one judge and left no doubt about the possibility of a joint petition filing by homosexual couples (married under California law) in the Central District of California.

    In case the homosexual marriage is legal in your state and you want to enter into a joint petition filing, contact the Recovery Law Group and hire the best bankruptcy attorney of Los Angeles & Dallas, TX, for expert help. Visit www.staging.recoverylawgroup.com or call on 888-297-6203.


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    • Difference Between Chapter 7 and Chapter 13

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      People who can no longer pay their debts are offered help in the form of bankruptcy. They can either settle their debts by liquidating their assets or repaying the creditors through a repayment plan. The former takes place in Chapter 7 bankruptcy cases, while the latter occurs in chapter 13. Dallas based bankruptcy law firm Recovery Law Group says, the chapter of bankruptcy you file under depends on your income, assets, debts and your ultimate financial goal.

      Chapter 7 bankruptcy

      • This is one of the most common chapters of bankruptcy file in the US. Individuals, married couples as well as companies can file for bankruptcy under Chapter 7. This chapter can help erase all unsecured debts like credit card bills, medical bills, and personal loans.
      • In order to qualify for this chapter, your disposable income should be very less or none. People who earn a lot of money have the option of filing for Chapter 13 bankruptcy.
      • Only those people whose family income is less than the state median for a household of the same number of family members can file for this chapter. If your income is just above the state median, you need to pass the means test to qualify for this bankruptcy chapter.
      • Bankruptcy trustee takes charge of the proceedings. They are responsible for selling the non-exempt property and distribute the proceedings among creditors.
      • Exemptions are provided to protect the debtor’s assets. These exemptions include homestead exemption (for residential property up to specified dollar amount), personal property exemption (art, jewelry, furniture, electronics, etc.), educational savings, retirement funds, health aids, medical savings accounts, etc.

      Chapter 13 bankruptcy

      • Debtors with a steady source of income can opt for this bankruptcy chapter. Their disposable income (income remaining after deducting all essential expenses) is used to create a repayment plan through which the creditors are paid over a period of 3-5 years.
      • People who wish to keep all their assets (even non-exempt property) should opt for this bankruptcy chapter to avoid liquidation of assets.
      • People who are behind mortgage payments and wish to avoid foreclosure can catch up on their past arrearage through this bankruptcy chapter. Though automatic stay puts foreclosure for hold in chapter 7 also, it can be for 120 days only.

      You need to propose a repayment plan in the case of chapter 13. For this, you need the assistance of experienced bankruptcy lawyers. You can call 888-297-6023 to speak with attorneys regarding this.


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

        *Do you own a home?

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        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.

      • Inability to Follow the Chapter 13 Monthly Payment Plan

        Inability to Follow the Chapter 13 Monthly Payment Plan

        It is very difficult to decide whether to file for a Chapter 13 bankruptcy or not. The main reason it is a difficult decision to make is that it might come with a lot of limitations.

        In Chapter 13 bankruptcy, your lawyer and your bankruptcy trustee (appointed by your court) make a feasible repayment plan, in which you are supposed to make monthly payments to the trustee for 3 to 5 years. At first, it might sound convenient for you, but later, you come to know more.

        Your household size, household income, and debts decide your Chapter 13 plan. Your payments and all your disposable income must also be equal till the time you have not paid back your complete debt. This means that the money left after paying all the allowed necessary monthly expenses (decided by the average household expenses of the household of the same size in your area) should be handed over to your bankruptcy trustee every month.

        All this might make you hesitate and raise a lot of questions in your mind. I will have to give away all of my disposable income! What all will be deemed as necessary and allowed expenses? What will I do with sudden unexpected expenses? What if I or my spouse has to be suddenly hospitalized? The car needs a new engine or will soon need new tires, etc. Many such questions start troubling your mind. Since all of your disposable income will be turned over to your bankruptcy trustee every month, you might fall behind on your Chapter 13 payment plan in case an unexpected emergency expense arises.

        However, it is not necessary that unexpected expenses will make you fall behind on your Chapter 13 payment plan. Normally, you will be given a specific period of time to catch up with your payments because:

        1. Falling behind on monthly payments might make your trustee file a Motion for the dismissal of your Chapter 13 bankruptcy because of lack of payments.
        2. In most of the cases, the Judge might refuse the filing of this motion and ask you to catch up with your payments in a specific time period.
        3. The Judge might dismiss the Chapter 13 bankruptcy, if you are unable to catch up with your payments within the set time period.
        4. In case of dismissal of your Chapter 13 bankruptcy, you will have the option of filing a Motion to Vacate the dismissal within 14 days from the date of dismissal.
        5. A hearing will then be set for the Motion to Vacate.
        6. You might then be granted another 60 days to catch up with your Chapter 13 payment plan, at the hearing.

        In brief, Chapter 13 bankruptcy does put some limitations on your unexpected expenses and monthly incomes, but it can still be successful and you can walk away debt-free at the end. You can contact the Recovery Law Group or 888-297-6203, to consult more about a Chapter 13 bankruptcy filing.


          *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.

        • Can Student Loans be Discharged in Chapter 13 Bankruptcy?

          Can Student Loans be Discharged in Chapter 13 Bankruptcy?

          Unlike chapter 7 which is a liquidation bankruptcy, chapter 13 involves the reorganization of debts. Student loans are priority debts that cannot be discharged during any bankruptcy chapter unless you can prove hardship. In the case of chapter 13, you can include them with the court’s permission in your repayment plan. Surprisingly, say Dallas based bankruptcy law firm Recovery Law Group many people are unaware that student loans cannot be modified, hence they do not include them. However, these debts can be reduced as well as modified during bankruptcy.

          Chapter 13 bankruptcy involves a repayment plan which can include both federal and private loans. Over a period of 3-5 years, you can repay your debts using your disposable income. Any unsecured debts which remain are discharged at the end of the bankruptcy. This is the best option for people who earn more as a result of which cannot qualify for chapter 7 bankruptcy. Since every case is unique, depending on your student loan and your case details, the loan could be included, modified or partially discharged by the court. A bankruptcy attorney can help you either reduce the student loan or modify the same. If you need an experienced bankruptcy attorney you can call 888-297-6023.

          Important factors which can help in case of student loan debt discharge or modification

          • Good faith

          Efforts made by the debtor to negotiate with the loan servicer in good faith make an impression on the bankruptcy judge. With good communication, you can negotiate flexible payment plans with private lenders too. Good communication skills are important for this. You need to report any change in circumstances as well as update paperwork on time to show your commitment towards repaying your debt. Additionally, if the loan servicer has been violating any debt collection laws, you can report it too.

          • Standing issues

          The loan servicer needs to demonstrate the burden of proof to secure the judgment. This point has been successfully used by many bankruptcy attorneys to ask lenders to prove that they own the debt which they are trying to collect from the debtor. If they lack proper documentation for the proof, the loan cannot be enforced.

          • Unfair terms

          The student loan has predatory terms that can be challenged by expert bankruptcy lawyers. To make the terms fairer for the borrower, the court might adjust the terms.

          Bankruptcy Code

          The Bankruptcy Code 11 U.S.C. § 523 (a) (8) is loosely interpreted by federal courts. Most debts do not qualify as student loans and therefore can be exempted from discharge. These include transportation, prep course, computer, internet and living costs during schooling. Bankruptcy code is being amended by the congress to address the student loan debt crisis.


            *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.

          • What are the Filing Requirements in a Chapter 13 Bankruptcy?

            What are the Filing Requirements in a Chapter 13 Bankruptcy?

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            Any individual, sole proprietor, a self-employed or an unincorporated business owner can file for chapter 13 bankruptcy if they are struggling to pay off a huge amount of debt. Unfortunately, corporations and partnerships do not have the luxury to opt for this option. Unlike chapter 7, chapter 13 has debt limits for qualifying under this bankruptcy chapter. This limit is tied to consumer price index say Los Angeles based bankruptcy law firm Recovery Law Group lawyers. Currently, individuals having an unsecured debt of up to $360,475 and secured debt up to $1,081,400 are eligible to file for chapter 13 bankruptcy. Other important requirements which can affect your chapter 13 eligibility include:

            • If within the past 180 days their bankruptcy petition was dismissed due to the inability to appear or comply or if the debtor themselves had voluntarily dismissed the bankruptcy petition.
            • Mandatory credit counseling must have been done from an approved agency at least 180 days prior to a bankruptcy filing.

            Individual debtors who have regular income can choose to get rid of their debts through chapter 13 bankruptcy by reorganizing their debts and repaying the creditors over a period of 3-5 years. In this case, the debtor makes monthly payments (depending on their disposable income) to the bankruptcy trustee who then disburses them to creditors as per the court-approved repayment plan.

            Key requirements of filing for chapter 13 bankruptcy

            In the case of chapter 13 bankruptcy, the debtor after filing a bankruptcy petition in the court, also need to file the following documents:

            • Current income and expenses
            • Any assets and liabilities
            • Financial records for a specified period
            • Credit counseling proof and copy of repayment plan created during its course
            • Any executory contracts and unexpired leases
            • Monthly net income and any increase in income or expenses anticipated by the filer
            • Any proof of payments received from employer 60 days prior to a bankruptcy filing
            • A written record of debtor’s interest in qualified education or tuition accounts

            The repayment plan developed in credit counseling is submitted to the bankruptcy trustee and then to the court for approval. The debtor is expected to make plan payments to bankruptcy trustee within 30 days of the bankruptcy filing, irrespective of court approval.

            Why choose chapter 13 bankruptcy?

            You can protect even your non-exempt property unlike chapter 7 where the non-exempt property is liquidated. You can prevent foreclosure proceedings as chapter 13 allows you to catch up on past payments through the repayment plan. If a bankruptcy filer fails to qualify for chapter 7, they can convert it to a chapter 13 bankruptcy to get rid of their debts. Additionally, unlike chapter 7 bankruptcy which remains on credit report for 10 years, a chapter 13 bankruptcy is mentioned on your credit report for just 7 years. You can know more about chapter 13 bankruptcy by speaking with experienced bankruptcy lawyers at 888-297-6023.


              *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.

            • Can Chapter 13 Bankruptcy Affect Your Tax Returns?

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              Despite bankruptcy getting rid of the majority of your debts, you are still required to file a federal tax return with IRS. With chapter 13 bankruptcy, individuals and small business owners can repay their creditors through a repayment plan. However, before filing for bankruptcy, all tax returns for the past 4 years must have been filed before the 341 meetings. Additionally, all current and applicable local, state and federal taxes due either during or after bankruptcy should also be filed. If you fail to pay current taxes or file tax returns, Dallas based bankruptcy law firm Recovery Law Group say, your bankruptcy case will be dismissed.

              Any debts canceled as a result of bankruptcy should not be included while filing tax returns. Any loss of property as a result of canceled debt should be included in tax returns. Since trust accounts are not taxable any interest in them should not be included while filing your taxes. You might receive tax refunds during the bankruptcy process; however, they can be used to pay your tax debts. On completion of your chapter 13 bankruptcy repayment plan, some federal tax debt might be discharged. Experienced bankruptcy lawyers can help you with differentiating which debts can be discharged. You can consult with bankruptcy attorneys at 888-297-6023 to discuss your case.

              Moreover, income from social security, any repartitions for war crimes or terrorist acts are not included as monthly income. Your monthly income, so calculated, is then compared with state median income for a household of similar size. In case the monthly income is higher, means test is used to check whether you can pay debts after allowable deductions.


                *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.

              • Chapter 13 Bankruptcy: Pros and Cons

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                People who are struggling with huge amounts of debts often choose bankruptcy to get rid of them. Chapter 7 bankruptcy is preferred as most of the times you get away without losing any property and all your debts are discharged. However, those who fail to qualify for chapter 7 file for chapter 13 bankruptcy. in this chapter, Dallas based bankruptcy law firm Recovery Law Group lawyers say, debt reorganization takes place and you pay your creditors through a repayment plan. There are pros and cons associated with this chapter of bankruptcy.

                Benefits of Chapter 13

                • Bankruptcy is removed from the credit report after 7 years, unlike chapter 7 where it stays for 10 years.
                • You can protect even non-exempt property in this bankruptcy chapter.
                • Unlike chapter 7, there is no means test parameter for eligibility.
                • The repayment plan is for 3-5 years duration. Since you pay the debts over a large period of time, you can reduce the payments considerably.
                • Since you had made payments to your creditors, lenders favor people who had filed for chapter 13 bankruptcy compared to chapter 7 bankruptcy.
                • Compared to chapter 7 filers, re-establishing credit is easier for chapter 13 bankruptcy filers (12-36 months).

                An experienced bankruptcy lawyer can help determine whether the benefits are enough to opt for this chapter. You can seek consultation by calling 888-297-6023.

                Shortcomings of Chapter 13

                • The negative impact of chapter 13 bankruptcy will impact your credit report for seven years.
                • While chapter 7 bankruptcy gets a discharge within 3-6 months, chapter 13 takes 3-5 years to get a discharge.
                • All of your disposable income is used to pay your creditors through a repayment plan. This will leave no scope for vacation or recreation for as long as the repayment plan continues.
                • Income tax for the previous four years needs to be filed in this case.
                • Future employment chances might be affected due to bankruptcy as often credit checks are conducted by employers.

                After discussing the pros and cons of Chapter 13 with experienced bankruptcy attorneys, you can decide the best course of action to get rid of your debts.


                  *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.

                • Can an Increase in Mortgage Payments Cause a Reduction in Chapter 13 Bankruptcy Payments?

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                  Suppose, you have a five-year repayment plan under Chapter 13 bankruptcy which you’re unable to keep up to due to lack of money. In order to make up for the shortage, you’ve not been paying your property taxes. Your mortgage company agrees to make changes to your loan, but that will shot up your house payment. Do you think your bankruptcy trustee will decrease your Chapter 13 monthly plan payment by the amount equal to the increase in your mortgage payment? The answer is no, unless under exceptional circumstances.

                  When you apply for Chapter 13 bankruptcy, the trustee makes your monthly budget of normal living expenses. This budget includes all the necessary expenses which you are bound to make every month. The bankruptcy trustee deducts this budget from your monthly income, and your bankruptcy monthly payment is then decided based on the leftover amount of money.

                  All the property taxes are originally included in the budget for normal monthly living expenses. In such a case, you cannot request for a reduction in Chapter 13 bankruptcy payments. Reduction in monthly payments of Chapter 13 bankruptcy is possible only if you prove some necessary expense like supporting a family member, which was not originally included in your normal monthly budget. Otherwise, the trustee will tell the court that you’ve spent your tax money for matters, which it was not intended for, and so the lender doesn’t deserve to be penalized.

                  Thus, it’s better to avoid approaching a fiscal cliff by consulting competent attorneys like https://www.staging.recoverylawgroup.com/. You can also contact them on 888-297-6203 and get more information on ways to get a reduction in Chapter 13 bankruptcy monthly plan payments.


                    *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 Sensible to File for Chapter 13 Bankruptcy to Save Oneself from an Eviction?

                    Call: 888-297-6203

                    Imagine, you have not paid the rent to your landlord since past few months, and now your landlord wants to evict you from his property. When the landlord handed you the eviction notice, you offered to pay the late rent (you just got it from a friend who owed it to you), but he asked you to pay an extra $900 to cover the lawyer’s fee, too. According to you, the lawyer didn’t do any work, so you refused to pay that extra amount. Now, in order to stop the landlord from going ahead with the eviction trial, you’ve filed for a Chapter 13 bankruptcy. Will that stop your eviction?

                    Going ahead with a Chapter 13 bankruptcy, in this case, can force reinstatement of the defaulted lease, but the disadvantage is that you’ll have to pay the complete amount which you owe to the landlord, along with his and your court costs.

                    Another drawback of filing for Chapter 13 bankruptcy can be that you won’t be allowed to represent yourself in the court. There are less than 1% chances of getting a Chapter 13 bankruptcy approved without an attorney, even if a bankruptcy petition preparer gives you self-help services. Thus, it will be important for you to hire an attorney for yourself which can be really expensive, as most of the bankruptcy lawyers charge around $4,000 for a Chapter 13 bankruptcy case.

                    The best way to come out of such a situation will be to make peace with the landlord outside the bankruptcy court. It will be comparatively easier for you to convince the landlord, as he’ll be aware that it’ll be almost impossible for him to get any money from you after the eviction. Also, the landlord will also lose added money in the search for a new tenant.

                    Is It Possible to Discharge a Previously Discharged Chapter 7 Bankruptcy Debt in Chapter 13 Bankruptcy?

                    Yes, you can discharge your debt in a Chapter 13 bankruptcy, only if you file for it more than four years after the date, on which you had previously filed for a Chapter 7 bankruptcy for the same debt. In case you filed for Chapter 13 bankruptcy in less than four years, you won’t be able to get a discharge. However, you can file for Chapter 13 bankruptcy for the same debt, if you want to, and make payments for it under a repayment plan.

                    Landing in such a type of situation can be extremely dangerous and thus, it’s necessary to take legal advice from competent attorneys, which you can easily find at https://www.staging.recoverylawgroup.com/. You can also contact them 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.

                    • Can Chapter 13 Bankruptcy be Bad for You?

                      Call: 888-297-6203

                      Despite what you have read or heard, bankruptcy might not always be the best way to get rid of debts, say, lawyers of Dallas based bankruptcy law firm https://www.staging.recoverylawgroup.com/. Though there are numerous instances when Chapter 13 bankruptcy plan has worked for the greater good of the debtor, there are some instances when filing for Chapter 13 bankruptcy might not be the best move. For instance, a client who is already five years into debt consolidation pays $400 per month with a remaining balance of $3,500. His home is worth $300,000 while he owes $325,000 on his 1st mortgage while $58,000 on his 2nd mortgage. He is current on his second mortgage which has a monthly payment of $600. Since the client makes $100,000 per year and lives frugally, filing for chapter 13 bankruptcy would not be the best way to get rid of debts.

                      Though bankruptcy will get rid of your 2nd mortgage and turn it into an unsecured claim, you will have to put all your disposable income into the Chapter 13 repayment plan for a period of 60 months. Currently, the client is paying $1,000 ($400 for consolidation debt and $600 for 2nd mortgage); thus Chapter 13 repayment plan will involve a sum of at least $1,000 per month. Since the debtor is living within their means, they might even up the disposable income. Over the duration of the repayment plan, they will end up clearing their debts in full including the 2nd mortgage. Thus, the advantage of opting for a Chapter 13 bankruptcy is that you end up repaying all your debts without paying any more interest. When it comes to the disadvantages of opting for Chapter 13 bankruptcy, in this case, there are quite a few. Filing for bankruptcy will include:

                      • Attorney fees ($4,000) for a basic chapter 13 case
                      • Attorney’s fees to strip off the lien ($1,500)
                      • Court filing fees $281
                      • $200 for real estate appraisal
                      • Bankruptcy trustee’s fees $6,000
                      • Compulsory credit counseling fees $25

                      I.e. you will end up paying nearly $12,000 for filing Chapter 13 bankruptcy case. This will eliminate any savings you would have made on getting rid of the interest on your debts. Additionally, entering Chapter 13 bankruptcy will put you 5 years behind on getting on a path to credit recovery. Since the debtor was already in a debt consolidation plan for 5 years, this would mean getting 10 years behind. In this situation, working on the consolidation program to get rid of your debts will be the best way. Once that is removed, you can get rid of the 2nd mortgage. To get excellent consulting advice, you can speak with experienced bankruptcy attorneys at 888-297-6023.


                        *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.