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Category: Chapter 13 Bankruptcy

  • Is Social Security Excluded from Disposable Income in Chapter 13 Bankruptcy?

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    According to the ruling of the Fourth Circuit, people who file for Chapter 13 bankruptcy do not need to include social security as part of their disposable income. This is a huge relief say lawyers of Dallas based bankruptcy law firm Recovery Law Group as the social security income can be saved and you might have surplus income after paying expenses and all planned payments as part of the repayment plan.

    Most states are undecided with respect to the inclusion of social security in your disposable income during a Chapter 13 bankruptcy. Despite bankruptcy code stating that social security should not be included for disposable income calculation, many bankruptcy courts dismiss the Chapter 13 repayment plan for not including social security income as being proposed in ‘bad faith’.

    The fourth Circuit’s decision is a welcome breath of relief for residents of Maryland, North and South Carolina, Virginia and West Virginia. The court ruling is in accordance with the bankruptcy code’s exclusion of social security income. With this decision, they have joined the Fifth, Sixth, Eighth and Tenth circuits.

    The landmark decision makes it optional for people to include their social security income in their Chapter 13 repayment plan. However, you need to discuss this with your lawyer. In case you haven’t hired one, you can call 888-297-6023 to discuss your case.


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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.

    • Chapter 13 Debtors with Above Average Income Are in For a Shock

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      According to a ruling of Ninth Circuit Court of Appeals, Chapter 13 bankruptcy filers who have above-median income compared to people of that state and have no disposable income to pay unsecured creditors cannot opt for a 3-year repayment plan. They will be in bankruptcy for the entire 5 years duration. Chapter 13 bankruptcy lasts for 3-5 years depending on your household income. As per Los Angeles based bankruptcy law firm Recovery Law Group lawyers, people with income below state median remain in bankruptcy for 3 years while those with above median income have bankruptcy plan of 5 years.

      However, there are certain exceptions to the rule; like a below-median person can opt for a longer plan and an above-median person can opt for a smaller one if then can pay off all unsecured debt before the five years. Another exception which is seen in some circuits is that above-median debtors can opt for a 3-year plan if their disposable income is negative or zero.

      In a chapter 13 bankruptcy, all disposable income is used to repay your debts over a period of 3-5 years. The disposable income is calculated by deducting all essential expenses from your monthly income. Even with a high income, the essential expenses might cause your disposable income to be zero or negative. Many courts had allowed above-median chapter 13 debtors without any disposable income to file for a 3-year repayment plan. This allowed the debtor to get out without spending another 2 years in bankruptcy.

      However, the Ninth Circuit has joined other circuits in changing the rules for high-income debtors. With changes in their ruling, the Ninth Circuit joins Sixth, Eighth and Eleventh Circuits on the issue. Above median income people who are filing for Chapter 13 bankruptcy in Arizona, Idaho, California, Montana, Nevada, Hawaii, Oregano or Washington should be prepared for their bankruptcy to continue for 5 years. To know more about bankruptcy, you can call bankruptcy lawyers at 888-297-6023and get details regarding repayment plan and bankruptcy discharge.


        *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.

      • Can You Buy a New Car During Chapter 13 Bankruptcy?

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        There are many times when misfortune keeps on entering your life. Lawyers of Los Angeles based bankruptcy law firm https://www.staging.recoverylawgroup.com/discuss a case where a couple who was in a 5 year Chapter 13 bankruptcy plan had the misfortune of losing their car to fire. Though the insurance declared it a total loss and offered them $13,000; buying a new car while in their 3rd year of bankruptcy can be a big dilemma.

        In case there was no money owed on the vehicle, it is easier for the owners. However, if some money is owed then you need to pay the lender the remaining money before you can get any of the insurance money. before buying a car, it is important to know whether cash will be sufficient, or you will need additional finances. The various options available in this situation include:

        • In case you have enough finance to purchase the vehicle, you can go ahead without any permission. You can opt for a used car or a brand new one if you have the resources.
        • In case you will need financing for your vehicle, things might be a bit complicated. You need the bankruptcy court’s approval prior to getting the loan approval and will also need a keen lender.
        • Court approval is essential before buying anything while under a bankruptcy plan. Since the approval takes 1 months’ time (processing of paperwork, giving permission for financing), it is important that you get permission before approaching any car dealer. For permission, you need to inform the court what happened to your previous car, what amount you will be spending on the new vehicle, how much finance will be done, approximate monthly payments and the effect of the proposal on your chapter 13 bankruptcy plan.
        • Once you get the court order you can shop for your new car. Care should be taken to make the car dealers clear about your financial predicament (bankruptcy).
        • Before signing on the dotted line, negotiate with the car dealer for not just a better price on the vehicle but also the interest rate on a car loan. Choose the best plan from those available.
        • Additional car payments might affect your chapter 13 repayment plan. In case you have money to support the deal, it is good; else ask the court to modify the plan. You can opt to reduce payments being made to unsecured creditors in order to support the car payments.
        • However, sometimes creditor’s payment might not be reduced. In this case, your bankruptcy schedule might have to be amended. You need to update your schedule to disclose changes in your financial situation (loss of vehicle, insurance proceed receipt, purchase of a new car).

        Though there shouldn’t be any issues updating your bankruptcy schedule, however, full disclosure is the best way forward. A bankruptcy lawyer can help you with the finer nuances. In case, you haven’t hired any lawyer, you can call experienced lawyers at 888-297-6023 to discuss your case.


          *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.

        • Child and Spousal Support in Chapter 13 Bankruptcy

          Child and Spousal Support in Chapter 13 Bankruptcy

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          If you have ended up accumulating large amounts of debts, bankruptcy might be a great way to get rid of those debts. However, while you decide to file for bankruptcy, it is vital to understand that not all debts get discharged during bankruptcy. According to Los Angeles based bankruptcy law firm Recovery Law Group, secured debts, as well as priority debts, survive bankruptcy. Secured debts are those debts against which the creditor has some asset (mortgage, auto loan, etc.) while priority debts include those like child support and alimony payments.

          Chapter 13 bankruptcy offers a great chance for people with large amounts of debts and sufficient income to put a hold to collection tactics of creditors. Automatic stay is put in force when any individual files for bankruptcy, and this provides debtors with enough time to restructure their finances in order to pay their debts in time. Sometimes, debtors might also place a stay on the collection of child or spousal support. However, it is vital to remember that these debts are not discharged in bankruptcy.

          Usually, support obligations (child and spousal support) are not affected by Chapter 13 bankruptcy. Individuals who file for bankruptcy under this chapter continue to make payments towards this obligation throughout their bankruptcy course. However, if they request to put a halt on the support collection during chapter 13 bankruptcy recourse, the court can allow it.

          Since support obligations are considered priority debt which though unsecured is never discharged in case of bankruptcy, the debtors are expected to make payments towards this debt, even after their bankruptcy discharge. In case a debtor is successfully able to halt collection actions on these debts during their bankruptcy chapter, completion of Chapter 13 bankruptcy discharge will result in them having to pay for the obligations, till the support order requires them to. Chapter 13 bankruptcy discharge, therefore, has no effect on the payment of child and spousal support.

          If you find all this too mind-boggling, it is best you consult with experienced bankruptcy lawyers Los Angeles who are aware of the various nuances of the law. You can call 888-297-6023 to seek expert guidance regarding the best approach to get back on track financially.


            *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.

          • Consumer Benefits of Chapter 13

            Consumer Benefits of Chapter 13

            Call: 888-297-6203

            While bankruptcy might be traumatic, it is an excellent way to get rid of excessive debts legally. As per lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, most people filing for bankruptcy prefer Chapter 7. This is probably because you get a discharge within a relatively smaller time and with few financial restrictions and probable loss of some personal property, they can get rid of their debts. However, if you have a substantial income to pay off your debts, you might not be able to qualify for Chapter 7. In such a scenario, Chapter 13 is a great way out for people in debt who wish to stop creditor harassment and get rid of their debts.

            In case of Chapter 13, a repayment plan is devised based on your disposable income, through which you end up paying some portion of your debt to the creditors over a specified period (generally 3-5 years). Unlike Chapter 7 where the non-exempt property is sold off to pay the creditors, you can protect your assets from liquidation in Chapter 13 if you pay your creditors a sum equal to the non-exempt property. However, there is a limit capped by the court to saving non-exempt property by the debtor. In case you have enough income to afford the repayment plan, Chapter 13 is ideal for your financial recovery. For details regarding the benefits associated with this bankruptcy chapter and the protections you get when you file for bankruptcy, you can call 888-297-6023 to speak with expert bankruptcy lawyers Los Angeles.


              *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.

            • Why Abiding by Chapter 13 Repayment Plan is Essential?

              Why Abiding by Chapter 13 Repayment Plan is Essential?

              Call: 888-297-6203

              Filing for bankruptcy is probably one of the worst decisions anyone must take. Admitting that you were unable to manage your finances properly can be quite humiliating. However, once you have decided to go ahead with it, you should ensure that you get a discharge for your debts. Chapter 13 bankruptcy offers debtors a chance to reorganize your debts and pay some portion of it over a period of 3-5 years through a repayment plan. The court-approved plan is an excellent way to get rid of debts and get back on track financially.

              Los Angeles based bankruptcy law firm Recovery Law Group, lawyers inform that the repayment plan is based on your disposable income. However, once the plan is approved, it is essential that bankruptcy filer ensures that payment is made to the bankruptcy trustee every month. In case, he/she is unable to follow the repayment plan, they will be facing consequences far worse than before.

              Inability to stick to the repayment plan might result in the dismissal of bankruptcy which will cause creditors to resume all sorts of collection actions (repossession, foreclosure, wage garnishment, etc.). to ensure that things remain on financial track, the debtor must follow financial restrictions and avoid making unnecessary expenses. Certain debts like child support or alimony are not discharged even after bankruptcy. Thus, the debtor must ensure that these obligations are met along with the repayment plan. Adding on new debts is something that debtors should avoid. In case, some urgent requirements arise, consulting with bankruptcy trustee is recommended.

              If, after following the plan for some time, the debtor finds it too restrictive, they can also request the court to modify the repayment plan to a more feasible one. This can be done only if the debtor shows good faith gesture to go ahead with the plan, despite facing financial difficulty.

              In case you have decided to go ahead with Chapter 13 bankruptcy, but are unaware of the finer nuances, it is important you seek consultation with experienced bankruptcy lawyers. You can call 888-297-6023 to discuss your case with qualified professionals.


                *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.

              • Everything You Wanted to Know About the Chapter 13 Repayment Plan

                Everything You Wanted to Know About the Chapter 13 Repayment Plan

                Call: 888-297-6203

                Filing for bankruptcy is often the last option taken by people who have been struggling with debts for a long time. According to Los Angeles based bankruptcy law firm Recovery Law Group lawyers, people have the option of filing under Chapter 7 or Chapter 13. Ideally, Chapter 7 is preferred as it gets rid of all unsecured debts without losing many assets of the bankruptcy filer. If, however, you fail to qualify the means test, you are stuck with Chapter 13. It is therefore important to know what happens in this chapter so that you are prepared to handle what comes your way.

                Here are some of the key facts related to Chapter 13 bankruptcy:

                • Chapter 13 involves a repayment plan where you are expected to pay back your creditors some portion of your debt.
                • The repayment plan lasts for 3 or 5 years depending on whether your average monthly income for the past six months prior to bankruptcy filing was less than or more than the state median respectively.
                • The repayment to creditors is done using your disposable income, i.e. the income which is left after deducting all essential monthly expenses such as housing, food, etc.
                • If your financial situation deteriorates during the repayment plan (loss of a job, unexpected medical expense, ) which results in non-payment of the dues, you can ask for a modification in your agreement by consulting your bankruptcy trustee.
                • After completion of the repayment plan in 3-5 years, you can get a fresh financial start.

                For more details regarding bankruptcy procedure and filing, you can contact experienced bankruptcy lawyers Los Angeles, 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.

                • Who Can File for Chapter 13 Bankruptcy?

                  Who Can File for Chapter 13 Bankruptcy?

                  Call: 888-297-6203

                  When you realize that there is no way out of debts, bankruptcy might be the logical conclusion. Though, people prefer Chapter 7, very few manage to qualify for it. The other option for people is filing for bankruptcy under Chapter 13. However, lawyers of Dallas based bankruptcy law firm Recovery Law Group, say that it is essential that you qualify for the same.

                  The eligibility criteria for Chapter 13 bankruptcy include:

                  • Only individuals and not business entities can file for Chapter 13 bankruptcy.
                  • If you had previously filed for a Chapter 13 or Chapter 7 bankruptcy and got a discharge, you cannot proceed with Chapter 13 bankruptcy before two years and four years respectively.
                  • It is mandatory to attend credit counseling
                  • There is a limit capped on your debts in case of Chapter 13 bankruptcy filing in Dallas. You should not have more than $1,010,650 secured debt and $336, 900 unsecured debt. These figures, however, change every three years factoring for inflation.
                  • Filing of state and federal income tax returns is mandatory.
                  • The repayment plan should include all required debts.
                  • Sufficient disposable income must be present to pay the debts through the repayment plan proposed.

                  In case you fulfill all the above-mentioned criterion, it is pertinent that you consult with experienced bankruptcy lawyers at888-297-6023 before pursuing the plan further.


                    *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.

                  • The Workings of Chapter 13 Bankruptcy

                    The Workings of Chapter 13 Bankruptcy

                    The Workings of Chapter 13 Bankruptcy

                    Chapter 7 and Chapter 13 bankruptcy are the most common ones which individuals file for getting rid of their debts. Depending on their financial condition, their assets, income, and debts, a suitable course of action is determined by a skilled bankruptcy attorney. In Chapter 13 bankruptcy, bankruptcy filer ends up paying some amount of debt while getting a discharge on others. According to Dallas based bankruptcy law firm Recovery Law Group, it is important to know what course of action is preferred by the client. Bankruptcy can help you and your family by putting collection actions on hold and eventually getting rid of huge amounts of debts. Post-bankruptcy, you can get a fresh financial start which can help improve your credit rating too.

                    Finding Bankruptcy Lawyer

                    The first and most important step of bankruptcy filing is finding an experienced attorney for yourself. Since bankruptcy is a complicated process, with fewer chances of success without a lawyer, it is important that you hire one soon. You need to consult with various bankruptcy lawyers in order to hire the best-suited one. You can call 888-297-6023 to schedule an appointment to discuss your case with adept bankruptcy attorneys. It is important to discuss your income, assets, and your debts to determine the course of action for your case.

                    Finalizing Repayment Plan

                    Chapter 13 is different from others because it includes a repayment plan through which you pay some portion of your debts over a period of 3-5 years’. You are not required to pay off all your debts in this fashion but continue making payments based on your disposable income for the entire duration of the plan. Any remaining debts are discharged.

                    Why do people prefer chapter 13 bankruptcy?

                    People who find themselves ineligible for Chapter 7, apply for bankruptcy under Chapter 13. Though Chapter 7 is preferred, as most debts are discharged in it, in a shorter time frame; yet people with substantial income and huge debts will not be able to pass the means test. Moreover, Chapter 13 allows you to not only catch up on past due payments but also provides you an option to include debts like child support, alimony or income tax in your repayment plan. If you wish to keep your non-exempt property, you can do so in Chapter 13, if you are paying an amount equivalent to it to your creditors. Additionally, if you had previously filed for Chapter 7 bankruptcy within the past 8 years, you can file again using this chapter of bankruptcy. With an experienced attorney by your side, Chapter 13 bankruptcy Dallas is the best way to get rid of debts while protecting your assets.


                      *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.