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Category: Chapter 13 Bankruptcy

  • Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?

    Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?

    People going through a bad financial phase often opt for bankruptcy to get rid of their debts. Individuals can either opt to liquidate their non-exempt property to pay their creditors under Chapter 7 bankruptcy or choose to repay their loans over a period of 3-5 years in Chapter 13 bankruptcy. However, if some claims persist even after the repayment plan is over, does the individual have the option of extending the repayment plan? According to Dallas based bankruptcy law firm Recovery Law Group, such a provision is not possible. However, expert bankruptcy lawyers at 888-297-6023 inform that you can always find a way around to get things done.

    Chapter 13 bankruptcy involves a repayment plan which is devised based on your disposable income. However, some debts might survive despite the repayment plan. Unless these dues are cleared, you cannot get your bankruptcy discharge. In case of such a situation, the bankruptcy trustee might file a motion to dismiss your bankruptcy case. If your repayment plan is over and you lack the additional money to pay, your case might be dismissed which will result in your unpaid interest on credit cards due. Fresh out of bankruptcy and with a huge amount of debts, you will not be able to file for respite also. It is therefore important to look for alternative solutions.

    Dismissal of a bankruptcy case will allow your unsecured creditors to stake claim to their dues. Since Chapter 13 bankruptcy repayment plan cannot be extended beyond 60 months, and dismissal of the case by the trustee is something you cannot afford, you need to file an opposition to the bankruptcy trustee’s motion of dismissing your case. Your bankruptcy attorney can ask the court for additional time to pay the remaining money.

    If the court agrees to continue a hearing on this matter you get time to pay your debts. Your lawyer can also ask the bankruptcy trustee to agree for continuing the hearing. This will provide you extra time to clear the debts. Though officially you cannot modify or extend your repayment plan, no law prevents a trustee from accepting voluntary payments with respect to your debts beyond your repayment plan. In case the trustee does not agree, the proposal can be presented to a judge who might agree if your Chapter 13 repayment record is excellent.


      *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.

    • Thinking about converting Chapter 13 to Chapter 7 before the term ends?

      Thinking about converting Chapter 13 to Chapter 7 before the term ends?

      A recent court case has provided for good news for many Chapter 13 filers. There can be many scenarios wherein, Chapter 13 payment plan might just not go as planned. The filer might not be in exceptional hardship to get a ‘hardship wave off’ but certainly paying off dues as per the payment plan can become extremely challenging. Converting Chapter 13 bankruptcy to Chapter 7 is a great option for such bankruptcy filers. It was not really ‘on’ but after a recent Supreme Court hearing, it has become more realistic now. To learn more about some latest judgments and their impacts on your case, log on to https://bankruptcy.staging.recoverylawgroup.com/.

      What was the case?

      The historical case had Harris file for Chapter 13 bankruptcy. His approved payment plan had a $530 payment, which he provided for to the bankruptcy trustee every month. The bankruptcy trustee had to distribute those payments to two major lender categories. One chunk would go to the bank for mortgage arrears, while the second chunk would be distributed to other lenders based on the proportion of their liability. Mr. Harris was not able to keep up with the mortgage arrears and lost his home due to foreclosure. After this, Harris continued making $530 of plan payments but did not distribute the amount allocated to the mortgage arrears to other lenders.

      After a year or so, the funds accumulated to $5,500 which had not been distributed to other lenders. Mr. Harris decided to convert his bankruptcy into Chapter 7 and realized within a span of 10 days, the bankruptcy trustee had distributed $5,000 to the other lenders. Mr. Harris was unhappy with this and sued the bankruptcy trustee for his $5,500.

      Different courts had different opinions

      Some experts, as well as courts, thought that the funds held by the bankruptcy trustee belong on the lenders or the creditors once, Mr. Harris converted his case to a Chapter 7 bankruptcy. However, other courts and the Supreme Court judgment seem to believe that the undistributed funds in the hands of the bankruptcy trustee belong to the debtor. This was certainly a big relief for Mr. Harris and various other Chapter 13 to Chapter 7 converters.

      Some key pointers in Supreme Court’s inference

      Court highlighted a few points, which will be a base for many such future arguments or judgments. These can be listed as follows-

      • The court inferred that when a Chapter 13 case is converted to Chapter 7, the bankruptcy estate shall consist of income and assets owned by the filer when he/she originally filed Chapter This means any income generated after the filing debt and any asset built after the filing date, will not be included in the bankruptcy estate. All these belong to the filer.
      • The Chapter 13 bankruptcy trustee Los Angeles does not hold any right to distribute the $5,500 to the lenders as in the case of Mr. Harris.
      • In order to overcome this scenario, the bankruptcy trustee and the lenders should consider distributing income regularly and appropriately to minimize such controversial situations.

      If you are a lender or a bankruptcy filer, how does this ruling affect you and your bankruptcy or lending situation? Find out by dialing in +888-297-6203.


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        *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.

      • Chapter 11 or Chapter 13: What is Best For a Small Business?

        Chapter 11 or Chapter 13: What is Best For a Small Business?

        Small businesses, when comes under acute pressure of financial liabilities, do not have many options with them. Filing for bankruptcy can be the only option if you had like to revive your small business or wrap up the same. Chapter 7 bankruptcy will lead to winding up of the small business while Chapter 11 or Chapter 13 (if qualified) can help you in keeping the business running. To learn more about Chapter 7 and its benefits, log on to https://bankruptcy.staging.recoverylawgroup.com/.

        How does Chapter 11 or Chapter 13 help?

        The concept or logic used in Chapter 11 or Chapter 13 is similar. They deal with the restructuring of business/individual debt in order to make the payout more practical and feasible for all parties involved. Some key benefits of this concept can be listed as follows-

        • Allows for business continuity by retaining most business assets
        • Helps you buy time to settle the crisis, extremely beneficial if the business has been struck with some temporary obstacles
        • Helps in arriving at a negotiated agreement with the secured lenders
        • Helps in releasing some of the debts, especially non-priority unsecured debts that cannot be paid of during the length of the proposed repayment plan

        Eligibility and benefits

        In comparison, if eligible, Chapter 13 is always a better option. Most small business owners especially sole proprietors are eligible for Chapter 13 and opt it straight away even before evaluating Chapter 11. Chapter 13 is less expensive and less complicated compared to Chapter 11, which makes it a straight choice. Eligibility criterions for Chapter 13 are listed as follows-

        • As discussed earlier any individual who has a sole proprietorship is eligible for Chapter 13.
        • In certain cases, based on case to case scenarios, small enterprises below the debt threshold can be facilitated under Chapter 13.
        • This, however, is completely in discretion of the bankruptcy court and is pretty rare.
        • If you are a sole proprietor and have debts below the threshold, you would not have to worry about the rarest of rare scenarios.

        Unlike Chapter 13, Chapter 11 does not have any eligibility criterion. Anyone can usually file under Chapter 11 for bankruptcy. Individuals, corporations, small businesses, partnerships, etc. There isn’t any debt threshold either. It is a sort of blanket bankruptcy chapter that is slightly more expensive and complicated than other alternatives.

        Advantages of Chapter 11

        • The first advantage of Chapter 11 is with respect to the modification in terms with the secured lenders. This negotiation and change in terms make it more likely for a business to retain its assets and function well in order to recover from the state of bankruptcy.
        • The usual concept of discharge or release of debt occurs only when the payment plan has ended. The payment may vary as per disposable income in Chapter 13, which means if the income increases over the duration of payment’s plan, you might end up paying more and have fewer debts discharged or released. The debt in the case of Chapter 11 bankruptcy, is released with the start of the payment plan. Once, the payment plan has been approved, the unpayable debt as per the payment plan is released.
        • The cost or commission towards a bankruptcy trustee can be saved when using Chapter 11. As per laws, bankruptcy trustee appointment is optional and is usually appointed only with respect fraudulent or mass mismanagement cases.

        Advantages of Chapter 13

        • Unlike Chapter 11, the tenure of repayment is limited to 5 years under Chapter 13. If the secured debts and disposable income fail to meet during the 5 years, a small business might have to lose some of its assets during the course Chapter 13 bankruptcy.
        • The liability to turnover disposable income irrespective of the payment plan obligations, lower debt release percentages and compulsory appointment of a bankruptcy trustee are some disadvantages of Chapter 13. However, in spite of all these, the Chapter 13 bankruptcy Los Angeles process tends to be quicker and cheaper compared to Chapter
        • The making and approval of payment plan is a lot of quicker compared to Chapter 11

        To know more about eligibility, possibilities and best roundabouts for your small business organization, reach out to some of the vastly skilled and experienced attorneys@ 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.

        • Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

          Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

          Chapter 7 and Chapter 13 are the preferred routes taken by individuals filing for bankruptcy. Each has specific requirements that you must meet if you wish to get your debts discharged. According to Los Angeles based bankruptcy law firm Recovery Law Group , you need to be current on your payments and protect all home equity through bankruptcy exemptions in the case of Chapter 7. While in Chapter 13, you get a chance to catch up on missed mortgage payments through arrearage in the repayment plan.

          Both state and federal government offer exemptions to protect your equity in the property when you file for bankruptcy. You might be able to choose between either of those options or make the best of the state exemptions. Before filing for bankruptcy, it is important to consult expert lawyers to know which chapter of bankruptcy will result in saving more property. Call 888-297-6023 to clear your doubts regarding exempt property and bankruptcy. The exemptions vary from state to state. In the case of chapter 7 bankruptcy, any non-exempt property will be sold, and the proceeds distributed among your creditors by the bankruptcy trustee. Chapter 13 bankruptcy allows you to keep your non-exempt property if you pay your creditors an amount equal to the amount of non-exempt property you are keeping. This proves to be costly and will not be approved unless you can show you have enough disposable income to repair creditors.

          Chapter 7 Bankruptcy

          Chapter 7 bankruptcy allows you to get rid of unsecured debts relatively quickly. In most cases, people can protect their exempt property and have to let go home a small amount of non-exempt property. You can keep your home in this case of bankruptcy if:

          • you are current on your mortgage payments;
          • bankruptcy exemption protects your entire home equity;
          • you can afford to make payments on the loan in the future

          However, this chapter does not allow you to catch up on past due payments. In case you have a lot of equity in the house, it is difficult to protect it from being sold by the bankruptcy trustee to repay your creditors.

          Chapter 13 Bankruptcy

          This is a better option if you wish to keep your home when you have a lot of equity and have previous due payments to catch up on. Incidentally, it also helps in getting rid of second or third mortgages. This involves a repayment plan through which you can pay back your creditors over 3 to 5 years’ time frame. You could also ensure that a separate debt is added to the repayment plan which addresses your mortgage arrearage. You need to show that you have enough income to make regular mortgage payments along with your plan payments during bankruptcy.

          Chapter 13 also prevents creditor to take any foreclosure action on the mortgage as long as you are making regular payments as per your repayment plan. Lien stripping helps you get rid of any junior lien on your home in case of Chapter 13 bankruptcy Los Angeles. This takes place only in case the property is now worth less than the balance of the primary loan. evidence pertaining to this if submitted bankruptcy court might make any junior lien void. Any debt owed to that creditor is treated as unsecured debt and is wiped out along with other similar debts at the end of your bankruptcy 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.

          • Which Debts Survive Chapter 13 Bankruptcy?

            Which Debts Survive Chapter 13 Bankruptcy?

            People often opt for bankruptcy to get control over the spiraling debts they have accumulated over a period. While in case of Chapter 7, your non-exempt property is liquidated to pay off your creditors and any remaining unsecured debts are discharged; Chapter 13 helps you to reorganize your debts and make payments towards them over a period of 3 to 5-years’ time. Your unsecured nonpriority debts are paid off through the repayment plan and any subsequent debts are discharged at the end of the period. Los Angeles based bankruptcy law firm Recovery Law Group, lawyers inform that there are certain nonpriority, unsecured debts which are not discharged even after bankruptcy. To know more about your case, and debts remaining after bankruptcy call 888-297-6023.

            Some of the debts which can survive Chapter 13 bankruptcy include:

            Domestic support obligations

            This debt is compulsory and cannot be discharged, neither in Chapter 7 not in Chapter 13 bankruptcy. You must ensure that you make 100% repayment on child and ex-spouse support during the course of your repayment plan and even after that.

            Criminal penalties

            Any fines you owe due to any convictions for crimes you committed (including traffic ticket) cannot be discharged, even in case of Chapter 13 bankruptcy.

            Fines owed to government agencies

            Any fines that you owe the government, or you have been subjected to penalty, such debts are not discharged. However, in case the government agency calculates the fine due to you being overpaid benefits or your failure to inform about the income, then the amount overpaid is dischargeable like unsecured debts. The fine itself is not dischargeable.

            Certain taxes

            Income tax debts which were due within the 3-year period prior to bankruptcy filing date are priority debts which do not get discharged even if your bankruptcy ends abruptly. Any tax debts which remain post ending of your bankruptcy need to be paid outside of bankruptcy. Alternately, you could get your Chapter 13 bankruptcy converted to Chapter 7.

            Debts due to DUI

            DUI is a punishable offense. In case you injure or cause the death of any person while driving under influence, the debts so arising are not dischargeable. It is important to remember that any debts arising due to personal injuries caused due to drunk driving are not dischargeable, but any property damage caused due to driving under influence is dischargeable.

            Debts due to willful or malicious intent

            Debts arising due to any willful and malicious act which results in personal injury are non-dischargeable. In case a creditor obtains a judgment in civil court against you, the debts won’t be discharged. Unlike Chapter 7 bankruptcy, which discharges reckless driving debts, Chapter 13 does not allow this. However, Chapter 13 includes debts arising due to personal injury or death only, and not damage to personal property, as is the case with Chapter 7.

            Student loan

            Unless you can prove substantial hardship, student loans do not get discharged during bankruptcy. However, you might get a discharge on the interest on student loans in some cases but not on the principal amount.

            Fraudulent loan

            Any debt obtained due to theft or fraud cannot be discharged during Chapter 13 bankruptcy California. Such debts are only discharged if the creditor is unable to establish the fraud in bankruptcy court.

            Creditors you forgot to list

            When you file for bankruptcy, you are required to list all your debts and creditors on the papers. The court then uses this comprehensive list to contact your creditors to inform them of your bankruptcy. If the creditor is aware of your debts and the debt is dischargeable, then the debt will be discharged. However, in case any creditor is not listed on bankruptcy papers or has shifted residence and gets no notice of your bankruptcy, those debts will survive bankruptcy.

          • Which Debts Need to be Paid in Chapter 13 Bankruptcy?

            Which Debts Need to be Paid in Chapter 13 Bankruptcy?

            When you file for bankruptcy, all debts are not supposed to be paid in a similar fashion in Chapter 13 bankruptcy case. According to Los Angeles based bankruptcy law firm Recovery Law Group, the amount you need to pay depends on whether the claim is a secured, priority or an unsecured claim. In case you are confused regarding the aspects of bankruptcy, contact with expert bankruptcy lawyers at 888-297-6023 to clear your doubts.

            Secured claims

            Those debts in which the creditor has collateral, These include car loans and mortgages. Payments of the secured loan depend on how long the loan has been taken; is your loan underwater and the rules of the court. Non-payment of debt in case of a secured loan will result in the creditors collecting the collateral and selling it to clear the debt. Filing for Chapter 13 bankruptcy can help you protect your property if you stay current on our payments and pay off any arrearages during your repayment plan. Some important points to remember are:

            • In case your payments are intended to last longer than the repayment plan (as in the case of mortgages), you are not required to clear the debt in
            • You have the option of cramdown where you can reduce the payment of your car or any other property to the current market rate.
            • A second or third mortgage can be wiped out by stripping the lien.
            • You can also catch up on arrearages through the repayment plan.

            In case of mortgage debts, you need to make monthly payments over the period of your repayment plan and even after the case ends, depending on how long the secured debt was taken for. If you are behind your payments, you can catch up through the repayment plan. You need to pay the arrears and the interest you incurred over the period of your repayment plan.

            Any past due to property tax can be repaid with full interest over the period of your Chapter 13 repayment plan. Similarly, you can use the repayment plan to catch up on your car loan. You need to pay the entire balance before your repayment plan ends. You can ask for a cramdown of your car loan to the amount the vehicle is currently worth if you had purchased the car 910 days prior to a bankruptcy filing. You end up paying the market value of the car along with the interest through the plan. Any remaining due is treated as unsecured debt.

            Unsecured claims

            These types of claims do not have collateral attached and hence the creditor cannot take any property if you cease to make payments on the loan. Unsecured claims are of two kinds:

            • Priority unsecured claims

            There is no collateral involved but they are prioritized over non priority unsecured claims when it comes to paying debts. These claims are not discharged during bankruptcy and you need to make payments towards them throughout the Chapter 13 repayment plan. These debts include any recent income tax debts, past due child or spousal and administrative expenses.

            • Nonpriority unsecured claims

            Any claim which does not fall in the above categories constitutes a non priority unsecured debt. These include personal loans, credit card debts, medical bills, and utilities. A percentage pro rata share of your disposable income or the value of your exempt property (whichever is higher) is used to pay for your unsecured claims. In most cases of Chapter 13 bankruptcy Dallas, a small portion of the unsecured debt is paid, and the remaining 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.

            • When is Chapter 13 More Advantageous Than Chapter 7?

              When is Chapter 13 More Advantageous Than Chapter 7?

              The common tendency of bankruptcy filers is to believe that Chapter 7 is better than Chapter 13. Yes, Chapter 7 has many benefits, but it can outrightly not be regarded as the best alternative compared to Chapter 13. There are many scenarios when Chapter 13 can prove more advantageous than Chapter 7. Every bankruptcy chapter has some or the other benefits and flaws. To learn more about all the Chapters and their technicalities log on to Recovery Law Group. Some of the Chapter 13 benefits over Chapter 7 can be listed as follows-

              • When you are not eligible for Chapter 7

              If you fail to be eligible for Chapter 7, well the only option available could be Chapter 13. In that scenario, Chapter 13 is beneficial. In other words, it is easier to qualify for Chapter 13 than Chapter 7. There is a median test as well as a means test to be eligible for Chapter 13. The calculation can become slightly intriguing but the straightforward debt thresholds for Chapter 13 make it a lot easier to determine if you qualify for Chapter 13 or not.

              • Safeguarding your car and other important assets

              Even if you are eligible for Chapter 7 after undergoing the complicated calculations, applying through Chapter 13 might still be a better option. If you are running behind the payment schedules of your car mortgage, you get to keep your car as well accommodate the payment of the arrears in the proposed payment plan over the next three to five years.

              • Managing the priority and non-releasable debts

              If you have a larger portion of debts that cannot be released, Chapter 13 is the right option for you. Child support, alimony, tax debts, etc., are a few examples of non-releasable debts. If your debt constitutes of a good portion of these debts, then Chapter 13 is a very good option. You get sufficient time period of 3-5 years to pay off these non-releasable debts, while you end up without assets as well as liable to these non-releasable debts with Chapter 7 bankruptcy code Dallas.

              • Time is all that you need

              Sometimes, people come across a stage when nothing is working well for them and it is usually all about time. A relaxed phase of 2-3 months can put you back on track with your finances and help you pay off all your dues. This time is very difficult to get especially when you are falling behind several payments across lenders. If you have a steady flow of income and time is all you need to pay off your debts, Chapter 13 can help you close most your debts as well keep all your assets intact. This is possible due to a phenomenon called ‘automatic stay’ which is applied as soon as you apply for bankruptcy. Some salient features of ‘automatic stay’ can be listed as follows-

              1. The lender cannot garnish your wages, or withdraw your cheque, funds from the bank account or make such request to your bank
              2. The creditor cannot repossess your secured loan assets like a car or jewelry, or any other asset kept as collateral
              3. The lender cannot foreclose a home mortgage either
              4. The creditor cannot initiate any suit against you for defaulting payments

               

              • If your tally of a nonexempt asset includes an asset you had like to keep

              If you have a nonexempt asset which shall be liquidated during the course of Chapter 7 bankruptcy procedure, Chapter 13 becomes an obvious choice to safeguard your asset as none of the assets are repossessed or liquidated under the Chapter 13 bankruptcy.

              • To relieve you co-debtor

              If there is any guarantor for any of your debts, the co-signer or co-debtor can have all the possible troubles of recovery with Chapter 7 bankruptcy. The filer is safe, but the guarantor or co-debtor isn’t. The lenders will go after the guarantor to recover as much of dues as possible. This could be very disturbing for the co-debtor. With Chapter 13, there is no such hook on the co-debtor since you have proposed to payout most of the debts in the next 3-5 years.

              To know more about Chapter 13 and Chapter 7 technicalities, formalities, applying details and to discuss what is best in your case, call us now 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.

              • What happens to Your Vehicle in Chapter 13 Bankruptcy?

                What happens to Your Vehicle in Chapter 13 Bankruptcy?

                Chapter 13 bankruptcy allows you to catch up on previous dues and make arrangements to clear your secured, priority and unsecured debts through a repayment plan. Unlike Chapter 7, you can keep all your property in Chapter 13 bankruptcy if you pay your unsecured creditors the amount of non-exempt property you are keeping. This chapter of bankruptcy, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, can help you catch up on mortgage and car loan payments and also help in reducing the amount owed in the latter case.

                Sometimes, even Chapter 13 bankruptcy might not help you with keeping your vehicle; and it might be wise to let go, especially if the non-exempt equity in the car is too much. The bankruptcy exemptions allow you a certain amount of equity in a vehicle. In case you have two vehicles or have a vehicle with exceptionally high car payments (luxury vehicle), then keeping it during bankruptcy would be foolhardy. If you wish to know more about keeping your vehicle during bankruptcy, you can consult with expert bankruptcy lawyers at 888-297-6023.

                Can Chapter 13 bankruptcy help with your vehicle?

                Chapter 13 helps bankruptcy filers who wish to keep their property, the primary benefit is automatic stay which prevents repossession of the vehicle in case you have fallen behind on payments. When you file for bankruptcy, the automatic stay provision stops all collection actions including foreclosure and repossession. What’s more, if a lender has already repossessed your vehicle, you might get it back if you file for bankruptcy!

                Chapter 13 also offers you a chance to catch up on previous payments. You can be in the good books of the creditor if you pay for the arrearage (the amount you are behind on car loan) along with regular car loan payments through the Chapter 13 repayment plan. If you continue making these payments during the course of your bankruptcy chapter, the lender cannot repossess your car.

                You might even reduce your car loan by cramdown. This facility is available for vehicles purchased 2.5 years prior to a bankruptcy filing. If the value of the vehicle is less than the amount due, you might be able to get the loan amount reduced in the case of Chapter 13 bankruptcy Los Angeles. Any remaining amount is treated as an unsecured debt; paid using your disposable income (the amount left after taking care of your monthly expenses and paying secured and priority debt). Unsecured debts are discharged at the end of the repayment plan.

                What to do if you wish to keep your vehicle?

                Chapter 13 allows you to keep the non-exempt property as long as your creditors are getting adequately compensated through the repayment plan. Apart from your monthly expenses including any mortgage or car loan payments, the disposable income will be used to pay off the creditors of your unsecured debts through a 3 to a 5-year repayment plan. This shall include the value of the non-exempt property which you intend to keep. Any creditor who thinks they are not getting their due can file an objection to the plan, which may derail the entire bankruptcy process.

                Keeping a car which, you cannot afford is being foolish and stubborn. Chapter 13 lets you surrender any vehicle on which you cannot make timely payments and that will require huge loads of money for repair. You will reduce the debt burden by letting go of such a vehicle. The court also does not look kindly to people using funds in a misappropriate manner, paying for excessively high car payments instead of paying the creditors’ their dues.


                  *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 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.