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Category: Chapter 13 Bankruptcy

  • Save Your House with Chapter 13 Bankruptcy

    Save Your House with Chapter 13 Bankruptcy

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

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

    • Repay mortgage arrears

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

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

    • Make mortgage affordable

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

    • Get secured debts reduced

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

    • Contest foreclosure

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

    • Turn subsequent mortgages into unsecured debts

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


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

      *Do you own a home?

      Are you currently working?

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

    • Responsibilities when filing bankruptcy under Chapter 13

      Responsibilities when filing bankruptcy under Chapter 13

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

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

      What will I have to pay?

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

      • Administrative fee

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

      • Priority debts

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

      • Secured Debts

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

      • Unsecured Debts

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

      Things to note

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

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


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

        *Do you own a home?

        Are you currently working?

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

      • The Basics of Chapter 13 Bankruptcy Cramdown

        The Basics of Chapter 13 Bankruptcy Cramdown

        Chapter 13 bankruptcy allows you to reduce the principal balance on a debt to the value of the property in case of secured debt. This is known as cramdown and can help save your debt on real estate investment, car loan and some other properties. Dallas based bankruptcy law firm Recovery Law Group, inform that cramdown can be an asset to reduce the debt on certain secured loans. To know more about cramdown, contact expert bankruptcy lawyers at 888-297-6023 and discuss about your case.

        Secured debts are those assets against which the creditor has collateral. These include car loans and mortgages. Some secure debts can be reduced by cramdown, such as car loan, investment property mortgages or any other personal property (apart from real estate) like furnishings and household goods, etc. However, cramdown is not available on your principal place of residence.

        In case your vehicle is worth $5,000 but you owe $10,000 in the loan, you can ask for the cramdown of your loan to the value of the car through your Chapter 13 repayment plan. The remaining amount after cramdown is converted into an unsecured debt and treated in a similar fashion, i.e. discharged at the end of your repayment plan. Thus, you own your car after the end of your bankruptcy.

        Advantages of cramdown

        There are numerous advantages associated with the cramdown of the loan in Chapter 13 bankruptcy. You can reduce the interest rate and lower your monthly obligations by stretching the payment over a longer period. The interest rate paid to creditors depends on the bankruptcy court and can be lowered than the note rate, thereby reducing the payments you make.

        Restrictions

        Considering the advantages cramdown has for people filing for bankruptcy, it is expected to have a few restrictions to prevent people from reducing the repayment amount for recent purchases. These include:
        • 910-day rule
        For cramming down your car loan, the car must have been purchased a minimum of 910-days (nearly 2.5 years) prior to filing for bankruptcy. This is to prevent new vehicle owners from cramming down on their loan immediately after buying the vehicle.
        • One-year rule
        Like the 910-day rule for cars, this rule is for personal property. You can cramdown loans on household goods that have been purchased at least one year prior to bankruptcy is filed.
        • Investment property mortgages

        Any loans which are crammed down need to be paid within the time frame of the Chapter 13 repayment plan (3 to 5-years period). This is a practical problem for people who cannot afford to even pay then mortgage of crammed down loans in the specified period.


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

          *Do you own a home?

          Are you currently working?

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

        • Paying off Chapter 13 Debts Earlier

          Paying off Chapter 13 Debts Earlier

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

          Disposable income needs to be channelized to lenders

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

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

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

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

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

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

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

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

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

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


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

            *Do you own a home?

            Are you currently working?

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

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

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

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

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

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

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

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


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

              *Do you own a home?

              Are you currently working?

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

            • Impact of Chapter 13 on your credit score

              Impact of Chapter 13 on your credit score

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

              What is the choice of a lender?

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

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

              Credit score impact

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

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

              Availing credit after filing bankruptcy

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

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

              Credit score reporting corrections

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


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

                *Do you own a home?

                Are you currently working?

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

              • How to Determine Chapter 13 Bankruptcy Eligibility?

                How to Determine Chapter 13 Bankruptcy Eligibility?

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

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

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

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

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

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

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

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

                Benefits, flaws, and restrictions for Chapter 13

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

                Procedure for filing Chapter 13

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


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

                  *Do you own a home?

                  Are you currently working?

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

                • Chapter 13 Bankruptcy Cost and Effectiveness

                  Chapter 13 Bankruptcy Cost and Effectiveness

                  When you are struggling with debts, you are probably considering bankruptcy via Chapter 7 or Chapter 13. Once, after assessing different eligibility criterions, you lock upon Chapter 13, the next question is to determine how effective it is and what would be an estimated cost for the same. We will try to explore an estimate of some of the costs and effectiveness of the whole process using the survey results of the readers. If you have still not determined whether to go for Chapter 13 or Chapter 7, consider logging in to Recovery Law Group for information about eligibility and other salient features of each chapter to make a wiser decision. To start with let’s identify a range of all the costs associated with Chapter 13.

                  1. Cost of an attorney

                  The attorney cost can range from $1,500 to about $5,000. The survey shows a good chunk of people paying between $0 to $3,000. To be specific, 24% of readers confirm to have paid below $1,500 and 39% readers confirm to have paid between $1,500 to $3,000. This makes for 63% in the range of $0-$3,000. 30% people paid between $3,000- $5,000. While 7% of people ended paying more than $5,000. Depending on the complexity of the case, you are likely to end up in the $0-$3,000 range or $3,000-$5,000 range. In rare circumstances, you might end up paying above $5,000 as per the survey.

                  The cost of attorney also depends on various factors like an attorney, win percentage history, bankruptcy filing state, etc. Most of the attorneys usually charge a flat fee that includes most services a common bankruptcy case would need. An additional $310 on an average might have to be kept aside as filing fee. There are bankruptcy court rules and regulations or guidelines that control pricing for the services offered by the attorneys too. The range for attorney cost as per a few states can be listed as follows-

                  • Texas attorneys might charge you between $3,000-$3,825
                  • California attorneys might charge you between $3,300-$5,000
                  • Florida attorneys estimate ranges between $3,500 to $4,500
                  • Michigan would be between $2,600 to $3,650
                  • Finally, Virginia would be $4,000 to $5,100

                  What potential reasons could hike your attorney cost?

                  • If you are a sole proprietor and filing for bankruptcy under Chapter 13
                  • If your house is less worth when compared to the amount you owe. You might want to seek a release of debt for the amount in excess of the worth
                  • If you want to release a student loan or similar kind of priority or non-releasable loans
                  • If there is any suit involved along with bankruptcy

                  Chapter 13 payment plan completion survey

                  Chapter 13 bankruptcy consists of a payment plan which lasts for 3-5 years depending on the amount of debt and the disposable income. The survey about how many people ended up dismissing the payment plan before the stipulated duration and how many people ended up completing the payment plan shows interesting results leaving us not much to pick between them. While 48% of people ended up completing their payment plan tenure, 52% of people were successful in dismissing the case before the tenure actually ended. By this stat, there is a small majority of people who ended up stabilizing their financial condition and cleared of all dues before their payment plan concluded. This could be an encouraging start.

                  Time factor

                  Time is another important aspect of the bankruptcy filing. The tenure or duration of payment plan is known by all, however, the time consumed to get the plan approved and the formalities of bankruptcy court can only be figured out by the people’s feedback who have gone through the whole process. While a large chunk of people about 58% confirm the whole process taking less than 3 months, you can be rest assured that under most circumstances, the process should not take more than 6 months. Adding 32% of readers contributing to 4-6 months range, it is about 90% of people who have got their payment plan and other Chapter 13 bankruptcy procedure done in less than 6 months. Under rare circumstances would you take over 1 year as the probability based on survey results is mere 4%.

                  Satisfaction degree

                  After the whole process, the ultimate thing that matters is the satisfaction level. The survey has thrown up mixed results and it is difficult to assess how successful Chapter 13 has been for our readers. While only 40% of people say they were satisfied with the Chapter 13 results, 16% maintain a neutral approach and 44% people, on the other hand, were dissatisfied. It could be that the whole process is slightly frustrating and expensive to their liking or readers think they ended up paying most of their debts, difficult to analyze possible repercussions of this survey results.

                  If you are looking forward to a smooth Chapter 13 bankruptcy experience with consistent and professional support, do get in touch with us at +1 888-297-6203.


                    *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.

                  • Bankruptcy by Chapter 13 FAQs

                    Bankruptcy by Chapter 13 FAQs

                    Sometimes, the best way to address all queries is FAQs. By listing some potential doubts or questions and answering them in the best way possible can give enlighten people better. Chapter 13 bankruptcy one of the most popular bankruptcy code especially for people who had wished to safeguard their assets. By answering a few FAQs below, we try to enlighten you about most aspects of Chapter 13. To know more about bankruptcy, Chapters, and legal assistance, log on to Recovery Law Group.

                    1. How much debt has to be repaid if I file for Chapter 13 bankruptcy?

                    This is a very common question. The amount of debt to be paid is usually limited to the nonexempt assets in the case of Chapter 7. How much debt will be repaid under Chapter 13 can be a tricky question and not as straight forward as Chapter 7. Let’s list different type of debts and determine the approximate percentage you may have to pay off under Chapter 13-

                    • Fees

                    All types of fees, bankruptcy fees, trustee fees/commissions, attorney fees, etc., are to be paid off in full. Under most circumstances, 100% liability on these fees is applicable.

                    • Priority debts

                    These kinds of debts are determined by state and federal codes. These usually include child support payments, alimony, state / federal tax dues, wages/commissions owed to the employees (up to a threshold), contributions owed to an employment benefit fund, etc.

                    • Secured Debts

                    Secured debts are debts which are secured by collateral or an asset. Since secured debts usually have lien attached to it, it is important to pay off the debt in full in order to retain the asset.

                    • Unsecured Debts

                    Debts which have no collateral or asset attached are referred to as unsecured debts. It is a debt which is backed by the promise to pay back. This kind of debt is usually released or discharged during bankruptcy the most. In Chapter 7 bankruptcy, you are most likely to pay less than 10% of unsecured debts depending on the amount received from liquidating the surrendered or nonexempt assets. In the case of Chapter 13, the percentage might vary based on the portion of disposable income available after keeping for fees, priority and secured debts. One might end up paying no unsecured debts to about 100% of unsecured debts depending on the scenario.

                    1. What is the duration of the Chapter 13 payment plan?

                    The duration of Chapter 13 can be maximum up to 5 years. The tenure is usually determined based on the state / federal median. For income less than the median threshold, the tenure is limited to 3 years. For income above the median, the tenure can be 5 years. If you end up clearing all your debt in 4 years, that would be the duration of your program.

                    1. Can Chapter 13 prevent home foreclosure?

                    Chapter 13 is always a great option to protect secured or unsecured assets. For a home which is a secured asset and has a lien attached to it, Chapter 13 bankruptcy can definitely help. Firstly, once the bankruptcy is filed, the filer gets an automatic stay activated which prevents the mortgage lender to make any efforts to recover his/her debts. Secondly, you can create a payment plan and get some extra time to pay off all the arrear mortgage payments. Therefore, Chapter 13 bankruptcy can definitely help in preventing foreclosure of your home mortgage.

                    1. Can retirement benefits be eligible for creating payment’s plan under Chapter 13?

                    As long as there is income which results in some disposable income after getting rid of standard expenditures, it can be used as a source to fund the Chapter 13 payment plan. It is important to have some disposable income to be eligible for Chapter 13 apart from the debt thresholds.

                    1. IRS tax debt, how can Chapter 13 prove beneficial over Chapter 7?

                    There are some debts like the IRS tax debts that do not get released under Chapter 7. You lose your assets and still are liable for the tax debts and other non-releasable debts. Chapter 13 bankruptcy also does not result in the release of IRS tax debt, but, gives sufficient time and makes for paying off IRS tax debt as a priority. 100% of IRS tax debt has to be paid off in both scenarios Chapter 7 and Chapter 13. It is slightly easier when adjusted in Chapter 13 payment’s plan.

                    1. Whom to contact for best assistance?

                    Dial +1 888-297-6203 for expert assistance and solutions for all your bankruptcy-related issues.


                      *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 help prevent Car Repossession?

                      Can Chapter 13 Bankruptcy help prevent Car Repossession?

                      One of the major concern people have when they file for bankruptcy is what will happen to their car and house – will they be safe from collection actions or not? Lawyers of Dallas based bankruptcy law firm Recovery Law Group, inform that when an individual files for bankruptcy, whether Chapter 7 or Chapter 13, the court orders for an automatic stay which prevents any collection attempts including foreclosure, repossession and threatening phone calls. However, any criminal proceedings like visitation proceedings or child custody and even some eviction proceedings continue as per the state law.

                      Chapter 13 automatic stay and car repossession

                      The automatic stay is enforced when you file for bankruptcy. It can help with car repossession, depending on what the current situation is:

                      • Your lender has already repossessed your car

                      In case the lender repossessed your car just a few days before you filed for Chapter 13 bankruptcy, there are chances you might get it back. Your Chapter 13 repayment plan needs to show that you can make payments on not just past arrears but also continue making regular monthly payments towards your car loan. In case you face a similar situation, consult with expert bankruptcy lawyers at 888-297-6023.

                      • You have the car when you file for bankruptcy

                      If your car is not repossessed yet, the automatic stay can prevent it to take place in the near future (till your Chapter 13 repayment plan is approved by the bankruptcy judge). If you include any missed car loan payments in the repayment plan and stay current on your further payments, the lender cannot repossess your vehicle. However, you need to make payments from the time you file for bankruptcy till the proposed repayment plan is approved to have “adequate protection” against any repossession action. This amount is generally equal to your car payment.

                      Automatic stay might not protect you if you file for Chapter 13 bankruptcy shortly after a previously filed Chapter 13 bankruptcy case was dismissed by the court. In case you do so, the automatic stay lasts only for 30 days unless you file and win the motion for additional time to prevent repossession. In case you reject a personal property lease (for car, any equipment, etc.), the automatic stay will lift on the rejection date. Alternately, a creditor can ask for the lifting of automatic stay if they can prove that they will lose money in case you stop making payments on your car loan.

                      Other benefits of Chapter 13 bankruptcy

                      Inability to pay dues often causes people to accumulate huge debts, resulting in a situation where bankruptcy is the only answer. Chapter 13 can help you manage your secured debts. In case your debt is more than what the vehicle is worth, you might be able to get a car cramdown. This is a process through which you can reduce the loan balance on the property (car, boat, storage building, vacation home, etc.) to the current value if it meets certain conditions. Additionally, you could lower the interest rate so that the payments are more affordable. Any amount which remains is treated as unsecured debt and is paid after secured and priority debts. Cramdown can be availed on several secured loans except for the mortgage on your principal residence or any recently purchased item.

                      You cannot use cramdown on property purchased recently. Vehicle loan taken 910 days prior to bankruptcy filing will not be reduced using this method. However, you can cramdown car title loans which were not used to purchase vehicle i.e. you used the car as collateral to finance another purchase, even if it was taken within the 910-day period. Cramdown cannot help you reduce the balance and/or interest rate in case of a dismissed Chapter 13 bankruptcy Dallas. In such a case, the loan regains its original terms and the creditor has rights to repossess the property if you are unable to pay the amount due at the interest rate you agreed to.


                        *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.