Get Foreclosure Help

Category: Chapter 13 Bankruptcy

  • What is the “Best Effort” Requirement in Chapter 13 Bankruptcy?

    What is the “Best Effort” Requirement in Chapter 13 Bankruptcy?

    Individuals who cannot qualify for Chapter 7 bankruptcy, have the option of filing for bankruptcy under Chapter 13, where a repayment plan is made to pay off your creditors. According to Los Angeles based bankruptcy law firm Recovery Law Group, confirmation of the repayment plan takes place after you show your “best efforts” to pay back your creditors. This is also known as the disposable income test, wherein your disposable income will be used to clear your dues.

    Filing of a repayment plan in case of Chapter 13 bankruptcy is followed with its review by the bankruptcy trustee to ensure that it complies with bankruptcy laws. The repayment plan needs to be approved by the court before it is finalized. For that to take place, you need to prove that you will use your best efforts to repay your unsecured creditors using your disposable income. Any amount which remains after deduction of allowed living expenses and mandatory payments (secured and priority debts) is termed as disposable income.

    Debts are classified into three types:

    • Secured debts – collateral exists against such debts; e.g. car payment or mortgage.
    • Priority debts – these debts need to be paid, no matter what; e.g. tax debts and domestic support obligations.
    • Unsecured debts – these are generally considered non priority debts; e.g. credit card and medical bills, personal loans.

    How non priority unsecured creditors are paid using disposable income in Chapter 13 repayment plan?

    While filing forms for Chapter 13 bankruptcy, you are required to provide your average monthly income for a 6-month period prior to a bankruptcy filing. This is compared to the average income against the state median income for a household of the same size. The amount you end up paying your non priority unsecured creditors depends on whether your income is above the state median or below it and on how much significant property you own.

    • If income is below the state median

    In this case, you do not need to calculate your monthly disposable income. The payment plan is based on your budget and is usually approved by the bankruptcy court, even if you pay little or nothing to nonpriority unsecured creditors. In this case, the plan exists for 3 years only.

    Example. If a single person makes $40,000 a year and the median state income for a single household in that state is $45,000, then the individual does not need to calculate the disposable income. In fact, they may not pay anything to nonpriority unsecured creditors. Such a case is known as “zero percent plan.”

    • If income is above the state median

    Your disposable income will be calculated by deducting these expenses from your income – living expenses (as per local and national standards), secured debts, and priority debts. The amount which remains is the minimum payment which needs to be made to unsecured creditors every month for a period of 5 years.

    Example. A married couple with a combined annual income of $ 95,000 and a state median income of $60,000 for a household of two must come up with a repayment plan by calculating their disposable income. If the monthly disposable income comes to $600, they need to pay an amount of $36,000 ($600 multiplied by 60 months) to their nonpriority unsecured creditors as part of their Chapter 13 repayment plan.

    • If bankruptcy filer has significant property

    Prior to confirmation of the repayment plan, the judge also considers whether your creditors are getting paid as much in Chapter 13 as they would in case of Chapter 7. In the case of Chapter 7, all non-exempt assets are sold off to pay creditors (priority and then nonpriority). However, Chapter 13 allows you to keep non-exempt property, but it should not be at the loss of creditors. To give justice to the creditors, you must pay the greater of- either the total amount of priority debts plus your disposable income or the value of the non-exempt property.

    Example: An individual does not make much money but has significant property. Though the disposable income is $300 only, the ancestral property has non-exempt equity worth $165,000 and there exists a tax debt of $6,000 too. In this case, the debtor must pay either $24,000 ($6,000 priority debt plus monthly disposable income of $300 times 60), or $165,000 (value of non-exempt property which comes to $2,750 per month for 60 months). Since the income is relatively low, the debtor will not be able to support this Chapter 13 repayment plan.

    Bankruptcy can be quite confusing. It is important to consult with lawyers if you are thinking of filing for bankruptcy. Call 888-297-6023 to know more about your case.


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

      *Do you own a home?

      Are you currently working?

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

    • What Happens in a Chapter 13 Confirmation Hearing?

      What Happens in a Chapter 13 Confirmation Hearing?

      Chapter 13 bankruptcy involves the creation of a repayment plan. In this case, all nonpriority unsecured debtors are paid over a period of 3 to 5-years, some portion of the debtor’s disposable income to settle their dues. A bankruptcy trustee is assigned by the court to oversee the proceedings and to distribute the dues as per the repayment plan. However, the proposed plan gets confirmed only after the approval of the judge at the Chapter 13 confirmation hearing. However, bankruptcy lawyers of Dallas based law firm Recovery Law Group inform that there might be objections to the plan.

      Who can object to the repayment plan?

      30 days after the filing of bankruptcy papers, a meeting of creditors (known as 341 meetings) takes place. In this, all interested parties (debtor, his/her attorney, bankruptcy trustee, and creditors) participate and discuss the proposed repayment plan. They can review the said plan and even file an objection to it (which is followed up in the confirmation hearing).

      The bankruptcy trustee needs to review the plan to check for compliance with bankruptcy laws. Apart from this, they are also required to check your income and expense documents to determine that the creditors are getting adequate repayment. In case you are paying less (than you can afford) to your creditors or your plan is not economically feasible, the bankruptcy trustee can object to the plan.

      Though automatic stay prevents all collection actions, it doesn’t necessarily put an end to the misfortune of the debtor. In case a creditor is dissatisfied with your plan, they can object to anything including bankruptcy trustee’s proposed action, any claim filed by the debtor or the position taken by the judge. Some common reasons for objections in a bankruptcy case include –

      • Expenses claimed by the debtor on Schedule J;
      • Exempted property listed by the debtor on Schedule C;
      • Proposed repayment amount by the debtor;
      • Bankruptcy trustee’s stance of abandoning debtor’s property instead of selling it;
      • Discharging of a specific debt or an uncollectible claim filed by another creditor;
      • Fees demanded by any professional appointed by the court or the debtor’s lawyer.

      Type of objections to the repayment plan

      Amongst the various objections raised against those against discharge against any specific debt or the general discharge hurt debtor the most.

      To file for general discharge objection, the creditor or trustee needs to file adversary lawsuit within 60 days of the date of the 341 meetings. To get a discharge dismissed, they also need to prove that any of the following acts took place during or before the bankruptcy case:

      • Debtor defrauded a creditor;
      • Either destroyed or lost necessary records;
      • Hid, transferred or destroyed property which was part of the bankruptcy estate;
      • Was unable to explain the loss of an asset;
      • Perjured himself/herself

      In case discharge is denied, the debtor remains liable for the debts after the dismissal of the bankruptcy case.

      Every creditor is fending for themselves in a bankruptcy case, therefore it is not uncommon to find creditors objecting to discharge of specific debts during adversary proceedings. In case a general discharge is granted, then all nonpriority unsecured debts will be discharged except for that which was objected against. This leaves the debtor’s resources available for the creditor after the end of the bankruptcy case. A certain debt may be declared non-dischargeable if:

      • If you forgot to mention it in your bankruptcy papers;
      • If it was due to getting property or money by fraud;
      • If it was done with malicious intent;
      • If it was due to embezzlement or larceny;
      • If it is a case of presumptive fraud (credit card charges for luxuries within 6 months prior to bankruptcy filing).

      Confirmation hearing details

      The confirmation hearing can be scheduled anytime within 45 days of the 341 meetings of creditors. Objections to the plan need to be written and filed after creditors meeting. If there are no objections, a confirmation order needs to be submitted. In case there are objections to the plan, your attorney can represent and argue on your behalf (unless the judge specifically asks your presence). During the hearing, bankruptcy debtor and all objecting parties can argue about the merits of their plan. If the judge has any questions regarding the plan, they might seek clarification. Time is given by the judge to settle the matter amicably, if not, an evidentiary hearing is scheduled.

      It is better to be prepared for any eventuality. Call 888-297-6023 to speak with experienced bankruptcy lawyers Dallas about how to get your bankruptcy 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.

      • Difference Between Chapter 7 and Chapter 13 Bankruptcy

        Difference Between Chapter 7 and Chapter 13 Bankruptcy

        Individuals can file for bankruptcy under chapter 7 or chapter 13. There are differences in the way these two chapters function. Bankruptcy attorneys of Dallas based law firm Recovery Law Group, highlight some of the common differences between the two chapters. This is essential for people to know which chapter would work best in their situation.

        Chapter 7 Bankruptcy

        This is also known as liquidation bankruptcy and is used to wipe out unsecured debts like credit card and medical bills. People whose income is less than the state median can file under this chapter. Filing for bankruptcy ensures that any collection actions like wage garnishment etc. are put on hold due to the automatic stay. The bankruptcy filer’s property is assessed and divided into the exempted and non-exempt property. The non-exempt property is used to pay back your creditors. In case there are no non-exempt assets, the creditors get nothing. This type of bankruptcy can also help people whose discharged debts are more than the value of the non-exempt property sold. Also, the trustee can use the proceeds of non-exempt property sale to clear non-dischargeable debts like income tax or alimony support.

        Chapter 13 Bankruptcy

        People who fail to qualify for chapter 7 bankruptcy have the option of filing for chapter 13 bankruptcy California . This bankruptcy chapter is also known as the wage earners plan and is for those debtors who have a regular income. The bankruptcy filer’s disposable income, assets, and debts are considered to come up with a repayment plan through which a portion of the debts is paid off every month for a period of 3 to 5 years. This chapter helps you catch up on any mortgage payments you missed, or completely get rid of unsecured junior liens from your home.

        You also get to keep all your property including non-exempt ones after paying unsecured creditors, an amount equal to the value of non-exempt property. You can payback all or some portion of your debts through the repayment plan. This chapter can help people get debt relief, prevent wage garnishment, foreclosure, litigation against them, or lower credit card payments. People can pay off their non-dischargeable debts like child support arrears over a period of 3 to 5 years and catch up on missed car or house payments to keep their property.

        In case you are considering filing for bankruptcy and are confused which chapter will work best for you, you can call 888-297-6023 to get free bankruptcy consultation. Here are some key differences between the 2 chapters:

        Chapter 7 Chapter 13
        Type of Bankruptcy Liquidation Reorganization
        Who can file? Individuals and business entities Only for individuals and sole proprietors
        Eligibility criteria Disposable income low should pass the means test Unsecured debt should not exceed $419,275 and secured debt should not be more than $1,257,850
        Timing of discharge Usually 3-4 months On completion of the repayment plan (3-5 years)
        Fate of property Non-exempt property is sold off by the trustee to pay creditors Can keep all property but pay an amount equal to the non-exempt property to unsecured creditors
        Is lien stripping allowed? No Yes, if the requirements are met
        Is principal loan balance on secured debts reduced? Yes, in case of tangible personal property only Yes, if all requirements are met
        Benefits Quick discharge of qualifying debts Can keep all property, catch up on missed payments (car, mortgage, and other non-dischargeable priority debts
        Drawbacks Non-exempt property is sold off by trustee; cannot catch up on missed payments to prevent repossession or foreclosure Continue making payments to the trustee as per repayment plan for 3-5 years duration; might have to pay back some general unsecured debts

         


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

          *Do you own a home?

          Are you currently working?

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

        • What is Chapter 13 Debt Release?

          What is Chapter 13 Debt Release?

          Bankruptcy is sometimes inevitable. It is not one of the most favorable situations to be in. But it is important to make the right moves to be able to come out of bankruptcy and to evade the creditor’s torture. When thinking or learning about bankruptcy, Chapter 7 and Chapter 13 discussions are very common. Chapter 13 is a better alternative than Chapter 7 in most cases. In case you need to determine which is best for you and why; do not hesitate to log on to Recovery Law Group  to gain a deeper insight.

          What is Chapter 13 bankruptcy plan?

          The best part of the Chapter 13 payment plan is that you do not have to do away with all the assets but instead you find out the best way to payout your debts. Unlike Chapter 7 arrangement, this plan is much more reasonable and practical. Based on the debt type, you make an agreement with your lenders on a payment schedule based on your disposable income. The debt is consolidated, and a part of the debt is released once you make regular monthly payments as per the Chapter 13 payment plan for a period of 3-5 years as agreed by the lenders.

          How to make a payment plan?

          The tenure is the most important aspect of the payment plan. The tenure is decided by the court on the basis of your average income in the recent 6-9 months. The income can be from any source passive, active, consistent, inconsistent, social security or retirement benefits also. The tenure of 3 years arrives if the average income then realized, is lower than the state median. To get a fair idea of the state median, California state had a median of about $52,000 in the 2017s for an individual and about $80,000 for a family of four members. If your average income before filing bankruptcy exceeds the state median, the tenure will be for 5 years.

          The payment plan will expire before three or five years only if you clear all your outstanding dues in full. The next step is to determine your minimum due. As per the Chapter 13 bankruptcy plan, the secured debts are prioritized and need to be paid in full. Other priority debts may include alimony, taxes, child support, mortgage interest, etc. These kinds of debts shall dominate the bulk of the minimum due payments. Apart from these, certain fees like attorney, filing and percentage fee for a trustee, etc., also need to be paid out fully.

          How to calculate your disposable income?

          If your average income in the last 6-9 months is below the state median, the unsecured debts might get released completely. This will hurt your credit score but your minimum due will constitute minimum due towards the priority debts and the secured ones. There are possibilities for loan trimming even for the secured debts, especially for the high depreciating assets like an automobile or similar assets. If your average income is over the state median, the disposable income has to be directed towards the unsecured debts. The disposable income is lower of 15% of the average income or the calculated disposable income.

          The calculation of disposable income is straight forward. The state and federal standards for all basic amenities have been provided and one can deduct only the standard amount irrespective of the actual expenditure for determining disposable income. The difference between your average income and the standard deductions will give you your disposable income. For instances, in Los Angeles, the cap for transportation cost is $189, if you do not own/use your own vehicle. It is $300 as an operating cost for people using their own cars. Similarly, the standard for a mortgage in case of a family of four is around $3,000. Food, clothing and other basic need expenses are also capped to about $650 as per federal standards. These are rough monthly standards, which are not the latest but give you a rough idea of what your disposable income could be. For more information or for any calculation help do not hesitate to reach out on +1 (888) 297 6203.

          Getting your Chapter 13 payment plan approved

          The bankruptcy court has to approve the proposed payment plan. Hence, it is important to put forward a practical plan forward that caters to best self-interest as well as the interest of the lenders. If the plan is not confirmed or approved, it holds no value. The bankruptcy trustee and lenders can object or force modifications in the plan if they are not convinced or satisfied. Automobile lenders or mortgage lenders are two prominent objection parties when putting forward the payment plan in the court. The bankruptcy trustee emphasizes on following of rules and will try to divert as much funds possible to the lenders during the process. So, if your plan satisfies your automobile and mortgage lender as well as compliant with the rules, it has a very high probability of getting approved.

          How to avail Chapter 13 release of unsecured debt?

          The bankruptcy court has certain guidelines in place for releasing an unsecured debt and it is not so straightforward. You need to complete all the payments, still be current on support debts like alimony, child support, etc., and also complete a financial management course that shall help you manage finances better and not be stranded here again. Additionally, you should have also not received a discharge of your debts in the recent 2 years in order to be eligible for the release of unsecured debt. If you comply with all these, the court shall release the unsecured debts and the lenders shall no longer be able to pursue you for their debts.

          An important point however to be noted is that some debts like criminal fines, litigations, lawsuits, child support, student loan, compensation for injury or similar debts cannot be released by the bankruptcy court. These are priority debts and need to be paid off without deviation. For Chapter 13 cases, an attorney is a must and the best in business is just a call away. Dial  +1 (888) 297 6203 now for the best solution to your bankruptcy problem!


            *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.

          • Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

            Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

            One of the major benefits of filing for bankruptcy is the automatic stay. From the date of the bankruptcy filing, an automatic stay is enforced which puts a hold on all collection actions including threatening phone calls and messages, repossession, and foreclosure. This has to be abided by all parties concerned and failure to do so can result in a legal battle as was seen in case of Caridad Hileman. The California resident filed for Chapter 13 bankruptcy but her case was dismissed. She didn’t want to lose her house to foreclosure, hence she filed again after a few months.

            Since Caridad filed for bankruptcy a second time within a year, the automatic stay could last only for 30 days, as per 11 U.S.C. § 362(c)(3). The automatic stay can be extended but she was a day late to file for an extension and thus the automatic stay expired. Despite everything, Caridad continued making payments for her home till the bankruptcy plan was officially confirmed where a major part was made up for mortgage payments.

            She was supposed to pay court-mandated payments for the entire duration of her bankruptcy and continue making payments till she cleared the dues. Since she didn’t want her bankruptcy case to be dismissed again, Caridad continued making payments, but was shocked to find that the bank refused payments just one month after confirmation of her repayment plan! Despite the court’s confirmation of the Chapter 13 plan, the bank proceeded with foreclosure. Despite Caridad making payments, the bank argued that since automatic stay had expired, they have the rights to foreclose.

            Can lawyers help in such cases?

            Forced with no other choice, Caridad filed a petition in the court against the bank. The court ruled in her favor as a confirmed plan is binding to both the debtor and the creditor. Just like debtor cannot refuse to make payments as per the repayment plan, the creditors also cannot foreclose or repossess the property. The creditors can object or reject a repayment plan while it is under consideration by the court. However, once it is confirmed, they have to abide by it, even if it is done despite their objections. Since the bank had not filed any objection against the plan and also not appealed to it, they were bound by the plan and had to continue accepting the mortgage payments as well as abandon foreclosure proceedings.

            According to Los Angeles based bankruptcy law firm Recovery Law Group, foreclosure can only take place if the bankruptcy case is dismissed. This takes place if the debtor has defaulted on making payments. In case of extension motion was filed on time by Caridad, she would not have to have to fight the case against the bank in court. Following the plan is extremely essential if you wish to protect your assets from repossession or foreclosure. In case you are facing problems managing your finances and find dues accumulating, it is time to consult a bankruptcy attorney. Call 888-297-6023 to have a free consultation regarding your case.


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

              *Do you own a home?

              Are you currently working?

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

            • Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

              Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

              Bankruptcy is confusing and terrifying to most common people. Though there are benefits associated with it like automatic stay and discharge of unsecured debts at the end of the bankruptcy, sometimes, a bankruptcy case might be ‘hijacked’ by another debtor who wishes to take advantage of your bankruptcy case and the subsequent automatic stay. Automatic stay helps in putting arrest to all collection actions by creditors including repossession, foreclosure, threatening emails, phone calls, etc. However, Los Angeles bankruptcy lawyers https://bankruptcy.staging.recoverylawgroup.com/ inform, creditors may request a relief from the automatic stay clause. This happens in case debtor “participated in a scheme to delay, hinder, or defraud creditors.” When such a case happens, the debtor is often caught unaware and generally clueless about their options.

              What is property dumping?

              Many people are unaware that any such term exists. Some people piggyback a ride on others’ bankruptcy cases, availing the benefit of the automatic stay to protect their property. This happened with Dana when she filed for bankruptcy. A local bank filed for a motion alleging that she had defrauded and failed to declare her assets and hide them so that the bank couldn’t make collections on a house in Ventura County. Unfortunately for Dana, that house didn’t belong to her and neither did she have any knowledge of the occupants. But her bankruptcy case was about to be dismissed because of some property whose existence was completely unknown to her.

              The original owner of the property in concern here was another California resident, Angelica who was nearly $40,000 delinquent on her mortgage. She used to check public bankruptcy records to find a person who had recently filed for bankruptcy. She would then record a property transfer deed transferring her house to a bankruptcy filer. The automatic stay benefit accorded to her victim will prevent creditors from foreclosing on her home and protect it. By the time the banks asked for lifting the automatic stay, Angelica made another phony transfer of property to some other person.

              Often there is no prior connection between the victims of property dumping and the perpetrator. In the above-mentioned case, Angelica used to doctor the records in such a manner that the transfer of the house appeared to occur prior to a bankruptcy filing. The process granted her house the benefit of automatic stay till banks filed for relief and the process would be repeated. In Dana’s case, since she was not the owner of the property neither had any idea about it, she did not object for any relief from the stay. The records mentioned Angelica as the owner of the property and her property dumping or hijacking plan was highlighted. Hiring an experienced attorney worked well for Dana’s case. It always makes sense to hire experienced attorneys for bankruptcy cases as the issue is quite complex without any frauds happening. In case you are looking for a consult for your bankruptcy case, call 888-297-6023 to speak with expert bankruptcy lawyers.


                *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.

              • Debt Limits under Chapter 13 Increased; All you need to know

                Debt Limits under Chapter 13 Increased; All you need to know

                Chapter 13 bankruptcy is distinguished from Chapter 7 bankruptcy norms in terms of complexity. Chapter 13 is much simpler and involves less calculation of various factors like a net of income/expenses, debt, etc. But there are some other factors to be considered for Chapter 13 eligibility. These factors can be listed as follows-

                • The chapter is applicable only for individuals hence, business or trusts won’t qualify
                • The individual should not have a recent disqualification
                • Should be able to demonstrate strong sources of money for making the payments for the plans
                • Should have debts within the Chapter 13 debt limits

                If you comply with all the factors above, Chapter 13 is more beneficial to you than Chapter 7. The primary reason for this being the arrangement that allows a debtor to pay off debts as per his/her from the disposable income. Some of the tests under Chapter 7 like the ‘means test’ almost creates an unpractical and impossible plan of paying off debts, particularly the unsecured ones. The debtor’s financial status and ability are at the forefront in Chapter 13, which certainly makes it the best option over Chapter 7.

                Do you qualify for the Chapter 13 debt limits?

                As discussed earlier under the eligibility parameters. There is a certain cap for the debt types, below which all individuals qualify for Chapter 13. That cap or limit can be split as below-

                • The limit for Secured debts is $1,257,850 as per the newest debt limit upgrades versus the earlier cap of $1,184,200. If you evaluated your eligibility for Chapter 13 a few months back and thought, you were just over the cap, this hike of about $70k in the cap will help you be eligible now.
                • The unsecured debts should be below $419,275, which has been hiked by about $25k from the previous cap of $394,725.

                These limits are usually changed once in three years. So, if you are not eligible for Chapter 13 for breaching the debt limits, you might well not be for the next three years, until and unless your debts reverse back below the caps. Reach out to the best at Recovery Law Group for more insight on your eligibility and other viable options.

                How does change in limit cap impact an individual?

                On the eyes, the limit mentioned above is something which not many will breach. However, the biggest barrier is the home mortgage for many especially for those residing in the expensive states like CA, NY, etc. The mortgage loan by itself could exceed the cap of $1,257,850. The second type of people who could be disqualified are students or newly graduated individuals. If you are carrying an education loan, then there is a high probability that you might exceed the $419,275 cap. As per the latest report, over 6 million students in the US carry over $200,000 of loans. It’s no where near the cap, but many students might be breaching that cap easily.

                However, there is some relief for the students. One of the courts recently made a judgment favoring the students. The court said that provided the individual meets all other criterions and is upheld only because of an education loan, then the individual could be eligible for Chapter 13. So, if education loans are troubling you, there can be a positive solution around!

                What is not included in the Chapter 13 debt limits?

                There are certain types of loans/grants which are not included when calculating the debt limit under Chapter 13. Contingent debts are excluded from the calculation. Contingent debts can be described as a form of liability which depends on a future event or a scenario. The most suitable example for this is if you act as a guarantor on a business/trust loan, you are not liable unless and until the business/trust stops paying the installments or defaults. The same scenario is not applicable for the co-signed debt. Co-sign debt consists of two borrowers, one primary and the other as co-signer. Both usually share equal liability and hence, it has to be included when calculating the net debt for checking eligibility.

                The non-liquidated debt is also not included for Chapter 13 calculation. A non-liquidated debt is a debt which has no fixed amount, or the liability cannot be realized appropriately at the present moment. The best example for such debt could be a pending lawsuit. The amount of liability that lawsuit can build upon cannot be accurately determined and hence, it is excluded from the debt calculation for Chapter 13 purposes.

                What if you still are not eligible for Chapter 13?

                If you do not qualify for Chapter 13, Chapter 11 could be the last hope. However, Chapter 11 is expensive and the whole procedure is very tedious, complicated and long. Consult the best no matter where you are Los Angeles or Dallas, +1 (888) 2976203 is your answer. Get all your questions and doubts addressed right 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.

                • Get to know everything about Chapter 13 Bankruptcy through Dallas Attorneys

                  Get to know everything about Chapter 13 Bankruptcy through Dallas Attorneys

                  Finding yourself on sticky financial wicket can be traumatic for many people. Often accumulated debts make a person unsure of what to do next. As per Dallas bankruptcy lawyers’ Recovery Law Group bankruptcy is one of the best options available. However, filing for bankruptcy requires you to choose from a number of Chapters, each specifically designed to help people get over financial problems. In case, you are unsure which chapter suits your case, Chapter 13 might be your best chance for starting afresh. Chapter 13 bankruptcy works best for people with reasonably sufficient disposable income which can be used to make reasonable monthly payments with respect to their debts.

                  Why opt for Chapter 13 bankruptcy?

                  Unlike Chapter 7 bankruptcy, where unsecured debts are liquidated, in Chapter 13, the debtor can restructure the accumulated debt into manageable payments over a longer period of time (3-5 years’). However, not everyone can opt for this Reorganisation Bankruptcy. To qualify for this chapter you should have a regular income and the wages must be adequate enough for the repayment plan. The various benefits of filing for Chapter 13 bankruptcy include:

                  • You can repay debts in 3-5 years;
                  • Can put an end to annoying creditor actions;
                  • You might be able to get rid of 2nd or 3rd mortgage;
                  • You might be able to save your home from foreclosure;
                  • Get a fresh financial start after you complete the repayment plan.

                  In case you are unsure whether Chapter 13 is the best chance for you to get out of financial problems, contact expert bankruptcy attorneys at 888-297-6023 to find out more.

                  Using Chapter 13 Bankruptcy to stop foreclosure

                  Since debts are reorganized in Chapter 13, it makes it easier for people to avoid repossession or/and foreclosure. If you have fallen behind on making payments, and are risking foreclosure, Chapter 13 is an excellent way to take control of the situation. Filing for bankruptcy puts an automatic stay in place due to which any foreclosure and debt collection is put on hold. However, it is essential that you follow the Chapter 13 bankruptcy timeline to avail the entire benefits:

                  1. Take a mandatory credit counseling course within 180 days of filing

                  Every Chapter 13 bankruptcy case requires completion of an approved credit counseling course prior to filing. The course should be done from a U.S. Trustee’s Office approved agency. The course is beneficial in making you aware of your situation as well as ensure that you have sufficient income to pay back creditors over the stipulated timeframe. The fee of the course is $25-$35, but in case you cannot afford it, it can be waived off.

                  1. Automatic stay benefit

                  Once you submit forms for your Chapter 13 bankruptcy and the filing fee is paid, a court order for automatic stay is issued by the court. This puts a stop, over all kind of collection efforts like repossession, foreclosure, etc. being made by debt collectors. However, if you have previously filed for bankruptcy within the last year, you might not get automatic stay security or it might be limited.

                  1. Submit a repayment plan for court approval

                  You and your bankruptcy attorney can come up with a reasonable repayment plan as per your income. This is done by carefully assessing your finances as well as taking the credit counseling course. Once the repayment plan is devised, it is sent to the bankruptcy court for approval.

                  1. Creditor meeting within 20-40 days of filing

                  The creditor meeting is a hearing which is attended by your bankruptcy trustee, attorney, and any creditors wishing to attend the same. The purpose of the meeting is to discuss your Chapter 13 bankruptcy. Many times, creditors do not appear for the meeting. The information is reviewed and questions answered by your attorney.

                  1. Confirmation hearing 20-40 days after creditor meeting

                  The proposed repayment plan is reviewed by the bankruptcy court and confirmed if it meets all requirements like –

                  • Being feasible (enough income to pay creditors as per proposal)
                  • Made in good faith and not to manipulate the bankruptcy process
                  • Conforming to bankruptcy laws (precedence to creditors and priority debts)

                  6. Secondary counseling after the creditors meeting

                  During the bankruptcy process, debtors filing for Chapter 13 bankruptcy are required to finish another credit counseling course. This course helps you develop a habit of living on a budget and getting you ready for life after bankruptcy.

                  1. Repay debt every month for 3-5 years

                  Repayment plans are effective immediately and you are required to make monthly payments as per it over a course of three to five years. In case, there is any change in your finances due to which you need to modify your repayment plan or change the chapter of bankruptcy (from Chapter 13 to Chapter 7), you can consult with an expert bankruptcy attorney.

                  1. Get remaining debts discharged after your bankruptcy ends

                  During your repayment plan, most of your debts are paid off. However, any debt that remains after the repayment plan is over, is generally discharged. It is important to remember that some debts like taxes, child support, etc. cannot be discharged, though most unsecured debts are eliminated after Chapter 13 bankruptcy.

                  Eligibility for Chapter 13 Bankruptcy

                  Whereas Chapter 7 bankruptcy requires you to pass a “means test”, Chapter 3 does not have such a requirement. This does not mean that there aren’t any eligibility criteria. It is important to show the bankruptcy court that you earn sufficient income that you can make your repayment obligations after making necessary payments for secured debts like car or mortgage payments. The court allows you to use income obtained through:

                  • Profits from self-employment
                  • Income from your job
                  • Any benefits (disability, social security, workers’ compensation, unemployment, )
                  • Spousal or child support
                  • Earning from property sales

                  You are also required to meet debt limit requirements as part for Chapter 13 bankruptcy eligibility. The secured and unsecured debts, which keep changing every year, cannot exceed a definite amount. Non-payment of secured debts which are linked to property like house or car can lead to creditors taking the property back. Unsecured debts (credit card and medical bills), on the other hand, are not attached to any property. In case your debt amounts cross the specific limit set by law, you might have to consider another type of bankruptcy (possibly Chapter 11).

                  Chapter 13 bankruptcy is available for individuals and not businesses. An individual with a business debt in his/her name can include the said debt in Chapter 13 bankruptcy as business-related debts can also be reorganized in this bankruptcy chapter. In case you are an individual who has been going through a bad financial phase and are looking for a way to get a fresh start, consult expert bankruptcy lawyers to seek a way out through this phase.


                    *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 is The Difference between Chapter 7 and Chapter 13 Bankruptcy?

                    What is The Difference between Chapter 7 and Chapter 13 Bankruptcy?

                    Falling behind on payments can have drastic results. You are almost never able to come out of the vicious cycle of dues and payments. Bankruptcy can help you come out of grave financial situations. However, it can be quite confusing as there are a number of chapters under which individuals or organizations can file for bankruptcy. It is therefore important to consult a bankruptcy attorney to help you, who can guide which chapter will provide you better options. Bankruptcy lawyers, such as those of Los Angeles based law firm Recovery Law Group can help you understand the difference between Chapter 13 and Chapter 7 bankruptcy.

                    Advantages of Chapter 7

                    This type of bankruptcy is known as straight bankruptcy and helps in discharging of any unsecured debts. The benefits include –

                    • All unsecured debt including credit card bills, utility bills, medical bills or personal loans and any advances on pay-cheques are eliminated.
                    • You are able to get a faster discharge (between 3-4 months) from the bankruptcy
                    • You are able to keep your assets as per state exemption laws.
                    • You can avoid monthly payments as your debts are discharged.

                    Considering the advantages of Chapter 7 bankruptcy, you can consult a bankruptcy attorney and weigh the pros and cons before filing under it.

                    Advantages of Chapter 13

                    In this type of bankruptcy, your debts are consolidated and restructured so that you can make monthly payments over a 3-5 year period.

                    • All secured and unsecured debt is consolidated.
                    • You can delay as well as avoid foreclosure.
                    • Creditor harassment is stopped.
                    • Co-signers of any debt are protected.
                    • You get a chance to show your creditors that you can make timely payments.

                    These monthly payments to bankruptcy trustee go a long way in rebuilding your credit. Any unsecured debts remaining after repayment plan are discharged.

                    It is important to consult adept bankruptcy lawyers to understand the difference between different bankruptcy chapters as well as finding out the one which is best suited to your situation.


                      *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.

                    • Know the Chapter 13 Payment Plan

                      Know the Chapter 13 Payment Plan

                      The ‘Wage Earner Bankruptcy’ or Chapter 13 bankruptcy, is designed for those individuals who seek to repay their debts over a period of time. They have the ability to execute the repayment with a designated plan and hence seek the protection using the Chapter 13 of the U.S. Bankruptcy Code.

                      These individuals or debtors are

                      • The kind of people who are owners of properties that cannot be exempted under Chapter 7
                      • The ones who possess mortgage amounts, past dues or car loans and seek towards the repayment over time without being enforced to foreclose
                      • The type of folks who have debts from student loans which cannot be discharged using Chapter 7 bankruptcy
                      • The people who have the calculated sufficient disposable income, as per the bankruptcy laws, to repay their debts over a finite period of time (three or five years)

                      So, if the debtor complies with one of the above conditions, he needs to have a concrete payment plan that is also approved by his creditors. The major difference or benefit that a debtor may get from Chapter 13 bankruptcy as against debt consolidation is that he can get himself protected from credit harassments, late fees and continued interest on his debts. Through this protection of the U.S. Bankruptcy Code, the debtor catches up with all of his mortgages, car loans, and rental dues.

                      Formulating the appropriate payment plan can be done in conjunction with a bank attorney from an acclaimed law firm such as Recovery Law Group. They serve the clients with their expert team of bankruptcy attorney, Los Angeles, California and also in Dallas, Texas.


                        *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.