Get Foreclosure Help

Tag: bankruptcy attorney Dallas

  • Chapter 7 Bankruptcy and Liens

    Chapter 7 Bankruptcy and Liens

    Lien can make bankruptcy and its procedures complicated. Lien could be defined as a right to the lender to take over the specified asset in case the debtor fails to repay his/her debt. The right of lien for the lender or a creditor is valid even for Chapter 7 bankruptcy. Hence, it cannot be released or skipped even if you file bankruptcy under Chapter 7. No lender gives money with a motive to fight out battles in court or to seek different modes for extracting his due. Every lender is an investor and he/she looks for security. The best way to secure the investment is by attaching an asset of the debtor in case he/she defaults or is unable to pay his debts. This is even more important when the loan is bigger and is offered at a relatively lower interest. To know in depth about bankruptcy and its repercussions, log on to Recovery Law Group right now.

    Understanding lien and other financial terms associated with it

    The lien when exercised leaves the lender with an option to use, auction, or sell the asset in order to recover his loan. There is usually an agreement that is cited between the lender and the debtor which gives an exercisable right or ownership to the lender if the debtor fails to repay. Depending on the terms of the agreement, it is likely that the creditor is responsible for the amount not recovered by selling or disposing of the asset. A deficiency balance is the financial term used for the amount lender fails to recover even after disposing of the lien asset. Under Chapter 7 code, most states release deficiency balance and in very rare circumstances, will the debtor be liable for the deficiency balance.

    Secured debt, collateral and credit card

    A debt which has a lien is regarded as secured debt. The asset which is kept as a security to cover the debt is referred to as collateral. The collateral does not usually exist in an unsecured loan. Credit card or pay day loans can be categorized under unsecured loans. Usually, the lien is known by the debtor but there can be some instances of enforced liens. These are usually enforced by some government agencies due to non-compliance or similar acts.

    For instance, if the IRS attaches a particular asset of yours for non—payment of dues, it is a lien. Another example of such liens could be a lawsuit liability. If a creditor sues a debtor in the court before filing bankruptcy, and the court asks the debtor to clear the dues by backing a specific asset of the debtor, it could be a lien. Unsecured debt has been converted into a secured one. It is quite rare but can happen in some circumstances. This is known as a judicial lien or a judgement lien. The unsecured creditor usually evaluated the cost of litigation and debt and might sue the debtor to convert an unsecured debt to a secured lien if he/she wins the court case.

    What can be exercised during judicial liens?

    A judicial lien can give access to the creditor with most assets. Real estate is excluded from this lien. Using exemptions and various other strategic planning, most debtors can save automobile, household stuff, home, etc. However, the lender usually goes after the most liquid and easy viable assets like money from the bank account or from future wages. Money cut from wages and granted to the lender or any other lien exercised is referred to as wage garnishment. Under Chapter 7 bankruptcy Dallas, all your loans are wiped out, but you have to sacrifice your assets too. There is no liability for released debt or deficiency balance once the bankruptcy is done and dusted.

    In case you had like to keep a specific asset, you might want to use the exemption or pay the dues in full to retain the asset. You can also consider an out of court settlement with the lender who has a lien on that particular asset. With forgiven debts, there is a rise in hefty tax liabilities. You might get away with the liability of debts but there is tax liability hanging behind if the debts released or settled are of high worth. To seek best advice and professional assistance on all your bankruptcy questions contact 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.

    • Bankruptcy will make me lose my truck!

      Bankruptcy will make me lose my truck!

      If you are relying on commuting by your truck or car to your office, giving up the car/truck due to bankruptcy. It can be even worse if you own a truck and use it for your side-income or if it is your source of employment directly or indirectly. The good news is that most States in the United States of America allow for a provision that helps protect your truck or a car. There is a specific value threshold though that means, if your car or truck is not a luxury one or is an inexpensive one, you might just be able to keep it under state provisions. To learn more about bankruptcy and seek best advice relating to it log on to Recovery Law Group now.

      What does asset exemption mean?

      When filing bankruptcy under Chapter 7, which requires you to surrender your assets in order to pay off your dues. However, not all assets have to be surrendered and there are some exemptions. Maintenance of home and employment is an essential aspect of every state guideline. These beneficial laws allow a filer to retain certain assets, which can be listed as follows-

      • Furniture in the household, which are not associated as luxury
      • Clothing
      • Wedding ring
      • Inexpensive or not luxury or ordinary vehicle
      • Retirement money which has been qualified by ERISA
      • A part of your equity in the home, which is filer’s primary residence

      What exemption rules can allow me to keep my truck?

      There are three common exemptions which can be applied for in order to keep the truck or car during and after bankruptcy. These three exemption rules can be listed as follows-

      • Tools of the trade code

      Some states in fact majority of them allow the bankruptcy filer to retain some properties that are essential for work. A work truck or a car driven exclusively for work purposes in the past should qualify for this exemption code. You still, however, may need to provide strong evidence that you need the car/truck to generate income or to keep up with employment. The amount of exemption can be capped around $1,500 to $10,000 depending on the state in which the bankruptcy has been applied.

      • Motor vehicle exemption code

      This exemption code allows bankruptcy filer to retain his/her car or truck. There is no justification or reasoning needed with respect to use/income generation or any such criterions. However, most states have a very slim threshold a will usually allow for a few thousand dollars as exemption amount. In order for the bankruptcy trustee to not exercise your automobile, the exemption amount should cover your vehicle’s present market value. Else, the bankruptcy trustee can exercise right to liquidate the same. The value of the vehicle plays a very significant role for qualifying under the motor vehicle exemption code. It shall vary from state to state.

      • Wildcard Exemption

      Some states allow you to protect your assets up to a blanket value during bankruptcy. This exemption is usually larger, but it shall incorporate all exempt assets and the non-exempt assets which you had like to keep. If you have lower value or worth of exempt assets, this can be an ideal option to safeguard your car or a truck.

      What if you are not able to use any of the three exemption codes?

      The alternate option if you do not want to use the above exemption codes would be to pay off the nonexempt value of the car/truck. Under certain circumstances, you can payout the fair market value of the car loan and the remaining debt shall be released, and you shall also be able to keep your car or truck. In most circumstances, bankruptcy trustee shall allow you to pay the equity and retain the car.

      If you do want to get into ifs and buts and want to safeguard your car for sure, Chapter 13 bankruptcy Dallas is the best option. Since most of the debt shall be paid off in 3-5 years, the filer retains most of his/her assets, whether exempt or nonexempt. There is more authority with respect to assets when filing under Chapter 13 bankruptcy. Seeking professional assistance can help you drive the situation better, +1 888-297-6203 is your one-stop helpline.


        *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 Trustee’s Role in Chapter 13

        Bankruptcy Trustee’s Role in Chapter 13

        Chapter 13 bankruptcy involves the creation of a repayment plan through which the debtor pays off some or complete amount of their dues to the creditors over a 3 to 5-year time frame. The process is overseen and administered by the bankruptcy trustee appointed to the case. According to Dallas based bankruptcy law firm Recovery Law Group, the various responsibilities of a bankruptcy trustee in Chapter 13 include:

        • Reviewing of bankruptcy papers

        Bankruptcy trustee reviews the forms filled by the debtor at the beginning of the case and verifies the information provided on the form with that on the documents provided along with including tax returns, pay slips, etc. The trustee also takes an account of your income, monthly expenses, debts, and any assets you have.

        • Conducting creditors meeting

        After a month of filing bankruptcy papers, a Chapter 13 creditors meeting takes place under the administration of bankruptcy trustee. You are expected to answer all questions, under oath, regarding the information provided by you in the documents along with your bankruptcy papers and supporting documents. The creditors can also question you in this meeting.

        • Assessment of proposed repayment plan for compliance with bankruptcy laws

        A repayment plan is devised keeping in mind your disposable income, your debts, and your assets. During this repayment plan, you are expected to make payments every month to pay off your debts. In case the trustee has an issue with the repayment plan, they can object to it. A confirmation hearing is scheduled where you can draft an opposition in support of your plan.  The trustee’s job is to ensure that the payment plan meets all requirements. The judge can then either confirm or reject the plan.

        • Collection of plan payments and their distribution among creditors

        You need to make monthly payments as per the proposed plan to the bankruptcy trustee within 30 days of filing bank papers. It is the trustee’s duty to hold the funds for the creditors. Once the plan is approved, the trustee can distribute funds to the creditors as per the terms of the plan. This continues for the entire duration of the repayment plan (3 to 5-years). The trustee also evaluates the proof of claim filed by every creditor and keeps an account of the money each creditor has received during the repayment plan.

        • Objecting to any improper claims

        Creditors wishing to get funds through Chapter 13 bankruptcy Dallas repayment plan need to file a proof of claim within 70 days of the filing date (180 days in case of government creditors). The claim states the amount due to the creditor and has documents (contract or agreement) to prove their claims. These documents are reviewed by the trustee and they may object to any improperly filed claims or those lacking proper documentation.

        In case you are confused regarding which bankruptcy chapter is best for you, contact expert bankruptcy lawyers at 888-297-6023 to discuss your case.


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

          *Do you own a home?

          Are you currently working?

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

        • Increase in Bankruptcy Filings Among Retirees

          Increase in Bankruptcy Filings Among Retirees

          It is rather a sad state of affairs that Los Angeles is one of the cities that has an increase in the number of bankruptcy filings from the citizens who are above 55 years of age. This number has only doubled since 1994. Despite the need to rest after years of employment, the country witnesses this stupendous rise of close to twenty percent of the total bankruptcy filings to be of the retirees. But experts say that it isn’t surprising – the failure of the individuals (close to 32%) in setting aside a retirement amount is the major contributing factor.

          The key reasons why seniors file for bankruptcy are medical expenses and credit card bills. Let’s discuss this more:

          Medical Expenses:

          Here’s a fact that may startle you!

          In 2015, the Kaiser Family Foundation uncovered that approximately 1 million people have declared bankruptcy citing the piled up medical bills and expenses. This probably includes the majority of the Americans who have health coverage for the complete year and yet are unable to pay off their medical bills.

          With age, the income sources decline but yet the medical expenses post-retirement will rise exponentially. The Employee Benefit Research Institute did a study in 2015 and the outcome mentions that a married couple would require $392,000 if they are on regular prescription drugs and that they are able to cover 90% of the related expenses post their retirements. Please note that the exorbitant amount is not accounting for long-term health care that is needed in old age. Many believe that Medicare will be their ultimate savior but it is quite unfortunate that there are exclusions in Medicare – eye care, dental care, and long term health care is not covered by Medicare. If you are looking at a semi-private room in a nursing home for long-term treatment, it costs about $225 per day and hence the high medical expenses that are needed to be borne by the individual. Besides, all high deductibles are to be paid by the seniors before the insurance starts for them.

          Credit card Debts:

          High credit card debts are another major reason for the senior folks to file for bankruptcy. Most of the crowd would have accrued larger debts on their credit card prior to their retirement. Now that there is a decline in the income, they struggle and fall back on their payment schedules. Not just this, but there are very minimal savings for the retirement time of the seniors and they don’t do a good job in planning well in advance for the same.

          The new trend, as reported by Demos National Survey on Credit Card Debt, is the increase in the credit card debts among the people of age 50 or more compared to the younger Americans. These seniors also fall under the category of middle-income earners. In other cases, retirees turn afresh toward credit cards when they encounter the income decline – especially for basic expenses involving food and gasoline. Seniors have also been benevolent to their children and grandchildren – pampering them with financial help with their own credit cards. Some seniors resort to paying off the medical bills using credit cards as they fall short of the amount during their illnesses.

          Here are some tips to plan the future that every citizen hopes for – well secured and free of debts. Planning and securing the future will be the best course of action for seniors to adopt.

          Financial Planning

          The advised course of action, especially if retirement is fast approaching, is to plan ahead of what will be needed financially for your future. The medical expenses are to be considered as every person faces unforeseen emergencies even in the best of their health conditions. The expenses for the future may not be predicted when you are living a simple and healthy life currently – life may throw medical emergencies at you as well as other expenses that need immediate attention.

          Whilst you are earning, plan on a budget that includes saving for the phase of retirement. It is wise to keep an emergency fund that will help you manage toward situations of unemployment, health needs, vehicle demands for at least six months. This amount will only increase as we age and plan to double the emergency fund value in a year of saving. Health Savings Account (HSA) is also a recommended idea and they come in handy for those expenses that are generally not covered by Medicare – preventive healthcare like eye exams and dental procedures. The money in the HSA can be withdrawn without any tax.

          Further assistance for Seniors in Debt

          Are you seeking further assistance as a senior citizen and who is challenged by debts in California state? Recovery Law Group can work with you to resolve the issues at hand. Their team of bank attorneys who operate from Los Angeles and also Dallas, Texas are aware of the common problems that seniors and retirees face with debts.

          Here are some tips to aid and direct you better:

          • All high-interest rate debts need to be cleared off on priority
          • A payment plan that is effectively negotiated between hospitals and medical providers can help you clear off all medical debts that you owe. Don’t compromise for a medical credit card as you may incur more debts with it.
          • Be vigilant of your expenses and maintain the same meticulously within budget. There are articles and apps that will help you do the same.
          • If there are piled up credit card bills, check the feasibility of a repayment plan without interest or penalties. This needs to be negotiated with the bank who has issued your credit card.
          • A non-profit credit counselor is someone who can help you with more insights – consult one if possible
          • A reverse mortgage can also be a viable option to consider but it depends on the financial situation that you are in
          • Plan for the worst and plan well ahead

          You can reach out to this team at 888-297-6203 and they are sure to come to your assistance!


            *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.

          • Criminalizing Private Debts

            Criminalizing Private Debts

            There are criminal proceedings on defaulters on the debts that they owe to creditors. Let’s take a scenario where the debtor has fallen sick and has missed out on the payments that he/ she regularly makes. The notices about missed payments have just been ignored since the debtor is away on treatment. The piled up debt now invites court hearings – the intimations of these too have not been attended to and this eventually turns out to issuing of warrants for the arrest of the debtor for the failed payments.

            This is not a surreal scenario and can happen to any of the debtors who fail on his private debts. It is not the question about a debtor’s prison that needs to put you into a tight spot but the private debt collectors who cause enough agony. Whether they are just a few dollars or even larger sum of debts, they use the justice system to prey on the debtors and force them towards paying the debts. A report titled, “A Pound of Flesh: The Criminalization of Private Debt”, claims that one out of three Americans are facing the pressure from collections agencies as their private debts are turned to them. The report has been collated by the American Civil Liberties Union (ACLU). As per the reports, the number of Americans who are arrested and face imprisonment is 77 million people and the majority of them are the black and Latino community folks who battle poverty and wealth issues.

            What leads to the arrest in private debt?

            The debts are criminalized when there is a default in payments and even after issuing of notices to appear in court, the debtor fails to appear. Subsequently, the warrant of arrest is issued by the judge. There have been scenarios that the debtors are not notified of appearances or of the lawsuit.

            The creditors can seek the assistance of collection firms (there are approximately 6,000 of them in the U.S.) for this process of debts collections from the debtors. These debt collectors file lawsuits asking for the repayment. Close to 95% of these cases turn out favorable for the collector as the debtors don’t defend their case, as reported by the ACLU. The debtors report their unavailability due to work, or illness, or childcare, or disability, or lack of transportation, or that they weren’t aware of the lawsuit. The count of issued arrest warrants for unpaid student loans & utility bills is several thousand. Since these warrants are tracked as arrest warrants by the court, the exact number is quite unknown. It might be shocking to know that there have been arrests for amounts as low as $28, and more than half of the U.S. states (including California) witness the scenarios with arrest warrants for private debts.

            Agonized with threatening letters & creditor lawsuits

            The ACLU has reviewed the situation around private debts and concludes that more than 1 million consumers get threatened by their credit via letters demanding the payments. The district attorneys in the U.S. have also allowed the debt collectors from private agencies to utilize their seal and signature on these letters. The repayment demand letters have only confused and agonized these debtors. Several of them are people who have suffered a loss of a job, or a divorce or even the death of a family member. While some battle illness and have medical bills that have piled up causing them debts. Hence they survive on the Social Security and unemployment related insurance. There are retirees with disabilities or on veteran’s benefit.

            ACLU’s recommendations on Debt practices

            The ACLU has concerns over the process of debt collection and calls it abusive considering that it affects human rights and equal protection. The regulations that govern the debt collectors have to be improved a lot.

            ACLU’s report suggests the below recommendations:

            • Judges shouldn’t be issuing the arrest warrants in cases of contempt or failure to appear in court related to debt collections
            • State Legislatures to enact laws that prevent arrest warrants in debt collection lawsuits
            • Forbid the contracting between district attorneys and private debt collection firms
            • State attorneys to oversee the work of a district attorney & their contracts – mainly their involvement in debt collection practices. In lieu of this, they should sue unfair means of debt collection and protect the consumers.

            Recovery Law Group, operating in Los Angeles, California and in Dallas, Texas are in concurrence with the above recommendations and work with consumers who suffer at the hands of collection agencies.

            Assistance to pay off debts

            Debtors do not immediately step up for assistance to pay off their debts. It is several years that they try to tackle the burden and then land themselves in situations of facing threats, arrests and pressurizing phone calls. For some, Chapter 7 or liquidation bankruptcy could be an option and for the other debtors, Chapter 13’s repayment plan can come to their aid. In order that they get ample support, the debtors can dial 888-297-6203 for the expert team of attorneys at Recovery Law Group. Their clientele in Los Angeles and Dallas are numerous and they have proven records of assisting debtors who are amidst financial challenges involving their private 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.

            • Rejection of Bankruptcy by the Supreme Court

              Rejection of Bankruptcy by the Supreme Court

              It is interesting to note that one of the appeals related to a Chapter 13 bankruptcy has been rejected by the Supreme Court. This instills a sense of doubt among debtors regarding the case and why the rejection was approved by the court.

              Let’s understand the case in detail:

              The debtor associated with the case had filed for personal bankruptcy under Chapter 13. As per the norms of this Chapter, he had proposed a repayment plan which he eventually modified for several times in a span of two years. The final proposal that the debtor submitted indicated that he should be permitted to pay his mortgage of $387,000 as a secured debt and the rest of his debts that amounted to $101,000 (mostly in liabilities) should be treated as unsecured debts. Through this proposition, the debtor would be paying $5,000 of his liabilities and also get to keep his home over the five-year term of his repayment plan.

              The bankruptcy court of his state rejected this proposal and his plan. The debtor appealed the decision of the bankruptcy court. The Appellate court stood firm mentioning that the lower court’s decision was correct and the debtor proceeded to pursue his appeal to the Supreme Court. The Supreme Court justices rejected the petition stating that the debtor does not have the rights to appeal the decision of bankruptcy court, especially given the case that his plan was originally rejected by the same court. Every court should not have to review the plan individually and the rejection implied that it is an appellate issue.

              Considering the above case, if you are perplexed on how to handle the Chapter 13 bankruptcy, Recovery Law Group can come to your rescue. Their team of bank attorneys will help the debtor to determine the debts to pay, the ones to seek exemption for and also coordinate on the approval of the repayment plan. Call the team at 888-297-6203. They provide services in Los Angeles, California, and Dallas, Texas. Be assured of their guidance as to the debt associated issue resolution and working on a repayment plan for Chapter 13 bankruptcies are their forte!


                *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.