Tag: Bankruptcy Chapter 7

Missed Bankruptcy Payments? Can Creditors Resume Collection in This Case?
Living beyond limits, using credit cards frequently can land you in huge debt. In such a case, people often find bankruptcy to be a great way out of debts. Chapter 13 bankruptcy offers debtors a chance to stop collection action while repaying some portion of their debt through a court mediated repayment plan. This plan is developed based on the disposable income of the bankruptcy filer. Disposable income puts certain financial restrictions on the debtor, eliminating all unnecessary expenses to accommodate the repayment plan. However, inform Dallas based bankruptcy law firm Recovery Law Group, people sometimes end up missing the payments. The consequences of this can be quite hard.

If an individual debtor misses’ making the payments as per the repayment plan, the bankruptcy trustee should examine why the lapse occurred. In case, they find no justifiable reason, they can recommend the dismissal of the bankruptcy case to the court. Dismissal of the case by the court will land you in a soup as the creditors whom you owe debts can resume collection actions to get their money back.

If the bankruptcy trustee recommends dismissal of the case, the bankruptcy filer has legal rights to file a petition in order to reinstate the plan. This can be approved if there is evidence convincing enough to prove that they can continue with the payment plan. Another option available is to file a petition to the court for a more reasonable repayment plan which can be easily managed by the debtor. Remaining engaged in the process by the bankruptcy filer shows their intent to pursue the repayment plan in order to get rid of their debt. This can work in their favor; else the court might end up dismissing the case leaving the debtor in a lurch.

It is important that while working out a repayment plan in Chapter 13, you wisely inspect your circumstance before agreeing to the repayment plan. Bankruptcy can be quite confusing and should best be handled by experienced bankruptcy lawyers. If you wish to get rid of your debts through Chapter 13 bankruptcy, it is important that you call 888-297-6023 and consult with the best attorneys of the field.
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September 14, 2019
Is Chapter 7 Bankruptcy Your Best Bet to Get Rid of Debts?
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Money comes, money goes. The saying best describes the monetary situation of most people. There is no dearth of individuals who are struggling to make ends meet. You will hardly find someone who has not faced money problems in their life. If you are currently going through a bad financial phase and have accumulated a large amount of debt, then, bankruptcy might be a way out. However, there are various chapters of bankruptcy and it might be a bit too much for a layman to understand which chapter will work best for them. According to Dallas based bankruptcy law firm Recovery Law Group, people generally prefer to opt for Chapter 7 bankruptcy as it offers to get the majority of your debts discharged within 3-6 months of filing. This chapter is also beneficial if you are on the verge of foreclosure. However, it is important to consider certain factors before filing for Chapter 7 bankruptcy.
- Do you qualify for Chapter 7 bankruptcy?
Chapter 7 has stringent measures when it comes to qualifying for it. In order to qualify for Chapter 7 bankruptcy Dallas , your past six months’ income must be less than or equal to the median income in your state. Additionally, you might also need to show that you do not have enough disposable income to pay back your debts through Chapter 13 repayment plan.
- What happens to your assets?
Anything and everything you own becomes part of the bankruptcy estate when you file for bankruptcy. In the case of Chapter 7, the court can sell your non-exempt property to pay your unsecured creditors while discharging the remaining unsecured nonpriority debts.
- How to deal with secured debts?
Secured debts are those debts against which the creditor has collateral such as an automobile loan, mortgage, etc. They are not discharged in bankruptcy. However, you have the option of either reaffirming or redeeming the loan or surrendering the property. In the case of the former two, you can keep your property while coming to a payment agreement with the creditor.

Since bankruptcy is a complex process, involving numerous forms and fees, it is better to let professionals deal with it as all of this can be extremely overwhelming especially when you have immediate financial concerns. Seek professional assistance from experienced bankruptcy lawyers by calling 888-297-6023.
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September 12, 2019
Why Do People File for Chapter 7 Bankruptcy?
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Owing someone something is one of the worst things. Nobody likes to be reminded of this fact. Being in debt is all this and more since the creditors are always at your door asking for their dues. For people who have amassed a large debt, a bankruptcy filing is probably the best way out. Individual debtors have the option of filing under Chapter 7 or Chapter 13 bankruptcy; however, Chapter 7 is probably the preferred choice for almost all debtors. According to Dallas based bankruptcy law firm Recovery Law Group, the top reasons why people choose this chapter of bankruptcy are:
- Get a fresh Filing for Chapter 7 bankruptcy wipes your slate clean. Your entire unsecured non priority debts such as medical debt, credit card debt, personal loans, etc. are discharged thereby providing you a chance to start afresh.
- Retain future income. Unlike Chapter 13 where you end up repaying your creditors with your future income, Chapter 7 gets all your debts discharged without any such obligation.
- Discharge within months of filing. In this bankruptcy chapter, debtors get a discharge within 60-90 days of filing. This is fast when you compare it with Chapter 13 bankruptcy, where discharge is typically given after 3 to 5 years from the date of filing.
Though bankruptcy filing is generally the last resort, you need to consider the benefits over continuously living under the threat of creditors. For knowing more about your legal rights as a debtor, it is important you consult with experienced bankruptcy lawyers Dallas. You can do so by calling 888-297-6023.
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September 11, 2019
Everything You Wanted to Know About Bankruptcy
Every now and then, individual and businesses go overboard with their expenditure. This might result in them going under. Bankruptcy is a legal way to get rid of the entire amount or some portions of the debt. However, there are long term effects of filing for bankruptcy, the major being, bankruptcy remains on your credit report for 7 to 10 years depending on which chapter you filed under. This may adversely affect your ability to get a loan at a favorable rate, open credit card accounts, etc.

Since bankruptcy is a complex process involving lots of paperwork, it is advised to seek guidance from experts like the Dallas based bankruptcy law firm Recovery Law Group. It is also mandatory for an individual to complete a credit counseling course from a government-approved counselor in order to create a budget for monthly expenses. Individuals can file for bankruptcy under either Chapter 7 or Chapter 13. Both chapters can help in getting rid of unsecured debts, as well as stop all kind of collection actions including foreclosure and wage garnishment.

Chapter 7 Bankruptcy

This is also known as liquidation bankruptcy. A bankruptcy trustee supervises the sale of non-exempt property to pay off your creditors. Any debt which remains is discharged. Certain debts like alimony and child support, student loan and certain government taxes are not eliminated even after bankruptcy. Filing for Chapter 7 has consequences; you end up losing some of your property, your bankruptcy is reflected in your credit score for 10 years. Additionally, if you end up in a financial mess again, you will not be able to file under this chapter for 8 years.

Chapter 13 Bankruptcy

In this case, you can keep your assets by paying for them along with repaying your debts through a court-approved repayment plan over a period of 3 to 5 years. After the duration, any remaining debts are discharged, even if only part payment is done on them. This bankruptcy allows you to keep your assets while repaying some debt. Moreover, this bankruptcy is reflected in your credit report for 7 years only and you can file for bankruptcy under the same chapter after 2 years of discharge.

Common bankruptcy terms

Some common bankruptcy terms people come across during their discussion with lawyers are –
- Bankruptcy trustee: A person/corporation appointed by the court to review the petition, assess the property, oversee the sale of assets and disburse the proceeds among creditors in case of Chapter 7 bankruptcy. In a Chapter 13 case, they also oversee the repayment plan, receive money from debtor and pay it to the creditors.
- Bankruptcy discharge: Completion of bankruptcy proceedings results in discharge. In Chapter 7 this takes place when assets are sold and creditors are paid, in Chapter 13, after completion of the repayment
- Credit counseling: A compulsory course of action prior to filing for bankruptcy. You are required to complete a personal financial management course through government-approved credit counseling agency before bankruptcy discharge. This can be waived off under special circumstances.
- Exempt property: State and the federal government allow bankruptcy filer to keep some property. this cannot be sold to repay creditors. Generally, some equity in the home, vehicle, work tools, household items, etc. is exempted.
- Lien: Legal action which allows the creditor to hold or sell debtor’s real estate for security or debt repayment.
- Liquidation: Selling of non-exempt property of the debtor in order to generate cash to pay off the creditors.
- Means test: A test used to determine the ability of a bankruptcy filer to repay their debts. This considers the filer’s assets, income, expenses, and Failure to pass means test disqualifies them from filing under Chapter 7. Individuals can then file for Chapter 13 bankruptcy Dallas.
What happens after a bankruptcy discharge?

People might end up losing some property when they file for bankruptcy. It also has long term effects on your credit report. Depending on the chapter of bankruptcy, bankruptcy remains on credit report for 7-10 years. You might face difficulty in getting a loan, or if offered it might be at a higher rate of interest. In case your loan was co-signed by your spouse or parents, they might also face some problems if you file for bankruptcy. Getting a mortgage becomes difficult for bankruptcy filers. They need to give a larger down payment, get a mortgage at the higher interest rate. Reaffirming current mortgage is a better alternative.

It is important to have credit information updated on your credit report if you wish to avail credit at favorable terms. This can be done by rebuilding credit, paying bills on time, living within budget, etc. it is important to consider bankruptcy alternatives like debt consolidation, debt settlement, etc. prior to filing. To know more about bankruptcy options, contact experienced lawyers at 888-297-6023.
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September 1, 2019
Need to File Bankruptcy a Second Time? Here’s an Overview of Both Chapters for Your Assistance
Financial problems can hit anyone anytime. However, there is no guarantee that despite your best efforts you might not hit a rough patch again. Many people are often confused that if they have opted for bankruptcy earlier to get rid of their debts, are they eligible to file for bankruptcy again? According to Dallas based bankruptcy law firm Recovery Law Group lawyers, if an individual has had a bankruptcy discharge previously, a certain time period is necessary before they can file for bankruptcy again. The various options available to people who have previously filed for bankruptcy are:
- If an individual has had a Chapter 7 bankruptcy discharged previously, they cannot get a discharge in Chapter 7 case until 8 years from the date of 1^st Chapter 7 bankruptcy discharge. If such an individual opts for filing for Chapter 13 the second time, they need to wait for 2 years between the bankruptcy filings to get a discharge the second time. Chapter 13 discharge, in this case, cannot be granted prior to four years from the date of Chapter 7 discharge filing.
- If a person had previously received a discharge in a Chapter 13 bankruptcy case and wishes to file for a Chapter 7 discharge later, they will have to wait for a minimum period of 6 years from the Chapter 13 discharge date. However, certain exceptions are observed in this case. The individual needs to have paid their unsecured creditors in full as per the Chapter 13 plan or paid 70% of claims along with a statement providing good faith effort on your end to clear your debts.
You can contact expert bankruptcy lawyers at 888-297-6023 to get a better understanding of your options for filing bankruptcy again.
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August 28, 2019
Paying off Chapter 13 Debts Earlier
The financial situation sometimes can get better with time and it so can happen that you have been halfway through your Chapter 13 repayment plan duration only to realize that your financial situation is a lot better now. In such circumstances, it is very tempting to pay off all pending Chapter 13 payments in advance and get rid of the cycle. However, it is not one of the most beneficial attempts as you might end up owing more to the lenders as creditors are entitled to all or most of the disposable income. As the disposable income increases, you might have to pay off all debts in full to end the Chapter 13 payment plan earlier. The discharged debt or released debt might be reversed in such a scenario. To know more about Chapter 13 and its alternatives, log on to Recovery Law Group to get a greater insight on all bankruptcy-related topics.

Disposable income needs to be channelized to lenders

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

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

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

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

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

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

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

Just how the increase in income adds extra leverage to the lenders, a decrease in income also holds them accountable to compromise. If there is a financial setback and your payment plan has already been designed to pay less than the total debts you are liable too, you might just end up getting all your remaining debts discharged. This happens only if there is a lot of hardship and there is a huge probability of the scenario not bettering in the near future or for the duration of the Chapter 13 payment plan. This process is referred to as ‘hardship discharge’. There are some terms and conditions to avail hardship discharge those can be listed as follows-
- Your lenders have received as much as they would if you had filed for Chapter 7
- The change in financial situation or setback is a natural event and does not involve mismanagement or intentional action or basically, there is no fault of the filer
- The financial condition of the filer does not seem to have a bright future
- A change in Chapter 13 payment arrangement is also not viable due to lower disposable income
The above points need to be proven and evaluated by the court to make any judgment with respect to a hardship discharge. A student loan might still not be released though however, most of the other debts can be wiped off. For a deeper analysis of your situation and to help you out of it, contact the best attorneys in town at 888-297-6203.
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July 29, 2019
Is it Possible for a Legal Citizen (noncitizen) to file for a Bankruptcy?
It is possible for a legal citizen (not a US Citizen) to file for bankruptcy, but you must check with your attorney before doing so, to ensure that it is not affecting your citizenship application in any way. To find out in details regarding how to file, contact Bankruptcy attorney at 888-297-6203 or Recovery Law Group.

Legal Residents are Eligible to File for bankruptcy

If you are a Legal Resident (noncitizen) and reside in the United States or have a domicile or a business in the United States, then you can file for bankruptcy as any other citizen can. To sum it up, if you are a legal resident with a residence or business in the US, then you are eligible to file for bankruptcy.

Precautions/Conditions to take care of before filing for bankruptcy

It is important to note that if you have applied for a Green card or US Citizenship, then filing for bankruptcy can have a negative impact on your submitted application. Nonetheless, immigration attorneys are the best guide in this scenario, as each case of immigration varies and is dependant on your acts, past history, and individual circumstance. Hence it would be best to contact a reputed and experienced attorney before you make the decision to file for bankruptcy (after applying for a US citizenship).
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July 28, 2019

An Overview of Chapter 7 Bankruptcy Process

If you are looking to file for bankruptcy, Los Angeles based bankruptcy law firm Recovery Law Group, suggests Chapter 7 as one of the best ways to get rid of your debts, provided you are able to qualify for the same. A typical Chapter 7 bankruptcy process consists of six steps:

You are required to complete a mandatory credit counseling course before you file your bankruptcy papers. This can be one either online or by phone.
You need to fill your bankruptcy forms. These are available online. Along with the forms you are expected to provide a list of all your properties, your creditors, information regarding all financial transactions that took place over the past two years.
Provide your bankruptcy trustee with a copy of the latest income tax return and any other relevant documents asked by the trustee.
30 days after filing the bankruptcy papers, a creditors’ meeting is scheduled which is mandatory to attend. The meeting is conducted by the trustee in a hearing room and is attended by the bankruptcy filer, their attorney, the trustee and possibly the creditors. You are required to provide an answer (under oath) to all questions asked by the trustee pertaining to your bankruptcy case.
Within 60 days of the creditors’ meeting, you are required to attend a mandatory budget counseling (online or via phone) and inform the court (by filing a form) about the completion of the course also provides a certificate of completion from the counseling.
You are not allowed to operate a business with inventory or give away or sell any property without your bankruptcy trustee’s permission until you get a written discharge of your debts by the court. Usually, this takes place around 60 to 75 days after creditors’ meeting. Usually, during this time frame, the creditors can, but rarely object to your getting rid of debts. In case you have any non-exempt property, the trustee makes arrangement for turning it over so that it can be used to pay your unsecured creditors. However, most Chapter 7 bankruptcy filers do not have non-exempt property.

The Chapter 7 bankruptcy timeline is very short.

Prior to filing papers	Mandatory credit counseling
Filing date	File papers to start the bankruptcy process
30 days after filing papers	Creditors’ meeting
Up to 60 days after creditors’ meeting	Compulsory budget counseling
60 days after creditors’ meeting	Get written discharge of your debts from court

In case you are worried about your bankruptcy case, consult with expert bankruptcy lawyers at 888-297-6023.

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July 24, 2019

Child support and Bankruptcy
Child support is one of the most priority or preferential payments in the eyes of law. One might be able to evade all kinds of secured/unsecured loans but getting away with child support is probably the most difficult task no matter how poor or bankrupt you may be. One more debt that comes in this category is student loans. Students could complete graduation and apply for bankruptcy then and get away with any sort of student loan on their name. This is the primary reason why Student loan has been excluded. Similarly in the case of child support, the federal government, and the law place special emphasis on the care/support of children. The court is very strict on individuals using bankruptcy as a mode to evade supporting their children. Some other debts that include criminal offenses, legal fees, drink, and drive ticket, etc., are also excluded from the bankruptcy procedure.

Bankruptcy can help you with your child support obligations

Child support is the responsibility of both parents. Child support is the financial assistance for the child until a specific age or until and unless the child becomes capable of covering his/her own needs. The parent who is not having the custody of a child usually pays for child support. On the other hand, the custodial parent has to take care of housing expenses, food/daily care, etc., for the child. The child support is usually determined by the court depending on various factors like income of the parents, specific child needs, duration of support required, etc. The payments are to be used for childcare and they can be direct in cash or cheque to the custodial parent or could be indirect in the form of purchases.

Wage garnishment rules

Wage garnishment is the process of withholding the income from the W-2 directly by the authorities in order to direct the same towards child support. The percentage of the garnishment varies based on state. As per California, the percentage could go as high as 65% under certain conditions. Under the rules, the child support has to be paid for at least 18 years and could go to 19, if the child is not married and is pursuing education. log on to https://bankruptcy.staging.recoverylawgroup.com/ to know how you can prevent wage garnishment and other consequences.

Child support scenario with Chapter 7 and Chapter 13

In the case of Chapter 7, the surrendered assets or otherwise called non-exempt assets are to be liquidated and the debts are to be settled with the proceeds. The first right on the proceeds is towards the child support and/or spousal support. Once the proceeds satisfy both of them, the remaining proceeds shall be used for repaying secured debts first and then the unsecured ones thereafter. Whatever debts are not covered in the proceeds of liquidated assets shall be forgiven or written off by the debtors. The case, however, does not hold true in the case of Chapter 13 bankruptcy. Since Chapter 13 proposes a payment plan for a period of 3-5 years. The biggest difference with respect to the ‘automatic stay’ offered under Chapter 13 and Chapter 7 is that the former offers protection in case of child support also.

Being current on child support is the basic requirement for receiving any kind of release of debt under Chapter 13. If you are behind on the child support payments, get current on it for beneficial bankruptcy settlements. No matter if you are using Chapter 7 or Chapter 13 bankruptcy, there are certain modes of making child support payments easier. Evading child support isn’t right legally as well ethically but in case you need help in making your life easier with child support call +1 (888)-297-6203 right now.
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July 6, 2019
Why Do You Need Legal Guidance for Filing Chapter 7 Bankruptcy in Los Angeles?
Sometimes, debt reorganization, repayment plans, etc. are not enough to get rid of the overwhelming debt accumulated by people. For such individuals, Chapter 7 bankruptcy is the only solution available. This type of bankruptcy is also known as liquidation bankruptcy, wherein the non-exempt property of the individual is sold off and the money so generated is distributed among creditors. After this, lawyers of Los Angeles based law firm Recovery Law Group clarify that any remaining debts are discharged.

Considering the complexity of cases, it is vital that you consult adept bankruptcy lawyers to help you out in Chapter 7 bankruptcy filing. Many times, clients do not have any non-exempt assets, i.e. they get to keep all their property/assets. The primary task of a bankruptcy attorney is to evaluate the debt, assets, as well as income of the debtor to find out whether Chapter 7 is indeed the best debt relief solution for them or they, should opt for Chapter 11 bankruptcy. Not every debtor can file for Chapter 7 bankruptcy as they are required to qualify a means test. In this test, the income of the debtor is assessed. In case it is below the state median, they can file for Chapter 7 bankruptcy. If it is above the mean income in the state, they need to undergo credit counseling with an approved agency.

What Happens If You Qualify for Chapter 7 Bankruptcy?

If you are able to qualify the means test for Chapter 7, bankruptcy lawyers guide you through the entire process. In this particular bankruptcy, a court-appointed trustee gathers all non-exempt assets of the debtor and sells it. In the state of California, 2 sets of exemptions are available; California Code of Civil Procedure Sections 703 & 704. At a time, the debtor can choose from either of the two sets in his/ her bankruptcy case. Taking the help of your attorney can provide you the necessary guidance.

Different assets that are exempted, either entirely or in part are listed below:
- Tools of trade
- Insurance policies
- Clothes and personal effects
- Jewelry
- Vehicle equity
- Homestead equity
- Ordinary household goods (appliances, furniture, )
- Retirement plans
- Worker compensation or any income generated from a personal injury claim
- Other assets
Any assets apart from those listed above can be sold by the trustee and payments made to creditors as per the Bankruptcy Code. Any debt that remains after the liquidation of asset is discharged. However, it is important to remember that certain debts cannot be discharged. These include:
- Some Government taxes
- Spousal and child support
- Few Education loans
- Some criminal restitution debts
- Certain personal injury debts
Chapter 7 bankruptcy is an intricate process, however, with a skilled bankruptcy attorney by your side can make things relatively easy. The bankruptcy lawyers are adept at handling cases and can help you keep maximum assets, with bare minimum going for liquidation. Many times, debtors can keep all their assets while receiving a discharge simultaneously. It is important to have an honest conversation with your lawyer regarding your financial situation so that they can help devise legal ways for you to get a fresh start. Chapter 7 bankruptcy can be an excellent way to get rid of your debt problems and stop foreclosure, repossession, wage garnishment, bank levies as well as threatening phone calls from creditors.
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May 20, 2019