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  • Why Do People File for Chapter 7 Bankruptcy?

    Why Do People File for Chapter 7 Bankruptcy?

    Call: 888-297-6203

    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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    • Everything You Wanted to Know About Bankruptcy

      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.


        *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.

      • Need to Update Your Bankruptcy Information? Here’s What You Should Do

        Need to Update Your Bankruptcy Information? Here’s What You Should Do

        Bankruptcy involves a lot of paperwork, both while filing for it and even after discharge. It is therefore important to have legal representation to get through with it smoothly. In case you are looking for legal representation, you can call 888-297-6023 to know more about bankruptcy and its discharge. Generally, post-bankruptcy discharge, creditors update information in their accounts which are eventually displayed on the credit reports. However, many times creditors don’t update the information. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, there are options available for individuals if their creditors haven’t updated the bankruptcy discharge information on the credit report.

        Since bankruptcy becomes a public record, the accounts listed in your bankruptcy are reflected in your credit report. In the case of the bankruptcy discharge, the same should be reflected in your credit report as well as bankruptcy record. Filing for bankruptcy involves mentioning all your creditors. Once the knowledge of your bankruptcy is provided to your creditors, they should ensure that the account is updated on the credit report to reflect its status. After you get your bankruptcy discharged, the accounts should also display the updated status. In case it does not, you can contact the creditor through the information provided on your credit report to ask them to update the accounts as discharged.

        Bankruptcy paperwork includes “Schedule” which lists all debts included in the bankruptcy filing. You can alternately send a copy of Schedule A, Schedule D or Schedule F to the address listed in credit report along with a copy of your bankruptcy discharge statement and a request to update the information in your credit report. Alternately, you can verify the information through the courts and update it online. Individuals can file for bankruptcy under Chapter 7 or Chapter 13. In the case of the former, no debts are repaid, and discharge is granted within a few months. This type of bankruptcy remains on credit report for 10 years from the filing date. Chapter 13 on the other hand, involves paying some portion of the debt over a course of 3-5 years. This bankruptcy remains on the credit report for a duration of 7 years from filing date.


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

          *Do you own a home?

          Are you currently working?

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

        • Is Bankruptcy an Answer to Debt Relief?

          Is Bankruptcy an Answer to Debt Relief?

          A disability may occur to anyone at any point in time, but the gaping fact is the treatment. The treatment of a person may be quite expensive. The person may not have enough and may have to take loans to get treated. The loan could mount unreasonably making it difficult for the person to clear it off. Getting a disability benefit may help him swing through the daily chores but will not help him clear the loans. With disability, the person cannot be employed for gainful income and hence is left with little or no resources to clear the debt. People stuck in such problems can opt for filing a bankruptcy case. For more detail information visit- Recovery Law Group.

          There are two chapters in the USA court that allows the debtor to file a case under bankruptcy- Chapter 7 & Chapter 13 Bankruptcy. The applicant needs to fill the form describing his situation and the need; as per their requirement, the legal representatives will offer suggestions.

          Chapter 7

          Chapter 7 is a one-shot method of clearing the debt. All debts are cleared in one shot with no liability left for later payment. A trustee is appointed by the court, who assesses the assets of the debtor and lists them under exempted and non-exempted properties. The exempted properties are retained by the debtor, while the non-exempted properties are sold/liquidated to clear the debt. The creditor must settle with whatever amount is gained by selling the non-exempted properties. The client before applying for Chapter 7 must realize that he /she may have to lose their asset/properties.

          Chapter 13

          Chapter 13 is another method of declaring bankruptcy. In chapter 13, a repayment plan is made for 3 or 5 years depending upon the source of income. A debt amount is ascertained by the trustee after evaluating the financial condition of the debtor. The creditor also has to agree on the amount. The amount is then divided into a monthly installment repayment plan that needs to be completed within 3 or 5 years. The time period cannot extend beyond 5 years.

          The client applying for chapter 13 can retain his/her properties but must arrange regular monthly payment to the creditor. The applicant can apply for bankruptcy under any one chapter, depending upon their situation and choice. For more information call on- 888-297-6203.


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

            *Do you own a home?

            Are you currently working?

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

          • Good News for Chapter 7 Debtors! Cannot Have Two Pending Cases Simultaneously Says Court

            Good News for Chapter 7 Debtors! Cannot Have Two Pending Cases Simultaneously Says Court

            For most people, filing for bankruptcy is the best legal way to get rid of insurmountable debt. Of the two chapters in which individuals can file for bankruptcy, Chapter 7 is preferred since it takes relatively less time to get discharge and thanks to the various exemptions, you are able to protect almost all your property. However, if despite filing for bankruptcy under Chapter 7, you are unable to get a discharge, it can result in huge stress on the individual. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, such an incident occurred with an individual who had filed for Chapter 7 bankruptcy. Despite the trustee filing a no-asset report, the case remained open and the debtor did not receive a discharge. After nearly 2.5 years the debtor filed a Chapter 13 bankruptcy case to get rid of the accumulating debts, however, this time, there was no lawyer involved.

            Since there exists a “Single Estate Rule” a debtor cannot have two bankruptcy cases pending simultaneously in court. This is because everything you own becomes part of the bankruptcy estate. Since your belongings remain unchanged, the same bankruptcy estate cannot be a part of two cases at the same time. If a debtor files for a Chapter 13 bankruptcy Dallas case before they got a discharge in a previously filed Chapter 7 case, the latter one is nullified. Since the debtor had filed the Chapter 13 bankruptcy case without an attorney, the court had given the leeway to the client to consult an attorney to consider which of the two bankruptcy cases (Chapter 7 or Chapter 13) dismissed. Thus, having an attorney by your side can make things easier for you. In case you would like to consult your case with expert bankruptcy lawyers call 888-297-6023.


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

              *Do you own a home?

              Are you currently working?

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

            • The 10th Circuit rules

              The 10th Circuit rules

              The 10th circuit court rules reprimand that the tax debt may not be exempted for the client under Chapter 7 if the income tax return is filed late. Income tax return debt can be discharged under chapter 7. However, it needs to fall under certain criteria. The income tax returns are a mandatory procedure that citizens of the USA need to follow every year. Tax debts can be huge, and the clients may seek discharge. You can visit Recovery Law Group for good advice.

              The income tax return debt can be discharged under Chapter 7 when-

              1. The tax debt is income-based for either State or Federal.
              2. The income tax return was last filed 3 years before applying for bankruptcy.
              3. The debtor filed the last return 2 years before applying for bankruptcy. This is under discussion in the 10th circuit rules. Whether to consider 2 years as late for filing a tax return to avail discharge in a bankruptcy case filed under chapter 7 bankruptcy.
              4. The income tax department must have evaluated the client’s tax returns 240 days before filing for bankruptcy.
              5. The debtor must be true and not dodging the tax laws by not filing at all or filing a fraud or dupe return.

              What does file of late tax return mean under the 10th circuit rules?

              When the client files his tax return 2 years before applying for bankruptcy it is considered as a late return. However, this point is still debatable and is under modification stage. A tax return is considered a late return when the IRS files a substitute return when all the debtors’ filing dates are expired. Apparently, a tax return may not be considered late if the IRS files the substitute tax return with acknowledgment of the debtor.

              The 10th circuit court rule may not consider the tax return ‘late’ payable 2 years prior the filing of bankruptcy if a substitute returns is filed with acknowledgment under Internal Revenue Code Section 6020(a). The client’s tax debt can be exempted as per the 10th circuit rule if the client is within this parameter.

              The final verdict

              Since, it’s still debatable, the case may go to the US Supreme court for the further outcome. However, for now, it is established that the tax return is late if the IRS files a substitute tax return within 2 years of applying for bankruptcy. Subsequently, the client will not acquire discharge on tax debts, even under chapter 7. You can receive more information by calling on-(888-297-6203).


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

                *Do you own a home?

                Are you currently working?

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

              • What Are the Possible Ways to Settle a Credit Card Judgment?

                What Are the Possible Ways to Settle a Credit Card Judgment?

                There are enough cases of credit card debts in Los Angeles. People have a surmounting amount to be paid as credit card loans. Most of these credit card loans are unsecured loans; which means the creditors cannot seize credit card owners’ assets if he/she fails to pay the loans. However, the creditor can take rescue and file a case against the debtor. Once he gets a judgment against the debtor, he can propel the debtor to respond in court and take steps to seize the debtor’s assets. For good advice on how to settle a credit card judgement, the debtor can connect to https://bankruptcy.staging.recoverylawgroup.com/

                There are three possible ways to settle a credit card judgment-

                1. Vacate the judgment

                Vacate a judgment means filing a case in court against the creditor to dismiss the judgment. When a debtor files to vacate a judgment, the judgment stands null and void. For proposing to vacate a judgment the debtor will need a lawyer. A lawyer files a legal motion against the creditor to vacate the judgment. He can make the case strong by convincing the court that the client was not rightly served with the judgment.

                The client can win the case and the judgment will be vacated. Apparently, the client is still liable to pay the creditors; because if the case stands true there is no way the client is excused. On top of that, the client will have to shell an extra sum as the lawyer’s fee. So, vacating the judgment may not be the best approach.

                1. Settle the judgment

                The client can seek a unanimous settlement with the creditor.  The creditor usually settles for a lesser amount than the actual loan amount to arrive at a settlement. The client must seek a written document to avoid future complications. The lawyer can help the client retrieve a written settlement document to clear the case.

                However, despite settling the judgment the client may have to bear with the judgment on his credit record for many years. This may not go well with the client’s reputation and may wish to avoid it. Hence, settling the judgment may not appeal to the client.

                1. Apply for bankruptcy

                The creditor can file a chapter 7 bankruptcy case in the court. This will although save the settlement amount, but the lawyer’s fees need to be paid by the client. This again will damage the reputation of the client and will stay on his credit card record for more than 10 years.

                Is there any other option?

                There is one good option that will retain the reputation of the client as well as settle the judgment. The client can ask the creditor to vacate the judgment in good faith and dismiss the lawsuit. This way the client is clear off the record and is able to save his reputation. Apparently, the creditor’s lawyer may not be happy with the deal. The debtor can make some effort to convince the lawyer by offering an extra package to the creditor’s lawyer. The small amount will be like a drop in the ocean to save and secure the client’s reputation with an upgraded credit card report.

                Things to keep in mind while settling a debt amount

                The entire procedure of settling the debt must be covered well in a written document signed by both parties. Without the written document there will be no strong proof of settlement. Hence the client must agree on a written document before paying the money. Secondly, the client must take into notice that despite settlement the client is not excused of tax on the forgone debt amount. He may need to pay the tax against the actual debt amount. To understand more call on 888-297-6203.


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

                  *Do you own a home?

                  Are you currently working?

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

                • Bankruptcy and Business Continuity

                  Bankruptcy and Business Continuity

                  The common illusion about bankruptcy is that a business might have to wrap up after bankruptcy or business will not be able to continue after bankruptcy. However, this might not be true in most scenarios. There are different sections under which bankruptcy could be filed, these maybe Chapter 7 or 11 or 13. The company structure, business activity, assets and the fixed or probable income available to fund a repayment schedule can help in determining the right section to file bankruptcy.

                  Factors of consideration for business continuity

                  • Is the business really making money?

                  Not every startup idea is a great venture, if your business is resulting in losses for a consistent period of time, you might want to reconsider if winding up is a better option. If nothing is going as per planned and this is for a longer period than you predicted, then it is time to wrap up the business. However, if the business did yield significant profits previously and this is just a bad phase due to temporary internal or external factors, it is worthwhile to consider letting the business flow until the external or internal factors are resolved.

                  • Assets and liabilities balance

                  The balance between assets and liabilities determines the sustainability of a business in the long run. If your calculation of assets is larger than liabilities, then it can be interpreted as a bad phase in business and removing the plug might not be the right option. On the other hand, if the liabilities exceed considerably over the assets, it is time to pull the plug. Instead of retaining such a business one can prefer starting a new one altogether, as growing liabilities, only create a bigger pothole that keeps sucking all potential assets and growth opportunities.

                  • Personal liability for business debts?

                  Personal liability on business debts can be a case with proprietary businesses or partnerships. The lenders might have access to personal assets for business debts. If there is potential to revive the business without seeking additional debts and buying time from lenders, that is the best option. However, if that seems to be difficult and if you already have your back to the wall, bankruptcy and business wrap up could be the only choice available.

                  Chapters under which business bankruptcy can be filed-

                  • Chapter 7

                  Chapter 7 bankruptcy Los Angeles is usually used by proper companies and businesses who are looking to wind up their business. There usually isn’t any exemption to prevent sale or liquidation of any company asset during business bankruptcy under Chapter 7 and hence, all the assets are usually liquidated for an equal share amongst the lenders. In a straightforward liquidation case, with minimum argument or dispute regarding creditor’s share, the liquidation can be settled outside court as it saves a lot of effort, cost and time.

                  However, in the case of complex debt arrangements and lender disputes, there is no choice but to opt for a legal procedure. This chapter is certainly not recommended for partnership or sole proprietors as their personal properties to the extent of secured debts could be attached for repayment. This can be prevented by the use of other chapters.

                  • Chapter 13

                  Chapter 13 is only for individuals so only sole proprietors qualify for this chapter. The process of qualifying for Chapter 13 or Chapter 7 also for that matter becomes a lot easier with business debts. This is the best alternative for the sole proprietors who wish to keep their business running and do not want to give up on any business or personal assets. By filing affordable Chapter 13 bankruptcy Los Angeles, you might discharge part of your unsecured debts and also maintain your business assets. As per stats, sole proprietors filing Chapter 13 may end up losing some of their business assets as they are short on cash and it isn’t the most feasible thing to carry around so much debt for 4-5 years of the repayment plan. That is another thought to be considered when filing for Chapter 13 as not all of your assets will be safe.

                  • Chapter 11

                  The partnerships, Limited Liability Corporations, general Corporations, etc., usually opt for Chapter 11 bankruptcy. The concept of Chapter 11 is based on Chapter 13. It emphasizes on a restructuring of debt with a feasible repayment plan that helps in business continuity. Being based on Chapter 13, Chapter 11 is not that straightforward as Chapter 13. It can get complicated and it is strictly recommended for use of an attorney specifically for Chapter 11. The prospective payment plan has to be feasible, practical and needs to be approved by all creditors on board. Apart from the complicated procedure, the overall expense is a lot higher and not recommended for small businesses. Reach out to 888-297-6203 for more intriguing facts and options in business bankruptcy.


                    *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.

                  • Save Your House with Chapter 13 Bankruptcy

                    Save Your House with Chapter 13 Bankruptcy

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

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

                    • Repay mortgage arrears

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

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

                    • Make mortgage affordable

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

                    • Get secured debts reduced

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

                    • Contest foreclosure

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

                    • Turn subsequent mortgages into unsecured debts

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


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

                      *Do you own a home?

                      Are you currently working?

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

                    • Role of Bankruptcy Exemptions in Chapter 7 & Chapter 13

                      Role of Bankruptcy Exemptions in Chapter 7 & Chapter 13

                      When a person takes a loan from a lender or creditor and is unable to pay back, he can file Bankruptcy in the USA. Filing Bankruptcy allows the debtor some relief in paying the loans. The debtor can file Bankruptcy under Chapter 13 & Chapter 7. While the debtor files bankruptcy he is granted exemptions. The exemptions may vary depending upon the law under which the debtor has filed bankruptcy- chapter 13 or chapter 7.

                      Chapter 7

                      Under Chapter 7 the debtor can be relieved or could be asked to clear partial or small amount of unsecured debt. This depends upon the liquid assets the debtor owns. The assets that can be sold to get money are liquid assets. Assets that can generate money and give value are non-exempted assets. Assets that cannot be cashed or brings minimum to no value are exempted assets. Much of the arguments go into what assets should be exempted.

                      The creditor’s bill is cleared so far as the non-exempted assets can encash and the rest of the debt amount is exempted under Chapter 7. This law is mostly used by debtors with limited means to clear their unsecured debts. The debtor is thoroughly scrutinized before the court gives nod.

                      Chapter 13

                      Under chapter 13 the debtor is not completely let off the debt, but his debt amount is broken into small monthly installments. The installments depend upon the liquid assets the debtor has. The value of the liquid assets is evaluated and as per the cashed amount the debt is cut into installment packet to be paid monthly. An amount is fixed by the court to be paid by the debtor. Once he pays it as per the repayment plan, the remaining unsecured loan is discharged.

                      Bankruptcy exemptions

                      What are the assets that may come under Bankruptcy Exemptions? The debtor may fear to lose his valuable assets. However, after declaring Bankruptcy you can keep some assets. Under the Bankruptcy law, the debtor can save some of its assets. The debtor may have some assets that may have an emotional attachment to the debtor. An amount is fixed by the court that protects the assets that come under that amount. Such assets may be an old car, furniture, etc.

                      Wildcard exemption

                      The debtor who declares bankruptcy under Chapter 7 may in some cases get lucky by a wildcard exemption. This card can help the debtor save his most asset. The wildcard exemption can be applied to any of the non-exempted property of the debtor, which he can save from being sold.

                      Non-exempted assets

                      The aim of bankruptcy is to provide a debtor a new beginning free of debts. However, in no form, he can keep products like-

                      • Luxury cars/watches/yachts/expensive artwork and many such high-value items that can be exchanged to good money to pay off the unsecured debts.
                      • Jewelry can fetch a good deal of cash and hence is not exempted. However, jewellery with sentimental value like wedding/engagement ring under a certain amount can be exempted.
                      • Pets like a racehorse or a show dog that can be sold at a great price are non-exempted. However, pets that offer no monetary value come under Bankruptcy Exemptions.

                      Bankruptcy exemption in State and Federal laws

                      A state may have a different list of exempted items than Federal law. A debtor must either follow State or Federal law. Some States can be liberal and allow the debtor to choose between the State or Federal law of exemption. However, some states may have a mandatory rule to employ the State rule. The debtor must stay in a state for minimum of 2 years to qualify for the State Law.

                      Non-Bankruptcy exemptions in Federal law

                      The Federal law has designed a set of federal exemptions that come under non-bankruptcy law. The debtor can enjoy this benefit and save his assets, as this law works around the similar ground as bankruptcy exemption law.  However, he can only entertain Federal non-bankruptcy law, if he is employing the State’s Bankruptcy exemption law.  In no way, the debtor can entertain both Federal Bankruptcy exemption law and Federal non-bankruptcy law.

                      The bankruptcy exemption rule is employed to help the debtors lead respectable life after declaring bankruptcy. In no way, the debtor must think of manipulating the law to save his valuable liquid assets and getting through without clearing his unsecured loans.


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