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Tag: Chapter 13 Bankruptcy

  • Bankruptcy by Chapter 13 FAQs

    Bankruptcy by Chapter 13 FAQs

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

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

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

    • Fees

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

    • Priority debts

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

    • Secured Debts

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

    • Unsecured Debts

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

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

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

    1. Can Chapter 13 prevent home foreclosure?

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

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

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

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

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

    1. Whom to contact for best assistance?

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


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

      *Do you own a home?

      Are you currently working?

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

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

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

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

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

      Debts are classified into three types:

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

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

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

      • If income is below the state median

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

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

      • If income is above the state median

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

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

      • If bankruptcy filer has significant property

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

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

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


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      • What Happens in a Chapter 13 Confirmation Hearing?

        What Happens in a Chapter 13 Confirmation Hearing?

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

        Who can object to the repayment plan?

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

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

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

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

        Type of objections to the repayment plan

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

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

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

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

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

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

        Confirmation hearing details

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

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


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

          *Do you own a home?

          Are you currently working?

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

        • What Do You Understand by Disposable Income?

          What Do You Understand by Disposable Income?

          Many people find bankruptcy a great way out of spiraling debts. Consulting a bankruptcy attorney to find out which bankruptcy chapter suits your condition the best is important. However, people come across the term ‘disposable income’ too often during bankruptcy discussions and are often confused as to what it means. According to bankruptcy lawyers of Los Angeles based firm Recovery Law group, disposable income is the amount of your monthly gross income which remains after all essential bankruptcy expenses are subtracted from it.

          Disposable income is important to decide which chapter of bankruptcy you qualify; Chapter 7 to get a discharge of debts or Chapter 13. After claiming deductions, you can use the actual cost of certain expenses. Some of the deductions you are allowed include food and clothing, taxes, housing and utilities, life insurance, transportation costs, involuntary payroll deductions, spousal and child support, healthcare costs, education costs, etc. Determination of disposable income is done using forms which depend on the chapter under which you intend to file bankruptcy.

          Chapter 7 bankruptcy requires you to pass a means test. You need to complete the Chapter 7 Means Test Calculation form in this case. You find your disposable monthly income by deducting allowed expenses and multiply the amount by 60 months. In case the figure exceeds the maximum amount allowed (mentioned on the form) then you can’t qualify for the discharge. Also, if your disposable income can pay 25% or more of your unsecured debts like credit card and medical bills and personal loans, you will be able to qualify for this chapter of bankruptcy.

          Chapter 13 bankruptcy requires you to file Chapter 13 Calculation of Your Disposable Income form. The monthly disposable income is calculated after deducting expenses. This amount is used to pay off your unsecured nonpriority debts every month for 3 to 5-years as per the repayment plan.

          Since every case is different, it is important to find out which chapter of bankruptcy you qualify for. This can be done by consulting with expert bankruptcy attorneys. In case you would like to discuss your case, call 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.

          • What is Chapter 13 Debt Release?

            What is Chapter 13 Debt Release?

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

            What is Chapter 13 bankruptcy plan?

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

            How to make a payment plan?

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

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

            How to calculate your disposable income?

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

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

            Getting your Chapter 13 payment plan approved

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

            How to avail Chapter 13 release of unsecured debt?

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

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


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

              *Do you own a home?

              Are you currently working?

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

            • Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

              Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

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

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

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

              Can lawyers help in such cases?

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

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


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

                *Do you own a home?

                Are you currently working?

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

              • Is it Possible to get rid of Tax Debts in Bankruptcy?

                Is it Possible to get rid of Tax Debts in Bankruptcy?

                Filing for bankruptcy, especially under chapter 7, can help get rid of several unsecured debts like credit card bills, medical bills, etc. However, certain debts like government taxes, or money owed to IRS or state of California, may or may not be discharged during bankruptcy. It is important to seek legal counsel, suggest Los Angeles based bankruptcy law firm Recovery Law Group to know more about this matter. To get your state and federal taxes discharged during Chapter 7 bankruptcy, you need to clear certain hurdles.

                1. More than three years have passed from your tax due date.

                It is important that it has been more than 3 years since your taxes were due for getting a chance at having tax debts discharged. In case your 2014 taxes were due on April 15, 2015, the discharge date for 2014 taxes is pushed back to April 15, 2018. An extension could further delay the timeline.

                1. Your tax returns have been filed for more than 2 years.

                IRS and California State, both taxing authorities ensure that they have enough time to study the tax return papers and collection process. Filing of late tax returns and then filing of Chapter 7 bankruptcy case the same time will not provide them with enough time to evaluate your income, assets, and your claims. Filing tax returns at least 2 years prior to filing provides ample enough time to ensure that everything is in order. If your tax returns are filed and sorted for two years or more, you have a better chance of getting rid of tax debt during bankruptcy.

                1. Tax debt has been assessed for 240 days prior to filing.

                State and federal taxes are assessed at different times. While IRS assesses taxes within 6 weeks of return filing, every state has a different timeframe. Thus, your tax debts must have been assessed at least 240 days prior to bankruptcy filing to improve your chances of getting rid of tax debts.

                1. You haven’t committed fraud.

                Everyone deserves a second chance. In case you have a legitimate reason for not filing of taxes, you don’t have to worry much; however, if you made any attempt to cheat the system (like filing false tax returns, etc.) you reduce your chances of getting a discharge abysmally.

                Can you get rid of tax debts using Chapter 13 bankruptcy?

                In this case, a repayment plan is drafted keeping in mind your disposable income, your assets, and your debts. Priority taxes (tax debts due for less than 3 years) need to be paid in full, generally without penalties, during Chapter 13 repayment plan. Any non-priority taxes (tax debts) are treated in a similar fashion to unsecured debts like credit cards, etc. They are paid according to the debtor’s disposable income as per the repayment plan. Thanks to the automatic stay, IRS and the state authorities cannot initiate any collection actions including wage garnishments, threatening phone calls, lawsuits or foreclosure.

                People are often confused regarding which chapter of bankruptcy would suit their case. It is therefore important to consult expert bankruptcy lawyers at 888-297-6023 to find out if bankruptcy or debt negotiation is a better option for you.


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

                  *Do you own a home?

                  Are you currently working?

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

                • Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

                  Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

                  Most people survive by using credit cards. Unfortunately, credit cards charge up very high-interest rate somewhere nearly 25%. Ultimately you end up paying much more than your debt. In the long run, you end up in debt for a long period of time. Let’s say you owe $20,000 on your credit card bill. You will continue making a minimum payment over a 20-year period and end up paying nearly 5 times more than what you actually borrowed. With a monthly payment of $400, you will be able to clear your debt in 23 years! You also end up paying nearly $100,000 as interest on a $20,000 loan. Even if you increase the payment you still end up paying a lot of interest. Even if you double your payment to $800 you end up paying $8000 as interest over the same principal amount. Considering that this is a lot of money, most people are looking for better options to pay off their debts.

                  Despite increasing your monthly payment, you still end up paying a lot of interest on your credit card debts. Dallas based bankruptcy law firm Recovery Law Group lawyers suggest filing for bankruptcy under Chapter 13 as a viable option. Bankruptcy seems a good solution. Filing for chapter 13 results in the creation of a repayment plan, in which, you will make monthly payments to your bankruptcy trustee who would distribute it amongst your creditors in a pre-determined share. The payments continue to be made over a period of 3-5 years. After the end of your repayment plan, any unsecured debts such as credit card debts, personal loans, and medical bills are discharged.

                  During chapter 13 bankruptcy, for a debt of $20,000, your monthly payments come to $425. Thus, you end up paying a nominal amount of money ($25,500) towards your credit card debts over a 5-year period and end up saving nearly 15 years of your life. Though monthly payments do not go down, you end up saving nearly $85,000! Chapter 13 also helps for other loans like those for home or car. However, since filing for bankruptcy is a matter of grave concern it is important to consult an expert bankruptcy attorney before making any decision. In case you are looking for a bankruptcy attorney to consult for your case, 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.

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

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

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

                    What is property dumping?

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

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

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


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

                      *Do you own a home?

                      Are you currently working?

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

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

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

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

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

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

                      Do you qualify for the Chapter 13 debt limits?

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

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

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

                      How does change in limit cap impact an individual?

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

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

                      What is not included in the Chapter 13 debt limits?

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

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

                      What if you still are not eligible for Chapter 13?

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


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

                        *Do you own a home?

                        Are you currently working?

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