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  • How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

    How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

    Attorney fees are one of the important considerations when filing bankruptcy because it has to be paid 100% and any type of expense during bankruptcy could be burdening. Establishing a relativeness between what you had expected from an attorney on a price bracket helps you determine and adjust your attorney needs. To learn more about bankruptcy, attorneys and law log on to Recovery Law Group.

    How does the attorney fees vary based on location?

    It is obvious to see a difference in pricing based on location. For instance, an attorney in California will be far more expensive than an attorney in Dallas. The cost of living and the overall expense of the city plays an important role in attorney pricing. Apart from this, there might be the availability of skilled attorneys in abundance in some areas like New York, New Jersey, for instance, however, there might be a lack of attorneys in a small town like Galveston. That too influences attorney pricing. The average range is between $1,200 to $2,500. If you are lucky you might find a decent attorney for $700 also if your case is pretty straightforward and isn’t a mind boggler. Cases that are tricky and require ways to protect your assets can increase attorney fees.

    Bankruptcy court interference on attorney fees

    There is a phrase called presumptively reasonable or no-look fee. Since the case is related to bankruptcy, this is a way how bankruptcy court makes sure the bankruptcy filers are not exploited with high attorney fees. It is usually not a cap or a threshold of fees, but the bankruptcy court will look into the fees charged by the attorney if it is beyond the presumptively reasonable fee to determine the reason for it. If the bankruptcy court is not satisfied with the reasoning, it can ask the attorney to refund a part of the fees to the bankruptcy trustee, who will use the same for settling the debts.

    Such investigation or look in by the bankruptcy court is more often seen for filers filing for Chapter 13 bankruptcy. Also, the bankruptcy court can look into the fees even if it is presumptively reasonable. If the case is tricky, the attorneys can charge higher than the presumptively reasonable but will need to convince the court with regards to the same. A set procedure based on the court has to be followed to justify the high fees.

    Low fees advertisements, trap or deal?

    A lot of advertisements on social media as well as outside through banners and hoardings are visible for low-cost attorneys. Are these traps or an unmissable deal? Under most circumstances, these advertisements are deceptive. The advertisement may state ‘starting from’ in small letters under the low-cost banner. These attorneys usually use an a-la-carte system of service, wherein they keep increasing the amount based on requirement and it ends up higher than a normal attorney would charge. Many attorneys are seen to follow this kind of fee system especially around Los Angeles, Dallas, etc.

    On the other side, there are a few attorneys who provide services at the price promised in the advertisement. It is about collecting reviews, feedback, and testimony from different sources before opting for one. Advertisement solely should not be a decision influencer.

    Attorney fees do not necessarily correlate to their qualifications

    It is a basic tendency to interpret high fees with higher experience and qualifications. It might not be the case with respect to bankruptcy attorneys. Different attorneys follow different ways of pricing. While some charge a small fee or offer a free initial consultation. Considering these attorneys to get some legal advice as well analyze the prospects of the attorney for your case can be an ideal option.

    The other option to get hold of an excellent attorney is through referral. Based on prior experiences if you seek any referral of an attorney from your friends, family members or relatives, it can just prove a lot easier. The approach to identifying a good doctor is what you need to identify a good doctor. While one is important for health, the other one is important for wealth.

    Roles and responsibilities of an attorney

    A bankruptcy trustee has to follow a procedure and put forward the best solution to offer a beneficial and legally correct position for the filer. The blueprint of the attorney process could be listed as follows-

    1. Analyze the right chapter to file – The attorney shall analyze which is the right chapter to file. He can ask the following questions to suggest the best option-
    • Marital status and number of dependents
    • Income and work location
    • History of living, if you have relocated in the recent 2 years
    • Have you filed your state and federal income taxes in the recent 4 years?
    • Have you filed for bankruptcy in the last 8 years?
    1. The urgency of the bankruptcy – Sometimes, time is the most vital aspect of filing bankruptcy. If your basic needs are being impacted and you need to determine the best alternative and probably file for bankruptcy right away. Below are some questions attorney may use to make or suggest a wise option-
    • Affected by a lawsuit?
    • Are you facing any foreclosure, especially home mortgage foreclosure?
    • Are you seeing wage garnishment?
    • Has any lender or creditor withdrawn any money from your account?
    • Concerned about potential vehicle possession by the lender or any other asset which is collateral?
    • Any other pressing issue that needs to be addressed to the earliest?
    1. Property status – The attorney would not know if your property is at risk unless and until you disclose your fears and property details. Under Chapter 7, more often than not, most filers are able to secure most of their properties. However, if you are about to lose some of your assets, the attorney can evaluate the net benefit out of debt release and compare it with the value of property lost and then help you make a wiser decision. Some of the questions that an attorney should ask to better assist can be listed as follows-
    • Have you been injured in an accident in the recent 2 years?
    • The money in all of your bank accounts
    • Any stocks held, profit sharing investments, and/or retirement balances
    • Do you have any anticipated inheritance in the near future?
    • The fair market value of personal property like jewelry, vehicles, real estate, sports equipment, collections, etc.
    1. Will bankruptcy set off the debts – This is an important question an attorney has to address especially when filing for bankruptcy under Chapter 7. There can be scenarios where you might not get any debt release because all the debts are non-releasable in nature. Still, filing bankruptcy can be a masterstroke under some circumstances. The attorney can also suggest you, alternatives to Chapter 7, if it isn’t proving to be that beneficial. For addressing this question, the attorney can puzzle you with the following questions-
    • Do you have any unsecured debts like payday loans, credit card debts?
    • Any tax payments which are due?
    • Alimony or child support arrears?
    • Any student loan liabilities?
    • Mortgage and/or vehicle loan balances

    Challenge analysis

    After determining the best approach, the attorney shall analyze potential challenges in attaining the goal. The bankruptcy trustee might raise several objections and might also suspect possible fraud. The attorney has to proactively prepare himself or herself and his client for the prospective problems or challenges. From the process of initiating bankruptcy, paperwork, advocating the client in the bankruptcy court, offering legal/financial advice, etc., are some basic responsibilities of an attorney. To get the assistance of some of the best attorneys in your town just dial in +1 888-297-6203.


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      *Do you own a home?

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    • Chapter 7 Bankruptcy and Medical Debt

      Considering the rampant spread of diseases across the world, having health insurance is mandatory. However, despite the assurance of insurance, people still end up accumulating a huge amount of medical debt. Getting rid of the unsurmountable medical debt is a reason why many people file for bankruptcy. However, the fate of any debt during bankruptcy depends on which kind of debt it is, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group.

      Debts are classified broadly into four categories:

      • Secured debts

      If the creditor has a lien on your property, such as home or car, and can foreclose or repossess the said property in case of non-payment of dues, then, the debt is known as, secured debts. In this case, the property acts as collateral. Examples include car loan and mortgages.

      • Unsecured debts

      Any debt which is not secured, by a property is termed as unsecured debt.

      • Priority debts

      Priority debts are non-dischargeable, i.e. they are not wiped off during bankruptcy. These include domestic support (child support or alimony) and certain taxes owed to the government. Priority debts are also unsecured but cannot be discharged during bankruptcy.

      • Nonpriority unsecured debts

      These debts are generally the last to be paid in a Chapter 7 bankruptcy. Most of these debts, apart from a student loan, are discharged without repayment in bankruptcy. Example of such debts is credit card, medical debts, and unsecured personal loan.

      What happens to medical debt in Chapter 7 bankruptcy?

      Medical debts are nonpriority unsecured debts and treated accordingly. In the case of Chapter 7 bankruptcy Dallas, your bankruptcy trustee uses your non-exempt property to pay off your creditors. The payment is made first towards your secured debts, then your priority debts and finally towards nonpriority, unsecured debts. Any remaining unsecured debts are discharged in Chapter 7 bankruptcy. It is thus, the best option to get rid of a large amount of unsecured nonpriority debts. However, qualifying for Chapter 7 bankruptcy is difficult. You need to pass the disposable income means test, i.e. your income must be less than the average income of a household of similar strength in your state. This chapter of bankruptcy is not ideal for debtors who have a significant amount of non-exempt property as that will be sold off to repay your loans. It is therefore important to contact expert bankruptcy lawyers at 888-297-6023 to know whether Chapter 7 bankruptcy is ideal to get rid of medical debts in 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.

      • Automatic Stay – Way to Stop Your Creditors

        Automatic Stay – Way to Stop Your Creditors

        One of the best advantages that bankruptcy can offer debtors is an automatic stay. this puts an immediate end to all collection actions and any civil lawsuit filed against you by the creditors, government or collection agencies. The upside of the automatic stay as per Los Angeles based bankruptcy law firm Recovery Law Group  is that it can help you prevent being evicted or protect your property from being repossessed or foreclosed on, utilities being disconnected or wage garnishment. For more information on automatic stay, call 888-297-6023 and speak with expert bankruptcy lawyers.

        What can automatic stay prevent?

        The automatic stay can come in handy in several emergencies like:

        • Utility bills. In case you are behind on utilities like water, gas, telephone or electricity and face disconnection, the automatic stay can prevent it for a minimum of 20 days. however, you need to pay a deposit to ensure future payment.
        • Foreclosure. The automatic stay prevents the proceedings of foreclosure. You can catch up on past payments in the Chapter 13 repayment plan if you wish to keep your home. However, if you are behind on your payments in a chapter 7 bankruptcy case, an automatic stay is a temporary relief.
        • If the landlord has a judgment against you, or they allege you are endangering the property then automatic stay cannot help. In other cases, the automatic stay may provide temporary relief, however, the landlord might ask the court to lift the stay and allow eviction.
        • Wage garnishments. the automatic stay puts an end to collection actions like this. You can discharge qualifying debt like credit card or personal loan dues. However, alimony and child support debts cannot be discharged. Priority unsecured debts are dealt with differently in different bankruptcy chapters.
        • Overpayment of public benefits. The agency is entitled to collect any overpayment made from future checks or from you directly. The automatic stay prevents the collection but does not prevent the agency from terminating benefits.

        In what circumstances automatic stay is not of much help?

        An automatic stay cannot help you in some cases like:

        • Tax proceedings. IRS can audit you, issue tax deficiency notice and tax assessment, demand tax return or payment of assessment despite the automatic stay. However, there can be a temporary pause to issue of tax lien by IRS or seizing your income or property. The taxes could get discharged in Chapter 7 bankruptcy Dallas, or you might end up paying the debt in Chapter 13.
        • No respite from legal actions. A lawsuit for paternity establishment, modification or collection of spousal or child support won’t be stopped. Similarly, any criminal proceeding against you (sentence, paying fine, community service, ) won’t be stopped by the automatic stay.
        • A loan from the pension. Money can still be withheld from your income despite automatic stay to repay loans from some pensions like IRAs and job-related ones.
        • Numerous filings. In case you have a pending bankruptcy case from the previous year, the automatic stay lasts only for 30 days unless the creditor or the trustee asks for its continuation. In case any creditor files for a motion to lift the automatic stay, you will need to prove that the bankruptcy case was filed in good faith and the automatic stay protection should continue.

        Can creditors resume collection action?

        Creditors can ask the court to lift the automatic stay sanction by filing a motion in bankruptcy court. This is generally done in case of a foreclosure, tenant/landlord dispute or a lawsuit in a different court. If the creditor can show that they will lose money with automatic stay in place and no benefit/harm will come to other creditors, the court might agree.


          *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.

        • Are There Alternatives to Bankruptcy?

          Are There Alternatives to Bankruptcy?

          When faced with huge financial problems, people often resort to filing for bankruptcy. Undoubtedly, it offers great respite for people, especially when it comes to harassing collection actions from the creditors. However, bankruptcy can negatively affect your credit report. According to Dallas based bankruptcy law firm Recovery Law Group, there a number of other viable options are also available for people struggling with debt. To know more about them you can call 888-297-6023 and speak with expert bankruptcy lawyers.

          The alternate options depend largely on what your primary objective for filing bankruptcy is. If you wish to get respite from the harassing collection actions of creditors, you could opt for state and federal debt collection laws. Alternately, if you have some assets which you are willing to part with, you can negotiate with your creditors. Paying them some money from selling dispensable assets can buy you some time and goodwill from the creditors. You might even be able to settle your debts at less than what you owe. If, however, you are not so great with negotiations, you could seek help from non-profit debt or credit counseling agencies. You can find a state-wise list of the approved credit counseling agencies which are United States Trustee approved as completion of the course is mandatory for debtors prior to a bankruptcy filing.

          Debt counseling

          The credit counseling agency has a debt management program which is like the repayment plan in Chapter 13 bankruptcy Dallas. The advantage of choosing it over bankruptcy is that no record of debt management appears on the credit record. Having a bankruptcy on your credit record can affect your chances of getting a loan, credit cards, and even job prospects. However, opting for the program has some demerits too:

          • The automatic stay in bankruptcy protects collection actions, even if you miss a payment. There is no such provision in the debt management program.
          • You are required to pay your debts in full in case of debt management while you can pay a fraction of your unsecured debts during Chapter 13 and the remaining debts get discharged at the end of your repayment plan.
          • Many debt management and settlement companies are in the business of collecting fees for their services and may cause you more harm than benefit.
          • There have been instances of scams reported, where such companies receive funds from creditors and there might exist a conflict of interest in such cases.

          If you are “judgment proof” i.e. have little income and property, you can continue to remain in debt without filing for bankruptcy or seeking any other recourse. Since you have limited property and meager income, any creditor trying to collect from you will be able to get nothing. Unless you draw attention to yourself by refusing to pay government taxes, or spousal or child support, you cannot be thrown in prison for your inability to pay your debts. Moreover, essentials like clothing, personal effects, household furnishings, food or social security, public assistance or unemployment benefits cannot be taken by the creditor.


            *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.

          • Which Debts Need to be Paid in Chapter 13 Bankruptcy?

            Which Debts Need to be Paid in Chapter 13 Bankruptcy?

            When you file for bankruptcy, all debts are not supposed to be paid in a similar fashion in Chapter 13 bankruptcy case. According to Los Angeles based bankruptcy law firm Recovery Law Group, the amount you need to pay depends on whether the claim is a secured, priority or an unsecured claim. In case you are confused regarding the aspects of bankruptcy, contact with expert bankruptcy lawyers at 888-297-6023 to clear your doubts.

            Secured claims

            Those debts in which the creditor has collateral, These include car loans and mortgages. Payments of the secured loan depend on how long the loan has been taken; is your loan underwater and the rules of the court. Non-payment of debt in case of a secured loan will result in the creditors collecting the collateral and selling it to clear the debt. Filing for Chapter 13 bankruptcy can help you protect your property if you stay current on our payments and pay off any arrearages during your repayment plan. Some important points to remember are:

            • In case your payments are intended to last longer than the repayment plan (as in the case of mortgages), you are not required to clear the debt in
            • You have the option of cramdown where you can reduce the payment of your car or any other property to the current market rate.
            • A second or third mortgage can be wiped out by stripping the lien.
            • You can also catch up on arrearages through the repayment plan.

            In case of mortgage debts, you need to make monthly payments over the period of your repayment plan and even after the case ends, depending on how long the secured debt was taken for. If you are behind your payments, you can catch up through the repayment plan. You need to pay the arrears and the interest you incurred over the period of your repayment plan.

            Any past due to property tax can be repaid with full interest over the period of your Chapter 13 repayment plan. Similarly, you can use the repayment plan to catch up on your car loan. You need to pay the entire balance before your repayment plan ends. You can ask for a cramdown of your car loan to the amount the vehicle is currently worth if you had purchased the car 910 days prior to a bankruptcy filing. You end up paying the market value of the car along with the interest through the plan. Any remaining due is treated as unsecured debt.

            Unsecured claims

            These types of claims do not have collateral attached and hence the creditor cannot take any property if you cease to make payments on the loan. Unsecured claims are of two kinds:

            • Priority unsecured claims

            There is no collateral involved but they are prioritized over non priority unsecured claims when it comes to paying debts. These claims are not discharged during bankruptcy and you need to make payments towards them throughout the Chapter 13 repayment plan. These debts include any recent income tax debts, past due child or spousal and administrative expenses.

            • Nonpriority unsecured claims

            Any claim which does not fall in the above categories constitutes a non priority unsecured debt. These include personal loans, credit card debts, medical bills, and utilities. A percentage pro rata share of your disposable income or the value of your exempt property (whichever is higher) is used to pay for your unsecured claims. In most cases of Chapter 13 bankruptcy Dallas, a small portion of the unsecured debt is paid, and the remaining 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.

            • When is Chapter 13 More Advantageous Than Chapter 7?

              When is Chapter 13 More Advantageous Than Chapter 7?

              The common tendency of bankruptcy filers is to believe that Chapter 7 is better than Chapter 13. Yes, Chapter 7 has many benefits, but it can outrightly not be regarded as the best alternative compared to Chapter 13. There are many scenarios when Chapter 13 can prove more advantageous than Chapter 7. Every bankruptcy chapter has some or the other benefits and flaws. To learn more about all the Chapters and their technicalities log on to Recovery Law Group. Some of the Chapter 13 benefits over Chapter 7 can be listed as follows-

              • When you are not eligible for Chapter 7

              If you fail to be eligible for Chapter 7, well the only option available could be Chapter 13. In that scenario, Chapter 13 is beneficial. In other words, it is easier to qualify for Chapter 13 than Chapter 7. There is a median test as well as a means test to be eligible for Chapter 13. The calculation can become slightly intriguing but the straightforward debt thresholds for Chapter 13 make it a lot easier to determine if you qualify for Chapter 13 or not.

              • Safeguarding your car and other important assets

              Even if you are eligible for Chapter 7 after undergoing the complicated calculations, applying through Chapter 13 might still be a better option. If you are running behind the payment schedules of your car mortgage, you get to keep your car as well accommodate the payment of the arrears in the proposed payment plan over the next three to five years.

              • Managing the priority and non-releasable debts

              If you have a larger portion of debts that cannot be released, Chapter 13 is the right option for you. Child support, alimony, tax debts, etc., are a few examples of non-releasable debts. If your debt constitutes of a good portion of these debts, then Chapter 13 is a very good option. You get sufficient time period of 3-5 years to pay off these non-releasable debts, while you end up without assets as well as liable to these non-releasable debts with Chapter 7 bankruptcy code Dallas.

              • Time is all that you need

              Sometimes, people come across a stage when nothing is working well for them and it is usually all about time. A relaxed phase of 2-3 months can put you back on track with your finances and help you pay off all your dues. This time is very difficult to get especially when you are falling behind several payments across lenders. If you have a steady flow of income and time is all you need to pay off your debts, Chapter 13 can help you close most your debts as well keep all your assets intact. This is possible due to a phenomenon called ‘automatic stay’ which is applied as soon as you apply for bankruptcy. Some salient features of ‘automatic stay’ can be listed as follows-

              1. The lender cannot garnish your wages, or withdraw your cheque, funds from the bank account or make such request to your bank
              2. The creditor cannot repossess your secured loan assets like a car or jewelry, or any other asset kept as collateral
              3. The lender cannot foreclose a home mortgage either
              4. The creditor cannot initiate any suit against you for defaulting payments

               

              • If your tally of a nonexempt asset includes an asset you had like to keep

              If you have a nonexempt asset which shall be liquidated during the course of Chapter 7 bankruptcy procedure, Chapter 13 becomes an obvious choice to safeguard your asset as none of the assets are repossessed or liquidated under the Chapter 13 bankruptcy.

              • To relieve you co-debtor

              If there is any guarantor for any of your debts, the co-signer or co-debtor can have all the possible troubles of recovery with Chapter 7 bankruptcy. The filer is safe, but the guarantor or co-debtor isn’t. The lenders will go after the guarantor to recover as much of dues as possible. This could be very disturbing for the co-debtor. With Chapter 13, there is no such hook on the co-debtor since you have proposed to payout most of the debts in the next 3-5 years.

              To know more about Chapter 13 and Chapter 7 technicalities, formalities, applying details and to discuss what is best in your case, call us now at 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.

              • Tips to Qualify For Chapter 13 Bankruptcy Code

                Tips to Qualify For Chapter 13 Bankruptcy Code

                There is a specific debt threshold for filing Chapter 13 apart from the regular income criteria. The debt of the filer has to be under the threshold in order to qualify for Chapter 13. Additionally, he/she has to possess sufficient income in order to sponsor his/her future payment plan. This is only possible if there is a considerable amount of disposable income, which is the net of income and some basic expenditures. To know more amazing stuff about bankruptcy and eligibility criterions, log on to Recovery Law Group now. If you just compared your debts with the Chapter 13 debt threshold, if the outcome was a non-qualification, you need not be disappointed as there are some strategies or tips to still qualify for Chapter 13.

                What is the debt threshold limit as of now?

                The recent data as per April 2019 caps secured debts as well as liens to $1,257,850. The unsecured debts have been capped up to $419,275. If your current secured and unsecured debts fall below the threshold, there are no concerns. In this case, you are eligible for Chapter 13, until and unless you hold a consistent source of income. However, if your debts exceed any one of the threshold caps, you may want to consider some smart tricks to try and qualify for Chapter 13 bankruptcy.

                Strategies for qualifying to Chapter 13

                • Reassessing total debts

                The first option to try for qualifying for Chapter 13 would be to verify if all the debts need to be matched up to the threshold or not. For instance, some debts like contingent debts which creates a liability only when a particular situation occurs, or a scenario are developed is not accounted for when verifying for the debt thresholds for eligibility. If you have included contingent debt in your total secured or unsecured debt, you can just exclude the same for determining eligibility.

                Similarly, the ‘unliquidated debts’ are also not usually included in the tally of secured or unsecured debts. Unliquidated debts are debts which cannot be realized to the exact dollar. This can be a lawsuit or an injury or an accident claim. Such debts can also be ignored when determining total secured/unsecured debts for qualification purposes. Another important point to note is that these debts still need to be disclosed while filing bankruptcy and the lender/beneficiary details shall be provided with other lenders or creditors.

                • Lien stripping

                A single type of debt can be categorized into secured and unsecured debt based on the value of lien or the fair market value of the asset attached. The whole process is termed as lien stripping. This is very useful if your secured debt portion is exceeding the threshold but there is a significant gap between the actual unsecured debts and the cap. This will increase your unsecured debts to reduce your secured debts if that is what you want to qualify.

                • Separate bankruptcy filings

                Married people need not opt for the same chapters when applying for bankruptcy. If one person qualifies for Chapter 13 and the two together don’t, one of the spouses can opt for Chapter 7 bankruptcy based on what turns out to be beneficial. This is especially extremely beneficial if one of the spouses has a larger amount of unsecured loans that could be released almost completely under Chapter 7 bankruptcy code. This procedure is not an easy one and can be extremely tricky. Getting hands-on with an experienced attorney is a must for such kind of strategies. It could be just a phone call away at 888-297-6203.

                • Bankruptcy court’s discretion

                Sometimes, the bankruptcy court can modify the thresholds of the debt limit. This is quite rare but can happen none the less. This is commonly seen when in case of a couple where both spouses individually qualify for Chapter 13, the court may allow the proceedings to go further a single case. An experienced attorney in your city may be Dallas, California, or Los Angeles should be able to guide you with some tips to get a discretionary benefit.

                How about considering Chapter 20 as an alternative?

                After evaluating all these potential fixes or tips, if you still aren’t able to qualify for Chapter 13 bankruptcy Dallas, Chapter 20 might not be a bad idea either. Chapter 20 is a combo of Chapter 7 and Chapter 13. Probably a total of 13 and 7 too. Firstly, you let go all your unsecured debts by filing for Chapter 7 and then repay the remaining debt after partial asset sale or liquidation in the Chapter 13 way. You can decide to keep the assets you want and liquidate the assets to set off some of the secured debts and also avail a partial discharge of the unsecured debts too. However, the remaining debts secured and unsecured will need to be paid in full over Chapter 13 payment plan for the next 3-5 years. Since you would have already availed a partial discharge or release of debt under Chapter 7, you would not be eligible to take one more through Chapter 13.

                This can certainly get tricky but with sorted and experienced attorney guidance can always make such complicated cases a lot easier. Do not forget to log on to the website or dial in to resolve your bankruptcy problems in the smoothest way possible.


                  *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.

                • How to Protect Your Home during Bankruptcy?

                  How to Protect Your Home during Bankruptcy?

                  Most people take mortgages when they purchase their house. With time the property value might appreciate or depreciate. Being unable to make mortgage payments might send you in debt. When you file for bankruptcy, you have options to save your home. However, an accurate assessment of what your home is worth is essential. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group , when you file for bankruptcy, some equity of homestead exemption is available to protect your home. Individuals can opt for federal or state exemptions (if the choice is available in their state). The exemptions vary from state to state. Contact expert bankruptcy lawyers at 888-297-6023 to find out how much homestead exemption is available in your state and how you can protect your home during bankruptcy.

                  What is your home worth?

                  It is important to know the accurate value of your home in order to protect it. This is important because you can protect up to a fixed amount of equity in the home when you file for bankruptcy. To calculate the equity in your home, you need to have your property evaluated, and deduct mortgage balance from the amount. If this amount is less than the homestead protection available, then you can protect your home during bankruptcy.

                  In case of Chapter 7 bankruptcy, in case the equity exceeds the exemption limit, the trustee can sell your house to pay the mortgage, give you your exempt equity and distribute the remaining amount amongst your unsecured creditors. If you have filed for Chapter 13 bankruptcy, you might be able to keep your house, but you need to pay an amount equal to the non-exempt equity to your creditors through a 3 to 5-years repayment plan. This can be difficult for people with a huge amount of non-exempt equity but not substantial income for monthly payments through a repayment plan.

                  How to calculate the current value of your property?

                  There are different methods available to know the “current value” of your home. Your valuation is not the only factor to determine the value of your home as the bankruptcy trustee also determines the same. in case of any discrepancy, the bankruptcy judge makes the final call. The various methods employed to find the fair market value include:

                  • Real estate websites

                  This is a preliminary way to determine the value of your home. It is generally used when the mortgage amount is high, and homestead exemption might be enough to protect the property. Websites like Trulia.com and Realtor.com can provide you a rough estimate of what your property is worth, for an accurate evaluation you can go for a full appraisal.

                  • Full house appraisal

                  Get the most accurate value for your home through this method. Refinancing the home or modifying the loan can give you the latest appraisal, or you can hire a licensed real estate appraiser to inspect your property. Based on certain factors, the appraiser sets a value to the property and explains the valuation in his report. This routine procedure is followed in most bankruptcy cases, especially if you are planning to have second mortgages stripped in case of Chapter 13 bankruptcy.

                  • Comparable market analysis

                  Relatively less expensive than a full appraisal, in this option, a licensed realtor compares your house with similar houses sold in your area. The market analysis uses data from the sale of the home which were in the same locality, were similar in size, condition and structure to yours to get an estimate of your home’s worth.

                  However, you should steer clear of some valuation methods as they are considered unreliable for bankruptcy purposes. These include:

                  • Quick sale value

                  Many people need to sell off their property on short notice. This often results in a lower value and thus cannot give an accurate estimate of the actual worth of the property. This method, therefore, cannot be used during bankruptcy. Additionally, it might make you think you can protect your home through the homestead exemption.

                  • Property tax appraiser value

                  Getting your property evaluated for real estate tax purpose by a property tax appraiser might not work in bankruptcy proceedings since they are not an accurate representation of the actual market value of the property.


                    *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.

                  • Chapter 13 Bankruptcy Cost and Effectiveness

                    Chapter 13 Bankruptcy Cost and Effectiveness

                    When you are struggling with debts, you are probably considering bankruptcy via Chapter 7 or Chapter 13. Once, after assessing different eligibility criterions, you lock upon Chapter 13, the next question is to determine how effective it is and what would be an estimated cost for the same. We will try to explore an estimate of some of the costs and effectiveness of the whole process using the survey results of the readers. If you have still not determined whether to go for Chapter 13 or Chapter 7, consider logging in to Recovery Law Group for information about eligibility and other salient features of each chapter to make a wiser decision. To start with let’s identify a range of all the costs associated with Chapter 13.

                    1. Cost of an attorney

                    The attorney cost can range from $1,500 to about $5,000. The survey shows a good chunk of people paying between $0 to $3,000. To be specific, 24% of readers confirm to have paid below $1,500 and 39% readers confirm to have paid between $1,500 to $3,000. This makes for 63% in the range of $0-$3,000. 30% people paid between $3,000- $5,000. While 7% of people ended paying more than $5,000. Depending on the complexity of the case, you are likely to end up in the $0-$3,000 range or $3,000-$5,000 range. In rare circumstances, you might end up paying above $5,000 as per the survey.

                    The cost of attorney also depends on various factors like an attorney, win percentage history, bankruptcy filing state, etc. Most of the attorneys usually charge a flat fee that includes most services a common bankruptcy case would need. An additional $310 on an average might have to be kept aside as filing fee. There are bankruptcy court rules and regulations or guidelines that control pricing for the services offered by the attorneys too. The range for attorney cost as per a few states can be listed as follows-

                    • Texas attorneys might charge you between $3,000-$3,825
                    • California attorneys might charge you between $3,300-$5,000
                    • Florida attorneys estimate ranges between $3,500 to $4,500
                    • Michigan would be between $2,600 to $3,650
                    • Finally, Virginia would be $4,000 to $5,100

                    What potential reasons could hike your attorney cost?

                    • If you are a sole proprietor and filing for bankruptcy under Chapter 13
                    • If your house is less worth when compared to the amount you owe. You might want to seek a release of debt for the amount in excess of the worth
                    • If you want to release a student loan or similar kind of priority or non-releasable loans
                    • If there is any suit involved along with bankruptcy

                    Chapter 13 payment plan completion survey

                    Chapter 13 bankruptcy consists of a payment plan which lasts for 3-5 years depending on the amount of debt and the disposable income. The survey about how many people ended up dismissing the payment plan before the stipulated duration and how many people ended up completing the payment plan shows interesting results leaving us not much to pick between them. While 48% of people ended up completing their payment plan tenure, 52% of people were successful in dismissing the case before the tenure actually ended. By this stat, there is a small majority of people who ended up stabilizing their financial condition and cleared of all dues before their payment plan concluded. This could be an encouraging start.

                    Time factor

                    Time is another important aspect of the bankruptcy filing. The tenure or duration of payment plan is known by all, however, the time consumed to get the plan approved and the formalities of bankruptcy court can only be figured out by the people’s feedback who have gone through the whole process. While a large chunk of people about 58% confirm the whole process taking less than 3 months, you can be rest assured that under most circumstances, the process should not take more than 6 months. Adding 32% of readers contributing to 4-6 months range, it is about 90% of people who have got their payment plan and other Chapter 13 bankruptcy procedure done in less than 6 months. Under rare circumstances would you take over 1 year as the probability based on survey results is mere 4%.

                    Satisfaction degree

                    After the whole process, the ultimate thing that matters is the satisfaction level. The survey has thrown up mixed results and it is difficult to assess how successful Chapter 13 has been for our readers. While only 40% of people say they were satisfied with the Chapter 13 results, 16% maintain a neutral approach and 44% people, on the other hand, were dissatisfied. It could be that the whole process is slightly frustrating and expensive to their liking or readers think they ended up paying most of their debts, difficult to analyze possible repercussions of this survey results.

                    If you are looking forward to a smooth Chapter 13 bankruptcy experience with consistent and professional support, do get in touch with us at +1 888-297-6203.


                      *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.

                    • Chapter 13 Bankruptcy and Tax Refunds

                      Chapter 13 Bankruptcy and Tax Refunds

                      When you file for bankruptcy, any property you own becomes a part of the bankruptcy estate which is overseen by the bankruptcy trustee. Many people are worried about any tax refund or personal injury claim they receive during their bankruptcy since it could be used to pay your creditors. However, lawyers of Dallas based bankruptcy law firm Recovery Law Group inform that bankruptcy laws allow you to modify your Chapter 13 plan in some cases to excuse payment of tax refunds.

                      You are expected to list your income, your assets, and your debts when you file for a Chapter 13 bankruptcy. This is then used to calculate your disposable income which is used to pay your unsecured nonpriority creditors. Disposable income is calculated by deducting all reasonable and essential expenses like food, shelter, transportation from your monthly income. Since priority and secured debts are to be paid every month, any money that remains is termed as disposable and used to clear your unsecured debts over the course of your repayment plan.

                      Any tax refund that you get in the middle of the bankruptcy can be considered as disposable income as the funds were not included in the income-expense calculations. Moreover, since you were managing your necessary expenses and planned payments with your monthly income, a tax refund is surplus income which can be used to pay your creditors. However, if you could prove that the tax return isn’t disposable and is required by you to take care of some unexpected bills, the court might allow you to keep the refund money. For more details on this consult expert bankruptcy lawyers at 888-297-6023.

                      Getting your tax refund excused by the court

                      Any tax refund you get during your Chapter 13 bankruptcy Dallas needs to be justified as essential for your use, else it will be termed as disposable income by the bankruptcy trustee and used for paying your unsecured debts. You can modify your bankruptcy plan to excuse a tax refund with a reasonable excuse. A separate plan needs to be filed for every tax refund modification you plan to take. The modified plan should include which specific tax refund you would like to be excused, the amount of the refund along with a reason specifying why you need to keep the refund money.

                      A tax refund is granted only if you can prove that the expense is unexpected and essential for your day-to-day activities and that you will not be able to afford it on your regular income. A respite might be available for reasons like:

                      • Unexpected medical expenses for yourself or your dependents;
                      • Car repair or a down payment for replacement vehicle;
                      • Any appliance repair or replacement;
                      • Funeral expenses.

                      Having proper documentation for how you spent the money after getting the refund by the court might come in handy when you need to file a plan for another refund. Alternately, you could excuse tax refunds by not committing any tax refunds in the plan. However, this might cause the bankruptcy trustee as well as creditors objecting to it unless you could give a compelling reason (large annual expense) or you limit the amount in the plan so that you don’t receive more money than specified. Consulting with a bankruptcy attorney can open more vistas for you on how to save tax refunds.


                        *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.