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  • Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Chapter 7 is advocated as one of the best Chapters to release a good amount of debt with zero obligation after the bankruptcy process. However, this might not hold true under some scenarios. The filer might have to continue to pay out some of the debts during and after Chapter 7 bankruptcy. To assess if Chapter 7 could actually kill all your debts or not, it is best to analyze some of the debts, you may still be obliged for even after filing for Chapter 7 bankruptcy. For more information relating to bankruptcy and Chapter 7, log on to Recovery Law Group.

    1. Any debt that has been incurred after filing for bankruptcy

    Any form of expense, debt, or bills that have been incurred after the filing of a bankruptcy will still hold you liable for clearing the same. This is referred to as a post-petition debt in legal terms. Some of the common debts that could fall under this category can be listed as follows-

    • Child support or alimony
    • Utility bills, taxes, insurance payments
    • Rent or lease dues
    • HOA or condo fees

    Some of these expenses that have been incurred before the bankruptcy filing will also not be wiped off. Child support, alimony, and taxes debt will usually not be discharged and are only wiped off under rarest of rare circumstances. The debts which will be wiped off will again depend on the bankruptcy court’s judgment.

    1. Secured Debts

    Debts which have been secured by an asset or collateral is referred to as secured debts. These are debts which are usually of high dollar value. Some of the common examples of secured debts can be listed as follows-

    • Home mortgage or home equity line of credit
    • Car loan
    • Business property loan

    The discharge or release of these debts depends on whether you agree to surrender the collateral or security of the debt. If you intend to keep the asset, you might have to pay off the debt in full. You might still get part of your debt released if you prove to the court how essential the particular asset is and impacts income generation. If you decide to keep the asset and pay off the debts, you cannot afford to miss the payment then. During bankruptcy, the lender can pass a motion and exercise lien on the asset or can directly access the asset after the bankruptcy court has closed your bankruptcy case.

    1. A brief break for your non-dischargeable debts

    Some debts like student loans, taxes, government dues/penalties/fines, etc., can freeze when you file for bankruptcy. You get a brief respite from those dues till your bankruptcy case is in the progress with the bankruptcy court. However, this by any means does not make you less accountable or liable for all dues during the bankruptcy phase as well as before and after bankruptcy. It just gives you a breather to re-assess and get things together.

    Voluntary debt repayment

    There are scenarios when you had like to pay off some of the debts. This usually happens for debts owed from related people, medical practitioner, or a particular lender who has supported the most. To pay off debts, you might not be able to use any of the nonexempt assets that are to be liquidated for repayment to lenders under Chapter 7 Bankruptcy. The best approach to voluntary debt repayment would be to initiate such payments after the bankruptcy case is closed by the court. To know more such important and smart tips, call 888-297-6203 now!


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

      *Do you own a home?

      Are you currently working?

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

    • Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

      Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

      Chapter 7 and Chapter 13 are the preferred routes taken by individuals filing for bankruptcy. Each has specific requirements that you must meet if you wish to get your debts discharged. According to Los Angeles based bankruptcy law firm Recovery Law Group , you need to be current on your payments and protect all home equity through bankruptcy exemptions in the case of Chapter 7. While in Chapter 13, you get a chance to catch up on missed mortgage payments through arrearage in the repayment plan.

      Both state and federal government offer exemptions to protect your equity in the property when you file for bankruptcy. You might be able to choose between either of those options or make the best of the state exemptions. Before filing for bankruptcy, it is important to consult expert lawyers to know which chapter of bankruptcy will result in saving more property. Call 888-297-6023 to clear your doubts regarding exempt property and bankruptcy. The exemptions vary from state to state. In the case of chapter 7 bankruptcy, any non-exempt property will be sold, and the proceeds distributed among your creditors by the bankruptcy trustee. Chapter 13 bankruptcy allows you to keep your non-exempt property if you pay your creditors an amount equal to the amount of non-exempt property you are keeping. This proves to be costly and will not be approved unless you can show you have enough disposable income to repair creditors.

      Chapter 7 Bankruptcy

      Chapter 7 bankruptcy allows you to get rid of unsecured debts relatively quickly. In most cases, people can protect their exempt property and have to let go home a small amount of non-exempt property. You can keep your home in this case of bankruptcy if:

      • you are current on your mortgage payments;
      • bankruptcy exemption protects your entire home equity;
      • you can afford to make payments on the loan in the future

      However, this chapter does not allow you to catch up on past due payments. In case you have a lot of equity in the house, it is difficult to protect it from being sold by the bankruptcy trustee to repay your creditors.

      Chapter 13 Bankruptcy

      This is a better option if you wish to keep your home when you have a lot of equity and have previous due payments to catch up on. Incidentally, it also helps in getting rid of second or third mortgages. This involves a repayment plan through which you can pay back your creditors over 3 to 5 years’ time frame. You could also ensure that a separate debt is added to the repayment plan which addresses your mortgage arrearage. You need to show that you have enough income to make regular mortgage payments along with your plan payments during bankruptcy.

      Chapter 13 also prevents creditor to take any foreclosure action on the mortgage as long as you are making regular payments as per your repayment plan. Lien stripping helps you get rid of any junior lien on your home in case of Chapter 13 bankruptcy Los Angeles. This takes place only in case the property is now worth less than the balance of the primary loan. evidence pertaining to this if submitted bankruptcy court might make any junior lien void. Any debt owed to that creditor is treated as unsecured debt and is wiped out along with other similar debts at the end of your bankruptcy 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.

      • Common Avoidable Mistakes for Chapter 7 Means Test

        Common Avoidable Mistakes for Chapter 7 Means Test

        A Means test is an eligibility test that is carried to assess the eligibility for Chapter 7 bankruptcy. However, means test is not one of the simplest tests to carry out, which creates possibilities of multiple errors. Some of them could be avoided and the eligibility for Chapter 7 can be made much easier. To learn more about Chapter 7, eligibility, alternatives, and best attorneys in your town to help you deal with this financial crisis, log on to Recovery Law Group . Some quite common avoidable errors can be listed as follows-

        Do you really need to take the Means test?

        It is important to first assess, whether doing all the calculation and adjustment for ‘means test’ is really worth or not. There are two situations wherein the means test becomes unnecessary. In the first scenario, your income is way below that state median and there is no need to go ahead with the means test as it automatically qualifies you for Chapter 7. The second scenario is when your income is too high and taking some standard expense deductions based on state rule book would not help. Under both scenarios, you would not want to make unnecessary calculations with respect to the means test as you either directly qualify or disqualify.

        Are you filing a business bankruptcy?

        In bankruptcy terms, there are two types one is business and the other is a consumer. Consumer bankruptcy refers to the loan taken for personal purposes and not intended to be used for business purposes. If you have a combination of loans which is business as well as personal, the percentage of loans will determine whether it is a consumer or a business bankruptcy. If the business loans exceed the personal loans by some margin, it can be referred to as a business bankruptcy. If the personal loans are higher or if the business loans are marginally higher than personal loans, it will be referred to as a consumer bankruptcy.

        It is essential to understand this distinction as there is no need for a ‘means or median’ test if it is a business bankruptcy. Many people do the ‘means test’ with their business transactions and struggle while that might not be required at all. Similarly, people with some business loan skip means test only to realize, they might be subject to it.

        Determining the household size

        Coming up with the household size for comparing state median or for calculating some of the expenses for ‘means test’ can be a challenge. It is not as easy as it looks. While some courts allow for all individuals in the household unless and until their income is accounted for and their part or full responsibility of the household members on the bankruptcy filer. On the other hand, some courts allow for a household count of people who are dependent on the bankruptcy filer financially. Arriving at the right household size can prove challenging sometimes. It is always a better approach to opt for a household count of people who are directly financially dependent on the filer.

        Income mismatch and duplication

        The income to be reported in the court with the bankruptcy filing application has to be used in the same capacity for the means test. People tend to use their recent monthly income instead of the average six months of income from the bankruptcy filed date. It can also happen that a married filing joint couple might end up including a spouse’s income even if the spouse isn’t filing for bankruptcy in his/her individual capacity. This can lead to an unnecessary hike in income. Similarly, accounting for double expenses when the spouse isn’t filing for bankruptcy is also not acceptable by the court.

        Child Support

        There can be scenarios that child support is paid out in the form of food items, clothing, and other essentials of the child. Since the child support is not being received as cash, it may not be reported as income. If you are a bankruptcy filer, paying for child support, it can be included as an expense.

        Mortgage payments and Standard Housing Deduction

        The common practice is to include both standard housing deduction and mortgage payment (as an adjustment in the following line). However, under Chapter 7, the assets might be liquidated. Hence, if you are giving away your home, you are not allowed to use mortgage payments in the expense column. You shall only be eligible for the standard housing deduction. The approach may vary based on courts and it is best to have a consultation with the attorney regarding this.

        Allowable and non-allowable deductions

        Determining what deductions are allowable and not allowable depend on different circumstances. It has often come to notice of people missing out on certain allowable deductions and opting for deductions which they aren’t eligible for. This can be best addressed by reaching out to an experienced bankruptcy attorney. The number is 888-297-6203. Don’t wait, dial in right now!

      • 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.

        • The Bankruptcy Filing By An Undocumented Immigrant

          The Bankruptcy Filing By An Undocumented Immigrant

          An undocumented immigrant can file for bankruptcy if he/she has a Social Security Number. In lieu of a social security number, Individual Taxpayer Identification Number can also be used to file for bankruptcy. There can be a negative impact on the immigration status of the bankruptcy filer when filing for bankruptcy as an undocumented immigrant. For best assistance and more insight on bankruptcy, log on to Recovery Law Group now.

          What do the rules indicate?

          The bankruptcy code does not have a specific mention for the bankruptcy to be filed by a citizen of the United States or residents. Bankruptcy is basically a relief that is offered to any individual who is living in the United States, owns a property or business in the United States and for the citizens of the United States. The identity of the filer is the only potential concern when an undocumented immigrant files for bankruptcy. A valid SSN or ITIN in lieu of SSN is mandatory before filing for bankruptcy. An ITIN is a tax processing number that is issued to an individual who is not eligible for an SSN. Since ITINs are issued without consideration to the immigration status, it becomes a very viable option to many.

          What’s the case of an illegal immigrant?

          An illegal immigrant can still possess SSN. The entry in the United States as tourist, student or any other visa is eligible for an SSN. If the immigrant breaches the stay duration, he/she becomes an undocumented immigrant. Most people who have legally entered the United States should have an SSN or an ITIN. If they are not legal immigrants, they might not want to file for bankruptcy as it can result in larger consequences.

          Need for an immigration specialist

          Bankruptcy by itself is a very complicated chapter so is immigration. By mixing these two focal points, the mess can get messier. When the consequences can go so bitter, it is best advised to get in touch with a professional attorney or lawyer who has rich experience and knowledge about these unique cases. Reach out to +1 888-297-6203 right now for best solutions to your problems.


            *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 wildcard exemption?

            What do you understand by wildcard exemption?

            Are you looking to protect a property that is quite important and dear to you? Now that is easily possible with a wildcard exemption. Now, you no longer need to worry about losing important and valuable items which hold a very high value in your life, while filing for bankruptcy. As per the new norm, if your state has a “wildcard exemption” you can protect and safeguard invaluable items from being given away or foreclosure.

            The property that you want to protect or safeguard completely differs from state to state. Hence, depending on your residential location, you will be able to use the “wildcard exemption” as per the statutes and law stated of that particular state. The common items that you can safeguard generally are – furniture, clothing, crockery, and bedding. Also depending upon the state statutes, you might be able to keep either of these as well-

            • Vehicle
            • Jewelry
            • Child and/or spousal support
            • Equity in a residential home
            • ERISA qualified retirement account.

            However, exemptions for luxury items like boats, vacation homes, snowmobiles and the like is not permissible. Nonetheless, some states provide this benefit to its residents where they can safeguard any property or items (even under the category of unnecessary or luxury property) under a certain value/dollar as stated by the state.

            For example, the state has permitted you to use the “wildcard exemption” of value $7000. You can use this to safeguard/exempt any items within the stipulated value of $7000. This can include luxury items as well but must be under the stipulated amount. For instance – your golf club, sauna, a piece of jewelry- all summed up under the authorized value of $700 and must not exceed the value at any cost.


              *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.

            • Trustee’s Role in Chapter 7 Bankruptcy

              Trustee’s Role in Chapter 7 Bankruptcy

              Bankruptcy is a great way to get rid of a huge amount of debts. People can file under chapter 7 or chapter 13. When any individual files for bankruptcy under chapter 7, a trustee is appointed by the court to oversee the proceedings of the case. According to Los Angeles based bankruptcy law firm Recovery Law Group, the bankruptcy trustee has various responsibilities including evaluating paperwork, selling of non-exempt property, etc.

              What does a trustee do?

              The bankruptcy trustee is appointed by the court as an independent evaluator for the case. The trustee gets paid to examine your bankruptcy papers and gets a percentage of any assets sold during the process. This is an incentive to perform their duty carefully. They need to carefully assess the property of the bankruptcy filer including any that were transferred or sold prior to a bankruptcy filing. The trustee must be fair in their dealings towards the debtor. The main duties of a bankruptcy trustee in the case of chapter 7 include:

              • Reviewing bankruptcy petition

              When an individual files for bankruptcy, they are expected to provide personal and financial information including their property, income, debts and other financial details. You also need to provide information justifying your claims including tax return, pay stubs and any information about your assets. The trustee needs to verify the information with independent sources as well as from the financial documents you provided. Both figures should match for a bankruptcy petition to be approved.

              • Examining the documents

              A 341 meeting of creditors takes place after one month of filing bankruptcy papers. This is attended by the bankruptcy trustee, debtor, his/her attorney and the creditors. In case the creditors have any questions regarding any hidden assets they might ask during this meeting. The bankruptcy trustee conducts the hearing and asks questions pertaining to the information provided by you in your bankruptcy documents. All this takes place under oath; lying would mean perjury which might result in your case being dismissed without a discharge.

              • Selling of non-exempt property

              The bankruptcy trustee is also responsible for selling any non-exempt assets the proceeds of which are used to pay your creditors. Chapter 7 allows debtors to keep certain property like retirement accounts, household furnishings, clothing, etc. An individual can choose from federal or state bankruptcy exemptions.

              • The debtor has non-exempt property–In case you have non-exempt property, it is sold, and the amount is distributed among creditors. You need to determine what happens to your property before filing for bankruptcy as you do not have automatic right to dismiss your case.
              • The debtor has no non-exempt property–In case there is no non-exempt property, creditors are not paid anything, the case is reported as “no asset” case and all unsecured debts are discharged. If any disagreement arises on exemption status of any asset between debtor and trustee, the final decision is of a bankruptcy
              • Reversing dubious transfer of property

              The bankruptcy trustee can overturn any preferential transfers or improper sale of any asset made before bankruptcy filing. If you transferred property to a family member or friend or paid any creditor preferably over others, then such transactions are undone by the trustee. The money reversed is distributed among all creditors. In case a creditor did not create a proper lien on your property, this can also be reversed by the trustee, and the property can be sold free and clear of the lien.

              If you are contemplating bankruptcy, call at 888-297-6023 to find out more about the process.


                *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.

              • Know about Texas Bankruptcy Exemptions

                Know about Texas Bankruptcy Exemptions

                Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

                Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

                Here’s a look at various Texas bankruptcy exemptions:

                1. Texas homestead exemptions

                The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.

                1. Texas motor vehicle exemptions

                The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.

                1. Texas personal property exemptions

                Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:

                • Sports and athletic equipment including bicycles;
                • Home furnishings including family heirlooms;
                • Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
                • Food and clothing;
                • Up to 2 firearms;
                • Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
                • Health saving accounts;
                • Health aids like walking sticks, wheelchairs, hearing aids, ;
                • Burial plots;
                • Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
                1. Pension and retirement accounts

                Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:

                • ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
                • County and district employee retirement and pension benefits.
                • Firefighter pension and retirement benefits.
                • Law enforcement officers, emergency medical personnel survivors’ benefit.
                • Police officer retirement and pension benefits.
                • Judges pension and retirement benefits.
                • Municipal employees, state employees and elected officials’ retirement and pension benefits.
                • Teacher retirement and pension benefits.
                • Retirement benefits which end up being tax-deferred.
                1. Insurance exemptions

                These include:

                • Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
                • Texas employee uniform group insurance;
                • Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
                • Texas public school employees’ group insurance;
                • Texas state college or university employee benefits.

                However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for bankruptcy.


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

                  *Do you own a home?

                  Are you currently working?

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

                • How to protect important assets during bankruptcy?

                  How to protect important assets during bankruptcy?

                  Bankruptcy is an unfortunate financial condition and safeguarding or holding on to some near and dear assets can be a very difficult task. Chapter 7 bankruptcy code especially is not very suitable for people who want to hold on to their assets. However, with the help of exemptions, certain ordinary and modest assets can be protected and prevented from the liquidation process. These may include clothing, home, car, household stuff, tools used in the business/profession, etc. To learn more about bankruptcy codes, log on to Recovery Law Group now. The exemptions can help in protecting the assets which you might not be able to safeguard otherwise during bankruptcy. One such exemption is the wildcard exemption.

                  What is the Wildcard Exemption?

                  Wildcard exemption tries to value sentimental and emotional feelings in addition to basic necessities. The best examples could be some of your sports collections, fan collections, grandmom or ancestral property attachment like a piano or some other asset with a financial value that can be tagged with sentiments or emotions. While every state differs slightly in the type of exemptions they offer, other states might provide a choice between the federal and the local state exemptions. There is no possibility of mixing and matching what you like or do not like though.

                  Different type of exemptions and their thresholds

                  Most exemptions under Federal or state rule are targeted to specific assets. Here is a look at some federal exemptions with their threshold to better understand what assets could potentially be safeguarded-

                  ·         A $25,150 equity in the personal residence

                  ·         A $4,000 of equity in a motor vehicle or an automobile

                  ·         $13,400 worth fair market value of household goods that include clothing, furnishing, appliances, etc. There is a cap of $625 per item. Which means any one item cannot exceed $625 in the cumulative of $13,400.

                  ·         $2,525 worth tools and equipment used in business or profession.

                  These amounts are valid until 2022. They are bound to change every 3 years based on inflation and other factors. The state exemptions might be slightly higher or lower to the federal exemptions depending on the cost of living and inflation in the particular state. For instance, it can be high for a state like New York while it can be lower for a city like Dallas in Texas. However, by the federal standard, the bankruptcy filer can get a rough idea of which assets, he/she will be able to protect under these exemptions.

                  Benefits of Wildcard Exemption

                  The biggest benefit of wildcard exemption is that it is not been limited to any specific type of asset. The choice of property is left to the discretion of the user. The user can decide on whether to use it in his car, expensive painting, jewelry, etc. The other benefit is you can split the threshold amount to multiple assets as per your convenience. The below items can be safeguarded under wildcard exemption rule-

                  ·         Jewelry

                  ·         Spouse and child support

                  ·         Automobile

                  ·         Residential home equity

                  ·         An ERISA verified retirement account

                  ·         Any other justifiable non-luxury asset

                  What is the threshold?

                  Most states use the federal exemption threshold which offers an individual an exemption of $1,325. The additional unused amount of $12,575 in the federal homestead exemption can also be clubbed with the $1,325. This threshold doubles up for a married filing joint scenario. The state exemption might vary slightly from the federal exemption. You might still want to confirm the same. Look into some additional terms in the state rule book of select states for using certain exemptions like the wild card exemption. Get in touch with the best attorney in California for your bankruptcy help at 888-297-6203.


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                    *Do you own a home?

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                  • 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.