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Tag: chapter 7 bankruptcy

Protect Yourself Financially by Avoiding These Mistakes
Nobody wishes to fall on bad financial times. However, almost every single individual who has filed for bankruptcy due to an excessive amount of debts has made a few common mistakes and taken unnecessary risks which have resulted in them looking for a bankruptcy attorney. If you wish to avoid such a situation, it is important to learn from the mistakes made by others. According to Dallas based bankruptcy law firm Recovery Law Group, if you have filed for bankruptcy and gotten a discharge for your debts, you need to ensure that you make amends and improve your credit rating. This can be done by avoiding making the same mistakes over and over. Some of the most common mistakes which lead people towards bankruptcy include:
- Keeping a monthly balance on credit cards
Most credit card companies charge clients 15%-28% interest on monthly balances. When you compare this to mortgage loans (nearly 4%) or car loans (2%-6%) you will find the rate exorbitantly high. Most people filing for bankruptcy owe huge credit card debt for their condition. In case you do not clear your monthly balance, you end up paying much more than you can afford. The balance keeps on adding every month eventually leading to bankruptcy.

Avoid using the credit card and instead, use a debit card. This will not only reduce the interest but will also prevent you from making unnecessary splurges.
- Spending without realizing the total cost
Most people buy stuff without realizing the actual cost of running and maintaining it. though a car loan doesn’t come at a high rate of interest, you need to add fuel, service, insurance, repairs and other additional costs and things go out of hand. The same holds true for property too. You can avoid making these purchases unless it is essential.
- Not having a monthly budget
One of the fundamentals of bankruptcy is a mandatory course in financial management. This is because people rarely plan and live on a budget. People should cut back on needless expenses and save the disposable income for a rainy day if they wish to avoid bankruptcy.
- No planning for retirement
Most people think that their social security benefits will help them in their old age. However, the amount you get will not be enough to live comfortably. Thus, it is important to save regularly if you wish to avoid falling into debt in your later years.
- Using retirement funds to repay loans
Most people are unaware that exemptions provided by state and federal government protect their retirement funds. Using money from retirement accounts to clear credit card debts will leave you without an asset and yet in debt. Moreover, credit card debts are discharged during bankruptcy.
- Not buying insurance
One of the worst things that you can do is not taking health or accident insurance. Generally, people don’t like to spend on things which are not likely to happen. However, when misfortune strikes, you end up accumulating a huge amount of medical debts which can send you spiraling down the road.
- Not looking for other earning options
Considering the economic condition prevailing currently, not looking for opportunities to earn extra money is a crime, literally. You should consider alternate earning options to support your lifestyle and save money.
- Neglecting health
Neglecting physical and mental health in order to improve your financial health will prove detrimental eventually. Not only will you end up harming your body and end up spending a huge amount of money on medical expenses.

Consult expert bankruptcy lawyers at 888-297-6023 to know more about the bankruptcy process.
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August 27, 2019
What Options are Available in Case of Business Bankruptcy?
In this age where jobs are few and rare, many people turn entrepreneurs. However, starting your business is a risk. People often take loans to finance their dream. Many times, the lines between business finance and personal finance become hazy. In such a case, it is often difficult to separate the two. This becomes an issue if the business takes a downhill turn. According to Dallas based bankruptcy law firm Recovery Law Group, such an issue can be problematic at personal and business levels. Irrespective of the reason for your financial troubles, bankruptcy is always a viable option. Just like personal bankruptcy, business bankruptcy does not mean that everything is lost. You can continue operating throughout the bankruptcy proceedings.

If you wish to reduce the financial stress on your business and want to move ahead in life, the best logical option is filing for bankruptcy. You can move on to the next better idea once you have gotten rid of unnecessary dues holding you back. Consult with expert bankruptcy lawyers at 888-297-6023 to find out which chapter of bankruptcy would suit your case. Business bankruptcy can be filed under three chapters depending on your unique circumstances.
- Chapter 7–Corporations, partnerships, LLCs, and sole proprietors have the option of filing for bankruptcy under this chapter. People and business organizations who wish to get rid of their debts can opt to liquidate their non-exempt property to pay their creditors. State and federal exemptions can be used to protect business and personal property during the bankruptcy process.
- Chapter 11 – This option is available for publicly traded and large-scale business organizations. In this case, banks and creditors prefer to cut the loss as the time taken in the reorganization is too much.
- Chapter 13 – If you wish to continue operating your business while going through bankruptcy to get debts discharged, this is the best bet. This chapter of bankruptcy allows you to create a payment plan through the court where you can repay your creditors over a period. With Chapter 13 bankruptcy , you can also protect all your assets while getting rid of personal liability entirely.
Though people can file for bankruptcy without a lawyer, business bankruptcy cases can be quite typical. It is therefore recommended that you choose an experienced bankruptcy attorney to handle your case efficiently.
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August 26, 2019
Which Debts are Cleared by Bankruptcy?
Bankruptcy is an ideal way to get rid of debts. However, things can be quite confusing for the layman as the terms are often misunderstood. Though bankruptcy is meant to legally get rid of huge amounts of debts, lawyers of Dallas based bankruptcy law firm Recovery Law Group, inform that not all debts get discharged during the process. Depending on which chapter of bankruptcy you choose to file bankruptcy under, your debts can be reorganized, discharged or left as such. To know details about your options, consult with expert bankruptcy lawyers at 888-297-6023.

Chapter 7 Bankruptcy

If you want a quick discharge of several debts without making any payments towards them, this is your best bet. Also known as Liquidation Bankruptcy, it typically gives the debtor a discharge within 3-6 months of the bankruptcy filing. Majority of the debts discharged in this bankruptcy chapter include unsecured debts such as credit card bills, personal loans, medical expenses, etc. If loans such as these and other nonpriority unsecured debts like business loans, private student loans, and utility bills, etc. constitute a majority portion of your debt, then you should opt for this chapter of bankruptcy.

It is important to keep in mind that secured debts, such as those against which the creditor has collateral (house mortgage, car loan, etc.) and unsecured priority debts like alimony, student loan, child support, certain government taxes, etc. cannot be discharged. The same holds true for any debts which are related to fraud.

Chapter 13 Bankruptcy

This chapter of bankruptcy is known as Reorganisation Bankruptcy. In this case, while filing you can include all kinds of debts. A repayment plan is devised depending on your disposable income and the debts are paid over a period of 3-5 years. Any unsecured nonpriority debts which remain after this are discharged. During the repayment plan, your house cannot be foreclosed, and your vehicle repossessed if you keep making payments towards those loans. This is the best option available if you wish to prevent foreclosure, repossession or want to put a stop to interest build-up on tax debts.

Though it may seem easy, filing for bankruptcy can be quite difficult, especially if you miss out on any nuances. It is therefore advisable to consult an expert bankruptcy lawyer to help you get out of your huge financial problems by filing for bankruptcy.
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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.
August 26, 2019
What is Befitting for you- Chapter 7 or Chapter 13?
Each to his own’ rightly suits about the two bankruptcy laws. While both are good, which is apt for the client depends upon his situation – The type of debt, their financial situation and the resources with the debtor. A professional practitioner in bankruptcy can help the client in deciding which is best for their situation. For detail information about chapter 7 & 13, visit Recovery Law Group.

Chapter 7

Chapter 7 bankruptcy law requires eligibility of the applicant. The applicant needs to prove his eligibility. For proving the eligibility for chapter 7, five factors are assessed.
1. Budget
The equation between the income and the expenses shows the saving quotient. Do the debtor’s expenses run higher than his savings? More importantly, is his income in the past 6 months below the median income of the State? If the monthly income is less, with no steady means to pay loans, then the applicant is eligible for chapter 7.
1. Assets
Assets can be luxurious and non-luxurious. The client can own luxurious assets and still would want to declare bankruptcy. There are some assets that the State lists under exempted, which the client can keep. The non-exempted assets like the luxurious ones whose value surpasses the limit determined by the court are put on sale to clear off the debts. Assets are evaluated to estimate the financial situation of the applicant.
1. Credit report
The credit report will show the type of debts the client has. While some debts are dischargeable, debts like a student loan, tax debt, child support loans are non-dischargeable. Such debts cannot be addressed under chapter 7 but can be addressed under chapter 13.
1. Transaction
The court investigates the latest bills and transactions of the client. If he has sold or purchased things above a limit, the court can disqualify his eligibility for chapter 7. As per court if the client is indulging in an expensive lifestyle, then he is careless of his situation and hence is not a genuine applicant for chapter 7 bankruptcy.
1. Timing
Timing is a crucial factor in deciding the eligibility of the client. Timing before filing the tax return, timing before a due bonus, may affect the eligibility. Receiving more than 25 pay-checks within the last 6 months can disqualify the applicant. The client can receive 2 paychecks per month, and while he files for chapter 7, he may land with 26 pay-checks, and get disqualified.

Chapter 13

Chapter 13 Bankruptcy Dallas is for those who have a steady income and can dispose of small amount of income every month to clear off the debt. A payment course is planned for 3 or 5 years depending upon situations. The debtor must pay till 3 years as per the repayment plan after which his loans are dischargeable. By employing chapter 13 the debtor is not only able to save his assets but partly discharged from a big loan.

The bottom line is the debtor must consult with an experienced bankruptcy advocate about his financial situation before arriving at a decision. Depending upon the financial situation the advocate can suggest the best course of action. It is not a generalized decision but a personalized one. The debtor can seek suggestions/advice by calling on-888-297-6203.
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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.
August 24, 2019
How bankruptcy can help you to wrap your failing business neatly?
Doing business can be like walking a tight rope. You can fall if you do not balance your self rightly. Rest assured, there is no harm in falling down. Businesses operate with loans and money transaction. When a business falls your revenue stops and your debts increase faster than the light. You cannot cope and you are at a loss of understanding how to escape. People often fall trap to such situation. A good legal advisor can help solve this problem. For consultation visit- Recovery Law Group.

Choosing the right path

An experienced legal advisor can analyze and suggest the best solution to overcome the debt. Filing for bankruptcy under chapter 7 can allow the debtor to clear off his debt in a one-shot, without much hassle. Yes, the business will close down, but the debtor can save his face and start afresh. The legal advisor can help file the case under chapter 7.

Is the debtor qualified to file the case under chapter 7?

A falling business can find solace from the never-ending debt by filing a bankruptcy case under Chapter 7. To start on strong foot the client must take an eligibility test before filing the case. If there is any loophole in the case, it can be dismissed, posing problems to file again. The client can test their eligibility by undergoing the means test.

The means test

The means test is the analysis of the source of income. The analysis shows that income is insufficient to manage and clear the debt. Once it is established the client becomes eligible to file the case. If the income is high the client may not be eligible. Apparently, there is a clause for high-income clients under which they can file the case. The businesses often have two types of debt,
- Personal or non-business related
- Non-consumer or business-related debt
Under this clause, if the non-consumer or business-related debt is higher than 50% of total debts, which also includes mortgage, the client is eligible for chapter 7 bankruptcy Dallas. Moreover, if the businesses do not qualify for chapter 7, they can always file a chapter 13 bankruptcy case. Under chapter 13, the client clears the decided debt amount in small batches within 3 to 5 years unlike the 90 days one-shot clearance of debt under chapter 7.

Why bankruptcy is the best solution for a sinking business?

It’s better to swim across rather than sink with the broken ship. By declaring bankruptcy, the client is able to move ahead from a sponge that could suck him entirely. Bankruptcy allows the client to wrap the business neatly with grace intact. Falling business is common, and hence people must not be afraid to come out and face the fact. Instead of sinking with the business, people can rise with a new step with bankruptcy. For more detailed information call-888-297-6203.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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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.
August 23, 2019
Good News for Chapter 7 Debtors! Cannot Have Two Pending Cases Simultaneously Says Court
For most people, filing for bankruptcy is the best legal way to get rid of insurmountable debt. Of the two chapters in which individuals can file for bankruptcy, Chapter 7 is preferred since it takes relatively less time to get discharge and thanks to the various exemptions, you are able to protect almost all your property. However, if despite filing for bankruptcy under Chapter 7, you are unable to get a discharge, it can result in huge stress on the individual. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, such an incident occurred with an individual who had filed for Chapter 7 bankruptcy. Despite the trustee filing a no-asset report, the case remained open and the debtor did not receive a discharge. After nearly 2.5 years the debtor filed a Chapter 13 bankruptcy case to get rid of the accumulating debts, however, this time, there was no lawyer involved.

Since there exists a “Single Estate Rule” a debtor cannot have two bankruptcy cases pending simultaneously in court. This is because everything you own becomes part of the bankruptcy estate. Since your belongings remain unchanged, the same bankruptcy estate cannot be a part of two cases at the same time. If a debtor files for a Chapter 13 bankruptcy Dallas case before they got a discharge in a previously filed Chapter 7 case, the latter one is nullified. Since the debtor had filed the Chapter 13 bankruptcy case without an attorney, the court had given the leeway to the client to consult an attorney to consider which of the two bankruptcy cases (Chapter 7 or Chapter 13) dismissed. Thus, having an attorney by your side can make things easier for you. In case you would like to consult your case with expert bankruptcy lawyers call 888-297-6023.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
YesNo

Are you currently working?
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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.
August 19, 2019
Is Bankruptcy The Right Decision
The debtor may often ask ‘if bankruptcy is the right decision for me?’. This is so because bankruptcy may be seen as a dishonor or disgrace to their reputation. Consequently, a person not able to clear off his loans is more dishonorable than bankruptcy. In bankruptcy, the debtor is trying to clear some part of the debt, which may not be otherwise possible. The debtor when realizes that in no circumstances, he will swim through the loans successfully, and ultimately drown, must take rescue in bankruptcy. Detail information is available on- https://bankruptcy.staging.recoverylawgroup.com/

Qualifying for bankruptcy

The government of the USA has designed bankruptcy to help people stuck in bad loans. The law is quite poignant and not all can qualify to file for bankruptcy. This is so because the Government wishes to prevent misuse and help only the genuine needy ones. The debtor can file bankruptcy under two chapter- 7 & 13. Both have their own qualifying terms, that the applicant must clear. Other loans apart from student loans can seek bankruptcy. Exceptional cases of student loan are only allowed for bankruptcy.

Qualifying for Chapter 7

In chapter 7, a percentage of debt amount is fixed to be cleared within 90 days of the hearing. A mean test can be taken by the debtor to verify his suitability. The mean test consists of comparing his past six months monthly salary to the median income of the state in which he/she resides. Median income may differ from State to State in the USA. The client’s income should be less than the median income to qualify for bankruptcy. The client’s non-exempted properties and assets are then sold to clear the debt.

Qualifying for Chapter 13

While you may lose some of your properties in chapter 7, you can save it by filing bankruptcy under chapter 13. The process is the same, paying off a designated debt amount, but in installments within 3 to 5 years of the time period. The debtor does not need to clear a mean test for chapter 13. On the contrary, if he fails, i.e. if his income is less than mean income, he may not be suitable for chapter 13 and the case can be dismissed.

Chapter 13 is good for people with steady income resource, stuck in child support bill or income tax debt. The client can also apply for chapter 13 after applying for chapter 7, within 8 years of hearing. Chapter 13 not only discharges some percentage of debt amount but also helps the debtor retain his assets.

Taking a decision to file for bankruptcy must be taken after analyzing the pros and cons of both the chapter. Although bankruptcy is a good procedure, it is an individualized decision, suiting one’s own debt profile. A professional help goes a long way in clearing the confusion and arriving at the right decision. For advice and consultation on bankruptcy call on- 888-297-6203.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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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.
August 19, 2019
Common Misconceptions Regarding Bankruptcy
Despite bankruptcy being one of the best methods of legally getting rid of unsecured debts, it is often misunderstood. People look down upon the very idea of filing for bankruptcy due to the unnecessary social stigma attached to it. There are numerous instances of business organizations and personal finances crumbling to eventually end up in financial ruins. According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, people are unaware of of the various misconceptions existing about bankruptcy. If you are undergoing extreme financial stress should consult expert bankruptcy lawyers at 888-297-6023 to clear your doubts regarding misconceptions associated with bankruptcy.
- Large debts result in bankruptcy
The bad financial situation is something nobody can avoid even after carefully planning your expenses. People often save for a rainy day, however, sudden loss of job or a big medical expenditure accompanied with the home, car and other loans can throw anyone off gear. Filing for bankruptcy in such a situation can help an individual, family or business owner get rid of a huge amount of debt.
- Filing for bankruptcy ruins your chances of getting credit
When you file for bankruptcy, it appears on your credit report, with your score going down by 130 -150 points on an average. This may sound very dramatic and drastic and initially it is daunting, but in the long run, things don’t end up as bad as they seem. The bankruptcy is removed from your credit history after 7-10 years in the case of Chapter 7. While if you make efforts to improve your credit rating by living within a fixed budget, making regular and timely payments, you might even get a loan in a couple of years.
- You end up losing everything in bankruptcy
One of the worst fear people have is that filing for bankruptcy will result in them losing all their assets. however, nothing could be far from the truth. Federal and state exemptions are available which help protect a bankruptcy filer’s assets. You can protect up to specified equity of property including your home, car, jewelry, personal property, retirement and pension funds, etc. Basically, bankruptcy provides you with provisions essential to continue your life after the entire case is discharged. In the case of Chapter 7 bankruptcy, many time clients end up keeping all their assets while getting their unsecured nonpriority debt like personal loan, credit card bills, etc. discharged!
- All your debts are wiped away with bankruptcy
If you think that filing for bankruptcy will magically make all your debts disappear, you have been living under the rock. It is important to realize that certain debts (unsecured priority debts) cannot be discharged even after bankruptcy. Secured debts like car loan or mortgages have assets attached to them. If you wish to keep the property, you need to make payments on those debts or the property (car/home) will be repossessed / foreclosed. Some unsecured debts like a student loan, alimony and child support, government taxes, etc. cannot be discharged despite having a collateral. These are unsecured but priority debts which survive bankruptcy.

Having an expert bankruptcy lawyer for your case can, not just clear your doubts but also effectively get rid of your unsecured nonpriority debts so that you can get a fresh financial start.
*Are you more than 60 days past due on your mortgage?
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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.
August 16, 2019
Get Rid of Private Student Loans During Bankruptcy?
Getting a good education does not come cheap. People with limited salaries and assets generally must take out loans for getting quality education to improve their chances of a better future. There are two options when it comes to taking loans; you can either opt for a federal student loan or a private student loan. Though private student loan seems easier to get, Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, inform that they are not that easy to get rid of. If you are going through a rough financial phase and seek to get your debts discharged, you might need to consult with expert bankruptcy lawyers at 888-297-6023 to know more about your student loan debt.

Difference between federal and private student loan debt

Federal student loans are different from private student loans because the government does not generally consider your credit history. Additionally, it does not alter the interest rate depending on your ability to repay the said loan. Moreover, interest rates of federal student loans are capped and generally lower than the market rate for unsecured debts as well as the average interest rate for private student loans. Even repayment of these loans is relatively flexible. You can extend the time frame, reduce monthly payments or even erase some amount of debts (conditional). Sometimes, debtors might pay very less amount with respect to the loan for a number of years and even get the remaining debt forgiven.

Unlike this, private student loans are more like unsecured debts. Students who are unable to get federal student loans can get those from private lenders. However, the interest rate will be huge. When it comes to repayment, you don’t get benefits similar to federal loans. you can ask the lender for leniency but there is not much that you can force them to do.

Prior to 2005, private student loans were treated like other unsecured debts (medical bills, credit cards, etc.) and could be discharged during bankruptcy. However, changes in Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, resulted in both federal and private student loans being treated at par. Thus, unless you can prove undue hardship, you cannot get rid of your student loan (federal or private) during bankruptcy. This is unfair as private student loan lenders charge a higher interest rate, decline loan to people with bad credit history, ask for co-signers and yet get respite during bankruptcy.

Can Congress bring any changes?

Representatives in Congress started rallying for the Private Student Loan Bankruptcy Fairness Act of 2013 since January 2013. This bill is likely to help people get rid of private student loans in bankruptcy. However, people are divided over the issue as they want to level the playing field between the loan borrowers and private student loan lenders. The passing of this bill would help remove any special treatment which is accorded to private student loans during bankruptcy. Essentially, this will put them at par with other unsecured creditors. If the bill becomes a law, private student loan debts would be discharged during bankruptcy as other unsecured debts are. People can hope for the best as this law will definitely help many unfortunate debtors get rid of their private student loan debts in bankruptcy.
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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.
August 13, 2019
Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?
People going through a bad financial phase often opt for bankruptcy to get rid of their debts. Individuals can either opt to liquidate their non-exempt property to pay their creditors under Chapter 7 bankruptcy or choose to repay their loans over a period of 3-5 years in Chapter 13 bankruptcy. However, if some claims persist even after the repayment plan is over, does the individual have the option of extending the repayment plan? According to Dallas based bankruptcy law firm Recovery Law Group, such a provision is not possible. However, expert bankruptcy lawyers at 888-297-6023 inform that you can always find a way around to get things done.

Chapter 13 bankruptcy involves a repayment plan which is devised based on your disposable income. However, some debts might survive despite the repayment plan. Unless these dues are cleared, you cannot get your bankruptcy discharge. In case of such a situation, the bankruptcy trustee might file a motion to dismiss your bankruptcy case. If your repayment plan is over and you lack the additional money to pay, your case might be dismissed which will result in your unpaid interest on credit cards due. Fresh out of bankruptcy and with a huge amount of debts, you will not be able to file for respite also. It is therefore important to look for alternative solutions.

Dismissal of a bankruptcy case will allow your unsecured creditors to stake claim to their dues. Since Chapter 13 bankruptcy repayment plan cannot be extended beyond 60 months, and dismissal of the case by the trustee is something you cannot afford, you need to file an opposition to the bankruptcy trustee’s motion of dismissing your case. Your bankruptcy attorney can ask the court for additional time to pay the remaining money.

If the court agrees to continue a hearing on this matter you get time to pay your debts. Your lawyer can also ask the bankruptcy trustee to agree for continuing the hearing. This will provide you extra time to clear the debts. Though officially you cannot modify or extend your repayment plan, no law prevents a trustee from accepting voluntary payments with respect to your debts beyond your repayment plan. In case the trustee does not agree, the proposal can be presented to a judge who might agree if your Chapter 13 repayment record is excellent.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
YesNo

Are you currently working?
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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.
August 12, 2019