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Tag: chapter 7 bankruptcy

  • The 10th Circuit rules

    The 10th Circuit rules

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

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

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

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

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

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

    The final verdict

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


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

      *Do you own a home?

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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.

    • Status of Pets in Chapter 7 Bankruptcy

      Status of Pets in Chapter 7 Bankruptcy

      People in Los Angeles love to keep pets like horses and dogs. When they need to file bankruptcy, the fear of losing them in the procedure is quite high. Most of them shy off from applying for chapter 7 bankruptcy since they do not want to lose their pets. They love their pets and treat them like family members. However, the court needs to investigate many things before allowing pets to be exempted. Applicants looking for some valuable advice to keep their pets must visit- Recovery Law Group.

      How can an applicant exempt their pets in a bankruptcy case?
      When a person applies for chapter 7 their entire property is evaluated, which also includes high maintenance pets like horses and dogs. The aim to evaluate the entire assets is to generate a decent amount to pay the creditors. If the pets can fetch good money the court will not shy from putting it in the non-exempted column. Chapter 7 allows the applicant to keep certain assets that will not be sold out. The assets that are exempted may differ from State to Federal system.

      Are pets exempted?
      Some states may allow the applicant to keep the pets. So, if the applicant belongs to those States, he can keep the pets. While other states may offer a wildcard exemption. A wildcard exemption is a gift card by the court that allows the applicant to keep any of their personal objects that may not value more than a certain figure. If the pets’ value falls within that figure the applicant can keep them. The applicant must study the State and Federal rules for exemption in Chapter 7 before applying for bankruptcy. This will give them a clear picture.

      Can the court exempt pets?
      The trustees appointed by the court can exempt the pets without employing wildcard. The trustee if finds, the pets cannot generate much value, it can exempt them. An ageing horse or dog that may not bring much monetary value can be exempted by the trustee. However, a good breed dog or horse that will generate good worth will not be exempted.

      Pet care
      Pets care can be an expensive affair. The applicant needs to fill many forms before filing Chapter 7 Bankruptcy case. The forms have details of the clients’ income, expenses, assets, debts, and the latest financial transactions. Schedule J is the form that shows details of the applicant’s expenses. If the trustee observes that the client is spending far too much on pet care, they can advise the court to dismiss the case. The trustee may feel that the money spent on pet care could have been otherwise used to pay the creditors.

      Day-day living expenses
      The applicant’s day-day living expenses are scrutinized in detail by the trustees. In no way, the applicant can enjoy a luxurious life and be a suitable candidate for Chapter 7 bankruptcy Los Angeles. The court needs to examine whether the case is not a fraud one. Hence, if the applicant’s daily expenses are minimal, despite expensive pet care, the trustee can grant an exemption on pets. Cutting their own cost by using an inexpensive car, abandoning middle-class luxury lifestyle can convince the trustee and allow immunity to pet like horses and dogs.
      Apparently, the court’s major objective is to allow the applicant to enjoy a decent life with their loved ones after the bankruptcy case. For more details on retaining the pets please call on- 888-297-6203.


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

        *Do you own a home?

        Are you currently working?

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

      • Who is Not Eligible to File for Chapter 7 Bankruptcy?

        Who is Not Eligible to File for Chapter 7 Bankruptcy?

        A bad financial situation can affect anybody anytime. Bankruptcy is one of the most viable solutions to get out of huge financial debts. A person or company can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 or liquidation bankruptcy is generally preferred as it takes comparatively less time and gets rid of unsecured debts. However, qualifying for Chapter 7 is one of the primary requirements to get a discharge. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, an individual filing for consumer bankruptcy needs to pass the means test, which requires you to have income less than an average household with a similar number of members. Disabled veterans or debtors whose debts arise mainly due to a business operation are exempted from the means test. There are other criteria to consider regarding eligibility for Chapter 7 bankruptcy. These include:

        Your income

        If your monthly income (average of the last six months) is less than the state median income, then you are eligible for Chapter 7 bankruptcy. If your income is more than the average income, you need to pass the means test. The bankruptcy trustee checks your disposable income to find out if you can repay your debts. Disposable income is calculated by deducting certain essential monthly expenses and required debt payments (secured and priority debts) from your total income. This disposable income is used to pay unsecured nonpriority debts such as credit card bills, personal loans, medical bills, etc. over a period of your repayment plan. Documents submitted while filing for bankruptcy include Schedule I where your income is mentioned and Schedule J which lists your expenses. These are used to calculate your disposable income. If there is enough disposable income, you can opt for Chapter 13 bankruptcy instead of Chapter 7.

        Any previous bankruptcy discharges

        There is a time limit to filing for bankruptcy and getting a discharge in Chapter 7 bankruptcy case. A Chapter 7 bankruptcy case discharge within 8 years or Chapter 13 bankruptcy case discharge within the previous 6 years you cannot get a discharge in Chapter 7. Additionally, if a previous Chapter 7 or Chapter 13 case was dismissed by the court in the past 6 months due to:

        • your violation of a court order;
        • your filing was an abuse of bankruptcy system;
        • you asked for dismissal when a creditor sought relief from the automatic

        Defrauding creditors

        Your case might also be dismissed if you tried to cheat your creditors. Concealing assets so that you do not have to pay your creditors or transferring them to family or friends in order to prevent the non-exempt property from being liquidated, is considered fraud by the court. The court might dismiss your bankruptcy case if the trustee finds evidence of:

        • a huge amount of debts for luxury items within a stipulated time frame of bankruptcy filing;
        • selling of assets to relatives or friends at less than fair market rate;
        • hiding money or property from your business partner;
        • lying about your debts or income on your credit application.

        Failure to disclose any pertinent information regarding your financial affairs or hiding assets to defraud your creditors might get your case dismissed. You might also be prosecuted for fraud.

        Incorporated entity

        In case the filer is a Corporation or LLC, they cannot get a discharge of their debts in a Chapter 7 bankruptcy case. In this case, the assets of the company are liquidated by the trustee and the fund so generated is distributed among the creditors. For further inquiry, call 888-297-6023 to speak with expert bankruptcy lawyers.


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

          *Do you own a home?

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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.

        • What is Emergency Bankruptcy Filing?

          What is Emergency Bankruptcy Filing?

          Creditors can go to any lengths to get their money back. This may include threatening phone calls, foreclosure, repossession, wage garnishment, collection lawsuit, etc. If you are on the verge of getting evicted or any similar situation, bankruptcy can come in handy. When you file for bankruptcy in court, the automatic stay provision protects you from all collection actions by creditors. However, bankruptcy filing requires you to fill several forms. This requires time, which you don’t have. Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, suggest an alternative. You can opt for an emergency bankruptcy filing, also known as skeleton filing, where you need a few documents. This will result in an automatic stay, while you can submit remaining documents within the next 14 days. Call 888-297-6023 to know more about the procedure from expert bankruptcy lawyers.

          When would you need emergency bankruptcy filing?

          A bankruptcy petition comprises of numerous forms and details regarding your income, assets, your creditors, etc. However, when faced with immediate foreclosure or repossession action, there might not be time enough to get everything in order. You can, however, file bankruptcy forms online quickly using the emergency bankruptcy filing. You can access the online filing system anytime and start the online bankruptcy process by uploading some of the required forms. These include your bankruptcy petition specifying the chapter you are filing under and other relevant information like the creditor mailing list; mandatory credit counseling certificate or a request for its waiver and form B121 providing information about your Social Security number. You also need to pay a filing fee or submit a request for its waiver or request paying the fee in installments. You will need to submit all additional documents within 14 days of online filing of your skeleton bankruptcy case or it will be dismissed.

          Emergency bankruptcy filing steps

          Emergency bankruptcy filing involves the following steps:

          1. You must check with the court clerk or the official website to find out which forms are required for an emergency
          2. You need to fill the voluntary petition for individuals filing for bankruptcy.
          3. Ensure that you include the names and addresses of all your creditors, collection agencies, attorneys, sheriffs and any other person who can collect a debt from you.
          4. Fill form B121 providing information about your Social Security number.
          5. Complete all forms required by the court. This can vary in every jurisdiction.
          6. File the original form along with the necessary number of copies with the court clerk. This should be accompanied by the bankruptcy filing fee, request for paying the fee in installments or a fee waiver application, along with a self-addressed envelope. Always ensure that you have a copy of every document for your records.
          7. File all remaining bankruptcy forms within 14 days to avoid dismissal of the 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.

          • Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

            Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

            Debt discharge or release can be regarded as one of the major benefits of chapter 7 bankruptcy San Antonio. However, it can be so that the debt discharge might be limited, or one might not get any discharge. Why does this happen, how to avoid this? All these questions will be addressed below. Meanwhile, address all other worries or questions about bankruptcy and their chapters on https://bankruptcy.staging.recoverylawgroup.com/.

            Legal reasons for not qualifying for a discharge

            The two common legal barriers for not qualifying for a debt release can be listed as follows-

            • Error in procedure

            The bankruptcy court is a legal framework and it has a pre-defined methodology of getting things done. For instance, filing of the form, passing of motion for different scenarios and presenting the case in front of the court has a set procedure and experienced attorneys can best handle the documentation and presentation part. A small error in this process could create a legal barrier for availing debt discharge.

            • It is a non-dischargeable debt

            There are some debts which have been categorized under non-dischargeable. There are almost 19 types of debts which cannot be discharged. If your debt falls under this category, it is very unlikely to get a discharge. However, under certain circumstances, with a good attorney, you may be able to get some relief for these 19 categorized debts also.

            Debts that are normally non-dischargeable

            Under most scenarios, there is some type of debts which are not subject to discharge most often than not. The list below consists of some common non-dischargeable debts-

            • Any unscheduled debt, which the debtor fails to list in the bankruptcy petition and for which creditor does not receive a notice because of not being on the mailing list, shall not be discharged
            • Tax Debts
            • Child support and alimony
            • Fines, penalties and other directive fees to government agencies
            • Student loans
            • Drink and drive debts
            • Debts from tax benefited retirement plans
            • Debts arising from Condo or HOA fees
            • Attorney fees
            • Criminal restitution

            On what basis can the Court deny a qualifying release of debt?

            The basis for court denial for release of debt can make you more complaint and vary about the process and you can avoid such scenarios. Few of them can be listed as follows-

            • Not facilitating requested tax documents
            • Did not complete financial counseling course, which is a mandatory requirement for filing a bankruptcy court
            • Any transfer or nondisclosure of a property or an asset to manipulate the court and the creditors
            • Tampering with the book records, agreements and any other records of value
            • Any fraudulent act in relevance to the bankruptcy case
            • No or incomplete records for lost/sold/disposed assets
            • Violation of court order during the bankruptcy process
            • Have received a bankruptcy discharge in the recent years

            Debts that can be subject to a strong release objection

            These are debts that can create controversy amongst the lenders and can lead to strong objection if the filer appeals for release of such a debt. Such debts have a 50-50 chance of being released. They can be listed as follows-

            • Use of credit card for the purchase of luxury goods – In 99.9% cases, such a debt is a non-dischargeable debt and every credit card lender will surely object release or discharge of such a debt
            • Cash advances – If a bankruptcy filer has received any cash advance from a lender within 70 days of the bankruptcy filing, especially above $1,000, it can be regarded as a fraudulent transaction. Hence, the cash advance could be a non-dischargeable debt.
            • Any debt that is obtained by providing for incorrect or false documentation
            • Any debt that has been incurred due to willful damage to other’s property of causing injury to someone else is also subject to a non-discharge.

            It is still not something which straightforward to interpret as there are a lot of ifs and buts when it comes to the type of debts that can be wiped out versus debt that shall prevail even after bankruptcy. Dial in 888-297-6203 for more information and get all your questions answered from the subject matter experts.


              *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.

            • Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

              Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

              When you file for bankruptcy to get rid of your debts, there are certain concerns regarding your assets, especially your house. According to lawyers of Dallas based bankruptcy law firm Recovery Law Group, you have the option of retaining your house, delaying foreclosure or letting the house go when you file for Chapter 7 bankruptcy. However, you can only keep your home in a liquidation bankruptcy if you are current on your mortgage payments and there isn’t significant equity in the home to pay creditors.

              What happens to your home during bankruptcy depends a lot on various other circumstances. These are a few options:

              1. The bankruptcy trustee can sell your home

              Exemptions provided by state and federal government provide you certain equity to protect your primary residence as well as trailers, burial plot, etc. If there is not much equity left in the property to pay your unsecured creditors, the bankruptcy trustee won’t sell your home. In case the real estate sector has boomed, the non-exempt equity in your home might not be able to protect your house from going under the hammer.

              Homestead exemption is used to protect a certain dollar amount (certain acres in some states) of equity in your primary residence. This amount varies from state to state and whether you are choosing state or federal set of exemptions (some states offer a choice between state and federal exemptions while others do not). An exemption cap exists in bankruptcy code which prevents debtors to switch to states which offer more homestead exemption in order to protect their assets. under this, you need to have owned the home continuously for a minimum of 40 months in a state to get entire equity amount exempted (as per the state’s rules).

              To avail any state or federal bankruptcy homestead exemption, it is essential that you have been residing in that state for 730 days. If that is not the case, then you can apply for exemptions of the state you had been residing for a major portion of the 180 days prior to the 730-day period. To know more about exemption details, call 888-297-6023 to speak with expert bankruptcy lawyers.

              You can keep your home if you are current on your mortgage payments when you file for bankruptcy and continue making mortgage payments during the bankruptcy process. However, for this to take place you need to be sure about the amount that your property is worth. From the fair market value of your home, you need to deduct your homestead exemption, the trustee’s commission, cost of sale, mortgage due on the property and all non-mortgage liens such as tax lien secured by the home. If the amount that remains is insignificant, then the trustee won’t sell your home. However, if the amount is substantial, then your home might be sold, and the money will be distributed among you (homestead exemption), the trustee, mortgage and lien holders, and the unsecured creditors.

              1. You could lose your home to foreclosure

              Alternately, even if bankruptcy trustee does not sell your home and you are behind mortgage payments, you could end up losing your home to foreclosure. Though Chapter 7 bankruptcy can provide temporary relief from foreclosure, it does not have provision to allow debtors to catch up on arrears. If you wish to protect your home, you could either:

              • Consider Chapter 13 bankruptcy, where you could catch up on mortgage arrearage and protect your home;
              • Negotiate with your lender to modify the loan or get it refinanced 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.

              • 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?

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                  • Save Your House with Chapter 13 Bankruptcy

                    Save Your House with Chapter 13 Bankruptcy

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

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

                    • Repay mortgage arrears

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

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

                    • Make mortgage affordable

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

                    • Get secured debts reduced

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

                    • Contest foreclosure

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

                    • Turn subsequent mortgages into unsecured debts

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


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

                      *Do you own a home?

                      Are you currently working?

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

                    • Responsibilities when filing bankruptcy under Chapter 13

                      Responsibilities when filing bankruptcy under Chapter 13

                      Chapter 13 filing forms are pretty similar to the forms used for Chapter 7. The information and objectives are the same in both cases. This procedure includes detail of income, assets or properties, expenses, and debts. Along with this information, you shall also provide for a plan that shall manage all the debts in the future 3-5 years. Along with these information pieces, you also need to enclose your latest federal and state tax returns. There has to be proof for income tax filing for the last 4 years. You also have to avail a certificate for credit counseling that has been issued from a United States Trustee approved organization. To know more about Chapter 7 bankruptcy or guidance about anything relating bankruptcy, log on to Recovery Law Group to clarify all your questions and doubts.

                      The payments usually monthly are made to the bankruptcy trustee who later distributes the same as decided to the lenders. The bankruptcy trustee collects a commission for the tasks he/she performs. In order to initiate the release of debt under Chapter 13, you have to follow the payment plan for the specified period.

                      What will I have to pay?

                      The common question with respect to Chapter 13 is what type of debts will be paid and in what proportion. By addressing this question one can easily determine the net liability one may have to bear in the case of Chapter 13 bankruptcy.

                      • Administrative fee

                      This type of fee includes the filing fee, trustee commissions that could be 3% and as high as 10% on the monthly payment, and attorney fees. While attorney fee depends on whether you hire an attorney or not, even though it is highly recommended, filing fee and commissions have to be paid out without choice. These debts or fees have to be paid off in full.

                      • Priority debts

                      Similar to administrative fees, these debts are also essential and need to be paid in full meaning 100% without any rebate or discharge. This includes debt like alimony, child support, tax debts may be state or federal, money owed to employees, contributions pending for employee benefit fund, etc.

                      • Secured Debts

                      All sorts of secured debts home mortgage, auto loans, jewelry loans, etc., need to be paid off in full in order to retain the asset gauged as collateral. There can be a small possibility, where you could get a marginal rebate on paying off debt for secured assets.

                      • Unsecured Debts

                      These kinds of debts usually include credit card, utility bills, medical bills, membership of some clubs, payday loans, etc. These debts have high-interest rates and are not secured by any asset, lien or any other guarantee. The payout to these debts is the last priority. Depending on the disposable income and the amount of income available after allocating the same to the priority debts, the percentage of monthly payments under Chapter 13 could vary between 0 to 100%.

                      Things to note

                      There are different ways of calculating disposable income and practical tenure of repayment. To find the most beneficial and appropriate one that could be approved easily by the bankruptcy court without too much intervention, it is best advised to consult an experienced attorney. There are different ways of how an unsecured debt can be converted into a secured one. For instance, if you used a credit card for purchasing a luxury item recently, the credit card company might want to prove your intentions of fraud and might want to convert the debt related to fraud. This will turn the debt liability to 100% which could have been 0%.

                      Similarly, there are secured credit cards, and various other lending traps, which many people discover only after filing bankruptcy. Seeking assistance is essential to making a well-informed decision. Dial in 888-297-6203 for best solutions.


                        *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.