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  • Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?

    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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    • How to Get Mortgage Post-Bankruptcy? – Read This Guide

      How to Get Mortgage Post-Bankruptcy? – Read This Guide

      Many people think that life after bankruptcy is like living in hell. However, this is just a myth. If you act wisely and take the right decisions, your life after bankruptcy can be quite smooth and back on track. You can also get a mortgage to build your own house but it takes about 2- 3 years for this to happen. Since the present day price of houses is quite huge, hence it is very obvious for the lenders to be much more cautious before lending. Thus, to get a mortgage post-bankruptcy needs proper guidance and planning. This article aims at giving you a brief description on how to get a mortgage after coming out of bankruptcy phase and the impact this phase has on your credit status. For a detailed expert guidance and assistance, you can also visit Recovery Law Group or give a call at 888-297-6203.

      What is the impact of bankruptcy on credit score and mortgage lending?

      The first thing that you need to consider before going to buy a new house is the status of your credit. The most commonly adopted credit score by money lenders is the FICO score. Different lenders follow different requirements and credit score based criterion. Generally, any person who has a credit score of 650 or above is eligible to get a mortgage and for those having a credit score below 650, it might be a tedious task to get a mortgage after bankruptcy. Moreover, if you are one of those who want a mortgage with a better price, then you must maintain a credit score of 700 and above.

      If you do not want to face the tedious requirements of the money lenders, you can opt for FHA (Federal Housing Administration) loans as they offer a down payment option of 3.5% at a credit score of 580 and another down payment option of 20% at a credit score of 540.

      It is vital to note that if your bankruptcy is filed under chapter 13 then it will show up on the credit report until next 10 years but if you filed it under chapter 7 then it gets off just after your filing.

      Various factors considered by the lender before giving mortgage:

      Most of the money lenders follow the FICO formula that considers the below-mentioned factors with decreasing priority order:

      1. Your payment history depicts your ability to pay on time or not. It accounts for about 35% of the total FICO score.
      2. The number and amount of credit you owe to every line of credit holds about 30% of the total FICO score.
      3. The number of your recently started credit accounts.
      4. The various types of credits that you are presently using which may include credit cards, installment loans, etc.

      Apart from the above-mentioned factors that are considered for calculation of the FICO score, there are various other factors also that a money lender takes into consideration before making up his mind to give you a mortgage. Some of the most common factors are enlisted below:

      1. History of any bounced checks
      2. The balance of your bank accounts
      3. The kind of job (a stable job is more preferred)
      4. Whether you have any retirement plans or not?
      5. The debt to income ratio must be good

      The time period required before applying for a mortgage?

      Generally, one has to wait for about 2 years post bankruptcy for applying to get a mortgage. For people who file their bankruptcy under chapter 7 are provided insured mortgages by FHA after 2 years of discharge of their bankruptcy. You can also get a mortgage even before the term of 2 years; however, the interest rates will be larger. Hence it is advisable to wait for at least 2 years duration to get a mortgage at pocket-friendly interest.

      How to get better credit scores:

      Following are the ways by which you can get improved credit scores. These methods are applicable whether or not the bankruptcy shows up on your credit report.

      1. Get a credit card that is secured- this is a counter-intuitive way of improving your credit score. You can take loans and credits from the bank and then repay them in the specified time limit. Doing this will improve your FHA score and liability. It will take some efforts to get a secured credit card post-bankruptcy, but you must not give up easily. However, do not apply for too many of them as doing will increase the financial burden on you.
      2. Try to take up a loan that needs repayments in installments- there are various loans like the car loans and student loans which require the debtor to pay on a monthly basis in the form of installments. Such loans are termed as installment loans. You can take such a loan and then make timely payments to improve your credit score.
      3. Rebuilding the credit report- three of the major credit agencies whose report you must check are Trans Union, Equifax, and It is a very important step after the bankruptcy is discharged so as to rectify if any paid debts are stilling being shown on your credit report. In case of any discrepancy, consult the respective agency and get your credit report correct and updated.
      4. Using rent for payments- using the rent for making payments can be a smart way of getting out of your debts. You must get these rent payments included in your credit report to increase your credit score. For this, you can either contact your property manager if he/ she is cooperative or else you can contact the agencies that report credit to supply your rent payment details to the credit score issuing agencies.

      Lastly, you must have a logical and realistic plan before applying for a mortgage. This is important to avoid any further problems after the discharge of the bankruptcy. For proper planning, you can consult a good bankruptcy attorney who can sort out things for you.


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

        *Do you own a home?

        Are you currently working?

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

      • Filing Bankruptcy in case of Natural Hazard in Los Angeles

        Filing Bankruptcy in case of Natural Hazard in Los Angeles

        Natural calamities cause a huge impact on every individual’s life in every possible aspect. It takes several years for a person to overcome the losses caused by a natural disaster and to get back to a normal life. It causes great mental as well as financial peril on everyone’s life. Many people find it hard to overcome the financial burden due to pre-disaster debts accompanied by post-disaster losses. Hence there is a sudden boom in the number of people filing for bankruptcies immediately after a natural calamity. In recent years Los Angeles and Dallas, TX have seen many natural disasters which have toppled the life in these areas. Hence there is a dramatic rise in bankruptcy cases too. If you are also looking forward to filling bankruptcy then you must visit Recovery Law Group or dial 888-297-6203 for the best assistance.

        How natural disaster does cause an increase in bankruptcy cases?

        It is a common trend that the number of bankruptcy cases increases after the occurrence of a natural disaster in an area. However, this rise may not be immediate because just after a natural calamity, the first priority of people is to get back to normal living condition rather than repayment of loans and debts.

        Another reason behind the delay in filing bankruptcy is the migration of people to new places in search of job and livelihood. Hence they might file for bankruptcy from their new place after they settle down there. Also, in case of a natural disaster people tend more towards taking debts rather than repaying their previous debts. This is so because they, first of all, want to rebuild their shelter and start a source of income for themselves which requires money. However, this money may sometimes cross their limit to repay the debt and hence lead them to the situation of being bankrupt.

        Hence in all, there is some lapse needed to properly evaluate the effect of natural calamities on the bankruptcy cases. This time can be about 2 to 4 years.

        According to a study conducted by a professor named Robert Lawless of Nevada University, Las Vegas, it was observed that there was an increment of 50% in the bankruptcy cases after three years from the date of occurrence of a hurricane in the region under the study. Also, it was inferred that the cases of bankruptcy rouse more in areas with less worthy houses in comparison to the areas with high-end houses.

        It is better to be prepared rather than losing in Los Angeles:

        Unlike other cities of Southern America, Los Angeles stands third in the vulnerability to a home loss in case of natural disaster hence it is very important for its people to be prepared beforehand for any such calamity. These disasters may be hail, earthquake, tornadoes, floods, etc.

        According to the past trends, it is seen that in hurricane and flood-prone areas, there is a drop in housing rates which is not the case with earthquake-prone regions. This is so because the earthquake is much common in these areas and hence people are much more used to face it as compared to other disasters. Thus, people in such places hardly take up insurance against earthquake which can be termed as just a vague kind of optimism. This practice can be bothersome in areas which show a tendency of being hit by an earthquake of magnitude above 6.5.

        Hence, it is always recommended to take earthquake insurance if you live in areas vulnerable to it irrespective of your capabilities to face the aftermath of an earthquake. This preventive measure must be taken for every kind of natural disaster. It is good to be optimistic about life but it is better to be preventive so that if an unexpected calamity occurs you can get back to a normal life without facing much loss.

        How to prevent yourself from financial peril following a natural disaster?

        As explained above, it is extremely important to beware of any natural disaster and be prepared to face the repercussions of it beforehand. For this to happen, first of all, you must plan and put a small part of your regular income into some kind of emergency fund or insurance scheme. Such schemes might include natural disaster as well as other emergency situations. Thus you must hold an emergency fund always. You can also opt for any natural disaster-oriented insurance scheme if you want to. For this, you can consult a good insurance agent who would be able to guide you through the best possible insurance schemes for you.

        In case of occurrence of any natural calamity, there are certain things that you need to be aware of. Three of the most important things that you need to keep in mind are enlisted below:

        1. If you have opted for an insurance scheme but the insurance agency denies the payment of insurance money that was promised, then you must not surrender. Instead, you must fight for your right and get the promised amount of money as per the insurance scheme that you signed.
        2. You can also go through a financial assistance program run by various government firms to help its public to plan their finances in case of a natural disaster. However, you might have to work hard a bit to know about them and enroll in them.
        3. Another option to get back to normal life could be bank loans for disaster-hit areas that help people to rebuild their homes and provide finances to them for survival purposes.

        And still, if you feel like filing for bankruptcy then you must consult a good bankruptcy attorney who will guide you through the complete filing process and will also recommend you the best possible way to get through the financial peril after a natural disaster. If you live in Los Angeles, then you can visit Recovery Law Group or better guidance on how to file 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.

        • Laws to Secure Your Credit Reports

          Laws to Secure Your Credit Reports

          According to Javelin Strategy & Research, One of the financial advisory firms in the U.S., more than $100 billion has been gathered in fraud using consumer’s identification between 2011 and 2016. By keeping the identity of others, the criminals open new credit accounts and use that account to purchase the products. Thus, The fraudulent activity has enabled the criminals to cheat U.S. consumers to this large extent. Right now, There are new federal laws that can help the Americans to safeguard their identity and prevent theft. The law which is termed as Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) has come into effect since September 2018. The key tools (that are also free) security freezes and fraud alerts are being enhanced for the benefit of U.S. Consumers.

          Read the details on how the consumers can make the best use of the tools governed by the federal law for their benefit:

          What’s a Security Freeze?

          The new federal law defines Security Freeze as the restriction to disclose consumer specific reports which are subject to a security freeze to any person requesting the same. These restrictions are imposed on consumer or credit reporting agencies who handle such reports. In this way, The identity of the consumer is safeguarded and prevents identity criminals from opening credit accounts under different people’s names. Through the same Companies who are ready to offer credit in the consumer’s name who will not be able to check the credit file as it is subjected to security freeze and will deny any new requests for the offering of the credit.

          Since September 2018, The EGRRCPA mandated the security freeze on consumer’s report and it is to be done free of cost. The security freeze, When demanded by the consumer charged by credit reporting agencies. The security freeze will continue until the consumer requests for its removal.

          Security Freeze – Exemptions

          A security freeze is mostly applicable in cases where the disclosing of the credit report is limited while extending credit to the consumer. So the law has some states where there will be some exemptions too. A credit report cannot restrict from getting shared in the below cases. –

          • If the consumer’s account is being reviewed or collected, Then the person or entity associated with this process can access the credit report
          • Any government company or court acting under an issued court order, warrant or a subpoena will need the credit report access. A private collection agency also can request for the same if acting under similar orders
          • Government agencies that are investigating fraudulent activities or working on unpaid or delinquent taxes based on court orders can request the credit reports
          • Credit reports can be asked by insurance companies if they are considering ensuring the consumer involved
          • All purposes, Apart from the issuing of credit, May warrant the need for a credit report to be made available. It could be for verifying or authenticating the consumer’s identity or for fraud related investigations

           

          The Cons of a Security Freeze

          Getting credit would eventually become a tougher and difficult process if there is a security freeze forced on your credit report. This risk is generally notified to all consumers who inquire the imposing of the freeze on their credit report. As an alternative, Free fraud alerts are another means of being aware and alert about the breaching of your identity or stealing of your information.

          Fraud Alerts

          Fraud alerts are a statement in the credit report of a consumer indicating that the consumer may be a victim of a fraud. That is to notify the receivers of the report that there had been a chance of identity theft and They can take additional steps to verify the identity of the consumer prior to increasing the credit. There are two types in these fraud alerts initial fraud alert and an extensive fraud alert. The latter type is free for seven years and can be availed if the consumer criticisms about identity theft with the credit report company.

          Initial fraud alerts are ones that have been enhanced by the new federal laws. Prior to the revisions, The companies had to provide free initial fraud alerts for 90 days if a consumer is suspicious about his identity being compromised or stolen. Now, Under the new law, This period has been extended to one year. Active duty alerts are another type that is exclusively for members of the military and on active duty.

          Utilizing the law

          The EGRRCPA insists on having websites or means for the consumers to seek security freeze or fraud alerts with their credit reporting agencies. Alternative means for the consumers will be to reach the agencies through email and phone. Seek the guidance with experts in this field such as Recovery Law Group, who can give the necessary inputs to utilize the federal government laws to your favor.


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

            *Do you own a home?

            Are you currently working?

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

          • Can You Get Credit After Bankruptcy?

            Can You Get Credit After Bankruptcy?

            People who are undergoing severe financial crisis often abhor the idea of bankruptcy. This can be due to various myths associated with it such as it hampers your credit rating forever, you will lose all your possessions, etc. These myths can be quite a deterrent for people considering bankruptcy as an option for getting out of the financial mess. According to Dallas based law firm https://www.bankruptcyreliefcenter.com/, bankruptcy actually gives people a chance to improve their credit score. More often than not, it has been observed that credit score just prior to the bankruptcy filing and one year after debts are discharged is markedly improved. It is important to note that there is a negative impact on your credit score in the initial bankruptcy filing days. However, steps can be taken to rebuild your credit score for a better future.

            Rebuilding credit requires both time and effort on your part. It is to be remembered that you need to have patience as a credit rating will improve with positive steps in due course of time. Here are a few steps that can help improve your credit rating:

            • Stick to a budget – More often than not, spending beyond your means is the reason why people are in debt most of the times. If you wish to rebuild your credit, you need to stick to a strict budget which caters to essentials like housing, food, utilities, transport, and medical expenses.
            • Pay on time – One of the major steps to rebuilding your credit is to make bill payments on time. If you have a habit of forgetting, set a schedule, make reminders or set up automatic payment for bills before the due date.
            • Get a secured credit card – Secured credit cards are similar to debit cards, wherein you pay the money beforehand. This way you can avoid overspending. The payments made are reported to credit agencies which help in improving your credit score over a period of time.
            • Get gas or retail card – Since you but gas to commute, it is a necessary expenditure. Thus having a gas card is a smart move. A retail card might seem risky, but it is an important way to show credit bureaus your responsibility in handling money.

            A person with a bankruptcy record is often not trusted, but making conscious efforts such as those mentioned above can go a long way in rebuilding your credit score. Bankruptcy lawyers can help you get rid of debts and you can initiate the process of credit rebuilding by avoiding any bad money practices and thereby improving your ratings with the 3 main credit bureaus. Take the help of seasoned bankruptcy lawyers to get past the hurdle of bankruptcy and emerge successful.


              *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.

            • Should I Stop Using Credit Cards if I Aim to File For Bankruptcy?

              Should I Stop Using Credit Cards if I Aim to File For Bankruptcy?

              Many people who are struggling with financial issues often consider bankruptcy as the means of getting out of a tough financial spot. However, if you wish to file for bankruptcy, it is important that you keep certain important things in mind as certain actions will be under scrutiny when you file for bankruptcy. Using credit cards, for example, is one such activity which might put you in a bad light when you file for bankruptcy (in either chapter). In fact, it may even have criminal consequences and may cause the judge to refute your claims for bankruptcy. (more…)

            • Can You Afford to Ignore Credit Card Debt?

              Can You Afford to Ignore Credit Card Debt?

              Anyone can fall into a bad financial situation anytime. During the time of financial uncertainty, it is at times difficult to make even essential payments, due to which many people come to rely on their credit cards, unaware of the fact that the dues they are accumulating so will be harder to shake off. Increasing credit card debt can cause debt collectors and creditors to come knocking on your doors and take steps to recover their dues including wage garnishment. (more…)

            • Here’s How We Can Help You With Chapter 7 And Chapter 13 Issues

              Here’s How We Can Help You With Chapter 7 And Chapter 13 Issues

              Bankruptcy has been a serious concern since forever, however many homeowners, families and individuals throughout the U.S. consider it the right choice. To understand bankruptcy protection or liquidation process does require an experienced and comprehensively knowledgeable legal professional, who further will guide you through its system. Recovery Law Group is committed to guiding you as you prepare for bankruptcy and protection. (more…)