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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?

      *Do you own a home?

      Are you currently working?

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

    • How Does Bankruptcy Affect Your Health?

      How Does Bankruptcy Affect Your Health?

      People who are suffering from overwhelming debts often find bankruptcy as a way out. Bankruptcy is a legal way to reorganize your finances and get rid of debt so that you can get a fresh financial start. The two main types of consumer bankruptcy are Chapter 7 and Chapter 13. According to a new study, bankruptcy is supposed to not only give you a better financial start but is also good for your finances too!

      Consumer Bankruptcy Codes Elaborated

      As stated previously, Chapter 7 and Chapter 13 are the most common consumer bankruptcy codes, each having its own advantages. In chapter 7, your attorney and bankruptcy trustee sort your assets into exempted and non-exempt categories. State exemptions generally cover equity in the property (car and home), cash, up to a certain limit, retirement accounts, personal belongings, and other properties. The state of California has two separate sets of exemptions which cover different amounts of diverse properties. While the exempted property is left out, the non-exempt property is sold off to pay your creditors. In case all your property comes under exempt property, you don’t have to surrender anything. After the process ends, any and all unsecured debts are discharged or written off. Chapter 7 case is not meant for everyone, only those people who are in dire need of bankruptcy protection can file under this chapter. To be eligible for it, Los Angeles based bankruptcy law firm Recovery Law Group lawyers inform, you have to pass the state means test.

      For those people who are unable to qualify for chapter 7, Chapter 13 is a good option. In this case, you and your legal team develop a repayment plan. This is drawn keeping in view the value of your non-exempt property and your income. Within 3-5 years of your repayment plan, you will be able to make payments on your home mortgage and car payments without losing any property. After the repayment plan is over, any remaining unsecured debts are discharged. Since this chapter provides an option for catching up on mortgage payments depending on your income, it is an excellent option for people with a steady income who wish to avoid foreclosure.

      It is important to note that both chapters’ help gets unsecured debts such as medical bills, credit card bills or personal loans discharged. Such unsecured debts are completely erased at the end of your bankruptcy while secured debts like home and car loan are handled in a different manner. Your personal liability in secured loans is removed, i.e. if the property is foreclosed or repossessed and is sold for an amount less than what you owe, you are not required to pay the difference. But, if you wish to keep the property, you need to pay the amount due to you. In this case, you can either make payments for the property and keep it or surrender the property and leave any liabilities.

      With both bankruptcy chapters,’ you get to avail the automatic stay benefit. Thanks to this provision, any collection actions by creditors or debt collectors are legally prohibited. Thus your property cannot be foreclosed or repossessed; you are secure from wage garnishment, collection lawsuits, threatening letters, and phone calls. With automatic stay in place, you get time to get your financial affairs in order. You can call 888-297-6203 to consult expert bankruptcy attorneys to explain in detail how the bankruptcy process works.

      Debts and their relation to your health

      There is no denying that financial troubles can wreak havoc on your life. Since you are constantly worrying about how to protect your family and provide for them without losing your assets, it is bound to take a toll on your health. Constant financial concern is the most prominent reason for stress in Americans, which often results in ill health. The higher the stress levels, the shorter your life expectancy can be. You are more prone to anxiety, hypertension, heart problems, diabetes, cancer, and other health disorders with elevated stress levels. Thus debt can be responsible for any ill-health you have.

      As per a study conducted by the National Bureau of Economic Research, bankruptcy proves to be beneficial for a large number of debtors. The average income for people who filed for bankruptcy increased by $5,000 annually. Even the 5-year foreclosure rate is 20% lower for bankruptcy filers compared to those people who didn’t file for bankruptcy. The most interesting finding is that the 5-year mortality rate is 1.2% lower for bankruptcy filers than non-filers. This indirectly proves that financial stress is alleviated by filing for bankruptcy, thereby improving a chance for people to lead a quality life.

      On average, any American house has nearly $16,000 in credit card debt alone! This is big money considering the current economy. Paying back such a huge amount is not easy since a large number of people are using a credit card to pay for monthly expenses and sometimes even utilities. This kind of financial stress can cause numerous health issues in individuals (both physical and mental). More often than not, people who are struggling with debt are unable to find a way to get out of this mess and improve their finances. However, bankruptcy is one of the best ways to get rid of your debt by either consolidating it or paying it off in small installments. In case you too are struggling to make financial ends meet, consulting a bankruptcy lawyer make things clearer for you. Get your case evaluated to find out the best possible way to deal with debts.


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

        *Do you own a home?

        Are you currently working?

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

      • How to 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.

        • Can Bankruptcy Help Eliminate Medical Bills?

          Can Bankruptcy Help Eliminate Medical Bills?

          Financial problems can arise due to many factors, one of which is huge medical bills. If non-payment of medical dues can cause economic issues for you, you might have to file for bankruptcy to save yourself from insurmountable debts. However, many times, clients feel guilty about filing for bankruptcy, probably due to the fact that they somehow were incapable of arranging for such an emergency which may lead to the feeling of incompetence. It is important to remember while taking a guilt trip; that this is something nobody asked for and therefore bankruptcy is not something one should be guilty of doing in such a situation.

          More often than not, medical debts are often unforeseen and probably impossible to avoid and manage. Los Angeles based law firm Recovery Law Group advises that bankruptcy is a legal provision available to deal with such situations. More often than not, out of the various debts incurred, the medical debts is almost always impossible to cover. The reason for this might be that more often than not, medical dues are followed by loss of a job or reduced salary, which makes it nearly impossible to cover your financial dues. Since a majority of the times, credit cards are used to pay for medical bills, the exact amount you have indebted yourself remains unclear until the water is above the head.

          Unfortunately, this debt is one of the worst as medical bill collectors are some of the worst and most aggressive ones in the industry and may harass you continuously till you clear the dues. This can aggravate your already fragile condition. It is therefore advised that you consult adept bankruptcy lawyers to get help for any medical dues you have incurred, at the earliest.


            *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.