Chapter 13 Bankruptcy

Difference Between Chapter 7 and Chapter 13

Call: 888-297-6203 People who can no longer pay their debts are offered help in the form of bankruptcy. They can either settle their debts by liquidating their assets or repaying the creditors through a repayment plan. The former takes place in Chapter 7 bankruptcy cases, while the latter occurs in chapter 13. Dallas based bankruptcy law firm Recovery Law Group says, the chapter of bankruptcy you file under depends on your income, assets, debts and your ultimate financial goal. Chapter 7 bankruptcy This is one of the most common chapters of bankruptcy file in the US. Individuals, married [...]

2019-10-30T11:04:41+00:00

Inability to Follow the Chapter 13 Monthly Payment Plan

It is very difficult to decide whether to file for a Chapter 13 bankruptcy or not. The main reason it is a difficult decision to make is that it might come with a lot of limitations. In Chapter 13 bankruptcy, your lawyer and your bankruptcy trustee (appointed by your court) make a feasible repayment plan, in which you are supposed to make monthly payments to the trustee for 3 to 5 years. At first, it might sound convenient for you, but later, you come to know more. Your household size, household income, and debts decide your Chapter 13 [...]

2019-10-30T10:49:19+00:00

Can Student Loans be Discharged in Chapter 13 Bankruptcy?

Unlike chapter 7 which is a liquidation bankruptcy, chapter 13 involves the reorganization of debts. Student loans are priority debts that cannot be discharged during any bankruptcy chapter unless you can prove hardship. In the case of chapter 13, you can include them with the court’s permission in your repayment plan. Surprisingly, say Dallas based bankruptcy law firm Recovery Law Group many people are unaware that student loans cannot be modified, hence they do not include them. However, these debts can be reduced as well as modified during bankruptcy. Chapter 13 bankruptcy involves a repayment plan which can [...]

2019-10-22T12:57:10+00:00

What are the Filing Requirements in a Chapter 13 Bankruptcy?

Call: 888-297-6203 Any individual, sole proprietor, a self-employed or an unincorporated business owner can file for chapter 13 bankruptcy if they are struggling to pay off a huge amount of debt. Unfortunately, corporations and partnerships do not have the luxury to opt for this option. Unlike chapter 7, chapter 13 has debt limits for qualifying under this bankruptcy chapter. This limit is tied to consumer price index say Los Angeles based bankruptcy law firm Recovery Law Group lawyers. Currently, individuals having an unsecured debt of up to $360,475 and secured debt up to $1,081,400 are eligible to file [...]

2019-10-18T12:29:15+00:00

Can Chapter 13 Bankruptcy Affect Your Tax Returns?

Call: 888-297-6203 Despite bankruptcy getting rid of the majority of your debts, you are still required to file a federal tax return with IRS. With chapter 13 bankruptcy, individuals and small business owners can repay their creditors through a repayment plan. However, before filing for bankruptcy, all tax returns for the past 4 years must have been filed before the 341 meetings. Additionally, all current and applicable local, state and federal taxes due either during or after bankruptcy should also be filed. If you fail to pay current taxes or file tax returns, Dallas based bankruptcy law firm [...]

2019-10-18T08:15:31+00:00

Chapter 13 Bankruptcy: Pros and Cons

Call: 888-297-6203 People who are struggling with huge amounts of debts often choose bankruptcy to get rid of them. Chapter 7 bankruptcy is preferred as most of the times you get away without losing any property and all your debts are discharged. However, those who fail to qualify for chapter 7 file for chapter 13 bankruptcy. in this chapter, Dallas based bankruptcy law firm Recovery Law Group lawyers say, debt reorganization takes place and you pay your creditors through a repayment plan. There are pros and cons associated with this chapter of bankruptcy. Benefits of Chapter 13 Bankruptcy [...]

2019-10-18T08:12:08+00:00

Can an Increase in Mortgage Payments Cause a Reduction in Chapter 13 Bankruptcy Payments?

Call: 888-297-6203 Suppose, you have a five-year repayment plan under Chapter 13 bankruptcy which you’re unable to keep up to due to lack of money. In order to make up for the shortage, you’ve not been paying your property taxes. Your mortgage company agrees to make changes to your loan, but that will shot up your house payment. Do you think your bankruptcy trustee will decrease your Chapter 13 monthly plan payment by the amount equal to the increase in your mortgage payment? The answer is no, unless under exceptional circumstances. When you apply for Chapter 13 bankruptcy, [...]

2019-10-11T12:18:42+00:00

Is It Sensible to File for Chapter 13 Bankruptcy to Save Oneself from an Eviction?

Call: 888-297-6203 Imagine, you have not paid the rent to your landlord since past few months, and now your landlord wants to evict you from his property. When the landlord handed you the eviction notice, you offered to pay the late rent (you just got it from a friend who owed it to you), but he asked you to pay an extra $900 to cover the lawyer’s fee, too. According to you, the lawyer didn’t do any work, so you refused to pay that extra amount. Now, in order to stop the landlord from going ahead with the [...]

2019-10-11T12:17:49+00:00

Can Chapter 13 Bankruptcy be Bad for You?

Call: 888-297-6203 Despite what you have read or heard, bankruptcy might not always be the best way to get rid of debts, say, lawyers of Dallas based bankruptcy law firm https://www.recoverylawgroup.com/. Though there are numerous instances when Chapter 13 bankruptcy plan has worked for the greater good of the debtor, there are some instances when filing for Chapter 13 bankruptcy might not be the best move. For instance, a client who is already five years into debt consolidation pays $400 per month with a remaining balance of $3,500. His home is worth $300,000 while he owes $325,000 on [...]

2019-10-11T12:16:53+00:00

Is Social Security Excluded from Disposable Income in Chapter 13 Bankruptcy?

Call: 888-297-6203 According to the ruling of the Fourth Circuit, people who file for Chapter 13 bankruptcy do not need to include social security as part of their disposable income. This is a huge relief say lawyers of Dallas based bankruptcy law firm Recovery Law Group as the social security income can be saved and you might have surplus income after paying expenses and all planned payments as part of the repayment plan. Most states are undecided with respect to the inclusion of social security in your disposable income during a Chapter 13 bankruptcy. Despite bankruptcy code stating [...]

2019-10-11T11:33:02+00:00
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