Chapter 13 Bankruptcy

In contrast to the relatively quick chapter 7 process, chapter 13 bankruptcy is a reorganization of a consumer’s finances that allows them to pay back something to creditors over a 3-5 year period. Consumers who earn income that is less than the state average, for a family of their size, enter into a payment plan that lasts for 3 years. Consumers with income that exceeds the state average, for a family of their size, enter into a payment plan that lasts for a period of 5 years. With the help of a bankruptcy attorney, chapter 13 filers create a payment plan that allocates their disposable income to make a monthly, consolidated payment to creditors. We’re sure the reader would like to know: what constitutes disposable income? For purposes of bankruptcy, disposable income means what you have left over after subtracting allowed expenses from your gross earnings. some expenses will be determined by your actual out-of-pocket costs, others will be set by national local standards as calculated by the IRS. The less disposable income you have, the lower the percentage of unsecured debts you pay back to creditors throughout the life of your chapter 13 plan. At the end of the process, debts that remain outstanding are discharged. Below, we have organized a large library of articles that been written by attorneys on the subject of chapter 13 bankruptcy. Feel free to browse the information and, if you don’t see what you’re looking for, please submit a question to the QA forum.

Household Debt Bankruptcy Trends 2017

Household Debt Near Great Recession Level: What Does it Mean?

Although bankruptcy filings have been trending downward for years, household debt is expected to hit a new record in 2017. It may seem like a big number, but fewer than 800,000 people filed for bankruptcy in the U.S. last year. Just six years ago, that amount was double. Will household debt start to catch up […]

How bankruptcy and debt solutions impact your credit score

When you’re in debt and trying to decide what action to take, you may be concerned about how to protect your credit score. That’s often one of the last barriers to deciding to file for bankruptcy – so how much does bankruptcy affect your score? The answer may surprise you. Bankruptcy certainly does have an […]

Can I pay back family before bankruptcy?

In times of difficulty, we naturally turn to family and friends for help. The same holds when those difficulties are financial. Family and friends know you and understand your troubles; they’ll be willing to lend you a hand even when banks won’t. They trust you regardless of your credit score. If you borrow from people […]

Cash Gift Chapter 13

Gift or Loan, and Why Does It Matter for Bankruptcy?

Last updated May 31, 2017. When you’re struggling with debt, it’s natural to turn to friends and family for help. They know you and they trust you, making it simpler and easier to seek financial aid from them than from a bank. If your financial difficulties continue and you decide to file for bankruptcy protection, […]

Judgment Proof Bankruptcy

Are You Judgment Proof?

Last updated June 28, 2017. We all know why people are filing for bankruptcy. With a tepid recovery, jobs are hard to find, home values are still low, and fear and uncertainty are preventing business owners from expanding their businesses. The costs of health care are rising even with the Affordable Care Act in play. […]

How Often Can You File Bankruptcy

How Often Can You File for Bankruptcy and Receive a Discharge?

Last updated Sept. 19, 2017. While you can file bankruptcy as many times as you like, you can only receive a discharge every so often. Wiping away debts and getting a fresh start through the bankruptcy discharge is the primary goal of most debtors. The question then is not really “how often can you file […]

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Why Chapter 13 Bankruptcy Has Your Second Mortgage Lender Feeling “Undersecured”

Americans Owe More Than Their Homes are Worth Even though the worst days of the housing crisis are behind us, many Americans owe more on their mortgages than their homes are worth. Some are severely underwater. With banks generally unwilling to offer lasting mortgage modifications, many consumers feel out of options when dealing with a […]