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.

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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 […]

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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 […]

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Gift or loan, and why does it matter for bankruptcy?

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, what happens to the friends […]

Deed in who?

Are You Judgment Proof?

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. People are finding themselves saddled […]

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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 […]

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Does Texas Foreclosure Law Allow Deficiency Judgments?

Texas law allows lenders to pursue deficiency judgments after foreclosure A deficiency judgment arises when the proceeds from a foreclosure sale fail to satisfy the outstanding mortgage balance, and a lender wins a lawsuit seeking payment of the difference. See also: will I owe money after foreclosure? In Texas, lenders are permitted to sue for […]

How Exemption Laws Work Inside and Outside of Bankruptcy

Exemption laws protect your property from creditors Inside of bankruptcy, exemption laws shield certain items of property from the bankruptcy trustee. Outside of bankruptcy, exemption laws protect your property from judgment creditors. The first rule to remember is that not all of your stuff is exempt. Each state and even the federal government have laws […]