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 […]
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.
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 […]
Last updated March 31, 2017. Everyone preparing to file for bankruptcy wants to know the cost. After all, bankruptcy usually comes at a time when money is tight. Below, we’ll talk about filing fees, attorney fees, the cost of filing on your own versus filing with an attorney, and what your expected total bankruptcy cost […]
Converting to Chapter 13 Bankruptcy It is possible to switch from Chapter 7 to Chapter 13 bankruptcy after you’ve already filed? Yes, assuming you’re acting in good faith. For example, converting your case might make sense if you have fallen behind on mortgage payments, and risk losing your home to foreclosure. Chapter 7 bankruptcy is […]
Means Test: Does Chapter 7 Filer Have Ability to Fund Chapter 13 Plan? Back when the bankruptcy laws were changed in 2005, a hard calculation was implemented, based on household income and household size, to determine whether or not a bankruptcy filer was making a “decent” living, and should be disqualified from discharging debts completely […]
Advantages of Chapter 13 Bankruptcy Most people don’t want to file for bankruptcy at all, but if pressed, will choose Chapter 7 over Chapter 13 every time. After all, who wants to be in bankruptcy for 3-5 years? At first blush, it certainly sounds like a raw deal. Very often I will sit down with […]