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Archive for the ‘Chapter 13 repayment plan’ tag

Lowering Payments on a Chapter 13 Repayment Plan

January 31st, 2020 at 10:56 am

chapter 13 bankruptcy attorney, TX chapter 13 lawyerFor many people, filing for bankruptcy is a fresh start in life. If you have filed for a Chapter 13 bankruptcy, you are still technically paying off your debts, just in a manner that is more manageable for you. A Chapter 13 bankruptcy consolidates all of your debt and creates a repayment plan that lasts for three to five years, depending on your situation. Your monthly payment amount is more than just taking the amount of debt to be repaid and dividing by the number of months you are required to pay. The amount that you are ordered to pay each month is the result of a formula that takes into account your income, assets, debts, and expenses. For some people, this number is a manageable payment. For others, it can be a burden or become one because of a variety of situations.

Qualifying for a Modification

Not everyone can qualify to get their Chapter 13 repayment plan modified. The courts will not entertain a request to modify your plan just because — you have to have a legitimate reason/need for the modification. The most common reason modifications are granted to Chapter 13 repayment plans is because of changed circumstances. These circumstances must be significant enough to severely limit your ability to meet the terms of your current repayment plan. Examples of a significant change in circumstances include:

  • A loss of income
  • A decrease in income
  • An increase in expenses
  • Medical issues
  • Unexpected emergencies

Modification Process

If you want to try to get your Chapter 13 payments lowered, you should first get in touch with your bankruptcy attorney as soon as possible. Your attorney can help you fill out the appropriate forms and guide you throughout the process. Your attorney will prepare a motion to modify after confirmation and file it with the court. The court will then review the motion and schedule a hearing that you must attend. At the hearing, you will present your reasons why you need to modify the terms of your repayment plan and return a verdict.

Contact a San Antonio, TX Chapter 13 Bankruptcy Modification Attorney Today

At the Law Offices of Chance M. McGhee, we can help you throughout your bankruptcy process, from start to finish. We understand how beneficial a bankruptcy can be for many people and how it can provide you with a fresh start to life. Our skilled Kerrville, TX Chapter 13 bankruptcy lawyers can help you modify your bankruptcy terms if need be. The bankruptcy process can be confusing and you do not have to go it alone — call our office today at 210-342-3400 to schedule a free consultation.

 

Source:

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics

 

Can You Incur More Debt During a Chapter 13 Repayment Plan?

December 27th, 2019 at 12:38 am

debtIf you have gotten a bankruptcy, the one thing you do not want to do is to incur more debt; being unable to pay your debt is the reason you filed for bankruptcy, right? Chapter 13 bankruptcy repayment plans usually last anywhere from three to five years, meaning you must be financially responsible during that time period or you could risk having your case dismissed and being responsible for repaying your debts in full. While it is a good rule of thumb to avoid taking on any further debts during a Chapter 13 bankruptcy, sometimes taking on more debt is unavoidable and is a necessity. Incurring new debt during your Chapter 13 repayment period is possible, but there is a certain way you must go about it.

Reasons for Incurring New Debt

Sometimes, life can be unpredictable. Even though you were probably not planning on taking on any new debts during your Chapter 13 repayment period, things can happen and can put you in a situation where there is no other option. Generally, incurring new debt during a Chapter 13 repayment period is frowned upon and is only permitted when the debt is for something that is considered a necessity. Common reasons for incurring debt during a repayment plan include:

  • Refinancing a mortgage on your current home
  • Purchasing a new home or a new vehicle
  • Financing equipment needed for necessities, such as a new water heater or furnace

Filing a Motion to Incur Debt

Before you take on any new debt, you must speak with your bankruptcy trustee about filing a motion to incur debt. If you were to take on new debt without notifying the court or your trustee, you could risk having your bankruptcy case dismissed, leaving you in an arguably worse financial situation than before. To file a motion to incur debt with the court, you will need to provide the following information:

  • Proof of income for at least the past 60 days
  • An updated list of your monthly expenses
  • Information about the loan and the financing company, including how much the loan is for, the interest rate of the loan, the length of the repayment period and how much the estimated monthly payment would be

The court will examine your motion and make a determination on whether or not the debt is necessary, whether or not you will be financially able to make the monthly payments and whether or not the new debt will interfere with your ongoing bankruptcy repayment plan.

Contact a San Antonio, TX Chapter 13 Bankruptcy Attorney For Assistance

Making the decision to file for bankruptcy can be a difficult one, but it can ultimately end up being the best financial decision you make for yourself. If you are currently in a Chapter 13 repayment plan, you likely know that there are limitations to what you can do with your money. If you need to incur debt during your repayment period, you need help from a Schertz, TX Chapter 13 bankruptcy lawyer. At the Law Offices of Chance M. McGhee, we can help you correctly file a motion with the bankruptcy court to allow you to take on more debt during your repayment period. Call our office today at 210-342-3400 to schedule a free consultation.

 

Sources:

https://www.carsdirect.com/auto-loans/what-s-an-authorization-to-incur-debt-with-a-chapter-13

https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-13-bankruptcy-basics

 

What Do I Need to File for Bankruptcy?

April 29th, 2014 at 7:00 am

bankruptcy file preparation, bankruptcy in Texas, bankruptcy petition, Chapter 13 repayment plan, credit counseling course, file for bankruptcy, prepare for bankruptcy, San Antonio bankruptcy lawyer, Texas bankruptcy attorney, types of bankruptcyThe best way to prepare for bankruptcy filing is to work with an experienced attorney, as there are strict rules and guidelines for filing bankruptcy in Texas. And knowing what to expect in advance can make the process easier for you.

Failing to file for bankruptcy properly could result in your case being dismissed entirely, so it is worth your time to review filing requirements ahead of time. Bear in mind that you will need to complete a credit counseling course before you can file, so you might want to plan several months in advance.

The first part of your bankruptcy file is your petition. You will also need to submit schedules, a statement of your financial affairs, a debtor statement of intention, a statement of your current monthly income, and a list of up to 20 unsecured creditors. These documents all should be submitted with your bankruptcy petition. Additional documentation to be submitted includes a pro se questionnaire if representing yourself, proof of credit counseling completion, a creditor matrix verification, and a Chapter 13 repayment plan if applicable.

It may help to gather all of the necessary materials in advance to discuss with your bankruptcy attorney. Maintaining copies of your tax returns for the last few years is also important. You will want to review your credit report in advance to match it up with your own list of debts and to verify whether there are any mistakes on the report. The more knowledgeable you are about your affairs, the easier it will be to file your bankruptcy petition.

Prepare for bankruptcy by working directly with your attorney. Specific regulations will depend on the type of bankruptcy you are filing, but you can have most of your questions answered by your lawyer. If believe that filing is your best option, contact a Texas bankruptcy attorney today to discuss your bankruptcy file preparation.

Call today for a FREE Consultation

210-342-3400

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