Filing for Bankruptcy In Dallas
- Author David Van Houser
- Published September 30, 2010
- Word count 498
As a bankruptcy attorney in Dallas I have consulted hundreds of homeowners trying to stop foreclosure after being denied a loan modification. While these homeowners followed their lenders directions to the tee in an effort to avoid foreclosure, they ended up with a foreclosure sale date hanging over their head. The unfortunate thing is they trusted their lender to act in their best interest and now may lose their home to foreclosure.
Can I Still benefit from a Chapter 13 Bankruptcy if I make too Much Money to File a Chapter 7?
Even if a debtor is disqualified from filing a Dallas Bankruptcy based on income there are still significant benefits which can be achieved by filing a Chapter 13. In fact, being disqualified from a Chapter 7 may not turn out to be a disadvantage at all if the filer has a significant equity value in assets beyond a home and an automobile. While a filer’s home and a vehicle can generally be retained under both types of bankruptcy filings as long as their equity doesn’t exceed bankruptcy code limitations, a Chapter 13 filing will provide advantages in areas of asset valuations and assets which are considered to be non-exempt in a Chapter 7 Bankruptcy. Antique collections, second homes, and rental properties can be retained in a Chapter 13 but would have to be surrendered to the court in a Chapter 7, for example.
These advantages are maximized in a Chapter 13 Bankruptcy when there are extensive assets with attached equity over and above the valuation caps placed on assets in a Chapter 7 filing. The flexibility of these asset valuations is then combined with a repayment plan set by the court for debts listed in the filing. Additionally, the repayment of court-reduced debts under Chapter 13 reorganization carries certain advantages over the discharge of debt commonly seen in Chapter 7 Bankruptcies. The main advantage here is that a Chapter 13 Bankruptcy typically shows on credit reports for around seven years as opposed to the ten year duration for a Chapter 7. This allows for an earlier start and a faster rebuilding process for a filer’s credit score.
A Chapter 13 filing can also allow for the "cram-down" of auto loans which can result in much lower payments and a reduction of the outstanding balance on the way toward paying off the vehicle in full. A cram-down requires that the vehicle must have been purchased at least 910 days prior to the filing of the Chapter 13 bankruptcy. In a cram-down, the loan balance is reset to the vehicle’s current market value. The remaining payment period can also be extended, lowering payments and saving thousands of dollars for the filer.
There are other benefits of Chapter 13 Bankruptcies as well including the stopping of foreclosure proceedings and the discharge of subordinated mortgages which have become unsecured due to a decrease in the value of the associated property. A Chapter 13 bankruptcy is usually far more complicated than a Chapter 7. To ensure the best results, insist on working with an experienced bankruptcy attorney.
David Van Houser is an expert Bankruptcy legal adviser. If you are looking for a Dallas Bankruptcy Attorney, please visit bankruptcy-home.com
Article source: https://articlebiz.comRate article
Article comments
Related articles
- UK Workplace Locker Laws 2025
- Pedestrian Accidents: Know Your Legal Rights from a Brownsville Personal Injury Lawyer
- Choosing the Best Greenville Injury Attorney for Workplace Injuries
- Choosing the Best Greenville Injury Attorney for Workplace Injuries
- International Shipping Made Simple with DTDC International Courier
- Choosing the Right International Shipping Services and Understanding International Shipping Rates
- Send Parcels Worldwide with a Trusted International Courier Service in Delhi
- Navigating Family Law with a Divorce Lawyer in Austin
- My employer has presented me with a Settlement Agreement. What do I do now?
- Behind Every Successful Deal: The Lawyer’s Role in M&A Strategy
- Why You Need a Personal Injury Attorney in Seattle After an Accident
- Why You Need a Local Irvine Personal Injury Lawyer After an Accident
- Why Local Expertise Matters: Benefits of Hiring an Indiana Car Accident Lawyer
- Why Foreclosure Defense Matters
- How Personal Injury Lawyers in North Charleston Handle Insurance Companies
- From Your Home to Anywhere – Reliable Global Shipping Solutions
- Temporary WiFi and Data Analytics in Events
- How an Okatie Car Accident Lawyer Can Help with a Hit-and-Run Case
- Content Analysis: Uncovering the Hidden Meaning
- criminal defense attorney irvine
- 7 Mistakes to Avoid When Hiring a Personal Injury Lawyer in Clearfield
- 10 Signs You Need a Personal Injury Lawyer in Rockford
- Why You Should Hire a Personal Injury Lawyer in Tampa After an Accident
- Canada’s Regions Blocking Low-Wage LMIAs
- How the IRS Is Changing and Why You Need a Tax Attorney Now More Than Ever
- When to Call a Car Accident Lawyer in San Antonio After a Wreck
- What to Expect During Your First Consultation With a New Haven Personal Injury Lawyer
- How a Waterbury Auto Accident Lawyer Can Maximize Your Settlement
- Contracts That Win: Why Legal Precision Is Key to Business Success
- How the IRS Is Cracking Down on Tax Debt (And What You Can Do About It)