Tag Archives: Chapter13

How Many Chapter 13 Bankruptcy Filings Are Successful?

Chapter 13 bankruptcy is known by several monikers. Some call it “individual debt restructuring” while others call it the “wage-earner plan”. It doesn’t matter what you call it—Chapter 13 enables debtors to work with their creditors to come up with a plan to repay their debts over three to five years. Now, as 2018 draws to a close, we are finally able to look back and see how effective these plans have been for those who filed in 2012. How Effective Are Chapter 13 Bankruptcy Filings? Over the years, critics have called the effectiveness of Chapter 13 bankruptcy into question. Critics have quoted statistics that claim nearly 65 percent of cases fail before debtors can finish their repayment plans. However, the latest numbers from the National Association of Chapter 13 Trustees (NACTT) show otherwise. According to the NACTT, the national completion rate for Chapter 13 filings was 59 percent in…
Read More »

Posted in Bankruptcy | Tagged , | Leave a comment

The Consequences of Waiting to File for Bankruptcy

Are you receiving frightening phone calls and letters from collection agencies? Are your wages being garnished? Have creditors threatened to seize your property? If this sounds familiar, then you should strongly consider reaching out to a bankruptcy attorney for help. Even though our phone consultations are free, bankruptcy’s stigma makes people avoid reaching out to ask questions about their financial options.  There are lots of rumors about bankruptcy too, and so many people misunderstand what happens to their credit, finances and personal opportunities if they file. But bankruptcy is a way to protect credit, improve financial standing, and open doors of opportunity that are squeezing shut.  We’ll be honest with you if bankruptcy is going to help you protect your financial future and assets, or if it isn’t. Loss of property and assets Creditors could attempt to seize your assets if you have fallen behind on payments. For instance, creditors…
Read More »

Posted in Bankruptcy | Tagged , , | Leave a comment

3 Things That Happen to Your Tax Returns During a Chapter 13 Bankruptcy

This is syndicated content that was originally published on AVVO.com by Attorney Christopher J. Cusack of Sader Law Firm. A common question people have when filing for Chapter 13 bankruptcy is: “What’s going to happen to my tax return?” The answer hinges on a few variables, which determine whether the refund must be turned over to the Chapter 13 Plan, kept for personal use, or divided between the two. Refunds Turned Over to the Plan There are instances where tax refunds are turned over to the Chapter 13 Plan. The one a debtor is almost guaranteed to encounter has to do with the tax return being a pre-petition asset. When you file your Chapter 13 bankruptcy, your attorney files the Petition for Relief. The filing of the petition creates a symbolic division between the assets, liabilities and earnings that accrued before filing from those that accrue afterwards. When you file for…
Read More »

Posted in Bankruptcy | Tagged , | Leave a comment