by Mike Wallace | Jul 29, 2016 | Existing Clients
CHAPTER 13 PAYMENTS FOR THOSE PERSONS WHO ARE NOT EMPLOYED CAN BE SET UP TO COME OUT OF THE DEBTOR’S BANK ACCOUNT
The Chapter 13 Trustee for the Eastern District of Texas uses TFSbillpay to allow for monthly payments to be deducted from a bank account. For those persons on a fixed income the payment can be set for a date that falls after the day on which deposited funds have hit the bank account.
Click on this link to go to the TFS website. Instructions on setting up the automatic debit can be found on the TFS website.
by Mike Wallace | Jul 28, 2016 | Chapter 13, Student Loans
USING CHAPTER 13 BANKRUPTCY TO REORGANIZE PAYMENTS ON STUDENT LOANS
Under the United States Bankruptcy Code Section 523(a)(8), student loans are generally non-dischargeable in a bankruptcy. Since there is no dischargeability it is important to find a method to deal with the servicing of the debt.
Chapter 13 bankruptcy can be a good vehicle for managing payments on student loan debt, because the Debtor is only paying the debt according to their available disposable income while they are in the bankruptcy. I have even had clients who have filed a Chapter 13 because of student loan debt and upon completion of the plan, have refiled Chapter 13 because their disposable income still did not allow to pay the normal scheduled payment.
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law, can be very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.
by Mike Wallace | Mar 24, 2016 | Real Estate
RealtyTrac® http://www.realtytrac.com released housing data on this date indicating that 9% of housing markets are less affordable in Quarter 1 of 2016 as compared to historic normal levels.
The data from RealtyTrac® indicates that median home prices as compared to average wage data have increased in 9% of the 456 counties analyzed, as compared to 2% of the counties in Quarter 1 of 2015. Details of the historic norms over an extended period of time can be found at http://www.realtytrac.com/news/home-prices-and-sales/q1-2016-realtytrac-home-affordability-index/. In the 1st Quarter of 2016 the average wage earner will need 30.2 percent of their monthly wages to make monthly mortgage payments. This compares to 26.4 percent of monthly wages needed for monthly mortgage payments in the 1st Quarter of 2015.
The concern with the rise of home affordability for the average family is that more families will potentially be put in a greater threat for financial distress. Fortunately, home affordability is still well below what was seen in the peak of the housing bubble in 2006.
by Mike Wallace | Feb 17, 2016 | Chapter 13
Debtors do not surrender any property they might own in a Chapter 13 bankruptcy filing. The Debtors remain in possession of the property.
To the extent the Debtors in a Chapter 13 bankruptcy own property that cannot be exempted under the Bankruptcy Code or Texas law, then their obligation is to pay to the Chapter Trustee during the commitment period an amount of money that equals the value of the non-exempt property. For illustration purposes lets say that the Debtors own a boat valued at $5,000.00 and there is no ability to exempt the boat in the Chapter 13. In this scenario the Debtors are required to pay to the Trustee the amount of $5000.00 over the course of the Chapter 13. This $5,000.00 must be paid to the unsecured creditors, so payments to the unsecured creditors in the proposed Chapter 13 Plan must equal or exceed the value of the non-exempt property.
What happens in a Chapter 7 bankruptcy filing to non-exempt property?
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law, can be very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.
by Mike Wallace | May 22, 2015 | Bankruptcy
What Happens When a Bankruptcy Case is Filed in East Texas?
When a bankruptcy case is filed in East Texas an estate is created that consists of the property that is defined in Section 541 of Title 11 of the United States Bankruptcy Code.
Of course the personal property of the estate in a bankruptcy would consist of any property that the Debtor has a legal or equitable interest in at the time the bankruptcy case is filed.
In addition, the estate consists of certain types of property that the Debtor acquires or becomes entitled to acquire within 180 days after the filing of the case.
180-Day Property
Section 541(a)(5)(A) provides that three different types of property can become part of the bankruptcy estate:
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Property acquired by bequest, devise, or inheritance;
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Property acquired as a result of a property settlement agreement with the Debtor’s spouse or a Decree of Divorce; or
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Property acquired as a beneficiary of a life insurance policy or of a death benefit plan.
INHERITED PROPERTY AND YOUR BANKRUPTCY
Debtors have to be aware that an inheritance of property within the 180-day period of filing a bankruptcy can have dramatic consequences. Also, the receipt or right to receive life insurance proceeds can have the same consequence.
Property in a Chapter 13 bankruptcy filing is never surrendered to the Trustee. To the extent there is property that is not exempt under the bankruptcy law, then the Debtors are required to pay a dividend to the Chapter 13 Trustee that equals the value of the non-exempt property.
As always, any opinions expressed on this website are just that, opinions. So if you have a question regarding bankruptcy or debt relief, then please give me a call to discuss your individual situation. Bankruptcy, as many other areas of the law, can be very case or fact specific. I pride myself on giving you the answers to your questions that are based on your individual circumstances.
