Request a Free Consultation

Text 817-864-1624

Call 817-752-9033

Recent blog posts

The simple answer here is, no. If you are current on your car payments, the Chapter 13 typically has no effect on your car. You simply continue to make your car payments directly to your car lender. If you are behind on your car when you file bankruptcy, read below on how to keep your home in Chapter 13 Bankruptcy:

Chapter 13 Bankruptcy is a repayment and reorganization plan. The type of person who files a Chapter 13 Bankruptcy is someone who is behind on a house, car, IRS payments, etc. and wants to keep the collateral and repay the amounts that are past due.

In order to keep your vehicle through a Chapter 13 Bankruptcy you will need to be able to at minimum have sufficient income to repay the amount that is owed on the vehicle plus interest at the LIBOR rate plus 2%. Further, the Chapter 13 Trustee the person who collects and disburses your payments to creditors, charges a fee set by the Court of 10% of each one of your payments. This effectively makes the interest rate around 15% on the outstanding principal balance.


The court allows a Debtor in a Chapter 13 Bankruptcy to keep $2,000.00 of any tax refund with no questions asked. The Court and Trustee’s often allow a Debtor to retain even more than the Court provided $2,000.00 due to credits such as the Earned Income Credit and certain other tax credits and exemptions. Finally, if a Debtor has unexpected expenses, home repairs, vehicle repairs, medical bills, etc. that are outside of the constraints of what a normal budget can provide for the Court will often allow additional funds to be kept often times the full amount of the refund.

The Process for Tax Returns and Refunds in a Chapter 13 Bankruptcy:

1). Prepare and file your tax return with the IRS through the normal manner with which you file a return.


Behind on your car payment? You’re not alone. A record number of Americans are behind on their auto loan payments. This is a somewhat unsurprising fact, as lower income individuals are more frequently able to obtain financing on cars due to what seems to be an increase in predatory and sub prime lenders nationwide.

If you find yourself behind on car payments, and have your car repossessed, you will be on the hook for the “deficiency balance” which is the difference of the amount the car sells for at auction and the amount owed on the vehicle. For instance, if your 2010 Toyota Camry sells at auction for $4,000, but you owed $14,000.00 to the lender, the lender can sue you for the $10,000.00 deficiency balance, plus costs and attorney fees. This applies even if you voluntarily surrendered your vehicle.

For those who are already unable to make their car payment, a judgement of this amount is almost impossible to pay. The lender can take money out of your bank account to satisfy the judgement, which can put the debtor in a very dangerous position of being unable to pay rent or their mortgage.


Chapter 7 bankruptcy can provide an enormous amount of relief to debtors in exchange for minimal consequences. The huge upside, often combined with very little low side, can cause those seeking debt relief to question if Chapter 7 bankruptcy is fools gold. When providing consults to those in need of debt relief, I occasionally find feeling like a snake oil salesman when I hear the cynical cliché: “sounds too good to be true”.

The truth, though, in most cases is that it does sound too good to be true. In a majority of my cases, a debtor can get rid of all or most of their debts, better their credit score, and keep all of their assets. Negative consequences are typically limited to the bankruptcy showing up on their credit report for 10 years, and the inability to finance a home for two years after discharge.

Even the negative consequences are usually moot; who cares about the bankruptcy on their credit report if their score goes way up? If you already own a home, who cares if you can’t buy one for two years? And if you’re renting – chances are you wouldn’t qualify for a home loan anyways because of terrible credit. Further, Bankruptcy can actually put you on faster path towards home ownership because it cleans up your credit.


Bankruptcies resulting from unpaid medical bills affected an estimated 2 million people in the United States during 2013, but regardless of the cause of your growing debts, choosing the right bankruptcy law firm can help ensure that your case is navigated with efficiency and skill. But choosing the right lawyer won’t happen unless you can ask the right questions. With that in mind, here are just a few essential questions to ask your bankruptcy law firm if you want to find debt relief.

The two main types of consumer bankruptcies are Chapter 7 and Chapter 13 Bankruptcy. The amount you will be charged and the expected timeline for your case varies greatly between these two types of bankruptcies.

How will you be charged?

As is the case with any type of legal agreement or contract with a lawyer, you’ll want to know far in advance exactly how the attorney will charge you for their services. There are usually several different fees that go into determining your final price.


We get it — the word ‘bankruptcy’ can sound a little scary when you don’t know exactly what it means. But the fact is, declaring bankruptcy can actually give you peace of mind and financial relief under the right circumstances. Let’s debunk some of the most common myths about bankruptcy so that you can think clearly and focus on the facts:

MYTH: Declaring bankruptcy means you lose everything.

This is a common misconception about what declaring bankruptcy truly entails. In most cases, you can keep your material belongings, even your home and your car.

“The vast majority of Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. There are two reasons for this. First, you can carve out some basic assets, called exemptions, that are necessary for day-to-day life…And for your possessions that aren’t covered under exemptions? Well, the creditors likely don’t want them,” writes Sean Pyles on Nerdwallet.


Bankruptcies resulting from unpaid medical bills affected an estimated 2 million people in the United States during 2013, but people continue to file for bankruptcy every day for a wide variety of financial reasons. That being said, if you are considering filing for bankruptcy, hiring a qualified bankruptcy attorney is the most important step you can take to ensure success. Here’s what you should know about working with a low cost bankruptcy attorney.

Types of Bankruptcy

You may know that there are several types of bankruptcy, and the type you and your bankruptcy attorney decide is best will dictate your financial future and how your assets will be managed from that point forward. Chapter 7 is the most common type of bankruptcy.

Chapter 7 Bankruptcy

Back to Top