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  • Avoid Making These Mistakes During Bankruptcy Filing

    Avoid Making These Mistakes During Bankruptcy Filing

    A common man does not always think of preparing for the worst. Therefore, many people are often at their wit’s end when difficult financial situation plagues them. Though bankruptcy is the best option to get rid of unsurmountable debts, Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/ confirm people are often unaware of what they should or shouldn’t do when filing for bankruptcy. Having an adept bankruptcy attorney by your side can be an asset during tough financial times. Contact 888-297-6023and consult with the best legal minds to know what to do prior to a bankruptcy filing.

    It is very important to keep in mind to avoid doing the following if you are thinking of filing for bankruptcy:

    • Transferring assets (money or property)

    If you are thinking of filing for bankruptcy, it is important that you do not transfer any money or property to relative or friend. Anything and everything you own becomes a part of your bankruptcy estate. The trustee assigned to your case goes through all the documents with a fine comb. Such transfers of assets are considered means of hiding so that the property could not be included in your bankruptcy estate; especially if you give it for free, or at less than the fair market rate, or within a stipulated time frame. If the court feels that you have been hiding assets, it will get them back when you file for bankruptcy. You can make use of various federal and state exemptions to protect your property instead of opting for transferring it.

    • Being selective while paying creditors

    Having a proper payment schedule prior to a bankruptcy filing is important. if the court finds evidence that you have made payments to some creditors while ignoring others, your chances of the bankruptcy case are ruined. Moreover, you could be facing lawsuits from other creditors. Bankruptcy trustee also has the right to sue those creditors who seem to have benefited from preferential payments. All of this can add to your financial woes.

    • Unaware of your income sources

    It is important to have a record of all your income as this forms an integral part of your bankruptcy filing Dallas. Your business and personal account should be separate for clarity of income and expenditure. If you are aware of your income sources and can provide proof supporting your statements, you won’t have much issue during bankruptcy.


      *Are you more than 60 days past due on your mortgage?

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?

      Can the Chapter 13 Bankruptcy Plan be Extended Beyond Five Years?

      People going through a bad financial phase often opt for bankruptcy to get rid of their debts. Individuals can either opt to liquidate their non-exempt property to pay their creditors under Chapter 7 bankruptcy or choose to repay their loans over a period of 3-5 years in Chapter 13 bankruptcy. However, if some claims persist even after the repayment plan is over, does the individual have the option of extending the repayment plan? According to Dallas based bankruptcy law firm Recovery Law Group, such a provision is not possible. However, expert bankruptcy lawyers at 888-297-6023 inform that you can always find a way around to get things done.

      Chapter 13 bankruptcy involves a repayment plan which is devised based on your disposable income. However, some debts might survive despite the repayment plan. Unless these dues are cleared, you cannot get your bankruptcy discharge. In case of such a situation, the bankruptcy trustee might file a motion to dismiss your bankruptcy case. If your repayment plan is over and you lack the additional money to pay, your case might be dismissed which will result in your unpaid interest on credit cards due. Fresh out of bankruptcy and with a huge amount of debts, you will not be able to file for respite also. It is therefore important to look for alternative solutions.

      Dismissal of a bankruptcy case will allow your unsecured creditors to stake claim to their dues. Since Chapter 13 bankruptcy repayment plan cannot be extended beyond 60 months, and dismissal of the case by the trustee is something you cannot afford, you need to file an opposition to the bankruptcy trustee’s motion of dismissing your case. Your bankruptcy attorney can ask the court for additional time to pay the remaining money.

      If the court agrees to continue a hearing on this matter you get time to pay your debts. Your lawyer can also ask the bankruptcy trustee to agree for continuing the hearing. This will provide you extra time to clear the debts. Though officially you cannot modify or extend your repayment plan, no law prevents a trustee from accepting voluntary payments with respect to your debts beyond your repayment plan. In case the trustee does not agree, the proposal can be presented to a judge who might agree if your Chapter 13 repayment record is excellent.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • The 10th Circuit rules

        The 10th Circuit rules

        The 10th circuit court rules reprimand that the tax debt may not be exempted for the client under Chapter 7 if the income tax return is filed late. Income tax return debt can be discharged under chapter 7. However, it needs to fall under certain criteria. The income tax returns are a mandatory procedure that citizens of the USA need to follow every year. Tax debts can be huge, and the clients may seek discharge. You can visit Recovery Law Group for good advice.

        The income tax return debt can be discharged under Chapter 7 when-

        1. The tax debt is income-based for either State or Federal.
        2. The income tax return was last filed 3 years before applying for bankruptcy.
        3. The debtor filed the last return 2 years before applying for bankruptcy. This is under discussion in the 10th circuit rules. Whether to consider 2 years as late for filing a tax return to avail discharge in a bankruptcy case filed under chapter 7 bankruptcy.
        4. The income tax department must have evaluated the client’s tax returns 240 days before filing for bankruptcy.
        5. The debtor must be true and not dodging the tax laws by not filing at all or filing a fraud or dupe return.

        What does file of late tax return mean under the 10th circuit rules?

        When the client files his tax return 2 years before applying for bankruptcy it is considered as a late return. However, this point is still debatable and is under modification stage. A tax return is considered a late return when the IRS files a substitute return when all the debtors’ filing dates are expired. Apparently, a tax return may not be considered late if the IRS files the substitute tax return with acknowledgment of the debtor.

        The 10th circuit court rule may not consider the tax return ‘late’ payable 2 years prior the filing of bankruptcy if a substitute returns is filed with acknowledgment under Internal Revenue Code Section 6020(a). The client’s tax debt can be exempted as per the 10th circuit rule if the client is within this parameter.

        The final verdict

        Since, it’s still debatable, the case may go to the US Supreme court for the further outcome. However, for now, it is established that the tax return is late if the IRS files a substitute tax return within 2 years of applying for bankruptcy. Subsequently, the client will not acquire discharge on tax debts, even under chapter 7. You can receive more information by calling on-(888-297-6203).


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

          Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

          When a person applies for bankruptcy under chapter 7, in Los Angeles, most debts are cleared. The debtor is no longer obliged to the creditors. However, a debtor can keep a loan agreement if he/she wills to save that particular property. Usually, all the property and valuables are sold to clear the debt under chapter 7. If the debtor wants to retain any property, be it their house or car; they can continue to follow the loan agreement towards that house to the creditor. For more advice do log in to Recovery Law Group.

          Reaffirmation

          The process of retaining the mortgage is called reaffirmation. When a debtor reaffirms a debt, he/she affirms to owe the debt after the bankruptcy case ends. The debtor is under the same contract with the creditor and continues to pay the same installments against the mortgage. The loan agreement between the debtor and creditor will behave in the same manner and will not be likely affected by the bankruptcy case.

          The creditor can seize the property if the debtor fails to repay the loan if he/she reaffirms a loan agreement. On the contrary, the creditor can have no effect whatsoever on the debtor if he/she does not reaffirm a mortgage. Hence, it’s advisable not to reaffirm a mortgagee, whilst filing a bankruptcy case under chapter 7.

          Can a debtor Refinance a loan that is not reaffirmed?

          Not reaffirming the mortgage and still upholding the discharged loan, the debtor cannot ask the creditor to refinance his mortgage. Once the debt is discharged, the creditor has no say in the mortgage process. The creditor has to be contented with little or no pay directed by the court. So, if the debtor asks for refinancing a discharged loan to the creditor, it violates the bankruptcy rule. The debtor cannot ask the same creditor for refinancing but can request other lenders to refinance his mortgage.

          Is reaffirmation a viable option to secure a property under debt?

          A reaffirmation agreement in Chapter 7 bankruptcy law must be approved either by the bankruptcy judge or by the bankruptcy lawyer. However, both the bankruptcy judge and lawyer sways clear off reaffirmation, stating that it may put unreasonable implications on the client. A client can retain his/her house without the reaffirmation agreement.

          • Bankruptcy court certification

          The bankruptcy judges do not advocate loan agreement reaffirmations. The court allows the debtor to keep the mortgage, so long as he/she follows the timely schedule of paying to the creditor. It argues reaffirmation as unnecessary. The only likely benefit of reaffirming a loan agreement is a healthy credit score. And the court feels it unnecessary to burden the debtor with reaffirmation for a mere healthy credit score.

          • Bankruptcy lawyer’s certification

          The bankruptcy lawyers also do not advocate reaffirmation. Since they feel that the court does not support reaffirmation, if they advocate for it, they may be obligated to the process of the loan agreement. They do not want to take the responsibility of their client in reaffirming a mortgage. If they sign the reaffirmation agreement, they may be liable, if the client defaults, causing unnecessary complications.

          Loan agreements or mortgages are not necessarily reaffirmed in bankruptcy under chapter 7. The debtor can refinance the loan agreement discharged in bankruptcy by other financiers, without reaffirmation. For more information call on (888-297-6203)


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Status of Pets in Chapter 7 Bankruptcy

            Status of Pets in Chapter 7 Bankruptcy

            People in Los Angeles love to keep pets like horses and dogs. When they need to file bankruptcy, the fear of losing them in the procedure is quite high. Most of them shy off from applying for chapter 7 bankruptcy since they do not want to lose their pets. They love their pets and treat them like family members. However, the court needs to investigate many things before allowing pets to be exempted. Applicants looking for some valuable advice to keep their pets must visit- Recovery Law Group.

            How can an applicant exempt their pets in a bankruptcy case?
            When a person applies for chapter 7 their entire property is evaluated, which also includes high maintenance pets like horses and dogs. The aim to evaluate the entire assets is to generate a decent amount to pay the creditors. If the pets can fetch good money the court will not shy from putting it in the non-exempted column. Chapter 7 allows the applicant to keep certain assets that will not be sold out. The assets that are exempted may differ from State to Federal system.

            Are pets exempted?
            Some states may allow the applicant to keep the pets. So, if the applicant belongs to those States, he can keep the pets. While other states may offer a wildcard exemption. A wildcard exemption is a gift card by the court that allows the applicant to keep any of their personal objects that may not value more than a certain figure. If the pets’ value falls within that figure the applicant can keep them. The applicant must study the State and Federal rules for exemption in Chapter 7 before applying for bankruptcy. This will give them a clear picture.

            Can the court exempt pets?
            The trustees appointed by the court can exempt the pets without employing wildcard. The trustee if finds, the pets cannot generate much value, it can exempt them. An ageing horse or dog that may not bring much monetary value can be exempted by the trustee. However, a good breed dog or horse that will generate good worth will not be exempted.

            Pet care
            Pets care can be an expensive affair. The applicant needs to fill many forms before filing Chapter 7 Bankruptcy case. The forms have details of the clients’ income, expenses, assets, debts, and the latest financial transactions. Schedule J is the form that shows details of the applicant’s expenses. If the trustee observes that the client is spending far too much on pet care, they can advise the court to dismiss the case. The trustee may feel that the money spent on pet care could have been otherwise used to pay the creditors.

            Day-day living expenses
            The applicant’s day-day living expenses are scrutinized in detail by the trustees. In no way, the applicant can enjoy a luxurious life and be a suitable candidate for Chapter 7 bankruptcy Los Angeles. The court needs to examine whether the case is not a fraud one. Hence, if the applicant’s daily expenses are minimal, despite expensive pet care, the trustee can grant an exemption on pets. Cutting their own cost by using an inexpensive car, abandoning middle-class luxury lifestyle can convince the trustee and allow immunity to pet like horses and dogs.
            Apparently, the court’s major objective is to allow the applicant to enjoy a decent life with their loved ones after the bankruptcy case. For more details on retaining the pets please call on- 888-297-6203.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

            • Thinking about converting Chapter 13 to Chapter 7 before the term ends?

              Thinking about converting Chapter 13 to Chapter 7 before the term ends?

              A recent court case has provided for good news for many Chapter 13 filers. There can be many scenarios wherein, Chapter 13 payment plan might just not go as planned. The filer might not be in exceptional hardship to get a ‘hardship wave off’ but certainly paying off dues as per the payment plan can become extremely challenging. Converting Chapter 13 bankruptcy to Chapter 7 is a great option for such bankruptcy filers. It was not really ‘on’ but after a recent Supreme Court hearing, it has become more realistic now. To learn more about some latest judgments and their impacts on your case, log on to https://bankruptcy.staging.recoverylawgroup.com/.

              What was the case?

              The historical case had Harris file for Chapter 13 bankruptcy. His approved payment plan had a $530 payment, which he provided for to the bankruptcy trustee every month. The bankruptcy trustee had to distribute those payments to two major lender categories. One chunk would go to the bank for mortgage arrears, while the second chunk would be distributed to other lenders based on the proportion of their liability. Mr. Harris was not able to keep up with the mortgage arrears and lost his home due to foreclosure. After this, Harris continued making $530 of plan payments but did not distribute the amount allocated to the mortgage arrears to other lenders.

              After a year or so, the funds accumulated to $5,500 which had not been distributed to other lenders. Mr. Harris decided to convert his bankruptcy into Chapter 7 and realized within a span of 10 days, the bankruptcy trustee had distributed $5,000 to the other lenders. Mr. Harris was unhappy with this and sued the bankruptcy trustee for his $5,500.

              Different courts had different opinions

              Some experts, as well as courts, thought that the funds held by the bankruptcy trustee belong on the lenders or the creditors once, Mr. Harris converted his case to a Chapter 7 bankruptcy. However, other courts and the Supreme Court judgment seem to believe that the undistributed funds in the hands of the bankruptcy trustee belong to the debtor. This was certainly a big relief for Mr. Harris and various other Chapter 13 to Chapter 7 converters.

              Some key pointers in Supreme Court’s inference

              Court highlighted a few points, which will be a base for many such future arguments or judgments. These can be listed as follows-

              • The court inferred that when a Chapter 13 case is converted to Chapter 7, the bankruptcy estate shall consist of income and assets owned by the filer when he/she originally filed Chapter This means any income generated after the filing debt and any asset built after the filing date, will not be included in the bankruptcy estate. All these belong to the filer.
              • The Chapter 13 bankruptcy trustee Los Angeles does not hold any right to distribute the $5,500 to the lenders as in the case of Mr. Harris.
              • In order to overcome this scenario, the bankruptcy trustee and the lenders should consider distributing income regularly and appropriately to minimize such controversial situations.

              If you are a lender or a bankruptcy filer, how does this ruling affect you and your bankruptcy or lending situation? Find out by dialing in +888-297-6203.


                *Are you more than 60 days past due on your mortgage?

                *Do you own a home?

                Are you currently working?

                By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

              • Status of Co-Owned Homes in Bankruptcy

                Status of Co-Owned Homes in Bankruptcy

                There is some shared inheritance by siblings who have equal rights on that property. While the land can be measured and equally divided, the inheritance of the house offers no such luck. It cannot be divided, albeit it can be sold, and the money can be equally shared. Some people are emotionally close to their inherited house and stay in them, while other siblings may move on. What happens when the other sibling files a chapter 7 bankruptcy case? For consultation do log in to Recovery Law Group.

                The property comes under scrutiny and needs to be sold to pay off the loans. What is there for the co-owner at this stage? There are few options that the co-owner can employ, that can save their right on the inherited home.

                1. The other owner can buy a shared part of the home and be the sole owner of the house. The money can be used by the trustee to clear the debts off.
                2. The trustee can sell the house and distribute an equal amount to the co-owner. The amount extracted from the applicant’s side can be used to settle the loans.
                3. If the co-owner wants to retain the house, then they can arrange for a loan to keep the house.

                Can the trustee sell a co-owned house?

                A trustee is a body appointed by the Los Angeles court to evaluate the applicant’s assets. If the applicant is not using the house it becomes all the more necessary for the trustee to put it on sale. Even if the applicant is living in the house, and the house is worth, the trustee may propose to sell. The trustee can take charge to sell the co-owned house because-

                • The house is not a land that can be equally divided. Selling half part of the house could fulfill no use for the buyer. Hence, the trustee needs to sell the co-owned house.
                • Selling a complete package, e. the whole house will bring more dollars, which the trustee can employ to wipe off the loan of the applicant.
                • The benefit that the applicant will get by selling the house outweighs the interest of the other owner. Hence the court is unlikely to address the co-owner’s
                • Since the house is generating no-other revenue, it practically has no value other than offering shelter; which could be alternated by a rented or another alternative.

                The applicant gets the benefit of exemption for some assets by the court. They can keep the assets they chose to retain. However unused and worthy properties are seldom exempted. For more tips call on 888-297-6203.


                  *Are you more than 60 days past due on your mortgage?

                  *Do you own a home?

                  Are you currently working?

                  By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                • The Bankruptcy Court and Social Media

                  The Bankruptcy Court and Social Media

                  Can the bankruptcy court interfere with social media space? Well, the answer is certainly yes but not if they are personal social media accounts but definitely if they are social media accounts used for business purposes. This question has popped up after a recent judgment by a Texas bankruptcy court. If any social media platform like Twitter, Instagram, Facebook, etc., are used for promoting business, they can be included in the bankruptcy estate. Not only that, but the bankruptcy court may also order the bankruptcy filer to submit the password of these social media accounts. The same level of authority is not applied for a personal social media account. However, if you are doing business promotions from your personal account and there is no separate business account, confusion begins here. Follow more such interesting and informational topics on Recovery Law Group.

                  What was the case?

                  In Texas, this interesting case happened wherein a firearm company owner decided to file for Chapter 11 bankruptcy. The owner, Jeremy Alcede had a gun shop. Under the reorganization scheme proposed under Chapter 11, a new boss was suggested to take over the business of the gun shop. The bankruptcy court of Texas ordered the former owner to turn over all the electronic assets of the Tactical Firearm including Twitter, Facebook and all other social media accounts with their passwords to the new owner. Jeremy, however, had other thoughts and refused to share social media account details and would have rather preferred imprisonment.

                  What was the argument?

                  The former owner put forward a strong argument saying, the account was personal, and he administrated over them and created them. His rants on then-president Obama and all advocates, who wanted to put down gun licensing and eradicate public selling of guns. He used the accounts for voicing the benefits of his shop and garnered a good amount of publicity through them. The court, on the other hand, argued that the social media accounts are directly involved in business promotion and had a business website linked on the bio of the site and hence, shall be regarded as a business account. Considering all these factors, it was determined that social media account directly influence the business of Tactical Firearms and hence, the password and the accounts need to be handed over to the new owners.

                  If you are in a similar situation and need assistance to determine if your business account or your personal account could be in danger or not, reach out to 888-297-6203 right now.


                    *Are you more than 60 days past due on your mortgage?

                    *Do you own a home?

                    Are you currently working?

                    By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                  • What Are the Possible Ways to Settle a Credit Card Judgment?

                    What Are the Possible Ways to Settle a Credit Card Judgment?

                    There are enough cases of credit card debts in Los Angeles. People have a surmounting amount to be paid as credit card loans. Most of these credit card loans are unsecured loans; which means the creditors cannot seize credit card owners’ assets if he/she fails to pay the loans. However, the creditor can take rescue and file a case against the debtor. Once he gets a judgment against the debtor, he can propel the debtor to respond in court and take steps to seize the debtor’s assets. For good advice on how to settle a credit card judgement, the debtor can connect to https://bankruptcy.staging.recoverylawgroup.com/

                    There are three possible ways to settle a credit card judgment-

                    1. Vacate the judgment

                    Vacate a judgment means filing a case in court against the creditor to dismiss the judgment. When a debtor files to vacate a judgment, the judgment stands null and void. For proposing to vacate a judgment the debtor will need a lawyer. A lawyer files a legal motion against the creditor to vacate the judgment. He can make the case strong by convincing the court that the client was not rightly served with the judgment.

                    The client can win the case and the judgment will be vacated. Apparently, the client is still liable to pay the creditors; because if the case stands true there is no way the client is excused. On top of that, the client will have to shell an extra sum as the lawyer’s fee. So, vacating the judgment may not be the best approach.

                    1. Settle the judgment

                    The client can seek a unanimous settlement with the creditor.  The creditor usually settles for a lesser amount than the actual loan amount to arrive at a settlement. The client must seek a written document to avoid future complications. The lawyer can help the client retrieve a written settlement document to clear the case.

                    However, despite settling the judgment the client may have to bear with the judgment on his credit record for many years. This may not go well with the client’s reputation and may wish to avoid it. Hence, settling the judgment may not appeal to the client.

                    1. Apply for bankruptcy

                    The creditor can file a chapter 7 bankruptcy case in the court. This will although save the settlement amount, but the lawyer’s fees need to be paid by the client. This again will damage the reputation of the client and will stay on his credit card record for more than 10 years.

                    Is there any other option?

                    There is one good option that will retain the reputation of the client as well as settle the judgment. The client can ask the creditor to vacate the judgment in good faith and dismiss the lawsuit. This way the client is clear off the record and is able to save his reputation. Apparently, the creditor’s lawyer may not be happy with the deal. The debtor can make some effort to convince the lawyer by offering an extra package to the creditor’s lawyer. The small amount will be like a drop in the ocean to save and secure the client’s reputation with an upgraded credit card report.

                    Things to keep in mind while settling a debt amount

                    The entire procedure of settling the debt must be covered well in a written document signed by both parties. Without the written document there will be no strong proof of settlement. Hence the client must agree on a written document before paying the money. Secondly, the client must take into notice that despite settlement the client is not excused of tax on the forgone debt amount. He may need to pay the tax against the actual debt amount. To understand more call on 888-297-6203.


                      *Are you more than 60 days past due on your mortgage?

                      *Do you own a home?

                      Are you currently working?

                      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                    • Chapter 11 or Chapter 13: What is Best For a Small Business?

                      Chapter 11 or Chapter 13: What is Best For a Small Business?

                      Small businesses, when comes under acute pressure of financial liabilities, do not have many options with them. Filing for bankruptcy can be the only option if you had like to revive your small business or wrap up the same. Chapter 7 bankruptcy will lead to winding up of the small business while Chapter 11 or Chapter 13 (if qualified) can help you in keeping the business running. To learn more about Chapter 7 and its benefits, log on to https://bankruptcy.staging.recoverylawgroup.com/.

                      How does Chapter 11 or Chapter 13 help?

                      The concept or logic used in Chapter 11 or Chapter 13 is similar. They deal with the restructuring of business/individual debt in order to make the payout more practical and feasible for all parties involved. Some key benefits of this concept can be listed as follows-

                      • Allows for business continuity by retaining most business assets
                      • Helps you buy time to settle the crisis, extremely beneficial if the business has been struck with some temporary obstacles
                      • Helps in arriving at a negotiated agreement with the secured lenders
                      • Helps in releasing some of the debts, especially non-priority unsecured debts that cannot be paid of during the length of the proposed repayment plan

                      Eligibility and benefits

                      In comparison, if eligible, Chapter 13 is always a better option. Most small business owners especially sole proprietors are eligible for Chapter 13 and opt it straight away even before evaluating Chapter 11. Chapter 13 is less expensive and less complicated compared to Chapter 11, which makes it a straight choice. Eligibility criterions for Chapter 13 are listed as follows-

                      • As discussed earlier any individual who has a sole proprietorship is eligible for Chapter 13.
                      • In certain cases, based on case to case scenarios, small enterprises below the debt threshold can be facilitated under Chapter 13.
                      • This, however, is completely in discretion of the bankruptcy court and is pretty rare.
                      • If you are a sole proprietor and have debts below the threshold, you would not have to worry about the rarest of rare scenarios.

                      Unlike Chapter 13, Chapter 11 does not have any eligibility criterion. Anyone can usually file under Chapter 11 for bankruptcy. Individuals, corporations, small businesses, partnerships, etc. There isn’t any debt threshold either. It is a sort of blanket bankruptcy chapter that is slightly more expensive and complicated than other alternatives.

                      Advantages of Chapter 11

                      • The first advantage of Chapter 11 is with respect to the modification in terms with the secured lenders. This negotiation and change in terms make it more likely for a business to retain its assets and function well in order to recover from the state of bankruptcy.
                      • The usual concept of discharge or release of debt occurs only when the payment plan has ended. The payment may vary as per disposable income in Chapter 13, which means if the income increases over the duration of payment’s plan, you might end up paying more and have fewer debts discharged or released. The debt in the case of Chapter 11 bankruptcy, is released with the start of the payment plan. Once, the payment plan has been approved, the unpayable debt as per the payment plan is released.
                      • The cost or commission towards a bankruptcy trustee can be saved when using Chapter 11. As per laws, bankruptcy trustee appointment is optional and is usually appointed only with respect fraudulent or mass mismanagement cases.

                      Advantages of Chapter 13

                      • Unlike Chapter 11, the tenure of repayment is limited to 5 years under Chapter 13. If the secured debts and disposable income fail to meet during the 5 years, a small business might have to lose some of its assets during the course Chapter 13 bankruptcy.
                      • The liability to turnover disposable income irrespective of the payment plan obligations, lower debt release percentages and compulsory appointment of a bankruptcy trustee are some disadvantages of Chapter 13. However, in spite of all these, the Chapter 13 bankruptcy Los Angeles process tends to be quicker and cheaper compared to Chapter
                      • The making and approval of payment plan is a lot of quicker compared to Chapter 11

                      To know more about eligibility, possibilities and best roundabouts for your small business organization, reach out to some of the vastly skilled and experienced attorneys@ 888-297-6203.


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