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Bankruptcy and Business Continuity
The common illusion about bankruptcy is that a business might have to wrap up after bankruptcy or business will not be able to continue after bankruptcy. However, this might not be true in most scenarios. There are different sections under which bankruptcy could be filed, these maybe Chapter 7 or 11 or 13. The company structure, business activity, assets and the fixed or probable income available to fund a repayment schedule can help in determining the right section to file bankruptcy.

Factors of consideration for business continuity
- Is the business really making money?
Not every startup idea is a great venture, if your business is resulting in losses for a consistent period of time, you might want to reconsider if winding up is a better option. If nothing is going as per planned and this is for a longer period than you predicted, then it is time to wrap up the business. However, if the business did yield significant profits previously and this is just a bad phase due to temporary internal or external factors, it is worthwhile to consider letting the business flow until the external or internal factors are resolved.
- Assets and liabilities balance
The balance between assets and liabilities determines the sustainability of a business in the long run. If your calculation of assets is larger than liabilities, then it can be interpreted as a bad phase in business and removing the plug might not be the right option. On the other hand, if the liabilities exceed considerably over the assets, it is time to pull the plug. Instead of retaining such a business one can prefer starting a new one altogether, as growing liabilities, only create a bigger pothole that keeps sucking all potential assets and growth opportunities.
- Personal liability for business debts?
Personal liability on business debts can be a case with proprietary businesses or partnerships. The lenders might have access to personal assets for business debts. If there is potential to revive the business without seeking additional debts and buying time from lenders, that is the best option. However, if that seems to be difficult and if you already have your back to the wall, bankruptcy and business wrap up could be the only choice available.

Chapters under which business bankruptcy can be filed-
- Chapter 7
Chapter 7 bankruptcy Los Angeles is usually used by proper companies and businesses who are looking to wind up their business. There usually isn’t any exemption to prevent sale or liquidation of any company asset during business bankruptcy under Chapter 7 and hence, all the assets are usually liquidated for an equal share amongst the lenders. In a straightforward liquidation case, with minimum argument or dispute regarding creditor’s share, the liquidation can be settled outside court as it saves a lot of effort, cost and time.

However, in the case of complex debt arrangements and lender disputes, there is no choice but to opt for a legal procedure. This chapter is certainly not recommended for partnership or sole proprietors as their personal properties to the extent of secured debts could be attached for repayment. This can be prevented by the use of other chapters.
- Chapter 13
Chapter 13 is only for individuals so only sole proprietors qualify for this chapter. The process of qualifying for Chapter 13 or Chapter 7 also for that matter becomes a lot easier with business debts. This is the best alternative for the sole proprietors who wish to keep their business running and do not want to give up on any business or personal assets. By filing affordable Chapter 13 bankruptcy Los Angeles, you might discharge part of your unsecured debts and also maintain your business assets. As per stats, sole proprietors filing Chapter 13 may end up losing some of their business assets as they are short on cash and it isn’t the most feasible thing to carry around so much debt for 4-5 years of the repayment plan. That is another thought to be considered when filing for Chapter 13 as not all of your assets will be safe.
- Chapter 11
The partnerships, Limited Liability Corporations, general Corporations, etc., usually opt for Chapter 11 bankruptcy. The concept of Chapter 11 is based on Chapter 13. It emphasizes on a restructuring of debt with a feasible repayment plan that helps in business continuity. Being based on Chapter 13, Chapter 11 is not that straightforward as Chapter 13. It can get complicated and it is strictly recommended for use of an attorney specifically for Chapter 11. The prospective payment plan has to be feasible, practical and needs to be approved by all creditors on board. Apart from the complicated procedure, the overall expense is a lot higher and not recommended for small businesses. Reach out to 888-297-6203 for more intriguing facts and options in business bankruptcy.
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August 9, 2019
Different Categories of Debts During Bankruptcy
Bankruptcy can be a complicated process especially when the filer possesses different kinds of debts. Classifying the debts in the right order or priority might seem simple but is a very complicated process. These debts can be replaced by a phrase called ‘lender claims’ or ‘creditor claim’. The first step to this complicated process is to segregate debt between secured and unsecured debts. Secured means debts which have a lien or a security backing in the form of collateral. You will use Schedule D to list such secured creditors. While unsecured debts are debts which are given without any security or asset backing and are usually offered at a high rate of interest. You will use Schedule E or Schedule F for listing unsecured lenders.

The unsecured debts are to be further classified under priority and non-priority debts. Priority debts might include tax debts, utility payment debts, child support, alimony, etc. These priority debts are to be reported in Part 1 of the schedule while all other non-priority debts or non-categorized can be reported in Part 2. To know more such information about bankruptcy and find a suitable attorney for expert advice and solutions, log on to https://bankruptcy.staging.recoverylawgroup.com/

Secured claims and bankruptcy

During bankruptcy, the secured creditors enjoy an advantageous position as the lien on the asset pertains after bankruptcy. They can exercise the right to foreclosure or re-access the property labeled as collateral for the transaction. The only benefit the bankruptcy filer gets is extra time to repay the debt if he/she plans to retain the asset or debt settlement if he/she is willing to give away the asset specified as collateral in the loan agreement. Having more equity in mortgage or auto loan will prompt the bankruptcy trustee to sell off the asset. Also, the bankruptcy filer will be entitled to any exemption amount or any equity amount that could be protected in the secured mortgage or auto loan.

If the bankruptcy trustee cannot realize sufficient funds to set off the exemptions and a good portion of lender claims, the bankruptcy will resist selling off lien assets. If you had like to give away your assets and settle all your debts, Chapter 7 is a good option and if you wish to keep your assets at any cost, Chapter 13 bankruptcy California is the best option for you. You can also gain an advantageous position by relaxing or evading certain liens. Getting rid of any judgment liens that are over and beyond bankruptcy can certainly help. Under Chapter 13, with a skilled attorney, you can also get rid of the unsecured junior lien. These falls under adversary proceedings and only a professional attorney might be able to guide you on this.

Unsecured claims and bankruptcy

Unsecured creditors might not be very happy. They might be really-really upset if they are in the non-priority side of claims. The Chapter 7 bankruptcy code is known for eliminating most of the non-priority debts with minimal or no payments. However, the priority debts like any income tax debt, child support, alimony, student loans, penalties, fines, etc., cannot be released or discharged by the bankruptcy court. In such a scenario, you are held liable for all these debts even after bankruptcy and they just don’t vanish or get settled like most debts under Chapter 7 bankruptcy. Medical bills, credit card bills, payday or personal loans, etc., fall into the category of non-priority debts. To know the best possibilities for your bankruptcy case, reach out to 888-297-6203 now!
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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.
August 9, 2019
Who is Not Eligible to File for Chapter 7 Bankruptcy?
A bad financial situation can affect anybody anytime. Bankruptcy is one of the most viable solutions to get out of huge financial debts. A person or company can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 or liquidation bankruptcy is generally preferred as it takes comparatively less time and gets rid of unsecured debts. However, qualifying for Chapter 7 is one of the primary requirements to get a discharge. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, an individual filing for consumer bankruptcy needs to pass the means test, which requires you to have income less than an average household with a similar number of members. Disabled veterans or debtors whose debts arise mainly due to a business operation are exempted from the means test. There are other criteria to consider regarding eligibility for Chapter 7 bankruptcy. These include:

Your income

If your monthly income (average of the last six months) is less than the state median income, then you are eligible for Chapter 7 bankruptcy. If your income is more than the average income, you need to pass the means test. The bankruptcy trustee checks your disposable income to find out if you can repay your debts. Disposable income is calculated by deducting certain essential monthly expenses and required debt payments (secured and priority debts) from your total income. This disposable income is used to pay unsecured nonpriority debts such as credit card bills, personal loans, medical bills, etc. over a period of your repayment plan. Documents submitted while filing for bankruptcy include Schedule I where your income is mentioned and Schedule J which lists your expenses. These are used to calculate your disposable income. If there is enough disposable income, you can opt for Chapter 13 bankruptcy instead of Chapter 7.

Any previous bankruptcy discharges

There is a time limit to filing for bankruptcy and getting a discharge in Chapter 7 bankruptcy case. A Chapter 7 bankruptcy case discharge within 8 years or Chapter 13 bankruptcy case discharge within the previous 6 years you cannot get a discharge in Chapter 7. Additionally, if a previous Chapter 7 or Chapter 13 case was dismissed by the court in the past 6 months due to:
- your violation of a court order;
- your filing was an abuse of bankruptcy system;
- you asked for dismissal when a creditor sought relief from the automatic
Defrauding creditors

Your case might also be dismissed if you tried to cheat your creditors. Concealing assets so that you do not have to pay your creditors or transferring them to family or friends in order to prevent the non-exempt property from being liquidated, is considered fraud by the court. The court might dismiss your bankruptcy case if the trustee finds evidence of:
- a huge amount of debts for luxury items within a stipulated time frame of bankruptcy filing;
- selling of assets to relatives or friends at less than fair market rate;
- hiding money or property from your business partner;
- lying about your debts or income on your credit application.
Failure to disclose any pertinent information regarding your financial affairs or hiding assets to defraud your creditors might get your case dismissed. You might also be prosecuted for fraud.

Incorporated entity

In case the filer is a Corporation or LLC, they cannot get a discharge of their debts in a Chapter 7 bankruptcy case. In this case, the assets of the company are liquidated by the trustee and the fund so generated is distributed among the creditors. For further inquiry, call 888-297-6023 to speak with expert bankruptcy lawyers.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
August 9, 2019
What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?
When you file for bankruptcy all your assets are divided into the exempt and non-exempt property. While you can keep your exempt property, the non-exempt property is used to pay back your creditors. In the case of Chapter 7 bankruptcy, the trustee liquidates your non-exempt property to repay unsecured debts. In Chapter 13 bankruptcy, you can keep non-exempt property too, but you need to pay an equivalent amount to your unsecured creditors. According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, funds in your checking account can be used to repay your creditors, or kept by the bank if you owe money to them (via credit cards) or can be exempted.

While filing for bankruptcy you are expected to disclose all your assets and income including your checking account balance. In case you fail to do so, and the trustee finds out about it, it will be difficult to protect any money in the account. You could also be accused of fraud. However, there is a possibility that you could protect your checking account using the exemptions provided by the state. Every state and the federal government provide bankruptcy filers with several exemptions to protect their equity in various assets. You could choose from either set of exemptions. You need to specify which property you wish to exempt during the bankruptcy proceedings. For further details regarding the procedure, call 888-297-6023 to speak with expert bankruptcy lawyers Los Angeles.

Can checking account funds be exempted?

If you can get an exemption on your checking account, you will be able to protect that money from being handed over to your creditors by the bankruptcy trustee. However, most states don’t offer an exemption for checking accounts or cash. Those that offer have very less limit. You could, however, use other exemption to protect this fund, like:
- personal property up to a certain dollar amount;
- cash on hand up to a certain dollar amount;
- Social Security and other federal benefits;
- your wages;
- pension and retirement funds;
- personal injury awards;
- child or spousal support;
- tenancy;
- wildcard exemption up to a certain dollar amount.
What if the checking accounts are partially exempted or worse, not exempted?

If the account funds are non-exempt or partially exempt when you file for bankruptcy, you will not be able to keep that money. Any non-exempt property is handed over to the bankruptcy trustee and used to pay your creditors. However, there are certain things you need to remember while dealing with checking accounts during bankruptcy.
1. Your accounts freeze. Banks freeze your accounts when they become aware of your bankruptcy. This is done to protect your creditors. You or your attorney could ask for a release of the freeze and the needful is done if the trustee agrees that you are entitled to the checking account funds.
2. Clear checks before filing for bankruptcy. If your checking account balance exceeds exempted amount (cheques didn’t clear) when you file for bankruptcy, the account could be freeze and funds regarded as non-exempt property. It is important to ensure that your cheques have cleared before you file for bankruptcy to avoid this situation.
3. Business bankruptcy. The trustee can call banks directly in this case, unlike an individual bankruptcy as in the latter case you just must pay an amount equivalent to non-exempt funds in an account.
4. Owing money to the bank. If you have a credit card and checking account of the same bank, your bank can use the money in the account to settle the credit card debt in case of Chapter 7 bankruptcy Los Angeles.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
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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.
August 8, 2019
Which Chapter of Bankruptcy Would Work Best for Me?
People, when confounded with huge amounts of debts, are often looking for ways to get out of this grim situation. Filing for bankruptcy is one of the options that they can choose. However, there are other options also available, say lawyers of Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, to provide you with a fresh start. Individuals can file for either Chapter 7 or Chapter 13 bankruptcy, however, each has eligibility requirements; you should have income low enough to pass the Chapter 7 means test or substantial disposable income apart from a dollar limit cap on your debts in case of a Chapter 13 bankruptcy Los Angeles. Since bankruptcy is going to affect your credit score, it is important to consider all options including working things out with creditors outside bankruptcy. For alternate options to bankruptcy, call 888-297-6023 to speak with expert bankruptcy lawyers.

Chapter 7 or Chapter 13?

While the former is ideal for people with low income to pass the means test and those who can protect all their property through exemptions. They will be able to get their debts discharged during bankruptcy. Contrary to this, Chapter 13 bankruptcy is for people with higher income preventing them from qualifying for Chapter 7. People who wish to save the property from repossession or foreclosure and want to repay their non-dischargeable debts over a 3 to 5-years repayment plan.

Factors to consider while choosing a chapter when filing for bankruptcy include:
- Your income and expenses;
- Types of debts owed;
- Whether you wish to keep or lose your property.
Can bankruptcy help in your financial troubles?

You might be under heavy debts and dealing with repossession or foreclosure when you file for bankruptcy, but it is important to know the extent to which bankruptcy will be able to help you. Though bankruptcy is one of the best methods to get rid of a huge amount of debts such as medical bills, credit card bills and personal loans, there are certain debts that survive bankruptcy. These include child and spousal support, tax debts, student loans, etc. It may, however, help you in spreading out the non-dischargeable debt payment over a 3-5 years’ repayment plan (Chapter 13).

In case of secured debts like car loans and mortgages, you might be facing repossession or foreclosure action by creditors. Filing for bankruptcy results in an automatic stay which puts a hold to any collection action. Additionally, in Chapter 13 you get to keep the property and catch up on missed mortgage payments; opt for a cramdown if the property’s current value is less than the balance on your loan and remove junior liens on your house through lien stripping. The automatic stay also puts a restraint on other collection actions by creditors such as wage garnishment and lawsuits against you, apart from eliminating any underlying debt

Protecting your property with the bankruptcy

Bankruptcy filers don’t lose all their possessions. Certain exemptions (state and federal) are available to protect the debtor’s property up to a certain amount. You can choose between state and federal bankruptcy exemptions (if your state offers the choice) to protect certain equity in your assets. Generally, exemption statutes let you keep various items essential for you to get a fresh start. The non-exempt property is treated differently in different bankruptcy chapters.
- Chapter 7 bankruptcy
Any non-exempt property is sold off by bankruptcy trustee to repay your creditors.
- Chapter 13 bankruptcy
You can keep the un-exempt property but need to pay an amount equivalent to that to your unsecured creditors.

People with a significant amount of non-exempt property might find bankruptcy a nonviable solution.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
August 8, 2019
What to do if Mortgage Lender Refuses to Send Monthly Statements Post-Bankruptcy?
Bankruptcy is a trying time for people who are debt-ridden. Even after getting a discharge through bankruptcy, the secured debts and priority debts remain. If a debtor who has a mortgage on their house but didn’t reaffirm the loan during bankruptcy continues making monthly payments towards the loan but does not receive monthly mortgage statements from the lender, can be in trouble.

Since sending periodic statements can be construed as a violation of the automatic stay provision of bankruptcy, there exists a debate over it. The automatic stay prevents creditors to take any collection action and these statements could be a reminder of the dues. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, it is not essential for mortgage service providers to give monthly mortgage statements to the debtor, especially after a bankruptcy. However, if you wish to get the same, there are provisions available. Consulting with expert bankruptcy lawyers at 888-297-6023 can help you with your problems.

Periodic Statement Rule

Since the mortgage crisis often results in the homeowners being relatively clueless about the current information on their mortgage accounts, the Consumer Financial Protection Bureau (CFPB) made changes in some rules. As of January 10, 2014, mortgage creditors need to provide monthly billing statements to the borrower. This includes the amount the debtor has already paid, the amount they owe as well as other relevant information.

However, exceptions to this rule also exist. In case your loan is a fixed rate one and your creditor has provided you a payment coupon nook, monthly statements are not required. Additionally, they are also exempted from sending statements during bankruptcy proceedings. If the debt is discharged during bankruptcy, then there is no need to send monthly statements. Though, some bankruptcy lawyers in Dallas insist on getting monthly statements if the mortgage lien exists. In case the creditor enforces the lien, they should oblige with the periodic statement rule.

Wish the creditor to resume sending periodic statements? Here’s what you should do

Asking the mortgage service provider to resume sending the statements is the first thing. The creditor might oblige or ask you to reopen the bankruptcy case and reaffirm the loan to resume getting monthly statements. However, this is a bad idea as you cannot get rid of the mortgage if you reaffirm it. Moreover, in many jurisdictions, this might not be approved in courts. Alternately, you could refer to the periodic statement rule to request the mortgage servicer to send monthly mortgage statements.

In case you wish to get information about your account (payment amount or interest rate readjustment schedule) but the mortgage servicer is not cooperative, you can request for the information under the Real Estate Settlement Procedures Act (RESPA). Care must be taken to ask for this request within one year of getting a bankruptcy discharge or when both debt and corresponding lien have ended. The written request must include:
- Your name
- The information which helps identify your mortgage loan account
- Information you wish to know with respect to your mortgage loan
Ensure that your date and sign the letter and send it via certified mail to the designated address of the servicer for proper record of the process.

On receiving your written RESPA request for monthly mortgage statement via registered mail, the servicer needs to provide a written acknowledgment within 5 days and respond within 30 days with the required information. An additional 15 days can be given to the servicer provided they give a notification, in writing, (before the expiration of the original 30-day timeframe) asking for an extension with reasons for it.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
August 7, 2019
What is No-Asset Chapter 7 Bankruptcy?
While the Chapter 7 is known as the bankruptcy code which sets off debt from the liquidation of assets, it can be surprising to learn about No-Asset Chapter 7 bankruptcy. It could be even more surprising to note that most of the Chapter 7 bankruptcy California cases are No-Asset cases. The no-asset case is a scenario where, the filer does not give in any asset or cash to the bankruptcy trustee for liquidation. The filer instead keeps possession of all the assets, he/she owns. The lenders or creditors will not expect any proceeds or debt settlement, as there would not be any since, the filer has no assets to give in to the bankruptcy trustee.

What is the core of Chapter 7 bankruptcy?

Chapter 7 classifies all assets held into two types. One is exempt and the other one is nonexempt. The nonexempt assets are given up for liquidation and their proceeds are used to settle the debts of the lender. Exempt assets are assets which are of basic necessity and have various codes and sections wherein they shall be exempt against the Chapter 7 bankruptcy procedures. These assets need not be given up during the Chapter 7 bankruptcy course. To know if your asset is exempt or non-exempt as per your state exemptions, log on to https://bankruptcy.staging.recoverylawgroup.com/.

How can a case turn into No-Asset case?

If you have used all the exemptions and have all your assets in the blanket of exempt assets and none in the nonexempt category, your case becomes a no-asset case. Close to 70% Chapter 7 bankruptcy witnessed in states like California, Texas, New York, etc., see no-asset case. Once you have protected all your assets under some or the other state/federal exemption, the bankruptcy trustee cannot liquidate the same to settle the debts of the lenders. In this scenario, the court sends notice information to all the lenders associated with the filer confirming no proceeds or debt settlement from the Chapter 7 bankruptcy filing.

The lenders or creditors would not need to file a proof of claim or record the amount owed by the filer. All the debts shall be released once the bankruptcy case has been settled by the court. However, if during the investigation, bankruptcy trustee comes across some nonexempt asset, the trustee will notify the lenders and collect documentation to allocate the hence generated proceeds towards the debt. For better understanding or help, reach out to +1 888-297-6203 now for the most professional and experienced attorneys California in town.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
YesNo

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.
August 7, 2019
Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?
Chapter 7 is not often recommended by experts as people tend to lose their valuable assets with this type of bankruptcy. However, there are many situations when Chapter 7 can be beneficial than Chapter 13. These benefits can be interpreted as reasons for opting for Chapter 7 over Chapter 13. To learn more about bankruptcy, Chapter 7, Chapter 13 and other Chapters log on to https://bankruptcy.staging.recoverylawgroup.com/.

List of some benefits of Chapter 7
- Less time-consuming- The process of applying for bankruptcy under Chapter 7 and receiving a court judgment is relatively quick. An average case could take 3-6 months from the day bankruptcy has been filed.
- Absence of payment plans- Unlike Chapter 13, Chapter 7 does not carry most liabilities forward. This means there is no need for any payment plan in order to repay the creditors in the future.
- A higher percentage of debts can be released- With some exception to some of the priority debts like student loans, child support, alimony, taxes, penalties, etc., most of the other debts are released when Chapter 7 bankruptcy is filed. In general Chapter 7 results in the highest percentage of debt release compared to other Chapters.
- Protecting basic assets is a possibility- The common sentiment with respect to people filing Chapter 7 or considering Chapter 7 is that they won’t have any assets left. However, this is not true, there can be several arrangements made wherein many assets can be protected as well as some nonexempt assets also can be possessed. Under most circumstances, you can keep your basic essential assets including a home and a car.
What type of filers should consider Chapter 7 bankruptcy?

Chapter 7 is ideal for people with the following characteristics-
- Own assets with a lower fair market value
- Have a higher amount of unsecured loans like a credit card, medical bills or unsecured personal loans
- Whose household income is less than the state median
The matching of household income with the state median is a basic eligibility criterion. If your household income is below the state median of similar household, you qualify for Chapter 7. Else, you would have to deduct your income with some standard deductions to know your net income less standard or basic expense deduction. If your income is still above the median, you might not qualify for Chapter 7.

Should you opt for Chapter 13?

Chapter 13 is the straight competitor to Chapter 7. People who have high priority loans which will not get discharged while filing for Chapter 7 bankruptcy, should consider Chapter 13. People who wish to keep all their assets without much complications should also consider Chapter 13. What are some of the key disadvantages of considering Chapter 13? The list can be found below-
1. Time-consuming – Apart from the 3-6 months of processing time in the bankruptcy court, your payment plan might last for 5 years. This means you are not left off the hook for a very long period of time compared to Chapter 7, which is almost done and dusted in max 6 months of the time
2. Disposable Income – Often there is a misunderstanding that, the payment plan does not fluctuate with the change in disposable income. However, if the disposable income increases, the payment plan changes to accommodate more debt. To sum it up, the increase in income directly reduces the amount of debt being released.
3. Complicated payment plan and disposable income calculation – Arriving at the disposable income and forming a payment plan for the next 3-5 years that satisfies the bankruptcy trustee, as well as the lenders, can be a laborious work.
4. Adhering to the payment plan – Adhering to the payment plan becomes extremely important for a Chapter 13 filer, as there is a risk of losing the assets used to secure the loan such as a car or even the home to foreclosure. Apart from being current with the payment plan, the filer has to be current with all the non-releasable debt like taxes, administrative fees, child support, etc. This can be tough.
5. History does not support the cause well – Just how past records say 85% of Chapter 7 cases are no-asset cases, the trend is not very positive for Chapter 13. As records, 63% of Chapter 13 bankruptcy filers do not successfully execute their payment plan as determined at the time of filing. This creates a greater risk of foreclosure, asset detachment and zero release of debts.
The above were some of the negatives of Chapter 13 bankruptcy code. However, people with consistent and good income sources have managed to get better of the record presented by Chapter 13 historic filers. A lot has been discussed about disposable income. Let’s find the list of deductions allowed from your income to arrive at the disposable income-
- Food and clothing as per the standard deduction allocated in the state
- Housing and utilities as per the federal standard or state irrespective of actual costs
- Transportation if the filer does not own a car or a bike or maintenance costs if the filer owns an automobile
- Taxes
- Involuntary deductions from salary
- Life Insurance
- Child support, family support, alimony, and similar court rulings
- Healthcare cost as per the standard indicated by the state or federal standard
- Certain education costs
Total income less the above deductions would help you arrive at the disposable income, which will be directly in full towards the debts owed for the next 3-5 years. If you are still confused about whether to opt for Chapter 7 bankruptcy or Chapter 13 bankruptcy, connect with us at 888-297-6203 for the best advice and experienced solutions.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

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August 6, 2019
What is Emergency Bankruptcy Filing?
Creditors can go to any lengths to get their money back. This may include threatening phone calls, foreclosure, repossession, wage garnishment, collection lawsuit, etc. If you are on the verge of getting evicted or any similar situation, bankruptcy can come in handy. When you file for bankruptcy in court, the automatic stay provision protects you from all collection actions by creditors. However, bankruptcy filing requires you to fill several forms. This requires time, which you don’t have. Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, suggest an alternative. You can opt for an emergency bankruptcy filing, also known as skeleton filing, where you need a few documents. This will result in an automatic stay, while you can submit remaining documents within the next 14 days. Call 888-297-6023 to know more about the procedure from expert bankruptcy lawyers.

When would you need emergency bankruptcy filing?

A bankruptcy petition comprises of numerous forms and details regarding your income, assets, your creditors, etc. However, when faced with immediate foreclosure or repossession action, there might not be time enough to get everything in order. You can, however, file bankruptcy forms online quickly using the emergency bankruptcy filing. You can access the online filing system anytime and start the online bankruptcy process by uploading some of the required forms. These include your bankruptcy petition specifying the chapter you are filing under and other relevant information like the creditor mailing list; mandatory credit counseling certificate or a request for its waiver and form B121 providing information about your Social Security number. You also need to pay a filing fee or submit a request for its waiver or request paying the fee in installments. You will need to submit all additional documents within 14 days of online filing of your skeleton bankruptcy case or it will be dismissed.

Emergency bankruptcy filing steps

Emergency bankruptcy filing involves the following steps:
1. You must check with the court clerk or the official website to find out which forms are required for an emergency
2. You need to fill the voluntary petition for individuals filing for bankruptcy.
3. Ensure that you include the names and addresses of all your creditors, collection agencies, attorneys, sheriffs and any other person who can collect a debt from you.
4. Fill form B121 providing information about your Social Security number.
5. Complete all forms required by the court. This can vary in every jurisdiction.
6. File the original form along with the necessary number of copies with the court clerk. This should be accompanied by the bankruptcy filing fee, request for paying the fee in installments or a fee waiver application, along with a self-addressed envelope. Always ensure that you have a copy of every document for your records.
7. File all remaining bankruptcy forms within 14 days to avoid dismissal of the case.
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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.
August 6, 2019
What Happens to Student Loan Debt in Bankruptcy?
Student debt is one of the debts which does not get discharged during bankruptcy; neither in Chapter 7 nor in Chapter 13 unless you can prove that repaying them can cause undue hardship to you. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, different tests are used by different courts to determine undue hardship. In the undue hardship test, most courts offer you to get either the entire loan discharged or nothing at all; while some courts might allow you a partial discharge of student loan. To get this loan discharged during bankruptcy, either you should have very low income, or the loan should have been from a for-profit trade school.

The Brunner Test

According to this test, your student loan can be discharged if you are:
- poor enough to maintain a minimum standard of living for you and your dependents if you are made to repay the loan;
- your financial situation is not likely to improve for a significant period (repayment);
- you have previously made a good faith effort to repay the student loan.
The court considers all factors before determining if repaying the student loan constitutes an undue hardship in your case. Other tests, apart from Brunner Test food include a special test, Health Education Assistance Loans (HEAL). In this case, you need to show that the repayment of the loan which was due more than seven years ago will result in an immense burden on your life. For more details on which tests are used to get student loan discharged, call 888-297-6023 to speak with expert bankruptcy lawyers.

What is the procedure to get student loan discharged?

Hiring an expert attorney is the primary step to get loans discharged during bankruptcy. for getting your student loan discharged, you need to file an adversary proceeding to find out if the loan can be discharged. You need to present evidence of undue hardship to get the loan discharged. You also need to show you made efforts previously to repay your student loan. Additionally, if you attended vocational school and you were deceived due to a breach of contract, fraud or unfair practices, then you won’t owe any debt.

In most cases of student loan, the federal government is the lender. However, these days, loans are available through private institutions like banks also. To get your student loan debt discharged (whether government or private), you need to show that repayment will cause undue hardship. Apart from the Brunner test, other standardized tests are also used in Chapter 7 and Chapter 13 cases of a bankruptcy involving the discharge of student loan debt. It is therefore advisable to hire a local bankruptcy attorney who is well-versed with the court rulings in similar cases.

In case your student loan is not discharged, the result varies in Chapter 7 and Chapter 13 bankruptcy Dallas. In the former case, if you are unable to prove undue hardship, the loan survives your bankruptcy and you still owe the money after your bankruptcy discharge. In the case of Chapter 13, if your student loan debt is not discharged, other options are available like paying a reduced amount during the Chapter repayment plan. You will, however, need to pay the entire amount which remains on the loan after your repayment plan ends.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
August 6, 2019