Author: admin

Motor vehicle exemption act and bankruptcy
Cars, trucks, automobiles, etc., attract a lot of tension during bankruptcy. Travelling can be an expensive and painful affair without a car in most cities in the United States. No individual wants to let go of his/her car for whatever reason there might be. Bankruptcy can be one of the situations that would require a compromise as an automobile loan is considered as a secured loan and is released in very rare circumstances. It is much easier to protect your automobile assets if you are filing for bankruptcy via Chapter 13 versus Chapter 7. The key distinction between Chapter 7 and Chapter 13 is the provision they allow for in order to settle the debts. Chapter 7 liquidates all your non-exempt assets in order to payoff secured and other priority debts with its proceeds. Your automobile might well fall under non-exempt asset. To know more about exempt and non-exempt assets, log on to Recovery Law Group.

On the other hand, Chapter 13 emphasizes on creating a future repayment plan which means your current assets are not under any kind of danger. This plan, however, lasts for 36-60 months and a debtor ends up clearing most of his/her debt with the disposable income realized/calculated by the bankruptcy court.

How do you protect your vehicle when applying for bankruptcy under Chapter 7?

Under normal circumstances, the vehicle is part of a secured loan and has to be prioritized across other loans during liquidation. Also, cars, vans, trucks, and motorcycles do not form a part of exempt assets hence, the bankruptcy trustee has full authority to liquidate the asset and pay off the debts. The motor vehicle exemptions act can help protect your vehicle in these circumstances. If the entire equity of your vehicle has been covered under the car exemption, the bankruptcy trustee might not be able to liquidate your car. If the car equity is partially covered under car exemption, the bankruptcy trustee can still be able to consider it as a non-exempt asset for liquidation.

Apart from being a game changer in the Chapter 7 bankruptcy California code, the motor vehicle exemptions have a significant role to play in Chapter 13 code also. If your vehicle is not protected under the exemption, it will add up to the tally of nonexempt assets, which ultimately decides the amount due to unsecured creditors. This means you will end up paying out more unsecured debt if your tally of nonexempt assets is higher. Getting your vehicle covered with motor vehicle exemption act can be a good move considering these aspects.

Federal and State laws to be used for safeguarding your vehicle

There are different circumstances, situations when Federal law is beneficial and can prevail over state laws. Historically, people filing for bankruptcy without an attorney or qualified professional help have failed to retain their cars, trucks, vans and other vehicles. The bankruptcy trustee isn’t the most lenient person when it comes to the nonexempt assets. Sometimes, it can just be beneficial to let go of your car and sometimes, there are ways to protect your car by making different arrangements before filing bankruptcy and after. Every situation case is different and needs a thorough/professional analysis to determine a beneficial situation for the bankruptcy filer. Seek the best professional help right on your phone at +1 888-297-6203.
*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.
July 20, 2019
Know about Texas Bankruptcy Exemptions
Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

Here’s a look at various Texas bankruptcy exemptions:
1. Texas homestead exemptions
The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.
1. Texas motor vehicle exemptions
The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.
1. Texas personal property exemptions
Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:
- Sports and athletic equipment including bicycles;
- Home furnishings including family heirlooms;
- Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
- Food and clothing;
- Up to 2 firearms;
- Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
- Health saving accounts;
- Health aids like walking sticks, wheelchairs, hearing aids, ;
- Burial plots;
- Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
1. Pension and retirement accounts
Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:
- ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
- County and district employee retirement and pension benefits.
- Firefighter pension and retirement benefits.
- Law enforcement officers, emergency medical personnel survivors’ benefit.
- Police officer retirement and pension benefits.
- Judges pension and retirement benefits.
- Municipal employees, state employees and elected officials’ retirement and pension benefits.
- Teacher retirement and pension benefits.
- Retirement benefits which end up being tax-deferred.
1. Insurance exemptions
These include:
- Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
- Texas employee uniform group insurance;
- Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
- Texas public school employees’ group insurance;
- Texas state college or university employee benefits.
However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for bankruptcy.
*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.
July 19, 2019

Difference Between Chapter 7 and Chapter 13 Bankruptcy

Individuals can file for bankruptcy under chapter 7 or chapter 13. There are differences in the way these two chapters function. Bankruptcy attorneys of Dallas based law firm Recovery Law Group, highlight some of the common differences between the two chapters. This is essential for people to know which chapter would work best in their situation.

Chapter 7 Bankruptcy

This is also known as liquidation bankruptcy and is used to wipe out unsecured debts like credit card and medical bills. People whose income is less than the state median can file under this chapter. Filing for bankruptcy ensures that any collection actions like wage garnishment etc. are put on hold due to the automatic stay. The bankruptcy filer’s property is assessed and divided into the exempted and non-exempt property. The non-exempt property is used to pay back your creditors. In case there are no non-exempt assets, the creditors get nothing. This type of bankruptcy can also help people whose discharged debts are more than the value of the non-exempt property sold. Also, the trustee can use the proceeds of non-exempt property sale to clear non-dischargeable debts like income tax or alimony support.

Chapter 13 Bankruptcy

People who fail to qualify for chapter 7 bankruptcy have the option of filing for chapter 13 bankruptcy California . This bankruptcy chapter is also known as the wage earners plan and is for those debtors who have a regular income. The bankruptcy filer’s disposable income, assets, and debts are considered to come up with a repayment plan through which a portion of the debts is paid off every month for a period of 3 to 5 years. This chapter helps you catch up on any mortgage payments you missed, or completely get rid of unsecured junior liens from your home.

You also get to keep all your property including non-exempt ones after paying unsecured creditors, an amount equal to the value of non-exempt property. You can payback all or some portion of your debts through the repayment plan. This chapter can help people get debt relief, prevent wage garnishment, foreclosure, litigation against them, or lower credit card payments. People can pay off their non-dischargeable debts like child support arrears over a period of 3 to 5 years and catch up on missed car or house payments to keep their property.

In case you are considering filing for bankruptcy and are confused which chapter will work best for you, you can call 888-297-6023 to get free bankruptcy consultation. Here are some key differences between the 2 chapters:

	Chapter 7	Chapter 13
Type of Bankruptcy	Liquidation	Reorganization
Who can file?	Individuals and business entities	Only for individuals and sole proprietors
Eligibility criteria	Disposable income low should pass the means test	Unsecured debt should not exceed $419,275 and secured debt should not be more than $1,257,850
Timing of discharge	Usually 3-4 months	On completion of the repayment plan (3-5 years)
Fate of property	Non-exempt property is sold off by the trustee to pay creditors	Can keep all property but pay an amount equal to the non-exempt property to unsecured creditors
Is lien stripping allowed?	No	Yes, if the requirements are met
Is principal loan balance on secured debts reduced?	Yes, in case of tangible personal property only	Yes, if all requirements are met
Benefits	Quick discharge of qualifying debts	Can keep all property, catch up on missed payments (car, mortgage, and other non-dischargeable priority debts
Drawbacks	Non-exempt property is sold off by trustee; cannot catch up on missed payments to prevent repossession or foreclosure	Continue making payments to the trustee as per repayment plan for 3-5 years duration; might have to pay back some general unsecured debts

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.

July 19, 2019

Foreclosure and Bankruptcy
Foreclosure is a very stressful condition and it requires immediate assistance. Foreclosure is not always right and there can be scenarios when it can be easily prevented. A talk or a piece of advice from an experienced attorney can do wonders on most days. Log on to Recovery Law Group to reach out the best attorneys in town to help you or your friend out in case of a foreclosure. The consultation offered is not only confidential but is very professional too. Foreclosure basically means an exercise of a right by the lender to acquire, liquidate or sell off the asset has a lien on. This can happen in case of secured debts if the debtor misses multiple payments. This might also happen in case of unsecured debts under certain circumstances wherein a judicial lien or foreclosure is applied.

What are the causes of a foreclosure?

Foreclosure can occur due to personal or financial situations. Some of the potential reasons for foreclosure could be due to the following-
- Divorce
This is a very common reason for mortgage foreclosure. Due to divorce, the mortgage is no longer borne by two people but is levied on a single person, which always is a very big expense to handle with the existing paycheck. Alimony, child support, etc., can cripple the disposable income available for paying important debts like a home mortgage. So, divorce can be a very big potential reason for foreclosure.
- Death
As is divorce, death plays a significant role especially if it is associated with the higher earning spouse. While most of the household expenses creep up on the shoulders of a single person, it can be very difficult for one to keep up with all secured or unsecured loans pursued earlier. Apart from being a financial crisis, it can lead to an emotional breakdown which is a very difficult situation to be in.
- Illness
Some health disorder or too huge medical bills with large out of pocket expenses can really shake you off your financial track. Being ill will not only reduce the flow of income, cut down your pay slip, but also increase the burden on your savings and the available disposable income. Prolonged illness could also hence lead to foreclosures, bankruptcy, and similar unhealthy financial situations.

Solutions for foreclosure

Foreclosure is not the end of the world. It can be safeguarded and if you are worried about your residence or any other particular asset, you need not be. There are solutions to this foreclosure problem. Some of them can be listed as follows-
- Filing for bankruptcy
Filing for bankruptcy is a great option if you are about to face foreclosure. Not only do you get automatic stay but if you are eligible for filing bankruptcy under Chapter 13, none of your assets will be disturbed and your future disposable income will be used to settle the debts. This is one of the easy and effective formulae to prevent foreclosing.
- Opting for judicial foreclosure
The nonjudicial foreclosure requires a notice of at least 30 days prior initiating the foreclosure. It is important for you to make the lender understand your situation and provide a solution or a plan to pay off the debt in a suitable time frame. If the lender is not convinced, you may have to fight it out in the court and request for judicial foreclosure. There are several benefits offered for judicial foreclosure in states like California however, it proves to be really expensive for the lenders.

Depending on the agreement terms, there can be more ways of dealing with the situation efficiently. An expert mortgage lawyer is just a phone call away from you. Don’t let foreclosure haunt you. Dial 888-297-6203 right now!
*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.
July 19, 2019
Chapter 7 Bankruptcy and Release of Debts
Filing bankruptcy under Chapter 7 is usually with an objective of getting away with all or most unsecured debts. While it is a fact that Chapter 7 bankruptcy can help in releasing most debts secured and unsecured debts. It is also a fact that certain type of debts or liabilities do prevail even after Chapter 7 bankruptcy Los Angeles. Credit card debts pay day loans, etc., are some common unsecured loans that could be released with Chapter 7 bankruptcy.

How does the release of debts work?

A release of debt basically relieves an individual from the liability to repay the debt. It also prevents the lender from making any attempts to recover the debt. The debt has to be written off once released and legally there is no liability for the bankruptcy filer towards the creditors. A lien which has not been voided by the bankruptcy court prevails even after filing a Chapter 7 bankruptcy. This lien can be put to exercise by the lender in order to recover his/her debts. For instance, if you have not been able to keep up on your car loan payments, the lender can exercise the lien and sell/acquire the car and release you of any debt in return. You can also sign an affirmation agreement with a promise to settle dues in a specific time period to retain the car.

How does the release of debt procedure work?

Normally, the release is availed automatically or as we say is applied once the case is closed by the bankruptcy court. The release debt usually occurs within 60 days or 2 months of the creditors meeting. Roughly it would take about 120 days or 4 months for the debts to be released from the day you file your bankruptcy application. There are two kinds of debts which a filer can occur, and both have different consequences. They can be listed as follows-
1. Pre-filing debts
Pre-filing debts as the name clearly suggest are debts that have been incurred before filing of bankruptcy. The court shall release all valid and qualified pre-filing debts for the bankruptcy filer after assessing and evaluating all the factors of consideration.
1. Post-filing debt
These are debts which have been incurred after the bankruptcy has been filed. Since the duration for the debts to get released from the filing day could be about 4 months, there is the possibility of some bills and expenses to rack up during this period. The bankruptcy filer is completely responsible for these expenses and the bankruptcy court shall not release any of such debts.

What are some of the common debts that are discharged?

There are few types of common debts that can be released under the Chapter 7 bankruptcy code. These can be listed as follows-
- Credit card dues
- Collection agency dues
- Medical bills
- Personal loans from family members, friends, and fellow employees/employers
- Utility bills pre-filing debts only
- Bounced or dishonored checks
- Repossessed deficiency balances
- Lease agreement dues
- Automobile accident claims unless until found guilty of drink and drive
- Business Debts
- Dues from civil court judgments
- Penalties for underpayment/nonpayment of federal/state taxes and federal/state taxes
- Social security overpayments
- Veteran assistance loans
- Attorney fees excluding child support and alimony fees
This is not an all-inclusive list. But it consists of the most commonly released debts. To learn more about other non-releasable debts, seek assistance about the release of debts, dial in +1 888-297-6203 now.
*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.
July 18, 2019
Chapter 7 Bankruptcy and Liens
Lien can make bankruptcy and its procedures complicated. Lien could be defined as a right to the lender to take over the specified asset in case the debtor fails to repay his/her debt. The right of lien for the lender or a creditor is valid even for Chapter 7 bankruptcy. Hence, it cannot be released or skipped even if you file bankruptcy under Chapter 7. No lender gives money with a motive to fight out battles in court or to seek different modes for extracting his due. Every lender is an investor and he/she looks for security. The best way to secure the investment is by attaching an asset of the debtor in case he/she defaults or is unable to pay his debts. This is even more important when the loan is bigger and is offered at a relatively lower interest. To know in depth about bankruptcy and its repercussions, log on to Recovery Law Group right now.

Understanding lien and other financial terms associated with it

The lien when exercised leaves the lender with an option to use, auction, or sell the asset in order to recover his loan. There is usually an agreement that is cited between the lender and the debtor which gives an exercisable right or ownership to the lender if the debtor fails to repay. Depending on the terms of the agreement, it is likely that the creditor is responsible for the amount not recovered by selling or disposing of the asset. A deficiency balance is the financial term used for the amount lender fails to recover even after disposing of the lien asset. Under Chapter 7 code, most states release deficiency balance and in very rare circumstances, will the debtor be liable for the deficiency balance.

Secured debt, collateral and credit card

A debt which has a lien is regarded as secured debt. The asset which is kept as a security to cover the debt is referred to as collateral. The collateral does not usually exist in an unsecured loan. Credit card or pay day loans can be categorized under unsecured loans. Usually, the lien is known by the debtor but there can be some instances of enforced liens. These are usually enforced by some government agencies due to non-compliance or similar acts.

For instance, if the IRS attaches a particular asset of yours for non—payment of dues, it is a lien. Another example of such liens could be a lawsuit liability. If a creditor sues a debtor in the court before filing bankruptcy, and the court asks the debtor to clear the dues by backing a specific asset of the debtor, it could be a lien. Unsecured debt has been converted into a secured one. It is quite rare but can happen in some circumstances. This is known as a judicial lien or a judgement lien. The unsecured creditor usually evaluated the cost of litigation and debt and might sue the debtor to convert an unsecured debt to a secured lien if he/she wins the court case.

What can be exercised during judicial liens?

A judicial lien can give access to the creditor with most assets. Real estate is excluded from this lien. Using exemptions and various other strategic planning, most debtors can save automobile, household stuff, home, etc. However, the lender usually goes after the most liquid and easy viable assets like money from the bank account or from future wages. Money cut from wages and granted to the lender or any other lien exercised is referred to as wage garnishment. Under Chapter 7 bankruptcy Dallas, all your loans are wiped out, but you have to sacrifice your assets too. There is no liability for released debt or deficiency balance once the bankruptcy is done and dusted.

In case you had like to keep a specific asset, you might want to use the exemption or pay the dues in full to retain the asset. You can also consider an out of court settlement with the lender who has a lien on that particular asset. With forgiven debts, there is a rise in hefty tax liabilities. You might get away with the liability of debts but there is tax liability hanging behind if the debts released or settled are of high worth. To seek best advice and professional assistance on all your bankruptcy questions contact 888-297-6203 now.
*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.
July 18, 2019
Can Credit Cards be Secured Loans?
Credit card loans always relate to unsecured loans by default. That’s what most of us are used to hearing. However, there can be circumstances when credit card loan can be a secured one too. The basic distinction between secured and unsecured loan is that there is a lien or an asset attached as collateral for the lender to capitalize in order to recover the debt. This holds good only if the debtor defaults or misses payments due consistently. To learn more about loans, bankruptcy, and other financial information, log on to Recovery Law Group, the encyclopedia to address all your financial questions!

What is a secured credit card?

A secured credit card is usually offered in exchange for a deposit in the credit union or a bank. This credit offered usually attracts a lower rate of interest. The percentage of credit extended based on the deposit varies from scenario to scenario and person to person. A few people might only be able to access 50% of the deposit while others can access 120% of the same. Credit score, previous history, amount of deposit, etc., are some factors which a bank or a credit union considers before determining an appropriate percentage. The deposit account isn’t allowed any activity while the credit card is in use. The deposit account is basically frozen. Once the credit card is surrendered, the account is released. In this scenario, the deposit account acts as collateral and makes the credit card issued a secured one.

Why opt for a secured credit card?

Considering it is a secured loan and not a very justifiable solution, it is worthy to understand why people would like to opt for such a credit card. Most people use this as a last resort as they are unable to qualify for an unsecured one. This card is also secured by people who are not eligible due to their poor credit score and want to improve the same by improving their payment history. Secured credit cards are also a lucrative way of increasing the credit card limit slowly. However, there are many flaws in this type of cards too. Higher application fee, annual charges, maintenance fees, and other fees, make this type of card an expensive affair.

The interest rates are high, you don’t even get grace period for repayment too. So, this is not a great alternative for sourcing funds for sure. If you are planning to get one for yourself in order to secure a better credit score it is worthy to ask your credit card company if they report to any of the three national reporting agencies or not. If they don’t, all your hard work to enhance the credit score could just go to vain. If you are not getting one and this is the only option, you are then out of options and there is no choice. However, you have a choice with respect to some of the best financial experts to address, solve and help with all your questions and concerns. Dial in +1 888-297-6203 now!
*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.
July 18, 2019
Bankruptcy will make me lose my truck!
If you are relying on commuting by your truck or car to your office, giving up the car/truck due to bankruptcy. It can be even worse if you own a truck and use it for your side-income or if it is your source of employment directly or indirectly. The good news is that most States in the United States of America allow for a provision that helps protect your truck or a car. There is a specific value threshold though that means, if your car or truck is not a luxury one or is an inexpensive one, you might just be able to keep it under state provisions. To learn more about bankruptcy and seek best advice relating to it log on to Recovery Law Group now.

What does asset exemption mean?

When filing bankruptcy under Chapter 7, which requires you to surrender your assets in order to pay off your dues. However, not all assets have to be surrendered and there are some exemptions. Maintenance of home and employment is an essential aspect of every state guideline. These beneficial laws allow a filer to retain certain assets, which can be listed as follows-
- Furniture in the household, which are not associated as luxury
- Clothing
- Wedding ring
- Inexpensive or not luxury or ordinary vehicle
- Retirement money which has been qualified by ERISA
- A part of your equity in the home, which is filer’s primary residence
What exemption rules can allow me to keep my truck?

There are three common exemptions which can be applied for in order to keep the truck or car during and after bankruptcy. These three exemption rules can be listed as follows-
- Tools of the trade code
Some states in fact majority of them allow the bankruptcy filer to retain some properties that are essential for work. A work truck or a car driven exclusively for work purposes in the past should qualify for this exemption code. You still, however, may need to provide strong evidence that you need the car/truck to generate income or to keep up with employment. The amount of exemption can be capped around $1,500 to $10,000 depending on the state in which the bankruptcy has been applied.
- Motor vehicle exemption code
This exemption code allows bankruptcy filer to retain his/her car or truck. There is no justification or reasoning needed with respect to use/income generation or any such criterions. However, most states have a very slim threshold a will usually allow for a few thousand dollars as exemption amount. In order for the bankruptcy trustee to not exercise your automobile, the exemption amount should cover your vehicle’s present market value. Else, the bankruptcy trustee can exercise right to liquidate the same. The value of the vehicle plays a very significant role for qualifying under the motor vehicle exemption code. It shall vary from state to state.
- Wildcard Exemption
Some states allow you to protect your assets up to a blanket value during bankruptcy. This exemption is usually larger, but it shall incorporate all exempt assets and the non-exempt assets which you had like to keep. If you have lower value or worth of exempt assets, this can be an ideal option to safeguard your car or a truck.

What if you are not able to use any of the three exemption codes?

The alternate option if you do not want to use the above exemption codes would be to pay off the nonexempt value of the car/truck. Under certain circumstances, you can payout the fair market value of the car loan and the remaining debt shall be released, and you shall also be able to keep your car or truck. In most circumstances, bankruptcy trustee shall allow you to pay the equity and retain the car.

If you do want to get into ifs and buts and want to safeguard your car for sure, Chapter 13 bankruptcy Dallas is the best option. Since most of the debt shall be paid off in 3-5 years, the filer retains most of his/her assets, whether exempt or nonexempt. There is more authority with respect to assets when filing under Chapter 13 bankruptcy. Seeking professional assistance can help you drive the situation better, +1 888-297-6203 is your one-stop helpline.
*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.
July 18, 2019
Know More about California Bankruptcy Exemptions
Bankruptcy filers can make use of federal and state exemptions to protect their assets. However, choosing between them is confusing. Some states like California do not allow citizens to choose federal exemption but offer two different sets of exemptions to protect your property during bankruptcy, say Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. To know more about California’s bankruptcy exemptions, call 888-297-6023.

Bankruptcy exemptions in California

Amongst the two sets of exemptions provided by the state of California, System 1 is preferred by debtors with substantial home equity, while System 2 is preferred by debtors who have valuable property other than home equity. It is important to know that double exemptions are not available to married couples filing for a joint bankruptcy in California.

Objections can be raised by the bankruptcy trustee to your exemptions and you might end up losing the property if you aren’t careful. You need to list your protected assets on form Schedule C along with other official bankruptcy papers to keep your exempt property. Schedule C is reviewed by both court-appointed official and the bankruptcy trustee to ensure that the claims in the papers agree with the exemption set. In case it is not the case, an objection is filed in court with the judge deciding whether you can keep the property or not.

Trustees generally object in case a debtor is trying to fraudulently get some of their assets exempted. If a minor exemption problem is encountered, then an informal arrangement can be made to rectify it. supplying factually incorrect financial statements in a bankruptcy case can have serious implications. Bankruptcy fraud is a punishable offense with a fine of $250,000, 20 years prison term or both.

Exemption system 1 of California

The exemptions are updated every three years to factor in rising inflation. The various exemptions in this system include:
1. Homestead
Some amount of equity in your primary residence can be protected. This covers a community apartment, mobile home, stock cooperative, planned condominium or boat. The amount of equity you can cover is up to $75,000 for single and not disabled individuals; $100,000 in case of a family; $175,000 if you are 65 years or older or are physically or mentally disabled; $175,000 if creditors are forcing the sale of your home and you are either 55 or older, single and earning $25,000 per year; or are 55 or older, married and earning $35,000 per year.
1. Motor vehicle
You can protect $3,325 worth of equity in motor vehicle exemption which includes motorcycle, car, truck or any other vehicle.
1. Personal property
- Household items and personal belongings;
- The residential building material for repairing home up to $3,500;
- Jewelry and heirlooms including art up to $8,725;
- Health aids;
- Bank deposits due to Social Security payments up to $3,500 for a single payee and $5,250 for husband and wife payees;
- Bank deposits from other public benefit source up to $1,750 for an individual and $2,600 for husband and wife payees;
- Cemetery and burial plots;
- Personal injury and other claims which are essential for support.
1. Wages
- Public employee vacation credits (minimum 75% in case payments are made in installments)
- 75% of wages paid within 30 days prior to a bankruptcy
1. Pensions and retirement accounts
- IRAs and Roth IRAs limits;
- Public retirement benefits;
- Tax-exempt retirement accounts including 401(k)s, 403(b)s, SEP and SIMPLE IRAs, profit sharing and money purchase plans, etc.;
- Public employees
- County employees
- County fire fighters;
- County peace officers;
- Private retirement plans and benefits like Keogh and IRA.
1. Public benefits
- Public assistance benefits;
- Student financial aid;
- Workers’ compensation benefits;
- Relocation benefits;
- Unemployment and disability benefits;
- Union benefits as a result of labor
1. Tools of trade
Any tools which are essential for you to continue your job/livelihood are exempted up to $8,725 or up to $17,450 if both spouses, in the same profession use them. These include books, instruments, equipment, tools, materials, implements, uniforms, a commercial vehicle, and furnishings.
1. Insurance
- Unmatured life insurance policy up to $13,975 or a matured life insurance benefits of unlimited value;
- Fidelity bonds;
- Life insurance policy in case policy specifically prohibits its use to pay off creditors;
- Disability or health benefits;
- Homeowners’ insurance for 6 months after received, up to the amount of homestead exemption.
1. Miscellaneous
- Trust funds up to $1,600;
- Business or professional licenses;
- Property of business partnership.
Exemption system 2 of California

This system can be used only in bankruptcy and does not work to compensate creditors outside of bankruptcy and includes:
1. Homestead
You can have an equity of $29,275 in a personal property which can be used as a residence.
1. Motor vehicle
Up to $5,850 equity in motor vehicles is exempted.
1. Personal property
- Health aids;
- Jewelry up to $1,750;
- Burial plot up to $29,275 in place of homestead exemption;
- Wrongful death recoveries essential for support;
- Household goods, clothing, appliances, animals, books, furnishings, musical instruments, and crops up to $725 per item;
- Personal injury recoveries up to $29,275.
1. Pensions and retirement
- ERISA-qualified pension, annuities, and benefits essential for support;
- Tax-exempt retirement accounts including 401(k)s, 403(b)s, money purchase and profit-sharing plans, SEP and SIMPLE IRAs, and defined benefit plans;
- IRAs and Roth IRAs with limits.
1. Public benefits
Crime victims’ compensation, unemployment compensation, Social Security, Veterans’ benefits and public assistance.
1. Tools of trade
Any books, tools, and implements essential for a job up to $8,725.
1. Alimony and child support
The amount essential for the support of spouse and child.
1. Insurance
- Unmatured life insurance policy;
- Unmatured life insurance accumulated interests, dividends, loan, cash or surrender value up to $15,650;
- Disability benefits;
- Loss of future earnings payments essential for support.
1. Wildcard
$1,550 apart from any unused burial or homestead exemption in any property. In case no homestead exemption is used, up to $30,825.
*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.
July 18, 2019
How to protect important assets during bankruptcy?
Bankruptcy is an unfortunate financial condition and safeguarding or holding on to some near and dear assets can be a very difficult task. Chapter 7 bankruptcy code especially is not very suitable for people who want to hold on to their assets. However, with the help of exemptions, certain ordinary and modest assets can be protected and prevented from the liquidation process. These may include clothing, home, car, household stuff, tools used in the business/profession, etc. To learn more about bankruptcy codes, log on to Recovery Law Group now. The exemptions can help in protecting the assets which you might not be able to safeguard otherwise during bankruptcy. One such exemption is the wildcard exemption.

What is the Wildcard Exemption?

Wildcard exemption tries to value sentimental and emotional feelings in addition to basic necessities. The best examples could be some of your sports collections, fan collections, grandmom or ancestral property attachment like a piano or some other asset with a financial value that can be tagged with sentiments or emotions. While every state differs slightly in the type of exemptions they offer, other states might provide a choice between the federal and the local state exemptions. There is no possibility of mixing and matching what you like or do not like though.

Different type of exemptions and their thresholds

Most exemptions under Federal or state rule are targeted to specific assets. Here is a look at some federal exemptions with their threshold to better understand what assets could potentially be safeguarded-

·         A $25,150 equity in the personal residence

·         A $4,000 of equity in a motor vehicle or an automobile

·         $13,400 worth fair market value of household goods that include clothing, furnishing, appliances, etc. There is a cap of $625 per item. Which means any one item cannot exceed $625 in the cumulative of $13,400.

·         $2,525 worth tools and equipment used in business or profession.

These amounts are valid until 2022. They are bound to change every 3 years based on inflation and other factors. The state exemptions might be slightly higher or lower to the federal exemptions depending on the cost of living and inflation in the particular state. For instance, it can be high for a state like New York while it can be lower for a city like Dallas in Texas. However, by the federal standard, the bankruptcy filer can get a rough idea of which assets, he/she will be able to protect under these exemptions.

Benefits of Wildcard Exemption

The biggest benefit of wildcard exemption is that it is not been limited to any specific type of asset. The choice of property is left to the discretion of the user. The user can decide on whether to use it in his car, expensive painting, jewelry, etc. The other benefit is you can split the threshold amount to multiple assets as per your convenience. The below items can be safeguarded under wildcard exemption rule-

·         Jewelry

·         Spouse and child support

·         Automobile

·         Residential home equity

·         An ERISA verified retirement account

·         Any other justifiable non-luxury asset

What is the threshold?

Most states use the federal exemption threshold which offers an individual an exemption of $1,325. The additional unused amount of $12,575 in the federal homestead exemption can also be clubbed with the $1,325. This threshold doubles up for a married filing joint scenario. The state exemption might vary slightly from the federal exemption. You might still want to confirm the same. Look into some additional terms in the state rule book of select states for using certain exemptions like the wild card exemption. Get in touch with the best attorney in California for your bankruptcy help at 888-297-6203.
*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.
July 18, 2019