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  • What is Chapter 13 Debt Release?

    What is Chapter 13 Debt Release?

    Bankruptcy is sometimes inevitable. It is not one of the most favorable situations to be in. But it is important to make the right moves to be able to come out of bankruptcy and to evade the creditor’s torture. When thinking or learning about bankruptcy, Chapter 7 and Chapter 13 discussions are very common. Chapter 13 is a better alternative than Chapter 7 in most cases. In case you need to determine which is best for you and why; do not hesitate to log on to Recovery Law Group  to gain a deeper insight.

    What is Chapter 13 bankruptcy plan?

    The best part of the Chapter 13 payment plan is that you do not have to do away with all the assets but instead you find out the best way to payout your debts. Unlike Chapter 7 arrangement, this plan is much more reasonable and practical. Based on the debt type, you make an agreement with your lenders on a payment schedule based on your disposable income. The debt is consolidated, and a part of the debt is released once you make regular monthly payments as per the Chapter 13 payment plan for a period of 3-5 years as agreed by the lenders.

    How to make a payment plan?

    The tenure is the most important aspect of the payment plan. The tenure is decided by the court on the basis of your average income in the recent 6-9 months. The income can be from any source passive, active, consistent, inconsistent, social security or retirement benefits also. The tenure of 3 years arrives if the average income then realized, is lower than the state median. To get a fair idea of the state median, California state had a median of about $52,000 in the 2017s for an individual and about $80,000 for a family of four members. If your average income before filing bankruptcy exceeds the state median, the tenure will be for 5 years.

    The payment plan will expire before three or five years only if you clear all your outstanding dues in full. The next step is to determine your minimum due. As per the Chapter 13 bankruptcy plan, the secured debts are prioritized and need to be paid in full. Other priority debts may include alimony, taxes, child support, mortgage interest, etc. These kinds of debts shall dominate the bulk of the minimum due payments. Apart from these, certain fees like attorney, filing and percentage fee for a trustee, etc., also need to be paid out fully.

    How to calculate your disposable income?

    If your average income in the last 6-9 months is below the state median, the unsecured debts might get released completely. This will hurt your credit score but your minimum due will constitute minimum due towards the priority debts and the secured ones. There are possibilities for loan trimming even for the secured debts, especially for the high depreciating assets like an automobile or similar assets. If your average income is over the state median, the disposable income has to be directed towards the unsecured debts. The disposable income is lower of 15% of the average income or the calculated disposable income.

    The calculation of disposable income is straight forward. The state and federal standards for all basic amenities have been provided and one can deduct only the standard amount irrespective of the actual expenditure for determining disposable income. The difference between your average income and the standard deductions will give you your disposable income. For instances, in Los Angeles, the cap for transportation cost is $189, if you do not own/use your own vehicle. It is $300 as an operating cost for people using their own cars. Similarly, the standard for a mortgage in case of a family of four is around $3,000. Food, clothing and other basic need expenses are also capped to about $650 as per federal standards. These are rough monthly standards, which are not the latest but give you a rough idea of what your disposable income could be. For more information or for any calculation help do not hesitate to reach out on +1 (888) 297 6203.

    Getting your Chapter 13 payment plan approved

    The bankruptcy court has to approve the proposed payment plan. Hence, it is important to put forward a practical plan forward that caters to best self-interest as well as the interest of the lenders. If the plan is not confirmed or approved, it holds no value. The bankruptcy trustee and lenders can object or force modifications in the plan if they are not convinced or satisfied. Automobile lenders or mortgage lenders are two prominent objection parties when putting forward the payment plan in the court. The bankruptcy trustee emphasizes on following of rules and will try to divert as much funds possible to the lenders during the process. So, if your plan satisfies your automobile and mortgage lender as well as compliant with the rules, it has a very high probability of getting approved.

    How to avail Chapter 13 release of unsecured debt?

    The bankruptcy court has certain guidelines in place for releasing an unsecured debt and it is not so straightforward. You need to complete all the payments, still be current on support debts like alimony, child support, etc., and also complete a financial management course that shall help you manage finances better and not be stranded here again. Additionally, you should have also not received a discharge of your debts in the recent 2 years in order to be eligible for the release of unsecured debt. If you comply with all these, the court shall release the unsecured debts and the lenders shall no longer be able to pursue you for their debts.

    An important point however to be noted is that some debts like criminal fines, litigations, lawsuits, child support, student loan, compensation for injury or similar debts cannot be released by the bankruptcy court. These are priority debts and need to be paid off without deviation. For Chapter 13 cases, an attorney is a must and the best in business is just a call away. Dial  +1 (888) 297 6203 now for the best solution to your bankruptcy problem!


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

      *Do you own a home?

      Are you currently working?

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

    • Bankruptcy Trustee’s Role in Chapter 13

      Bankruptcy Trustee’s Role in Chapter 13

      Chapter 13 bankruptcy involves the creation of a repayment plan through which the debtor pays off some or complete amount of their dues to the creditors over a 3 to 5-year time frame. The process is overseen and administered by the bankruptcy trustee appointed to the case. According to Dallas based bankruptcy law firm Recovery Law Group, the various responsibilities of a bankruptcy trustee in Chapter 13 include:

      • Reviewing of bankruptcy papers

      Bankruptcy trustee reviews the forms filled by the debtor at the beginning of the case and verifies the information provided on the form with that on the documents provided along with including tax returns, pay slips, etc. The trustee also takes an account of your income, monthly expenses, debts, and any assets you have.

      • Conducting creditors meeting

      After a month of filing bankruptcy papers, a Chapter 13 creditors meeting takes place under the administration of bankruptcy trustee. You are expected to answer all questions, under oath, regarding the information provided by you in the documents along with your bankruptcy papers and supporting documents. The creditors can also question you in this meeting.

      • Assessment of proposed repayment plan for compliance with bankruptcy laws

      A repayment plan is devised keeping in mind your disposable income, your debts, and your assets. During this repayment plan, you are expected to make payments every month to pay off your debts. In case the trustee has an issue with the repayment plan, they can object to it. A confirmation hearing is scheduled where you can draft an opposition in support of your plan.  The trustee’s job is to ensure that the payment plan meets all requirements. The judge can then either confirm or reject the plan.

      • Collection of plan payments and their distribution among creditors

      You need to make monthly payments as per the proposed plan to the bankruptcy trustee within 30 days of filing bank papers. It is the trustee’s duty to hold the funds for the creditors. Once the plan is approved, the trustee can distribute funds to the creditors as per the terms of the plan. This continues for the entire duration of the repayment plan (3 to 5-years). The trustee also evaluates the proof of claim filed by every creditor and keeps an account of the money each creditor has received during the repayment plan.

      • Objecting to any improper claims

      Creditors wishing to get funds through Chapter 13 bankruptcy Dallas repayment plan need to file a proof of claim within 70 days of the filing date (180 days in case of government creditors). The claim states the amount due to the creditor and has documents (contract or agreement) to prove their claims. These documents are reviewed by the trustee and they may object to any improperly filed claims or those lacking proper documentation.

      In case you are confused regarding which bankruptcy chapter is best for you, contact expert bankruptcy lawyers at 888-297-6023 to discuss your case.


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

        *Do you own a home?

        Are you currently working?

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

      • What Happens to Your Car, When You File For Bankruptcy?

        What Happens to Your Car, When You File For Bankruptcy?

        If you own a car through an automobile loan and are struggling to keep up with the installment dues, you might want to know what could be in a potential scenario, if you had filed for bankruptcy. In cities like Dallas, Houston, and other cities, where public transport is not exceptional and well connected, the car is more of a necessity than a luxury. Whether it be to run around the grocery errands or to manage the daily routines of work, kid’s school or any other things. People using their own car might find it extremely difficult to sustain without it even in bankruptcy. Hence, it is a pretty obvious concern to what happens to your car in bankruptcy.

        Type of bankruptcy to decide

        Chapter 13 and Chapter 7 are two bankruptcy category that will determine if you will be able to keep your car or not. In the case of Chapter 13 bankruptcy, the payment plan shall accommodate some payments towards the car loan since it is a secured loan, the chances of retaining the car is high. On the other hand, Chapter 7 rules need the borrower to trade in all the non-exempt assets which could well include your car.

        Are there methods to keep the car when applying for Chapter 7 bankruptcy? Yes, there are, let’s learn how in the next piece.

        The car worth and affordability are two important things that can decide the car fortunes for you. If you need to keep your car, you shall file a reaffirmation treaty with your car loan lender during the bankruptcy procedure. This reaffirmation treaty is basically an agreement which prevents car loan from being released or discharged. This means you shall continue making car loan installment payments whenever they are due in spite of bankruptcy. Reaffirmation could be allowed by the court if the installment due could be proved as an ‘undue burden’ in the bankruptcy court. Ultimately, all other obligations, income, and various other factors come into play. To analyze all factors and to seek professional help in this regard, log on to Recovery Law Group right now.

        Car worth and Equity concepts

        If the liquidation is made through Chapter 7 there is a concept of equity that comes into the picture. The difference between the purchase price of the car and the remaining principal due is regarded as equity. During the liquidation process, one can use the exemption codes available in certain states like California and try retaining their assets like a car. In California, there are two exemption codes. The first one allows for a cap of $3,050 on equity as an exemption for your vehicle while the second one caps it to $5,350. Both these elections cannot be applied simultaneously and are individual section codes or systems.

        If the equity portion of your car is below the exemption codes of $5,350 or $3,050 the bankrupt trustee cannot liquidate your car for repaying debts. If you exceed the exemption amount, it is still not over. You can pay off the excess amount over the exemption to the trustee to be eligible again. The second and last option is to initiate a reaffirmation treaty which has been discussed earlier. Chapter 13 bankruptcy helps you hold on to the car until you comply with the payment plan set up by you, the court, and creditors and all other complications related to Chapter 7 bankruptcy California. For assistance from the best and experienced bankruptcy lawyers, dial in +1 888-297-6203 now!

      • Bankruptcy and Assistance of Attorneys

        Bankruptcy and Assistance of Attorneys

        Debt is never a great idea but sometimes, it becomes inevitable. When the interest mounts up with debt, there looks to be no way forward. If we consume more debt than we can repay, it becomes a crushing situation. U.S Bankruptcy code is certainly the last hope that can save your boat from drowning. This code has been set up to protect honest and hardworking people from a vicious cycle of debt. The code sets free businesses or individuals by releasing the debt/liability after educating them and by following a legal process of settling as much debt as possible. If you are unable to determine if you should file for bankruptcy or you shouldn’t, consider visiting Recovery Law Group to clarify all your questions about bankruptcy and how to make the right decision.

        Broad reasons for bankruptcy

        The reasons for bankruptcy can be many. Some are forced while others are just reckless financial management and indecision. Forced reasons could include medical costs, sudden loss of a job, pay cut, divorce, business failure, etc. While the financial reckless or indecision includes spending or buying luxury items from a credit card or pay day loans. Spending excessively or availing more loans beyond the ability to sponsor the EMI with the paycheck. Unplanned retirement can also be one of the reasons where you find out your expenses are way higher than the social security benefits and savings.

        Businesses have different sets of reasons. These can be classified into two types. Internal reasons could be equipment failure, change in management, poor planning/forecasting, inefficiency, lack of investment, etc. External reasons are usually uncontrollable reasons like fluctuation in the currency market, government policies, increased taxes, increase in competitors, etc.

        Basics of Bankruptcy Chapters

        Bankruptcy can be filed across different chapters. There are different thresholds, eligibility criterions, advantages/disadvantages of each Chapter. There is no perfect way of determining which Chapter is best as it varies on a case to case basis. For an individual Chapter 7 might be appropriate while for the other person, Chapter 13 might be a better alternative. To seek the best solution on what suits you or your business, reach out to some of the best attorneys in town at 888-297-6203 now!

        • Chapter 7
        Chapter 7 is a bankruptcy code which is available for qualifying individuals as well as businesses. This is also referred to as a liquidation Chapter because it is all about liquidating the assets to pay out the debts on the basis of priority. The court has exemptions and other regulations that allow it to classify exempt and nonexempt assets. The nonexempt assets are auctioned, sold, or disposed by the bankruptcy trustee on behalf of the creditor. The common misconception about Chapter 7 bankruptcy California code is that a business or the person might lose all assets when filing Chapter 7 bankruptcy. However, it isn’t true. Using various exemptions and other settlement alternatives, businesses or individuals can safeguard their non-luxury assets.

        • Chapter 11
        Chapter 11 is similar to Chapter 13 but is available for businesses as well. It is pre-dominantly used by corporates and businesses. But it can be used by individuals who have many complex transactions and do not qualify for Chapter 13. The fee for Chapter 11 is slightly higher and it deals with putting forward a plan to settle the debts in the near future. On the basis of the proposed plan, the debt is restructured.

        • Chapter 13
        Chapter 13 is a future-oriented payment plan that has certain debt type thresholds for eligibility. It is a plan that focuses on debt settlement based on the disposable income available for the filer in the future 3-5 years. This ideal for home mortgage bankruptcy filers and other filers who had like to retain most of their assets.
        Still confused on what you should do, which Chapter, is bankruptcy ideal for me, if yes when now or later? These are some common questions that keep revolving in a financial crisis situation. Seek professional help and let them take over all your troubles and concerns. Dial in 888-297-6203 now for the right answer!


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

          *Do you own a home?

          Are you currently working?

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

        • Which Property is Exempted in Chapter 7 Bankruptcy under California’s Bankruptcy Laws?

          Which Property is Exempted in Chapter 7 Bankruptcy under California’s Bankruptcy Laws?

          While filing for bankruptcy is one of the ways to get ahead of the huge number of dues you have, people are often confused regarding what property they can keep. Since, effectively, bankruptcy is a method to allow people struggling with debt a chance to get a fresh financial start, federal and state exemptions are available in order to protect a bankruptcy filer’s property. while most states allow people to choose between federal and state bankruptcy exemptions, Los Angeles based bankruptcy law firm Recovery Law Group inform that California does not do so. Any person who has lived in California for two years can choose from either of the 2 sets of the exemption provided by the state of California. In case, you shifted to California recently, your state of residence 180 days prior to shifting will determine which bankruptcy laws to follow.

          Consumers can file bankruptcy under either Chapter 7 or Chapter 13. Your entire property becomes part of the bankruptcy estate which is evaluated by a bankruptcy trustee. The assets are sorted (based on which exemption set you have chosen) into the exempt property and non-exempt property. your non-exempt property is used to pay off your creditors in case of Chapter 7, while your monthly repayment plan is devised using the amount of non-exempt property you have. Exemption laws are designed in a way to leave some assets with the debtor for them to make a fresh start. Any exemption in an asset is taken in terms of equity or ownership of the person. Equity is calculated as the amount to be given to the owner if the asset is sold after paying off liens.

          Bankruptcy exemption system in California

          Needless to add, bankruptcy with several laws and confusing paperwork can be quite confusing for a person already struggling with financial woes. Connecting with specialized bankruptcy lawyers at 888-297-6023 and discussing their case can make them aware of the various exemptions which can help them during bankruptcy proceedings. The state of California has to bankruptcy exemption systems. A debtor can choose either of the two depending on what assets they want to save.

          System 1 of California Bankruptcy Exemptions

          Most common system of exemption used, it is also known as “Homestead Exemption” because it protects the equity in the home. A list of assets exempted under this is provided by the California Code of Civil Procedure (C.C.P. § 704). Married couples can double some of the exemptions if they file jointly, however, there is a permissible limit to the exemption up to a dollar amount. The exemptions in this system include:

          1. Homestead:Equity in home up to $75,000 for a single person (under 65 years of age); equity in a home for a married couple of up to $100,000; and equity in a home up to $175,000 for those over 65, disabled, or low-income persons over the age of 55.
          2. Motor Vehicle:Up to $3,050 equity may be applied to motor vehicles.
          3. Insurance:Unmatured life insurance policies are totally exempt, however, the loan value of these policies is exempt only to $12,800.
          4. Health Aids:Those which are necessary for the debtor or his or her spouse or dependent to work or keep good health, including prosthetic and orthopedic appliances, are completely exempt.
          5. Building Materials or Home Maintenance:Up to $3,200 in materials that, in good faith, are about to be applied to the repair or improvement of a residence.
          6. Jewelry, Heirlooms, and Art:Up to $8,000 (even in case of joint bankruptcy).
          7. Food, Clothing, Appliances, and Furnishings:Items which are ordinarily and reasonably essential, and personally used by, the debtor or members of his or her family are exempt, however, any item having “extraordinary value,” is not exempted.
          8. Wages:Up to 75% of wages earned 30 days prior to filing for bankruptcy.
          9. Pensions:Public and private retirement accounts are exempt.
          10. Public Benefits:Unemployment and disability benefits, public assistance benefits, workers’ compensation, and student financial aid are completely exempt.
          11. Tools of Trade:Various tools, instruments, implements, materials, furnishings, uniforms, books, equipment, one commercial motor vehicle, one vessel, and other personal property used in a trade or business are exempt to $8,000. In a joint bankruptcy, if both spouses are in the same occupation, the limit is $15,975. (The commercial motor vehicle is limited to $4,850, or $9,700 if both spouses are in the same occupation.)

          System 2 of California Bankruptcy Exemptions

          For people who have less home equity, this is the better option. This exemption system is also known as “Wildcard Exemption” or “703 System” (C.C.P. § 703). With this set of exemptions, the miscellaneous property can be protected up to a specified dollar amount. This system can be used to protect property only in bankruptcy. It is also important to note that doubling is not allowed in this system. exemptions included in this case are:

          1. Homestead:The debtor’s equity in his or her residence up to $26,800.
          2. Miscellaneous Property (“Wildcard Exemption”):This exemption can be used for any property up to a limit of $1,425, plus any unused amount from the homestead exemption (for a total of $28,225 if the homestead exemption is not used at all).
          3. Motor Vehicles:Up to $5,350 total may be applied to one or more motor vehicles.
          4. Jewelry:Up to $1,600 for jewelry used primarily for personal, family, or household use.
          5. Insurance: All unmatured life insurance contract owned by the debtor is totally exempt, except for a credit life insurance contract. However, any accrued dividend or interest under, or loan value of, an unmatured life insurance contract is exempt only up to $14,325.
          6. Pensions:Tax-exempt retirement savings accounts (e.g., 401(k)s, 403(b)s) are completely exempt under federal non-bankruptcy law (i.e., notwithstanding the unavailability of federal bankruptcy exemptions in California); IRAs and Roth IRAs are exempt under federal non-bankruptcy law up to $1,283,025.
          7. Public Benefits:Disability and unemployment benefits, veterans’ benefits, workers’ compensation, aid to elderly or disabled, and crime victims’ reparations are totally exempt.
          8. Tools of Trade:Implements, professional books, or tools of the trade are exempt up to $8,000.

          To a layman, there might not be much difference in the two exemption sets, however, a skilled bankruptcy lawyer California can suggest which one is going to help save most of your assets when you file for bankruptcy.


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

            *Do you own a home?

            Are you currently working?

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

          • What Happens to Personal Injury Award in Case of Bankruptcy?

            What Happens to Personal Injury Award in Case of Bankruptcy?

            An injury sustained due to negligence or accident can cause immense trouble for people. They are often struggling financially due to overwhelming medical debts and are often accompanied by long durations of being out of work and in severe pain. Many of such people, with the help of excellent personal injury attorneys, sue the negligent party for a personal injury award. However, if the same person is struggling financially and is contemplating filing for bankruptcy, one of the major concerns they have is; what happens to their personal injury award in such a situation? Do they get to keep the entire personal injury claim or a part of the award?

            Different consumer bankruptcy types and their effect on monetary damages obtained through personal injury claims

            If you are struggling with finding the best possible recourse to take care of your debts, call 888-297-6023 to ask counsel from expert bankruptcy lawyers. According to Los Angeles based bankruptcy lawyers Recovery Law Group consumers can file for bankruptcy under two chapters; Chapter 7 (liquidation bankruptcy) and Chapter 13 (wage earner’s plan). Both chapters have different requirements, procedures to deal with your debts and ways of handling personal injury claims.

            Chapter 7 bankruptcy

            In this case, any unsecured debts of the debtor like credit card bills, medical bills, personal loan, etc. can be discharged by the bankruptcy court; while any non-exempt assets the debtor has, are sold to pay off secured creditors. Since in this type of consumer bankruptcy, the court allows discharge of most unsecured debts, the debtor needs to claim an exemption to keep the property. The personal injury award becomes a part of the bankruptcy estate while the case is pending.

            The California Code of Civil Procedure offers two basic provisions for exemption of personal injury damage. As per Section 704.140, the wide-ranging exemption is provided, showing that the personal injury award is essential for the support of the judgment debtor as well as their spouse and dependents. Section 704.150 provides an exemption in case of wrongful death claim award. Section 703.140(b)(11) on the other hand provides an exemption of wrongful death awards deemed necessary to support survivor’s dependents and personal injury award up to $24,060. Since both schemes have their own benefit, it is important for a bankruptcy filer to choose wisely (section 703 or 704).

            Chapter 13 bankruptcy

            In this type of bankruptcy, the court reorganizes the debt obligations of the bankruptcy filer; some debts are paid back, some are reduced in amount while some others are discharged. In this case, the debtor is paying a certain amount of the debts back as per the court-approved repayment plan. Thus, they are entitled to keep some or all payment they receive from a personal injury claim. However, the amount they can keep for themselves depends on a few issues including what is to be paid to unsecured creditors.

            Many times, debtors might choose to exempt their award, depending on their situation. Since laws are often complicated, it is important to hire the best legal minds to take care of issues like bankruptcy and personal injury claims. While the expertise of a personal injury lawyer lies in trying to get the best compensation for your injuries, a bankruptcy lawyer California can help save as many of your assets as possible. It is important for a person who is undergoing both issues simultaneously, to have the best legal counsel for both matters. The bankruptcy lawyer and personal injury lawyer can work in tandem so that their client gets and retains most part of the personal injury award during their bankruptcy.


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

              *Do you own a home?

              Are you currently working?

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

            • What are the key benefits of Chapter 7 bankruptcy election?

              What are the key benefits of Chapter 7 bankruptcy election?

              Chapter 7 Bankruptcy California is also referred to as Straight Bankruptcy, because it is pretty straight forward, and it ends soon too. While the other alternative Chapter 13 might just keep going for months and months even after applying for bankruptcy. If you are eligible for Chapter 7, it is the best option. Why do experts say so, what are the key benefits? All these questions will be addressed below-

              • Release all/most of the unsecured debts

              Chapter 7 categorized the debts into two categories. This happens under the Chapter 13 code also, but the debts released is pretty less significant compared to Chapter 7. The importance of releasing unsecured debts comes to the scene when the vicious cycle of high-interest rate and ever so slowly growing income can never be bridged. Since the unsecured debts carry the highest interest rates with them, it is unlikely one will ever be able to repay the loan especially when they are considering bankruptcy. Release of such unsecured debt which may be payday loans, credit card bills, etc., give a fresh outlook and decrease debt to income ratio significantly. The credit score is impacted but at the same time, it is a notification to the lenders for a fresh start. If you need help in analyzing ways to release most unsecured debts or credit score planning, Recovery Law Group is the website you should be checking out now.

              • Preventing the lender’s from taking some serious action

              Filing bankruptcy can prevent lenders, creditors and other companies/individuals with dues for action against the debtor. By filing for bankruptcy under Chapter 7 in the bankruptcy court, the filer activates a shield which protects him/her from any serious action undertaken by the lenders. This phenomenon is referred to as ‘automatic stay’ in law terms. As per law, collection phone calls, collection threats, wage garnishments, asset attachment, etc., are put on hold until and unless the court has concluded. Even though the ‘automatic stay’ shield is temporary and might last until the creditors propose to the court that they try and get their dues to the earliest, it offers a considerable amount of time to make certain things in favor of yourself.

              • Love your car, keep your car

              Car is a necessity and not a luxury in most cities of the United States. Most of you shall agree with the fact no matter how good the public transport of the city is, surviving without a car in the United States can be extremely difficult. The biggest nightmare of Chapter 7 bankruptcy is to lose your car. However, there are several ways of securing your assets which can also be your car. The car can be relieved by you at the current market price. This can be done under the 722 Redemption rule, which is very helpful under heavily depreciating assets like an automobile. The payment for the current market value has to be outright though. This can be better understood by an example. Say Matt had bought a car for $10,000. The present market value of the car is $4,000. Matt can get rid of the $10,000 loan by paying off $4,000 to the auto loan company/person.

              Additionally, there are specific lenders who offer credit under the 722 Redemption rule with the car as the security to pay cash up front if you do not have so much cash outright immediately. If you would not like to keep the car, you can surrender the same and get rid of your auto loan obligations for sure and might be some other secured/unsecured loans too.

              • Managing your realty assets

              Just like a car, real estate in the United States is also categorized under depreciating asset. It might be a booming investment in developing countries but after the 2008 recession and home mortgage scam, real estate in the United States is a depreciating asset. Selling homes and acquiring homes both are a tedious task. Surrendering your home in case of bankruptcy is a good option to get rid of the home mortgage. In case of surrender, it is a good option to follow-up with your lender to close the transaction and initiate a title transfer to the earliest. This is important as there might be some dues like Real Estate taxes, HOA, etc., that may need to still be borne by you even after surrender as the lender was not able to transfer the property due to various reasons. Until the foreclosure has been done and the asset has been transferred, you still remain the on-paper owner of the property and are liable for those expenses.

              The above listed 4 benefits are strong benefits to consider Chapter 7 bankruptcy California. Financial mismanagement and indecision are a part of life, but it is important to capitalize from the fresh start you can avail from Chapter 7 bankruptcy. To clarify and address all your questions on the benefits and to know more about bankruptcy reach out to +1 888-297-6203 right now!

            • Utility Bills and Bankruptcy

              Utility Bills and Bankruptcy

              Sometimes, there are things more important than your favorite car or even a farmhouse during a bankruptcy that you may have to worry about. Not having electricity for heater or air conditioner during winter or summer can be a more serious issue. Most bankruptcy solutions do not address how to tackle the basic utility expenses. Under the bankruptcy law, utilities are also regarded as a priority and are monitored or addressed very cautiously. There is very little time to delay or postpone the dues due to utilities. Not having water or electricity can certainly be life-threatening. The average time to pay out water or electricity is about 19-20 days once it is due. If the payment is not cleared in 19 days, a notice is issued to the individual with a maximum extension of 15 days before the supplies are cut.

              It is not an easy process to re-establish the water or electricity supply or any other basic utility supply once it has been cut due to non-payment of dues. The service providers may levy a hefty penalty and might also require a security deposit before restoring the services. The penalty or fee charged for restoring the service is also described as reinstatement fee. These fines and deposits could prove very expensive especially when you are bankrupt. Utilities are something which is not optional but is basic.

              How to prevent termination of utilities?

              If you can pay your utility bills as the first priority as and when it is generated, that could be the best alternative. If not, you need to make immediate requests and arrangements with your service provider in order to retain your utilities. Most service providers based on goodwill and some other considerations can offer an extra grace period if the provider is kept regularly informed about the delay and estimate due to clearing status. If the financial crunch seems to last longer and if you think you might not be able to pay the utility bill, you must immediately try and sort a payment plan with the service provider. Some providers offer amortization plans and flexible payout only when the financial crunch is communicated well in advance to the provider.

              If you do not connect with your provider and your services get disconnected, the consequences could be costly, time-consuming and tedious. You would not like to be experiencing the same. Certain states like California offer some assistance programs for people based on their income level to subsidize or support the utility payments. California Alternate Rates for Energy is one such program that provides a substantial discount of up to 20% on natural gas, water, and electricity bills. You might want to check all info about the programs in every city may be Dallas, San Antonio, Los Angeles or elsewhere. Log on to Recovery Law Group to know more about the programs and your rights.

              Declaring bankruptcy shields your utility services

              The bankruptcy laws help to prevent utility companies in disconnecting your utility services. To avail automatic stay with respect to utility bill liabilities, one has to apply for bankruptcy before the services have been disconnected. No matter, if the dues are not paid for a considerable amount of time and you have received threats for connection cuts until your connection has been cut, you are eligible for the automatic stay protection that keeps even the utility companies in the bay from the collection and supply disconnection threats. However, no matter if being an individual you file bankruptcy through Chapter 7 or Chapter 13, you need to assure the utility companies for payment of dues in not more than 20 days. This tenure is 30 days for businesses who could file bankruptcy under Chapter 11.

              The utility companies might need assurance to grant you the 20-day or 30-day extension after you file bankruptcy. The request might be only if you are looking to release/discharge your utility bill payments or have defaulted more than one recent due. If you are current with your utility payments and are not looking to release the utility payments as forgiven debts, there usually isn’t any objection from the utility companies. When you are making attempts and have the intent to pay off the utility debts, there usually is no problem.

              Make a wise call at the right time

              With respect to utility bills, you just cannot be on the wrong foot. Communication with your water, heat, power suppliers is so very essential. Keeping up with the utility bill payments is also so very important. If you are in a hard situation and do not know how to manage bankruptcy, utility bill payment dues, and other aspects, solution/help is just a call away 888-297-6203.


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

                *Do you own a home?

                Are you currently working?

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

              • Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

                Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

                One of the major benefits of filing for bankruptcy is the automatic stay. From the date of the bankruptcy filing, an automatic stay is enforced which puts a hold on all collection actions including threatening phone calls and messages, repossession, and foreclosure. This has to be abided by all parties concerned and failure to do so can result in a legal battle as was seen in case of Caridad Hileman. The California resident filed for Chapter 13 bankruptcy but her case was dismissed. She didn’t want to lose her house to foreclosure, hence she filed again after a few months.

                Since Caridad filed for bankruptcy a second time within a year, the automatic stay could last only for 30 days, as per 11 U.S.C. § 362(c)(3). The automatic stay can be extended but she was a day late to file for an extension and thus the automatic stay expired. Despite everything, Caridad continued making payments for her home till the bankruptcy plan was officially confirmed where a major part was made up for mortgage payments.

                She was supposed to pay court-mandated payments for the entire duration of her bankruptcy and continue making payments till she cleared the dues. Since she didn’t want her bankruptcy case to be dismissed again, Caridad continued making payments, but was shocked to find that the bank refused payments just one month after confirmation of her repayment plan! Despite the court’s confirmation of the Chapter 13 plan, the bank proceeded with foreclosure. Despite Caridad making payments, the bank argued that since automatic stay had expired, they have the rights to foreclose.

                Can lawyers help in such cases?

                Forced with no other choice, Caridad filed a petition in the court against the bank. The court ruled in her favor as a confirmed plan is binding to both the debtor and the creditor. Just like debtor cannot refuse to make payments as per the repayment plan, the creditors also cannot foreclose or repossess the property. The creditors can object or reject a repayment plan while it is under consideration by the court. However, once it is confirmed, they have to abide by it, even if it is done despite their objections. Since the bank had not filed any objection against the plan and also not appealed to it, they were bound by the plan and had to continue accepting the mortgage payments as well as abandon foreclosure proceedings.

                According to Los Angeles based bankruptcy law firm Recovery Law Group, foreclosure can only take place if the bankruptcy case is dismissed. This takes place if the debtor has defaulted on making payments. In case of extension motion was filed on time by Caridad, she would not have to have to fight the case against the bank in court. Following the plan is extremely essential if you wish to protect your assets from repossession or foreclosure. In case you are facing problems managing your finances and find dues accumulating, it is time to consult a bankruptcy attorney. Call 888-297-6023 to have a free consultation regarding your case.


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

                  *Do you own a home?

                  Are you currently working?

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

                • Bankruptcy Law For Fisherman and Farmers

                  Bankruptcy Law For Fisherman and Farmers

                  Famers and fisherman hold an important place in the economy of the USA, still, there was no permanent law for them to declare bankruptcy. Of late, Chapter 12 is introduced for family farmers and family fisherman, who may want to seek bankruptcy law. To know about other Chapters and bankruptcy in the whole log on to Recovery Law Group.

                  A brief history of Chapter 12

                  Chapter 12 was introduced by Congress to help farmers and fisherman who were struggling with debts during the emergency in 1986. However, it was a temporary structure that became permanent only in 2005. This law is not so popular and is scarcely employed by people.  The lack of popularity is both due to ignorance and rigid eligibility criteria. That’s why in comparison to Chapter 13’s 1.4 million reported cases in 2011, there is only 637 case reported for chapter 12.

                  What is the basic eligibility for Chapter 12 Bankruptcy?

                  A person-single or married; corporations or partnership’s that have stable, regular annual income are eligible for filing under Chapter 12 bankruptcy law. The debtor must satisfy the following parameters.

                  • The debtor must be involved in farming or fishing occupation and must obtain 50% of the gross revenue from it.
                  • The total debt for the farmers and fisherman must not surpass $4,153,150 and $1,924,550 limit respectively.
                  • The debt should be because of the farming and fishing occupation and not for personal usages, like house mortgage, etc. 50% of the loan amount must be due to the farming occupation, and in case of the fishing business, 80% of loan must be due to the fishing

                  In the case of corporates and partnership, the family must singularly own more than 50% of the equity or stock interests, then only its eligible to file bankruptcy under Chapter 12.

                  Chapter 12

                  The farmers or fisherman can file under chapter 12 when they are not able to pay their loans and are looking for some relief from the debt. The government appoints a bankruptcy trustee who examines the case and reports to the court. The trustee examines the documents, monitors the debtor’s business operations and investigates means and ways to strategize a plan for the repayment.

                  The payment process in Chapter 12 works like chapter 13. Apart from unusual circumstances, the debtor is allowed a time frame of 90 days from the day of filing to table his repayment plan. The payment plan must be completed within 3 to 5 years. Basically, the loan repayment time frame is 3 years, which can only extend to 5 years if the client is bounded to family obligations like alimony or child support.

                  Approval of Chapter 12 by the court

                  Once the petition is filed by the client for acquiring Chapter 12, the court appoints a trustee to analyze the client’s financial status. Based on the report of the trustee the court grants confirmation to the client. The confirmation verdict comes within 45 days of filing the case.

                  Pointers of Chapter 12 plan

                  1. Execution of payment plan

                  The client must commit all his disposable income to the trustee. The term ‘disposable income’ in Chapter 12 denotes to the balance amount achieved after deducting the revenue acquired by the client’s fishing or farming occupation, to the sum required to manage business and family expenditures. Once a sum is achieved as disposable income, the trustee employs it to disburse the loan, as per the payment plan.  After extracting its fee, the trustee, distributes the remaining disposable income to the creditors.

                  1. Cramming down of secure loans

                  The debtor has some secured loans to be cleared. After filing the case under Chapter 12, the debtor can cram down his secure loans. The word ‘cram down’ means the debtor can reduce or lower his secured debt on mortgaged articles as per the market value. The debtor must only pay the market value of the collateral pledged article. Any amount excess than that is treated as unsecured loans, which under Chapter 12 the client gets the benefit of paying little or no amount against it. The debtor can take the liberty of stretching the time beyond the term plan to pay his secure loans.  The interest in the secure loan is also settled as per the ongoing market rate.

                  1. Discharge of loans

                  Although the court must investigate the best interest of creditors, it cannot do much for unsecured loan creditors. The case can be treated similarly as the Chapter 7 bankruptcy case of clearing the debt by selling liquid assets. However, any loan amount above that is discharged. Hence the creditors must be satisfied with meager or no payment at all in some cases. The debtor’s unsecured loans can be discharged by the court depending upon their financial situation.

                  Wrapping the case

                  Once the judgment is passed the case remains open till the debtor completes his payment to the Chapter 12 trustee. The debtor acquires a discharge, and the case is wrapped up once all the payment procedure is complete.  The discharge releases accountability of debtor towards any obligations, even those that may not be within the Chapter 12 plan. However, some obligations like alimony and child support, are non-dischargeable, which the debtor cannot steer clear of. The court can dismiss the case if it does not find strong evidence. The filer can also dismiss the case or file his case under Chapter 7 bankruptcy California. For sound advice on bankruptcy and right solutions for your circumstances contact 888-297-6203 right now.


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

                    *Do you own a home?

                    Are you currently working?

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