Get Foreclosure Help

Author: admin

  • Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

    Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

    Most people survive by using credit cards. Unfortunately, credit cards charge up very high-interest rate somewhere nearly 25%. Ultimately you end up paying much more than your debt. In the long run, you end up in debt for a long period of time. Let’s say you owe $20,000 on your credit card bill. You will continue making a minimum payment over a 20-year period and end up paying nearly 5 times more than what you actually borrowed. With a monthly payment of $400, you will be able to clear your debt in 23 years! You also end up paying nearly $100,000 as interest on a $20,000 loan. Even if you increase the payment you still end up paying a lot of interest. Even if you double your payment to $800 you end up paying $8000 as interest over the same principal amount. Considering that this is a lot of money, most people are looking for better options to pay off their debts.

    Despite increasing your monthly payment, you still end up paying a lot of interest on your credit card debts. Dallas based bankruptcy law firm Recovery Law Group lawyers suggest filing for bankruptcy under Chapter 13 as a viable option. Bankruptcy seems a good solution. Filing for chapter 13 results in the creation of a repayment plan, in which, you will make monthly payments to your bankruptcy trustee who would distribute it amongst your creditors in a pre-determined share. The payments continue to be made over a period of 3-5 years. After the end of your repayment plan, any unsecured debts such as credit card debts, personal loans, and medical bills are discharged.

    During chapter 13 bankruptcy, for a debt of $20,000, your monthly payments come to $425. Thus, you end up paying a nominal amount of money ($25,500) towards your credit card debts over a 5-year period and end up saving nearly 15 years of your life. Though monthly payments do not go down, you end up saving nearly $85,000! Chapter 13 also helps for other loans like those for home or car. However, since filing for bankruptcy is a matter of grave concern it is important to consult an expert bankruptcy attorney before making any decision. In case you are looking for a bankruptcy attorney to consult for your case, call 888-297-6023.


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

      *Do you own a home?

      Are you currently working?

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

    • Can Bankruptcy Affect 401(K) and Retirement Accounts?

      Can Bankruptcy Affect 401(K) and Retirement Accounts?

      Bankruptcy has been designed in a way to help people recover from bad financial conditions. Consumers can file for bankruptcy under chapter 7 or chapter 13. In either case, they get to keep their retirement funds. The state, as well as the federal government, has exemption laws that prevent an individua’s property against creditors and bankruptcy trustee. The retirement accounts are part of the exemptions provided by the government. These include:

      • 401(k)s
      • 403(b)s
      • Profit Sharing Plans
      • Defined-Benefit Plans
      • Money Purchase Plans
      • Traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs
      • Keoghs

      In short, all funds in retirement accounts are protected with a few exceptions, like, an IRA account is exempted up to $1,245,475 per person. Bankruptcy lawyers of Dallas based firm (https://bankruptcy.staging.recoverylawgroup.com/) inform that during your bankruptcy you should not make these mistakes –

      1. Don’t take money out of your retirement account. Taking money out of your retirement account essentially converts it from an exempt property into a non-exempt property. The money is no longer protected and is treated like regular cash, which can be collected by creditors.
      2. Don’t use money from your retirement account to pay debts. Many people think that using a 401(k) to pay their debts can help avoid bankruptcy. However, after filing for bankruptcy, take get to know that they could have saved their retirement fund and emerged from bankruptcy intact.
      3. Don’t deposit money from other accounts into your retirement account. Trying to convert your non-exempt assets into exempt assets is not look kindly during bankruptcy. Moving of funds from other accounts into your retirement account can be conceived as a fraud. In case this happens, your retirement account could lose the exempted status. you might even end up losing your 401(k) during bankruptcy.

      Excluded Retirement Plans

      Apart from the exempted retirement plans, there are some which are “excluded” in bankruptcy, i.e. they do not form a part of the bankruptcy estate. Almost all pension and 401K savings plans, which are qualified under ERISA, the federal savings act, are excluded from the bankruptcy estate. However, as always, there are exceptions to the rule. Retirement plans with the only single participant (single employee corporate plans) and plans originating in self-employment may become part of the bankruptcy estate unless subjected to an exemption. Creditors can stake claim to those funds unless efforts are made to protect them. The list of excluded retirement accounts includes:

      • Educational Individual Retirement Accounts (IRA) under IRC 530(1)(b)
      • Pension and Retirement Plans that are qualified under the Employee Retirement Income Security Act (ERISA)
      • IRC 414(d) Government Retirement Plans
      • IRC 567 Deferred Compensation Plans
      • IRC 403(b) Tax Deferred Annuity Plans

      However, their excluded status might have some limitations. Consulting with a bankruptcy attorney is recommended for a clearer picture.

      You must list your retirement accounts on the bankruptcy schedule (though you can keep the money in those accounts). Bankruptcy schedules provide your financial information to the court. In case you are having trouble with your finances and are thinking of filing for bankruptcy, call 888-297-6023 to discuss your case with expert bankruptcy lawyers. They can guide you on how to protect your retirement accounts in case of bankruptcy.


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

        *Do you own a home?

        Are you currently working?

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

      • Can Bankruptcy Discharge be Denied in California?

        Can Bankruptcy Discharge be Denied in California?

        Bankruptcy is designed to help people get financial relief from debts. Consumer bankruptcy results in a discharge wherein a federal court order eliminates debts and wipes the slate clean of the bankruptcy filer. Though used effectively by numerous people every year, Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, clarify that discharge can be denied to people if there has been any incidence of fraud or mismanagement of property. Any attempt to hide or transfer property to defraud your creditors is not looked upon kindly by the courts and your bankruptcy discharge can be denied on this basis.

        What can cause your bankruptcy discharge to be denied?

        While filing for bankruptcy, it is important that you hire a competent attorney. Though people can file without an attorney too (pro se) but there are a lot of procedures to be followed and paperwork to be handled and doing it all alone can often result in a mistake which might prove costly! There are a number of reasons why a bankruptcy case is dismissed and discharge denied.

        Here’s what you should avoid during your bankruptcy filing:

        1. Hiding assets– Many people, in a bid to protect their assets, transfer the same to their family members or friends. Such a practice is considered dishonest by the court. In an instance, a couple transferred the title of their home 7 years prior to bankruptcy filing to avoid paying creditors of a debt from a personal injury lawsuit. Since they tried concealing assets in order to defraud creditors, the bankruptcy was dismissed.
        2. Doctoring financial records –Your financial records should be in order when you file for bankruptcy. Destroying or trying to hide financial records is not looked upon kindly by the court. Your debts and assets should be clearly available for the bankruptcy trustee to make an accurate judgment of your ability to clear your debts.
        3. Making false claims– Any misrepresenting of facts including making false claims during your bankruptcy case is the reason for discharge to be denied. Declaring your assets is important for clarity. In case you are unaware of some documents or are unclear about any misrepresentation, it is important that you discuss the issue with your attorney to avoid any problems later on during your bankruptcy case. Lying in paperwork can have ramifications so avoid making any mistakes.
        4. Failure to complete a mandatory financial management course–Financial management course is a mandatory requirement prior to a bankruptcy You need to enroll in the course and complete it. Failure to do so is a confirmed way to get your bankruptcy case dismissed.
        5. Not obeying court orders– Certain requirements are specified by the court which needs to be compiled by the bankruptcy filer. Failure to complying with court-mandated order (providing previous tax refunds) can result in your discharge to be denied.
        6. Filing for bankruptcy again before the specified time has passed – In case you have gone through bankruptcy previously, you have to wait before filing for another discharge. If you have received a Chapter 7 discharge previously (within past 8 years) or you received a Chapter 13 discharge (within past 6 years) then you cannot be allowed a discharge before 8 years or 6 years respectively have passed.

        From the above factors, it is clear that you need to be completely honest while filing for bankruptcy papers and keep everything organized if you wish to get a discharge for your bankruptcy case. Following the court orders is extremely important. Since every bankruptcy is different it is important to consult a bankruptcy attorney for your case. You can seek to consult at 888-297-6203 regarding your financial situation and which bankruptcy would suit you.


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

          *Do you own a home?

          Are you currently working?

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

        • Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

          Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

          Bankruptcy is confusing and terrifying to most common people. Though there are benefits associated with it like automatic stay and discharge of unsecured debts at the end of the bankruptcy, sometimes, a bankruptcy case might be ‘hijacked’ by another debtor who wishes to take advantage of your bankruptcy case and the subsequent automatic stay. Automatic stay helps in putting arrest to all collection actions by creditors including repossession, foreclosure, threatening emails, phone calls, etc. However, Los Angeles bankruptcy lawyers https://bankruptcy.staging.recoverylawgroup.com/ inform, creditors may request a relief from the automatic stay clause. This happens in case debtor “participated in a scheme to delay, hinder, or defraud creditors.” When such a case happens, the debtor is often caught unaware and generally clueless about their options.

          What is property dumping?

          Many people are unaware that any such term exists. Some people piggyback a ride on others’ bankruptcy cases, availing the benefit of the automatic stay to protect their property. This happened with Dana when she filed for bankruptcy. A local bank filed for a motion alleging that she had defrauded and failed to declare her assets and hide them so that the bank couldn’t make collections on a house in Ventura County. Unfortunately for Dana, that house didn’t belong to her and neither did she have any knowledge of the occupants. But her bankruptcy case was about to be dismissed because of some property whose existence was completely unknown to her.

          The original owner of the property in concern here was another California resident, Angelica who was nearly $40,000 delinquent on her mortgage. She used to check public bankruptcy records to find a person who had recently filed for bankruptcy. She would then record a property transfer deed transferring her house to a bankruptcy filer. The automatic stay benefit accorded to her victim will prevent creditors from foreclosing on her home and protect it. By the time the banks asked for lifting the automatic stay, Angelica made another phony transfer of property to some other person.

          Often there is no prior connection between the victims of property dumping and the perpetrator. In the above-mentioned case, Angelica used to doctor the records in such a manner that the transfer of the house appeared to occur prior to a bankruptcy filing. The process granted her house the benefit of automatic stay till banks filed for relief and the process would be repeated. In Dana’s case, since she was not the owner of the property neither had any idea about it, she did not object for any relief from the stay. The records mentioned Angelica as the owner of the property and her property dumping or hijacking plan was highlighted. Hiring an experienced attorney worked well for Dana’s case. It always makes sense to hire experienced attorneys for bankruptcy cases as the issue is quite complex without any frauds happening. In case you are looking for a consult for your bankruptcy case, call 888-297-6023 to speak with expert bankruptcy lawyers.


            *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 Characteristics and Counter Approach

            Bankruptcy Trustee Characteristics and Counter Approach

            Bankruptcy trustee plays a crucial role by representing the debtor’s case in court. A bankruptcy trustee is delegated by the United States Trustee to closely examine the case to bring forth hidden assets of the debtor. The trustee investigates the debtor’s assets, funds and other resources that can be utilized to pay the creditor.

            In short, it is a government body that mediates between the debtor and the creditor to obtain the best results for both creditor and debtor.

            How can the debtor make his case strong?

            The debtor must abide by and cooperate with the Bankruptcy trustee to make his case under Chapter 7. The debtor’s case is first represented under Chapter 13, wherein he needs to pay the creditor in installments. The case can swing to Chapter 7 once the court finds debtor unable to pay his creditors. It is here that the Bankruptcy trustee makes their presence. They analyze the wealth of the debtor and finds means to pay the creditor. If they find enough funds, they can swing back the case to Chapter 13.

            The debtor must go with the bankruptcy trustee and satisfy all their queries. The debtor needs to submit details of his latest income tax returns, within the first week of their meeting. With the tax report, the bankruptcy trustee can get the detail of the debtor’s present financial situation. If the debtor is not able to submit his tax returns within a week and is trying to hedge; the trustee can take stringent action against the debtor. The trustee can dismiss the case under Chapter 7 and move the case to Chapter 13 bankruptcy.

            Importance of tax return

            Not presenting the tax return documents puts the debtor in a bad light, showing ignorance and negligence on part of the debtor. The USA government is very particular about maintaining tax files and an unorganized and poor presentation or failing to produce any tax documents can put the debtor in the spot. The debtor’s case can be dismissed altogether. It is best to consult professionals and represent your case rightly to get the best result. You can connect with https://bankruptcy.staging.recoverylawgroup.com/ to procure favorable result.

            Filing your case second time under Chapter 7

            The debtor’s case can be rejected by the trustee for not being satisfied by the documents and collaboration with the debtor. However, once rejected the debtor can file their case again. This will not be easy, and the case will be scrutinized thoroughly. The proceedings will attract fees and will have a time frame of 30 days only. The case must be wrapped within 30 days. The debtor can make his case strong the second time by convincing the court that he is genuine and is filing because he didn’t get justice, he deserved the first time. It is easy for the court to dismiss your case the second time on accord of misuse of law for your benefit.

            Best approach

            Why go for a hassle second time when you can get the best in the first time. A little negligence can prove to be an expensive affair. In the first time, you are getting the benefit of presenting your case in the best manner. You need to cooperate with the Bankruptcy trustee and present your documents tax return papers on time. The bankruptcy trustee is very cooperative and offers the debtor enough time to present his documents. The debtor who cooperated got past the case with their assets consolidated.

            However, if the debtor tries to hedge or shows negligence, the bankruptcy trustee warns and dismisses the case. The benefit of filing the case the first time is, the debtor must not pay the fees of court proceedings and the case may likely fall in his side if of course he is honest. The debtor can call and consult on this number (888-297-6203) for any advice and consultation.


              *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 Basics of Chapter 9

              Bankruptcy Basics of Chapter 9

              The bad financial situation can affect not just individuals but also organizations (both government and private). However, the rules for getting a fresh start differ slightly in both cases. While consumers can opt for Chapter 7 or Chapter 13 bankruptcy to get their debts discharged, Chapter 9 bankruptcy helps municipalities (cities, towns, villages, counties, taxing districts, municipal utilities, and school districts) reorganize their debts. This bankruptcy chapter helps protect debt-ridden municipalities from creditors, while a reorganization plan is being developed for adjusting their debts. Reorganization mainly takes place by extension of debt maturities, reduction of the principal or interest amount or by getting the debt refinanced by taking out a new loan.

              Though it may seem similar to other bankruptcy chapters, lawyers of Dallas based bankruptcy firm Recovery Law group  elaborate that it is significantly different as no liquidation of assets takes place to pay off creditors in this case. Even the bankruptcy court plays a limited role in chapter 9 cases. Its role is restricted to:

               Approval of petition (in case the debtor is eligible);
               Confirmation of the debt adjustment plan;
               Ensuring that the plan is implemented
              Eligibility for Chapter 9 bankruptcy

              A municipality is defined as a “public agency, political subdivision, or instrument of a State.” This includes school districts, townships, counties, and even cities, apart from revenue-generating bodies like highway authorities, bridge authorities and gas authorities. Since only a “municipality” can file under Chapter 9 from financial relief, it is important that they consult the opinion of expert bankruptcy lawyers by calling 888-297-6023 to discuss particulars of their case. The additional eligibility requirements for a Chapter 9 bankruptcy case include:

              1. The municipality must be specifically authorized to be a debtor by either a State law or a government officer or organization empowered by State law’
              2. The municipality must be insolvent;
              3. A municipality must desire to plan to adjust its debts;
              4. The municipality must either:

              a. Obtain creditors’ agreement holding at least a majority in number of claims of each class that the debtor intends to impair under a plan under chapter 9;
              b. Negotiates in good faith with creditors and fails to obtain the agreement of creditors holding at least a majority in number of claims of each class which debtor intends to impair under the plan;
              c. Be unable to negotiate with creditors as such negotiation is not practical; or
              d. Believe reasonably that a creditor might get a preference.

              What happens during Chapter 9 bankruptcy?

              Municipalities need to seek protection under Chapter 9 of the Bankruptcy Code. They also need to file a list of creditors. Though the debtor should provide the creditors’ list at the time of filing, in this case, bankruptcy court allows the option to provide it at a different time. The case is not assigned automatically to any judge to avoid any political interference in the case of Chapter 9 bankruptcy. A notice of commencement of the case and the order for relief is essential. This notice is published at least once a week for three consecutive weeks in a newspaper having general circulation in the district where the case begins as well as in other newspapers which are generally used by bond dealers and bondholders. The newspapers in which notice and additional notice is published and who gives or receives notice by mail is a prerogative of the court.

              The bankruptcy court also allows objections to the petition including –
               Whether negotiations were conducted in good faith,
               Whether the state has authorized a municipality to file,
               Whether the petition is filed in good faith.

              In case an objection is filed against the petition, a hearing on the objection is held by the court. In case the petition is not filed in good faith or does not meet the requirements of Chapter 9, it can be dismissed by the court. If the petition is not dismissed on any objections, Bankruptcy Court needs to order relief and allows the case to proceed under Chapter 9.
              Just like other bankruptcy cases, an automatic stay is applicable in this case too. In fact, additional automatic stay provisions prohibit any action taken against officers and inhabitants of the debtor if they seek to enforce a claim against the debtor. The stay refrains a creditor from bringing a mandamus action against any officer of the municipality; against an inhabitant of the debtor to enforce a lien on or arising out of taxes owed to the debtor.

              A proof of claim or interest needs to be filed within the stipulated time frame. It is considered filed in case of Chapter 9 if it appears on the list of creditors filed by the debtor. In case it appears disputed, contingent, or unliquidated, then a creditor needs to file a proof of claim. The court, according to Bankruptcy Code Sections 903 and 904, the court has limited power over operations of the debtor. It cannot interfere with political powers, property or revenues of the debtor as well as the debtor’s use of its property and revenues.
              The role of the trustee is limited. They do not preside over a meeting of creditors (it is not held), cannot convert the case, do not supervise the administration of the case, and do not monitor financial operations of the debtor too. The role of creditors is also limited in this case, since there is no meeting of creditors. They can, however, choose and authorize attorneys and accountants to represent the committee, consult with debtors regarding the administration of the case, investigate the conduct, asset, liabilities and financial condition of the debtor and formulate a plan for the cumulative interest of all creditors.

              Discharge in chapter 9
              A plan for adjustment of debts must be filed by the municipality to adjust their debts. The plan is confirmed if it meets the statutory requirements. A discharge is available for municipal debtor on confirmation of debt adjustment plan; a deposit made by the debtor is distributed as per the plan by disbursing agent appointed by court and determination by the court that securities deposited constitute valid legal obligations of the debtor. Exceptions to the case also exist for –
               Any debt excepted from discharge by plan or order confirming the plan;
               Any debt owed to an entity before confirmation of the plan, who had no notice or knowledge of the case.

            • Bankruptcy Basics of Chapter 7

              Bankruptcy Basics of Chapter 7

              Bankruptcy is designed as a means to give a debt-free fresh start to honest individuals who have fallen on bad times. Post-bankruptcy, debtors cannot be held liable for discharged debts. Consumers can file for bankruptcy under chapter 7 where all your non-exempt property is liquidated, and the proceeds are distributed among creditors as per Bankruptcy Code. Part of the property may be subject to mortgages and liens, while any unsecured debts (credit card bills, medical bills, etc.) which remain after the process are discharged.

              Though it sounds too good, there are other options available. According to Los Angeles, based bankruptcy firm Recovery Law Group debtors who are in business (corporations, partnerships or sole proprietorships) can definitely avoid liquidation of assets and remain in business. For them, Chapter 11 is a better option where they can adjust their debts by either reducing them, extending repayment time or a better comprehensive reorganization. Sole proprietors can opt for Chapter 13, as can individual debtors who fail to qualify for Chapter 7 and have means to repay loans through a repayment plan. In case you are confused call 888-297-6023 to speak with expert bankruptcy lawyers about your case.

              Eligibility for Chapter 7 Bankruptcy and what can cause your Chapter 7 Bankruptcy case to be dismissed

              If you can let go of your non-exempt assets, Chapter 7 is the best bet for you. It takes less time and any unsecured debts which remain are discharged. This chapter can provide relief to individuals, corporations, partnerships and other business entities; however, discharge is available only to individuals and not corporations and partnerships. One of the major hurdles, in this case, is that you need to qualify the “means test” for being eligible for it. The requirements of the mean test include:

              • Debtor’s “current monthly income” should be less than the state median. This is calculated by considering the debtor’s aggregate monthly income over five years. It should not exceed (after statutorily allowed expenses) either $12,850 or 25% of debtor’s nonpriority unsecured debts (up to $7,700).
              • The debtor can justify the additional expenses of the current monthly income due to special circumstances (job loss, health issues resulting in heavy medical bills, etc.)

              If the debtor is unable to prove either of the points, it becomes a case of presumptive abuse and the case can either be converted into a Chapter 13 case (with debtor’s consent) or dismissed. An individual cannot file under Chapter 7 if a prior bankruptcy petition was dismissed 180 days prior due to debtor’s failure to either comply with court orders or wilful absence from court or debtor themselves voluntarily dismissed the case after creditors took relief from the bankruptcy court to recover property with liens. It is mandatory for all bankruptcy relief seekers to complete a mandatory credit counseling course (within 180 days prior to bankruptcy filing) from approved credit counseling agencies. In case of emergency situations, relief is available for debtors. Also, if the bankruptcy trustee determines the absence of enough approved agencies for counseling then also the process can be skipped. In case an individual’s debts are largely consumer rather than business, then, the court may dismiss the case if granting of relief is an abuse of Chapter 7.

              How does Chapter 7 work?

              In this case, a petition is filed in bankruptcy court where the debtor lives or where they have their main business or assets. Along with the petition, the debtor is also required to submit the following documents with the court and bankruptcy trustee:

              1. List of all assets and liabilities;
              2. Current monthly income and expenditure (also include anticipated income or expenditure increase post-filing);
              3. Financial statement;
              4. Schedule of unexpired leases and executory contracts;
              5. Copy of most recent tax returns as well as those filed during the case;
              6. Certificate of credit counseling course;
              7. Copy of debt repayment plan developed through credit counseling;
              8. Pay slips/cheques from employers;
              9. Any federal or state qualified education/tuition accounts.

              A couple may file a petition for bankruptcy as individuals or jointly. You are expected to pay the following fees:

              • $245 – case filing fees;
              • $75 – miscellaneous administrative fees;
              • $15 – trustee surcharge

              Though usually the fee is paid to the clerk on the filing of the case, individuals can, with court’s approval, pay in four installments; with the last one not later than 120 days of petition filing. This deadline can be extended up to 180 days after filing of the petition on showing genuine cause. The administrative fee and trustee surcharge can also be paid in installments. In case of a joint petition, all charges are to be paid only once. In case the debtor does not pay the fees, the case may be dismissed. In case the debtor’s income is less than 150% of the poverty level and he/she is unable to pay the Chapter 7 fees in installments, the court can waive the requirement.

              The debtor also needs to provide a list of all creditors, the amount and nature of their claims; the debtor’s source, amount and frequency of income; list of any property owned and a detailed account of their expenses (food, shelter, clothing, transportation, taxes, etc.). This information is to be gathered by married individuals for their spouses, in case of joint or separate individual petitions and even if only one of them is filing.

              A bankruptcy estate is formed on commencement of bankruptcy case which consists of all property owned by the debtor. According to the Bankruptcy Code, individual debtors can keep some of their property. This is known as exempt property. The government offers a choice to bankruptcy filers to choose from federal exemptions or state exemptions; however, in some states like California, you can choose only state exemptions (there are 2 sets of exemptions in California). A bankruptcy attorney in California can best guide you which set of exemption will allow you to keep most of your property from being liquidated.

              One of the benefits of filing for bankruptcy is automatic stay which prevents all collection actions by creditors like repossession, wage garnishment, foreclosure, and threatening calls. The stay remains effective for as long as the bankruptcy is in place. All creditors are informed of your bankruptcy petition due to the notice sent to them by bankruptcy clerk. It is therefore essential not to miss any creditor from the list, else they will not be informed of the automatic stay and you might be in trouble.

              A meeting of creditors is scheduled between 21 and 40 days of the filing of the petition. This meeting is attended by the bankruptcy trustee, the debtor and his/her attorney along with creditors. It is mandatory for the debtor to attend the meeting; however, creditors may skip it if they do not have any objection to the filing. In the case of a joint petition, both husband and wife need to attend the meeting. Within 10 days of the meeting, the U.S. court, on trustee’s advice decide whether the case should go ahead or dismiss due to abuse of means test.

              What is the role of a bankruptcy trustee?

              The courts appoint a bankruptcy attorney who is responsible for several jobs, major of which include:

              • Making the debtor aware of the consequences of seeking and receiving bankruptcy discharge (low credit rating, difficulty in getting loans, jobs, etc.);
              • Suggesting filing for bankruptcy in a different chapter (covert bankruptcy to chapter 11, 12 or 13) if they are eligible under the new chapter;
              • Effects of reaffirming any debt;
              • Filing of the report with the court. If all assets are exempt or subject to valid liens, the bankruptcy is a “no asset” one where unsecured creditor does not get any dues. However, if it is an asset’s case, unsecured creditors need to file their claim within 90 days of creditors meeting, while governmental units have 180 days for filing the claim. If an asset is later discovered for distribution, Bankruptcy court notifies creditors and allows additional time to file proof of claim.
              • Administer the case and liquidate non-exempt assets of the debtor to maximize return to unsecured creditors;
              • The trustee also has “avoiding powers” through which any preferential transfers to creditors within 90 days of petition filing can be undone, pursue any fraudulent and/or bulk transfer.

              Chapter 7 discharge

              There are several reasons why a debtor might not get discharged by the court –

              1. If the debtor fails to produce their financial records;
              2. Fails to reasonably explain the loss of any asset;
              3. Committed perjury;
              4. Fraudulently concealed, transferred or destroyed property which was a part of the bankruptcy estate;
              5. Failed to obey bankruptcy court order;
              6. Failed to complete mandatory financial management course.

              Generally, 99% of Chapter 7 cases result in a discharge, within 60-90 days of creditors’ meeting. Getting a discharge relieves the debtor of any personal liability for the discharged debts and cannot be pursued by creditors for them. Secured creditors, however, have right over some property even after discharge is granted.

              In case a debtor reaffirms any debt, they remain liable for the debt (entire or part of it) even after discharge. With reaffirmation agreement, debtor confirms their intention to pay debts which otherwise would have been discharged, while creditor assures that property will not be repossessed if the debtor continues making a payment regarding the debt. However, the reaffirmation of debt needs to be done before discharge is entered. The personal liability of the debtor is not discharged after reaffirmation of the debt. It is therefore important for debtor’s attorney to make the client aware of the consequences of reaffirming their debt.

              However, all debts are not discharged during chapter 7 bankruptcy. Those debts which remain include child and spousal support, education loans, some taxes, and loans made by or to government units, debts for malicious injuries by the debtor to property or another individual, etc.


                *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 and Payday Loans

                Bankruptcy and Payday Loans

                Payday loans are a very innovative concept which is running around the United States quite contagiously today. It provides instant cash by keeping your future paycheck as collateral. Payday loans are a common point of discussion during bankruptcy as they can make the procedure complicated. While most people take payday loans to clear their existing debts, which may be credit card bills, utility bill payments, personal expenses, etc., the amount is usually limited to about 70-80% of the average paycheck. Just like credit cards, the interest charged on a payday loan is very high. It is an unsecured form of loan and does not have any asset backing and hence, falling into a vicious interest cycle is quite common and obvious. Need more tips on managing finances, log on to Recovery Law Group for more info.

                Concept of Payday loans

                Unlike credit cards or other loan forms, payday loans are highly liquid and are directly deposited in the bank account or are in the form of cash advances. The approval process is also quick, but the processing charge and interest rate are on the higher side. Ideally, the payday loan should be used in a very difficult circumstance and if you are falling back on it several times, its high time you had worked on controlling your finances. Payday loans are generally given on the basis of employment income and history. Credit score and other parameters often play a minimalistic role in determining eligibility to payday loans. Hence, it is the most common loan form for employed individuals with low credit score to access cash instantly.

                Your recent pay slips, employment tenure, etc., matter the most for payday loans. Though there are the state and federal agencies monitoring payday loan providers, it is up to the borrowers to not consider payday loans as a viable option. If it is a one-off situation that wasn’t anticipated then it could still be fine, however, if you need to look forward to a payday loan because your paycheck isn’t enough for meeting routine expenses, you might have just put your foot in the spider webbing.

                Can bankruptcy help in cutting the spider webbing?

                Since payday loans are considered as unsecured debt, bankruptcy can help significantly in managing or releasing the payday loan debts. Whether you file bankruptcy through Chapter 7 or Chapter 13, there are good chances of releasing the payday debts. However, if the payday loans were taken recently before filing bankruptcy, the lender might argue for your intention to not pay the loan and it might be converted a fraud transaction, which will not be released by the bankruptcy court.

                The bankruptcy trustee tracks 70-90 days of transactions hence, it is important to not file bankruptcy after taking payday loans for that period. The usage of these loans also has to be for the necessary expenditure. If any luxury items were purchased or the money was transferred to friends, relatives, parents, etc., for clearing their debt, there can be further consequences of retrieving money from the ‘insiders’. Making big transactions or purchases could also bring you under the scanner of the bankruptcy trustee.

                What is in your favor?

                The bankruptcy courts by default do not support or tend to like the payday loan providers. Hence, there are several favorable clauses that could prove the lender’s claims incorrect. For instance, the court regards the first payday loan as the transaction start date ignoring the recent loan transactions. This certainly helps in addressing the 90-day period that is under the trustee’s scanner. The only option left with the payday loan providers is to convert the transaction into a fraud one, which is not an easy task for sure.

                Payday lenders may also seek for security based on various different factors. It could be a post-dated cheque or a Demand Draft or any financial instrument with a promise of you paying them back in future. The payday lender might try to cash in the cheque even when you have declared bankruptcy and the ‘automatic stay’ has been applied. This is a violation, but litigation and court cases will consume a lot of time and money. The best way to handle this scenario would be by notifying your attorney, bankruptcy trustee and your bank about the post-dated cheque to the payday lender. The banks offer to a stop payment facility at a fee, which is derived based on the number of checks issued. You can consider paying the stop payment fee and preventing the payday lender from cashing a post-dated cheque.

                Need help get help

                Payday lenders often threaten for criminal cases as writing a bad check is one. However, the law is different during bankruptcy. By the illustrated above method, you can stop payment to your payday lender once you are in the ‘automatic stay’. Also, if the payday lender has cashed in the cheque just before you file bankruptcy, the same can also be retrieved for the bankruptcy estate under the Chapter 7 bankruptcy norms. Also, there are many fraudulent payday lenders around in the market who operate only by a website or an app. These websites charge a fee upfront for processing loans and just disappear. Such duping of customers has seen a typical rise in the recent 6-7 months.

                As per law, no upfront fees can be charged before processing a payday loan. Hence, a fee or charge before loan processing is a serious trigger. If you are confused and need help, reach out to 888-297-6203 for immediate professional help!


                  *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 and Median Income Calculation

                  Bankruptcy and Median Income Calculation

                  Bankruptcy is not a very exciting position to be but there are a lot of choices, questions, problems that have to be addressed almost instantaneously. The first is to identify which Chapter are you looking to file your bankruptcy in. Either Chapter 7 or Chapter 13. Then you have to figure out if you are eligible for Chapter 13 or Chapter 7. If you are eligible, you have to understand the implications of the same and approach the bankruptcy court.

                  Tests, Chapters and eligibility

                  There are eligibility factors for each Chapter, and one cannot simply select the Chapter without figuring out the eligibility. Before even getting into eligibility, just outline some key properties of each Chapter for better understanding so that we focus on one Chapter that would suit the most for an individual during bankruptcy. Under the scenario of Chapter 7 bankruptcy, all your non-exempt assets shall be liquidated, and the debts shall be set off by the proceeds of the liquidated assets. The debts shall be prioritized based on secured and unsecured. If the liquidated assets are not able to set-off some debts those shall be written off or released or discharged and no liability carries after the event of bankruptcy.

                  On the other hand, Chapter 13, is a union of the filer, lenders, bankruptcy trustee and the court, who come together to assess the scenario of the debtor to determine a commonly agreeable plan. This plan usually constitutes of consistent monthly payments for the period of 3-5 years based on the amount of debt. There are clear thresholds mentioned for the amount of limit allowable under each category, secured loans, and unsecured loans. Determine eligibility for Chapter 13 is pretty straight forward. Since the plan is based on future payouts for the period of 3-5 years, the filer might end up paying a good percentage of his debts by the end of the payment plan under Chapter 13. There could be a release of a certain portion of unsecured debt also, depending on the disposable income. Need help to understand more about Chapter 7/13, log on to Recovery Law Group.

                  Median income and disposable income

                  The median income is the average income a family/individual makes in California. This used as a standard to determine the eligibility for Chapter 7. The median for a single person is $4,565 per month for the 2018 Financial Year. For a family of four persons, it is $6,097 per month. If your income is above this threshold, which means you do not qualify for the median test, you would have to clear the means test. The means test will let you take an aggregate of last 6 months of income and compare it to the California median. Based on the available disposable income, Chapter 7 or Chapter 13 can be considered.

                  The disposable income is really important for Chapter 13 as that will be the amount of money to be used to settle the debts. The actual expenses are not allowed but a fixed limit on expenditure has been pre-defined. You can arrive at your disposable income by deducting those fixed limits. For instance, living expenses have been capped to about $650 per individual per month. This includes food, day-to-day expenditures, personal care, apparel, etc. Other expenses can be limited to about $2,500 per month. This would typically include, healthcare costs, car costs/operating expenses, housing expenses, etc. If in the means test, the disposable income figured out is below $128, the filer would qualify for Chapter 7. If you do not qualify for the median income test and means test, Chapter 13 would be the only alternative.

                  Disqualified Chapter 7 by a hairline? What are the options?

                  Consulting a qualified and professional lawyer can help in determining the ways to arrive at the lowest possible disposable income in order to gain eligibility to Chapter 7. The number of expert help would be +1 888-297-6203. It has been learned that most people make several errors in calculating their disposable income and file for Chapter 13, ending up with 5 years of payment plans, that can be stressful. The faster way is certainly Chapter 7 that could resolve all your debts in a span of 60-90 days. The following tips could be used to qualify for Chapter 7 if disqualified by a hairline-

                  • The median income is compared to the average income in California. This might not be that beneficial for people in California but is pretty beneficial for people with a lower cost of living like Dallas, Los Angeles, Austin, etc. California being the costliest states of the United States, most people might be able to meet the eligibility test of median income, which they might assume they will not
                  • Not qualifying in Means test marginally can still be compelled to Chapter 7 by the bankruptcy court. This differs on a case to case basis and you will need a professional lawyer or an attorney who can find ways to convince the bankruptcy court based on certain valid propositions
                  • The average of 6 months is used as the figure to arrive at disposable income. If you have lost job or income sources recently and expect the income to decline in the near future, it is advised to then delay bankruptcy filing by 2-3 months. This will further lower your average income and ensure you qualify for the Chapter 7 bankruptcy code
                  • If you are filing Chapter 7 bankruptcy in Dallas  because of business debt, you would not need to qualify for the means test either. Your business debt, in that case, has to be over 50% of your personal debt. Since a home mortgage is regarded as personal, it is very difficult to breach 50% of the debt. If you do not have a mortgage or any huge personal debt, there are good chances that your business debt shall exceed over 50%. You wouldn’t then need to qualify the means test for eligibility

                  Bankruptcy laws are not one of the easiest ones to interpret. Professional help can help you in getting out of the not so pleasant situation quicker and better. Reach out to +1 888-297-6203 for best guidance 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.

                  • Avoid Transfer of Real Estate Prior to Bankruptcy Filing If You Seek Respite from Financial Issues

                    Avoid Transfer of Real Estate Prior to Bankruptcy Filing If You Seek Respite from Financial Issues

                    Bankruptcy is the best legal recourse available to people who are struggling with financial debts which they are simply unable to pay off. Though it is essentially designed to provide respite to people, there are rules attached to it. One of them is about the transfer of property prior to a bankruptcy filing. Many people transfer assets (jewelry, shares, property, etc.) to family and friends in order to avoid them becoming a part of the bankruptcy estate. However, the court doesn’t look too kindly on such transfers. Moreover, inform bankruptcy lawyers of Los Angeles based firm Recovery Law Group mixing of bankruptcy and civil lawsuits can be quite horrible as seen in the case of Catherine, a California resident who was handling two lawsuits and two bankruptcies.

                    Catherine did not get along with her neighbors and often there was discord among them due to her behavior. She used to play loud music in the middle of the night which disturbed her neighbors; took her dogs to defecate in front of neighbors’ front lawns, and even released her vicious dogs into her yard to scare small kids and grandchildren of her neighbors. She even posted signs making outrageous claims defaming her neighbors. The signs accused neighbors of criminal and civil misdeeds and tanked their reputation, resulting in a loss of business for them. All of this behavior resulted in the neighbors’ filing a defamation lawsuit against Catherine.

                    While the defamation lawsuit was still pending, Catherine transferred the deed of her house to her daughter, with simply a “life estate” in the house. A life estate means that a person can reside in the property until they die. Catherine’s daughter agreed to return the deed on request, thereby becoming the legal owner of the house. After one year of this transfer of property, Catherine filed for Chapter 13 bankruptcy. The automatic stay benefit resulted in seizing of all collection actions including putting a stop to the defamation lawsuit of the neighbors since they were asking for monetary damages. With the dismissal of her bankruptcy after a couple of months, the automatic stay benefit was also lifted.

                    The neighbors filed again to set aside the transfer of her house as dishonest. Since they had filed a defamation lawsuit expecting to win, the move by Catherine to transfer her house was probably an attempt to make her “judgment proof.” In case a person is judgment proof, the plaintiffs, even after winning their case won’t be able to collect any compensation. Catherine lost the defamation suit and was expected to pay $320,000 to the neighbors, but she appealed against the verdict. One year after filing the appeal (and waiting for an update on the same), she filed for a Chapter 7 bankruptcy. By then, the judgment for $320,000 was affirmed.

                     After two months the court ruled that the transfer of Catherine’s house to her daughter was void. With this ruling, she became the legal owner of the house and that the property could be sold off to pay her dues to the neighbors. Catherine again filed for an appeal against the verdict, but unfortunately passed away before it could be decided. Her death resulted in the transfer of the ownership to her daughter as per the terms of transfer. This resulted in her estate having no money to pay off the neighbors’ debts. In case the transfer was deemed void, the property will be handed over to Catherine’s bankruptcy trustee who would then sell it off to pay the debts.

                    Catherine had transferred the house to her daughter’s name in order to protect it. However, since the transfer was considered fraud, it was voided. Thus the legal claim of the house remained with Catherine (and eventually her bankruptcy trustee). The law restricts people from transferring property to family and friends prior to bankruptcy filing since this is an attempt to prevent the sale of the said property during Chapter 7 bankruptcy. With the court holding on to the appeal, the transfer was declared void and after 20 long years’ Catherine’s neighbors received the compensation.

                    Often courts are able to see through the elaborate schemes people concoct to trick their creditors. Bankruptcy trustees are required to see through all paperwork to ensure that no asset goes unaccounted for. Any transfer of property to family and friends within a specified time frame, without proper compensation, is generally considered fraud. Such activity may result in dismissal of your bankruptcy case too. If you are going through a tough financial phase, feel free to call at 888-297-6023 to discuss your case with expert bankruptcy lawyers.


                      *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.