Many people who are trying to make their ends meet while simultaneously struggling to pay their dues are often worried about how they are going to pass this phase. Since credit ratings are of huge importance, non-payment of dues will result in bad credit ratings which will make things worse. In case you are facing wage garnishments, worried about foreclosure, repossession of your vehicle, etc., then it is time to look for bankruptcy lawyers near me. One of the best Bankruptcy Attorney Los Angeles firm, Recovery Law Group is committed to helping out families and individuals who are going through a bad financial phase and therefore struggling with debt. (more…)
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Your reorganization plan after Chapter 11 bankruptcy
Chapter 11 bankruptcy, also known as reorganization bankruptcy, is exclusive for corporations, partnerships and individuals to work on their reorganization strategy in the midst of financial struggles. They work on reorganizing their finances and restructuring of their debts. Since this bankruptcy has no debt ceiling (different from Chapter 13 bankruptcy), it is much preferred by small and large businesses for the restructuring of their open debts. (more…)
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Thinking of Filing for Bankruptcy? Here are the Things You Should Avoid Doing
In case you are having trouble in managing your finances and the debts keep on surmounting, bankruptcy is legal recourse available to take care of the situation. However, there are certain things to be kept in mind if you are considering filing for bankruptcy. It is important to consult a bankruptcy lawyer such as those of Los Angeles based law firm Recovery Law Group to help you prepare for your case as well as the outcome. It is important that you are aware of the changes your life will take after the bankruptcy case gets over. Bankruptcy lawyers also help to provide information regarding the process and ensure that your rights are protected during the entire bankruptcy proceedings.
A major task of bankruptcy lawyers is to ensure that their clients do not commit some mistakes prior to bankruptcy filing which can have a disastrous effect on their case. Here are some things which people thinking of filing for bankruptcy should avoid at any costs:Not hiring a lawyer – People can file for bankruptcy without a lawyer too. Many times they think that hiring a lawyer will be an additional expense. However, laymen are unaware of the intricacies of the bankruptcy proceedings and can cause more harm to their future without a lawyer than with them. Going solo can be the biggest mistake you could make in a bankruptcy case.
Neglecting to file for tax returns – Your tax returns are essential and form an integral part of your bankruptcy petition. All income tax claims are satisfied thanks to the timely tax returns filed. In case tax returns are not filed and up-to-date, this could have a detrimental effect on your case and it may even come to a standstill.
Providing incorrect information – You are required to submit your financial data to bankruptcy trustee or lawyer when you file for bankruptcy. This data is reviewed by the court and in case the information is incomplete, inaccurate or false, there could be criminal proceedings against you, your case might get dismissed and your debts not discharged, thus ruining your chance of getting over financial instability through bankruptcy.
Moving assets or changing titles – There is a certain time period before filing for bankruptcy which specifically comes under scrutiny in case you have moved your assets elsewhere or changed the title of ownership of any property. This is taken as an attempt to hide assets which may cause your case to be dismissed. In case you have done anything of this sort, you should wait for some time frame before filing for bankruptcy.
Running up debts – If you get on a spending spree within 90 days of filing for bankruptcy, the debts may not be discharged. This kind of activity is considered fraudulent and if proved so by creditors, you will be found liable to clear all those debts which had been made in the hope of getting discharged.
Prioritizing creditors – Some payment made by you can be undone in some cases of a bankruptcy filing if the court finds the circumstances dubious.
Hiding assets – Many times people either hide assets or fail to disclose any asset that they can expect (will, settlement, trust or lawsuit, etc.) It is important to trust bankruptcy lawyers to protect such assets legally.
In case you are considering to file for bankruptcy to get over your financial problems, ensure that you consult lawyers who specialize in handling bankruptcy cases. They can advise you on the options available to you for debt relief including which chapter you should file under for maximum benefits.
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Will Filing Bankruptcy Require Liquidating of Business?
It isn’t uncommon for a business owner encountering situations wherein revenues decline and debts become surplus. Planning and executing business is by itself a challenge and being in junctures of financial instability can be equally worrying. Luckily, the U.S. Bankruptcy Code is a saving grace to address these startling situations of the financial crisis in businesses and in personal front too!
The key question of a business person is whether the business needs to be liquidated in bankruptcy. To throw some clarity to this, here are some important factors that are to be understood while the business owner files for a bankruptcyThe type of bankruptcy filed for your business will be the deciding factor and it determines whether your business/ company needs to be liquidated. Filing for bankruptcy under Chapter 7 clauses of your business requires your company and the other assets to be sold in order to settle your creditors. In cases of companies/ businesses that haven’t been incorporated or under sole proprietorship, the type of bankruptcy to be filed will be a personal Chapter 7 bankruptcy. So discuss it with the right business attorney whether Chapter 7 bankruptcy for business or for an individual is needed for your case.
Filing for Chapter 11 bankruptcy for the financial issues in your business enables the restructuring of those debts so that they can be repaid over time. This scenario is somewhat similar to the bankruptcy filing done by individuals and couples using Chapter 13. Chapter 11 bankruptcy is suited for larger businesses and saves the company and its assets from being sold – the bankruptcy plan should have been presented earlier and approved by the bankruptcy court.
Another view to Chapter 11 bankruptcy for businesses enable the company to liquidate their assets in an orderly or organized way. This is best suited for businesses when they are determined to close operations or if their operating costs are higher than before. This planning created buyer friendly conditions and yield better liquidation outcome.
If the business owners run a business of good value and that assure recovery over the years, then they can repay their debts via an approved bankruptcy plan – this plan should have been in place and approved by creditors & bankruptcy court. They can continue operating their business and save it from liquidation. The bankruptcy trustee determines the value of your company and whether there are assets in your company that can be liquidated in order to benefit creditors
Despite the stated factors above, every business case could be quite unique in its nature. As renowned bankruptcy attorneys, the Recovery Law Group works with every client who has fallen into tough times financially in personal and business fronts. The clientele base that we cater to is from the Los Angeles and Dallas, TX regions.
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What are the Benefits of Chapter 13 Bankruptcy?
A bankruptcy filing is a federal way out for people who are struggling with finances due to unforeseen circumstances. Individuals who are going through a tough financial phase can opt for filing bankruptcy under either Chapter 7 or Chapter 13. While many debts are discharged in Chapter 7, there are a number of benefits associated with Chapter 13 bankruptcy too. The latter has a court-approved repayment plan through which the bankruptcy filers are allowed to make payments to the debtors over a period of 3-5 years. The repayment plan is devised keeping in mind the debt owed to the creditors and the income of the filer. In this way, the debtors make one manageable payment every month to the bankruptcy trustee which ensures that the payment reaches the creditors. Thus there is no direct contact with creditors.
According to Los Angeles based law firm Recovery Law Group , those individuals who are able to qualify for this Chapter, there are a number of advantage, such as:
- In case you have fallen behind on monthly mortgage payments, Chapter 13 bankruptcy allows you to avoid foreclosure.
- Non-exempt property which cannot be protected under Chapter 7 bankruptcy can be protected if you file under Chapter 13.
- With the repayment plan, you can catch up on car loan payments and prevent repossession of the vehicle. The car payments are reduced depending on how much the original principal amount of loan remains and the current value of the vehicle.
- In case you had previously (within 8 years) filed for a Chapter 7 bankruptcy, you can get protection with filing a Chapter 13 now.
- In case you owe taxes which cannot be discharged, they can be repaid through the Chapter 13 bankruptcy repayment plan. This way the IRS (Internal Revenue Service) cannot make collection attempts and will have to accept whatever payment amount has been agreed to upon by the bankruptcy court.
- A repayment plan can be devised for student loan debt under Chapter 13, which typically does not get discharged during bankruptcy.
- Co-signers are often at the receiving end of the creditors when you file for bankruptcy under Chapter 7. But Chapter 13 protects them.
In case you find yourself in a financial mess, with repayment problems spiraling out of hand and creditors giving you a hard time, you should consult bankruptcy lawyers to discover your options. Find out which chapter of bankruptcy can you qualify for and which will be the best suited for your particular conditions.
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Student Loan Laws of Oregon
Higher education can be costly. Many times, for a bright future, students take a student loan to pursue their dream of higher education. However, the financial future of these students (graduates, post-graduates as well as doctoral fellows) is in jeopardy due to the crippling student loan. Most of the times, due to bad financial conditions, people have the option of filing for bankruptcy. Since student loan is not discharged in bankruptcy, not only is it a point of concern for the students but also the nation as a whole.
According to the Los Angeles based law firm Recovery Law Group, the outstanding student loan dues amount to more than a trillion dollars, with nearly 12% in default. It has been consistently on the rise since the past 15 years. The student loan crisis has its effects on not just the loan borrowers but also other sectors including real estate and automobile industry. Despite filing for bankruptcy, students require assistance to take care of their student loan problem. It is therefore essential to consult and trust experienced bankruptcy lawyers who can assist student loan borrowers in ways to tackle the debt.
Having a detailed analysis of your student loan case can help in establishing your eligibility for income-sensitive repayment, amalgamation, and loan forgiveness and cancellation if you have a good credit rating or are a recent graduate. A good bankruptcy lawyer can help take care of bureaucratic problems associated with. federal loan servicing. In case, you were paying your student loan but due to a bad financial condition have fallen back on payments, lawyers can help in finding out options for reduced monthly payments under federal law. Loan prioritization and repayment management are some of the methods through which lawyers help with loan repayment, apart from overseeing completion of forms and application and being your representative with lenders.
With bankruptcy lawyers at your side, you can be provided with a detailed analysis of your options in case you are defaulting on your payments. They can also help take care of abusive debt collectors and collection agencies who have been pestering you for dues, as well as prevent any wage garnishment from taking place. Explore all available solutions when you consult a bankruptcy lawyer.
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Source of Bankruptcy Money
Bankruptcy is the process through which, individuals or businesses who are in conditions of surplus debts and in the situation of financial struggles, get relief of this scenario and regain their stability with finances. In order that this process be debtor beneficial, the type of Chapter against which bankruptcy is filed will be important (more…)
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Should I Keep My Car during Bankruptcy?
Bankruptcy is a name which often causes people to panic. This is so because most of the time, it is associated with the image of being thrown on the streets penniless. However, nothing could be farther than truth. More often than not, the financial situation of an individual is tight, which has led them to file for bankruptcy. Since financial problems can affect a number of areas of your life including your job, property, and vehicle, many people question whether it is appropriate to keep their vehicle if they plan to file for bankruptcy. (more…)
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Role of your Chapter 13 Bankruptcy Trustee
When a Chapter 13 bankruptcy is filed, the debts are generally reorganized and repaid within five years. The creditors receive the dues over a three to a five-year term and the administration of this plan is monitored by an appointed trustee, exclusively for Chapter 13 filings. Here is a brief list of the bankruptcy trustee’s duties with regards to Chapter 13 bankruptcy filing –
- Reviewing all associated paperwork of the filing
- Reviewing of the repayment plan for its compliance to bankruptcy laws
- Collecting the payments as per the plan and distributing the same to the creditors
- Executing the full terms of the Chapter 13 plan
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The rebuilding of your credit post-bankruptcy
The first step towards rebuilding of an individual’s credit worthiness post his bankruptcy case is to formalize an effective plan and strategy. It is very important to have a working and efficient plan as against the one that caused the downfall and landed you in bankruptcy. Though it is a big relief from all outstanding debts, the report of your bankruptcy filing is going to be impactful on your credit worthiness – at times for 10 years in cases of Chapter 7 filing.
The good news is that as the bankruptcy period ages, the impact of it on credit offers also reduces. Hence, regaining the trust of creditors is generally going to take some initial time. But it isn’t always the case. Let’s see the ways that can help restore the credit worthiness of you –
- If you have filed for Chapter 7 bankruptcy, it would take another 8 years for you to file another one. Hence it is a good opportunity to lenders to see you as potential customers who will take care of attending to your personal needs, take care of any further debts that you will be incurring and work on a diligent repayment model. As most of your outstanding debts would have been discharged with Chapter 7 filing, the risk associated in a debtor is minimal in an individual who has just completed a filing of Chapter 7 bankruptcy.
- Rebuild your credit worthiness by checking your credit score and dispute all false claims in it. If that isn’t the case, the Chapter 7 report will have a direct impact on your credit score and hence formalize a strategy to earn the trust of your creditors and work towards effective repayment options
- An effective way is to procure a secured loan – an example would be to borrow money against money that is already deposited with financial institutions such as banks or credit unions. Remember that this money will be inaccessible till you completely pay off the loan
- Another way is to borrow money that you already have such as releasing a loan into a savings account and accessing it only after paying out of certain amounts in a repayment model
- Secured cards also work similar to borrowing money that is already available as a deposit
These repayment schedules and the events are shared by banks/ credit unions to the credit bureaus and they reflect on your credit reports
- Get a co-signed card or a loan from any other individual who is willing to incur the risk on your behalf. It is one of the huge moves of favor and it will be very important that you stick to your schedules of payment & repayments – else they suffer when you default
- If an offer of credit, say a credit card of $500 limit is given, make efficient use of it and pay it on a monthly basis. Ensure that you keep the threshold at 30% of the card limit and it sure will help you to rebuild your credit after bankruptcy
Bankruptcy attorneys can be consulted for suggesting best strategies and for devising effective plans for the rebuilding of credit scores. Recovery Law Group houses well-experienced bank attorneys who can come to your rescue when you are looking for the option of rebuilding your financial status after a bankruptcy filing. They serve clients in Los Angeles and Dallas, TX areas.