Filing for bankruptcy, though tough, is a smart decision to overcome your financial problems. However, as lawyers of Sacramento based law firm Recovery Law Group inform, debtor’s need to make these changes in their habits to avoid filing for bankruptcy again: (more…)
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When Should You File for Bankruptcy?
Financial losses are common to everyone. Going through financially tough times can lead to drastic consequences. Federal government understands that without timely intervention and help in the form of bankruptcy, many people will continue spiraling down the financial mess. However, you have to decide what the last straw before filing for bankruptcy is. It is important to understand that with insurmountable debt, you will require more time to come out of the situation.
The U.S. Bankruptcy Code was created to help those people who made an honest mistake and due to unfortunate circumstances have amassed a debt which they aren’t in a position to pay back. Irrespective of the reason behind your financial problems (sudden unemployment, huge medical bills, etc.), you can find there are federal laws which offer respite to you and help you gain financial independence again, prompting you to look ahead in life.
Though many of us may realize the financial issues plaguing us, it might be difficult to gauge the extent to which the damage is. You could consult bankruptcy lawyers for assistance regarding your financial predicament. Lawyers of Sacramento based law firm Recovery Law Group provide you a list of questions to ask yourself to understand your position with respect to the bankruptcy filing. These questions help you develop a better grasp of your financial position and its effects on your life.
- Are you aware of how much debt you owe?
- Are you worried about making payments every month?
- Are you using credit cards to take care of your daily expenses and necessities?
- Are you able to make minimum payments on your credit card balances?
- Are you being contacted by debt collection agencies or bill collectors?
- Are you avoiding any collection attempts being made to collect dues?
- Have you faced symptoms like repossession, eviction, foreclosure, utility shutoffs or wage garnishments due to your unclear debts?
- Do you feel like having lost control over your finances?
If you are able to identify these situations, it means you are having severe monetary problems and require financial assistance. Though bankruptcy may create frightening images in your mind, it is one of the best ways to get you out of this unwanted situation. Consult bankruptcy lawyer to understand the procedure and take control of your finances.
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Smaller Airline Industry Created after Bankruptcy and Job Losses
In the past 10 years, the U.S. airline industry has lost a huge amount of revenues, to the tune of tens of billions of dollars and more than 170,000 jobs. All of this can be attributed to lost revenue and bankruptcy filings. The result of this has been downsizing of the industry significantly. Most major airline carriers have seen this doomsday scenario.
According to Los Angeles based law firm Recovery Law Group, there are numerous examples of the same. The United Airlines underwent bankruptcy through chapter 11 in 2002-2006 had been reduced to half its size than it was in 1999. The airline which employed around 100,000 employees in 1999 cut down and now employs 46,538 people only.
In 2008, Delta Airlines and Northwest merged after filing through bankruptcy under chapter 11. Just like United Airlines, it also underwent similar job losses. The combined workforce of both companies was 80,000 by the end of 2009 which was a 37% decrease from the number of employees in 1999 before the companies had merged.
However, the shrinking of companies and their merger due to bankruptcy is not necessarily a bad thing. During boom time, many companies undergo massive expansion which cannot be sustained during periods of recession, which unfortunately are bound to happen. Such fluctuations are pretty common in various industries with airlines particularly vulnerable to them.
Filing for bankruptcy is one of the best tools to take care of the ever-increasing mountain of debt and unmanageable contracts of workers. Bankruptcy has come to the aid of various major airlines and kept them viable during times of recession. All airline carriers who have filed for bankruptcy under chapter 11 have not only reduced their debts but also their workforce, thereby surviving the recession and remaining viable in the long term.
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Should You File For Bankruptcy Just After Losing Your Job?
People who have seen a significant change in their income due to a sudden surge in expenses or dip in earnings due to loss of job, often wonder if they should consider bankruptcy as a way out of the financial mess they are in. since conditions do not allow them to make payments against any obligations they have, this is a thought worth your penny. Though you might find it compelling to file for bankruptcy just after losing your job, it’s important that you deeply analyze your situation and come up with the best possible solution to your problems. Sometimes, it is important to wait and watch for the situation to unfold as there is a certain time period before you can again file for bankruptcy. (more…)
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Review Your Credit Report before Choosing To File For Bankruptcy
Reviewing your credit report annually is extremely important so that you are aware of your current financial situation as well as checking if the information about your payments and debts is being accurately portrayed to the credit bureaus. People looking for a way out of the financial mess by filing for bankruptcy should make it a point to review their credit report before filing to ensure that all their creditors are included in the documents and schedules. As a part of the filing process, you are expected to list all your creditors. A simple mistake of omitting any one creditor just because you didn’t receive any collection notice from them recently, can turn into a big problem. (more…)
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Rebuilding Credit is Easy with These Steps
Though traumatic, filing for bankruptcy is an essential decision taken by people to get rid of dues which they don’t have means to pay off. Bankruptcy is of great assistance to people who have had continuous bad luck, which resulted in financial losses. Once the bankruptcy proceedings are over, bankruptcy filers get a fresh start with a clean financial slate. With some easy to follow steps, they can rebuild their credit score to live life comfortably. Here are some tips by lawyers of Los Angeles based law firm Recovery Law Group to help rebuild your credit: (more…)
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Prevent Wage Garnishment through Bankruptcy
More often than not, people who are under debt are harassed by creditors for their dues. Some of the creditors might resort to garnish wages to clear the debts. However, Los Angeles based law firm Recovery Law Group informs that Texas and some other states do not look at this practice favorably and may not allow creditors to go ahead with it, except in case of special circumstances like federal taxes, spousal/child support or student loans. (more…)
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Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court
The bankruptcy laws have been enacted to make life easier for people who are undergoing tremendous financial losses. However, despite filing for bankruptcy and getting a discharge, many times, creditors still harass debt filers for dues. Citing the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvarv. Title Cash of Montana Inc., et. al.), the Los Angeles based law firm Recovery Law Group respite is available to debtors from creditors who violate bankruptcy discharge. Such creditors can be held in civil contempt.
How Jarvar v. Title Cash of Montana Inc., et. al. Bankruptcy Case Changed Things
In the above case, debtors had filed for bankruptcy under Chapter 13 with Title Cash filing proofs of claim for 2 secured claims, an amount of $7,290 each. On a later date, they withdrew both secured claims to file a single POC for a secured claim of $14,605. The debtor’s case was converted to Chapter 7 and dismissed.
As per the trustee’s final report, Title Cash had $6,046 in principal and $1,041 in interest. The debtor then filed for Chapter 7 relief in September 2004 with Title Cash scheduled as a secured creditor and received a discharge on January 1st, 2005. However, in September 2008, the debtor filed for a state court action against Title Cash with the latter responding with a counterclaim requesting in personam relief against the debtor.
This led to the filing of an adversary proceeding for a violation of Section 362 and 524. The bankruptcy court granted summary judgment to the debtor for seeking relief for a discharge injunction violation. Since Title Cash couldn’t file a statement of genuine issues, the facts submitted by the debtor in her Statement of Uncontroverted Facts were acknowledged.
The creditor (Title Cash) was in violation of bankruptcy discharge, as he attempted to make the debtor personally liable (in personam) for the debt post its discharge. This is not a rare occurrence but a common practice amongst creditors. Violation of debtor’s bankruptcy discharge costs not just the debtor’s time and energy but also money which is of great importance in the current scenario. However, there have been instances when debtors have received compensation for this behavior of creditors (violation of bankruptcy discharge).
In case a creditor is asking for payments even after your debt has been discharged in bankruptcy, you don’t need to bow down to any pressure. Contact your bankruptcy attorney to deal with such creditors.
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Is There a Difference Between Bankruptcy & Debt Settlement?
A stroke of misfortune or sheer bad luck with monetary investments may result in severe financial problems for people. If you too are struggling through insoluble debts, you are faced with 2 choices as per Sacramento based law firm Recovery Law Group – filing for bankruptcy or opting for debt settlement. However, to become financially stable again, you need to choose between the 2 options available to you. Though many people are aware of bankruptcy, not much is known about debt settlement. It is important for debtors to understand the difference between the two, for them to choose the best option for themselves.
What is Debt Settlement?
An attorney or debt settlement company helps resolve a debt obligation in a debt settlement process. During the debt settlement process, negotiations are carried out with creditors with respect to getting discounts for the debtor when the latter has defaulted on making payments. Any unsecured debt including medical bills, credit card debts, etc. can be negotiated through this program, however, taxes, any government-backed loans or student loan debts are not eligible to be covered in this settlement. Any debtor who opts for this process should have a large sum of money to clear the settlement payment in a relatively short time frame. Through debt settlement, a debtor can protect all assets, get a quick resolution to their financial problems when the creditor accepts the debt settlement amount.
Difference between Debt Settlement and Bankruptcy
Debts incurred by any individual or organization can be classified as secured or unsecured. The most commonly used chapters of bankruptcy for consumers are Chapter 13 and Chapter 7. Through these chapters, consumers can reorganize their debts and pay off portions of their debt via a repayment plan or get a discharge on most of their debts respectively. However, certain loans such as tax debts, student loans, and some other secured debts cannot be discharged through bankruptcy.
Which is a Better Option?
Often people are confused between the 2 options available to get their debts discharged. However, it is found that between debt settlement and bankruptcy, the latter usually offers a better solution for most people. This can be attributed to the fact that:
- Bankruptcy offers the filer a clean start with an option to rebuild their credit.
- Dealing with creditors to get your debt discharged can be quite stressful and messy. Not only do you require to make lump-sum payments within a short frame of time. This is not the case with bankruptcy, as bankruptcy helps provide you a chance to rebuild your credit.
- When you opt for debt settlement, you have to make some payment as per the negotiations, whereas in bankruptcy, your debts are cleared.
- In the case of debt settlements, huge fee accompanies with the new monthly payment amount.
- With bankruptcy, you get legal protection in the form of the automatic With this in play, creditors cannot file lawsuits against you, harass you by calling you at inappropriate hours or place or take away your wages, while the case is under progress.
Since you are already in a financial mess, you shouldn’t make any decision regarding bankruptcy filing or debt settlement without consulting a bankruptcy lawyer. They are knowledgeable enough to guide you through the entire procedure.
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How to Decide the Bankruptcy Filing Chapter?
Bankruptcy is a common occurrence with many people in America turning to it to save themselves from overwhelming debts. Despite unique financial situations, many individuals, couples or even businesses are looking for options to file for bankruptcy. However, since situations are different for each of them, they need to choose the best-suited Chapter of the U.S. Bankruptcy Code under which they can file for bankruptcy. (more…)