More often than not, circumstances cause people to take debts which they are unable to clear. Since debts keep on piling, the only solution to get respite from threats from creditors is filing for bankruptcy. Individuals, as well as business organizations going through a bad financial phase, get a new lease of life and a fresh financial start thanks to bankruptcy. However, bankruptcy lawyers of Sacramento based law firm Recovery Law Group suggest some tips for debtors to follow after their bankruptcy case are closed and all their debts discharged: (more…)
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Hiding Assets Could Cost You More Than You Intend to Save
While filing for bankruptcy, it is mandatory for all filers to disclose their assets in their petition. It is extremely important that bankruptcy filers are truthful in their declaration and do not try to hide their assets. Some people have the opinion that if they hide their assets, those assets will remain secure and would not be taken away by the court during bankruptcy proceedings. However, probably unknown to them, they are committing perjury which is reprimanded by penalties, which in the long run may prove costlier to the filer. (more…)
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Corporate Bankruptcy and the Stigma Attached to It
Filing for bankruptcy is a practice that provides a new lease of life to not just financially struggling individuals but also ailing companies. However, the social stigma attached to bankruptcy may cause more mayhem in the business world. According to Los Angeles, based law firm Recovery Law Group a stigma does exist with corporate bankruptcy. However, there have been many instances where companies have flourished after declaring for bankruptcy. The latest case of Cadillac and General Motors is proof of the stigma attached to corporate bankruptcy. (more…)
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Can People Flourish Even after Bankruptcy?
One of the most common misconceptions about bankruptcy is that it finishes off a person’s finances completely. Nothing could be farther than truth as bankruptcy offers people to make a fresh start. Once a debtor has received a bankruptcy discharge, they can initiate the process of starting over. Unlike popular belief, a person can thrive well after the bankruptcy discharge. According to Los Angeles based law firm Recovery Law Group, these few steps can help rebuild your life after bankruptcy:
Make sure that you live well within your means. Though it may seem impossible in the beginning, you can form a budget and try to stick to it after your bankruptcy proceedings. This will ensure that you pay all your bills on time while managing cash flow well and also saving money to be used in an emergency situation.Though getting credit is important to rebuild your credit history and score, it would be helpful, if you do not rely on credit. This is one of the surest ways to avoid running into financial trouble again. Use credit cards to pay for basic expenses only and pay cash for most of your expenses.
Get a secured credit card to rebuild your credit history and ensure that you make timely payments on it. An alternative way to rebuild your credit rating is to take a car loan or paying off any bills that exist after bankruptcy. Timely payments are reflected in the credit bureau and help rebuild your credit value.
Always read any credit contract before signing it. Signing for mortgages and credit card agreements which were not in your favor had led you previously down the bankruptcy road. Therefore, make yourself aware of credit and debt properly to avoid falling prey to lenders. -
Bankruptcy and its Impact on Divorce and Domestic Support Responsibilities
Financial troubles are more common than people would like to think. More often than not, people opt for bankruptcy which can help reduce the burden of debt on the filer’s shoulders. However, despite bankruptcy, there are certain debts which cannot be discharged. These include government taxes, student loans, and divorce and domestic support. There is contention whether a private contract made between spouses in a pro se divorce case can be considered equivalent to a non-dischargeable domestic support obligation under the U.S. Bankruptcy Code. (more…)
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How to know it’s Time to Consider Bankruptcy?
Misfortune can happen to anyone, at any time. It is important to keep a steady head and look for the best possible solution to your financial troubles. Unfortunate circumstances can cause even the most responsible person to go through a bad financial period. An unexpected long illness, job loss, or expensive divorce can derail even the best people financially. In case you too are going through such a phase of financial struggle and are wondering whether it is time to file for bankruptcy, Sacramento based law firm Recovery Law Group provides you four signs to identify the problem and consult a bankruptcy lawyer.
Clearing Your Debts Using Your Retirement Funds
Your retirement funds are supposed to be helping you in your old age. If you have to dip your hands in this corpus to pay off your debts, you are essentially depriving yourself of a comfortable old age. In case you are considering or have gone ahead with early withdrawal from your retirement funds, things are more serious than you thought. Paying off your loan by using your retirement funds will hurt you in the long run.
Your Balances Refuse to Go Down
Despite making continuous payments with respect to your debts, the amount due is not getting reduced. If the amount you are repaying is merely covering the interest portion of the debt without making any change on the principal amount, you need to consider bankruptcy. If you are unable to fully pay off your debt within 3 years, it would be best if you consult an expert for legal advice regarding your debts.
Family Will End up Suffering if You Don’t File
Managing your debts and caring for dependents of your family can be not only emotionally and physically but also financially draining. If you are finding it difficult to manage both worlds, it is recommended to take care of your debts by filing for bankruptcy. Not only it helps you get rid of your loans, but it also allows you to get a fresh financial start so that you can effectively take better care of your family.
Your Mortgage is Under Water
If you are way over on your debts, your home, and other property might go under water if adequate steps aren’t taken soon. Bankruptcy can help you take care of the above-mentioned problems as:
• It can help wipe out any debt due after foreclosure.
• It can remove a home equity loan or second mortgage.
• It can help remove financial stress and assist you in making on-time payments or obtain loan adjustment so that you can retain your home.
• It can help reduce your debts to make money available to make the mortgage payment.
• Large tax bills due to the cancellation of debt income can be avoided.Every individual has had their shares of financial issues, the circumstances of which may differ from one individual to another. Indicators of financial problems and debts might vary, but it is important to understand the subtle signs and seek help from professionals on time. consulting a bankruptcy lawyer if you face any of the above-mentioned signs is important before things spiral out of hand and you encounter trouble making payments or your income starts getting affected.
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Busting Common Bankruptcy Associated Myths
There are many myths when it comes to bankruptcy; many of which are spread with a malicious intent of scaring debtors into filing for bankruptcy. However, most of them are just myths with no basis for truth. Bankruptcy Laws have been designed to offer people suffering from a severe financial crisis, a fresh financial start. Instead of believing everything you hear about bankruptcy, it is better to consult a good lawyer to sieve through the misinformation circulating around and filter the facts for you. Believing the myths will give you a wrong idea about bankruptcy that can cause you or your loved ones to make errors in your financial journey which will have long term detrimental effects.
To successfully understand the process of bankruptcy, it is important that the bankruptcy myths are properly addressed by experts. Some of the most common myths associated with bankruptcy, as per lawyers of the Los Angeles based law firm Recovery Law Group are:
- Bankruptcy can help eliminate all past debts. Though bankruptcy offers a fresh start, it is not a complete washing of your financial slate and handling you a blank one. Filing for bankruptcy doesn’t mean that you have to pay any money that you owe. Several debts like alimony, child support, student loan payments, restitution payments, etc. are not discharged by bankruptcy and you will have to pay for them. If you have filed your taxes, there may be a chance that related tax debts you have to get reduced or eliminated, otherwise, these debts also remain.
- Bankruptcy permanently destroys your credit. Filing for bankruptcy does affect your credit, but this is temporary and you can rebuild your credit score as well as history post your bankruptcy discharge. Once you have cleared all your dues and get a fresh start, credit card companies approach you with a new line of secure credit cards. It is important to get a low-limit card and make regular on-time payments on them to improve your credit score. Once you have to rebuild your credit history, you can get a regular credit card. However, it is important to make regular payments to not fall back on bad times financially.
- Bankruptcy filers are generally financially irresponsible people. Nothing could be farther from the truth as many times personal problems like unemployment, huge medical bills, expensive divorce settlements can wipe anyone financially. These kinds of financial problems can happen with even the best people. Many people file for bankruptcy due to such financial issues on a regular basis as bankruptcy helps them overcome the financial losses incurred due to no fault of theirs.
- Spending sprees before bankruptcy filing are not be repaid. Going on a spending spree just prior to filing for bankruptcy is viewed as a fraudulent activity by the court. The debts thus incurred are not dischargeable and you will have to pay for them even if you file for bankruptcy. In fact, with such activities, you will have hampered your bankruptcy case and also exposed yourself to criminal allegations. Just because you are filing for bankruptcy doesn’t allow you to go ahead and splurge as you can end up in deeper troubles than you already are.
Though bankruptcy is a no financial cure for all, yet it is one of the best ways to get over troubled financial times. Get a fresh start and regain financial independence by asking bankruptcy lawyers for all options available for you.
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Dealing With Business Debt? Can Chapter 13 Bankruptcy Help?
Many people wish to turn entrepreneurs and often succeed in their endeavors too. However, not every business idea takes you to the zeniths of the sky, some fight falls flat and leave you with a huge debt to clear. In case you belong to the latter category, there is no need to worry if you are looking to reorganize your debts. U.S. federal laws have come up with Bankruptcy Code to help individual and organizations to overcome their financial losses by filing for bankruptcy under various chapters. Small business owners in need of financial assistance can consider Chapter 13 bankruptcy to come up with a repayment plan based on their type of debt, income, monthly expenses, assets you need to keep your home and business in operation. (more…)
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Are Bankruptcy Records Open for All?
Going through a really bad financial crisis can be really traumatic for people. However, bankruptcy laws are designed to help individuals and companies out of the financial mess, so that they can begin their new lives with a financially clean slate. Automatic stays and discharge of debts are a great help to individual consumers who have filed for bankruptcy under chapter 7 or chapter 13. However, despite various benefits like foreclosure defense, debt relief, and financial stability, there are many concerns amongst people regarding their future.
Bankruptcy lawyers of Recovery Law Group , a Sacramento based law firm confirm that many individuals are concerned about the public records of their bankruptcy filing. Bankruptcy filings are public, i.e. they are a part of publicly available court documents and can thus be obtained by anyone from the general public. However, having unnecessary fear about this is not fair as being in public records doesn’t mean that everyone will see them or go out of the way to look for them.
Your Future After Bankruptcy
Despite the best interest of the public in mind, there are many myths and misconceptions associated with bankruptcy. The U.S. Bankruptcy Code was designed to help people struggling with unpaying debts not to punish them for their mistakes and ruin their future. The effects of bankruptcy are limited in time and it rarely affects your ability to obtain any loan, credit or any other financial transactions. In fact, over time, when you improve your credit ratings, these financial hurdles are also removed.
It is a misconception that the general public is concerned with your bankruptcy records. Your filing records (information provided on a credit report) is major of use to creditors and money lenders who use this as a line to assess your financial background for extending loans and credits. Despite the fact that bankruptcy filings can remain on your credit report for as long as 10 years (sometimes less), it does not affect your ability to get credit or loans or improve your credit score. In fact, bankruptcy filers can easily rebuild their credit after bankruptcy by following certain rules.
Get a Fresh Financial Start after Bankruptcy
Filing for bankruptcy is often embarrassing for people. Admitting that their financial decisions were not as sound as they had thought. No wonder, so many people are concerned about privacy when it comes to the bankruptcy filing. It is therefore important to dispel any fear and myths associated with bankruptcy filings. The bankruptcy records are public records technically, however, they remain private mostly. They are used only by creditors who are allowed access to your credit report such as those listed in your case and on any application where you personally disclose the information.
However, more important than fretting over bygones, is to get a hang of things and start improving your financials with a new lease of life thanks to bankruptcy. You have a chance to gain control of your finances, clear your pre-existing dues and make timely payments to ensure you can not only save your home and property but also are able to make efforts to build assets over a period of time. With bankruptcy discharges clearing your way, you can make way for a brighter future for yourself.
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A Concise Guide to Thriving Financially after Bankruptcy
No matter how indebted you were before, bankruptcy offers a chance to every individual and organization to start a fresh with a clean financial slate. However, one of the major concerns of most debtors is how to keep themselves afloat, steer clear of debt and prosper financially after their bankruptcy episode. Sacramento based law firm Recovery Law Group provides some excellent tips for you to flourish even after declaring and undergoing bankruptcy proceedings. (more…)