Making a few bad financial decisions, or falling in hard times can cause any person to lose their self-worth. However, just because you are down due to debts, doesn’t mean that you do not have any rights in this situation. According to Sacramento based Recovery Law Group lawyers, protections have been put in place to make sure that you don’t have to deal with unruly and disturbing collection practices made by creditors and collection agencies. The most important protection extends to your mobile phones. (more…)
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Are Debt Collectors Discriminating Against You and Treating You Unfairly?
Things can be really tough for a person if they start having financial issues. Not only do people stop extending support, but your creditors can also turn devilish overnight. Ruthless times require brutality and debt collectors are not behind when it comes to collecting their dues. They can be very cold-blooded to get hands on the money you owe them. Despite the provision of The Fair Debt Collection Practices Act (FDCPA), enforced by the Federal Trade Commission (FTC), to protect the consumers, some debt collectors will leave no stone unturned to get what is due to them. If you think you are being unfairly treated by a debt collector, but are unsure whether the actions are illegal or not, you can consult collection attorneys. According to Sacramento based law firm Recovery Law Group, the most common violations done by debt collectors include: (more…)
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Federal Bankruptcy Exemptions Details
It is not necessary that you lose all your property when you file for bankruptcy. While filing for bankruptcy, it is therefore important that you are aware of the exemptions allowed by the state as well as federal government under various chapters. This is important to salvage as much of your assets as you can. You should know the details to choose the best exemption to save your property. Some states offer you a choice between state and federal bankruptcy exemption, however Sacramento requires you to choose the state exemption only. In case you reside in any other state, you can use the federal bankruptcy exemptions to protect your property. It is important to know that federal bankruptcy exemption amounts vary every 3 years.
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What is Homestead Exemption Bankruptcy?
Filing for bankruptcy is traumatic and shameful for many people. However, it doesn’t mean that you lose all your belongings when you file for it. Homestead exemption can help protect your home from going under the hammer, if it has more value than what you owe to the debt lender. If you file for bankruptcy under chapter 7, the bankruptcy trustee won’t sell your home if homestead exemption covers entire equity. In case you file under chapter 13, you get to keep your home but have to pay your creditors, as per your repayment plan, an amount equalling the non-exempt equity (the portion which isn’t covered by exemption) (more…)
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Everything You Wanted to Know About Non-Exempt Property Bankruptcy
Property which isn’t protected in bankruptcy is known as non-exempt property. This doesn’t mean that you will lose everything you own in life when you file for bankruptcy. The entire purpose of bankruptcy filing is to offer a fresh start to people who have had some financial troubles. As per your state’s exemption statutes, you can protect all property listed in it as well as things you will require to maintain a home, such as:
- Modest amount of equity in car
- Household fixtures and clothes
- Tools needed for your profession
- Your retirement account
As per Los Angeles based law firm Recovery Law Group any property that is not mentioned in the exemption list comes under non-exempt property. The course of action taken for non-exempt property depends on the chapter under which bankruptcy is filed.
Fate of Non-Exempt Property in Chapter 7 Bankruptcy
When you file for bankruptcy under chapter 7, the court appointed bankruptcy trustee sells your non-exempted property to pay off your creditors. The trustee uses the sale proceeds to clear any pending bills as per bankruptcy laws. Priority is given to domestic support (child or spousal support) and tax debt. In case there are no priority debts, the non-priority unsecured debts like credit card balance, utility bills and personal loans are paid off by the trustee.
Fate of Non-Exempt Property in Chapter 13 Bankruptcy
The non-exempt property is not sold off by the trustee in this case, but you are expected to pay your unsecured creditors, an amount equal to the value of your non-exempt property. Unsecured creditors are those whose dues aren’t assured by collateral. For example, if you are unable to exempt an asset or a timeshare of half its value, you will be required to pay your unsecured creditors an amount which is the sum total of both, over a 3-5 years repayment plan.
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Know More About Chapter 7 Bankruptcy Exemptions
Bad financial decisions may lead to economic problems. Filing for bankruptcy under Chapter 7 may provide you relief from your debt collectors. However, in the process you might end up losing some of your property. However, all is not lost as people who file for bankruptcy under chapter 7 are allowed to keep certain full exempt property. Exempt property is protected from creditor’s claims by the law. Some states like Colorado allow property to be exempt only under state law. Exempted property includes a portion of or the entire unpaid wages, household furniture, personal effects and home equity.
In case you have incurred medical or credit card bills or taken personal loans which you find yourself unable to repay, there is no need to worry. You can file for chapter 7 or “liquidation bankruptcy”, which is one of the simplest and quickest way to take care of such issues as per Los Angeles based law firm Recovery Law Group.
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Bankruptcy Exemptions: An Overview
Filing for bankruptcy is a last resort for many people struggling immensely with financial issues and non-payment of dues. In this trying time, bankruptcy exemptions play a massive role in both chapter 7 & chapter 13 bankruptcy. While exemptions in chapter 7 bankruptcy help determine how much property can you keep, those in chapter 13 are used to keep your repayment plan payments low. Before delving deeper, it is important to know about bankruptcy exemptions. (more…)
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Know More About Chapter 13 Bankruptcy Exemptions
Bad financial decisions can cause a change of fate. This can happen to anyone, anytime. Filing for bankruptcy offers a way to salvage not just your property but also allows you to get a fresh start. Bankruptcy can be filed by an individual or company under various chapters. Chapter 13 or wage earner’s bankruptcy is for people with a steady source of income. Like other chapters, exemptions are available under chapter 13 reimbursement proposal. They are also helpful in calculating the amount that the debtor will pay. Under chapter 13 bankruptcy, one can keep all their property, but they are required to pay their creditors the value of all things not covered under exemption within a 3-5 years frame. (more…)
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Chapter 7 Bankruptcy: Can You Keep Your Car under Motor Vehicle Exemption?
Unlike popular belief, you do not lose all your possessions when you file for bankruptcy under chapter 7. Thanks to exemption laws, you can protect property including an unassuming vehicle (car, truck, motorcycle or van). Thanks to your state’s motor vehicle exemption you can protect a certain amount of equity in a car. If you completely own your vehicle (i.e. have cleared all vehicle payment dues or are up-to-date on them) you can take measures to avoid the lenders repossessing your car. In case you lag on your car payments you will have to come up with a plan to bring your payments current before filing for bankruptcy, if you want to have a chance to keep your car. (more…)
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Worried About Bankruptcy? Here’s an Overview of Exemptions Granted during Bankruptcy
What if an investment you thought was your ticket to millions causes your downfall? Unable to pay your debts, many people and/or companies file for bankruptcy which offers them a lifeline. Your assets and liabilities are assessed by court trustees and judges to conclude whether your debts could be discharged. However, there are some bankruptcy exemptions too, which are used to determine how much property you can keep.