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  • What Implication does Bankruptcy have on my ESOP?

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    Employee Stock Ownership Plan (ESOP) is offered to employees in a way of ownership for the company they work in. They are beneficial to the company for tax benefits as well as to the employees too. Apart from being a motivating factor for the employee, they are ideal for retirement too. Since ESOPs are like trust funds, employees don’t have much control over the shares till their retirement age, when the shares are vested. Thus, Dallas based bankruptcy law firm https://www.staging.recoverylawgroup.com/ lawyers say, ESOPs are quite similar to 401k and therefore treated like retirement plans i.e. they can be exempted in bankruptcy.

    ESOP and bankruptcy

    All shares in ESOP are kept as a trust fund till the age of retirement or end of the job. When an ESOP is set, a trust is created by the company with yearly contributions in it. through a formula, employees are allotted stock, however, before they can access the stock, it must be vested. ESOPs are treated like any ERISA account, but to be exempted in bankruptcy, it is vital that they pass a two-step test:

    • You need to find out whether ESOP is part of your bankruptcy estate or not. if there is an anti-alienation clause in your ESOP documents due to which you can neither access nor transfer the stock, it qualifies under ERISA. It is therefore excluded from the bankruptcy estate. In some states like Florida, ESOPs are safe if the debtor cannot access the stock even after leaving employment till they reach retirement age.
    • If the debtor’s interest in-stock vests or they can access it on termination of a job, or they can withdraw from it prior to their retirement, then the stock does not qualify under ERISA and is no longer exempted in bankruptcy and becomes part of the bankruptcy estate.

    You need to be sure that your ESOPs are protected in bankruptcy as they are often one thing that you can rely on when restarting your life after bankruptcy. Consulting with experienced attorneys at 888-297-6023 can be vital before filing for bankruptcy.


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

      *Do you own a home?

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      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.

       

    • What Happens to Forbearance Programs in Case of Bankruptcy?

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      Natural calamities such as hurricanes can destroy an entire town and its belongings. In such cases, many mortgage companies offer borrowers who have been affected by these tragedies participation in forbearance program. Under this program, elaborate Los Angeles based bankruptcy law firm https://www.staging.recoverylawgroup.com/ lawyers, the mortgage payments are suspended for a stipulated time period. This can be a boon for people who have been facing financial issues. with the forbearance of mortgage payments, debtors are provided time to get back on their feet before recommencing their mortgage payments. In the case of natural disasters, forbearance programs allow people adequate time to repair or rebuild their damaged home.

      However, many forbearance programs ask the borrower to make their mortgages current by the time the forbearance period ends. This becomes too much of a financial burden on a person trying to get hold of their life after losing everything in the storm. Unfortunately, many people who have chosen to opt for a forbearance program are unaware of this clause. By the time they become aware of any such thing, it is too late for them to accumulate such a huge amount. Risk of foreclosure is high in such cases and therefore it can send many people in deep distress.

      Many times, the borrowers are unable to finish the repair work on their home or don’t have enough insurance to cover the cost of repairs. To keep their home from the snatches of mortgage companies, while trying to build the roof back on the head is not an easy task. Losing their home to mortgage companies once again is worse than losing it the first time to any natural calamity.

      However, there are ways through which you can make your mortgage payments while resisting foreclosure. You can either opt for a loan modification, where all forbearance payments will be combined to form a new principle sum; or you could opt for Chapter 13 bankruptcy. in the latter case, regular mortgage payments can be made every month and you could also make forbearance payments over the 3-5 years period. This is a more affordable option, considering that you can use Chapter 13 to manage your other debts as well. An attorney well versed with bankruptcy and foreclosure can help you in such cases. you can fix an appointment with skilled bankruptcy lawyers by calling 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.

      • Recover from the Setback of Bankruptcy and Lead a Successful Life

        Recover from the Setback of Bankruptcy and Lead a Successful Life

        Call: 888-297-6203

        Failures are a stepping stone to success. The adage could be used for life after bankruptcy too. Despite the ill-conceived notions people have about bankruptcy, it is not the end of the world. In fact, bankruptcy is one of the best ways to get rid of bad financial decisions or bad luck that have held you back from achieving a lot in life. Lawyers of Dallas based bankruptcy law firm https://www.staging.recoverylawgroup.com/ suggest that the best way forward after getting your bankruptcy discharge is to learn from past mistakes. You can lead a successful life even after bankruptcy if you follow these tips:

        • Learn from past mistakes

        Something somewhere went wrong. It is time to remember what mistakes you made which drove you towards bankruptcy and avoid making them a second time. Though it is not essential to beat yourself up for what you had to go through, as unfortunate circumstances could also have added to your misery, it is important that you avoid falling into the same trap again.

        • Plan your budget

        It is important for people to live according to a budget, not just after coming out of bankruptcy, but also as a rule. This way, they can end up saving quite a bit of money for rainy days and avoid bankruptcy.

        • Strive hard to achieve your goals

        Yearning for more is a desire that can make you succeed in life. However, it could also throw you under debt if you don’t manage your finances properly. It is therefore important to set realistic goals and work towards achieving them without adding to debts.

        • Make continuous efforts to improve your credit

        Re-establishing credit after bankruptcy may take time and continuous effort on your part. Initially, you might find it difficult to get an unsecured credit card. You could opt for a secured credit card and use it to pay for utilities, groceries, etc. However, set a limit to the card and ensure that you pay monthly bills on time. this goes a long way to build your credit score, which ultimately results in you getting more favorable terms on subsequent credit cards. You might even get a mortgage or car loan at a reasonable interest rate before 7-10 years.

        • Staying positive

        Losing your morale when everything is going against you is quite easy. however, you need to stay focused if you want to get through this. You must realize that bankruptcy will wipe out your bad debts and give you a fresh financial start. A change in your attitude will make you determined enough to succeed the second time.

        Bankruptcy has turned the fortunes of many people. You too could take charge of your finances and script a success story. Discuss your case with experienced bankruptcy attorneys at 888-297-6023 to know how fast you can recover after 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.

        • Which Deductions are Allowed in Means Test for Chapter 7 Bankruptcy?

          Which Deductions are Allowed in Means Test for Chapter 7 Bankruptcy?

          Call: 888-297-6203

          If you have a huge backlog of debts that you have been unable to get rid of, Chapter 7 bankruptcy is ideal for you. However, Los Angeles based bankruptcy law firm https://www.staging.recoverylawgroup.com/ says that to be able to get your debts discharged through Chapter 7 bankruptcy, you need to pass the Means test. Passing the Means test is an essential requirement for qualifying for Chapter 7 bankruptcy. Since Chapter 7 bankruptcy gets rid of the majority of the debts, prevention of its misuse by high-household income people is essential. Certain expenses are deducted from the income which might help you qualify the Means test. It is also used to calculate your disposable income in case of a Chapter 13 bankruptcy.

          The expenses which are deducted from the household income are essential expenses like food, housing, utilities, and other monthly expenses. These expenses have a predetermined fixed amount as per IRS local and national standards. Apart from these, other expenses which are considered essential and deduction of which can allow you to pass Means test include:

          • The mandatory court-ordered payments including alimony and child support.
          • Childcare expenses such as day-care, babysitting, etc. can be used for deductions.
          • Any expense incurred while taking care of an elderly, ill or incapacitated family member which may include nursing care, personal attendant, medicines, etc.
          • Any monthly amount that you must pay for your term life insurance policy can also be deducted.
          • You can also deduct the monthly mortgage and/or car loan payments you make. However, it is important to keep in mind that the amount allowed is the average of what is due over the next 60 months.
          • If you are expected to pay for compulsory retirement contributions, union dues, etc. by your employer, you can claim that these amounts should be deducted from Means test as these are involuntary employment expenses.
          • Any educational expenses incurred for a disabled child or that required for employment can also be deducted.
          • If you have been regularly contributing for any charitable foundation, these contributions too can be deducted from Means test.

          It is, however, mandatory for you to prove your long history of these expenses if you wish to have some rebate and qualify for Chapter 7 bankruptcy. though individually, the expenses might not be huge, cumulatively, they can add up to an amount which may help you pass the Means test if your income is just above the state median income. If you wish to get rid of your debts through Chapter 7 bankruptcy, experienced lawyers can help find out whether you can qualify for Means test or not. you can schedule an appointment with qualified bankruptcy attorneys by calling 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.

          • What Happens to Reaffirmed Debts in Case of Bankruptcy?

            What Happens to Reaffirmed Debts in Case of Bankruptcy?

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            When you have accumulated huge amounts of debts, bankruptcy is a preferred option. Apart from bankruptcy, other options according to Los Angeles based bankruptcy law firm Recovery Law Group, include debt settlement, debt reaffirmation, etc. When any individual files for bankruptcy, it becomes a public record and appears on their credit report. All accounts mentioned in bankruptcy papers are updated with the status “included in bankruptcy.” However, if you have reaffirmed any debt, and paid it fully, it should not appear on your credit report.

            Reaffirmation of debt takes place when an agreement is drawn between the lender and the debtor with respect to making payments. When a loan is reaffirmed, it is not included in any bankruptcy chapter. Individuals can file under Chapter 7 or Chapter 13 bankruptcy Dallas. Some portion of debts is paid off through repayment plan in case of Chapter 13 bankruptcy, thus, it remains on the credit report for seven years from the bankruptcy filing date. In the case of Chapter 7, no debts are repaid and therefore, this chapter of bankruptcy remains on credit report for ten years from the bankruptcy filing date.

            Any accounts that are included in bankruptcy remain for seven years, either from the bankruptcy filing date or the original delinquency date if the account was delinquent prior to the bankruptcy filing. Thus, after seven years, these accounts are deleted from bankruptcy public records. In case these accounts or the bankruptcy discharge is not removed from the credit report, you need to take steps to ensure they are removed. Having an experienced bankruptcy lawyer can be an asset in such cases as they can guide you through the procedure. If you have not hired any, you can call 888-297-6023 to schedule an appointment for a consultation.

            Rebuilding credit takes time and continuous efforts. Thus, any positive account remains on your credit report for 10 years unlike those included in a bankruptcy, as they are helpful for your credit history. Any reaffirmed loan that has been paid in full with no late payments will also remain on your credit report for 10 years. It is important that you keep your credit report updated to reflect the status of the various accounts in bankruptcy. You can ask the same through government-approved credit reporting agency. Any inaccurate information should be rectified either online, through mail or over the phone. You can use Schedule A, Schedule D, or Schedule F from bankruptcy filing papers to list all debts included in a bankruptcy or reaffirmed debts.


              *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.

            • What Options are Available in Case of Business Bankruptcy?

              What Options are Available in Case of Business Bankruptcy?

              In this age where jobs are few and rare, many people turn entrepreneurs. However, starting your business is a risk. People often take loans to finance their dream. Many times, the lines between business finance and personal finance become hazy. In such a case, it is often difficult to separate the two. This becomes an issue if the business takes a downhill turn. According to Dallas based bankruptcy law firm Recovery Law Group, such an issue can be problematic at personal and business levels. Irrespective of the reason for your financial troubles, bankruptcy is always a viable option. Just like personal bankruptcy, business bankruptcy does not mean that everything is lost. You can continue operating throughout the bankruptcy proceedings.

              If you wish to reduce the financial stress on your business and want to move ahead in life, the best logical option is filing for bankruptcy. You can move on to the next better idea once you have gotten rid of unnecessary dues holding you back. Consult with expert bankruptcy lawyers at 888-297-6023 to find out which chapter of bankruptcy would suit your case. Business bankruptcy can be filed under three chapters depending on your unique circumstances.

              • Chapter 7–Corporations, partnerships, LLCs, and sole proprietors have the option of filing for bankruptcy under this chapter. People and business organizations who wish to get rid of their debts can opt to liquidate their non-exempt property to pay their creditors. State and federal exemptions can be used to protect business and personal property during the bankruptcy process.
              • Chapter 11 – This option is available for publicly traded and large-scale business organizations. In this case, banks and creditors prefer to cut the loss as the time taken in the reorganization is too much.
              • Chapter 13 – If you wish to continue operating your business while going through bankruptcy to get debts discharged, this is the best bet. This chapter of bankruptcy allows you to create a payment plan through the court where you can repay your creditors over a period. With Chapter 13 bankruptcy , you can also protect all your assets while getting rid of personal liability entirely.

              Though people can file for bankruptcy without a lawyer, business bankruptcy cases can be quite typical. It is therefore recommended that you choose an experienced bankruptcy attorney to handle your case efficiently.


                *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.

              • The Basics of Chapter 13 Bankruptcy Cramdown

                The Basics of Chapter 13 Bankruptcy Cramdown

                Chapter 13 bankruptcy allows you to reduce the principal balance on a debt to the value of the property in case of secured debt. This is known as cramdown and can help save your debt on real estate investment, car loan and some other properties. Dallas based bankruptcy law firm Recovery Law Group, inform that cramdown can be an asset to reduce the debt on certain secured loans. To know more about cramdown, contact expert bankruptcy lawyers at 888-297-6023 and discuss about your case.

                Secured debts are those assets against which the creditor has collateral. These include car loans and mortgages. Some secure debts can be reduced by cramdown, such as car loan, investment property mortgages or any other personal property (apart from real estate) like furnishings and household goods, etc. However, cramdown is not available on your principal place of residence.

                In case your vehicle is worth $5,000 but you owe $10,000 in the loan, you can ask for the cramdown of your loan to the value of the car through your Chapter 13 repayment plan. The remaining amount after cramdown is converted into an unsecured debt and treated in a similar fashion, i.e. discharged at the end of your repayment plan. Thus, you own your car after the end of your bankruptcy.

                Advantages of cramdown

                There are numerous advantages associated with the cramdown of the loan in Chapter 13 bankruptcy. You can reduce the interest rate and lower your monthly obligations by stretching the payment over a longer period. The interest rate paid to creditors depends on the bankruptcy court and can be lowered than the note rate, thereby reducing the payments you make.

                Restrictions

                Considering the advantages cramdown has for people filing for bankruptcy, it is expected to have a few restrictions to prevent people from reducing the repayment amount for recent purchases. These include:
                • 910-day rule
                For cramming down your car loan, the car must have been purchased a minimum of 910-days (nearly 2.5 years) prior to filing for bankruptcy. This is to prevent new vehicle owners from cramming down on their loan immediately after buying the vehicle.
                • One-year rule
                Like the 910-day rule for cars, this rule is for personal property. You can cramdown loans on household goods that have been purchased at least one year prior to bankruptcy is filed.
                • Investment property mortgages

                Any loans which are crammed down need to be paid within the time frame of the Chapter 13 repayment plan (3 to 5-years period). This is a practical problem for people who cannot afford to even pay then mortgage of crammed down loans in the specified period.


                  *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.

                • A Guide to Private Student Loan Discharge in Bankruptcy

                  A Guide to Private Student Loan Discharge in Bankruptcy

                  Changes are being made in the bankruptcy laws. While earlier, private student loans were treated in a manner different from federal ones, it is no longer true now. Before 2005, private student loans were treated as unsecured debts and were discharged at the end of the bankruptcy, unlike federal student loans, which required one to show undue hardship to get them discharged. In 2005, Congress made amendments due to which private student loans were to be treated similar to federal student loans. Due to this development, discharge of student loan (with few exceptions) can take place only on proving undue hardship is caused (to you or your dependents) on repayment of the loan. Thus, private student loans can no longer be treated and discharged as unsecured loans and need to meet the criteria of undue hardship to be discharged.

                  What is “undue hardship” criteria?

                  According to Dallas based law firm Recovery Law Group, undue hardship is a bankruptcy standard for discharging of federal student loan and post-2005, private student loan too. According to Bankruptcy Code

                  • Section 523(a)(8), “Unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents, for –
                    • (A)(i) an educational benefit overpayment or loan made, insured, or guaranteed by the government unit, or made under any program funded in whole or in part by a government unit or non-profit institution;
                    • (A)(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
                    • (B) any other educational loan that is a qualified educational loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual.”

                  These exceptions are applied to all federal as well as private student loans. However, proving undue hardship is easier said than done. Numerous federal courts have used a three-pronged approach to test the undue hardship claimed by bankruptcy applicants. The Brunner Test developed after the Brunner v. New York State Higher Educ. Servs. Corp., 831 F. 2d 395 (2d Cir. 1987) is extensively used to check the undue hardship criteria.

                  Brunner Test

                  As per this test, the debtor needs to show that:

                  • He/she cannot maintain a minimum standard of living (with their current earnings and expenditure) for themselves and their family if they have to repay student loan;
                  • Additional circumstances which are likely to continue for a period of time interfere with the repayment of student loans; and
                  • The debtor had previously tried to repay the loan in good faith.

                  The bankruptcy court reviews your earnings and expenses to determine the minimum amount of money required to maintain a minimal standard of living in case you pay your student loans. Your current situation is analyzed to determine any improvements which can be experienced over the repayment period. Lastly, your payment history is studied by the court over the time frame of student loans; if you had made attempts to reduce your expenses and find better or any extra source of employment.

                  If a debtor is able to meet the criteria of the Brunner test, it shows a degree of hopelessness, hopefully leading to the discharge of student loan debts. It must be kept in mind that even if you can’t or don’t meet all the above-mentioned criterion to get entire student loan discharged, some courts might allow partial discharge of student loans. It is important that when you file for bankruptcy, you must be mentally prepared for the student loan debt to survive as meeting the Brunner test for proving undue hardship is very difficult to meet. While previously private student loans were discharged like any other unsecured loan, now they too have tough standards like a federal student loan.

                  Are there exceptions to the undue hardship clause to student loan discharge?

                  To have your student loan discharged, you have to meet undue hardship standard. However, there are some exceptions, such as luring you into taking a course which would not benefit you as much as it was advertised. In case the private student loan was not for a competent higher education expense or was for an educational institution which is not eligible, then there are chances that it can be discharged. If you have a student loan for an unaccredited school, it can be discharged in Chapter 7 bankruptcy. An unaccredited school does not qualify to be governed under the same rules used for accredited schools. You are also allowed a discharge if the school falsely certified your eligibility for the course. Any school certifying to the education loan needs to ensure you meet the necessary requirements. If they fail to do so and you are certified for a loan, such loan can be discharged during bankruptcy. If a course required a clear criminal background, then a person with prior felony convictions cannot have benefitted from such course, thereby resulting in the loan discharge.

                  Automatic stay benefit

                  One of the best advantages of bankruptcy filing is the grant of the automatic stay, which stops all creditor action of collection. This stay is in place for the entire duration of bankruptcy, irrespective of whether you get a discharge or not. Thanks to the automatic stay, even the government cannot opt for wage garnishment or withhold transcripts for any unpaid tuition fees. However, it does not prevent student loan creditor from preparing for the availability of future loans in the hope that loans prior to bankruptcy filing will be cleared. The creditor, alternately, can also file a motion to lift the automatic stay during bankruptcy proceedings. In case, the court agrees to the creditor’s plea, the latter can continue with collection actions.

                  If you are worried about debt discharge in case of an ongoing bankruptcy case, consult 888-297-6203 to know your options about student loan discharge. The Federal Rule of Bankruptcy Rule 7001(6) states that you or your attorney can file an adversary proceeding against your student loan creditor. The timing of filing such an action depends on which chapter of bankruptcy you have filed (Chapter 7 or 13). Majority jurisdictions allow you to file adversary proceedings wither during your bankruptcy case or even after the case has ended.

                  Choosing an experienced bankruptcy lawyer can make a huge difference to your bankruptcy case, especially if you want to get student debt loan discharged. Since bankruptcy rules are quite complicated, making any error can have grave consequences. Managing student loan debt is quite important. You can either opt for bankruptcy, student loan consolidation, or repayment. Whatever your choice, consultation with expert bankruptcy attorneys can open numerous vistas to get student loan debt discharged.


                    *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.

                  • Tax Mistakes to Avoid While Filing for Bankruptcy

                    Tax Mistakes to Avoid While Filing for Bankruptcy

                    Liquidation can frankly be quite overwhelming and confusing for an average person. Filing for taxes while considering bankruptcy (either Chapter 7 or Chapter 13) is double trouble. In case you are confused regarding tax filing during the trying times of bankruptcy filing, you can call expert bankruptcy attorneys at 888-297-6023 to find out about your options.

                    Out of the two possible chapters under which individuals can file for bankruptcy is Chapter 7. This results in the discharge of all unsecured debts like a credit card, medical and even income tax debt in rare cases. Under Chapter 13, you are expected to make payments to the bankruptcy attorney as per the prescribed repayment plan for 3-5 years. After payment to creditors like income tax agencies and IRS, etc. the remaining unsecured debts are discharged post the repayment plan.

                    Thus, filing for income tax is extremely important as per Dallas bankruptcy lawyers Recovery Law Group . As per U.S. Bankruptcy Code, before the commencement of bankruptcy case, the debtor’s recent tax returns are required. In fact, the returns for the past 4 years can also be required. The timing for filing bankruptcy needs to be perfect if you wish to make things easier for you.

                    However, there are certain tax mistakes you should steer clear of if you are considering filing for bankruptcy.

                    1. Take care of any refund

                    Refund on taxes that you have received prior to filing for bankruptcy, might be seized by the government. In case you might be on the verge of getting a refund, protecting it through bankruptcy is the best option. Certain expenses like spousal or child payments, health care, etc. are essential debts and can be taken care of by the refund you have received. Consulting with an attorney can clear things up.

                    1. Transferring your money to protect it is a no-no

                    Under federal law, non-disclosing of monetary assets during bankruptcy is a violation and is considered perjury. If you are looking to avoid prison, don’t try to hide property in someone else’s name. An experienced bankruptcy attorney can help you with ways to protect your saved money during bankruptcy, without breaking any laws. Disclosing your assets to your attorney can easily help save them legally.

                    Unlike popular perception that property not under your name cannot be touched by the court, bankruptcy has a weird way of handling things. Any assets transferred to family or friends prior to bankruptcy filing are seen as ways to protect them. This often causes the court to take harsh steps which include voiding the transfer to have the property back in your name or worse, dismissing of your bankruptcy case. In the case of latter happening, you will be required to refile the case which will result in additional fees and letting go of the automatic stay benefit.

                    1. Delay paying back relatives

                    During bad times, family and friends are often there to lend a helping hand. Often people feel obliged to repay them as soon as possible. However, if you are considering filing for bankruptcy, paying your relatives back might not be the brightest idea. Any payment made from tax refund will appear as one favoring a particular creditor over others. This may result in the bankruptcy trustee taking back the payment made to the relatives. If you wish to make any such payments, consult a bankruptcy attorney before going ahead with it.

                    Family and friends are considered “insiders” and any payments made to them 1 year prior to filing for bankruptcy are considered preferential. An amount larger than $600 made to any relative within 1 year prior of bankruptcy filing will become a part of your bankruptcy estate. Any payment made to any creditor of over $600 in the preferential transfer period (1 year for family and relatives and 90 days for non-family creditors) needs to be disclosed.

                    1. Do not make payments above $600 to unsecured creditors

                    Any payments made within 90 days prior to bankruptcy filing need to be disclosed, especially if they are above $600. The bankruptcy trustee is bound to go through the records to see what payments were made. In case you wish to pay off some debts, prioritization is extremely important. Secured debts like mortgage payments or car payments, etc. should be your priority. Most unsecured debts like credit card and medical debts, etc. are discharged after bankruptcy. It should, therefore, be kept in mind that you shouldn’t pay off secured debts through unsecured debts like a credit card. Before making payments to any creditor, discuss with your attorney to understand the ramifications of your actions.

                    1. Avoid buying luxury goods

                    Since your spending habits will be studied extensively by the bankruptcy trustee, it makes sense to avoid overspending on unnecessary items like luxury goods, etc. when you are considering bankruptcy as a way out of the financial mess. These purchases and foreign holidays are things which will work against you during the bankruptcy process.

                    Holding on to tax refunds during bankruptcy is the best option. Having an experienced bankruptcy attorney by your side can work wonders for you. You can use the tax refund to pay the bankruptcy fees so that you get some respite from adverse creditor actions.


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

                      *Do you own a home?

                      Are you currently working?

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                    • Advantages of Filing Bankruptcy For Cancer and Other Medical Debts

                      Advantages of Filing Bankruptcy For Cancer and Other Medical Debts

                      The deadly impacts of cancer on an individual’s life are well known by everyone around the globe. In America, cancer is a widespread disease that has taken a toll on many lives. Curing cancer requires a hefty amount of money which leads people to numerous debts. Apart from routine medical aids, people often resort to various emotional and psychological assistance during their treatment which further increases the financial burden on them. This whole procedure continues for a long period of time and the health finances do not cover all these bills which mean that people take debts to fulfill their medicinal requirements.

                      As per the data presented by the California cancer registry, there are about 1.45 million cancer cases in California which mean approximately 20 cases per hour per day. Whereas, in Los Angeles, the number of cancer cases is about 38000 every year. All these data and studies show that every second person born in these parts of America suffers from cancer disease at some point or the other. These circumstances lead most of the families into great financial problems due to their inability to pay such huge medical bills. However, with the help of a well-learned bankruptcy attorney, you can get back to normal with least friction. For any such assistance, you can visit Recovery Law Group or call 888-297-6203.

                      How cancer leads to financial perils?

                      Cancer treatment involves medical as well as chemical treatments. When someone is diagnosed for cancer, first of all, he or she is treated through medicines that are very costly plus they are needed for a long amount of time which means that the expenses are large and steady. Apart from medicines, successive treatments involve several rounds of chemotherapy and radiotherapy which again cost a lot. Each round of these therapies costs quite much for an individual to bear. Thus, overall expenses during cancer treatment include medicines, therapies and surgeries are expensive. Apart from these costs, there are post-treatment expenses too which are again not a small amount to bear. Some of these costs are borne by the health insurance but for the rest, people have to borrow money from the lenders or the relatives which makes them indebted.

                      Verification of bills can help you save a bit:

                      It is highly recommended that you verify all your medical and treatment bills for various therapies and services before making the final payment to avoid any extra payments due to any discrepancy. You must look into the bills properly so as to check that you are being charged only for those services that you have taken and not any extra ones. All the expenses must be properly quoted on the bills. Also, consult your insurance agent to verify if they are providing the promised amount of money as per the insurance scheme or not.

                      What can be your options to overcome these financial perils?

                      The first option to balance your finances could be an extra job that can help you with your medical expenses. However, this option is very difficult for most of the people as a person who is going through cancer treatment, it is very difficult to work extra hours due to physical and mental fatigue caused by the disease and its treatment. You can also rebuild your budget so as to remove unimportant expenditures. This will help you to a certain extent.

                      Next option which most people prefer is borrowing money from relatives or lenders to pay for their medical expenses. However, most people resort to borrowing money from their well-wishers as for borrowing it from a lender requires them to fulfill the respective eligibility criterion to which most of the people fail.

                      Next option could be to reduce the size of your home to get some extra source of income. However, this option is helpful only to those people who have large home equity otherwise this would not be a good idea too. Apart from selling your housing equity, you can also rent or sell the other expensive belongings that are not of much need to you. You can consult an auction house or any consignment company for this purpose. These things might include a yard, a vehicle, etc.

                      Last option can be bankruptcy. This is the option to which the majority of people resort to when any of the above-mentioned options fail to fulfill their overall medical expenses. It is a wise decision to opt for bankruptcy for those who are already under debt as it provides some additional benefits to such people.

                      Is bankruptcy beneficial for the family?

                      For people who are already indebted and need more money for getting through their medical expenses for cancer treatment, it is a good option to file for bankruptcy. This will help them to reduce extra stress and hopelessness. It also assists the family of the cancer patient during the times of crisis. As per the American Institute of bankruptcy, a total of 1 million people in America file for bankruptcy per year.
                      Filing for bankruptcy can help in putting a pause on disturbing calls from creditors and thus relieving you from any harassment during treatments. Apart from this, it also provides a proper action plan so that you can get through your debts in a well-mannered way. This reduces the stress level of the cancer patient and their relatives who are already suffering from the mental trauma of disease and its treatment.

                      Working of bankruptcy explained:

                      If you are unaware of how bankruptcy actually works to help you with your financial crisis, then you must first understand the working of bankruptcy. Those who have a job can file for bankruptcy under chapter 13 which provides them with proper financial and budget planning. Such planning can help you in managing your expenditure in a wise manner with least useless expenses. Also, there might be chances of getting rid of some of the debts that include medical debts.
                      If you qualify and file for bankruptcy under chapter 7, then there are high chances that most of your debts are discharged. For proper guidance, you must consult a bankruptcy attorney who will suggest you the best option depending on your situation.


                        *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.