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  • You Might Have to Face These Questions from Bankruptcy Trustee

    You Might Have to Face These Questions from Bankruptcy Trustee

    Filing for bankruptcy results in a lot of paperwork. You need to ensure your income; assets and your debts are in order. Filing for bankruptcy results in a creditors meeting (also known as 341 hearing) where you are required to provide confirmation for any information you have given.  The meeting is attended by you and your attorney, your bankruptcy trustee and even your creditors. According to Dallas based bankruptcy law firm Recovery Law Group, the bankruptcy trustee can ask you questions to find out details of your bankruptcy estate. The entire proceeding takes place under oath, so you should avoid lying or you might end up perjuring yourself. Having a consultation with expert bankruptcy lawyers at 888-297-6023 will help you prepare for your 341 meetings.

    Some of the most common questions your bankruptcy trustee might ask to include:

    • If you are familiar with the information provided in your bankruptcy paperwork?
    • If all the information provided in bankruptcy papers is complete and accurate?
    • Have you listed all your property in the papers?
    • Have all your creditors been listed in your bankruptcy schedule?
    • Have you reviewed and signed the bankruptcy petition and schedules prior to filing them?
    • Have you filed for bankruptcy earlier?
    • What is your gross monthly income?
    • Do you wish to make any changes in your papers?
    • Are you paying any alimony or child support?
    • Have you filed previous tax returns?
    • Have you made any transfer of property within the last two years?
    • Have you made any new charges to your credit cards?
    • Which creditors have you paid within a year of your bankruptcy?
    • Have you had your property valued?
    • What method did you use to get your property valued?
    • Is your car or home insured?
    • Do you have business, corporation or partnership?

    Having a bankruptcy attorney can be an asset as they can help you deal with the entire process of bankruptcy including the questions asked by the trustee. They can help you by –

    • Gathering documents related to your case.
    • Help to prepare the paperwork essential for the 341 meetings.
    • Submit related documents before the trustee either before, during or after the hearing.
    • Manage financial information for you including your assets and expenses.
    • Ensure that all your paperwork is accurate, complete and compliant with the state laws.
    • Answer all questions asked by bankruptcy trustee during the meeting.
    • Try their best to minimalize your financial loss.


      *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.

    • Questions to Ask a Bankruptcy Attorney Before Filing

      Questions to Ask a Bankruptcy Attorney Before Filing

      Bankruptcy can be trying times for people struggling to make ends meet. Though you can file for bankruptcy on your own, Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/ suggest that you hire an expert bankruptcy attorney to help you with your case. Despite a lot of information regarding bankruptcy is available online, it is important that you ask the following questions with any potential attorney you wish to hire for handling your bankruptcy case.

      • Which chapter of bankruptcy would work best for you?

      Individuals can file for bankruptcy under Chapter 7 or Chapter 13. To qualify for Chapter 7, you should be able to pass the means test. According to this, your average income should be less than the state median for a household of similar number of members. Chapter 7 is preferred as it takes relatively smaller timeframe to get a discharge. Any non-exempt property you have is liquidated to pay your creditors and remaining unsecured debts are discharged at the end of the bankruptcy case.

      If you are unable to pass the means test, Chapter 13 is an option. For this case, you need to have enough income to support a repayment plan, where your disposable income will be used to clear your debts over a period of 3 to 5-years. Additionally, if you have more equity in the property than can be exempted, Chapter 13 allows you to keep the non-exempt property if you pay unsecured creditors an amount equal to the value of the non-exempt property. An adept bankruptcy attorney can help in determining which chapter would be best for you.

      • Which assets can be protected during bankruptcy?

      Anything you own including your property and any assets becomes part of your bankruptcy estate. However, federal and state government provide exemption through which you can protect your property. A qualified bankruptcy attorney Los Angeles can help you in protecting most of your assets when you file for bankruptcy. This includes any foreclosure or repossession from creditors.

      • What happens in the case of preferential payment?

      If you pay any creditor at the expense of another, this might be considered a case of preferential payment, which is not looked upon kindly by the court. An experienced bankruptcy lawyer can distinguish between the payments made by you to all creditors, to determine whether any of them can be considered preferential. If there are any such payments made, they might also find ways to rectify them.

      • What is the 707B objection?

      Sometimes, the bankruptcy trustee might object to Chapter 7 filing of a debtor. This may be due to the high income of the debtor, which makes them a better candidate for Chapter 13 bankruptcy. Generally, your income and the type of your debts are considered while deciding on the bankruptcy chapter. Higher-income generators have a better chance of paying their debts and therefore in such cases, Chapter 7 bankruptcy is rejected in favor of a Chapter 13 bankruptcy. Expert bankruptcy lawyers at 888-297-6023 can help you with your 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.

      • Avoid Making These Mistakes During Bankruptcy Filing

        Avoid Making These Mistakes During Bankruptcy Filing

        A common man does not always think of preparing for the worst. Therefore, many people are often at their wit’s end when difficult financial situation plagues them. Though bankruptcy is the best option to get rid of unsurmountable debts, Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/ confirm people are often unaware of what they should or shouldn’t do when filing for bankruptcy. Having an adept bankruptcy attorney by your side can be an asset during tough financial times. Contact 888-297-6023and consult with the best legal minds to know what to do prior to a bankruptcy filing.

        It is very important to keep in mind to avoid doing the following if you are thinking of filing for bankruptcy:

        • Transferring assets (money or property)

        If you are thinking of filing for bankruptcy, it is important that you do not transfer any money or property to relative or friend. Anything and everything you own becomes a part of your bankruptcy estate. The trustee assigned to your case goes through all the documents with a fine comb. Such transfers of assets are considered means of hiding so that the property could not be included in your bankruptcy estate; especially if you give it for free, or at less than the fair market rate, or within a stipulated time frame. If the court feels that you have been hiding assets, it will get them back when you file for bankruptcy. You can make use of various federal and state exemptions to protect your property instead of opting for transferring it.

        • Being selective while paying creditors

        Having a proper payment schedule prior to a bankruptcy filing is important. if the court finds evidence that you have made payments to some creditors while ignoring others, your chances of the bankruptcy case are ruined. Moreover, you could be facing lawsuits from other creditors. Bankruptcy trustee also has the right to sue those creditors who seem to have benefited from preferential payments. All of this can add to your financial woes.

        • Unaware of your income sources

        It is important to have a record of all your income as this forms an integral part of your bankruptcy filing Dallas. Your business and personal account should be separate for clarity of income and expenditure. If you are aware of your income sources and can provide proof supporting your statements, you won’t have much issue during 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.

        • The 10th Circuit rules

          The 10th Circuit rules

          The 10th circuit court rules reprimand that the tax debt may not be exempted for the client under Chapter 7 if the income tax return is filed late. Income tax return debt can be discharged under chapter 7. However, it needs to fall under certain criteria. The income tax returns are a mandatory procedure that citizens of the USA need to follow every year. Tax debts can be huge, and the clients may seek discharge. You can visit Recovery Law Group for good advice.

          The income tax return debt can be discharged under Chapter 7 when-

          1. The tax debt is income-based for either State or Federal.
          2. The income tax return was last filed 3 years before applying for bankruptcy.
          3. The debtor filed the last return 2 years before applying for bankruptcy. This is under discussion in the 10th circuit rules. Whether to consider 2 years as late for filing a tax return to avail discharge in a bankruptcy case filed under chapter 7 bankruptcy.
          4. The income tax department must have evaluated the client’s tax returns 240 days before filing for bankruptcy.
          5. The debtor must be true and not dodging the tax laws by not filing at all or filing a fraud or dupe return.

          What does file of late tax return mean under the 10th circuit rules?

          When the client files his tax return 2 years before applying for bankruptcy it is considered as a late return. However, this point is still debatable and is under modification stage. A tax return is considered a late return when the IRS files a substitute return when all the debtors’ filing dates are expired. Apparently, a tax return may not be considered late if the IRS files the substitute tax return with acknowledgment of the debtor.

          The 10th circuit court rule may not consider the tax return ‘late’ payable 2 years prior the filing of bankruptcy if a substitute returns is filed with acknowledgment under Internal Revenue Code Section 6020(a). The client’s tax debt can be exempted as per the 10th circuit rule if the client is within this parameter.

          The final verdict

          Since, it’s still debatable, the case may go to the US Supreme court for the further outcome. However, for now, it is established that the tax return is late if the IRS files a substitute tax return within 2 years of applying for bankruptcy. Subsequently, the client will not acquire discharge on tax debts, even under chapter 7. You can receive more information by calling on-(888-297-6203).


            *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.

          • Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

            Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

            When a person applies for bankruptcy under chapter 7, in Los Angeles, most debts are cleared. The debtor is no longer obliged to the creditors. However, a debtor can keep a loan agreement if he/she wills to save that particular property. Usually, all the property and valuables are sold to clear the debt under chapter 7. If the debtor wants to retain any property, be it their house or car; they can continue to follow the loan agreement towards that house to the creditor. For more advice do log in to Recovery Law Group.

            Reaffirmation

            The process of retaining the mortgage is called reaffirmation. When a debtor reaffirms a debt, he/she affirms to owe the debt after the bankruptcy case ends. The debtor is under the same contract with the creditor and continues to pay the same installments against the mortgage. The loan agreement between the debtor and creditor will behave in the same manner and will not be likely affected by the bankruptcy case.

            The creditor can seize the property if the debtor fails to repay the loan if he/she reaffirms a loan agreement. On the contrary, the creditor can have no effect whatsoever on the debtor if he/she does not reaffirm a mortgage. Hence, it’s advisable not to reaffirm a mortgagee, whilst filing a bankruptcy case under chapter 7.

            Can a debtor Refinance a loan that is not reaffirmed?

            Not reaffirming the mortgage and still upholding the discharged loan, the debtor cannot ask the creditor to refinance his mortgage. Once the debt is discharged, the creditor has no say in the mortgage process. The creditor has to be contented with little or no pay directed by the court. So, if the debtor asks for refinancing a discharged loan to the creditor, it violates the bankruptcy rule. The debtor cannot ask the same creditor for refinancing but can request other lenders to refinance his mortgage.

            Is reaffirmation a viable option to secure a property under debt?

            A reaffirmation agreement in Chapter 7 bankruptcy law must be approved either by the bankruptcy judge or by the bankruptcy lawyer. However, both the bankruptcy judge and lawyer sways clear off reaffirmation, stating that it may put unreasonable implications on the client. A client can retain his/her house without the reaffirmation agreement.

            • Bankruptcy court certification

            The bankruptcy judges do not advocate loan agreement reaffirmations. The court allows the debtor to keep the mortgage, so long as he/she follows the timely schedule of paying to the creditor. It argues reaffirmation as unnecessary. The only likely benefit of reaffirming a loan agreement is a healthy credit score. And the court feels it unnecessary to burden the debtor with reaffirmation for a mere healthy credit score.

            • Bankruptcy lawyer’s certification

            The bankruptcy lawyers also do not advocate reaffirmation. Since they feel that the court does not support reaffirmation, if they advocate for it, they may be obligated to the process of the loan agreement. They do not want to take the responsibility of their client in reaffirming a mortgage. If they sign the reaffirmation agreement, they may be liable, if the client defaults, causing unnecessary complications.

            Loan agreements or mortgages are not necessarily reaffirmed in bankruptcy under chapter 7. The debtor can refinance the loan agreement discharged in bankruptcy by other financiers, without reaffirmation. For more information call on (888-297-6203)


              *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.

            • Status of Co-Owned Homes in Bankruptcy

              Status of Co-Owned Homes in Bankruptcy

              There is some shared inheritance by siblings who have equal rights on that property. While the land can be measured and equally divided, the inheritance of the house offers no such luck. It cannot be divided, albeit it can be sold, and the money can be equally shared. Some people are emotionally close to their inherited house and stay in them, while other siblings may move on. What happens when the other sibling files a chapter 7 bankruptcy case? For consultation do log in to Recovery Law Group.

              The property comes under scrutiny and needs to be sold to pay off the loans. What is there for the co-owner at this stage? There are few options that the co-owner can employ, that can save their right on the inherited home.

              1. The other owner can buy a shared part of the home and be the sole owner of the house. The money can be used by the trustee to clear the debts off.
              2. The trustee can sell the house and distribute an equal amount to the co-owner. The amount extracted from the applicant’s side can be used to settle the loans.
              3. If the co-owner wants to retain the house, then they can arrange for a loan to keep the house.

              Can the trustee sell a co-owned house?

              A trustee is a body appointed by the Los Angeles court to evaluate the applicant’s assets. If the applicant is not using the house it becomes all the more necessary for the trustee to put it on sale. Even if the applicant is living in the house, and the house is worth, the trustee may propose to sell. The trustee can take charge to sell the co-owned house because-

              • The house is not a land that can be equally divided. Selling half part of the house could fulfill no use for the buyer. Hence, the trustee needs to sell the co-owned house.
              • Selling a complete package, e. the whole house will bring more dollars, which the trustee can employ to wipe off the loan of the applicant.
              • The benefit that the applicant will get by selling the house outweighs the interest of the other owner. Hence the court is unlikely to address the co-owner’s
              • Since the house is generating no-other revenue, it practically has no value other than offering shelter; which could be alternated by a rented or another alternative.

              The applicant gets the benefit of exemption for some assets by the court. They can keep the assets they chose to retain. However unused and worthy properties are seldom exempted. For more tips call on 888-297-6203.


                *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 Bankruptcy Court and Social Media

                The Bankruptcy Court and Social Media

                Can the bankruptcy court interfere with social media space? Well, the answer is certainly yes but not if they are personal social media accounts but definitely if they are social media accounts used for business purposes. This question has popped up after a recent judgment by a Texas bankruptcy court. If any social media platform like Twitter, Instagram, Facebook, etc., are used for promoting business, they can be included in the bankruptcy estate. Not only that, but the bankruptcy court may also order the bankruptcy filer to submit the password of these social media accounts. The same level of authority is not applied for a personal social media account. However, if you are doing business promotions from your personal account and there is no separate business account, confusion begins here. Follow more such interesting and informational topics on Recovery Law Group.

                What was the case?

                In Texas, this interesting case happened wherein a firearm company owner decided to file for Chapter 11 bankruptcy. The owner, Jeremy Alcede had a gun shop. Under the reorganization scheme proposed under Chapter 11, a new boss was suggested to take over the business of the gun shop. The bankruptcy court of Texas ordered the former owner to turn over all the electronic assets of the Tactical Firearm including Twitter, Facebook and all other social media accounts with their passwords to the new owner. Jeremy, however, had other thoughts and refused to share social media account details and would have rather preferred imprisonment.

                What was the argument?

                The former owner put forward a strong argument saying, the account was personal, and he administrated over them and created them. His rants on then-president Obama and all advocates, who wanted to put down gun licensing and eradicate public selling of guns. He used the accounts for voicing the benefits of his shop and garnered a good amount of publicity through them. The court, on the other hand, argued that the social media accounts are directly involved in business promotion and had a business website linked on the bio of the site and hence, shall be regarded as a business account. Considering all these factors, it was determined that social media account directly influence the business of Tactical Firearms and hence, the password and the accounts need to be handed over to the new owners.

                If you are in a similar situation and need assistance to determine if your business account or your personal account could be in danger or not, reach out to 888-297-6203 right now.


                  *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.

                • Bankruptcy and Business Continuity

                  Bankruptcy and Business Continuity

                  The common illusion about bankruptcy is that a business might have to wrap up after bankruptcy or business will not be able to continue after bankruptcy. However, this might not be true in most scenarios. There are different sections under which bankruptcy could be filed, these maybe Chapter 7 or 11 or 13. The company structure, business activity, assets and the fixed or probable income available to fund a repayment schedule can help in determining the right section to file bankruptcy.

                  Factors of consideration for business continuity

                  • Is the business really making money?

                  Not every startup idea is a great venture, if your business is resulting in losses for a consistent period of time, you might want to reconsider if winding up is a better option. If nothing is going as per planned and this is for a longer period than you predicted, then it is time to wrap up the business. However, if the business did yield significant profits previously and this is just a bad phase due to temporary internal or external factors, it is worthwhile to consider letting the business flow until the external or internal factors are resolved.

                  • Assets and liabilities balance

                  The balance between assets and liabilities determines the sustainability of a business in the long run. If your calculation of assets is larger than liabilities, then it can be interpreted as a bad phase in business and removing the plug might not be the right option. On the other hand, if the liabilities exceed considerably over the assets, it is time to pull the plug. Instead of retaining such a business one can prefer starting a new one altogether, as growing liabilities, only create a bigger pothole that keeps sucking all potential assets and growth opportunities.

                  • Personal liability for business debts?

                  Personal liability on business debts can be a case with proprietary businesses or partnerships. The lenders might have access to personal assets for business debts. If there is potential to revive the business without seeking additional debts and buying time from lenders, that is the best option. However, if that seems to be difficult and if you already have your back to the wall, bankruptcy and business wrap up could be the only choice available.

                  Chapters under which business bankruptcy can be filed-

                  • Chapter 7

                  Chapter 7 bankruptcy Los Angeles is usually used by proper companies and businesses who are looking to wind up their business. There usually isn’t any exemption to prevent sale or liquidation of any company asset during business bankruptcy under Chapter 7 and hence, all the assets are usually liquidated for an equal share amongst the lenders. In a straightforward liquidation case, with minimum argument or dispute regarding creditor’s share, the liquidation can be settled outside court as it saves a lot of effort, cost and time.

                  However, in the case of complex debt arrangements and lender disputes, there is no choice but to opt for a legal procedure. This chapter is certainly not recommended for partnership or sole proprietors as their personal properties to the extent of secured debts could be attached for repayment. This can be prevented by the use of other chapters.

                  • Chapter 13

                  Chapter 13 is only for individuals so only sole proprietors qualify for this chapter. The process of qualifying for Chapter 13 or Chapter 7 also for that matter becomes a lot easier with business debts. This is the best alternative for the sole proprietors who wish to keep their business running and do not want to give up on any business or personal assets. By filing affordable Chapter 13 bankruptcy Los Angeles, you might discharge part of your unsecured debts and also maintain your business assets. As per stats, sole proprietors filing Chapter 13 may end up losing some of their business assets as they are short on cash and it isn’t the most feasible thing to carry around so much debt for 4-5 years of the repayment plan. That is another thought to be considered when filing for Chapter 13 as not all of your assets will be safe.

                  • Chapter 11

                  The partnerships, Limited Liability Corporations, general Corporations, etc., usually opt for Chapter 11 bankruptcy. The concept of Chapter 11 is based on Chapter 13. It emphasizes on a restructuring of debt with a feasible repayment plan that helps in business continuity. Being based on Chapter 13, Chapter 11 is not that straightforward as Chapter 13. It can get complicated and it is strictly recommended for use of an attorney specifically for Chapter 11. The prospective payment plan has to be feasible, practical and needs to be approved by all creditors on board. Apart from the complicated procedure, the overall expense is a lot higher and not recommended for small businesses. Reach out to 888-297-6203 for more intriguing facts and options in business 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.

                  • Different Categories of Debts During Bankruptcy

                    Different Categories of Debts During Bankruptcy

                    Bankruptcy can be a complicated process especially when the filer possesses different kinds of debts. Classifying the debts in the right order or priority might seem simple but is a very complicated process. These debts can be replaced by a phrase called ‘lender claims’ or ‘creditor claim’. The first step to this complicated process is to segregate debt between secured and unsecured debts. Secured means debts which have a lien or a security backing in the form of collateral. You will use Schedule D to list such secured creditors. While unsecured debts are debts which are given without any security or asset backing and are usually offered at a high rate of interest. You will use Schedule E or Schedule F for listing unsecured lenders.

                    The unsecured debts are to be further classified under priority and non-priority debts. Priority debts might include tax debts, utility payment debts, child support, alimony, etc. These priority debts are to be reported in Part 1 of the schedule while all other non-priority debts or non-categorized can be reported in Part 2. To know more such information about bankruptcy and find a suitable attorney for expert advice and solutions, log on to https://bankruptcy.staging.recoverylawgroup.com/

                    Secured claims and bankruptcy

                    During bankruptcy, the secured creditors enjoy an advantageous position as the lien on the asset pertains after bankruptcy. They can exercise the right to foreclosure or re-access the property labeled as collateral for the transaction. The only benefit the bankruptcy filer gets is extra time to repay the debt if he/she plans to retain the asset or debt settlement if he/she is willing to give away the asset specified as collateral in the loan agreement. Having more equity in mortgage or auto loan will prompt the bankruptcy trustee to sell off the asset. Also, the bankruptcy filer will be entitled to any exemption amount or any equity amount that could be protected in the secured mortgage or auto loan.

                    If the bankruptcy trustee cannot realize sufficient funds to set off the exemptions and a good portion of lender claims, the bankruptcy will resist selling off lien assets. If you had like to give away your assets and settle all your debts, Chapter 7 is a good option and if you wish to keep your assets at any cost, Chapter 13 bankruptcy California is the best option for you. You can also gain an advantageous position by relaxing or evading certain liens. Getting rid of any judgment liens that are over and beyond bankruptcy can certainly help. Under Chapter 13, with a skilled attorney, you can also get rid of the unsecured junior lien. These falls under adversary proceedings and only a professional attorney might be able to guide you on this.

                    Unsecured claims and bankruptcy

                    Unsecured creditors might not be very happy. They might be really-really upset if they are in the non-priority side of claims. The Chapter 7 bankruptcy code is known for eliminating most of the non-priority debts with minimal or no payments. However, the priority debts like any income tax debt, child support, alimony, student loans, penalties, fines, etc., cannot be released or discharged by the bankruptcy court. In such a scenario, you are held liable for all these debts even after bankruptcy and they just don’t vanish or get settled like most debts under Chapter 7 bankruptcy. Medical bills, credit card bills, payday or personal loans, etc., fall into the category of non-priority debts. To know the best possibilities for your bankruptcy case, reach out to 888-297-6203 now!


                      *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 Chapter of Bankruptcy Would Work Best for Me?

                      Which Chapter of Bankruptcy Would Work Best for Me?

                      People, when confounded with huge amounts of debts, are often looking for ways to get out of this grim situation. Filing for bankruptcy is one of the options that they can choose. However, there are other options also available, say lawyers of Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, to provide you with a fresh start. Individuals can file for either Chapter 7 or Chapter 13 bankruptcy, however, each has eligibility requirements; you should have income low enough to pass the Chapter 7 means test or substantial disposable income apart from a dollar limit cap on your debts in case of a Chapter 13 bankruptcy Los Angeles. Since bankruptcy is going to affect your credit score, it is important to consider all options including working things out with creditors outside bankruptcy. For alternate options to bankruptcy, call 888-297-6023 to speak with expert bankruptcy lawyers.

                      Chapter 7 or Chapter 13?

                      While the former is ideal for people with low income to pass the means test and those who can protect all their property through exemptions. They will be able to get their debts discharged during bankruptcy. Contrary to this, Chapter 13 bankruptcy is for people with higher income preventing them from qualifying for Chapter 7. People who wish to save the property from repossession or foreclosure and want to repay their non-dischargeable debts over a 3 to 5-years repayment plan.

                      Factors to consider while choosing a chapter when filing for bankruptcy include:

                      • Your income and expenses;
                      • Types of debts owed;
                      • Whether you wish to keep or lose your property.

                      Can bankruptcy help in your financial troubles?

                      You might be under heavy debts and dealing with repossession or foreclosure when you file for bankruptcy, but it is important to know the extent to which bankruptcy will be able to help you. Though bankruptcy is one of the best methods to get rid of a huge amount of debts such as medical bills, credit card bills and personal loans, there are certain debts that survive bankruptcy. These include child and spousal support, tax debts, student loans, etc. It may, however, help you in spreading out the non-dischargeable debt payment over a 3-5 years’ repayment plan (Chapter 13).

                      In case of secured debts like car loans and mortgages, you might be facing repossession or foreclosure action by creditors. Filing for bankruptcy results in an automatic stay which puts a hold to any collection action. Additionally, in Chapter 13 you get to keep the property and catch up on missed mortgage payments; opt for a cramdown if the property’s current value is less than the balance on your loan and remove junior liens on your house through lien stripping. The automatic stay also puts a restraint on other collection actions by creditors such as wage garnishment and lawsuits against you, apart from eliminating any underlying debt

                      Protecting your property with the bankruptcy

                      Bankruptcy filers don’t lose all their possessions. Certain exemptions (state and federal) are available to protect the debtor’s property up to a certain amount. You can choose between state and federal bankruptcy exemptions (if your state offers the choice) to protect certain equity in your assets. Generally, exemption statutes let you keep various items essential for you to get a fresh start. The non-exempt property is treated differently in different bankruptcy chapters.

                      • Chapter 7 bankruptcy

                      Any non-exempt property is sold off by bankruptcy trustee to repay your creditors.

                      • Chapter 13 bankruptcy

                      You can keep the un-exempt property but need to pay an amount equivalent to that to your unsecured creditors.

                      People with a significant amount of non-exempt property might find bankruptcy a nonviable solution.


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