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Category: Bankruptcy

  • What do you understand by wildcard exemption?

    What do you understand by wildcard exemption?

    Are you looking to protect a property that is quite important and dear to you? Now that is easily possible with a wildcard exemption. Now, you no longer need to worry about losing important and valuable items which hold a very high value in your life, while filing for bankruptcy. As per the new norm, if your state has a “wildcard exemption” you can protect and safeguard invaluable items from being given away or foreclosure.

    The property that you want to protect or safeguard completely differs from state to state. Hence, depending on your residential location, you will be able to use the “wildcard exemption” as per the statutes and law stated of that particular state. The common items that you can safeguard generally are – furniture, clothing, crockery, and bedding. Also depending upon the state statutes, you might be able to keep either of these as well-

    • Vehicle
    • Jewelry
    • Child and/or spousal support
    • Equity in a residential home
    • ERISA qualified retirement account.

    However, exemptions for luxury items like boats, vacation homes, snowmobiles and the like is not permissible. Nonetheless, some states provide this benefit to its residents where they can safeguard any property or items (even under the category of unnecessary or luxury property) under a certain value/dollar as stated by the state.

    For example, the state has permitted you to use the “wildcard exemption” of value $7000. You can use this to safeguard/exempt any items within the stipulated value of $7000. This can include luxury items as well but must be under the stipulated amount. For instance – your golf club, sauna, a piece of jewelry- all summed up under the authorized value of $700 and must not exceed the value at any cost.


      *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 Do You Understand by Disposable Income?

      What Do You Understand by Disposable Income?

      Many people find bankruptcy a great way out of spiraling debts. Consulting a bankruptcy attorney to find out which bankruptcy chapter suits your condition the best is important. However, people come across the term ‘disposable income’ too often during bankruptcy discussions and are often confused as to what it means. According to bankruptcy lawyers of Los Angeles based firm Recovery Law group, disposable income is the amount of your monthly gross income which remains after all essential bankruptcy expenses are subtracted from it.

      Disposable income is important to decide which chapter of bankruptcy you qualify; Chapter 7 to get a discharge of debts or Chapter 13. After claiming deductions, you can use the actual cost of certain expenses. Some of the deductions you are allowed include food and clothing, taxes, housing and utilities, life insurance, transportation costs, involuntary payroll deductions, spousal and child support, healthcare costs, education costs, etc. Determination of disposable income is done using forms which depend on the chapter under which you intend to file bankruptcy.

      Chapter 7 bankruptcy requires you to pass a means test. You need to complete the Chapter 7 Means Test Calculation form in this case. You find your disposable monthly income by deducting allowed expenses and multiply the amount by 60 months. In case the figure exceeds the maximum amount allowed (mentioned on the form) then you can’t qualify for the discharge. Also, if your disposable income can pay 25% or more of your unsecured debts like credit card and medical bills and personal loans, you will be able to qualify for this chapter of bankruptcy.

      Chapter 13 bankruptcy requires you to file Chapter 13 Calculation of Your Disposable Income form. The monthly disposable income is calculated after deducting expenses. This amount is used to pay off your unsecured nonpriority debts every month for 3 to 5-years as per the repayment plan.

      Since every case is different, it is important to find out which chapter of bankruptcy you qualify for. This can be done by consulting with expert bankruptcy attorneys. In case you would like to discuss your case, call at 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.

      • Real Property and Bankruptcy

        Real Property and Bankruptcy

        Filing of bankruptcy requires the filer to list the real properties he/she owns or possesses. This is done to assess the seriousness of bankruptcy and various other financial aspects to resolve the issue in the best possible manner. The ownership or interest has to be disclosed in legal language which can often be tough. To learn more about world-class attorneys and some interesting bankruptcy and related topics, do check out Recovery Law Group. Owning, possessing, having an interest, etc., are different terms associated with property ownership. There can be different ways of holding a property. The most common ways can be listed as follows-

        1. Fee Simple

        Fee simple is a common ownership form that entitles you outright ownership rights like selling, transferring, altering, etc. Even if there is a home mortgage for a home and you have full right to sell, transfer to your future family or make alterations to it, the property ownership shall be regarded as fee simple. A fee simple type of ownership might be owned by several people or tenants jointly.

        1. Life Estate

        A Life Estate is basically an asset which can be used or held only during the lifetime of an individual. Basically, such an asset is exhausted with the death of the user and cannot be transferred to his/her heirs. Such an asset cannot be sold or given away too. The asset shall be passed on to another person or institution as per the Will or agreement that brought you the life estate asset. This is common amongst surviving spouses who receive assets from trusts after the death of the other spouse.

        1. Future Interest

        A future interest as the name suggests is a kind of benefit or an asset that is available in some time during the future. This is usually seen in case of young individuals whose parents, set up an irrevocable trust which yields assets only after a specific tenure or eligibility is attained. However, it is important to note that a promise made in a will or any such instrument that can be altered or modified later is not regarded as a future interest.

        1. Contingent Interest

        Contingent interest is also a future interest which has certain terms and conditions attached to it. There is an addition of some tasks or clauses that need to be accomplished in order to ascertain the asset or the benefit on offer. For instance, Jack sets aside a future interest of asset worth $10,000 if Brian marries before the age of 27 years. In this scenario, if Brian marries before age 27, he gets $10,000. If he plans to remain single, he loses the $10,000. Both Jack and Brian in this scenario are holding a contingent interest.

        Details to be disclosed

        While doing the paperwork related to bankruptcy, it is important to list some important information alongside the real property interest held. Some important details that should make way can be listed as follows-

        • Address and type of property
        • Describing the interest in property whether it is a spouse or any other family member
        • The fair market value of the property
        • The kind of ownership

        Some other terms to learn with real property

        It is always good to know some smart and commonly used legal terms. Some of them relating to real property can be listed as follows-

        1. Lien Holder

        Lien holder is a person who can exercise right on a property if the debtor defaults and fails to make payments consistently over a period of time. This is usually listed out in a mortgage agreement, judgment lien, or a trust deed. This is also a real property interest and should be disclosed.

        1. Easement Holder

        Easement Holder is basically a type of right that gives you power or authority to use the property along with another institution or an individual who is the owner of the property. This also has to make way to the official documents of bankruptcy.

        1. Power of Appointment

        If you have the right to transfer, sell or represent on behalf of someone else for a particular property or an asset as per a will or an agreement, it is referred to as the power of appointment. This also has to be reported while filing for bankruptcy.

        1. Beneficial Interest

        This type of interest is commonly seen in real estate transactions. There is a binding real estate agreement granting ownership. This gives ownership to the buyer after completing all the sale formalities. For instance, you might still own a beneficial interest for an escrow pending property.

        These are some of the not so easy things digest and interpret. There are many aspects that get far more complicated and technical. To help resolve your queries better and address your problems, our team of professional, skilled and experienced attorneys in California is just a phone call away. Dial 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.

        • Role of Bankruptcy Exemptions in Chapter 7 & Chapter 13

          Role of Bankruptcy Exemptions in Chapter 7 & Chapter 13

          When a person takes a loan from a lender or creditor and is unable to pay back, he can file Bankruptcy in the USA. Filing Bankruptcy allows the debtor some relief in paying the loans. The debtor can file Bankruptcy under Chapter 13 & Chapter 7. While the debtor files bankruptcy he is granted exemptions. The exemptions may vary depending upon the law under which the debtor has filed bankruptcy- chapter 13 or chapter 7.

          Chapter 7

          Under Chapter 7 the debtor can be relieved or could be asked to clear partial or small amount of unsecured debt. This depends upon the liquid assets the debtor owns. The assets that can be sold to get money are liquid assets. Assets that can generate money and give value are non-exempted assets. Assets that cannot be cashed or brings minimum to no value are exempted assets. Much of the arguments go into what assets should be exempted.

          The creditor’s bill is cleared so far as the non-exempted assets can encash and the rest of the debt amount is exempted under Chapter 7. This law is mostly used by debtors with limited means to clear their unsecured debts. The debtor is thoroughly scrutinized before the court gives nod.

          Chapter 13

          Under chapter 13 the debtor is not completely let off the debt, but his debt amount is broken into small monthly installments. The installments depend upon the liquid assets the debtor has. The value of the liquid assets is evaluated and as per the cashed amount the debt is cut into installment packet to be paid monthly. An amount is fixed by the court to be paid by the debtor. Once he pays it as per the repayment plan, the remaining unsecured loan is discharged.

          Bankruptcy exemptions

          What are the assets that may come under Bankruptcy Exemptions? The debtor may fear to lose his valuable assets. However, after declaring Bankruptcy you can keep some assets. Under the Bankruptcy law, the debtor can save some of its assets. The debtor may have some assets that may have an emotional attachment to the debtor. An amount is fixed by the court that protects the assets that come under that amount. Such assets may be an old car, furniture, etc.

          Wildcard exemption

          The debtor who declares bankruptcy under Chapter 7 may in some cases get lucky by a wildcard exemption. This card can help the debtor save his most asset. The wildcard exemption can be applied to any of the non-exempted property of the debtor, which he can save from being sold.

          Non-exempted assets

          The aim of bankruptcy is to provide a debtor a new beginning free of debts. However, in no form, he can keep products like-

          • Luxury cars/watches/yachts/expensive artwork and many such high-value items that can be exchanged to good money to pay off the unsecured debts.
          • Jewelry can fetch a good deal of cash and hence is not exempted. However, jewellery with sentimental value like wedding/engagement ring under a certain amount can be exempted.
          • Pets like a racehorse or a show dog that can be sold at a great price are non-exempted. However, pets that offer no monetary value come under Bankruptcy Exemptions.

          Bankruptcy exemption in State and Federal laws

          A state may have a different list of exempted items than Federal law. A debtor must either follow State or Federal law. Some States can be liberal and allow the debtor to choose between the State or Federal law of exemption. However, some states may have a mandatory rule to employ the State rule. The debtor must stay in a state for minimum of 2 years to qualify for the State Law.

          Non-Bankruptcy exemptions in Federal law

          The Federal law has designed a set of federal exemptions that come under non-bankruptcy law. The debtor can enjoy this benefit and save his assets, as this law works around the similar ground as bankruptcy exemption law.  However, he can only entertain Federal non-bankruptcy law, if he is employing the State’s Bankruptcy exemption law.  In no way, the debtor can entertain both Federal Bankruptcy exemption law and Federal non-bankruptcy law.

          The bankruptcy exemption rule is employed to help the debtors lead respectable life after declaring bankruptcy. In no way, the debtor must think of manipulating the law to save his valuable liquid assets and getting through without clearing his unsecured loans.


            *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.

          • Know about Texas Bankruptcy Exemptions

            Know about Texas Bankruptcy Exemptions

            Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

            Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

            Here’s a look at various Texas bankruptcy exemptions:

            1. Texas homestead exemptions

            The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.

            1. Texas motor vehicle exemptions

            The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.

            1. Texas personal property exemptions

            Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:

            • Sports and athletic equipment including bicycles;
            • Home furnishings including family heirlooms;
            • Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
            • Food and clothing;
            • Up to 2 firearms;
            • Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
            • Health saving accounts;
            • Health aids like walking sticks, wheelchairs, hearing aids, ;
            • Burial plots;
            • Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
            1. Pension and retirement accounts

            Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:

            • ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
            • County and district employee retirement and pension benefits.
            • Firefighter pension and retirement benefits.
            • Law enforcement officers, emergency medical personnel survivors’ benefit.
            • Police officer retirement and pension benefits.
            • Judges pension and retirement benefits.
            • Municipal employees, state employees and elected officials’ retirement and pension benefits.
            • Teacher retirement and pension benefits.
            • Retirement benefits which end up being tax-deferred.
            1. Insurance exemptions

            These include:

            • Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
            • Texas employee uniform group insurance;
            • Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
            • Texas public school employees’ group insurance;
            • Texas state college or university employee benefits.

            However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for 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.

            • Bankruptcy will make me lose my truck!

              Bankruptcy will make me lose my truck!

              If you are relying on commuting by your truck or car to your office, giving up the car/truck due to bankruptcy. It can be even worse if you own a truck and use it for your side-income or if it is your source of employment directly or indirectly. The good news is that most States in the United States of America allow for a provision that helps protect your truck or a car. There is a specific value threshold though that means, if your car or truck is not a luxury one or is an inexpensive one, you might just be able to keep it under state provisions. To learn more about bankruptcy and seek best advice relating to it log on to Recovery Law Group now.

              What does asset exemption mean?

              When filing bankruptcy under Chapter 7, which requires you to surrender your assets in order to pay off your dues. However, not all assets have to be surrendered and there are some exemptions. Maintenance of home and employment is an essential aspect of every state guideline. These beneficial laws allow a filer to retain certain assets, which can be listed as follows-

              • Furniture in the household, which are not associated as luxury
              • Clothing
              • Wedding ring
              • Inexpensive or not luxury or ordinary vehicle
              • Retirement money which has been qualified by ERISA
              • A part of your equity in the home, which is filer’s primary residence

              What exemption rules can allow me to keep my truck?

              There are three common exemptions which can be applied for in order to keep the truck or car during and after bankruptcy. These three exemption rules can be listed as follows-

              • Tools of the trade code

              Some states in fact majority of them allow the bankruptcy filer to retain some properties that are essential for work. A work truck or a car driven exclusively for work purposes in the past should qualify for this exemption code. You still, however, may need to provide strong evidence that you need the car/truck to generate income or to keep up with employment. The amount of exemption can be capped around $1,500 to $10,000 depending on the state in which the bankruptcy has been applied.

              • Motor vehicle exemption code

              This exemption code allows bankruptcy filer to retain his/her car or truck. There is no justification or reasoning needed with respect to use/income generation or any such criterions. However, most states have a very slim threshold a will usually allow for a few thousand dollars as exemption amount. In order for the bankruptcy trustee to not exercise your automobile, the exemption amount should cover your vehicle’s present market value. Else, the bankruptcy trustee can exercise right to liquidate the same. The value of the vehicle plays a very significant role for qualifying under the motor vehicle exemption code. It shall vary from state to state.

              • Wildcard Exemption

              Some states allow you to protect your assets up to a blanket value during bankruptcy. This exemption is usually larger, but it shall incorporate all exempt assets and the non-exempt assets which you had like to keep. If you have lower value or worth of exempt assets, this can be an ideal option to safeguard your car or a truck.

              What if you are not able to use any of the three exemption codes?

              The alternate option if you do not want to use the above exemption codes would be to pay off the nonexempt value of the car/truck. Under certain circumstances, you can payout the fair market value of the car loan and the remaining debt shall be released, and you shall also be able to keep your car or truck. In most circumstances, bankruptcy trustee shall allow you to pay the equity and retain the car.

              If you do want to get into ifs and buts and want to safeguard your car for sure, Chapter 13 bankruptcy Dallas is the best option. Since most of the debt shall be paid off in 3-5 years, the filer retains most of his/her assets, whether exempt or nonexempt. There is more authority with respect to assets when filing under Chapter 13 bankruptcy. Seeking professional assistance can help you drive the situation better, +1 888-297-6203 is your one-stop helpline.


                *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.

              • Know More about California Bankruptcy Exemptions

                Know More about California Bankruptcy Exemptions

                Bankruptcy filers can make use of federal and state exemptions to protect their assets. However, choosing between them is confusing. Some states like California do not allow citizens to choose federal exemption but offer two different sets of exemptions to protect your property during bankruptcy, say Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. To know more about California’s bankruptcy exemptions, call 888-297-6023.

                Bankruptcy exemptions in California

                Amongst the two sets of exemptions provided by the state of California, System 1 is preferred by debtors with substantial home equity, while System 2 is preferred by debtors who have valuable property other than home equity. It is important to know that double exemptions are not available to married couples filing for a joint bankruptcy in California.

                Objections can be raised by the bankruptcy trustee to your exemptions and you might end up losing the property if you aren’t careful. You need to list your protected assets on form Schedule C along with other official bankruptcy papers to keep your exempt property. Schedule C is reviewed by both court-appointed official and the bankruptcy trustee to ensure that the claims in the papers agree with the exemption set. In case it is not the case, an objection is filed in court with the judge deciding whether you can keep the property or not.

                Trustees generally object in case a debtor is trying to fraudulently get some of their assets exempted. If a minor exemption problem is encountered, then an informal arrangement can be made to rectify it. supplying factually incorrect financial statements in a bankruptcy case can have serious implications. Bankruptcy fraud is a punishable offense with a fine of $250,000, 20 years prison term or both.

                Exemption system 1 of California

                The exemptions are updated every three years to factor in rising inflation. The various exemptions in this system include:

                1. Homestead

                Some amount of equity in your primary residence can be protected. This covers a community apartment, mobile home, stock cooperative, planned condominium or boat. The amount of equity you can cover is up to $75,000 for single and not disabled individuals; $100,000 in case of a family; $175,000 if you are 65 years or older or are physically or mentally disabled; $175,000 if creditors are forcing the sale of your home and you are either 55 or older, single and earning $25,000 per year; or are 55 or older, married and earning $35,000 per year.

                1. Motor vehicle

                You can protect $3,325 worth of equity in motor vehicle exemption which includes motorcycle, car, truck or any other vehicle.

                1. Personal property
                • Household items and personal belongings;
                • The residential building material for repairing home up to $3,500;
                • Jewelry and heirlooms including art up to $8,725;
                • Health aids;
                • Bank deposits due to Social Security payments up to $3,500 for a single payee and $5,250 for husband and wife payees;
                • Bank deposits from other public benefit source up to $1,750 for an individual and $2,600 for husband and wife payees;
                • Cemetery and burial plots;
                • Personal injury and other claims which are essential for support.
                1. Wages
                • Public employee vacation credits (minimum 75% in case payments are made in installments)
                • 75% of wages paid within 30 days prior to a bankruptcy
                1. Pensions and retirement accounts
                • IRAs and Roth IRAs limits;
                • Public retirement benefits;
                • Tax-exempt retirement accounts including 401(k)s, 403(b)s, SEP and SIMPLE IRAs, profit sharing and money purchase plans, etc.;
                • Public employees
                • County employees
                • County fire fighters;
                • County peace officers;
                • Private retirement plans and benefits like Keogh and IRA.
                1. Public benefits
                • Public assistance benefits;
                • Student financial aid;
                • Workers’ compensation benefits;
                • Relocation benefits;
                • Unemployment and disability benefits;
                • Union benefits as a result of labor
                1. Tools of trade

                Any tools which are essential for you to continue your job/livelihood are exempted up to $8,725 or up to $17,450 if both spouses, in the same profession use them. These include books, instruments, equipment, tools, materials, implements, uniforms, a commercial vehicle, and furnishings.

                1. Insurance
                • Unmatured life insurance policy up to $13,975 or a matured life insurance benefits of unlimited value;
                • Fidelity bonds;
                • Life insurance policy in case policy specifically prohibits its use to pay off creditors;
                • Disability or health benefits;
                • Homeowners’ insurance for 6 months after received, up to the amount of homestead exemption.
                1. Miscellaneous
                • Trust funds up to $1,600;
                • Business or professional licenses;
                • Property of business partnership.

                Exemption system 2 of California

                This system can be used only in bankruptcy and does not work to compensate creditors outside of bankruptcy and includes:

                1. Homestead

                You can have an equity of $29,275 in a personal property which can be used as a residence.

                1. Motor vehicle

                Up to $5,850 equity in motor vehicles is exempted.

                1. Personal property
                • Health aids;
                • Jewelry up to $1,750;
                • Burial plot up to $29,275 in place of homestead exemption;
                • Wrongful death recoveries essential for support;
                • Household goods, clothing, appliances, animals, books, furnishings, musical instruments, and crops up to $725 per item;
                • Personal injury recoveries up to $29,275.
                1. Pensions and retirement
                • ERISA-qualified pension, annuities, and benefits essential for support;
                • Tax-exempt retirement accounts including 401(k)s, 403(b)s, money purchase and profit-sharing plans, SEP and SIMPLE IRAs, and defined benefit plans;
                • IRAs and Roth IRAs with limits.
                1. Public benefits

                Crime victims’ compensation, unemployment compensation, Social Security, Veterans’ benefits and public assistance.

                1. Tools of trade

                Any books, tools, and implements essential for a job up to $8,725.

                1. Alimony and child support

                The amount essential for the support of spouse and child.

                1. Insurance
                • Unmatured life insurance policy;
                • Unmatured life insurance accumulated interests, dividends, loan, cash or surrender value up to $15,650;
                • Disability benefits;
                • Loss of future earnings payments essential for support.
                1. Wildcard

                $1,550 apart from any unused burial or homestead exemption in any property. In case no homestead exemption is used, up to $30,825.


                  *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.

                • How to protect important assets during bankruptcy?

                  How to protect important assets during bankruptcy?

                  Bankruptcy is an unfortunate financial condition and safeguarding or holding on to some near and dear assets can be a very difficult task. Chapter 7 bankruptcy code especially is not very suitable for people who want to hold on to their assets. However, with the help of exemptions, certain ordinary and modest assets can be protected and prevented from the liquidation process. These may include clothing, home, car, household stuff, tools used in the business/profession, etc. To learn more about bankruptcy codes, log on to Recovery Law Group now. The exemptions can help in protecting the assets which you might not be able to safeguard otherwise during bankruptcy. One such exemption is the wildcard exemption.

                  What is the Wildcard Exemption?

                  Wildcard exemption tries to value sentimental and emotional feelings in addition to basic necessities. The best examples could be some of your sports collections, fan collections, grandmom or ancestral property attachment like a piano or some other asset with a financial value that can be tagged with sentiments or emotions. While every state differs slightly in the type of exemptions they offer, other states might provide a choice between the federal and the local state exemptions. There is no possibility of mixing and matching what you like or do not like though.

                  Different type of exemptions and their thresholds

                  Most exemptions under Federal or state rule are targeted to specific assets. Here is a look at some federal exemptions with their threshold to better understand what assets could potentially be safeguarded-

                  ·         A $25,150 equity in the personal residence

                  ·         A $4,000 of equity in a motor vehicle or an automobile

                  ·         $13,400 worth fair market value of household goods that include clothing, furnishing, appliances, etc. There is a cap of $625 per item. Which means any one item cannot exceed $625 in the cumulative of $13,400.

                  ·         $2,525 worth tools and equipment used in business or profession.

                  These amounts are valid until 2022. They are bound to change every 3 years based on inflation and other factors. The state exemptions might be slightly higher or lower to the federal exemptions depending on the cost of living and inflation in the particular state. For instance, it can be high for a state like New York while it can be lower for a city like Dallas in Texas. However, by the federal standard, the bankruptcy filer can get a rough idea of which assets, he/she will be able to protect under these exemptions.

                  Benefits of Wildcard Exemption

                  The biggest benefit of wildcard exemption is that it is not been limited to any specific type of asset. The choice of property is left to the discretion of the user. The user can decide on whether to use it in his car, expensive painting, jewelry, etc. The other benefit is you can split the threshold amount to multiple assets as per your convenience. The below items can be safeguarded under wildcard exemption rule-

                  ·         Jewelry

                  ·         Spouse and child support

                  ·         Automobile

                  ·         Residential home equity

                  ·         An ERISA verified retirement account

                  ·         Any other justifiable non-luxury asset

                  What is the threshold?

                  Most states use the federal exemption threshold which offers an individual an exemption of $1,325. The additional unused amount of $12,575 in the federal homestead exemption can also be clubbed with the $1,325. This threshold doubles up for a married filing joint scenario. The state exemption might vary slightly from the federal exemption. You might still want to confirm the same. Look into some additional terms in the state rule book of select states for using certain exemptions like the wild card exemption. Get in touch with the best attorney in California for your bankruptcy help at 888-297-6203.


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                    *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 is Chapter 13 Debt Release?

                    What is Chapter 13 Debt Release?

                    Bankruptcy is sometimes inevitable. It is not one of the most favorable situations to be in. But it is important to make the right moves to be able to come out of bankruptcy and to evade the creditor’s torture. When thinking or learning about bankruptcy, Chapter 7 and Chapter 13 discussions are very common. Chapter 13 is a better alternative than Chapter 7 in most cases. In case you need to determine which is best for you and why; do not hesitate to log on to Recovery Law Group  to gain a deeper insight.

                    What is Chapter 13 bankruptcy plan?

                    The best part of the Chapter 13 payment plan is that you do not have to do away with all the assets but instead you find out the best way to payout your debts. Unlike Chapter 7 arrangement, this plan is much more reasonable and practical. Based on the debt type, you make an agreement with your lenders on a payment schedule based on your disposable income. The debt is consolidated, and a part of the debt is released once you make regular monthly payments as per the Chapter 13 payment plan for a period of 3-5 years as agreed by the lenders.

                    How to make a payment plan?

                    The tenure is the most important aspect of the payment plan. The tenure is decided by the court on the basis of your average income in the recent 6-9 months. The income can be from any source passive, active, consistent, inconsistent, social security or retirement benefits also. The tenure of 3 years arrives if the average income then realized, is lower than the state median. To get a fair idea of the state median, California state had a median of about $52,000 in the 2017s for an individual and about $80,000 for a family of four members. If your average income before filing bankruptcy exceeds the state median, the tenure will be for 5 years.

                    The payment plan will expire before three or five years only if you clear all your outstanding dues in full. The next step is to determine your minimum due. As per the Chapter 13 bankruptcy plan, the secured debts are prioritized and need to be paid in full. Other priority debts may include alimony, taxes, child support, mortgage interest, etc. These kinds of debts shall dominate the bulk of the minimum due payments. Apart from these, certain fees like attorney, filing and percentage fee for a trustee, etc., also need to be paid out fully.

                    How to calculate your disposable income?

                    If your average income in the last 6-9 months is below the state median, the unsecured debts might get released completely. This will hurt your credit score but your minimum due will constitute minimum due towards the priority debts and the secured ones. There are possibilities for loan trimming even for the secured debts, especially for the high depreciating assets like an automobile or similar assets. If your average income is over the state median, the disposable income has to be directed towards the unsecured debts. The disposable income is lower of 15% of the average income or the calculated disposable income.

                    The calculation of disposable income is straight forward. The state and federal standards for all basic amenities have been provided and one can deduct only the standard amount irrespective of the actual expenditure for determining disposable income. The difference between your average income and the standard deductions will give you your disposable income. For instances, in Los Angeles, the cap for transportation cost is $189, if you do not own/use your own vehicle. It is $300 as an operating cost for people using their own cars. Similarly, the standard for a mortgage in case of a family of four is around $3,000. Food, clothing and other basic need expenses are also capped to about $650 as per federal standards. These are rough monthly standards, which are not the latest but give you a rough idea of what your disposable income could be. For more information or for any calculation help do not hesitate to reach out on +1 (888) 297 6203.

                    Getting your Chapter 13 payment plan approved

                    The bankruptcy court has to approve the proposed payment plan. Hence, it is important to put forward a practical plan forward that caters to best self-interest as well as the interest of the lenders. If the plan is not confirmed or approved, it holds no value. The bankruptcy trustee and lenders can object or force modifications in the plan if they are not convinced or satisfied. Automobile lenders or mortgage lenders are two prominent objection parties when putting forward the payment plan in the court. The bankruptcy trustee emphasizes on following of rules and will try to divert as much funds possible to the lenders during the process. So, if your plan satisfies your automobile and mortgage lender as well as compliant with the rules, it has a very high probability of getting approved.

                    How to avail Chapter 13 release of unsecured debt?

                    The bankruptcy court has certain guidelines in place for releasing an unsecured debt and it is not so straightforward. You need to complete all the payments, still be current on support debts like alimony, child support, etc., and also complete a financial management course that shall help you manage finances better and not be stranded here again. Additionally, you should have also not received a discharge of your debts in the recent 2 years in order to be eligible for the release of unsecured debt. If you comply with all these, the court shall release the unsecured debts and the lenders shall no longer be able to pursue you for their debts.

                    An important point however to be noted is that some debts like criminal fines, litigations, lawsuits, child support, student loan, compensation for injury or similar debts cannot be released by the bankruptcy court. These are priority debts and need to be paid off without deviation. For Chapter 13 cases, an attorney is a must and the best in business is just a call away. Dial  +1 (888) 297 6203 now for the best solution to your bankruptcy problem!


                      *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 Trustee’s Role in Chapter 13

                      Bankruptcy Trustee’s Role in Chapter 13

                      Chapter 13 bankruptcy involves the creation of a repayment plan through which the debtor pays off some or complete amount of their dues to the creditors over a 3 to 5-year time frame. The process is overseen and administered by the bankruptcy trustee appointed to the case. According to Dallas based bankruptcy law firm Recovery Law Group, the various responsibilities of a bankruptcy trustee in Chapter 13 include:

                      • Reviewing of bankruptcy papers

                      Bankruptcy trustee reviews the forms filled by the debtor at the beginning of the case and verifies the information provided on the form with that on the documents provided along with including tax returns, pay slips, etc. The trustee also takes an account of your income, monthly expenses, debts, and any assets you have.

                      • Conducting creditors meeting

                      After a month of filing bankruptcy papers, a Chapter 13 creditors meeting takes place under the administration of bankruptcy trustee. You are expected to answer all questions, under oath, regarding the information provided by you in the documents along with your bankruptcy papers and supporting documents. The creditors can also question you in this meeting.

                      • Assessment of proposed repayment plan for compliance with bankruptcy laws

                      A repayment plan is devised keeping in mind your disposable income, your debts, and your assets. During this repayment plan, you are expected to make payments every month to pay off your debts. In case the trustee has an issue with the repayment plan, they can object to it. A confirmation hearing is scheduled where you can draft an opposition in support of your plan.  The trustee’s job is to ensure that the payment plan meets all requirements. The judge can then either confirm or reject the plan.

                      • Collection of plan payments and their distribution among creditors

                      You need to make monthly payments as per the proposed plan to the bankruptcy trustee within 30 days of filing bank papers. It is the trustee’s duty to hold the funds for the creditors. Once the plan is approved, the trustee can distribute funds to the creditors as per the terms of the plan. This continues for the entire duration of the repayment plan (3 to 5-years). The trustee also evaluates the proof of claim filed by every creditor and keeps an account of the money each creditor has received during the repayment plan.

                      • Objecting to any improper claims

                      Creditors wishing to get funds through Chapter 13 bankruptcy Dallas repayment plan need to file a proof of claim within 70 days of the filing date (180 days in case of government creditors). The claim states the amount due to the creditor and has documents (contract or agreement) to prove their claims. These documents are reviewed by the trustee and they may object to any improperly filed claims or those lacking proper documentation.

                      In case you are confused regarding which bankruptcy chapter is best for you, contact expert bankruptcy lawyers at 888-297-6023 to discuss your case.


                        *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.