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Category: Bankruptcy

  • What Happens to Your Car, When You File For Bankruptcy?

    What Happens to Your Car, When You File For Bankruptcy?

    If you own a car through an automobile loan and are struggling to keep up with the installment dues, you might want to know what could be in a potential scenario, if you had filed for bankruptcy. In cities like Dallas, Houston, and other cities, where public transport is not exceptional and well connected, the car is more of a necessity than a luxury. Whether it be to run around the grocery errands or to manage the daily routines of work, kid’s school or any other things. People using their own car might find it extremely difficult to sustain without it even in bankruptcy. Hence, it is a pretty obvious concern to what happens to your car in bankruptcy.

    Type of bankruptcy to decide

    Chapter 13 and Chapter 7 are two bankruptcy category that will determine if you will be able to keep your car or not. In the case of Chapter 13 bankruptcy, the payment plan shall accommodate some payments towards the car loan since it is a secured loan, the chances of retaining the car is high. On the other hand, Chapter 7 rules need the borrower to trade in all the non-exempt assets which could well include your car.

    Are there methods to keep the car when applying for Chapter 7 bankruptcy? Yes, there are, let’s learn how in the next piece.

    The car worth and affordability are two important things that can decide the car fortunes for you. If you need to keep your car, you shall file a reaffirmation treaty with your car loan lender during the bankruptcy procedure. This reaffirmation treaty is basically an agreement which prevents car loan from being released or discharged. This means you shall continue making car loan installment payments whenever they are due in spite of bankruptcy. Reaffirmation could be allowed by the court if the installment due could be proved as an ‘undue burden’ in the bankruptcy court. Ultimately, all other obligations, income, and various other factors come into play. To analyze all factors and to seek professional help in this regard, log on to Recovery Law Group right now.

    Car worth and Equity concepts

    If the liquidation is made through Chapter 7 there is a concept of equity that comes into the picture. The difference between the purchase price of the car and the remaining principal due is regarded as equity. During the liquidation process, one can use the exemption codes available in certain states like California and try retaining their assets like a car. In California, there are two exemption codes. The first one allows for a cap of $3,050 on equity as an exemption for your vehicle while the second one caps it to $5,350. Both these elections cannot be applied simultaneously and are individual section codes or systems.

    If the equity portion of your car is below the exemption codes of $5,350 or $3,050 the bankrupt trustee cannot liquidate your car for repaying debts. If you exceed the exemption amount, it is still not over. You can pay off the excess amount over the exemption to the trustee to be eligible again. The second and last option is to initiate a reaffirmation treaty which has been discussed earlier. Chapter 13 bankruptcy helps you hold on to the car until you comply with the payment plan set up by you, the court, and creditors and all other complications related to Chapter 7 bankruptcy California. For assistance from the best and experienced bankruptcy lawyers, dial in +1 888-297-6203 now!

  • Bankruptcy and Assistance of Attorneys

    Bankruptcy and Assistance of Attorneys

    Debt is never a great idea but sometimes, it becomes inevitable. When the interest mounts up with debt, there looks to be no way forward. If we consume more debt than we can repay, it becomes a crushing situation. U.S Bankruptcy code is certainly the last hope that can save your boat from drowning. This code has been set up to protect honest and hardworking people from a vicious cycle of debt. The code sets free businesses or individuals by releasing the debt/liability after educating them and by following a legal process of settling as much debt as possible. If you are unable to determine if you should file for bankruptcy or you shouldn’t, consider visiting Recovery Law Group to clarify all your questions about bankruptcy and how to make the right decision.

    Broad reasons for bankruptcy

    The reasons for bankruptcy can be many. Some are forced while others are just reckless financial management and indecision. Forced reasons could include medical costs, sudden loss of a job, pay cut, divorce, business failure, etc. While the financial reckless or indecision includes spending or buying luxury items from a credit card or pay day loans. Spending excessively or availing more loans beyond the ability to sponsor the EMI with the paycheck. Unplanned retirement can also be one of the reasons where you find out your expenses are way higher than the social security benefits and savings.

    Businesses have different sets of reasons. These can be classified into two types. Internal reasons could be equipment failure, change in management, poor planning/forecasting, inefficiency, lack of investment, etc. External reasons are usually uncontrollable reasons like fluctuation in the currency market, government policies, increased taxes, increase in competitors, etc.

    Basics of Bankruptcy Chapters

    Bankruptcy can be filed across different chapters. There are different thresholds, eligibility criterions, advantages/disadvantages of each Chapter. There is no perfect way of determining which Chapter is best as it varies on a case to case basis. For an individual Chapter 7 might be appropriate while for the other person, Chapter 13 might be a better alternative. To seek the best solution on what suits you or your business, reach out to some of the best attorneys in town at 888-297-6203 now!

    • Chapter 7
    Chapter 7 is a bankruptcy code which is available for qualifying individuals as well as businesses. This is also referred to as a liquidation Chapter because it is all about liquidating the assets to pay out the debts on the basis of priority. The court has exemptions and other regulations that allow it to classify exempt and nonexempt assets. The nonexempt assets are auctioned, sold, or disposed by the bankruptcy trustee on behalf of the creditor. The common misconception about Chapter 7 bankruptcy California code is that a business or the person might lose all assets when filing Chapter 7 bankruptcy. However, it isn’t true. Using various exemptions and other settlement alternatives, businesses or individuals can safeguard their non-luxury assets.

    • Chapter 11
    Chapter 11 is similar to Chapter 13 but is available for businesses as well. It is pre-dominantly used by corporates and businesses. But it can be used by individuals who have many complex transactions and do not qualify for Chapter 13. The fee for Chapter 11 is slightly higher and it deals with putting forward a plan to settle the debts in the near future. On the basis of the proposed plan, the debt is restructured.

    • Chapter 13
    Chapter 13 is a future-oriented payment plan that has certain debt type thresholds for eligibility. It is a plan that focuses on debt settlement based on the disposable income available for the filer in the future 3-5 years. This ideal for home mortgage bankruptcy filers and other filers who had like to retain most of their assets.
    Still confused on what you should do, which Chapter, is bankruptcy ideal for me, if yes when now or later? These are some common questions that keep revolving in a financial crisis situation. Seek professional help and let them take over all your troubles and concerns. Dial in 888-297-6203 now for the right answer!


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

      *Do you own a home?

      Are you currently working?

      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

    • What Happens to Personal Injury Award in Case of Bankruptcy?

      What Happens to Personal Injury Award in Case of Bankruptcy?

      An injury sustained due to negligence or accident can cause immense trouble for people. They are often struggling financially due to overwhelming medical debts and are often accompanied by long durations of being out of work and in severe pain. Many of such people, with the help of excellent personal injury attorneys, sue the negligent party for a personal injury award. However, if the same person is struggling financially and is contemplating filing for bankruptcy, one of the major concerns they have is; what happens to their personal injury award in such a situation? Do they get to keep the entire personal injury claim or a part of the award?

      Different consumer bankruptcy types and their effect on monetary damages obtained through personal injury claims

      If you are struggling with finding the best possible recourse to take care of your debts, call 888-297-6023 to ask counsel from expert bankruptcy lawyers. According to Los Angeles based bankruptcy lawyers Recovery Law Group consumers can file for bankruptcy under two chapters; Chapter 7 (liquidation bankruptcy) and Chapter 13 (wage earner’s plan). Both chapters have different requirements, procedures to deal with your debts and ways of handling personal injury claims.

      Chapter 7 bankruptcy

      In this case, any unsecured debts of the debtor like credit card bills, medical bills, personal loan, etc. can be discharged by the bankruptcy court; while any non-exempt assets the debtor has, are sold to pay off secured creditors. Since in this type of consumer bankruptcy, the court allows discharge of most unsecured debts, the debtor needs to claim an exemption to keep the property. The personal injury award becomes a part of the bankruptcy estate while the case is pending.

      The California Code of Civil Procedure offers two basic provisions for exemption of personal injury damage. As per Section 704.140, the wide-ranging exemption is provided, showing that the personal injury award is essential for the support of the judgment debtor as well as their spouse and dependents. Section 704.150 provides an exemption in case of wrongful death claim award. Section 703.140(b)(11) on the other hand provides an exemption of wrongful death awards deemed necessary to support survivor’s dependents and personal injury award up to $24,060. Since both schemes have their own benefit, it is important for a bankruptcy filer to choose wisely (section 703 or 704).

      Chapter 13 bankruptcy

      In this type of bankruptcy, the court reorganizes the debt obligations of the bankruptcy filer; some debts are paid back, some are reduced in amount while some others are discharged. In this case, the debtor is paying a certain amount of the debts back as per the court-approved repayment plan. Thus, they are entitled to keep some or all payment they receive from a personal injury claim. However, the amount they can keep for themselves depends on a few issues including what is to be paid to unsecured creditors.

      Many times, debtors might choose to exempt their award, depending on their situation. Since laws are often complicated, it is important to hire the best legal minds to take care of issues like bankruptcy and personal injury claims. While the expertise of a personal injury lawyer lies in trying to get the best compensation for your injuries, a bankruptcy lawyer California can help save as many of your assets as possible. It is important for a person who is undergoing both issues simultaneously, to have the best legal counsel for both matters. The bankruptcy lawyer and personal injury lawyer can work in tandem so that their client gets and retains most part of the personal injury award during their 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.

      • Utility Bills and Bankruptcy

        Utility Bills and Bankruptcy

        Sometimes, there are things more important than your favorite car or even a farmhouse during a bankruptcy that you may have to worry about. Not having electricity for heater or air conditioner during winter or summer can be a more serious issue. Most bankruptcy solutions do not address how to tackle the basic utility expenses. Under the bankruptcy law, utilities are also regarded as a priority and are monitored or addressed very cautiously. There is very little time to delay or postpone the dues due to utilities. Not having water or electricity can certainly be life-threatening. The average time to pay out water or electricity is about 19-20 days once it is due. If the payment is not cleared in 19 days, a notice is issued to the individual with a maximum extension of 15 days before the supplies are cut.

        It is not an easy process to re-establish the water or electricity supply or any other basic utility supply once it has been cut due to non-payment of dues. The service providers may levy a hefty penalty and might also require a security deposit before restoring the services. The penalty or fee charged for restoring the service is also described as reinstatement fee. These fines and deposits could prove very expensive especially when you are bankrupt. Utilities are something which is not optional but is basic.

        How to prevent termination of utilities?

        If you can pay your utility bills as the first priority as and when it is generated, that could be the best alternative. If not, you need to make immediate requests and arrangements with your service provider in order to retain your utilities. Most service providers based on goodwill and some other considerations can offer an extra grace period if the provider is kept regularly informed about the delay and estimate due to clearing status. If the financial crunch seems to last longer and if you think you might not be able to pay the utility bill, you must immediately try and sort a payment plan with the service provider. Some providers offer amortization plans and flexible payout only when the financial crunch is communicated well in advance to the provider.

        If you do not connect with your provider and your services get disconnected, the consequences could be costly, time-consuming and tedious. You would not like to be experiencing the same. Certain states like California offer some assistance programs for people based on their income level to subsidize or support the utility payments. California Alternate Rates for Energy is one such program that provides a substantial discount of up to 20% on natural gas, water, and electricity bills. You might want to check all info about the programs in every city may be Dallas, San Antonio, Los Angeles or elsewhere. Log on to Recovery Law Group to know more about the programs and your rights.

        Declaring bankruptcy shields your utility services

        The bankruptcy laws help to prevent utility companies in disconnecting your utility services. To avail automatic stay with respect to utility bill liabilities, one has to apply for bankruptcy before the services have been disconnected. No matter, if the dues are not paid for a considerable amount of time and you have received threats for connection cuts until your connection has been cut, you are eligible for the automatic stay protection that keeps even the utility companies in the bay from the collection and supply disconnection threats. However, no matter if being an individual you file bankruptcy through Chapter 7 or Chapter 13, you need to assure the utility companies for payment of dues in not more than 20 days. This tenure is 30 days for businesses who could file bankruptcy under Chapter 11.

        The utility companies might need assurance to grant you the 20-day or 30-day extension after you file bankruptcy. The request might be only if you are looking to release/discharge your utility bill payments or have defaulted more than one recent due. If you are current with your utility payments and are not looking to release the utility payments as forgiven debts, there usually isn’t any objection from the utility companies. When you are making attempts and have the intent to pay off the utility debts, there usually is no problem.

        Make a wise call at the right time

        With respect to utility bills, you just cannot be on the wrong foot. Communication with your water, heat, power suppliers is so very essential. Keeping up with the utility bill payments is also so very important. If you are in a hard situation and do not know how to manage bankruptcy, utility bill payment dues, and other aspects, solution/help is just a call away 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.

        • Bankruptcy Law For Fisherman and Farmers

          Bankruptcy Law For Fisherman and Farmers

          Famers and fisherman hold an important place in the economy of the USA, still, there was no permanent law for them to declare bankruptcy. Of late, Chapter 12 is introduced for family farmers and family fisherman, who may want to seek bankruptcy law. To know about other Chapters and bankruptcy in the whole log on to Recovery Law Group.

          A brief history of Chapter 12

          Chapter 12 was introduced by Congress to help farmers and fisherman who were struggling with debts during the emergency in 1986. However, it was a temporary structure that became permanent only in 2005. This law is not so popular and is scarcely employed by people.  The lack of popularity is both due to ignorance and rigid eligibility criteria. That’s why in comparison to Chapter 13’s 1.4 million reported cases in 2011, there is only 637 case reported for chapter 12.

          What is the basic eligibility for Chapter 12 Bankruptcy?

          A person-single or married; corporations or partnership’s that have stable, regular annual income are eligible for filing under Chapter 12 bankruptcy law. The debtor must satisfy the following parameters.

          • The debtor must be involved in farming or fishing occupation and must obtain 50% of the gross revenue from it.
          • The total debt for the farmers and fisherman must not surpass $4,153,150 and $1,924,550 limit respectively.
          • The debt should be because of the farming and fishing occupation and not for personal usages, like house mortgage, etc. 50% of the loan amount must be due to the farming occupation, and in case of the fishing business, 80% of loan must be due to the fishing

          In the case of corporates and partnership, the family must singularly own more than 50% of the equity or stock interests, then only its eligible to file bankruptcy under Chapter 12.

          Chapter 12

          The farmers or fisherman can file under chapter 12 when they are not able to pay their loans and are looking for some relief from the debt. The government appoints a bankruptcy trustee who examines the case and reports to the court. The trustee examines the documents, monitors the debtor’s business operations and investigates means and ways to strategize a plan for the repayment.

          The payment process in Chapter 12 works like chapter 13. Apart from unusual circumstances, the debtor is allowed a time frame of 90 days from the day of filing to table his repayment plan. The payment plan must be completed within 3 to 5 years. Basically, the loan repayment time frame is 3 years, which can only extend to 5 years if the client is bounded to family obligations like alimony or child support.

          Approval of Chapter 12 by the court

          Once the petition is filed by the client for acquiring Chapter 12, the court appoints a trustee to analyze the client’s financial status. Based on the report of the trustee the court grants confirmation to the client. The confirmation verdict comes within 45 days of filing the case.

          Pointers of Chapter 12 plan

          1. Execution of payment plan

          The client must commit all his disposable income to the trustee. The term ‘disposable income’ in Chapter 12 denotes to the balance amount achieved after deducting the revenue acquired by the client’s fishing or farming occupation, to the sum required to manage business and family expenditures. Once a sum is achieved as disposable income, the trustee employs it to disburse the loan, as per the payment plan.  After extracting its fee, the trustee, distributes the remaining disposable income to the creditors.

          1. Cramming down of secure loans

          The debtor has some secured loans to be cleared. After filing the case under Chapter 12, the debtor can cram down his secure loans. The word ‘cram down’ means the debtor can reduce or lower his secured debt on mortgaged articles as per the market value. The debtor must only pay the market value of the collateral pledged article. Any amount excess than that is treated as unsecured loans, which under Chapter 12 the client gets the benefit of paying little or no amount against it. The debtor can take the liberty of stretching the time beyond the term plan to pay his secure loans.  The interest in the secure loan is also settled as per the ongoing market rate.

          1. Discharge of loans

          Although the court must investigate the best interest of creditors, it cannot do much for unsecured loan creditors. The case can be treated similarly as the Chapter 7 bankruptcy case of clearing the debt by selling liquid assets. However, any loan amount above that is discharged. Hence the creditors must be satisfied with meager or no payment at all in some cases. The debtor’s unsecured loans can be discharged by the court depending upon their financial situation.

          Wrapping the case

          Once the judgment is passed the case remains open till the debtor completes his payment to the Chapter 12 trustee. The debtor acquires a discharge, and the case is wrapped up once all the payment procedure is complete.  The discharge releases accountability of debtor towards any obligations, even those that may not be within the Chapter 12 plan. However, some obligations like alimony and child support, are non-dischargeable, which the debtor cannot steer clear of. The court can dismiss the case if it does not find strong evidence. The filer can also dismiss the case or file his case under Chapter 7 bankruptcy California. For sound advice on bankruptcy and right solutions for your circumstances contact 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.

          • All You Need to Know About Chapter 13 Bankruptcy

            All You Need to Know About Chapter 13 Bankruptcy

            Chapter 13 is a code which allows you to repay debts as per a payment plan over the next 36-60 months. The payment plan focuses on retaining assets and debt pay off from disposable income. Chapter 13 can be advantageous, but you need to know many things about the same. The in-depth details about Chapter 13 will be discussed shortly.

            Eligibility

            Chapter 13 bankruptcy has some eligibility criteria just like other criterions. Firstly, there is a debt threshold for secured and unsecured debt. You might want to know about the threshold at Recovery Law Group. If you exceed the threshold, you are not eligible to file for Chapter 13 bankruptcy. There are ways and exceptions to achieve eligibility to Chapter 13 also, which you will learn only when you get in touch with a qualified attorney.

            Apart from the debt threshold, one should also have a steady and consistent income in order to qualify. Since Chapter 13 is all about a future payment plan, steady income is the basic requirement for the plan to prosper. An ideal candidate would be who is not near the retirement age and is getting a W-2 wage salary every month consistently. With this flaw, businesses do not qualify to file for bankruptcy via Chapter 13. This is suitable only for an individual filer.

            The process involved for filing bankruptcy under Chapter 13

            To be honest, Chapter 13 bankruptcy is beneficial sometimes but far more complicated than Chapter 7 another alternative available with the individual filers. To begin with, you need to pay for a credit counseling fee and get counseled on your irresponsible financial management that has led to bankruptcy. This course has to be completed from the recognized facility and a certificate of complication has to be presented when filing for bankruptcy in California. The fee can range between $25-$35 or maybe even higher. The sad part is that Chapter 13 filers rarely get any discount or rebate or free counseling classes. Adding salt to wounds, you shall pay a bankruptcy filing fee with the certificate of completion to begin your process of bankruptcy.

            The big, fat repayment plan

            The repayment plan is under the spotlight in Chapter 13. Every lender wants to get maximum debts restored while as a bankruptcy filer, you want to release as much of debt possible. The good thing is that the filer first proposes a repayment plan and it not enforced on the filer by the court or the lenders. However, due to the contradicting interests of the lenders and the debtor, the plan may always be in a controversial space. The filer has to sit and analyze his/her disposable income and arrive at the net monthly payouts he can make for the next 36-60 months in order to clear as much debt as possible. There are three basic requirements for the plan to be approved-

            • It should be practical and feasible. Your entire income cannot be payout towards the debts, nor a small chunk of disposable income shall be satisfactory for all debts. So, the plan should not only look excellent on paper but should also be feasible and practical to implement in the future.
            • The plan should be put forward in good faith and there should be no intention of releasing the debt. There no way to demonstrate good faith perfectly but definitely it should put forward all facts and should be focused on creating a reasonable and practical settlement option.
            • Finally, the plan should be compatible with the bankruptcy law book. There are some rules to be followed irrespective of whether the lender and debtor have compromised. Such comprises have to be sorted out outside the court and rules need to be followed strictly in the bankruptcy court and the bankruptcy trustee keeps you on your toes for that.

            Keeping up with the plan

            After getting the payment plan approved, it is important to keep up with the monthly payments as indicated in the plan. If your income has changed (decreased) the plan might need to be modified and under the hardship exemption, a certain portion of debt can be discharged. The hardship could be illness, change in work location, significantly higher cost of travel or any other expense related to the income generation activity, etc. Depending on circumstances you may or may not be exposed to interest charged by the lenders. For better advise and suggestions contact 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.

            • Social Security Benefits Retention and Bankruptcy

              Social Security Benefits Retention and Bankruptcy

              The retired citizens of the USA can enjoy the benefits of social security fund, although it may be a meager sum. Social security funds are a fixed amount that the USA Government obliges its citizens to enjoy after retirement. The social security fund is managed by taxes paid by the citizens. Social security fund is a fixed amount a retired citizen receives every month throughout their life after retirement.  This amount may be substantial, but it is of great help to people who are retired and helpless. Being an old retired person, with no secure income, any amount is good.

              Old age attracts a lot of expenses be it medical or health, pooling of all the retirement funds, may sometime prove to be less. The retired person may take loans to cover their expenses. Under Chapter 7 the retired citizens can apply for bankruptcy if they are not able to support themselves and pay the loan availed for health treatment.

              Exploiting Chapter 7

              There may be cases where the retired citizens may want to exploit and enjoy the benefits by declaring bankruptcy. The court may not justify bankruptcy and ask the retired citizens to employ Chapter 13 to repay their loans under easy payable installments. The court may observe all the plans and resources that the retired citizens may utilize and the net savings after the expenses. Scrutinizing the income and expenses balance sheet, the court may suggest the employment of Chapter 13 to repay loans to the creditors.

              In the case where the expenses cancel the income and just a mere social security benefit remains the client can seek Chapter 7 bankruptcy. Such retired citizens may have difficulty in paying debts and can take help. The court, however, is stringent and undertakes scrutiny before declaring bankruptcy.

              Should Social security benefits be included in the income figure?

              Enjoying Social security benefits are the basic rights of all retired USA citizens. Social security number is specifically designed to the citizens of the USA, so that they can lead a respectable life after retirement. People who are affluent can surrender social security benefits. However, old age brings in a lot of medical expenses, surgeries and other health expenses that may propel them to take loans to cover the expenses. The loan may turn into a huge pile making it difficult for the retired citizens to pay. Once they are thick into the debt, they find no other way but to declare bankruptcy.

              The court after observing the dire circumstances may allow the client to declare bankruptcy. The court undertakes the lifestyle enjoyed by the client and the means to fund and support their future life. It is not easy to convince and justify the case in court. The client can seek professional help by consulting Recovery Law Group.

              Surrender social security benefits?

              Arguments and discussions often circulate regarding the securing of Social security benefits after declaring bankruptcy. The argument stresses that the client may have too many benefits in their hand. However, the client can voluntary surrender social security benefits. Apparently, as the case goes the client is sucked badly by the loans and can barely make the ends meet. In such case, the Social security benefits are exempted from bankruptcy procedures.

              The retired citizen can keep their Social security benefits even after declaring Bankruptcy. Social security benefits need not be an issue for clients who are honest and in a bad situation. They may require every support and money, even if it is in the form of Social security benefits. The case of such clients is genuine, and the court supports them and therefore exempts social security benefits even after declaring bankruptcy. To present your case strongly in court you may contact at this number- (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.

              • Key Differences Between the Bankruptcy Code and the Federal laws for Bankruptcy

                Key Differences Between the Bankruptcy Code and the Federal laws for Bankruptcy

                The bankruptcy procedure does not start a local state court. Instead, the official bankruptcy papers are usually presented to the clerk at the Federal court. This is because bankruptcy is a federal process and is governed by the Federal rules for bankruptcy. The law allowing the use of Chapters 7 and 13 is as per the bankruptcy code. The Federal laws for bankruptcy procedure act as a guide to the courts to implement the bankruptcy law.

                What does the bankruptcy code consist of?

                Bankruptcy code can define the following-

                • Eligibility to file a bankruptcy case, answers for who can file
                • Outlines the responsibilities of a debtor or the filer
                • The responsibilities of the bankruptcy trustee who administers the case
                • Affected properties and application of state exemption laws where necessary
                • What type of debts shall be released and what type of debts shall be considered as non-releasable?
                • How a lender can make a claim
                • The prioritization of debts and release of debts based on the lender’s claim

                For more in detail analysis of the bankruptcy code, visit Recovery Law Group. The bankruptcy code additionally is divided into several chapters. We see the use of a specific Chapter due to eligibility and other benefits. The different chapters with a brief can be listed as follows-

                • Chapter 1 has been designed for general provisions
                • Chapter 3 is for case administration
                • Chapter 5 defines the lenders, debtor/filer and the estate
                • Chapter 7 is straight liquidation of non-exempt assets during bankruptcy
                • Chapter 9 refers to re-setup for the municipalities
                • Chapter 11 is the re-organization for businesses which applies to individuals doing business as well
                • Chapter 12 refers to re-organization for fishery-related individuals and farmers
                • Chapter 13 is a payment plan for individuals, which aims at settling dues over the course of 3-5 future years
                • Chapter 15 gives insight on cross-border cases and some of the ancillary cases

                Federal rules of bankruptcy and the bankruptcy code

                Every court in the United States has a rule book which guides its course throughout a bankruptcy case. The Federal rules for bankruptcy help in the implementation part. The Supreme Court was granted authority by Congress to amend and/or write rules that govern the bankruptcy cases. The objective is to enable quick and inexpensive access to justice for all parties. There are different rules outlined by the Supreme Court that help in creating a standard/uniform system in order to enable the objective of quick and inexpensive justice. It is important to note that if there is a conflict amongst the Federal law and the bankruptcy code, the court shall go as per bankruptcy codes. The federal rules can be listed as follows-

                • Rule No. 1002 highlights the commencement of the case. It deals with the filer, petition and the selection of an appropriate Chapter
                • Rule No. 1005 refers to the caption of the petition. The caption in a bankruptcy case includes basic details of the filer like his name, address and also the court’s name/location in which the case is to be filed
                • Rule No. 1006 is with respect to the filing fee. The petition or the document must consist of a filing fee. If the filer is eligible for a waiver of fee or has a request for paying the fee in installment, such document or request must also be added with the petition document
                • Rule No. 1007 has all the schedules, timelines, documents, lists, statements, etc. This rule basically explains all the important timelines, statements, and documents that need to accompany the petition before filing
                • Rule No. 1008 deals about verification of petition and the documents accompanied with it. The petition and documents filed should be verified by an oath or a declaration (which is usually a signature of ‘I certify’)

                Other deviations in bankruptcy rules

                There can be some rules enacted by the bankruptcy court that is specific to a particular district. The court has full independence to enact such rules. These rules are usually administrative and deal with the procedure of motion, entering orders, briefing schedules setup instructions, local form filing requirement or instructions, etc. Similar to the local bankruptcy rules, there can be some bankruptcy judge specific rules. The judge’s personal preferences can be articulated as rules in that particular court. These types of rules may include a policy for emergency motion, telephone/video evidence or hearing, court staff interaction, hearings procedure, etc.

                Law is a complicated child and is best managed by the rightful parents. An attorney or a lawyer can better guide you in your complicated situation. You just need to call +1 888-297-6203. This is your one-stop solution for all your legal needs.


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                  By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                • Is it Possible to get rid of Tax Debts in Bankruptcy?

                  Is it Possible to get rid of Tax Debts in Bankruptcy?

                  Filing for bankruptcy, especially under chapter 7, can help get rid of several unsecured debts like credit card bills, medical bills, etc. However, certain debts like government taxes, or money owed to IRS or state of California, may or may not be discharged during bankruptcy. It is important to seek legal counsel, suggest Los Angeles based bankruptcy law firm Recovery Law Group to know more about this matter. To get your state and federal taxes discharged during Chapter 7 bankruptcy, you need to clear certain hurdles.

                  1. More than three years have passed from your tax due date.

                  It is important that it has been more than 3 years since your taxes were due for getting a chance at having tax debts discharged. In case your 2014 taxes were due on April 15, 2015, the discharge date for 2014 taxes is pushed back to April 15, 2018. An extension could further delay the timeline.

                  1. Your tax returns have been filed for more than 2 years.

                  IRS and California State, both taxing authorities ensure that they have enough time to study the tax return papers and collection process. Filing of late tax returns and then filing of Chapter 7 bankruptcy case the same time will not provide them with enough time to evaluate your income, assets, and your claims. Filing tax returns at least 2 years prior to filing provides ample enough time to ensure that everything is in order. If your tax returns are filed and sorted for two years or more, you have a better chance of getting rid of tax debt during bankruptcy.

                  1. Tax debt has been assessed for 240 days prior to filing.

                  State and federal taxes are assessed at different times. While IRS assesses taxes within 6 weeks of return filing, every state has a different timeframe. Thus, your tax debts must have been assessed at least 240 days prior to bankruptcy filing to improve your chances of getting rid of tax debts.

                  1. You haven’t committed fraud.

                  Everyone deserves a second chance. In case you have a legitimate reason for not filing of taxes, you don’t have to worry much; however, if you made any attempt to cheat the system (like filing false tax returns, etc.) you reduce your chances of getting a discharge abysmally.

                  Can you get rid of tax debts using Chapter 13 bankruptcy?

                  In this case, a repayment plan is drafted keeping in mind your disposable income, your assets, and your debts. Priority taxes (tax debts due for less than 3 years) need to be paid in full, generally without penalties, during Chapter 13 repayment plan. Any non-priority taxes (tax debts) are treated in a similar fashion to unsecured debts like credit cards, etc. They are paid according to the debtor’s disposable income as per the repayment plan. Thanks to the automatic stay, IRS and the state authorities cannot initiate any collection actions including wage garnishments, threatening phone calls, lawsuits or foreclosure.

                  People are often confused regarding which chapter of bankruptcy would suit their case. It is therefore important to consult expert bankruptcy lawyers at 888-297-6023 to find out if bankruptcy or debt negotiation is a better option for you.


                    *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.

                  • Filed for Bankruptcy but don’t know where the Los Angeles Bankruptcy Courts are? This will help you.

                    Filed for Bankruptcy but don’t know where the Los Angeles Bankruptcy Courts are? This will help you.

                    Many times, people file for bankruptcy to avoid extreme financial issues, like excessive debt. However, many people are clueless regarding the procedure as well as the location of bankruptcy courts. If you are a resident of Los Angeles and are considering filing for bankruptcy but don’t have any idea where a court hearing or meeting of creditors will take place, you are in luck. Bankruptcy cases in Los Angeles are filed with U.S. bankruptcy court for the central district of California. The L.A. division takes care of entire Los Angeles County while other districts have separate courthouses. To find out where you need to go for your bankruptcy hearing, you can enter your ZIP code and find out your courthouse.

                    Proceedings in a bankruptcy court

                    Consumers can file for bankruptcy under chapter 7 or chapter 13. Bankruptcy proceedings, also known as a 341 (a) meeting, involves creditors and bankruptcy trustee, who oversees your bankruptcy estate to find out what property can be distributed to the creditors. This meeting takes place 6 weeks after filing for bankruptcy. You are required to submit your tax returns from the most recent years, at the meeting.

                    Filing for bankruptcy means you need to attend a creditors’ meeting in 30 days after filing your case. Generally, the meeting is simple, if all your papers are in order. The meeting is presided by your bank trustee, and often, unless there is an objection to any exemption, your case is set for a hearing before the judge. Many times, bankruptcy filers do not have to enter a courthouse, except for the creditors’meeting. It is important to note that during a courthouse visit, you should have proper identification papers. The courts function between 9 a.m. and 4 p.m. all through the week (Monday to Friday) except on federal holidays.

                    The bankruptcy lawyers of Los Angeles based firm Recovery Law Group suggest that having an experienced attorney by your side can definitely ease the burden of bankruptcy. They ensure that all your papers are in order so that you get a discharge (in the case of Chapter 7) or a repayment plan approved (Chapter 13) without any delay. Since the Central District of California is a part of the Ninth Circuit, which hears more cases compared to other federal circuits, it makes sense to hire lawyers to handle the legal work. In case you haven’t hired a bankruptcy lawyer for your case, you can call 888-297-6023 to discuss your case with bankruptcy lawyers.

                    Los Angeles metro region courthouses

                    There are 5 division courthouses in the Los Angeles metro region. Here are all the details about them, including how to reach there:

                    1. Los Angeles Division Courthouse serves the most of L.A. County and is located at Edward R. Roybal Federal Building and Courthouse, 255 E. Temple St., Room 940, Los Angeles, CA 90012. There is no public parking available at the courthouse but local parking near City of Los Angeles Public Parking Lot 2 (330 E. Temple St.), Also Parking Garage (101 N. Judge John Aiso St.) and Los Angeles Mall Public Parking (225 N. Los Angeles St.) is available. 341(a) meetings are generally held in Suite 1050 (10th floor) at 915 Wilshire Blvd. which is merely 10 minutes’ drive from the courthouse.
                    2. Riverside Division Courthouse located at 3420 12th Riverside, CA 92501, serves Riverside and San Bernardino counties. Local parking is available at 12th Street Parking Structure (3535 12th St.), Riverside County Administrative Center (4090 Lemon St.), apart from metered parking near the courthouse. The 341(a) meetings are located at 3801 University Ave. which is half-mile away from the courthouse. Chapter 7 and 13 meetings take place on the 1st floor while that for Chapter 11 take place on the 7th floor.
                    3. Santa Ana Division Courthouse serves the Orange County. It is located at the Ronald Reagan Federal Building and U.S. Courthouse, 411 W. Fourth St., Santa Ana, CA 92701. People can use public parking available at Third and Birch streets, Third Street and Broadway, and Fifth and Main streets; and metered parking available at Third, Fourth and Birch streets. The 341(a) meetings take place in the courthouse; Chapter 7 on the 3rd floor and Chapter 11 and 13 on the 1st
                    4. San Fernando Valley Division Courthouse is located at 21041 Burbank Blvd., Woodland Hills, CA 91367 and serves portions of Los Angeles and Ventura counties. Free parking is available on site. All 341(a) meetings for different bankruptcy chapters take place at the 1st floor of the courthouse.
                    5. Northern Division Courthouse serves San Luis Obispo and Santa Barbara counties and portion of Ventura County. It is located at 1415 State St., Santa Barbara, CA 93101, where free parking is available on site. All 341(a) meetings take place on the 1st floor at 128 E. Carrillo St. (nearly half-mile away).


                      *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.