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  • My Cosigner Filed for Bankruptcy; Does it Impact Me?

    My Cosigner Filed for Bankruptcy; Does it Impact Me?

    In many different places, getting loans or line of credit is not easy. There is always a requirement of a guarantor or a cosigner. Parents, relatives, spouse, or friends could play as guarantor/cosigner. How does the bankruptcy of one cosigner impact the other person? This is what we will discuss in detail here. For best and quick solution on bankruptcy related issues, just hop to Recovery Law Group.

    Cosigner and the relationship

    A Cosigner is a person who is liable to pay the loan in case the primary borrower defaults. The Cosigner is the backup plan for the financial institution to recover its debt. The cosigner could be a known or unknown person who agrees to do so. Cosigners are common for people with short or no loan or credit history. People with bad credit score, lower income, no assets to pledge as collateral, etc., usually require a cosigner for swift loan approvals. California, Texas, New York, Los Angeles, etc., are some states where you would typically see the use of cosigners a lot. However, as a cosigner one can be held liable in case of defaults, bankruptcy and other scenarios. Hence, one should be very cautious when opting for the role of a cosigner.

    Impact of bankruptcy declaration

    The unsecured debts which are usually the case with the debts associated with cosigner get released when bankruptcy is filed. The obligation for the primary debtor to pay off the debts is released. This is true for all types of unsecured debts. This release of obligation, however, does not apply to the cosigner and he/she still remains liable to the debt not paid by primary borrower due to bankruptcy. The primary borrower may declare bankruptcy through Chapter 7 or Chapter 13. In the case of Chapter 7 bankruptcy declaration, the primary borrower gets an ‘automatic stay’, which evades the borrower from all unsecured creditors. However, this benefit does not shield the cosigner. This means the risk and liability will shift to the co-borrower or cosigner completely.

    How to protect your cosigner?

    There are ways to protect the cosigner. The primary borrower is the primary link for the bank or any other financial institution. Hence, the cosigner would not know if any payment due has been missed or not been paid. Keeping the cosigner informed in advance can help in keeping the loan current and reducing the number of payment defaults. If you are the cosigner, it is a good practice to keep a check on the payments on every due date. Any payments missed will directly impact on the credit history, score and various other parameters for both the parties involved in the transaction.

    • Reaffirmation of loan

    Reaffirmation is a very difficult decision to make. This is another way of releasing your cosigner. Reaffirmation is the process of making the self completely liable for the loan. The process also will not allow you to discharge the unsecured debt even if you declare bankruptcy in the future. The bankruptcy of the primary borrower would not affect the cosigner however, default would. In the case of loan default, the cosigner will still be liable.

    Chapter 13 bankruptcy declaration

    Compared to Chapter 7 bankruptcy option, Chapter 13 is very beneficial for the primary borrower as well as the cosigner. The ‘automatic stay’ under Chapter 13 covers and protects the cosigner along with the borrower. This is applicable only if the primary borrower accepts to pay the debt in full and includes the same in Chapter 13 repayment plan. When creating a Chapter 13 repayment plan, one can include the cosigned debt and continue to pay the installments with the income available for disposable. This safety shield is a weak one though and can be breached by the creditors if payments are missed or if the bankruptcy is no longer applicable. Making payments regularly as per the Chapter 13 payment plan is the only way to safeguard your and your cosigner interests.

    Credit score implications

    A credit score takes a severe beating of about 200 points if not more if bankruptcy is applied or declared by the borrower. The cosigner might not be directly impacted by the primary borrower’s bankruptcy unless and until he/she continues to make the payments on time. The bank or financial institutions does not care if cosigner or primary debtor is paying the dues, the payments have to be made on time. Until this is true, cosigner’s credit score is safe. Missed payments directly negatively impact the credit score of both parties involved, the primary debtor as well as the co-borrower.

    What happens if the scenario is reversed?

    What if the cosigner or the guarantor is going to file bankruptcy? This can be a serious problem for the primary borrowers. Even if you are current with your payments, you can be in default if your guarantor defaults. This holds good in most student loan scenarios. This directly has a very negative impact on your credit score as well. To minimize damage, the best way is to disassociate the guarantor from the loan either by proving your credit worthiness based on historic payments to the bank or by employing a new guarantor. It is, however, difficult to remove or replace a cosigner or guarantor.

    Cosigner and borrower relationship can be more complicated than it looks. If you are confused, need help or specialized professional assistance, reach out to (888)-297-6203 for the best solution for all your doubts and questions.


      *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.

    • Child support and Bankruptcy

      Child support and Bankruptcy

      Child support is one of the most priority or preferential payments in the eyes of law. One might be able to evade all kinds of secured/unsecured loans but getting away with child support is probably the most difficult task no matter how poor or bankrupt you may be. One more debt that comes in this category is student loans. Students could complete graduation and apply for bankruptcy then and get away with any sort of student loan on their name. This is the primary reason why Student loan has been excluded. Similarly in the case of child support, the federal government, and the law place special emphasis on the care/support of children. The court is very strict on individuals using bankruptcy as a mode to evade supporting their children. Some other debts that include criminal offenses, legal fees, drink, and drive ticket, etc., are also excluded from the bankruptcy procedure.

      Bankruptcy can help you with your child support obligations

      Child support is the responsibility of both parents. Child support is the financial assistance for the child until a specific age or until and unless the child becomes capable of covering his/her own needs. The parent who is not having the custody of a child usually pays for child support. On the other hand, the custodial parent has to take care of housing expenses, food/daily care, etc., for the child. The child support is usually determined by the court depending on various factors like income of the parents, specific child needs, duration of support required, etc. The payments are to be used for childcare and they can be direct in cash or cheque to the custodial parent or could be indirect in the form of purchases.

      Wage garnishment rules

      Wage garnishment is the process of withholding the income from the W-2 directly by the authorities in order to direct the same towards child support. The percentage of the garnishment varies based on state. As per California, the percentage could go as high as 65% under certain conditions. Under the rules, the child support has to be paid for at least 18 years and could go to 19, if the child is not married and is pursuing education. log on to https://bankruptcy.staging.recoverylawgroup.com/ to know how you can prevent wage garnishment and other consequences.

      Child support scenario with Chapter 7 and Chapter 13

      In the case of Chapter 7, the surrendered assets or otherwise called non-exempt assets are to be liquidated and the debts are to be settled with the proceeds. The first right on the proceeds is towards the child support and/or spousal support. Once the proceeds satisfy both of them, the remaining proceeds shall be used for repaying secured debts first and then the unsecured ones thereafter. Whatever debts are not covered in the proceeds of liquidated assets shall be forgiven or written off by the debtors. The case, however, does not hold true in the case of Chapter 13 bankruptcy. Since Chapter 13 proposes a payment plan for a period of 3-5 years. The biggest difference with respect to the ‘automatic stay’ offered under Chapter 13 and Chapter 7 is that the former offers protection in case of child support also.

      Being current on child support is the basic requirement for receiving any kind of release of debt under Chapter 13. If you are behind on the child support payments, get current on it for beneficial bankruptcy settlements. No matter if you are using Chapter 7 or Chapter 13 bankruptcy, there are certain modes of making child support payments easier. Evading child support isn’t right legally as well ethically but in case you need help in making your life easier with child support call +1 (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.

      • Can You Convert Your Bankruptcy Chapter?

        Can You Convert Your Bankruptcy Chapter?

        Filing for bankruptcy is a big decision. It is important to choose the bankruptcy chapter which can help protect most of your assets and results in the discharge of various debts. There are numerous factors involved while choosing a specific chapter to file bankruptcy. A lot of what happens to your circumstances and the time taken to discharge depends on the chapter of bankruptcy you have filed for. However, if your circumstances change, there are provisions available to switch the bankruptcy chapter. Changing bankruptcy chapter can be a complicated process.  Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, therefore, advised that you consult a qualified attorney to get your bankruptcy discharged and get a fresh start.

        Type of bankruptcy which can be filed in California 

        Chapter 7 (liquidation bankruptcy) and chapter 13 (wage earner’s plan) are the major bankruptcy types available for consumers. In the case of chapter 7, your assets will be sorted into the exempt and non-exempt property. In the state of California, two exemption systems exist which cover different amounts of properties like home, furniture, care,  etc. System 1 exempts $75,000 and $175,000 of equity in the home and $3,060 in case of a vehicle; whereas according to system 2, you can avail $26,800 in home equity and $5,350 for your car. Due to the difference in exemption amount, it is best to work with a financial advisor or bankruptcy attorney to protect most of your assets.

        The exempt property is safe during the bankruptcy process while any non-exempt property you have is sold off to repay your loans. In the majority of cases, bankruptcy filers are able to get most of their property exempted and therefore don’t have to surrender any. The unsecured debts (credit card, etc.) are discharged after bankruptcy. With secured debts, you have the choice of making payments to keep the assets or surrendering the assets if you cannot afford to pay the debts. To qualify for chapter 7 bankruptcy, you need to pass the complicated means test which compares your income to the average income of a family your size. In case you fail to pass the means test, chapter 13 is the bankruptcy option available for you.

        In the case of chapter 13 bankruptcy, a repayment plan is devised keeping your debts, assets and average income as well as expenses. According to this plan you are expected to make monthly payments from your disposable income to your bankruptcy trustee who then distributes it amongst your creditors for a period of 3-5 years. Any unsecured debts which remain after the repayment plan are discharged. You can continue making payments for secured debts throughout and even after the repayment plan.

        The automatic stay provision is available in both chapters of bankruptcy. Thanks to it, your creditors cannot contact you to demand any payments, any foreclosure or repossession actions cease and so does wage garnishment and bank account levies. Thus you get some respite from constant creditor harassment while the court goes through the bankruptcy process.

        Converting a chapter 7 bankruptcy to Chapter 13

        Most debtors prefer chapter 7 if they are able to qualify for it. This is so because you get to keep almost all your assets, all your unsecured debts are discharged sooner since typically this bankruptcy takes less time than chapter 13. It, therefore, is difficult to comprehend why someone would convert from chapter 7 to chapter 13.

        If you wish to keep your property, you might wish to convert. Chapter 7 allows you to keep your home if you continue making regular payments on your mortgage. Any failure to do so might result in foreclosure. Any non-exempt property you have needs to be surrendered in this bankruptcy chapter. But in the case of chapter 13, you don’t have to give up any property while making mortgage payments through the repayment plan. Thus if you wish to protect all your property, chapter 13 is a better option.

        Conversion of Chapter 7 bankruptcy to chapter 13 can be done once without court approval provided that it is done in good faith. If you follow the rules and do not attempt to hide property then you won’t face any problems. Since there are no court fees involved while converting from chapter 7 to chapter 13, you are not required to pay any conversion fees. Since chapter 13 involves a repayment plan, if you do not have the income to support the repayment, your conversion won’t be permitted. In this situation, you might need to file a motion in the court.

        Converting a chapter 13 bankruptcy to Chapter 7

        All your disposable income is used to repay your creditors in this bankruptcy chapter. Debts like a child and spousal support need to be paid in full. All of this might take a toll on you. A change in circumstances like losing a job, prolonged illness, etc. can make your repayment plan slightly difficult to manage. Converting to chapter 7 might be a good option in this case.

        If you haven’t received a chapter 7 discharge within the past 8 years, you can seek to convert your bankruptcy from chapter 13 to chapter 7. If you have, bad luck! You are stuck with chapter 13. Since chapter 7 requires you qualifying the means test, you can convert your bankruptcy chapter only if you earn less than the state’s mean income. If nothing works for you, you remain stuck with chapter 13. The only recourse available is to ask for a dismissal of your case, which has serious consequences like losing the automatic stay benefit. What’s more is that if you ever file for bankruptcy again, the automatic stay benefit might not be readily available for you. You will be handling your creditors on your own without the help of any bankruptcy court. Conversion from chapter 13 to chapter 7 has a conversion fees of $25 which has to be deposited when you file for a motion in the court.

        Should I convert my bankruptcy chapter?

        Sometimes the court might force you to convert your bankruptcy chapter from 13 to 7. This can happen if you don’t get your payment plan approved or miss making payments on it. Any unnecessary delay in the case which can harm your creditors can also be the reason for the conversion of your bankruptcy chapter. If a discrepancy is observed in your means test and it is found that you don’t qualify for chapter 7 bankruptcy, then your bankruptcy chapter will be converted.

        Since the conversion of the chapter is a complicated process involving a number of motions, forms, and schedules, it is important if the process is handled by competent bankruptcy attorneys. Discuss with your attorney whether conversion of bankruptcy chapter might be beneficial for you. You can call 888-297-6203 for a consult regarding your bankruptcy 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.

        • Can Some Part of Mortgage Debt be discharged during Bankruptcy?

          Can Some Part of Mortgage Debt be discharged during Bankruptcy?

          Bankruptcy is a sure shot way to get rid of huge financial debts. With a bankruptcy discharge, you can wipe off most unsecured debts and get a chance to have a clean financial slate to begin a fresh life. However, secured debts like mortgage and car loans are not discharged during bankruptcy; though, bankruptcy certainly helps you with mortgage debts confirm bankruptcy lawyers of Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/.

          Secured debts – Mortgages & Foreclosure

          A mortgage loan is a loan taken while purchasing your house. Since it is linked to a specific property, it is a secured loan. The bank has a “lien” or legal right to the property, because of the mortgage loan. If you fail to make payments, the bank can possess your home in lieu of the debt. This is known as foreclosure. When a bank forecloses on any property, it sells it at an auction to recover the dues. In case the home sells for more than what you owe, you are eligible for the extra amount. If it sells for less than what you owe, the difference (between the amount you owe and the selling price of the property) is known as “deficiency.” You might have to pay the deficiency depending on the type of foreclosure.

          There are two different kinds of foreclosure proceedings in California: judicial and non-judicial. While a judicial proceeding takes place through the court system, the non-judicial one does not require the creditor a court order to foreclose. In case the property is sold through a non-judicial foreclosure, the lender has no right to collect the deficiency. Thus if the property is sold at a price which is lesser than what you owe, you do not owe the creditor the difference in amounts. However, since judicial foreclosures take place through the legal system, the lender can sue you for any deficiency. Most of the foreclosures taking place in California are non-judicial.

          Sometimes, people take out a 2nd or 3rd mortgage loan on their property. In such cases, these lenders have smaller liens on the home, i.e. they have a claim after the original lender’s dues are paid. Thus, if a lender forecloses and sells the home for an amount larger than the primary mortgage, the difference is used to clear the 2nd mortgage and then the 3rd till all the loans are cleared. Once your home is sold through foreclosure all subsequent lenders apart from the primary creditor lose their claim of ownership on the home. The debt, however, remains; for which they can sue you for repayment.

          What happens to mortgages during bankruptcy?

          In case you are finding it difficult to make your mortgage payments, bankruptcy is an options to delay foreclosure. Different chapters of bankruptcy have a different way to deal with mortgages. To know more about them you can call 888-297-6203 and consult expert bankruptcy attorneys.

          • Chapter 7 bankruptcy and mortgages

          When you file for bankruptcy under Chapter 7, your assets are sorted into exempted and non-exempted types. The non-exempt property is surrendered to the court, sold and the money recovered is used to pay the unsecured creditors. There are two sets of exemption in the state of California, therefore most property of filers is completely protected. Since you are not required to surrender much property after exemption, any remaining unsecured debts are discharged.

          Unlike the unsecured debts, your secured debts like mortgage are treated differently. You have to choose if you wish to keep your house or not. In case you don’t want to keep the home or find it difficult to make mortgage payments, you can surrender it during bankruptcy. When you surrender your home, the bank takes charge and sells it in a manner similar to a foreclosure. With the bankruptcy filing, you have the advantage to let go of personal liability in the debt, i.e. you don’t need to pay deficiency if your home sells for less than the debt.
          In case you have any junior mortgages on your home, filing for bankruptcy and its subsequent discharge wipes off any personal liability for them too. Thus you are safe from any collector suing you for personal liability on secondary or tertiary mortgages. However, the lenders still have a lien on your home and can foreclose on it; but to do so, they need to pay off the 1st mortgage and other fees. Thus, for junior lenders, foreclosure is not a particularly lucrative option unless the home is worth more than the loan.

          • Chapter 13 bankruptcy and mortgages

          A detailed report of your income and expenses is submitted to the court in Chapter 13 bankruptcy. The court and your bankruptcy attorney device a repayment plan based on your earnings, expenditure and the value of your non-exempt assets. As per the repayment plan, payments are made for 3-5 years, after which the unsecured debts which remain are discharged. The repayment plan first caters to the secured debts like mortgage and car loans and the remaining amount goes towards clearing unsecured debts like medical bills, credit cards, etc.
          If you wish to keep your home in a Chapter 13 bankruptcy, you need to show that you have means to make regular payments accordingly. If you can do so, the bank allows you to keep your home. At the end of the bankruptcy process, any personal liability for a loan is discharged. Though the bank might be able to foreclose, it can’t sue you for any deficiency.
          In case you have any secondary mortgages, you might be eligible for “lien stripping.” In case your home is “underwater”, i.e. worth less than what you owe, the junior liens may be stripped away. When this takes place, the second mortgage holder loses any claim on your home. This way the secondary mortgage debt becomes a normal unsecured debt which can be discharged like other unsecured debts after bankruptcy. If, however, your home is not underwater, you will be required to make payments on secondary mortgages if you wish to avoid foreclosure.

          Can some mortgage debt be wiped off?

          It is important to note that the primary mortgage is not discharged during bankruptcy. The lender has a lien on the home and can foreclose it. However, with bankruptcy, the lender cannot sue you for any deficiencies. In chapter 13, the only mortgage debt which is wiped off is a junior lien in case of an underwater home. If you qualify and file for Chapter 7 bankruptcy, an infinite number of deficiencies can be wiped out. Unfortunately, Chapter 13 has a limit capped; your secured debts must be less than $1,149,525 and unsecured debts less than $383,175 to qualify for Chapter 13 bankruptcy. In case the figures fit your case, Chapter 13 can help get rid of an indefinite amount of deficiency as well as junior liens.
          Mortgages are slightly different and complicated to deal with in a bankruptcy case. In case you are having difficulty managing your finances and also have a mortgage to consider, it is important that you consult a bankruptcy attorney for your case evaluation. Get a better idea of how to deal with mortgages when you file 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.

          • Can Gambling Debt be addressed by Bankruptcy in California?

            Can Gambling Debt be addressed by Bankruptcy in California?

            If you like gambling, Los Angeles offers you a large number of casinos to choose from. However, gambling can lead to the accumulation of a huge amount of debts. People often choose to get rid of their debts via bankruptcy. During bankruptcy, debts are discharged which effectively makes creditors go away as they cannot harass you to get the payment back. While bankruptcy is an excellent way to get rid of debts, it is important to know that it gets reflected on your credit report. Your bankruptcy appears for up to 10 years on your credit report which may make things a bit difficult if you wish to get new credit.

            The duration of bankruptcy and its discharge depends on the type of bankruptcy filed. While in the case of Chapter 7, debtors surrender all your non-exempt property which is sold off to pay creditors and you get an automatic discharge of any remaining unsecured debts. Under California’s set of exception for bankruptcy, almost all property can be exempted and debtors do not have to give up anything. In the case of Chapter 13, a 3-5 year repayment plan is devised keeping in mind the assets, income, and debts of the filer. After the end of the repayment plan, any unsecured debt (medical bills, personal loan, credit card bills, utility bills, etc.) which remains is discharged. Debts like taxes, student loan debt, and fines owed to the government, child support and alimony are not discharged in bankruptcy.

            Getting gambling debt discharged

            According to Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/, gambling debts are tricky to get rid of when filing for bankruptcy. Though gambling debts meet the criteria of dischargeable debts, the inclusion of them in your bankruptcy raises some valid questions. Both trustee and creditor question the intention of the debtor to pay off gambling debts. It is quite possible that players who incur heavy gambling debt often had plans to file for bankruptcy in order to avoid making repayment.

            To ensure that gambling debts are discharged, you need to make sure that the debt was not made under the false pretense of payment. You need to prove that you intended to repay all debts including gambling debts and that bankruptcy is not your way of conning the system. People often file for bankruptcy in order to avoid paying creditors. This is known as filing “in bad faith”. If you are found to be guilty of this practice, your discharge is denied. Since it is extremely difficult to prove the intentions of bankruptcy filer, other factors are used to assess the intentions of the debtor vis-à-vis the gambling debt.

            Prove good faith to get gambling debts discharged in bankruptcy

            Amongst the various factors considered to test the good faith of a debtor is the use of a marker. A marker is the credit line from casino used by people to fund their gambling. The amount of marker given to a gambler depends on certain factors like their track record at the casino, money in their bank accounts, how the marker is being used, etc. Signing the marker is equivalent to any legally enforceable debt. In case you sign the marker claiming you have funds to repay the debt but later declare bankruptcy, then the said debt is considered to be borrowed in bad faith. If the court sees that the debt is made in bad faith then it is not discharged. However, if there were funds in your account to repay the marker but due to other problems like unexpected heavy medical bills, you were left with no option except bankruptcy, then it is a case of good faith.

            Nothing shows your intent as repent. If you seek professional counseling, have stopped gambling and had even made a few payments to pay off the debt, then such actions show that you were making efforts to pay off the debt. This represents that the debt was made in good faith.

            Another factor which the court examines is the timing of the debt. If the duration between incurring the debt and filing of bankruptcy is long, there are fewer chances of the debt being made in bad faith. A debt incurred a couple of weeks before filing for bankruptcy is much more suspicious than that taken 6 months or prior. If you had made some payments in the allotted timeframe between acquiring the debt and filing for bankruptcy, it shows your intent. The time frame for paying back markers depends on the amount owed. Marker of less than $1,000 needs to be paid within 7 days; those between $1,001 and $5,000 in 14 days. If the marker is above $5,000, you get 45 days to repay the money. If you fail to make a payment on the debt, then your intentions seem dubious.

            Despite the fact that creditors view gambling debt suspiciously, judges are more lenient towards them, probably because gambling is a legal activity and therefore debts so acquired should be treated in a similar fashion. If the debt was made in good faith then you can easily get them discharged when you file for bankruptcy in California. However, you need the help of an expert bankruptcy attorney to prove your case. In case you haven’t hired one, call 888-297-6203 to consult with some of the best legal minds.


              *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.

            • Can Bankruptcy Assist California Seniors?

              Can Bankruptcy Assist California Seniors?

              Anyone can find themselves in debt considering that it is almost impossible to survive without credit cards. Accumulated bills including those of emergency medical charges, student loan, car loan, mortgage, etc. can pile up with time, making it almost impossible to survive without declaring bankruptcy. Senior citizens these days have a longer life expectancy which adds up to financial woes. Getting a job at their age is nearly impossible and medical bills adding to the already shooting debt leads them in a never-ending cycle of debt. This often causes them to be harassed by creditors and live with a worry of leaving their kids and grandkids a debt-laden inheritance. It is important to take legal assistance if you are struggling with debt say Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/.

              Debt relief for seniors

              Filing for bankruptcy is the best option available for seniors who are struggling with debts. Individual consumers can choose to file under Chapter 7 or Chapter 13 depending on your income and assets. Under Chapter 7 bankruptcy, your assets are separated into an exempt and non-exempt category, where the non-exempt property is sold off to pay creditors. According to California’s bankruptcy exemptions, nearly all assets of the debtor are exempted, thereby protected. Thus, at the end of Chapter 7 bankruptcy your unsecured debts like credit card bills, medical bills, etc. are discharged. It is important to understand that people with exceptionally low income only can manage to qualify for Chapter 7 bankruptcy. For those, who are unable to pass the “means test”, Chapter 13 is the next option available.

              As per Chapter 13 bankruptcy, a repayment plan is devised depending on your income and assets. The debtor makes payment for a 3-5 year period after which any remaining debt is discharged. Filing for bankruptcy provides the debtor with the benefit of the automatic stay which prevents any collection action by creditors. Majority of unsecured debts including personal loan, bills (medical and credit card), etc. is discharged after bankruptcy. However, some debts like a student loan, child and spousal support and any taxes assimilated in the three years prior to a bankruptcy filing cannot be discharged.

              Chapter 7 bankruptcy

              If you are able to pass the “means test” and qualify for Chapter 7 bankruptcy, you are able to protect almost all your assets including retirement account. This is so because federal law keeps pensions, 401(k)s, social security benefits and some profit sharing plan safe from creditors during bankruptcy. All of these assets, to the tune of 41.245 million are safe from creditors.

              Another major concern of debtors is for their home. The California homestead exemption ensures that your property is protected. California offers 2 sets of exemptions during bankruptcy. You can consult your bankruptcy lawyer to find out which of the two exemption works best for your property. These exceptions cover your equity in the home. If your equity is less than the exemption, your home is safe from creditors. Single, non-disabled senior citizen of 65 years can have property exemption up to $75,000 under System 1 bankruptcy exemptions of California. Seniors above the age of 65 can protect equity up to $175,000. Under California System 2 bankruptcy exemptions, you can protect up to $25,575 of your equity in the home. This exemption can be used for residential property and can cover assets like apartment, boat, condo, home or a stock cooperative.

              Seniors who are able to successfully file for Chapter 7 bankruptcy can save all their important assets while getting a discharge of their unsecured debts. This bankruptcy chapter is ideal also for those who don’t have any assets. At the end of your bankruptcy and your debts are discharged and you either have to pay a small amount or none at all to your creditors.

              Chapter 13 bankruptcy

              People who fail to qualify for Chapter 7 bankruptcy have the option of filing under Chapter 13. In this case, a repayment plan is devised according to your income. Unlike Chapter 7 you are not required to surrender any assets in this case. Chapter 13 bankruptcy is preferred over Chapter 7 if you wish to protect all your assets which are not covered under exemptions. After the end of the repayment plan, all remaining unsecured debts are discharged.

              Why do people fear bankruptcy?

              There is a stigma attached to bankruptcy which makes people avoid it despite it being the best legal option available to deal with insurmountable debts. As debt accumulation does not depend on the individual’s age, many senior citizens also find themselves grappling alone with debts. Since they are nervous about the consequences, they often delay filing for bankruptcy. If you require professional assistance regarding unmanageable debts, call 888-297-6203 to speak with expert bankruptcy lawyers.

              It has been observed that people over 65 years have nearly 50% more debt than people of another age group. Misconceptions like you will be dragged to bankruptcy court if you file for bankruptcy also add fuel to fire. Bankruptcy filing involves just a minor hearing which takes place between bankruptcy trustee, debtor, and their attorney; creditors may or may not attend the hearing. In fact, the 341 hearing is less stressful than constantly handling or dodging creditor’s harassing calls. It is important to weigh all your options before filing for bankruptcy. Consulting with an expert bankruptcy attorney opens all options before you to tackle the huge amount of debt.

            • Are Both Spouses Supposed to File For Bankruptcy Under California Law?

              Are Both Spouses Supposed to File For Bankruptcy Under California Law?

               The law is clear, a spouse’s debts are not reflected on another’s credit. The federal law, as well as basic legal principles, dictate that separate credit files are maintained for both the spouses so that debts of one are not reflected on another’s credit file. It is therefore not mandatory for both husband and wife to file for bankruptcy. However, there are some exceptions to the rule, like when both spouses are co-signers on a personal loan, car loan or mortgage on the house, or they share credit card(s). In case, the California means test affects your bankruptcy filing and if you have filed for divorce prior to or after bankruptcy, then also you might be affected by each other’s bankruptcy filing.

              Liability of debt in bankruptcy between co-signers

              More often than not, people think that co-signing a debt means that the liability of a co-signer is only when the original borrower is not available or does not fulfill the commitment. Many times spouses co-sign the mortgage of the house or opt for a car or personal loan as co-signers. According to Los Angeles based bankruptcy law firm, https://bankruptcy.staging.recoverylawgroup.com/ signing on the dotted line means that you are equally liable for the debt, i.e. you are joint debtors.

              Both the co-signers are equally and fully responsible for the entire balance of the debt and can be pursued by the lender without any prejudice. This principle is applicable for spouses too. When a spouse co-signs any debt with the other, the co-signer is fully responsible for the debt. In case, you co-signed for a house or car loan for your spouse and your spouse files for bankruptcy, then you are fully liable for the balance. This holds true for all kinds of debts including student loan debts which are generally not discharged during bankruptcy!

              Credit card debts are slightly tricky, especially if one spouse gets a second credit card for the other. Since the non-filing spouse didn’t sign for the card or anyhow made themselves liable for the debt, they should not be held liable for the debts. In such a case, the non-filing spouse should check their credit report after a few months of bankruptcy case getting over. In case the debt of the second credit card is reflected in their credit report, they should contact, both the bank and the credit agency to remove the said debt from their credit report since they were neither liable for the debt, nor did they file for bankruptcy.

              Married couples and Chapter 7 Means test

              Chapter 7 or liquidation bankruptcy is preferred by people as you often get all your unsecured debts discharged without losing selling off many assets. However, to qualify for it you have to pass the Means Test. If the debtor has means to pay off debt, they cannot qualify for Chapter 7 bankruptcy and have to opt for Chapter 13 bankruptcy. This chapter of bankruptcy involves repayment of debts via a court-approved repayment plan over a period of 3-5 years.

              The means test involves assessing whether the income of a debtor is above the mean income of the state. When the individual is married and living with the spouse the median family income rises. With each addition of family member, the median family income continues rising. In case of a married couple living together, their incomes are added to see if they meet the means test. It may be possible that individually a person’s income is not enough for repayment however, with the combined incomes of both, repayment plan might be necessary.

              What happens in case of divorce?

              Divorce offers a different scenario. Unless a provision has been made in the divorce settlement regarding any debt co-signed by the spouses, neither spouse is relieved from paying off the debt if either file for bankruptcy. In case the spouses are divorced and if the bankruptcy filing spouse was ordered to pay for a credit card, they will have to clear the debt irrespective of the bankruptcy filing.

              In case your spouse is filing for bankruptcy, it is important to know how much of the debts will be discharged and how many need to be paid off amongst the joint liabilities. In case the debts are huge and only one card with joint liability, filing for bankruptcy and paying the debt might well be worth it. In the case of Chapter 13, regular payments are made till the debt is cleared off without having any effect on the credit score of the non-filing spouse. There is no doubt that bankruptcy is complex and it would be better if you keep debts separated from your spouse, with the exception of mortgage of your jointly owned home.

              In case you are thinking of filing for bankruptcy, contact expert bankruptcy lawyers at (888-297-6203) to get advice on how to protect your assets as well as those of your spouse.


                *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.

              • Can Damage Award Obtained from Lawsuit be at Risk in Bankruptcy?

                Can Damage Award Obtained from Lawsuit be at Risk in Bankruptcy?

                Lawsuits are quite confusing. In case you have filed one for injustice against your employer or any other damage you sustained due to malpractice or any misfortune happening, you probably end up winning money as part of damages. What happens to this cash and your lawsuit with the potential award if you end up filing for bankruptcy? According to Dallas based bankruptcy law firm Recovery Law Group, it is important that when you file for bankruptcy, you list all your assets and debts. Any claim you have made (which may or may not have been converted into a cash award should also be listed as an asset). This is so because it has the potential to become a source of money which has to be included as part of your bankruptcy asset when you file.

                Hiding your claim or failing to list any of them can be considered to be an act of fraud, which is not looked upon kindly by the bankruptcy court. Bankruptcy trustees generally ask about such claims. If you don’t acknowledge them you will be later held for perjury. In case you manage to withhold the information you could face dismissal of your case. “Collateral estoppel” stops you from bringing a claim in one court when you have denied its existence in another. Thus even if you get through bankruptcy without making anyone wiser about your claims and rewards, you will be unable to collect on them. Since insurance companies who defend as well as pay such claims in lawsuits often check the bankruptcy register, your lies will be caught if you haven’t mentioned the original lawsuit in your bankruptcy papers. Your case for damages can easily be dismissed by them on this basis.

                Keeping your damage award safe

                The procedure to keep it safe is simple. You need to include the claim in your bankruptcy papers to have access to it. The amount of money you can keep depends on which chapter of bankruptcy you are filing. In the case of chapter 7 bankruptcy, certain exemptions are available to protect the rights of the debtor. These include car, home, clothing, household goods, etc. The exemptions vary from state to state as well as the option to choose from state exemptions or federal exemptions. Some states like California offer two sets of exemptions and bankruptcy filer can choose either of the two. Individuals cannot opt for federal exemptions in California. These exemptions help protect any damages you win as a result of a lawsuit. Non-exempt property is used to pay off creditors.

                Under system 1 of chapter 7 bankruptcy in California, any damages won in a personal injury case are fully exempted. But, if a creditor obtained a judgment against you prior to your bankruptcy filing can stake claim to some portion of the award. Under system 2, the damage award for personal injury is exempt up to $26,800 as per Section 703.140(b)(11)(D). Workers’ compensation claims are completely exempt under state (system 1) as well as federal law.

                In the case of chapter 13 bankruptcy, your damages may or may not be safe. Since you are not surrendering your assets in this type of bankruptcy but using your disposable income and assets to pay off creditors over a 3-5 years repayment plan, your damage awards may or may not constitute a part of your income (depending on the timing of payment). In case you are expecting a damage award, while filing for bankruptcy, consult with expert bankruptcy attorneys regarding your options at 888-297-6203. An experienced local bankruptcy attorney can help you find out the best way of protecting your damage award. A significant margin of the amount can be retained if you get the timing of your bankruptcy right. Do not hesitate to consult an expert to find the best possible solution.


                  *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.

                • Are You Filing for Bankruptcy? What Happens to Your Mortgage?

                  Are You Filing for Bankruptcy? What Happens to Your Mortgage?

                  Bankruptcy court acts as a shield between you and your creditors to provide you breathing space and a fresh financial start. Though the law is designed to provide respite to you, it does not do so at the cost of your creditors. You need to pay for your secured loans like mortgages. One of the best aspects of bankruptcy filing is the automatic stay which prohibits all sorts of collection actions against you. Thanks to it, your home and car cannot be foreclosed or repossessed. In case repossession is done, they have to return it. Moreover, any liens cannot be placed on your home, no wage garnishments, etc. can be done.

                  For mortgages, you need to ensure that you file for bankruptcy before the home is sold. The sale can be stopped, even if an auction is scheduled if you timely file for bankruptcy. Despite the power automatic stay has, Dallas based bankruptcy law firm Recovery Law Group enlighten, that creditors can have the stay lifted if you default on making mortgage payments. In case the creditors get their say in court, the bank can continue with foreclosure proceedings.

                  While filing for bankruptcy you need to be sure whether you wish to keep your home or let it go. In case you decide on leaving your home, you can stop making mortgage payments. In this case, the automatic stay will be lifted and banks can sell your home. In case your home was foreclosed without bankruptcy and sold for less than what you owe, you might have to pay the difference (also known as the deficiency). Opting for bankruptcy saves you from paying the deficiency. If you wish to keep your home, you need to choose the bankruptcy chapter carefully (Chapter 7 or Chapter 13).

                  Mortgages in Chapter 7

                  Your assets are classified into an exempt and non-exempt category. The non-exempt assets are surrendered which are subsequently sold to pay off the creditors. Any unsecured debts which remain after the process are discharged. Different states have different sets of exemption. In California, under Set 1 exemption, you can protect home equity between $75,000 and $175,000, while in Set 2 exemption, home equity up to $26,800 can be exempted. The equity is calculated as the amount borrowed for the purchase minus what you owe for the property. In case your home equity is not covered under the exemptions, you will find it difficult to keep it. If the equity is covered under exemptions, you might be able to keep your home as long as you make regular payments for it. You are also required to “reaffirm” your mortgage debt. Once you reaffirm the debt, it cannot be discharged even after bankruptcy.

                  Mortgages in Chapter 13

                  This chapter of bankruptcy involves a repayment plan which lasts for 3-5 years. Any unsecured debts which remain are discharged after the end of that period. If you wish to keep your home, you can include your mortgage payments in your repayment plan. Similar to chapter 7 bankruptcy, you might need to reaffirm your debts in this case too.

                  Other mortgages

                  In case your financial situation was worse and you had to take other mortgages on your home, you won’t be able to discharge second or third mortgages on your home or any home equity loan in a Chapter 7 bankruptcy if you want to keep your home. In the case of chapter 13, if your home is underwater, you might get a second mortgage or home equity line of credit discharged. The circumstances of discharge of the second mortgage depend on your circumstances and the judge.

                  While struggling with debt, it is important for people to make a conscious decision whether they wish to keep their home and if they do so, can they afford to make payments for it? In case of bankruptcy, any liability for deficiency in case of foreclosure is stricken, especially if your home is underwater. Though the prospect of losing your home is overwhelming, you need to make a decision with your income and assets in mind. An adept bankruptcy lawyer can help you make aware of the various options available when you file for bankruptcy. In case you wish to have a consultation regarding your debts, you can contact 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.

                  • Know About Transferring Assets Prior to the Bankruptcy Filing in California

                    Know About Transferring Assets Prior to the Bankruptcy Filing in California

                    The bankruptcy process is devised to provide people going through a bad financial situation a fresh start. Simultaneously care is also taken that the creditors are not given a raw deal. The court wishes to be fair in its dealings and therefore does not look kindly to any kind of transfers made to any family member or friend, especially of valuable property. Such transfers particularly prior to bankruptcy filing are considered to be fraudulent in nature.

                    When can an asset transfer be treated as fraudulent?

                    While filing for bankruptcy, you have to keep certain things in mind; transferring assets is one of them. The court does not look kindly to any kind of transfer of property (like jewelry, car, home, etc.) being made within two years prior to a bankruptcy filing. In case you have transferred an heirloom piece of jewelry to your child and due to some misfortunate turn of events you had to file for bankruptcy (chapter 7) the court will observe this transfer of jewelry as an act of hiding asset. According to Los Angeles based law firm Recovery Law Group U.S. Bankruptcy Code 11 section 548 views such transfers as fraudulent if the reasonable value of the asset is not provided to the debtor on its transfer. As per California state law, there exists an additional 4 year look back period (not longer than 7 years) under its Uniform Fraudulent Transfers Act (UFTA).

                    Though you never had any intention of deceiving your creditors, your actions can be viewed as “constructive fraud.” The bankruptcy trustee can sue the beneficiary of the asset to either get the property back (unwinding the transfer). The ones part of your bankruptcy estate and is used to pay back your creditors. It is therefore quite possible that any transfer you made prior to unfortunately hitting a rough financial patch can be viewed suspiciously by the court. The situation can be worse if you made any such transfer within one year prior to your bankruptcy filing. As per U.S. Bankruptcy Court  11 U.S.C. § 727 you could even face denial of bankruptcy discharge!

                    Getting your affairs in order 

                    If you wish to file for bankruptcy in California, you need to pay attention to any transfer of asset made within the last four years. In case you had gifted your kids or friends or relatives any jewelry, ensure that you get it back before filing your bankruptcy papers. If there exists a contract or a document trail for any transfer of assets get it annulled or get another contract drawn to have the assets transferred back to your name. Having any and all assets back in your name is essential if you want to be in the good grace of the bankruptcy court. It is also important to note that if you don’t have the asset, a sum of money equivalent to the value of the asset is transferred in your account (or you can account for the money) since selling your assets at a fair value price is allowed.

                    In case you are unable to get either the property back in your name or get a fair market value price for the same, the options available for you are:

                    1) postpone the bankruptcy filing till the 4-year look back period has expired;

                    2) opt for chapter 13 bankruptcy or wage earner’s bankruptcy

                    Deciding which chapter to file bankruptcy under is an important issue and requires the expert assistance of bankruptcy attorneys. It is very important, to be honest and forthright in your dealings with your attorney so that they can guide you through the process. Make them aware of any transfer of assets that you have indulged in, no matter how insignificant they may seem; as hiding such facts can ultimately be the difference between getting a bankruptcy discharge or getting the case dismissed. In case you still haven’t considered a bankruptcy lawyer, call 888-297-6203 to seek a free consultation with expert lawyers about 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.