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Category: Bankruptcy

  • Can Unpaid Creditors Follow Your Children for Dues in Future?

    Can Unpaid Creditors Follow Your Children for Dues in Future?

    People often have to take debts to fulfill their commitment towards their family, especially in case of bad times. However, many times, for elderly people, it is a bit difficult to pay their debts, especially after 65 years of age. There is some confusion as to who will be paying for the debts; as most of the times, income and assets are protected by the law. However, there are chances that the creditors might wait for some time so that they can recover the dues from the children of such elder debtors’. Often many people lack clarity of doubt when it comes to handling or mishandling of finances. This often results in them facing a situation like bankruptcy. In case you are facing a similar situation and are looking for lawyers to understand how the process works, contact at (888-297-6203)for Dallas based lawyers Recovery Law Group.

    Why can’t creditors collect dues from elder debtors?

    Since creditors are prohibited from seizing payments from elder debtors, even for legitimate assets and debts, they often wait for such clients to pass away before they make collection attempts with their survivors, especially children. The senior citizens are in most cases protected by pension laws, social security act or exemptions laws, making it difficult for creditors to pursue any action.

    What happens when an elder debtor passes away?

    In case an elder debtor passes away, leaving behind an unpaid debt, his/her heirs are not personally responsible for the debts. However, before any of the heirs receives anything, the debts need to be completely paid off. Thus the estate cannot be touched before paying off the debts. In case a living trust had been formed by the debtor, the succeeding trustee would be required to pay off the debts first before any other thing.

    In case, the debtor’s property is dispersed without taking care of the decedent’s probate or debts, the property will be responsible for the debts for a specific amount of time, which varies from one state to another. In case an individual leaves behind debt after their death, the heirs cannot get their share of the estate. More often than not, creditors approach to collect the assets to get their dues.

    Can a debtor’s children opt for bankruptcy to protect themselves from creditors?

    In case the elderly debtor was suffering from serious financial issues and had accumulated huge debts before passing away, bankruptcy can be a good idea to protect his/her children. Many assets are protected from creditors, thanks to bankruptcy. Thus many seniors find it useful to file for bankruptcy. Moreover, few exemptions which protect certain assets are available during the bankruptcy process. Thus, survivors of an elderly debtor can be forced to cough up dues by creditors if they don’t opt for a bankruptcy filing.

    In case, you are facing severe financial issues and are worried how your debts are going to affect your children, it is important to consult bankruptcy lawyers, who will help determine which bankruptcy chapter will help you the most.


      *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 tax debts be discharged during bankruptcy?

      Can tax debts be discharged during bankruptcy?

      Accumulation of unpaid dues can lead to people being burdened by debts. Bankruptcy is an excellent way to get many debts discharged. However, being able to get all debts discharged is extremely tough, though not impossible. Unsecured debts are often discharged after bankruptcy however debts such as education loan, government taxes, and child and spousal support, etc. cannot be discharged during bankruptcy.

      However, Los Angeles bankruptcy lawyers Recovery Law Group say that even such debts can be discharged depending on the type of bankruptcy.

      For individuals filing chapter 13 bankruptcy, tax debts are paid off as per the repayment plan; while in chapter 7 bankruptcy, some tax debts are discharged depending on the nature of tax and the duration of the debt incurred. To get federal tax debt discharged under chapter 7, you need to fulfill certain requirements.

      These include:

      • The debt must be more than 3 years old
      • The debt must be income tax related and not payroll or fraud penalties
      • Prior to bankruptcy filing, the taxpayer must have filed tax returns properly for more than 2 years
      • It is important that the taxpayer has made no evasion of taxes or any fraud related to tax returns previously
      • Tax assessment by IRS must be performed a minimum of 240 days prior to a bankruptcy filing

      In case the aforementioned taxes are discharged, any penalties assessed on them are also liable to be dischargeable. Post discharging on debts, IRS cannot indulge in wage garnishment or any other action for collection of the debts. In case you need any assistance regarding queries about personal bankruptcy, consult expert bankruptcy attorneys at 888-297-6023 to put a stay on repossession and foreclosure as well as getting rid of your debts.


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

        *Do you own a home?

        Are you currently working?

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

      • Can Filing for Bankruptcy Help Protect Your California Contractor License

        Can Filing for Bankruptcy Help Protect Your California Contractor License

        Can Filing for Bankruptcy Help Protect Your California Contractor License

        A lawsuit and a judgment against you can result in the suspension of your contractor’s license in the state of California. Bankruptcy is a great way to get over financial issues and get a fresh start for many people. It is also one of the best ways to prevent license suspension and discharge the judgment debt. As per Los Angeles bankruptcy lawyers, Recovery Law Group, California and Federal Bankruptcy statutes state that Contractors State License Board (CSLB) cannot suspend a contractor’s license for non-payment for a judgment when that particular debt has been discharged in bankruptcy.

        Is it essential to wait for the discharge of a debt in bankruptcy?

        According to experts, you are not required to wait for debt discharge. There are two benefits associated with bankruptcy filing with respect to the license:

        • Your license suspension is protected post-discharge of the concerned debt after bankruptcy. However, it is important to note that during Chapter 7 bankruptcy, debts are not discharged until 3-4 months of filing and in case of Chapter 13, the time frame is 3-5 years after the filing of papers.
        • The benefit of an automatic stay is one of the biggest advantages of filing for bankruptcy. It protects you from all types of collections attempts including repossession and foreclosure.

        Can automatic stay help protect a contractor license?

        One of the biggest advantages of filing for bankruptcy is the provision for the automatic stay which legally stops the creditors from taking any collection actions. They simply cannot start or continue with “a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before” post filing of the bankruptcy case as per Section 362(a)(1) of the bankruptcy code.

        Another advantage is that creditors cannot file a lawsuit against you. In case one is already filed, but has not yet resulted in judgment; the automatic stay can put a hold to the creditor getting a judgment. Without the judgment, the CSLB cannot begin the procedure to suspend the contractor’s license.

        Options available if creditor’s judgment is entered before you file for bankruptcy

        In the situation where your license is not yet suspended (though a judgment has been awarded), filing for bankruptcy initiates the automatic stay which helps stop the execution of the judgment. Thus, per Section 362(a)(2) of Bankruptcy Code, a creditor cannot enforce “against the debtor or against the property of the estate, . . . a judgment obtained before” the filing of your bankruptcy case.

        So, despite having a judgment, once the creditor receives notification of your bankruptcy filing, they cannot inform the CSLB about the recent judgment obtained, if the sole purpose of relaying the information is to get payment for the debts.

        Can the automatic stay be applied on CSLB too?

        Even the CSLB has to put its proceedings regarding the suspension of contractor license on hold to avoid any violation of the automatic stay. However, the guidelines about these are not as clear for the creditors, though many relevant appellate court rulings state that automatic stay applies to CSLB under these conditions:

        1. The automatic stay enforces a confirmation against any collection actions. As per the Ninth Circuit Court of Appeals (the highest appellate court in California) ruling, “consistent with the plain, and unambiguous meaning of the statute and consonant with Congressional intent, we hold that the automatic stay imposes an affirmative duty to discontinue post-petition collection actions.” Eskanos& Adler, PC v. Leetien, 309 F. 3d 1210, 1215 (9th Cir. 2002). As per this ruling, both the creditor and their law firm were found guilty of a willful violation of the automatic stay as they did not dismiss a pending lawsuit against the debtor despite the latter filing for a Chapter 7 bankruptcy case. They had to pay damages to the debtor for the same.
        2. California CSLB was found guilty of violating the automatic stay since they didn’t restore the license of a contractor, which they had previously suspended, before debtor’s Chapter 13 filing. Despite the CSLB reinstating the license 24 days post-bankruptcy filing, the appellate court found it a violation of the automatic stay. The court found CSLB’s refusal to restore the debtor’s suspended license despite being aware of the Chapter 13 petition of the latter, a willful action for collecting dues.

        As per the automatic stay provision § 362(a)(1), “the commencement or continuation . . . of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the [bankruptcy] case” falls under the automatic stay. Additionally, the acknowledgment was made that suspension of contractor’s license, prior to the bankruptcy petition filing, was due to the non-payment of employment taxes. The Bankruptcy Court also approves the prompt reinstatement of the license after the taxes owed by the debtor are paid. In case the CSLB continued its action of recovering the claim by denying the reinstatement of the debtor’s license, it will be found to be in violation of the automatic stay. (California Contractors State License Board v. Bertuccio)

        The CSLB failing to restore a prior suspended license is in violation of the automatic stay; if they suspend a license after the bankruptcy filing, they will worsen their case. The automatic stay has to be respected by California CSLB. Any collection procedure going on against a debtor including license suspension, need to stop immediately when a notification of bankruptcy filing of the contractor is provided to them, especially if the said actions are due to any creditor’s judgment.

        Exceptions to the rule

        There are some exceptions where CSLB can get relief from the automatic stay and suspend any contractor’s license. After a bankruptcy case is filed, a “party in interest” can file a motion in bankruptcy court to get “relief from stay” and pursue the debtor for dues. For this to take place, the creditor (including CSLB) should show an appropriate cause which justifies the “terminating, annulling, modifying, or conditioning [the automatic] stay” as per Section 362(d) of Bankruptcy Code.

        There are as many as 13 major reasons when CSLB can suspend a contractor’s license, including two civil judgment cases. The appropriate causes which justify CSLB’s motion for “relief from stay” motion include –

        • Legal grounds apart from non-payment of any debts (business or license related) or a judgment for license suspension.
        • Issues like workers’ compensation insurance, bonding, and changes made in company people.
        • Many potential reasons for the suspension of the stay are included in the list of Contractor’s State License Law (chapter 9 of Division 3 of the California Business and Professions Code). There are 15 articles here with many statutory sections telling ways, how California state license law is being violated.

        Role of the automatic stay in license suspension

        The automatic stay protection provided by bankruptcy filing ceases all debt collection and judgment enforcing actions. However, police power exception is a governmental action through which any government unit like CSLB can start or continue an action to enforce a judgment. As per the 9th Circuit Bankruptcy Appellate Panel, police power exceptions allow government units to sue a debtor “to prevent or stop the violation of fraud, environmental protection, consumer protection, safety, or similar police or regulatory laws, or attempting to fix damages for violation of such a law….” In re Dunbar, 235 B.R. 465, 471 (9th Cir. BAP 1999), aff’d, 245 F.3d 1058 (9th Cir.2001), quoting, House and Senate Reports (Reform Act of 1978) [H. Rep. No. 595, 95th Cong., 1st Sess. 343 (1977); S. Rep. No. 989, 95th Cong., 2d Sess. 52 (1978)]

        CSLB can also suspend the license of a contractor stating consumer protection, public safety, etc. as these falls under “police power” exceptions. Thus, if there are grounds other than the non-payment of dues available to the CSLB, they can easily continue to suspend your license despite filing for bankruptcy. If you wish to protect yourself, you need to make sure there are no other grounds for license suspension available to the CSLB.

        Since police power justification overrules any relief available through the automatic stay provision of bankruptcy, it is not necessary that CSLB might opt to file a motion for relief. It is important that if you wish to protect your license from being suspended, your lawyer will bail you out by proving that CSLB has no other basis for license suspension other than the non-payment of debts. For any advice related to contractor’s license protection consult expert bankruptcy attorneys at 888-297-6023.


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

          *Do you own a home?

          Are you currently working?

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

        • Can Educational Loans be Discharged in Bankruptcy?

          Can Educational Loans be Discharged in Bankruptcy?

          Bankruptcy is the best legal recourse available to people to get rid of unpaid dues accumulated due to miscalculated financial risks, heavy medical bills or long credit card bills. However, certain debts such as spousal and child support, government taxes and educational loans are not discharged even post-bankruptcy. Getting student loans written off during bankruptcy is extremely difficult, though not impossible, say Dallas based bankruptcy lawyers Recovery Law Group. By proving “undue hardship”, which incidentally is very difficult, one can get them cleared, however, the standards set by the court are extremely difficult to meet. According to the court set requirements, a person trying to get education loan discharged off needs to prove that he/she has endured more hardships than any average person.

          Though it is not necessary that every student loan will be discharged, you can always try if you can qualify for the same. For students who are older, it might be relatively easy to prove “undue hardship” since it is slightly more difficult to find a good paying job as you age; thus paying off debts and living a debt free life might become tricky. However, not all educational debts require the standard of “undue hardship” to be able to get discharged; they can be discharged like most debts post-bankruptcy.

          How to distinguish educational debts which can be discharged without the “undue hardship” standard?

          According to the Federal Bankruptcy Court section titled “Exceptions to discharge”, subsection 523(a)(8) which describes educational debts that require “undue hardship” for discharge, there are 2 main parts:

          1. Loans and overpayments “made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or non-profit institution.” In this, a large portion of all federal and state insured student loans are covered. Any loan funded through non-profit educational institutes is also covered here. To get these loans discharged you need to show “undue hardship”.
          2. This section deals with those loans which can be discharged without proving “undue hardship”. Here “qualified educational loan[s] as defined in section 221(d)(1) of the Internal Revenue Code . . . .” debts are included.

          Since unless the law states so, a debt cannot be discharged; educational loans which are not government guaranteed or funded by a non-profit and are not a “qualified educational loan” cannot be discharged without proving that you are undergoing “undue hardship”. It is therefore important to know about “qualified educational loan” so that you can discern whether they can be discharged without “undue hardship” or not. Three main types of debts which do not qualify as “qualified educational loan” emphasize on:

          • Type of educational institute attended
          • Timing of loan
          • Expense type for which debt was acquired

          Identifying Expenses which can Disqualify Debts & Make them Easily Dischargeable

          For a debt to not be a “qualified educational loan”, and avoiding the “undue hardship” clause, it should not be “incurred solely to pay qualified higher education expenses” as per Internal Revenue Code’s Section 221(d)(1). In layman terms, a mixed-use debt which is partly used to fund expenses related to education and partly for an unrelated purpose can be discharged without crossing the “undue hardship” hurdle. Student loans, in general, have contracts that ask you to declare that the loan grant is being used for educational purposes only. However, private loans can be used to fund not only the cost of education but also can be used elsewhere and thus can be completely discharged.

          Important Points to Remember while Considering the Discharge of Educational Debts

          There are certain points to be kept in mind regarding the discharge of educational debts like the timing and the type of the educational institute. Here are a few points to remember:

          • If you incurred the debts at a point of time when you were not an eligible student, the debt can be discharged without “undue hardship”. In case you applied for a course, for which you weren’t eligible, the debts can be easily discharged.
          • For an eligible student, you should be enrolled for at least half-time in a degree or certificate course. In case you have taken any educational debts when you were ineligible, the debts are dischargeable.
          • In case you are not studying at an “eligible educational institution”, the educational debt is not a qualified one. Many educational institutes are eligible, though not all of them. Some of the ineligible educational institutes (both big and small) have been functioning from time to time, with many going out of business too. Any debt incurred thanks to them can be discharged without “undue hardship”.

          It is important to ask bankruptcy lawyers, whether the educational institute you attended is an eligible one or not. To know more about getting educational debts discharged you can consult expert bankruptcy attorneys at 888-297-6023.


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

            *Do you own a home?

            Are you currently working?

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

          • Can a Litigant Who has filed for Bankruptcy be harassed by Financial Servicing Company?

            Can a Litigant Who has filed for Bankruptcy be harassed by Financial Servicing Company?

            A plaintiff who had executed a mortgage loan from Bank of America, N.A. on April 16, 2007, was unable to make adequate payments to the bank. This resulted in the bank filing a foreclosure complaint against the plaintiff. Post this, the plaintiff filed for bankruptcy under Chapter 13 in January 2013, which resulted in automatic stay affording protection against any collection actions. In June 2013, a modification was made in Chapter 13 bankruptcy by the plaintiff, wherein they proposed to surrender the home to Bank of America, N.A. against their claims. This modified plan was confirmed in June 2013, by the bankruptcy court.

            This debt was later sold off by Bank of America, N.A. to BSI Financial Services, Inc. To recover the dues, BSI Financial Services, Inc. sent a Notice of Servicing Transfer to the plaintiff on October 1, 2014. According to the notice, the plaintiff is expected to send any payments due on or after the said date to BSI Financial Services, Inc. A disclaimer was also attached to it, according to which:

            In case you have filed for bankruptcy, the “automatic stay” comes into effect in a bankruptcy case, or you have received a discharge for personal liabilities for obligations specified in the letter, BSI Financial Services, Inc. will not and does not intend to pursue collection of said obligation from the plaintiff personally.

            After six months of sending the above-mentioned notice, BSI Financial Services, Inc. made over ten phone calls to the plaintiff’s cell phone, nearly five calls to the home telephone and more than 10 voicemails. The plaintiff responded to BSI Financial Services, Inc. and asked them to stop the constant harassment since they had already filed for bankruptcy. But despite the request, the calls continued. According to the plaintiff’s complaint against BSI Financial Services, Inc. they had:

            • Made a minimum of 10 calls within a 2 month period (between October 15, 2014, and December 12, 2014)
            • Used automatic dialer system to call the plaintiff
            • Continuous calls were made to plaintiff’s cell phone
            • Made regular attempt to contact the plaintiff without their consent.

            BSI Financial Services, Inc. asked the court to dismiss all four different claims made by the plaintiff. Since numerous complaints were made by the plaintiff, the court also gave multiple decisions:

            1. Since BSI Financial Services, Inc. had acted as a debt collector, thereby violating the Fair Debt Collection Practices Act, the 1st charge of the complaint was not dismissed by the court.
            2. Since there was no proof that the voicemails left by BSI Financial Services, Inc. were pre-recorded, that plaintiff answered calls or that there was a delay before plaintiff got any human response, the 2nd charge was dismissed.
            3. The 3rd count was not dismissed as the defendant, BSI Financial Services, Inc., had indulged in acts of collection, assessing and claims of recovery by sending the plaintiff letters and numerous phone calls all amounting to the collection. Due to these actions, the defendant had willfully violated the bankruptcy automatic stay.
            4. A further analysis was required to assess whether the defendant had violated the Illinois Consumer Fraud Deceptive Business Practices Act for the 4th

            In case you find yourself in a bad financial situation, it is important that you contact expert bankruptcy attorneys at 888-297-6023 to find out the best possible course of action for yourself. To frame an effective plan for your financial problems, consult Los Angeles based law firm Recovery Law Group .


              *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.

            • Business Debts

              Business Debts

              The interest in launching something innovative often leads to venturing into business initiatives. In the U.S. the individuals find great platforms and get good support to start their own business and this spirit of entrepreneurship is much appreciated by society. However, there are ample things to reckon before one decides to take the big plunge into the business world of U.S. – the business venture could either be big or small, the invention of the new or expansion of the old.

              The foremost factor to consider in starting a business venture is the availability of a proper business plan. Unless you have the roadmap, there is no vision in your venture. Alongside this plan, the crucial aspect is the availability of stable investors. Without these aforementioned resources, it is easy for an individual to quickly land into a financial crisis with the business that he starts. The outcome is business debts and it could keep mounting with each day. It is quite normal for an individual to start their business in debt but with time the progress with business should save them from getting into financial crisis.

              Bankruptcy filing for business debts

              Surplus debts that turn out to be unmanageable for the business owners force them to file for business bankruptcy. It isn’t a negative move for your business to file for bankruptcy and there is nothing to worry or be shameful about it. The businesses see it as an opportunity to reconstruct their debts and formulate a plan to build their financial stability. At any cost, the filing of business bankruptcy shouldn’t be used for protecting your assets or your business fraudulently.

              You will definitely admit that the procedure of filing for business bankruptcy and the related tasks are very stressful. Unless the debtor has a backing through an efficient bankruptcy firm, it is always advised to stay away from business debts. Recovery Law Group, operates from Dallas, Texas and from Los Angeles, California have expert attorneys who can offer the support and guidance to handle situations of business bankruptcy. Dial 888-297-6203 to avail their services and get speedy solutions.


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

                *Do you own a home?

                Are you currently working?

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

              • Bankruptcy Trustee’s Role in Chapter 11 Filing

                Bankruptcy Trustee’s Role in Chapter 11 Filing

                Almost all bankruptcy filings get a trustee assigned to their case by the court. Chapter 11 is no different in this regard and the role of the bankruptcy trustee in the Chapter 11 scenario is as follows:

                • The U.S Trustee assigned by the court for Chapter 11 bankruptcy will oversee the entire case as it progresses and also review how the case is being administered
                • The Trustee will also be responsible for monitoring the debtor under purview, while his business continues to operate normally
                • The Trustee will be responsible for collecting the fee from the debtor. This is in line with the expectations of the court to pay a quarterly fee to the trustee until the case is dismissed or converted to another chapter (conversion from one chapter to another is carried out when there is non-compliance from the debtor’s side)
                • The Trustee will coordinate with the creditors and also organize the meeting of creditors according to the Chapter 11 bankruptcy needs. The meeting is imperative in cases where the intentions/ actions of the debtor need to be questioned under the oath

                In most of the Chapter 11 filings, the business that has filed for bankruptcy will still continue to function in order to repay the creditors. The debtor whose business is going through the current crisis need to keep the trustee informed about the operations of his business – this is accomplished through the reports that are shared to the trustee. The trustee will aid in setting down the guidelines for this reporting (reports on income & expenses in the business). Reports on specific issues involving bank accounts or payment of taxes also need to be reported to the trustee.

                Business owners can reach out to Recovery Law Group at 888-297-6203 for discussing their options on Chapter 11 bankruptcy. The team at Recovery Law Group, either from their Los Angeles or Dallas locations, will support the businesses for every question concerning the procedure in the bankruptcy filing and also guide on dealing with the bankruptcy trustees during the bankruptcy case journey.


                  *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 Preparations in California

                  Bankruptcy Preparations in California

                  Many honest and upright taxpayers are having a tough time making ends meet. This is because of the overwhelming debts accumulated thanks to numerous credit card bills, medical bills, etc. Though undesirable, bankruptcy provides you with a clean slate to get a fresh start as far as unpaid dues are concerned, it is not a child’s play to declare bankruptcy, especially in California. With unforeseen expenditures like huge medical bills or divorce causing you to spend double the amount of money, there is a serious requirement for debt relief among people. It is important to be prepared for bankruptcy, says, Los Angeles bankruptcy lawyers Recovery Law Group.

                  The very first step to prepare yourself for bankruptcy is to decide which chapter of bankruptcy would work best for you since each has a specific requirement and offers different protections. Choosing the correct chapter is important as they will affect your finances. It is also important to consult an experienced bankruptcy attorney, who will suggest the proper bankruptcy chapter depending on your financial circumstances.

                  The Workings of Chapter 7 Bankruptcy

                  This is also known as liquidation bankruptcy through which debtors can eliminate all debts eligible for discharge. Some debts like government taxes, student loan, spousal or child support, debts owed for injury caused to another due to DUI and restitution as a result of a criminal conviction are discharged only under specific conditions. Mostly, all eligible debts are discharged, however, sometimes some assets of the debtor might be sold off by bankruptcy trustee to pay off the creditors. The assets which are protected from going under the hammer include –

                  • The “homestead” or primary residence up to a specified equity limit
                  • The primary vehicle used for transportation (especially if you live in an area where public transport is limited)
                  • Your retirement accounts including IRAs, stock bonus plans, profit sharing, pension and deferred compensation plans like the 401(k) account
                  • A single household item with worth less than $675 which may include jewelry, valuable antiques, etc.

                  The state of California has 2 systems of exemptions wherein most debtors do not require to surrender any of their assets during bankruptcy. To qualify for chapter 7 bankruptcy, you need to pass a means test as this provision is primarily for those who are in dire need of debt relief.

                  Details of Chapter 13 Bankruptcy

                  The 2nd option available to individuals who fail to qualify for chapter 7 includes chapter 13 bankruptcy. This is commonly known as the repayment plan option, wherein the debtor has to repay a certain amount of the dues owed within a 3-5 year time frame. In chapter 7, the eligible debts are discharged within a few months of the bankruptcy filing, however, chapter 13 requires a lot more time to get discharged. The repayment plan is devised in consultation with the bankruptcy trustee wherein the entire debt or a percentage of it (depending on the debt accumulated and your assets) is paid. Monthly payments are made to the trustee who then distributes the amount amongst the various creditors.

                  This chapter provides you time to catch up on car payments, mortgages while making continuous payments towards your debts. The unsecured creditors like credit card companies are given the remaining amount every month. Post the duration of the repayment plan, the remaining debts are discharged.

                  How to file for Bankruptcy in California?

                  Once the chapter for bankruptcy is decided, it is important to prepare properly for a bankruptcy filing. Missing out on any step can prove to be quite a costly mistake as you might not get a discharge for bankruptcy.

                  Here are the steps required for filing of bankruptcy:

                  1. Accumulate essential documents

                  The court proceedings require you to have all documents containing pertinent information. Some of the necessary documents include valid ID card (birth certificate, driver’s license, birth certificate etc.); a list of all of your bank accounts and insurance policies which could result in a claim for or against you; all tax returns filed for the past 2 years; proof of income for the previous 6 months as well as proof of ownership of assets like property; as well as circumstances of your situation (divorce, expensive medical care etc.)

                  1. Credit counseling

                  The court approved credit counseling sessions are mandatory for people who wish to file for bankruptcy. During such sessions, your finances are seen by experts to conclude whether bankruptcy is the best way to get out of the financial mess. The counseling sessions are mandatory and inability to attend them might get your bankruptcy case dismissed.

                  1. Consult bankruptcy attorney

                  Though having an attorney isn’t a requirement for a bankruptcy filing, having one by your side definitely helps the case. Compared to pro se filings, the success rate of attorney handled cases are much better. The entire paperwork, communication with creditors and all other requirements are taken care of by the attorneys since they are familiar with the rules. Consult expert bankruptcy attorneys at 888-297-6023 to find out more about your case.

                  Things to avoid while declaring bankruptcy in California

                  For all those people who wish to get rid of their financial problems and are contemplating filing for bankruptcy, it would be beneficial to avoid making some common mistakes, like specific transactions in a particular timeframe, which could cost them dearly. The court does not look kindly on unnecessary expensive purchases and transferring huge sums of money within a few months prior to a bankruptcy filing. This is construed as hiding of assets. Such a practice may be considered illegal, resulting in dismissal of a bankruptcy petition or worse, filing of criminal charges.

                  Many people think that transferring assets to other people will result in those assets not becoming a part of the bankruptcy estate and therefore are not liable to be sold off to pay creditors. However, such transaction, even in your spouse or children’s name can be viewed as a fraudulent action by the court. Generally, transactions made 90 days prior to the filing of bankruptcy come under the scanner of the court. If any such aforementioned transactions are spotted, the court can and does reverse them to make the said assets part of your bankruptcy estate. Other transactions that can be interpreted as fraud include –

                  • Selling your interest in your business
                  • Taking your name off as an owner
                  • Taking your name off joint bank accounts
                  • Transferring money from your account to someone else’s
                  • Selling off real estate despite not getting a fair market price for the same

                  While filing for bankruptcy, people should keep certain things in mind, like:

                  • Treat all creditors equally

                  Despite your desire to pay off a creditor full amount due to them since they have patiently waited for you to get a hand on some money while your payments were due, is not looked upon kindly by the courts. Such kind of transfers come under “preferential transfers” which can have a negative impact on your bankruptcy proceedings and result in clawback. The bankruptcy trustee can assume that such a payment is made to exclude the particular creditor from bankruptcy plan. In this case, they can sue the creditors and obtain the amount paid back to the bankruptcy estate. Thus the situation can prove to be detrimental for both the debtor and the creditor in this case.

                  • Don’t make unnecessary expenses on credit cards

                  If possible, avoid using your credit cards completely; if not, then you definitely need to curtail spending on unnecessary stuff like any expensive items, etc. The court is likely to accept the usage of credit cards for payment of utilities, gas, groceries, etc. but not of any item worth over $650 within 90 days of the bankruptcy filing. Thus if you don’t want your bankruptcy case to be dismissed, dodge making avoidable expenses through credit cards.

                  • Avoid filing a lawsuit

                  In case there are people who owe you money or a business dispute that needs resolving and you wish to take the legal recourse of filing a lawsuit; avoid it if you are considering filing for bankruptcy. This is because any recovery you make through the lawsuit will become the property of the bankruptcy estate, thus leaving you with next to nothing.

                  • Avoid making any business deal resulting in payments being made to you

                  Any business deal you make which results in you acquiring some money might not be what you desire especially when you are about to file for bankruptcy. This is so because any money you receive ends up becoming a part of the bankruptcy estate which is used to pay off your debts. In case you are expecting an inheritance, bonus, tax refund or similar monetary transactions, you should avoid or delay filing for bankruptcy. The court inspects all transactions 90 days prior to the bankruptcy filing to check for any transactions it considers prohibited.

                  If you are amongst the various people who are struggling with unsurmountable debts bankruptcy is an ideal choice for you. Whatever your way of getting a bankruptcy discharge, whether a wiped clean slate via chapter 7 or a new financial path via debts management as per repayment plan under chapter 13; you are in for a fresh lease of life. To get a better idea about your case, get a consultation with an expert bankruptcy attorney.


                    *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 Lawyers Guidance for Debt Relief Options

                    Bankruptcy Lawyers Guidance for Debt Relief Options

                    At Recovery law Group, we help you deal with in-excessive debt which you may have accumulated over the years. If you are a victim to insurmountable debt, do not worry, as we have experienced lawyers who will be at your service to bring you out of your misery. We will study your case, and support with you with the best available solution as per your case and scenario. Not only will we guide you in coming out of this debt, but also provide alternatives and options to help your overcome your dire days and take a fresh start towards a stable and a better financial future. We provide services in Los Angeles, Dallas, and TX. You can easily get in touch with our lawyers at 888-297-6203.

                    Recovery law Firm – The name that is always Trusted

                    Our Motto is – “Clients First” and hence we go out of our way, to help you get a positive solution. Our lawyers are experienced and have solved multiple such cases on Debt Relief and will do the same for you. Each case is unique and so is the solution for it. We, at Recovery Law Group, therefore take out time to understand our client’s situation before recommending any proceeding or step based on previous cases.

                    Why should you choose recovery law Group over Other Firms?

                    Apart from many obvious reasons why should you choose us to handle your case, here are some reasons which prove we are your Right choice-

                    1. We are one of the most reputed along with being the largest Bankruptcy cases handling firm.
                    2. We have solved more than thousands of cases with a positive outcome in Dallas, Las Angles as well as TX.
                    3. We are all ears to understand your case before moving to guidance. Meaning, each case is unique and so are the solutions, so we give you only those solutions which are best suited for your case and beneficial for you and not as per older cases on the same

                    Benefits associated with Filing for bankruptcy

                    Though filing for bankruptcy should be the last resort, filing for bankruptcy under chapter 7 and chapter 13 can be highly beneficial for people who are in dire need of a solution from their debts. Filing for the above can help you overcome your debt issues. The best option is to consult a Recovery Law Group lawyer, who can guide you about the proceeding and steps involved while filing for the same.

                    1. Once you file for bankruptcy, the automatic stay will prevent all the future debt collection efforts.
                    2. It will help you discharge the majority of your unsecured debts
                    3. It will also help in preventing foreclosure of your home
                    4. It will also put an end to auto repossession and wage garnishment
                    5. Most importantly, it will clear your bad debts and help you start afresh with a good background.

                    Chapter 7 Bankruptcy Explained

                    To fall under the category of Chapter 7 and to be able to file for bankruptcy under this chapter, you need to fulfill certain criterion to prove that you actually are in dire debt and unable to repay your debts. A Means Test will be conducted to confirm whether your income falls under the guidelines of Chapter 7. If you are fortunate enough to file for bankruptcy under this criterion, be informed that the majority of the people who have filed for bankruptcy under Chapter 7, often get their debt discharged. This chapter is generally recommended by lawyers when your income is very less and you have no resorts left to repay your debts. This chapter is often termed as the “Liquidation Bankruptcy” since if you qualify under this chapter, it is quite likely that your debts will be discharged, of course at the price of surrendering/selling part of your property to repay the creditors.

                    Chapter 13 Bankruptcy

                    This is the next resort when you do not qualify to file for bankruptcy under chapter 7. Often termed as “reorganization bankruptcy”, under Chapter 13 you get the opportunity to repay your debts over a period of time viz – 3 to 5 years. Here the bank helps to grant you time when you are not able to pay back your debt immediately. This option is generally selected by people who have adequate income to pay back their debts but cannot do so immediately.

                    Step by Step guideline to file for bankruptcy

                    Filing for Bankruptcy is not a cake-walk, as it involves complex proceedings. Hiring a professional bankruptcy attorney can make the entire proceedings quite simple for you which involve submitting a plethora of forms, providing all detailed information to the bankruptcy court, attending court hearings, attending legal procedures amongst many others.

                    Step by step process includes-

                    1. Completion of a credit counseling course

                    You need to complete a Credit counseling course approved by the U.S Trustee’s Office. This course generally costs around $25 to $35 and needs to be completed 180 days before you file for bankruptcy. If the above course is out of budget or cannot be afforded by you, you can ask for a free course or discounts.

                    1. File for Bankruptcy petition with the Federal court

                    The next step after completing the credit counseling course is to file a petition with the Federal court in your jurisdiction. Along with the petition, you must submit all the relevant information regarding your income, debts, and assets owned by you. Filing for bankruptcy petitions at the Federal Court has a lot of advantages. Once done, you will stop receiving calls, mails, and texts from the creditors, as your bankruptcy attorney will be directly handling that. If you going through foreclosure or repossession, filing for bankruptcy will put a stay on them! Not only this, but all your debt collection efforts via creditors will also stop once the court issues stay order on them. Please note, the above will only be valid if you have not already filed for bankruptcy in the last 12 months.

                    1. Attending the Meeting for Creditors

                    You also need to attend a “meeting with the creditors”, 60 days from the day you file for the bankruptcy petition. This meeting is generally conducted in a “meeting room” and not the court, between your attorney, bankruptcy trustee and the creditors. This meeting is generally conducted to evaluate the information submitted by you along with your bankruptcy petition along with other questions which the bankruptcy trustee may have for you. The creditors may or may not attend this meeting.

                    1. A debt Counseling Course

                    Post the meeting of creditors, you need to retake the debt counseling course, to help you understand your budget better along will planning on how to move ahead to manage the debts.

                    1. Confirmation by the court regarding your Eligibility to file for bankruptcy

                    After you have re-taken the debt counseling course and understood on how to proceed with managing your debt, the court will now review the information submitted by you at the creditors meeting. If you have filed for bankruptcy under chapter 7, the court will ascertain the Means Test score and judge your eligibility. In case you have applied for bankruptcy under chapter 13, your secured and unsecured debts will be reviewed to confirm your qualification.

                    1. Debt management by the Court

                    If in the above step, the court has accepted your plea for bankruptcy, the court will now handle your debts as per the guidelines of the Chapter you are filing under. If qualified under Chapter 7, you will have to liquidate part of your assets/property to repay your creditors. If qualified under chapter 13, you will have to submit a detailed plan for repayment as per the 3 years or 5 years scheme.

                    The court will finally award you a discharge of eligible debts, once you have completed the above steps and paid off the necessary debts as stipulated by the court.

                    What types of debts can be discharged?

                    There are generally 2 types of debts – Dischargeable and Non-Dischargeable.

                    Dischargeable debts are those which can be completely wiped out by the bankruptcy court. Which means, that once the bankruptcy court approves dischargeable debts, you are no longer liable to pay these back and nor can the creditors follow up or harass you regarding them. These include – Medical Bills, Utility Bills, Personal Loans, Credit Card Debt, etc.

                    Non- Dischargeable debts cannot be completely waived off, though you can get an extension to repay these via Chapter 13. These commonly include – Student loan, alimony, child support, and tax debt.

                    A good and professional attorney like at Recovery law Group can help you review and understand the type of your debt to help you deal with the situation better.

                    Alternatives to bankruptcy

                    Consulting a good and professional attorney is the best choice while planning to file for bankruptcy. If you will not be getting any benefit via filing for bankruptcy, your attorney can guide you through other alternatives and options like – debt consolidation, restructuring the loans, negotiation for decreasing debt amount, etc.


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

                      *Do you own a home?

                      Are you currently working?

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

                    • Bankruptcy and Bitcoin

                      Bankruptcy and Bitcoin

                      The value of Bitcoin that had been launched in 2009 by Satoshi Nakamoto, has shot up in its value over the years. Gone are the days that close to 10,000 bitcoins were needed to buy a Papa John’s pizza. It now trades at $6,500 and the price of each bitcoin increased to $20,000. Notwithstanding the changes in its trading value, The percentage of buyers or investors in bitcoin money has not declined. That is why we see many people all around the world, own bitcoins or other types of cryptocurrencies. Have you queried what happens to them or the bitcoins that they own when such folks encounter a financial crisis or when they file for bankruptcy?

                      Though we do not have a direct answer as to how this is managed by bankruptcy courts, The law firms have a good idea as to how cryptocurrencies are treated in bankruptcy in line with bankruptcy principles. They are assets too and forward need to be disclosed while a debtor files for bankruptcy. It is also likely that Bitcoin can be exempted by bankruptcy principles and hence the borrower may get to retain them too.

                      Before we delve into further details of the same, let’s first understand about Bitcoin.

                      Bitcoin

                      Bitcoin is one type of cryptocurrency that exists on a blockchain. Blockchain may be interpreted as a digital ledger that is shared between several computers. Since bitcoin exists anonymously and due to the design of the blockchain technology, It becomes difficult to steal the value of this cryptocurrency. Bitcoin is also known as a medium of exchange in digital transactions.

                      Bitcoin in Bankruptcy

                      Declaration: The foremost question of a debtor who possesses bitcoin is whether he has to list the possession while he records for bankruptcy. The answer to his question is a firm, YES and it is irrespective of whether under Chapter 7 or Chapter 13, You have to provide the court with certain information about your property and finances. Just as the other assets that are disclosed along with other financial information, Immaterial of whether there is a probability of exemption or not. Cryptocurrencies are like Bitcoin and also need to be declared.

                      Anonymous existence does not entitle the cryptocurrencies to remain anonymous during a bankruptcy process. The bankruptcy trustee in the case can exercise any mechanism (inclusive of reviewing tax returns, looking through financial statements and researching public records) to discover the assets of the debtor. Do not purposely neglect the possession of bitcoin or another cryptocurrency as it is a bankruptcy fraud to do so. If convicted of this fraud, The debtor can be punished up to $250,000 and held for 20 years. A debtor can also miss the discharge in the bankruptcy process.

                      State of bitcoin in bankruptcy: Since bitcoin is also the property, It becomes part of the bankruptcy estate when a debtor files for bankruptcy. The liquidation impacts can incorporate both excluded and non-absolved property. The Chapter of filing decides the property that can be treated as exempted or non-exempt. In Chapter 7 bankruptcy, Typically a “no-asset” bankruptcy, The debtor’s assets are exempted and they do not lose any section in this ordeal. If any non-exempt property is classified in Chapter 7, Later it is sold off to pay the unsecured debts.

                      Chapter 13 bankruptcy works through a repayment plan that factors in the value of the non-exempt properties of the debtor. The plan is targeted to pay back creditors in a three or five-year period.

                      Exemption Criteria: To further understand the exemption criteria for bitcoins that is one must know the state law and federal law exemption in the bankruptcy filing process. In states like California, There are two types of state exemptions known as 703 or 704 exemption. Bitcoin would best fit under 703 exemptions which are also the wildcard exemption and it exempts under the clause of debtor’s aggregate interest in any property. The limit is changing and depends on the other releases used in the bankruptcy.

                      Miscellaneous complexities

                      We only discussed the complexities linking to the legal status and the type of exceptions that bitcoins would best fit into. These are quiet areas that the bankruptcy courts are trying to address and have no definite rules until now. There are also many unknown complexities that can arise depending on the value of bitcoin controlled and related financial implications. A good bankruptcy lawyer from a renowned firm like Recovery Law Group would be able to guide a debtor with needed clarity. Stand out to this team in Los Angeles, California or Dallas, Texas for managing of cryptocurrencies in the bankruptcy processes.


                        *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.