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Category: Chapter 7 Bankruptcy

  • What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?

    What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?

    When you file for bankruptcy all your assets are divided into the exempt and non-exempt property. While you can keep your exempt property, the non-exempt property is used to pay back your creditors. In the case of Chapter 7 bankruptcy, the trustee liquidates your non-exempt property to repay unsecured debts. In Chapter 13 bankruptcy, you can keep non-exempt property too, but you need to pay an equivalent amount to your unsecured creditors. According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, funds in your checking account can be used to repay your creditors, or kept by the bank if you owe money to them (via credit cards) or can be exempted.

    While filing for bankruptcy you are expected to disclose all your assets and income including your checking account balance. In case you fail to do so, and the trustee finds out about it, it will be difficult to protect any money in the account. You could also be accused of fraud. However, there is a possibility that you could protect your checking account using the exemptions provided by the state. Every state and the federal government provide bankruptcy filers with several exemptions to protect their equity in various assets. You could choose from either set of exemptions. You need to specify which property you wish to exempt during the bankruptcy proceedings. For further details regarding the procedure, call 888-297-6023 to speak with expert bankruptcy lawyers Los Angeles.

    Can checking account funds be exempted?

    If you can get an exemption on your checking account, you will be able to protect that money from being handed over to your creditors by the bankruptcy trustee. However, most states don’t offer an exemption for checking accounts or cash. Those that offer have very less limit. You could, however, use other exemption to protect this fund, like:

    • personal property up to a certain dollar amount;
    • cash on hand up to a certain dollar amount;
    • Social Security and other federal benefits;
    • your wages;
    • pension and retirement funds;
    • personal injury awards;
    • child or spousal support;
    • tenancy;
    • wildcard exemption up to a certain dollar amount.

    What if the checking accounts are partially exempted or worse, not exempted?

    If the account funds are non-exempt or partially exempt when you file for bankruptcy, you will not be able to keep that money. Any non-exempt property is handed over to the bankruptcy trustee and used to pay your creditors. However, there are certain things you need to remember while dealing with checking accounts during bankruptcy.

    1. Your accounts freeze. Banks freeze your accounts when they become aware of your bankruptcy. This is done to protect your creditors. You or your attorney could ask for a release of the freeze and the needful is done if the trustee agrees that you are entitled to the checking account funds.
    2. Clear checks before filing for bankruptcy. If your checking account balance exceeds exempted amount (cheques didn’t clear) when you file for bankruptcy, the account could be freeze and funds regarded as non-exempt property. It is important to ensure that your cheques have cleared before you file for bankruptcy to avoid this situation.
    3. Business bankruptcy. The trustee can call banks directly in this case, unlike an individual bankruptcy as in the latter case you just must pay an amount equivalent to non-exempt funds in an account.
    4. Owing money to the bank. If you have a credit card and checking account of the same bank, your bank can use the money in the account to settle the credit card debt in case of Chapter 7 bankruptcy Los Angeles.


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    • What is No-Asset Chapter 7 Bankruptcy?

      What is No-Asset Chapter 7 Bankruptcy?

      While the Chapter 7 is known as the bankruptcy code which sets off debt from the liquidation of assets, it can be surprising to learn about No-Asset Chapter 7 bankruptcy. It could be even more surprising to note that most of the Chapter 7 bankruptcy California cases are No-Asset cases. The no-asset case is a scenario where, the filer does not give in any asset or cash to the bankruptcy trustee for liquidation. The filer instead keeps possession of all the assets, he/she owns. The lenders or creditors will not expect any proceeds or debt settlement, as there would not be any since, the filer has no assets to give in to the bankruptcy trustee.

      What is the core of Chapter 7 bankruptcy?

      Chapter 7 classifies all assets held into two types. One is exempt and the other one is nonexempt. The nonexempt assets are given up for liquidation and their proceeds are used to settle the debts of the lender. Exempt assets are assets which are of basic necessity and have various codes and sections wherein they shall be exempt against the Chapter 7 bankruptcy procedures. These assets need not be given up during the Chapter 7 bankruptcy course. To know if your asset is exempt or non-exempt as per your state exemptions, log on to https://bankruptcy.staging.recoverylawgroup.com/.

      How can a case turn into No-Asset case?

      If you have used all the exemptions and have all your assets in the blanket of exempt assets and none in the nonexempt category, your case becomes a no-asset case. Close to 70% Chapter 7 bankruptcy witnessed in states like California, Texas, New York, etc., see no-asset case. Once you have protected all your assets under some or the other state/federal exemption, the bankruptcy trustee cannot liquidate the same to settle the debts of the lenders. In this scenario, the court sends notice information to all the lenders associated with the filer confirming no proceeds or debt settlement from the Chapter 7 bankruptcy filing.

      The lenders or creditors would not need to file a proof of claim or record the amount owed by the filer. All the debts shall be released once the bankruptcy case has been settled by the court. However, if during the investigation, bankruptcy trustee comes across some nonexempt asset, the trustee will notify the lenders and collect documentation to allocate the hence generated proceeds towards the debt. For better understanding or help, reach out to +1 888-297-6203 now for the most professional and experienced attorneys California in town.


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      • Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

        Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

        Chapter 7 is not often recommended by experts as people tend to lose their valuable assets with this type of bankruptcy. However, there are many situations when Chapter 7 can be beneficial than Chapter 13. These benefits can be interpreted as reasons for opting for Chapter 7 over Chapter 13. To learn more about bankruptcy, Chapter 7, Chapter 13 and other Chapters log on to https://bankruptcy.staging.recoverylawgroup.com/.

        List of some benefits of Chapter 7

        • Less time-consuming- The process of applying for bankruptcy under Chapter 7 and receiving a court judgment is relatively quick. An average case could take 3-6 months from the day bankruptcy has been filed.
        • Absence of payment plans- Unlike Chapter 13, Chapter 7 does not carry most liabilities forward. This means there is no need for any payment plan in order to repay the creditors in the future.
        • A higher percentage of debts can be released- With some exception to some of the priority debts like student loans, child support, alimony, taxes, penalties, etc., most of the other debts are released when Chapter 7 bankruptcy is filed. In general Chapter 7 results in the highest percentage of debt release compared to other Chapters.
        • Protecting basic assets is a possibility- The common sentiment with respect to people filing Chapter 7 or considering Chapter 7 is that they won’t have any assets left. However, this is not true, there can be several arrangements made wherein many assets can be protected as well as some nonexempt assets also can be possessed. Under most circumstances, you can keep your basic essential assets including a home and a car.

        What type of filers should consider Chapter 7 bankruptcy?

        Chapter 7 is ideal for people with the following characteristics-

        • Own assets with a lower fair market value
        • Have a higher amount of unsecured loans like a credit card, medical bills or unsecured personal loans
        • Whose household income is less than the state median

        The matching of household income with the state median is a basic eligibility criterion. If your household income is below the state median of similar household, you qualify for Chapter 7. Else, you would have to deduct your income with some standard deductions to know your net income less standard or basic expense deduction. If your income is still above the median, you might not qualify for Chapter 7.

        Should you opt for Chapter 13?

        Chapter 13 is the straight competitor to Chapter 7. People who have high priority loans which will not get discharged while filing for Chapter 7 bankruptcy, should consider Chapter 13. People who wish to keep all their assets without much complications should also consider Chapter 13. What are some of the key disadvantages of considering Chapter 13? The list can be found below-

        1. Time-consuming – Apart from the 3-6 months of processing time in the bankruptcy court, your payment plan might last for 5 years. This means you are not left off the hook for a very long period of time compared to Chapter 7, which is almost done and dusted in max 6 months of the time
        2. Disposable Income – Often there is a misunderstanding that, the payment plan does not fluctuate with the change in disposable income. However, if the disposable income increases, the payment plan changes to accommodate more debt. To sum it up, the increase in income directly reduces the amount of debt being released.
        3. Complicated payment plan and disposable income calculation – Arriving at the disposable income and forming a payment plan for the next 3-5 years that satisfies the bankruptcy trustee, as well as the lenders, can be a laborious work.
        4. Adhering to the payment plan – Adhering to the payment plan becomes extremely important for a Chapter 13 filer, as there is a risk of losing the assets used to secure the loan such as a car or even the home to foreclosure. Apart from being current with the payment plan, the filer has to be current with all the non-releasable debt like taxes, administrative fees, child support, etc. This can be tough.
        5. History does not support the cause well – Just how past records say 85% of Chapter 7 cases are no-asset cases, the trend is not very positive for Chapter 13. As records, 63% of Chapter 13 bankruptcy filers do not successfully execute their payment plan as determined at the time of filing. This creates a greater risk of foreclosure, asset detachment and zero release of debts.

        The above were some of the negatives of Chapter 13 bankruptcy code. However, people with consistent and good income sources have managed to get better of the record presented by Chapter 13 historic filers. A lot has been discussed about disposable income. Let’s find the list of deductions allowed from your income to arrive at the disposable income-

        • Food and clothing as per the standard deduction allocated in the state
        • Housing and utilities as per the federal standard or state irrespective of actual costs
        • Transportation if the filer does not own a car or a bike or maintenance costs if the filer owns an automobile
        • Taxes
        • Involuntary deductions from salary
        • Life Insurance
        • Child support, family support, alimony, and similar court rulings
        • Healthcare cost as per the standard indicated by the state or federal standard
        • Certain education costs

        Total income less the above deductions would help you arrive at the disposable income, which will be directly in full towards the debts owed for the next 3-5 years. If you are still confused about whether to opt for Chapter 7 bankruptcy  or Chapter 13 bankruptcy, connect with us at 888-297-6203 for the best advice and experienced solutions.

         


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

        • Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

          Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

          Debt discharge or release can be regarded as one of the major benefits of chapter 7 bankruptcy San Antonio. However, it can be so that the debt discharge might be limited, or one might not get any discharge. Why does this happen, how to avoid this? All these questions will be addressed below. Meanwhile, address all other worries or questions about bankruptcy and their chapters on https://bankruptcy.staging.recoverylawgroup.com/.

          Legal reasons for not qualifying for a discharge

          The two common legal barriers for not qualifying for a debt release can be listed as follows-

          • Error in procedure

          The bankruptcy court is a legal framework and it has a pre-defined methodology of getting things done. For instance, filing of the form, passing of motion for different scenarios and presenting the case in front of the court has a set procedure and experienced attorneys can best handle the documentation and presentation part. A small error in this process could create a legal barrier for availing debt discharge.

          • It is a non-dischargeable debt

          There are some debts which have been categorized under non-dischargeable. There are almost 19 types of debts which cannot be discharged. If your debt falls under this category, it is very unlikely to get a discharge. However, under certain circumstances, with a good attorney, you may be able to get some relief for these 19 categorized debts also.

          Debts that are normally non-dischargeable

          Under most scenarios, there is some type of debts which are not subject to discharge most often than not. The list below consists of some common non-dischargeable debts-

          • Any unscheduled debt, which the debtor fails to list in the bankruptcy petition and for which creditor does not receive a notice because of not being on the mailing list, shall not be discharged
          • Tax Debts
          • Child support and alimony
          • Fines, penalties and other directive fees to government agencies
          • Student loans
          • Drink and drive debts
          • Debts from tax benefited retirement plans
          • Debts arising from Condo or HOA fees
          • Attorney fees
          • Criminal restitution

          On what basis can the Court deny a qualifying release of debt?

          The basis for court denial for release of debt can make you more complaint and vary about the process and you can avoid such scenarios. Few of them can be listed as follows-

          • Not facilitating requested tax documents
          • Did not complete financial counseling course, which is a mandatory requirement for filing a bankruptcy court
          • Any transfer or nondisclosure of a property or an asset to manipulate the court and the creditors
          • Tampering with the book records, agreements and any other records of value
          • Any fraudulent act in relevance to the bankruptcy case
          • No or incomplete records for lost/sold/disposed assets
          • Violation of court order during the bankruptcy process
          • Have received a bankruptcy discharge in the recent years

          Debts that can be subject to a strong release objection

          These are debts that can create controversy amongst the lenders and can lead to strong objection if the filer appeals for release of such a debt. Such debts have a 50-50 chance of being released. They can be listed as follows-

          • Use of credit card for the purchase of luxury goods – In 99.9% cases, such a debt is a non-dischargeable debt and every credit card lender will surely object release or discharge of such a debt
          • Cash advances – If a bankruptcy filer has received any cash advance from a lender within 70 days of the bankruptcy filing, especially above $1,000, it can be regarded as a fraudulent transaction. Hence, the cash advance could be a non-dischargeable debt.
          • Any debt that is obtained by providing for incorrect or false documentation
          • Any debt that has been incurred due to willful damage to other’s property of causing injury to someone else is also subject to a non-discharge.

          It is still not something which straightforward to interpret as there are a lot of ifs and buts when it comes to the type of debts that can be wiped out versus debt that shall prevail even after bankruptcy. Dial in 888-297-6203 for more information and get all your questions answered from the subject matter experts.


            *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.

          • Relief from Credit Card debt through Chapter 7 Bankruptcy

            Relief from Credit Card debt through Chapter 7 Bankruptcy

            Chapter 7 Bankruptcy law in the USA offers people to declare bankruptcy to elicit relief from the debts. The debtor seeks this law when he/she is unable to clear the debts. People may file for bankruptcy when they have little or no assets to clear the debt. The creditor must be content with little or no payment. To know more about bankruptcy and its implication on the debtor and creditor, log on to https://bankruptcy.staging.recoverylawgroup.com/.

            How can Chapter 7 help to clear credit card debt?

            A client can file a case under chapter 7 when he is unable to clear his credit card debt. The court will only accept the case when it finds no evidence of fraud and any misuse of the law. The court appoints a trustee that examines the debtor’s assets and property which could be sold to pay the creditors. The property if at all is sold at market price to pay the creditors. The debtor, if has no assets to repay the creditor is often given relief from the debt. The debt then falls under discharge and the debtor is free from all debts.

            However, the case can backfire if the debtor is found to be engaging his credit card on luxury items after filing the case.

            • Buying luxury goods

            The court is vigilant and examines closely the conduct of the debtor. If the debtor is buying anything above $675, within 90 days of applying for bankruptcy, the case can be dismissed by the court. Any goods above $675 fall under luxury consumption and the court does not allow such extravagance by the client. However, any expenditure availed against basic daily consumption of goods like food, clothing, etc. does not fall under luxury usage. The client may buy but must be careful of overindulging after filing the case under chapter 7.

            • Withdrawing money

            There could also be a limit to how much money you can withdraw after filing the case. The debt could turn into non-dischargeable if the client withdraws more than $950 within 70 days of applying for bankruptcy. The amount, however, is refreshed with every few years.

            The court brings in such rules to prevent fraud and false filling of bankruptcy. To get the best advice and tips for filing under chapter 7, you can visit- Recovery Law Group.

            The benefit of the doubt for the creditors

            The court ensures that the creditors must also get due justice. While the debtor takes relief under chapter 7 bankruptcy California the creditor gains nothing but a hole in his pocket. The court allows the creditor to file a petition against the debtor. The creditor must file the petition within 60 days of the first meeting if he wants to challenge the debtor.

            The debtor, on the other hand, can hold or halt the creditor if he files a timely reply to the creditor’s notice of non-dischargeable. The court then holds a hearing in benefit of both creditor and debtor, each being given an equal chance to prove their case. You can call 888-297-6203, for advice to make your case strong.

            Alliances of debtor

            When the debtor avails a credit card, he/she needs a guarantor. A guarantor or a consigner is a person who takes the responsibility of the debtor. They are bounded by the contract to repay the debt. When the debtor files the chapter 7 bankruptcy Californiabankruptcy case under chapter 7 the discharge to the debt is limited to the debtor and cannot be extended to the guarantor or consigners. Anyone other than the debtor, if is obligated for charges that the debtor has made, will still be liable after he/she files chapter 7, even if the case is in the debtor’s benefit. For finding the best attorney who could interpret and suggest solutions for your case, dial in 888-297-6203 now!


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

              *Do you own a home?

              Are you currently working?

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

            • The Means Test For Chapter 7 Bankruptcy Eligibility

              The Means Test For Chapter 7 Bankruptcy Eligibility

              Bankruptcy has different Chapters which can have certain benefits or disadvantages depending on the specific financial condition of an individual. The first step before deciding on filing for bankruptcy is to analyze the eligibility aspects. An individual can qualify for one or more Chapters simultaneously or there could be some adjustments made based on the suggestions of reliable attorney to qualify for beneficial bankruptcy code. Recovery Law Group can not only help you find an excellent attorney but can also guide you through with some basics of bankruptcy and its Chapters.

              Chapter 7 ideology

              Chapter 7 is based on the idea of releasing debts with all disposable assets. Apart from basic assets, all assets are liquidated to pay off as many dues as possible and the remainder shall be discharged or wiped out. This is usually the last resort for people when they console themselves to lose some of their assets and wipe out other debts in order to fresh start a new financial journey. However, with some exemptions and ability to safeguard some essential assets, it can be more than handy under most circumstances.

              ‘Means’ test and Median

              A means test is an eligibility criterion which has been put to use to make Chapter 7 accessible only to poor people. Due to misuse of Chapter 7 by average and upper-income individuals, a means test clause was introduced several years back. In order to verify eligibility with respect to the Means test, one has to calculate his/her household disposable income. This disposable income is calculated using the average income in the recent 6 months less some of the standard deductions associated with the basic necessities that have been pre-defined by the state regulations or the federal regulations. The actual expenditure is disregarded, and the state standard deductions are to be applied under most circumstances. Higher the disposable income, the lower the chances of qualifying for Chapter 7.

              The means test is applicable for all filers except the business bankruptcy filers. The calculation for disposable income can be skipped if your income is below the state or federal median, whichever your bankruptcy court follows or approves. Only if your income is above the state median, will you need to chart out disposable income and the standard exemptions.

              Court’s intervention

              Under rare circumstances, even if you pass the means test, the court might switch you to Chapter 13 if your actual expenses are lower than the availed standard exemptions. Sometimes, you might not qualify for all types of exemptions and hence, the court has every right to review the exemptions or deductions claimed and make necessary adjustments if required. Different forms are available at your disposable like the Form 122A-1, For, 122A-2 and Form 122A-1 Supp for calculating your disposable income for the means test.

              Business Chapter 7 bankruptcy

              The biggest advantage for a business or a sole proprietor with business debt is that they do not have to go through the complicated means or median test. A business could be LLP, corporation or a partnership. For a sole proprietor, it can be tedious to acknowledge whether he is a business debtor or a consumer debtor. If the sole proprietor has debts that are predominantly of business nature say above 90%, he/she will be considered as a business debtor. On the other hand, if consumer debts are higher, the sole proprietor also might have to undergo means test and qualify similar to an individual for a Chapter 7 bankruptcy California.

              For more insight on this and many more bankruptcy-related topics dial in the experts on 888-297-6203.


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

                *Do you own a home?

                Are you currently working?

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

              • How to Determine if Chapter 7 is Suitable For You or Not?

                How to Determine if Chapter 7 is Suitable For You or Not?

                If you are confused about whether Chapter 7 is appropriate for you or not, the solution can be found right here. By finding answers to the following questions, you can determine if Chapter 7 is the right choice for you or not. To know more about other benefits and alternatives to Chapter 7 log on to Recovery Law Group.

                1. Are you ‘Judgement proof’?

                This is the first question that will determine the threat of your lenders or creditors. ‘Judgement proof’ is the term used to determine the degree of impact a Chapter 7 judgment could make on your financial position. If your lenders and creditors can legally access your cash, assets, or any other property, you should definitely consider Chapter 7. If they aren’t able to access your assets before and after Chapter 7, you are referred to as ‘judgment proof’.

                When the debtor is ‘judgment proof’ the lender usually approaches the court for a lawsuit proceeding. This is true for most of the unsecured lenders. If you think you are going to be held liable in the lawsuit, it is better to apply for Chapter 7 bankruptcy to release all unsecured debts (under most circumstances) to prevent further action.

                1. Is Chapter 7 discharged debt enough for your financial situation?

                There are basically two types of debts one is non-dischargeable debts and the other type is dischargeable. There are some debts which cannot be released even during bankruptcy. These types of debts are classified as non-dischargeable debt. These can be listed as follows-

                • Child support and alimony payments
                • Student loan payments
                • Income tax dues from three recent years
                • Debts relating to any luxury spends
                • Fines, penalties, arising from lawsuit, accident injury payments, drinking & driving cases, arising from Court judgments

                In certain situations, some debts which are otherwise dischargeable can be subjected to a full repayment by the bankruptcy court. These debts can be listed as follows-

                • Any debt incurred by providing for incorrect information or by writing a bad check, which is otherwise referred to as fraud
                • If there are debts that have been caused due to willful destruction of other’s property or a malicious injury, such debts will be judged as non-dischargeable
                • Debts developed from theft, embezzlement and/or breach of trust
                • Debts mentioned in the form of a marital settlement agreement, which could otherwise be discharged.

                If a large chunk of your debts is in the above categories, you would not want to consider Chapter 7.

                Determining the assets, you will have to give up under Chapter 7?

                The assets are classified under two categories exempt and non-exempt for Chapter 7 bankruptcy. Under most states, there are certain exempt properties, which you can safeguard even when you file for Chapter 7. The list goes as follows-

                • Automobiles up to a specific value, the value varies from state to state but certainly does not allow for a luxury vehicle though
                • Clothing, which is extremely essential
                • Reasonable household stuff
                • Household appliances
                • Jewelry up to a specific value
                • Personal assets
                • Wedding ring
                • Proceeds or cash value or any loan value of life insurance up to a certain value
                • Pensions
                • A portion of the equity in your home
                • Tools required for job/profession or business up to a specified value
                • Part of unpaid yet earned wages
                • Public benefits which blanked social security, unemployment comp, etc.

                After assessing the stuff, you can save, let’s list the assets, which fall under the category of non-exempt assets. These assets under most circumstances will have to liquidated to pay off the arrears. In order to resist the sell-off of these assets, one has to pay the debt in full. Non-exempt assets can be listed as follows-

                • Musical instruments, which are expensive in nature. This can be exempted for professional musicians.
                • Collections of coin, stamps, or others with significant value
                • Investments like stock, bonds, and liquid assets like cash, bank accounts, etc.
                • A second car or an automobile as only one automobile is exempt and the second one will be attached for liquidation
                • Second home or vacation home if any will be attached too

                Will your case be an asset case or a non-asset case?

                The understanding of an asset or non-asset case is very simple. If your case involves liquidation of an asset, then it is regarded as the asset case. If your case does not have any non-exempt assets and the bankruptcy trustee has no assets to sell to recover the debt, then it is regarded as a no-asset case. It is happy to note that more than 80% of Chapter 7 cases are no-asset cases. This is primarily because most people would have already turned in all their non-essential assets before applying for bankruptcy to repay as much as they can.

                Under certain circumstances, applying for Chapter 7 bankruptcy and losing a lesser value asset for a significant rebate in total debt owed. For instance, if you own an asset worth $30,000 and owe $50,000 towards child support and alimony and $40,000 towards a credit card bill. The asset worth $30,000 will reduce your debt towards child support and alimony to $20,000 and release your credit card debt completely provided you do not have any other non-exempt asset.

                What about your cosigned debt?

                A cosigner acts as a guarantor who is liable to pay off debts if the debtor fails to repay or defaults. Applying for bankruptcy can create a troublesome circumstance for the cosigner. The cosigner remains liable for the whole debt even after you file for Chapter 7 bankruptcy. The credit score of the cosigner also is affected if the debtor defaults or applies for a Chapter 7 bankruptcy Dallas. Basically, the liability has shifted from the debtor to the cosigner in the event of Chapter 7, which is not a desirable scenario for sure. To know more about the tricky aspects of bankruptcy, cosigner, Chapters, etc., from the experienced, qualified professionals dial 888-297-6203 right now!


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

                  *Do you own a home?

                  Are you currently working?

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

                • How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

                  How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

                  Attorney fees are one of the important considerations when filing bankruptcy because it has to be paid 100% and any type of expense during bankruptcy could be burdening. Establishing a relativeness between what you had expected from an attorney on a price bracket helps you determine and adjust your attorney needs. To learn more about bankruptcy, attorneys and law log on to Recovery Law Group.

                  How does the attorney fees vary based on location?

                  It is obvious to see a difference in pricing based on location. For instance, an attorney in California will be far more expensive than an attorney in Dallas. The cost of living and the overall expense of the city plays an important role in attorney pricing. Apart from this, there might be the availability of skilled attorneys in abundance in some areas like New York, New Jersey, for instance, however, there might be a lack of attorneys in a small town like Galveston. That too influences attorney pricing. The average range is between $1,200 to $2,500. If you are lucky you might find a decent attorney for $700 also if your case is pretty straightforward and isn’t a mind boggler. Cases that are tricky and require ways to protect your assets can increase attorney fees.

                  Bankruptcy court interference on attorney fees

                  There is a phrase called presumptively reasonable or no-look fee. Since the case is related to bankruptcy, this is a way how bankruptcy court makes sure the bankruptcy filers are not exploited with high attorney fees. It is usually not a cap or a threshold of fees, but the bankruptcy court will look into the fees charged by the attorney if it is beyond the presumptively reasonable fee to determine the reason for it. If the bankruptcy court is not satisfied with the reasoning, it can ask the attorney to refund a part of the fees to the bankruptcy trustee, who will use the same for settling the debts.

                  Such investigation or look in by the bankruptcy court is more often seen for filers filing for Chapter 13 bankruptcy. Also, the bankruptcy court can look into the fees even if it is presumptively reasonable. If the case is tricky, the attorneys can charge higher than the presumptively reasonable but will need to convince the court with regards to the same. A set procedure based on the court has to be followed to justify the high fees.

                  Low fees advertisements, trap or deal?

                  A lot of advertisements on social media as well as outside through banners and hoardings are visible for low-cost attorneys. Are these traps or an unmissable deal? Under most circumstances, these advertisements are deceptive. The advertisement may state ‘starting from’ in small letters under the low-cost banner. These attorneys usually use an a-la-carte system of service, wherein they keep increasing the amount based on requirement and it ends up higher than a normal attorney would charge. Many attorneys are seen to follow this kind of fee system especially around Los Angeles, Dallas, etc.

                  On the other side, there are a few attorneys who provide services at the price promised in the advertisement. It is about collecting reviews, feedback, and testimony from different sources before opting for one. Advertisement solely should not be a decision influencer.

                  Attorney fees do not necessarily correlate to their qualifications

                  It is a basic tendency to interpret high fees with higher experience and qualifications. It might not be the case with respect to bankruptcy attorneys. Different attorneys follow different ways of pricing. While some charge a small fee or offer a free initial consultation. Considering these attorneys to get some legal advice as well analyze the prospects of the attorney for your case can be an ideal option.

                  The other option to get hold of an excellent attorney is through referral. Based on prior experiences if you seek any referral of an attorney from your friends, family members or relatives, it can just prove a lot easier. The approach to identifying a good doctor is what you need to identify a good doctor. While one is important for health, the other one is important for wealth.

                  Roles and responsibilities of an attorney

                  A bankruptcy trustee has to follow a procedure and put forward the best solution to offer a beneficial and legally correct position for the filer. The blueprint of the attorney process could be listed as follows-

                  1. Analyze the right chapter to file – The attorney shall analyze which is the right chapter to file. He can ask the following questions to suggest the best option-
                  • Marital status and number of dependents
                  • Income and work location
                  • History of living, if you have relocated in the recent 2 years
                  • Have you filed your state and federal income taxes in the recent 4 years?
                  • Have you filed for bankruptcy in the last 8 years?
                  1. The urgency of the bankruptcy – Sometimes, time is the most vital aspect of filing bankruptcy. If your basic needs are being impacted and you need to determine the best alternative and probably file for bankruptcy right away. Below are some questions attorney may use to make or suggest a wise option-
                  • Affected by a lawsuit?
                  • Are you facing any foreclosure, especially home mortgage foreclosure?
                  • Are you seeing wage garnishment?
                  • Has any lender or creditor withdrawn any money from your account?
                  • Concerned about potential vehicle possession by the lender or any other asset which is collateral?
                  • Any other pressing issue that needs to be addressed to the earliest?
                  1. Property status – The attorney would not know if your property is at risk unless and until you disclose your fears and property details. Under Chapter 7, more often than not, most filers are able to secure most of their properties. However, if you are about to lose some of your assets, the attorney can evaluate the net benefit out of debt release and compare it with the value of property lost and then help you make a wiser decision. Some of the questions that an attorney should ask to better assist can be listed as follows-
                  • Have you been injured in an accident in the recent 2 years?
                  • The money in all of your bank accounts
                  • Any stocks held, profit sharing investments, and/or retirement balances
                  • Do you have any anticipated inheritance in the near future?
                  • The fair market value of personal property like jewelry, vehicles, real estate, sports equipment, collections, etc.
                  1. Will bankruptcy set off the debts – This is an important question an attorney has to address especially when filing for bankruptcy under Chapter 7. There can be scenarios where you might not get any debt release because all the debts are non-releasable in nature. Still, filing bankruptcy can be a masterstroke under some circumstances. The attorney can also suggest you, alternatives to Chapter 7, if it isn’t proving to be that beneficial. For addressing this question, the attorney can puzzle you with the following questions-
                  • Do you have any unsecured debts like payday loans, credit card debts?
                  • Any tax payments which are due?
                  • Alimony or child support arrears?
                  • Any student loan liabilities?
                  • Mortgage and/or vehicle loan balances

                  Challenge analysis

                  After determining the best approach, the attorney shall analyze potential challenges in attaining the goal. The bankruptcy trustee might raise several objections and might also suspect possible fraud. The attorney has to proactively prepare himself or herself and his client for the prospective problems or challenges. From the process of initiating bankruptcy, paperwork, advocating the client in the bankruptcy court, offering legal/financial advice, etc., are some basic responsibilities of an attorney. To get the assistance of some of the best attorneys in your town just dial in +1 888-297-6203.


                    *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.

                  • How does a credit report react to Chapter 7?

                    How does a credit report react to Chapter 7?

                    Bankruptcy can have several benefits, like wiping off your debt, giving you a fresh start, helping you with all the financial mess, offering some breather to recollect your finances, etc. However, it does impact your credit score, which is interlinked to your loan taking ability in the future. In fact, as per some of the latest reports, it might take over 10 years of worthy credit trust to repair the damage caused by filing for bankruptcy once. To know more such facts and to keep up yourself with the most current bankruptcy related aspects, log on to.

                    What are the three most important things reported on my credit report?

                    The credit report hosts a lot of information which most individuals would not have predicted for. It is a metric that allows banks to make a thoughtful lending decision and hence, credit report might house some more than personal information as follows-

                    • Employers current, past and their locations
                    • Credit history and their payment history
                    • All other information is available on public records that may include tax liens, court cases, judgments, bankruptcy filings, etc.

                    Impact of bankruptcy on credit report based on Chapters

                    A missed payment or a delayed payment results in damage that can be rectified in 7 years. But bankruptcy damage can take close to 10 years for recovery of the damage caused. The impact of Chapter 7 and 13 on credit score can be seen below-

                    • A chapter 7 bankruptcy filed remains listed on the credit report for 10 years. It has to be removed after completion of 10 years since the bankruptcy was filed.
                    • Under Chapter 13 bankruptcy California, the penalty is similar to a missed or delayed payment which could last up to 7 years from the date bankruptcy was filed. This is more convenient as you would be extending only 2 years of the negative credit report if your bankruptcy payment plan lasts for 5 years.

                    Another factor to consider whether the impact of the credit score can be significant or not is your existing credit score. Some people with excellent credit score filing for bankruptcy might end up losing over 100 points. People with a lower credit score will also take the pondering but it will be slightly less daunting than the loss for the high credit score bankruptcy filers.

                    Credit report accuracy checks

                    It is a healthy practice to track the progress of your credit report with your financial transactions. Under most cases, the credit report tracks transactions accurately however, there are situations when credit report has seen faulty reporting. By making regular audits on credit report can keep you on track and informed about your credit score and the perception it is creating for the lenders and the financial institutions.


                      *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.

                    • Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

                      Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

                      When you file for bankruptcy to get rid of your debts, there are certain concerns regarding your assets, especially your house. According to lawyers of Dallas based bankruptcy law firm Recovery Law Group, you have the option of retaining your house, delaying foreclosure or letting the house go when you file for Chapter 7 bankruptcy. However, you can only keep your home in a liquidation bankruptcy if you are current on your mortgage payments and there isn’t significant equity in the home to pay creditors.

                      What happens to your home during bankruptcy depends a lot on various other circumstances. These are a few options:

                      1. The bankruptcy trustee can sell your home

                      Exemptions provided by state and federal government provide you certain equity to protect your primary residence as well as trailers, burial plot, etc. If there is not much equity left in the property to pay your unsecured creditors, the bankruptcy trustee won’t sell your home. In case the real estate sector has boomed, the non-exempt equity in your home might not be able to protect your house from going under the hammer.

                      Homestead exemption is used to protect a certain dollar amount (certain acres in some states) of equity in your primary residence. This amount varies from state to state and whether you are choosing state or federal set of exemptions (some states offer a choice between state and federal exemptions while others do not). An exemption cap exists in bankruptcy code which prevents debtors to switch to states which offer more homestead exemption in order to protect their assets. under this, you need to have owned the home continuously for a minimum of 40 months in a state to get entire equity amount exempted (as per the state’s rules).

                      To avail any state or federal bankruptcy homestead exemption, it is essential that you have been residing in that state for 730 days. If that is not the case, then you can apply for exemptions of the state you had been residing for a major portion of the 180 days prior to the 730-day period. To know more about exemption details, call 888-297-6023 to speak with expert bankruptcy lawyers.

                      You can keep your home if you are current on your mortgage payments when you file for bankruptcy and continue making mortgage payments during the bankruptcy process. However, for this to take place you need to be sure about the amount that your property is worth. From the fair market value of your home, you need to deduct your homestead exemption, the trustee’s commission, cost of sale, mortgage due on the property and all non-mortgage liens such as tax lien secured by the home. If the amount that remains is insignificant, then the trustee won’t sell your home. However, if the amount is substantial, then your home might be sold, and the money will be distributed among you (homestead exemption), the trustee, mortgage and lien holders, and the unsecured creditors.

                      1. You could lose your home to foreclosure

                      Alternately, even if bankruptcy trustee does not sell your home and you are behind mortgage payments, you could end up losing your home to foreclosure. Though Chapter 7 bankruptcy can provide temporary relief from foreclosure, it does not have provision to allow debtors to catch up on arrears. If you wish to protect your home, you could either:

                      • Consider Chapter 13 bankruptcy, where you could catch up on mortgage arrearage and protect your home;
                      • Negotiate with your lender to modify the loan or get it refinanced before filing for bankruptcy.


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

                        *Do you own a home?

                        Are you currently working?

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