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Category: Chapter 7 Bankruptcy

  • Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Chapter 7 is advocated as one of the best Chapters to release a good amount of debt with zero obligation after the bankruptcy process. However, this might not hold true under some scenarios. The filer might have to continue to pay out some of the debts during and after Chapter 7 bankruptcy. To assess if Chapter 7 could actually kill all your debts or not, it is best to analyze some of the debts, you may still be obliged for even after filing for Chapter 7 bankruptcy. For more information relating to bankruptcy and Chapter 7, log on to Recovery Law Group.

    1. Any debt that has been incurred after filing for bankruptcy

    Any form of expense, debt, or bills that have been incurred after the filing of a bankruptcy will still hold you liable for clearing the same. This is referred to as a post-petition debt in legal terms. Some of the common debts that could fall under this category can be listed as follows-

    • Child support or alimony
    • Utility bills, taxes, insurance payments
    • Rent or lease dues
    • HOA or condo fees

    Some of these expenses that have been incurred before the bankruptcy filing will also not be wiped off. Child support, alimony, and taxes debt will usually not be discharged and are only wiped off under rarest of rare circumstances. The debts which will be wiped off will again depend on the bankruptcy court’s judgment.

    1. Secured Debts

    Debts which have been secured by an asset or collateral is referred to as secured debts. These are debts which are usually of high dollar value. Some of the common examples of secured debts can be listed as follows-

    • Home mortgage or home equity line of credit
    • Car loan
    • Business property loan

    The discharge or release of these debts depends on whether you agree to surrender the collateral or security of the debt. If you intend to keep the asset, you might have to pay off the debt in full. You might still get part of your debt released if you prove to the court how essential the particular asset is and impacts income generation. If you decide to keep the asset and pay off the debts, you cannot afford to miss the payment then. During bankruptcy, the lender can pass a motion and exercise lien on the asset or can directly access the asset after the bankruptcy court has closed your bankruptcy case.

    1. A brief break for your non-dischargeable debts

    Some debts like student loans, taxes, government dues/penalties/fines, etc., can freeze when you file for bankruptcy. You get a brief respite from those dues till your bankruptcy case is in the progress with the bankruptcy court. However, this by any means does not make you less accountable or liable for all dues during the bankruptcy phase as well as before and after bankruptcy. It just gives you a breather to re-assess and get things together.

    Voluntary debt repayment

    There are scenarios when you had like to pay off some of the debts. This usually happens for debts owed from related people, medical practitioner, or a particular lender who has supported the most. To pay off debts, you might not be able to use any of the nonexempt assets that are to be liquidated for repayment to lenders under Chapter 7 Bankruptcy. The best approach to voluntary debt repayment would be to initiate such payments after the bankruptcy case is closed by the court. To know more such important and smart tips, call 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.

    • Chapter 7 Bankruptcy and Medical Debt

      Considering the rampant spread of diseases across the world, having health insurance is mandatory. However, despite the assurance of insurance, people still end up accumulating a huge amount of medical debt. Getting rid of the unsurmountable medical debt is a reason why many people file for bankruptcy. However, the fate of any debt during bankruptcy depends on which kind of debt it is, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group.

      Debts are classified broadly into four categories:

      • Secured debts

      If the creditor has a lien on your property, such as home or car, and can foreclose or repossess the said property in case of non-payment of dues, then, the debt is known as, secured debts. In this case, the property acts as collateral. Examples include car loan and mortgages.

      • Unsecured debts

      Any debt which is not secured, by a property is termed as unsecured debt.

      • Priority debts

      Priority debts are non-dischargeable, i.e. they are not wiped off during bankruptcy. These include domestic support (child support or alimony) and certain taxes owed to the government. Priority debts are also unsecured but cannot be discharged during bankruptcy.

      • Nonpriority unsecured debts

      These debts are generally the last to be paid in a Chapter 7 bankruptcy. Most of these debts, apart from a student loan, are discharged without repayment in bankruptcy. Example of such debts is credit card, medical debts, and unsecured personal loan.

      What happens to medical debt in Chapter 7 bankruptcy?

      Medical debts are nonpriority unsecured debts and treated accordingly. In the case of Chapter 7 bankruptcy Dallas, your bankruptcy trustee uses your non-exempt property to pay off your creditors. The payment is made first towards your secured debts, then your priority debts and finally towards nonpriority, unsecured debts. Any remaining unsecured debts are discharged in Chapter 7 bankruptcy. It is thus, the best option to get rid of a large amount of unsecured nonpriority debts. However, qualifying for Chapter 7 bankruptcy is difficult. You need to pass the disposable income means test, i.e. your income must be less than the average income of a household of similar strength in your state. This chapter of bankruptcy is not ideal for debtors who have a significant amount of non-exempt property as that will be sold off to repay your loans. It is therefore important to contact expert bankruptcy lawyers at 888-297-6023 to know whether Chapter 7 bankruptcy is ideal to get rid of medical debts in your case.


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

        *Do you own a home?

        Are you currently working?

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

      • Common Avoidable Mistakes for Chapter 7 Means Test

        Common Avoidable Mistakes for Chapter 7 Means Test

        A Means test is an eligibility test that is carried to assess the eligibility for Chapter 7 bankruptcy. However, means test is not one of the simplest tests to carry out, which creates possibilities of multiple errors. Some of them could be avoided and the eligibility for Chapter 7 can be made much easier. To learn more about Chapter 7, eligibility, alternatives, and best attorneys in your town to help you deal with this financial crisis, log on to Recovery Law Group . Some quite common avoidable errors can be listed as follows-

        Do you really need to take the Means test?

        It is important to first assess, whether doing all the calculation and adjustment for ‘means test’ is really worth or not. There are two situations wherein the means test becomes unnecessary. In the first scenario, your income is way below that state median and there is no need to go ahead with the means test as it automatically qualifies you for Chapter 7. The second scenario is when your income is too high and taking some standard expense deductions based on state rule book would not help. Under both scenarios, you would not want to make unnecessary calculations with respect to the means test as you either directly qualify or disqualify.

        Are you filing a business bankruptcy?

        In bankruptcy terms, there are two types one is business and the other is a consumer. Consumer bankruptcy refers to the loan taken for personal purposes and not intended to be used for business purposes. If you have a combination of loans which is business as well as personal, the percentage of loans will determine whether it is a consumer or a business bankruptcy. If the business loans exceed the personal loans by some margin, it can be referred to as a business bankruptcy. If the personal loans are higher or if the business loans are marginally higher than personal loans, it will be referred to as a consumer bankruptcy.

        It is essential to understand this distinction as there is no need for a ‘means or median’ test if it is a business bankruptcy. Many people do the ‘means test’ with their business transactions and struggle while that might not be required at all. Similarly, people with some business loan skip means test only to realize, they might be subject to it.

        Determining the household size

        Coming up with the household size for comparing state median or for calculating some of the expenses for ‘means test’ can be a challenge. It is not as easy as it looks. While some courts allow for all individuals in the household unless and until their income is accounted for and their part or full responsibility of the household members on the bankruptcy filer. On the other hand, some courts allow for a household count of people who are dependent on the bankruptcy filer financially. Arriving at the right household size can prove challenging sometimes. It is always a better approach to opt for a household count of people who are directly financially dependent on the filer.

        Income mismatch and duplication

        The income to be reported in the court with the bankruptcy filing application has to be used in the same capacity for the means test. People tend to use their recent monthly income instead of the average six months of income from the bankruptcy filed date. It can also happen that a married filing joint couple might end up including a spouse’s income even if the spouse isn’t filing for bankruptcy in his/her individual capacity. This can lead to an unnecessary hike in income. Similarly, accounting for double expenses when the spouse isn’t filing for bankruptcy is also not acceptable by the court.

        Child Support

        There can be scenarios that child support is paid out in the form of food items, clothing, and other essentials of the child. Since the child support is not being received as cash, it may not be reported as income. If you are a bankruptcy filer, paying for child support, it can be included as an expense.

        Mortgage payments and Standard Housing Deduction

        The common practice is to include both standard housing deduction and mortgage payment (as an adjustment in the following line). However, under Chapter 7, the assets might be liquidated. Hence, if you are giving away your home, you are not allowed to use mortgage payments in the expense column. You shall only be eligible for the standard housing deduction. The approach may vary based on courts and it is best to have a consultation with the attorney regarding this.

        Allowable and non-allowable deductions

        Determining what deductions are allowable and not allowable depend on different circumstances. It has often come to notice of people missing out on certain allowable deductions and opting for deductions which they aren’t eligible for. This can be best addressed by reaching out to an experienced bankruptcy attorney. The number is 888-297-6203. Don’t wait, dial in right now!

      • Chapter 7 bankruptcy: An Assessment of Cost and Debt Discharge

        Chapter 7 bankruptcy: An Assessment of Cost and Debt Discharge

        If there is too much debt piled up, the only option available might be to file for bankruptcy. Before filing for bankruptcy, it will be worthy to find out what could be an estimated cost and what would be some of the debts that you could get rid off by filing for bankruptcy versus by not filing. Most of the stats indicated below are availed from reader’s surveys. To know more statistical information and technical aspects of bankruptcy, log on to Recovery Law Group.

        Attorney fees

        Keeping everything aside, the most difficult and common question to answer is how much would an attorney charge for a Chapter 7 bankruptcy? The question is difficult to address because there are so many factors leading to the attorney fees. Most readers also ask if the attorney is really essential. Well, as per 95% of the bankruptcy filers think attorney just eased the process of bankruptcy for them. A good number of people as per survey offered a flat fee of under $1,500 to their attorneys, while some found attorneys who charged $700 and $2,500 based on the complexity of their situation. It would not be a bad start to set aside $1,500 as an estimate for attorney fees.

        Other Administrative costs

        A filing fee of approximately $335 is levied for bankruptcy filers. This fee can be waived off under rare circumstances when the filer’s income is low or negligible. Apart from this, the filer is required to attend two financial counseling courses. An estimated cost for this would be about $60 per course. This inches the total cost for filing bankruptcy to about $450 and thereabouts.

        What is the average release percentage for each debt?

        It can be very enlightening to note the average debt release percentage based on the category of debt. This gives a clear hint if you should opt for Chapter 7 or not. If you possess debt which has the highest percentage, you should opt for Chapter 7 if not you need to reconsider your options.

        Credit Card debt – As per stats in 98% of cases, such debt was fully discharged. While in 1% cases, the debt was partially released. There is a 1% chance that your credit card debt shall not be discharged. So, if your financial position is worst because of credit card debt, Chapter 7 is the best alternative to you.

        Medical bills – Stats confirm a full discharge in 95% of the cases, a partial discharge in 4% cases and no discharge in 1% cases. Just like credit card debts, medical debts are debts which can be discharged almost fully in most cases. A similar trend could be associated with business debts, utility payment arrears, and phone bills.

        Taxes – This is one of the debts which is usually not discharged or released. However, stats say in 35% cases, filers received a full discharge of tax debts. Also, 26% of filers got a partial waiver for the taxes. Overall, a total of 61% received some rebate in taxes due because of Chapter 7 bankruptcy filing.

        Student loans – Student loans and taxes are some non-dischargeable debts. These debts are released only when ‘undue hardship’ is proven. This is a scenario when an individual will not be able to pay the debt in the present and in the near future due to very poor financial condition. Good 9% of cases received a complete discharge of student loans, while 6% of the filers received a partial discharge.

        For releasing taxes debt and student loans, you will definitely need a very good attorney. It is not impossible, but it is very tough to get those loans released. A dial to 888-297-6203 might just help you find the right one.

        Home mortgage – A Home mortgage is a common worry, unlike credit card and medical bills, only about 68% were able to retain their homes after Chapter 7 bankruptcy California. Most people cite losing their home after Chapter 7, this stat just emphasizes the same issue. However, under most circumstances, if you have paid most of your home equity or are current with your home mortgage, saving your home can be easy.

        Automobile loan – The percentage for the automobile is slightly higher to 87% which is more than a relief. If you own a basic car which is not ultra-expensive or luxurious, it is possible to box it in the exempt asset category.

        Time factor – Chapter 7 is probably the fastest when it comes to wrapping up debt and leading you into a fresh financial zone. Good 90% of people got the process completed in less than 6 months, with 53% filers able to wrap it in under 3 months. Only 10% of cases took over 6 months. This makes Chapter 7 a great option if you want to wrap up this ugly chapter of your life to the earliest.


          *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.

        • When is Chapter 13 More Advantageous Than Chapter 7?

          When is Chapter 13 More Advantageous Than Chapter 7?

          The common tendency of bankruptcy filers is to believe that Chapter 7 is better than Chapter 13. Yes, Chapter 7 has many benefits, but it can outrightly not be regarded as the best alternative compared to Chapter 13. There are many scenarios when Chapter 13 can prove more advantageous than Chapter 7. Every bankruptcy chapter has some or the other benefits and flaws. To learn more about all the Chapters and their technicalities log on to Recovery Law Group. Some of the Chapter 13 benefits over Chapter 7 can be listed as follows-

          • When you are not eligible for Chapter 7

          If you fail to be eligible for Chapter 7, well the only option available could be Chapter 13. In that scenario, Chapter 13 is beneficial. In other words, it is easier to qualify for Chapter 13 than Chapter 7. There is a median test as well as a means test to be eligible for Chapter 13. The calculation can become slightly intriguing but the straightforward debt thresholds for Chapter 13 make it a lot easier to determine if you qualify for Chapter 13 or not.

          • Safeguarding your car and other important assets

          Even if you are eligible for Chapter 7 after undergoing the complicated calculations, applying through Chapter 13 might still be a better option. If you are running behind the payment schedules of your car mortgage, you get to keep your car as well accommodate the payment of the arrears in the proposed payment plan over the next three to five years.

          • Managing the priority and non-releasable debts

          If you have a larger portion of debts that cannot be released, Chapter 13 is the right option for you. Child support, alimony, tax debts, etc., are a few examples of non-releasable debts. If your debt constitutes of a good portion of these debts, then Chapter 13 is a very good option. You get sufficient time period of 3-5 years to pay off these non-releasable debts, while you end up without assets as well as liable to these non-releasable debts with Chapter 7 bankruptcy code Dallas.

          • Time is all that you need

          Sometimes, people come across a stage when nothing is working well for them and it is usually all about time. A relaxed phase of 2-3 months can put you back on track with your finances and help you pay off all your dues. This time is very difficult to get especially when you are falling behind several payments across lenders. If you have a steady flow of income and time is all you need to pay off your debts, Chapter 13 can help you close most your debts as well keep all your assets intact. This is possible due to a phenomenon called ‘automatic stay’ which is applied as soon as you apply for bankruptcy. Some salient features of ‘automatic stay’ can be listed as follows-

          1. The lender cannot garnish your wages, or withdraw your cheque, funds from the bank account or make such request to your bank
          2. The creditor cannot repossess your secured loan assets like a car or jewelry, or any other asset kept as collateral
          3. The lender cannot foreclose a home mortgage either
          4. The creditor cannot initiate any suit against you for defaulting payments

           

          • If your tally of a nonexempt asset includes an asset you had like to keep

          If you have a nonexempt asset which shall be liquidated during the course of Chapter 7 bankruptcy procedure, Chapter 13 becomes an obvious choice to safeguard your asset as none of the assets are repossessed or liquidated under the Chapter 13 bankruptcy.

          • To relieve you co-debtor

          If there is any guarantor for any of your debts, the co-signer or co-debtor can have all the possible troubles of recovery with Chapter 7 bankruptcy. The filer is safe, but the guarantor or co-debtor isn’t. The lenders will go after the guarantor to recover as much of dues as possible. This could be very disturbing for the co-debtor. With Chapter 13, there is no such hook on the co-debtor since you have proposed to payout most of the debts in the next 3-5 years.

          To know more about Chapter 13 and Chapter 7 technicalities, formalities, applying details and to discuss what is best in your case, call us now at 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.

          • FAQs Related to Chapter 7 Bankruptcy

            FAQs Related to Chapter 7 Bankruptcy

            Bankruptcy can be quite confusing. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, confirm that there are numerous questions that people have regarding bankruptcy process and discharge. You can ask expert bankruptcy lawyers at 888-297-6023 about issues related to various bankruptcy chapters. Here are some FAQs related to Chapter 7.

            What is Chapter 7 bankruptcy?

            Also known as “Liquidation Bankruptcy”, Chapter 7 bankruptcy is an ideal way to get a fresh start as it wipes off most types of debts. In this case, any non-exempt property that you have is liquidated by the bankruptcy trustee and the proceeds are used to pay your creditors. In most cases of Chapter 7 bankruptcy, the filers have very little non-exempt property, hence they end up keeping nearly all of it.

            Is it true that now it is harder to qualify for Chapter 7 bankruptcy?

            The bankruptcy laws were revamped by the Congress in 2005 which resulted in stricter norms for potential Chapter 7 bankruptcy filers. Earlier a Chapter 7 bankruptcy case was dismissed by the bankruptcy judge if the debtor had enough disposable income for a repayment plan as per Chapter 13. Now, specific criteria are used to determine if a debtor can afford a Chapter 13 repayment plan.
            For an individual to qualify for Chapter 7 bankruptcy they must be able to pass the means test. In this case, the debtor’s income is compared to the median income of the state for a household of a similar number of individuals. If debtor’s income is less than the median income, he/she qualifies for Chapter 7 bankruptcy. In case the income is above the state median, an account of the expenses and debt payments is seen to assess whether a repayment plan can be devised for Chapter 13 bankruptcy or not.

            Are all unsecured debts wiped off in Chapter 7 bankruptcy?

            Unsecured debts comprise of those debts which do not have any collateral attached with them, such as medical bills, credit card bills, personal loans, etc. Most unsecured debts are wiped out in Chapter7 bankruptcy. However, some unsecured debts like student loans, child and spousal support, tax debts due within previous 3 years, recent debt for any luxury items, and any debts arising due to fraud (writing a bad check, lying on credit application) are considered non-dischargeable. These debts remain even after bankruptcy.

            Can I keep my home in Chapter 7 bankruptcy if I am current on my mortgage?

            State and federal government provide exemptions for bankruptcy filers to protect some equity in the property. This allows them to get a fresh start. The homestead equity which allows exemption on equity on home to bankruptcy filers varies from state to state. If the homestead exemption covers all the equity in your home, you can keep your home in a Chapter 7 bankruptcy Los Angeles. However, you need to stay current on your mortgages to ensure your home remains with you.

            If I don’t own a home, do I have to give up other property while filing for Chapter 7 bankruptcy?

            Bankruptcy laws allow debtors to keep some amount of property, known as exempt property. This includes some equity in home, vehicle (up to a fixed value), clothing, furnishings, household appliances, personal effects, retirement funds, pensions, tools of the trade, etc. Many times, debtors end up keeping nearly all of their property when they file for bankruptcy.


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

              *Do you own a home?

              Are you currently working?

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

            • Basic Steps for Filing Chapter 7 Bankruptcy

              Basic Steps for Filing Chapter 7 Bankruptcy

              Filing for bankruptcy is a complex process and needs expert guidance to deal with the nuances. Call 888-297-6023 to discuss your case. Although you could file for bankruptcy without lawyer too, Dallas based bankruptcy law firm Recovery Law Group inform, it is not likely to end up with a discharge. The basic steps involved in Chapter 7 bankruptcy are:

              1. Analyzing your debt

              Before filing for bankruptcy, find out which debts will remain even after bankruptcy. These debts include student loan, child and spousal support and any recent tax debts. Any collateral pledged for debt is likely to be taken by a creditor if you fall behind on payments either when you file, during your bankruptcy case or after the case.

              1. Finding out exemptions

              Exemption laws (federal and state) allow debtors to keep some extent of the property. When you file for Chapter 7 bankruptcy, it is important to find out how much equity in the property you can keep. Household furnishings, a modest car, retirement accounts and some equity in the home are exemptions available to Chapter 7 bankruptcy filers.

              1. Checking eligibility

              Chapter 7 eligibility includes passing a means test. Your average gross income for the past six months must be less than the median income for a family of the same size in your state for you to qualify. In case the average income is above the median, your allowed expenses are deducted to find out if you can use Chapter 7 bankruptcy to get rid of your debts.

              1. Dealing with secured debts

              Secured debts like a car loan or house mortgages have collateral attached to them. If you wish to keep the property, you need to keep making payments to the creditor. However, when you file for bankruptcy you have the option to either redeem (pay the creditor the current value of the property as a lump sum amount); reaffirm (continue to make payments to the creditor as per agreement); or surrender the property. In case you remain current on your loan, an agreement can be reached with the creditor to keep your property.

              1. Dealing with bankruptcy forms

              Along with bankruptcy forms, you need to inform the court about your income, assets, expenses, debts and prior transactions, including any property transaction that took place 10 years prior to a bankruptcy filing in Dallas. You also need to provide a comprehensive list of your creditors, property exemptions and decide the course of action for your secured debts. You can file the papers by opting for emergency filing (file a few required forms) or filing all your forms including schedules together.

              1. Attending credit counseling course

              It is mandatory for people filing for bankruptcy to attend a credit counseling course and complete it prior to the filing of bankruptcy papers or shortly after that.

              1. Pay filing fee or request a waiver

              You need to pay fees for filing bankruptcy papers. If you can’t afford it, you could ask for installments, or a complete waiver. If you meet the criterion (household income less than 150% of federal poverty guidelines or insufficient income to pay installments) the judge can issue a waiver.

              1. Submit relevant documents

              You need to submit bank statements, tax returns, pay-check stubs, profit and loss statements mentioned in your bankruptcy papers to the bankruptcy trustee.

              1. Attend meeting

              You need to attend a creditors meeting with the trustee where you will be asked questions that you need to answer under oath.

              1. File objections

              In case you wish to eliminate some liens or dispute any creditor’s claim, you can address these matters before the matter closes. Courts might allow you to reopen a case if you forgot to take care of any lien.

              1. Handle secured debts

              You need to act on your secured debts as mentioned in your bankruptcy papers before the case closes.

              1. Finish debtor education course

              You need to complete the second course (debtor education course) after filing your bankruptcy papers before receiving a discharge. In case you are unable to do so, the case will be closed without a discharge.

              1. Get discharge

              A successful bankruptcy ends with the discharge of your qualified debts. You are no longer legally obliged to pay for those 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.

              • An Overview of Chapter 7 Bankruptcy Process

                An Overview of Chapter 7 Bankruptcy Process

                If you are looking to file for bankruptcy, Los Angeles based bankruptcy law firm Recovery Law Group, suggests Chapter 7 as one of the best ways to get rid of your debts, provided you are able to qualify for the same. A typical Chapter 7 bankruptcy process consists of six steps:

                1. You are required to complete a mandatory credit counseling course before you file your bankruptcy papers. This can be one either online or by phone.
                2. You need to fill your bankruptcy forms. These are available online. Along with the forms you are expected to provide a list of all your properties, your creditors, information regarding all financial transactions that took place over the past two years.
                3. Provide your bankruptcy trustee with a copy of the latest income tax return and any other relevant documents asked by the trustee.
                4. 30 days after filing the bankruptcy papers, a creditors’ meeting is scheduled which is mandatory to attend. The meeting is conducted by the trustee in a hearing room and is attended by the bankruptcy filer, their attorney, the trustee and possibly the creditors. You are required to provide an answer (under oath) to all questions asked by the trustee pertaining to your bankruptcy case.
                5. Within 60 days of the creditors’ meeting, you are required to attend a mandatory budget counseling (online or via phone) and inform the court (by filing a form) about the completion of the course also provides a certificate of completion from the counseling.
                6. You are not allowed to operate a business with inventory or give away or sell any property without your bankruptcy trustee’s permission until you get a written discharge of your debts by the court. Usually, this takes place around 60 to 75 days after creditors’ meeting. Usually, during this time frame, the creditors can, but rarely object to your getting rid of debts. In case you have any non-exempt property, the trustee makes arrangement for turning it over so that it can be used to pay your unsecured creditors. However, most Chapter 7 bankruptcy filers do not have non-exempt property.

                The Chapter 7 bankruptcy timeline is very short.

                Prior to filing papers Mandatory credit counseling
                Filing date File papers to start the bankruptcy process
                30 days after filing papers Creditors’ meeting
                Up to 60 days after creditors’ meeting Compulsory budget counseling
                60 days after creditors’ meeting Get written discharge of your debts from court

                 

                In case you are worried about your bankruptcy case, consult with expert bankruptcy lawyers 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.

                • Trustee’s Role in Chapter 7 Bankruptcy

                  Trustee’s Role in Chapter 7 Bankruptcy

                  Bankruptcy is a great way to get rid of a huge amount of debts. People can file under chapter 7 or chapter 13. When any individual files for bankruptcy under chapter 7, a trustee is appointed by the court to oversee the proceedings of the case. According to Los Angeles based bankruptcy law firm Recovery Law Group, the bankruptcy trustee has various responsibilities including evaluating paperwork, selling of non-exempt property, etc.

                  What does a trustee do?

                  The bankruptcy trustee is appointed by the court as an independent evaluator for the case. The trustee gets paid to examine your bankruptcy papers and gets a percentage of any assets sold during the process. This is an incentive to perform their duty carefully. They need to carefully assess the property of the bankruptcy filer including any that were transferred or sold prior to a bankruptcy filing. The trustee must be fair in their dealings towards the debtor. The main duties of a bankruptcy trustee in the case of chapter 7 include:

                  • Reviewing bankruptcy petition

                  When an individual files for bankruptcy, they are expected to provide personal and financial information including their property, income, debts and other financial details. You also need to provide information justifying your claims including tax return, pay stubs and any information about your assets. The trustee needs to verify the information with independent sources as well as from the financial documents you provided. Both figures should match for a bankruptcy petition to be approved.

                  • Examining the documents

                  A 341 meeting of creditors takes place after one month of filing bankruptcy papers. This is attended by the bankruptcy trustee, debtor, his/her attorney and the creditors. In case the creditors have any questions regarding any hidden assets they might ask during this meeting. The bankruptcy trustee conducts the hearing and asks questions pertaining to the information provided by you in your bankruptcy documents. All this takes place under oath; lying would mean perjury which might result in your case being dismissed without a discharge.

                  • Selling of non-exempt property

                  The bankruptcy trustee is also responsible for selling any non-exempt assets the proceeds of which are used to pay your creditors. Chapter 7 allows debtors to keep certain property like retirement accounts, household furnishings, clothing, etc. An individual can choose from federal or state bankruptcy exemptions.

                  • The debtor has non-exempt property–In case you have non-exempt property, it is sold, and the amount is distributed among creditors. You need to determine what happens to your property before filing for bankruptcy as you do not have automatic right to dismiss your case.
                  • The debtor has no non-exempt property–In case there is no non-exempt property, creditors are not paid anything, the case is reported as “no asset” case and all unsecured debts are discharged. If any disagreement arises on exemption status of any asset between debtor and trustee, the final decision is of a bankruptcy
                  • Reversing dubious transfer of property

                  The bankruptcy trustee can overturn any preferential transfers or improper sale of any asset made before bankruptcy filing. If you transferred property to a family member or friend or paid any creditor preferably over others, then such transactions are undone by the trustee. The money reversed is distributed among all creditors. In case a creditor did not create a proper lien on your property, this can also be reversed by the trustee, and the property can be sold free and clear of the lien.

                  If you are contemplating bankruptcy, call at 888-297-6023 to find out more about the process.


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                    *Do you own a home?

                    Are you currently working?

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                  • Chapter 7 Bankruptcy and Release of Debts

                    Chapter 7 Bankruptcy and Release of Debts

                    Filing bankruptcy under Chapter 7 is usually with an objective of getting away with all or most unsecured debts. While it is a fact that Chapter 7 bankruptcy can help in releasing most debts secured and unsecured debts. It is also a fact that certain type of debts or liabilities do prevail even after Chapter 7 bankruptcy Los Angeles. Credit card debts pay day loans, etc., are some common unsecured loans that could be released with Chapter 7 bankruptcy.

                    How does the release of debts work?

                    A release of debt basically relieves an individual from the liability to repay the debt. It also prevents the lender from making any attempts to recover the debt. The debt has to be written off once released and legally there is no liability for the bankruptcy filer towards the creditors. A lien which has not been voided by the bankruptcy court prevails even after filing a Chapter 7 bankruptcy. This lien can be put to exercise by the lender in order to recover his/her debts. For instance, if you have not been able to keep up on your car loan payments, the lender can exercise the lien and sell/acquire the car and release you of any debt in return. You can also sign an affirmation agreement with a promise to settle dues in a specific time period to retain the car.

                    How does the release of debt procedure work?

                    Normally, the release is availed automatically or as we say is applied once the case is closed by the bankruptcy court. The release debt usually occurs within 60 days or 2 months of the creditors meeting. Roughly it would take about 120 days or 4 months for the debts to be released from the day you file your bankruptcy application. There are two kinds of debts which a filer can occur, and both have different consequences. They can be listed as follows-

                    1. Pre-filing debts

                    Pre-filing debts as the name clearly suggest are debts that have been incurred before filing of bankruptcy. The court shall release all valid and qualified pre-filing debts for the bankruptcy filer after assessing and evaluating all the factors of consideration.

                    1. Post-filing debt

                    These are debts which have been incurred after the bankruptcy has been filed. Since the duration for the debts to get released from the filing day could be about 4 months, there is the possibility of some bills and expenses to rack up during this period. The bankruptcy filer is completely responsible for these expenses and the bankruptcy court shall not release any of such debts.

                    What are some of the common debts that are discharged?

                    There are few types of common debts that can be released under the Chapter 7 bankruptcy code. These can be listed as follows-

                    • Credit card dues
                    • Collection agency dues
                    • Medical bills
                    • Personal loans from family members, friends, and fellow employees/employers
                    • Utility bills pre-filing debts only
                    • Bounced or dishonored checks
                    • Repossessed deficiency balances
                    • Lease agreement dues
                    • Automobile accident claims unless until found guilty of drink and drive
                    • Business Debts
                    • Dues from civil court judgments
                    • Penalties for underpayment/nonpayment of federal/state taxes and federal/state taxes
                    • Social security overpayments
                    • Veteran assistance loans
                    • Attorney fees excluding child support and alimony fees

                    This is not an all-inclusive list. But it consists of the most commonly released debts. To learn more about other non-releasable debts, seek assistance about the release of debts, dial in +1 888-297-6203 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.