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Category: Debt Settlement

  • Getting Out of Debt is Easy

    Getting Out of Debt is Easy

    Call: 888-297-6203

    Unless you take control of your finances when they first start spiraling out of hand, you will find it very difficult to manage them later. Despite your best efforts, bankruptcy might be the only way you might be able to get rid of your debts. However, filing for bankruptcy is a decision that can be quite emotional as well as confusing. Since most of the legal jargon goes above your head, Dallas based bankruptcy law firm Recovery Law Group says that hiring a lawyer is the best way to deal with bankruptcy. If you have not yet consulted with a lawyer, you can call 888-297-6023 to discuss your case with experienced bankruptcy lawyers.

    The primary thing before going ahead with bankruptcy is to know what is involved in the procedure. When you file for bankruptcy, you are declaring to the court that you are in no position to pay your debts. The court-appointed trustee inspects your assets and liabilities to understand which debts can be discharged. Once the court is assured of your inability to pay your debts, you can declare bankruptcy. Filing for bankruptcy also puts a hold on foreclosure, repossession or wage garnishment as well as other collection actions of the creditors. However, it is important to realize that certain loans are not discharged in bankruptcy. These include:

    • Child support and alimony
    • Student loan debt
    • Government debts like fines, penalties, taxes
    • Any expensive item (car, jewelry, boat, ) purchased just a few days prior to a bankruptcy filing

    Despite putting an end to creditor actions including suing you, you might have to pay back some debts, depending on which chapter of bankruptcy you have filed under.

    Bankruptcy Chapters

    The most common bankruptcy chapters are:

    • Chapter 7 – The courts can sell all non-exempt property, in this case, to pay back your creditors. Any remaining debt (unsecured, nonpriority) is deleted. Though bankruptcy discharge is given within 3-6 months, the downside of this bankruptcy chapter is that you might end up losing your home (or the equity in it) as well as your car if it is not covered in the exemptions. Chapter 7 bankruptcy filing is available to those people who don’t have enough income to pay back their debts. This bankruptcy chapter remains on your credit report for a duration of 10 years.
    • Chapter 13 – This chapter involves repayment of your debts through a court-approved Over a period of 3-5 years, you end up paying some portion (or the entire amount) of your debt. You can protect your assets (home, car, etc.) and even pay previously due mortgage payments through the repayment plan. This bankruptcy stays on your credit report for 7 years.

    Apart from these two chapters, Chapter 11 is used for business bankruptcy filing, while Chapter 12 is for a bankruptcy filing by fisherman and farmers.

    What happens when you file for bankruptcy?

    Filing for bankruptcy is a tough and emotional decision which can have ramifications in various aspects of your life. For starters, bankruptcy information is public i.e. banks, business associates, potential employers, etc. can have a look at your bankruptcy details. Once you file for bankruptcy, you might find it difficult to get any loan, even after a bankruptcy discharge. Your credit score hits hard and you might have to strive hard to make amends after getting a bankruptcy discharge.

    Filing for bankruptcy also involves various costs. Apart from the attorney’s fees, you need to pay $310 in bankruptcy filing fees for a Chapter 13 case. The attorney might charge somewhere between $1,500-$6,000 for this bankruptcy chapter! In the case of Chapter 7, the filing fees is $335 and bankruptcy lawyer might charge $835-$3,835 for their services.

    Preparing for bankruptcy is important

    Once you have come to the realization that bankruptcy is the only way out for you to get rid of your debts, it is important that you are aware of the requirements of the process. Before filing for bankruptcy, you can look for other debt-relief options like debt settlement, debt consolidation or lowering of interest rate by the creditor. Cutting down on extra expenditures, taking up another job, etc. are some other ways how you could avoid bankruptcy.

    You could opt for financial coaching where an impartial perspective would be provided with respect to your financial situation. Organized financial paperwork might come in handy when you talk to a lawyer or a financial coach. Get all your debts organized and list every one of them including child support and student loans etc. Trusting professionals is extremely important if you wish to get rid of your debts. Seek the counsel of experienced bankruptcy attorneys Dallas to get your bankruptcy successfully discharged.

  • What are Some of the Biggest Mistakes People Make While Paying off Debt?

    What are Some of the Biggest Mistakes People Make While Paying off Debt?

    Nearly 50% of the population in the US is under debt. This can be attributed to lifestyle mistakes like not living on a budget, not creating any emergency and retirement funds, etc. To get out of debts, it is important to seek counseling and alter your lifestyle. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group confirm that this can be done by avoiding common mistakes usually made by people such as:

    • Not changing spending habits

    It is important to realize that your spending habits lead you to this condition. Unless you make changes, you will not be able to crawl out of the huge mountain of debt. To change your financial condition, you need to make some lifestyle changes such as reducing unnecessary expenditure, avoiding unnecessary use of credit card, etc.

    • Trying to reduce debt on your own

    Discussing finances is not always a comfortable subject. Hence, people often struggle with debts alone. If you are not comfortable discussing with friends or relatives, you can take help from experts like credit counseling agency. You will get an idea regarding your options like debt management, debt restructuring, bankruptcy, etc. This professional advice is free so you should make use of it.

    • Not completing or understanding the significance of the debt relief program

    Debt relief programs typically last for 3 to 5 years. Any individual going through bad financial phase need to understand that it will take time for the situation to improve. You need to be sure of the debt relief company that you have chosen. Credit unions or local lawyers’ offices are reliable. In case you need to consult with a bankruptcy attorney you can call 888-297-6023.

    • Not creating a budget

    Curtailing unnecessary expenses is important if you want to get out of debt. You should create a budget which takes care of your necessary expenses like food, housing, education, medical attention, etc. while also catering to debt repayment and retirement funds. If this means staying away from shopping, entertainment and eating out, so be it. Avoid credit cards, and make all payments in cash.

    • Reducing multiple debts simultaneously

    People having a number of debts are often at their wit’s end. Taking care that they pay a student loan, credit card bills, mortgage, etc. takes a toll without any result. You can be efficient by reducing all unnecessary expenses and creating a surplus account which is used to pay the card with a maximum interest rate, after taking care of secured debts. Eliminating cards this way will reduce your load.

    • Closing paid-off accounts

    Closing an account on which debt has been paid off is not advised. Credit scoring systems do not rely on how much money you owe but also how much credit is available. Despite having credit and not using it can improve your credit rating.

    • Not contributing to retirement funds

    Though reducing debt is important, it should not come at the cost of your retirement funds. You should save at least 5-10% of your income in retirement funds like 401(k) etc. This will help you then you are no longer able to earn. Moreover, money saved in retirement funds is not available to creditors during bankruptcy. Look for other ways to pay your debts.

    • Not keeping an emergency reserve

    Living in the present is a common phenomenon. However, you can never be sure when emergency strikes. Sudden medical expenses, loss of a job, car accident, etc. can throw your budget haywire. It is important to keep at least 5% of your income as an emergency fund. On average, your emergency fund should cover 3 months of expenses.

    • Not verifying credit report periodically

    Any debt entered or paid off is mentioned on your credit report, which is available free of cost from major credit reporting bureaus. It is important to check them on a regular basis for discrepancies. Inaccurate entries could damage your credit rating resulting in your inability to get further loan or credit.

    • Debts not prioritized

    People become accustomed to living with debts. Getting rid of them is not a priority. This could snowball into bankruptcy. It is important to consolidate your debts and make regular payments every month. Avoiding credit cards should be important if you want to reduce your debt.

    Living under constant fear of creditors is something which can easily be avoided by making a few changes in the way you think and live. Human beings are quite adaptable to circumstances if they so desire. Here are a few tips to help you stay out of debt:

    1. Live according to your budget.
    2. Avoid unnecessary and impulsive shopping.
    3. Pay cash and reduce credit card usage.
    4. Split cost when living with roomies.
    5. Reduce expenses and sell off anything you don’t need.
    6. Find alternative earning sources.
    7. Get professional help.


      *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.

    • Embezzlement Debts During Bankruptcy

      Embezzlement Debts During Bankruptcy

      Embezzlement refers to liability occurring from criminal, fraud, litigation and other malpractice. The jury or court usually orders an individual to pay fines or compensation or penalty based on the crime or law/code violation. This kind of debt is referred to as embezzlement debt. The common doubt or question people have is; Will the embezzlement debt be discharged during bankruptcy? It is important to learn that the type of debts held by the person filing bankruptcy is usually arranged on the basis of priority to determine the discharge or release ability. In the array or order, the embezzlement dues fall under the most prioritized debt since it is usually an order of jury which cannot be compromised. However, the type of embezzlement and the course adopted by the lender may still determine the release of embezzlement debts.

      Criminal fines and civil body orders

      Any type of debt arising from criminal activities like fraud, or any other such malpractice is regarded as ‘non-releasable debt’. This kind of debt cannot be released and should be paid off as first priority above secured and unsecured loans. There is practically 1% chance of getting criminal fines released by the bankruptcy law code. Learn more about such facts and bankruptcy on Recovery Law Group.

      In case of civil body orders or judgments, the lender or the person who is expecting compensation from the bankruptcy filer has to proactively present a case for non-release of his/her debts. The lender has to request the court to categorize his/her debt as non-releasable debt by presenting facts and evidence confirming the same. If the lender fails to do so or does not approach the bankruptcy court proactively, the bankruptcy court might release such a debt prioritizing other debts. Civil debt is referred to as an act of fraud or misrepresentation in the capacity of fiduciary. Unlike civil dues, criminal fines need not be proven as non-releasable debts in the court and the lender need not make proactive attempts to confirm the same.

      What the lender will do?
      In order to retrieve the civil dues, the lender usually files a lawsuit which is referred to as ‘adversary proceedings’. This has to be filed in the span of 60 days from the first date of lenders meeting in the bankruptcy case. The meeting of lenders during the bankruptcy case in the court is a mandatory meeting, which usually happens in the first or second hearing. This meeting usually happens in about 30 days after the bankruptcy filing. This means a lender would have about 3 months or 90 days to file for an ‘adversary proceeding’ once the debtor has filed for bankruptcy. It is important to note that if the lender does not file within this period, the right of lender is void and it is up to the discretion of the bankruptcy court to release or not release the civil fines/compensations.

      Points to be noted
      Three important points to be proved by the lender in order to categorize a debt as fraud or from embezzlement can be listed as follows-
      • The bankruptcy filer or debtor held the property for another property
      • The property was used for unauthorized purposes
      • The circumstances, evidence, and facts suggest an act of fraud

      Once these three points are proved by the lender, the debt cannot be released under the bankruptcy norms. Also, once the debt has been declared as non-releasable by the bankruptcy court, it remains so for any future bankruptcy filings also. This means such debt could never be released no matter what. Every situation of bankruptcy is different. Personalized and professional services desired can be availed by dialing +1 888-297-6203. Dial now for interpreting your situation better!


        *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.

      • Family Member Debts and Bankruptcy

        Family Member Debts and Bankruptcy

        There are several reasons for taking a loan from family members. Just before bankruptcy or during bankruptcy its quite common to have some loans from relatives, parents, siblings and other family members. The debts have piled up big time and before you file for bankruptcy is there something that you can do with your family member debts? The process of bankruptcy makes you list all your creditors/lenders so that may also include your friends, family members and all lenders irrespective of the debt type. Under chapter 7, if you do not have any non-exempt assets, your lenders might not get anything. The debt hence is written off or eventually settled at a nominal payment.

        The Chapter 13 payment plan will focus on prioritizing debts under the Bankruptcy code or rule. Your family members may or may not receive part or any repayment for their debts. In most situations, the unsecured credit is released as 99% of the payment plans do not cover 100% of the debts. To know more about Chapter 13 and Chapter 7 differences, check Recovery Law Group now.

        Repayment of debt, problems, and concerns

        The debt of family members and friends could be repaid after the bankruptcy situation also. But, the biggest hindrance to that could be potential taxes. Since, the debt is officially done, regarded as bad debt, repayment would be recorded as a gift. This could result in gift tax or some other legal reporting requirement. An individual can gift $14,000 per year an additional cover of $ 5.34 million which can be exhausted over the lifetime. One cannot simply manufacture loans from parents divert money to parents or family members. There is a need for proper documentation and paperwork before listing a person as a creditor before the bankruptcy court.

        When you decide to pay off your family debts before declaring bankruptcy, you are not off the hook either. This looks like an attractive option as you might end up paying nothing to your family members and friends during the bankruptcy process. However, this not a great option either. The law and court consider all creditors equally and it focuses on treating all creditors fairly. The bankruptcy trustee tracks all your financial transactions for ‘preferential transfer period’. The preferential transfer period is a bankruptcy term which is a period of 90 days before declaring bankruptcy. The bankruptcy trustee has the right to propose a reversal of any suspicious transaction of over $600 to a particular creditor. This rule prevents a borrower to transfer the debt to one or few debtors.

        Exceptions in the preferential transfer period and repayment options

        There is also an ‘insider’ term in the bankruptcy procedure. The term ‘insider’ is referring to business associates, immediate family members, friends, etc. The preferential transfer period for such people is one year. The court can claw back any loan repayment of say $10,000 8 months back, that you made to your parents for the bankruptcy procedure. Repaying any creditor or a family member just before bankruptcy is not a crime or an illegal activity. However, they won’t be able to hold that money for long once the bankruptcy procedure begins. Any sort of hidden transactions that include the transfer of assets/properties is illegal and that could certainly block any sort of release of debt whatsoever.

        Paying back your relatives, family members and friends can work only in the case of Chapter 7 bankruptcy procedure. The debtor in this scenario loses all his non-exempt assets. Also, the money earned after the bankruptcy process is completed under Chapter 7 is not under scanner as it is in the case of Chapter 13. So, paying off family debt after bankruptcy becomes a great option if Chapter 7 bankruptcy has been applied for. It is quite obvious to have loans from family members before declaring bankruptcy and everyone wants to payout their family first before all creditors. We can provide professional help to solve your bankruptcy woes legally. Just call +1 (888) 297 6203 to address all your questions and concerns.


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

          *Do you own a home?

          Are you currently working?

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

        • What are the Debt Settlement Solutions Available to Residents of Los Angeles?

          What are the Debt Settlement Solutions Available to Residents of Los Angeles?

          Many times people find it difficult to make ends meet. The requirements keep on piling and money often falls short. This invariably leads to people in need of credit cards, which charge through the roof. The financial stress due to unpaid bills and accumulated debt can be quite frustrating. However, a solution in the form of bankruptcy is available. If you wish to avoid foreclosure and get your life back on track, you need to consult Los Angeles based bankruptcy attorneys of the law firm Recovery Law Group.

          What to Look for When Hiring Bankruptcy Lawyers?

          Taking new loans to pay off old ones does not get you out of the financial mess. You need to consult expert bankruptcy lawyers to help you come out of the financial mess. These lawyers are experienced and have in-depth knowledge about the various chapters of bankruptcy and can help provide you with a customized solution to your problems. They will help select the best course of action from debt settlement, refinancing, litigation and consolidation apart from bankruptcy so that you can protect maximum assets and have to pay minimum debts. While looking for bankruptcy lawyers, it is important that the legal aspects are handled by experienced and in-house counsel and not by any unqualified agency or debt settlement company. Seeking counsel on time can help prevent wage garnishment, bank levies, foreclosure, etc.


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

            *Do you own a home?

            Are you currently working?

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

          • Bankruptcy is a Powerful Tool for Debtors

            Bankruptcy is a Powerful Tool for Debtors

            If you’re dealing with extreme debt troubles, submitting for financial ruin can be a powerful remedy. It stops maximum collection moves, inclusive of telephone calls, salary garnishments, and complaints (with a few exceptions). It additionally eliminates many kinds of debt, together with credit score card balances, clinical bills, personal loans, and more.

            However it doesn’t stop all creditors, and it doesn’t wipe out all obligations. as an example, you’ll still need to pay your pupil loans (except you could show a hardship) and arrearages for child support, alimony, and maximum tax debts. examine on to examine more about the matters that financial ruin can and can’t do.

            What Bankruptcy Can Do

            Bankruptcy lets in people struggling with debt to wipe out sure obligations and get a fresh begin. the 2 primary financial ruin kinds filed—chapter 7 and bankruptcy 13 financial disaster—each provides different blessings, and, in some cases, treat debt and property otherwise, too. You’ll pick out the chapter that’s right for you relying on your income, belongings, and dreams.

            Here are some of the things you can expect bankruptcy to do.

            Stop Creditor Harassment and Collection Activities

            After you document, the court places in place an order known as the automatic life. The live stops maximum creditor calls, salary garnishments, and lawsuits, however now not all. for example, lenders can nonetheless acquire support bills and crook instances will continue to continue ahead.

            Stop a Foreclosure, Repossession, or Eviction (at Least Temporarily)

            The automatic stay will stop all of these actions as long as they’re still pending.

            Evictions. An eviction that’s nonetheless inside the litigation method will come to a halt after a financial ruin filing. but the stay will possibly be temporary. remember the fact that if your landlord already has an eviction judgment towards you, a bankruptcy won’t assist in most people of states. (research greater in Evictions and the automatic stay in financial disaster.)

            Foreclosure and repossession. Even though the automatic stay will prevent a foreclosure or repossession, filing for bankruptcy 7 gained assist you to hold the belongings. If you may carry the account current, you’ll lose the house or vehicle once the live lifts. by way of comparison, bankruptcy thirteen has a mechanism a good way to will let you trap up on past bills so you can preserve the asset. (See financial ruin’s automatic live and foreclosure and vehicle Repossession & bankruptcy.)

            Wipe Out Credit Card Debt and Most Other Nonpriority Unsecured Debts

            Financial ruin is very good at wiping out unsecured credit card debt (the debt is unsecured in case you didn’t promise to give lower back the bought property if you didn’t pay the invoice), medical payments, late application payments, personal loans, fitness center contracts. (when you have a secured credit card, together with from a jewelry, furnishings, or electronics shop, you’ll deliver the purchased item again.) In reality, submitting for bankruptcy can wipe out most nonpriority unsecured money owed other than college loans.

            How quickly your debt will get wiped out will depend on the chapter you file:

            Chapter 7 bankruptcy. This bankruptcy takes a mean of  3 to 4 months to complete. (study more on your Debt in chapter 7 financial ruin.)

            Chapter 13 bankruptcy. In case you file for chapter thirteen in preference to chapter 7, you’ll probably have to pay lower back some part of your unsecured money owed thru a 3- to the 5-yr compensation plan. however, any unsecured debt stability that remains after completing your compensation plan can be discharged. (See Your money owed in chapter 13 bankruptcy.)

            Wipe Out Secured Debt (But You’ll Have to Give Up the Purchased Property)

            If you couldn’t afford a charge that you secured with collateral—consisting of a mortgage or vehicle payment—you can wipe out the debt in bankruptcy. however, you received It be capable of hold the residence, automobile, pc, or different item securing price of the mortgage (extra underneath beneath “What bankruptcy Can’t Do”).

            What Only Chapter 13 Bankruptcy Can Do

            Chapter 7 and thirteen every provide particular solutions to debt problems. chapter 7 is in most cases for low-income filers, and consequently, it received help you hold assets if you’re at the back of on payments. but, if you have the income to pay at the least something to lenders, then you definitely be capable of taking benefit of the additional blessings offered by means of chapter thirteen.

            Here are some of the things that Chapter 13 can do.

            Stop a mortgage foreclosure. Submitting for chapter 13 bankruptcy will stop a foreclosure and force the lender to accept a plan that will let you make up the missed bills over time (you’ll additionally stay contemporary on your normal month-to-month bills). To make this plan paintings, you must be able to exhibit that you have enough income to aid the sort of repayment plan. (For greater data, see your house and loan in chapter thirteen bankruptcy.)

            Allow you to keep property that isn’t protected with a bankruptcy exemption. No person gives up the whole lot that they very own in bankruptcy. You’re allowed to protect (exempt) gadgets you’ll want to paintings and stay using financial disaster exemptions. A bankruptcy 7 debtor gives up nonexempt assets, however no longer a chapter thirteen filer. This doesn’t imply which you get to maintain extra belongings, but. You’ll want to pay the value of any nonexempt assets on your creditors on your reimbursement plan.

            “Cram down” secured debts when the debt balance is more than the value of the property that secures them. Chapter 13 has a procedure that lets in you to reduce a debt to the substitute price of the belongings securing it (however you’ll repay the debt in full thru your plan). for instance, in case you owe $10,000 on an automobile mortgage and the auto is really worth most effective $6,000, you could suggest a plan that will pay the creditor $6,000 and discharge the rest of the loan. however, exceptions exist. for instance, you can not cram down a vehicle debt if to procure the auto at some stage in the 30-month length before you filed for financial ruin. also, you received be capable of use the cramdown provision at the loan of your residential domestic. (To research extra about cramdowns, test out reducing Mortgages and Loans in bankruptcy 13 (Cramdowns).

            What Bankruptcy Can’t Do

            Bankruptcy doesn’t cure all debt problems. Here’s what it can’t do for you.

            Prevent a secured creditor from foreclosing or repossessing property you can’t afford.  A bankruptcy discharge gets rid of money owed, but it doesn’t take away liens. Alien permits the lender to take belongings, sell it at public sale, and practice the proceeds to a mortgage balance. The lien stays at the belongings until the debt gets paid. when you have a secured debt (a debt in which the creditor has a lien on your home), bankruptcy can cast off your obligation to pay the debt, however, it won’t take the lien off the property—the creditor will still be capable of getting better the collateral. as an instance, in case you report for chapter 7 financial ruin, you can wipe out a domestic mortgage; but, the lender’s lien will stay on the house. as long as the loan stays unpaid, the lender can foreclose on the house (as soon as the automatic live lifts, of course).

            Eliminate child support and alimony obligations.Infant help and alimony responsibilities continue to exist bankruptcy so that you’ll maintain to owe those debts incomplete, simply as if you had never filed for bankruptcy. And if you use chapter 13, you’ll have to pay this money owed in full via your plan.

            Eliminate student loans, except in very limited circumstances. Student loans can be discharged in financial ruin best if you could show that repaying the loan could purpose you “undue difficulty,” that’s a totally hard wellknown to fulfill. You have to show that you couldn’t have enough money to pay your loans presently and that there’s little or no chance you could accomplish that inside the destiny. (For details on the undue hassle popular, see scholar loan Debt in financial ruin.)

            Eliminate most tax debts. Removing tax debt in a financial disaster isn’t smooth, however, it’s once in a while possible for older unpaid tax money owed. (discover the requirements in casting off Tax money owed in financial ruin.)

            Eliminate other nondischargeable debts. the subsequent debts aren’t dischargeable under either chapter:

            • money owed you neglect to list on your financial disaster papers (except the creditor learns of your financial disaster case)
            • money owed for personal injury or death due to intoxicated using, and

            fines and penalties imposed as a punishment, including traffic tickets and crook restitution.

            – if you file for bankruptcy 7, this money owed will stay when your case is over. In bankruptcy thirteen, you’ll pay this money owed in full thru your reimbursement plan.

            Debt related to fraud might, or might not get eliminated. A fraud-related debt won’t be discharged if a creditor files a lawsuit (called an adversary proceeding) and convinces the judge that the debt ought to continue to exist your financial ruin. Such money owed is probably the end result of mendacity on a credit utility or passing off borrowed assets as your very own to use as collateral for a loan. (analyze more in what’s financial disaster Fraud?)


              *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.

            • Debt Settlement In Dallas : What You Need To Know

              Debt Settlement In Dallas : What You Need To Know

              Struggling with debt? Did you recognize that debt agreement is a choice? you might see ads on overdue night time television providing debt alleviation and debt reduction thru agreement. Debt settlement is an actual alternative for lowering the amount you owe and the interest rate you’re paying, however, beware of debt agreement fraud, and make certain you keep in mind that debt settlement involves letting debts fester in an effort to at some point settle them.

              Before we move into more detail, permit’s start at the start.

              Credit and Defaulting on Debt

              If you miss a price on your credit card, you’re in default on the debt. You’re legally obligated to pay what you owe and the creditor has the proper to collect. that means you’ll start getting smartphone calls and letters requiring a price.

              In case you nonetheless don’t pay, your creditor may freeze your account or assign it to a set enterprise. both the creditor or a collection organization may also pick to sue you for series. With a judgment in opposition to you, your creditor may garnish your wages, repossess your house, vicinity liens on your property, or levy your financial institution bills.

              This complete process takes time — in Dallas, a creditor ought to sue you for series and win, then get a particular court order earlier than you need to worry about garnishment or any of the alternative ugly collection options. court cases are slow and cumbersome, which means that that you have the threat to stop the manner before lenders take drastic measures.

              Dallas Debt Relief Options

              The first step to stopping ugly series movements is to attain out on your creditor. if you’re going to overlook a price, call and allow them to know. explain why you’ve fallen in the back of. They remember the fact that matters take place — contamination, herbal catastrophe, and layoffs, for instance — and could in many cases be willing to paintings with you.

              Your creditors need you to pay, however, they don’t need to go to court docket. It’s time-consuming and expensive. if you genuinely don’t pay without being aware, your creditor received have tons of an incentive that will help you out.

              While you communicate for your creditor, they’ll provide you numerous options. First, you may pay a lump sum as a settlement. You’ll pay much less than your full stability and they’ll bear in mind the debt paid in full. You do need to have cash on hand, but you will be capable of pay substantially much less than you owe. A lump sum settlement may additionally have to tax results — the difference between what you truly pay and what you owe may be considered earnings, in which case you’d need to pay tax on it. depending on the status of your account, the forgiven debt won’t be taken into consideration earnings but may be taken into consideration a sort of deal between you and the financial institution.

              When you have settled debt or are thinking about in search of debt settlement, communicate to an accountant approximately how excellent to categorize the transaction and the way it’ll affect your tax legal responsibility.

              In case you’re quick on coins or you can’t attain a settlement on a lump sum agreement, your creditor may additionally decrease your hobby price. With costs up to 30%, a decrease in hobby price can be a big help. Your debt received accrue as speedy, and retaining your minimum payment down might also let you get back on target. also, if you decide to settle your debt, it’ll possibly show up on your credit score record in a poor manner.

              Debt Settlement Companies: Beware of Fraud

              Whilst you’re struggling with debt and also you sense such as you’re out of options, you’re seeking out any way out. Debt agreement agencies are in a role to prey on this vulnerability and take benefit of borrowers. They’ll promise balance and fee reductions. They’ll provide to consolidate your debt into “one low month-to-month fee” and prevent lenders from taking your house.

              Alas, those promises are generally scams. They promise a debt-loose future, however it’s only a way to get you to pay their month-to-month price.

              Debt settlement organizations will generally suggest that clients forestall making month-to-month bills because lenders received decide energetic money owed. The plan is for the customer to save up rather than making bills and attempt to settle for a lump sum in a few months. alas for customers, lenders aren’t sure through that plan. they could decide to sue earlier than you’ve had a chance to save up. meaning you’ll face the price of a lawsuit and the ability results — if a creditor receives a judgment towards you, it is able to get a court order for wage garnishment, bank levies, belongings seizure, or a lien on your own home.

              Meanwhile, the debt agreement company will claim it’s far still within the technique of negotiating with the creditor, despite the fact that lenders don’t have to negotiate with debt agreement agencies and don’t need to prevent felony movement while you rent one. whilst your account is going similarly astray, the debt settlement organization may be accumulating hefty monthly fees at once from your financial institution account. no longer best do they rarely supply what they promise, they’ll sincerely depart you in a worse function than you were in while you started. You’ll lose the huge monthly fees they’ve been charging you and you’ll emerge as with a court judgment against you for the full quantity of your debt. That’s a lose-lose situation.

              A monthly price structure manner debt settlement businesses are inclined to draw out the technique. They get paid whether your agreement goes through or not. creditors can also act whether or not you’re involved with a debt settlement company or no longer, that means you may emerge as with a judgment in opposition to you for the full amount of your debt and a financial institution account emptied by way of the debt settlement agencies expenses.

              Debt Settlement in Dallas: What are my rights?

              In Dallas, debt agreement companies have to be licensed with the aid of the state. but, out-of-state businesses who are not a concern to Dallas law can still amplify offerings to Dallas residents through websites. if you feel you’ve been wronged with the aid of a debt agreement agency, touch a skilled attorney.

              If you live in Dallas and are suffering from money owed, reach out on your creditor. you will be able to create a fee plan or training session a agreement that works for you. If now not, there are many felony non-earnings organizations inside the state that allow you to along with your debt. touch one of those companies to find out about debt agreement either alone or with the help of an attorney. If that doesn’t work, either, you continue to have alternatives.

              Is bankruptcy an option?

              In case you’re suffering from debt, you’re searching out a manner out. you can not need to record for bankruptcy, and debt agreement groups provide a remarkable deal. They provide to take your debt away without destroying your credit rating. They’ll tell you which you most effective want to pay pennies at the dollar for your debt.

              In marketing, debt agreement corporations display happy families in their homes and cite federal laws and bailout deals, suggesting that creditors either need to settle debts or are required by means of regulation to do it. Debt agreement businesses paint a rosy put up-settlement photo, however purchasers almost in no way make it there.

              The majority are at the least a bit afraid of financial disaster. You worry approximately the credit effect and possibly a perceived social stigma. financial ruin, however, isn’t a punishment. It’s an honest, felony way to address out-of-manage debt. It’s additionally extraordinarily commonplace. almost 1 million human beings document for it every 12 months inside the U.S., with 20,000 of those instances alone coming from Los Angeles bankruptcy court.

              While you report for bankruptcy, you get the protection of the automated live, if you want to stop foreclosures, repossession, and criminal moves in opposition to you. most consumers can preserve their crucial property, which includes your automobile and your private home, and pay only pennies on the dollar — without scams.

              If you’re struggling with debt and would love to understand greater approximately debt agreement and bankruptcy, touch the skilled l. a. financial disaster lawyers of Borowitz & Clark nowadays.


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              • Debt Repayment in Chapter 13 Bankruptcy – How Much Amount is to be Repaid?

                Debt Repayment in Chapter 13 Bankruptcy – How Much Amount is to be Repaid?

                Individuals who have hit on bad times can file for bankruptcy under Chapter 7 or Chapter 13 (also known as the wage earner plan). The type of bankruptcy which is most appropriate for an individual is decided via bankruptcy means test. Chapter 13 allows debtors to retain some property and make payments over a span of 3-5 years towards their debts as part of a repayment plan. This type of bankruptcy can only be chosen when an individual has some amount of disposable income and can make regular payments as per the decided repayment plan. (more…)

              • Is There a Difference Between Bankruptcy & Debt Settlement?

                Is There a Difference Between Bankruptcy & Debt Settlement?

                A stroke of misfortune or sheer bad luck with monetary investments may result in severe financial problems for people. If you too are struggling through insoluble debts, you are faced with 2 choices as per Sacramento based law firm Recovery Law Group – filing for bankruptcy or opting for debt settlement. However, to become financially stable again, you need to choose between the 2 options available to you. Though many people are aware of bankruptcy, not much is known about debt settlement. It is important for debtors to understand the difference between the two, for them to choose the best option for themselves.

                What is Debt Settlement?

                An attorney or debt settlement company helps resolve a debt obligation in a debt settlement process. During the debt settlement process, negotiations are carried out with creditors with respect to getting discounts for the debtor when the latter has defaulted on making payments. Any unsecured debt including medical bills, credit card debts, etc. can be negotiated through this program, however, taxes, any government-backed loans or student loan debts are not eligible to be covered in this settlement. Any debtor who opts for this process should have a large sum of money to clear the settlement payment in a relatively short time frame. Through debt settlement, a debtor can protect all assets, get a quick resolution to their financial problems when the creditor accepts the debt settlement amount.

                Difference between Debt Settlement and Bankruptcy

                Debts incurred by any individual or organization can be classified as secured or unsecured. The most commonly used chapters of bankruptcy for consumers are Chapter 13 and Chapter 7. Through these chapters, consumers can reorganize their debts and pay off portions of their debt via a repayment plan or get a discharge on most of their debts respectively. However, certain loans such as tax debts, student loans, and some other secured debts cannot be discharged through bankruptcy.

                Which is a Better Option?

                Often people are confused between the 2 options available to get their debts discharged. However, it is found that between debt settlement and bankruptcy, the latter usually offers a better solution for most people. This can be attributed to the fact that:

                • Bankruptcy offers the filer a clean start with an option to rebuild their credit.
                • Dealing with creditors to get your debt discharged can be quite stressful and messy. Not only do you require to make lump-sum payments within a short frame of time. This is not the case with bankruptcy, as bankruptcy helps provide you a chance to rebuild your credit.
                • When you opt for debt settlement, you have to make some payment as per the negotiations, whereas in bankruptcy, your debts are cleared.
                • In the case of debt settlements, huge fee accompanies with the new monthly payment amount.
                • With bankruptcy, you get legal protection in the form of the automatic With this in play, creditors cannot file lawsuits against you, harass you by calling you at inappropriate hours or place or take away your wages, while the case is under progress.

                Since you are already in a financial mess, you shouldn’t make any decision regarding bankruptcy filing or debt settlement without consulting a bankruptcy lawyer. They are knowledgeable enough to guide you through the entire procedure.


                  *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.

                • Live the American Dream without any Debts

                  Live the American Dream without any Debts

                  The quintessential American dream has brought many people to the country where everyone has equal opportunity to make it big. Before economic recessions caused financial distress to numerous people, the American dream meant having a huge house, big car, access to a large number of credits to spend like the rich and famous. However, stagnation has caused many Americans to lose their jobs to business contractions, their homes to foreclosure and overspending to the credit crisis. This has caused disillusionment in many people leading them to question whether the American dream can be realized without incurring huge debts.

                  Many people have either filed for bankruptcy as a result of amassing huge amounts of debts or are contemplating it. However, it is important for people to realize that the American dream can be realized without running a large number of debts. As per Sacramento based lawyers of Recovery Law Group law firm, to enjoy a fresh financial start, it is important for debtors to understand that they should avoid acquiring any unnecessary debts and minimize whenever possible to live the proverbial American dream.

                  Tips for Debtors Emerging from Bankruptcy
                  • Post-bankruptcy, to live the American dream, you have to make efforts to create a fresh credit history. Good credit is not just about getting credit cards and loans. It is the difference in being employed or unemployed, living in a good or bad neighborhood. Credit reports are often looked by prospective employers before hiring anyone. Simply put, a debtor wishing to rent a house will need a good credit score to get one.
                  • Rebuilding credit value gives you access to a new credit line. However, it is important to realize that if you wish to live the American dream, you need to be careful about how you use your credit cards. Good credit can open avenues for good jobs, neighborhood and mortgage is and when you decide to purchase a home. On the other hand, bad mortgages can lead to mortgages which are harmful in the long run, leading to foreclosure and eventually bankruptcy. Avoid falling into the vicious cycle and keep your credit rating high.
                  • If you are educated about debt and money management, you will find that realizing your American dream is not too far away. Find out options to resolve any financial issues without incurring debt. If you have to take debt, find out the best interest rates that you can get with your credit ratings.


                    *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.