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  • Drawbacks of Chapter 7 Bankruptcy

    Drawbacks of Chapter 7 Bankruptcy

    Call: 888-297-6203

    When it comes to bankruptcy, most people prefer Chapter 7, as it lets you get rid of all your debts without losing any assets. Moreover, the discharge is also guaranteed within a relatively smaller time frame (3-6 months) compared to Chapter 13 bankruptcy (3-5 years). However, despite the numerous benefits associated with it, it is important to weigh in the losses due to this bankruptcy chapter before deciding to pursue it further. Los Angeles based bankruptcy law firm Recovery Law Group lawyers advise that being aware of the pros and cons is important to avoid disappointment later in life. According to them, the major drawbacks of this bankruptcy chapter are:

    1. You might end up losing some or all your non-exempt property which is liquidated to pay your unsecured creditors.
    2. There are certain loans that will survive the Chapter 7 bankruptcy. These include child support and alimony, student loan debt, certain taxes, etc. If these constitute the major chunk of your debts, your filing for bankruptcy and getting a discharge won’t be of much help.
    3. The biggest disadvantage of Chapter 7 bankruptcy is that it remains on your credit report for a duration of 10 years! This can be a huge disadvantage if you are looking for fresh credit like a mortgage or even a new job.

    Though the advantages of Chapter 7 bankruptcy may probably outweigh these points, it is important to be aware of what you are getting into. If you feel your financial situation will improve after filing for Chapter 7 bankruptcy Los Angeles, you should go ahead with it. An experienced bankruptcy lawyer can help make things clear for you. In case you need a consult with one, you can call 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.

    • Duties of a Bankruptcy Trustee in Chapter 7 Bankruptcy

      Duties of a Bankruptcy Trustee in Chapter 7 Bankruptcy

      Call: 888-297-6203

      Uncertainty is something people are not comfortable with. Being in financial distress and not knowing what to do can be extremely distressing for people. There are several ways to get rid of debt, bankruptcy often being the last resort. However, once you have decided the option, there are many other things to consider. The various facets of bankruptcy can be quite confusing, primarily being the numerous proceedings associated with bankruptcy. A bankruptcy trustee is appointed to oversee the accounts in case of bankruptcy chapters. According to Los Angeles based bankruptcy law firm Recovery Law Group, a bankruptcy trustee is an unbiased person who handles your bankruptcy case.

      Why is a trustee required?

      When you file for bankruptcy, any property you own becomes a part of the bankruptcy estate. This is a separate entity for you and thus needs to be handled separately. To take care of it, a separate individual is appointed by the court. Different chapters of bankruptcy require different duties from the bankruptcy trustee. In the case of Chapter 7 bankruptcy, the bankruptcy trustee is involved in the liquidation of assets and distribution of the proceedings to the creditors. Various duties of a bankruptcy trustee include:

      • Collecting of non-exempt property of the bankruptcy filer
      • Liquidation of the non-exempt assets
      • Distribution of the proceeds to the creditors
      • Challenge any claims made by creditors who object to your bankruptcy filing
      • Object to discharge of debts if certain debts are non-dischargeable

      The role of the bankruptcy trustee is, thus, an extremely important one. Since many of the proceedings are complicated, it is advisable to have an attorney by your side. You can call 888-297-6023 to speak with experienced bankruptcy lawyers Los Angeles regarding 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.

      • Passing the Means Test is Essential for Chapter 7 Bankruptcy Eligibility

        Passing the Means Test is Essential for Chapter 7 Bankruptcy Eligibility

        Call: 888-297-6203

        Filing for bankruptcy is a decision that takes time. Earlier, until 2005, the bankruptcy chapter was decided by the bankruptcy judge. If they found that the debtor was unable to repay the debts, then they could file for Chapter 7 bankruptcy and get a discharge of all their debts. However, if there was scope to repay debts, they were required to file for Chapter 13 bankruptcy. With streamlining of the process, things have become much easier to understand, say Los Angeles based bankruptcy law firm Recovery Law Group lawyers. People can convert their bankruptcy chapter (Chapter 7 to Chapter 13 and vice versa) in case they do not qualify for their chosen one.

        Chapter 7 bankruptcy is preferred because individuals can get all their unsecured debts discharged without losing much of their assets. However, with the change of rules, stringent measures have been included for qualifying for Chapter 7 bankruptcy. The income made by an individual over the past six months prior to a bankruptcy filing is compared with the state mean. This income includes wages, bonus, income from farm or business, monthly retirement, alimony or child support, rental income, disability or unemployment benefits, royalties, and interest earned. Except for SSA retirement funds and tax refunds, each and every earning source is considered. The income is then compared with the state median income. If your income is similar or below the state median, then you are eligible to file for Chapter 7 bankruptcy, however, if the income exceeds the state median, a means test will be performed.

        What happens in means test?

        In this test, you are expected to list your essential expenses. These include housing, food, and other necessary expenditures. Your disposable income, i.e. the income which remains after all essential expenditures are deducted from your total income, is calculated based on this. If the disposable income is high enough to work out a repayment plan, then your Chapter 7 bankruptcy Los Angeles case is dismissed, and you are expected to file for Chapter 13 in order to get rid of your debts.

        Though it may seem too complicated, with an experienced bankruptcy lawyer by your side can make things better. Call 888-297-6023 to discuss your options regarding 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.

        • Marriage and Bankruptcy: What Happens If A Person with Great Credit Marries Another Who is Fresh Out of Bankruptcy?

          Marriage and Bankruptcy: What Happens If A Person with Great Credit Marries Another Who is Fresh Out of Bankruptcy?

          Call: 888-297-6203

          Marriage is a big decision, something which should be taken after much deliberation. Since money is often the bone of contention in most marriages which might result in divorce, having money matters sorted prior to getting married is an excellent decision. Unforeseen circumstances can send anyone in financial distress. People who decide to get married to someone who is fresh out of bankruptcy, are often worried about the effect of this decision on their finances.

          According to Los Angeles based bankruptcy law firm Recovery Law Group, marriage is not going to join the individuals’ credit automatically. If both have their individual accounts without any joint account, they won’t have any shared credit history. Keeping credit histories separate for long after the marriage is, however, a difficult task to accomplish. For any big purchase like a house, you are required to apply jointly so that both names are on the mortgage. In this case, the income as well as credit history of both parties, are considered for evaluating the risk associated on the loan.

          If one of the partners has a bankruptcy on their credit report, getting new credit, such as that for a mortgage might be slightly difficult. Bankruptcy remains on credit report for a duration of 10 years in case of Chapter 7 bankruptcy and 7 years in case of Chapter 13 bankruptcy Los Angeles. Unforeseen circumstances leading to bankruptcy are manageable but overspending and money management issues will likely wreak havoc in your marriage.

          Sharing credit reports and being aware of the financial situation of both you and your partner provides you with an opportunity to manage the finances. Discussing things before marriage is advised as you can avoid several problems later. Professional assistance can be taken from bankruptcy lawyers by calling 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.

          • What to do If You Want to Get a Mortgage Loan After Bankruptcy?

            What to do If You Want to Get a Mortgage Loan After Bankruptcy?

            Call: 888-297-6203

            Though it is designed to relieve you of your debt issues, bankruptcy can cause huge problems for you too; especially when it comes to getting loans. When any individual files for bankruptcy, it becomes public record and appears on their credit report. This makes prospective lenders aware of the risk associated with lending money to you. Hence, you find very few creditors willing to give you the loan at rates and conditions which are acceptable to you. In case you wish to get a mortgage loan after going through Chapter 7 bankruptcy, you will find that things are not exactly favorable for you.

            According to Los Angeles based bankruptcy law firm Recovery Law Group lawyers, getting a loan at favorable terms is a bit difficult, especially after a bankruptcy. Despite getting a discharge for your loans, your credit report is not wiped clean. Since Chapter 7 bankruptcy involves no repayment of loans, this remains on your credit report for a duration of 10 years. Thus, if you wish to get credit at reasonable rates and fees, you need to make efforts to rebuild your credit. This takes time and effort on your part but with good payment history, you can qualify for mortgage loan too!

            Steps for rebuilding credit after bankruptcy

            People who file for bankruptcy have the option of choosing from Chapter 7 or Chapter 13 bankruptcy. They can also decide to reaffirm a loan when they choose to keep a car or home or credit accounts which they could have surrendered. Making continuous and timely payments on such accounts, after bankruptcy, can be a great way to rebuild your credit history. Other steps include:

            • Applying for secured credit cards with the bank. This option is a great choice for people who have no positive accounts open which can help re-establish credit. Using this type of card for making payments on essential items like utilities etc. and living within means can slowly improve your credit rating.
            • You could also ask a family member or friend to co-sign a loan or open a joint an account with you.

            With time and steady work, your credit score improves, allowing lenders to put faith in you. Sometimes, you might even qualify to get a mortgage loan at normal interest rate before the bankruptcy is removed from your credit history.

            When can you apply for a mortgage loan?

            An individual fresh out of bankruptcy discharge, applying for a mortgage loan will not get any offers, even at the high interest rate. However, with time, things can be better, especially if you have worked hard to improve your credit rating. A Chapter 7 bankruptcy remains on your credit history for 10 years while Chapter 13 bankruptcy Los Angeles for 7 years. If within that time frame, you have developed a positive credit and established yourself financially, then you can opt for a mortgage loan. Pre-qualifying for a mortgage is one thing and getting it at a reasonable rate is another. If you get a loan at favorable terms, you are in luck; in case you don’t, you can always wait for your bankruptcy to be removed from the credit report before reapplying.

            Bankruptcy does not need to be a huge problem, especially with experienced lawyers by your side. If you wish to seek expert opinion on your case, you can call 888-297-6023 to schedule an appointment.


              *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.