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Chapter 11 or Chapter 13: What is Best For a Small Business?
Small businesses, when comes under acute pressure of financial liabilities, do not have many options with them. Filing for bankruptcy can be the only option if you had like to revive your small business or wrap up the same. Chapter 7 bankruptcy will lead to winding up of the small business while Chapter 11 or Chapter 13 (if qualified) can help you in keeping the business running. To learn more about Chapter 7 and its benefits, log on to https://bankruptcy.staging.recoverylawgroup.com/.

How does Chapter 11 or Chapter 13 help?

The concept or logic used in Chapter 11 or Chapter 13 is similar. They deal with the restructuring of business/individual debt in order to make the payout more practical and feasible for all parties involved. Some key benefits of this concept can be listed as follows-
- Allows for business continuity by retaining most business assets
- Helps you buy time to settle the crisis, extremely beneficial if the business has been struck with some temporary obstacles
- Helps in arriving at a negotiated agreement with the secured lenders
- Helps in releasing some of the debts, especially non-priority unsecured debts that cannot be paid of during the length of the proposed repayment plan
Eligibility and benefits

In comparison, if eligible, Chapter 13 is always a better option. Most small business owners especially sole proprietors are eligible for Chapter 13 and opt it straight away even before evaluating Chapter 11. Chapter 13 is less expensive and less complicated compared to Chapter 11, which makes it a straight choice. Eligibility criterions for Chapter 13 are listed as follows-
- As discussed earlier any individual who has a sole proprietorship is eligible for Chapter 13.
- In certain cases, based on case to case scenarios, small enterprises below the debt threshold can be facilitated under Chapter 13.
- This, however, is completely in discretion of the bankruptcy court and is pretty rare.
- If you are a sole proprietor and have debts below the threshold, you would not have to worry about the rarest of rare scenarios.
Unlike Chapter 13, Chapter 11 does not have any eligibility criterion. Anyone can usually file under Chapter 11 for bankruptcy. Individuals, corporations, small businesses, partnerships, etc. There isn’t any debt threshold either. It is a sort of blanket bankruptcy chapter that is slightly more expensive and complicated than other alternatives.

Advantages of Chapter 11
- The first advantage of Chapter 11 is with respect to the modification in terms with the secured lenders. This negotiation and change in terms make it more likely for a business to retain its assets and function well in order to recover from the state of bankruptcy.
- The usual concept of discharge or release of debt occurs only when the payment plan has ended. The payment may vary as per disposable income in Chapter 13, which means if the income increases over the duration of payment’s plan, you might end up paying more and have fewer debts discharged or released. The debt in the case of Chapter 11 bankruptcy, is released with the start of the payment plan. Once, the payment plan has been approved, the unpayable debt as per the payment plan is released.
- The cost or commission towards a bankruptcy trustee can be saved when using Chapter 11. As per laws, bankruptcy trustee appointment is optional and is usually appointed only with respect fraudulent or mass mismanagement cases.
Advantages of Chapter 13
- Unlike Chapter 11, the tenure of repayment is limited to 5 years under Chapter 13. If the secured debts and disposable income fail to meet during the 5 years, a small business might have to lose some of its assets during the course Chapter 13 bankruptcy.
- The liability to turnover disposable income irrespective of the payment plan obligations, lower debt release percentages and compulsory appointment of a bankruptcy trustee are some disadvantages of Chapter 13. However, in spite of all these, the Chapter 13 bankruptcy Los Angeles process tends to be quicker and cheaper compared to Chapter
- The making and approval of payment plan is a lot of quicker compared to Chapter 11
To know more about eligibility, possibilities and best roundabouts for your small business organization, reach out to some of the vastly skilled and experienced attorneys@ 888-297-6203.
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August 9, 2019
Who is Not Eligible to File for Chapter 7 Bankruptcy?
A bad financial situation can affect anybody anytime. Bankruptcy is one of the most viable solutions to get out of huge financial debts. A person or company can file for bankruptcy under Chapter 7 or Chapter 13. Chapter 7 or liquidation bankruptcy is generally preferred as it takes comparatively less time and gets rid of unsecured debts. However, qualifying for Chapter 7 is one of the primary requirements to get a discharge. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, an individual filing for consumer bankruptcy needs to pass the means test, which requires you to have income less than an average household with a similar number of members. Disabled veterans or debtors whose debts arise mainly due to a business operation are exempted from the means test. There are other criteria to consider regarding eligibility for Chapter 7 bankruptcy. These include:

Your income

If your monthly income (average of the last six months) is less than the state median income, then you are eligible for Chapter 7 bankruptcy. If your income is more than the average income, you need to pass the means test. The bankruptcy trustee checks your disposable income to find out if you can repay your debts. Disposable income is calculated by deducting certain essential monthly expenses and required debt payments (secured and priority debts) from your total income. This disposable income is used to pay unsecured nonpriority debts such as credit card bills, personal loans, medical bills, etc. over a period of your repayment plan. Documents submitted while filing for bankruptcy include Schedule I where your income is mentioned and Schedule J which lists your expenses. These are used to calculate your disposable income. If there is enough disposable income, you can opt for Chapter 13 bankruptcy instead of Chapter 7.

Any previous bankruptcy discharges

There is a time limit to filing for bankruptcy and getting a discharge in Chapter 7 bankruptcy case. A Chapter 7 bankruptcy case discharge within 8 years or Chapter 13 bankruptcy case discharge within the previous 6 years you cannot get a discharge in Chapter 7. Additionally, if a previous Chapter 7 or Chapter 13 case was dismissed by the court in the past 6 months due to:
- your violation of a court order;
- your filing was an abuse of bankruptcy system;
- you asked for dismissal when a creditor sought relief from the automatic
Defrauding creditors

Your case might also be dismissed if you tried to cheat your creditors. Concealing assets so that you do not have to pay your creditors or transferring them to family or friends in order to prevent the non-exempt property from being liquidated, is considered fraud by the court. The court might dismiss your bankruptcy case if the trustee finds evidence of:
- a huge amount of debts for luxury items within a stipulated time frame of bankruptcy filing;
- selling of assets to relatives or friends at less than fair market rate;
- hiding money or property from your business partner;
- lying about your debts or income on your credit application.
Failure to disclose any pertinent information regarding your financial affairs or hiding assets to defraud your creditors might get your case dismissed. You might also be prosecuted for fraud.

Incorporated entity

In case the filer is a Corporation or LLC, they cannot get a discharge of their debts in a Chapter 7 bankruptcy case. In this case, the assets of the company are liquidated by the trustee and the fund so generated is distributed among the creditors. For further inquiry, call 888-297-6023 to speak with expert bankruptcy lawyers.
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
August 9, 2019
What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?
When you file for bankruptcy all your assets are divided into the exempt and non-exempt property. While you can keep your exempt property, the non-exempt property is used to pay back your creditors. In the case of Chapter 7 bankruptcy, the trustee liquidates your non-exempt property to repay unsecured debts. In Chapter 13 bankruptcy, you can keep non-exempt property too, but you need to pay an equivalent amount to your unsecured creditors. According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, funds in your checking account can be used to repay your creditors, or kept by the bank if you owe money to them (via credit cards) or can be exempted.

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

Can checking account funds be exempted?

If you can get an exemption on your checking account, you will be able to protect that money from being handed over to your creditors by the bankruptcy trustee. However, most states don’t offer an exemption for checking accounts or cash. Those that offer have very less limit. You could, however, use other exemption to protect this fund, like:
- personal property up to a certain dollar amount;
- cash on hand up to a certain dollar amount;
- Social Security and other federal benefits;
- your wages;
- pension and retirement funds;
- personal injury awards;
- child or spousal support;
- tenancy;
- wildcard exemption up to a certain dollar amount.
What if the checking accounts are partially exempted or worse, not exempted?

If the account funds are non-exempt or partially exempt when you file for bankruptcy, you will not be able to keep that money. Any non-exempt property is handed over to the bankruptcy trustee and used to pay your creditors. However, there are certain things you need to remember while dealing with checking accounts during bankruptcy.
1. Your accounts freeze. Banks freeze your accounts when they become aware of your bankruptcy. This is done to protect your creditors. You or your attorney could ask for a release of the freeze and the needful is done if the trustee agrees that you are entitled to the checking account funds.
2. Clear checks before filing for bankruptcy. If your checking account balance exceeds exempted amount (cheques didn’t clear) when you file for bankruptcy, the account could be freeze and funds regarded as non-exempt property. It is important to ensure that your cheques have cleared before you file for bankruptcy to avoid this situation.
3. Business bankruptcy. The trustee can call banks directly in this case, unlike an individual bankruptcy as in the latter case you just must pay an amount equivalent to non-exempt funds in an account.
4. Owing money to the bank. If you have a credit card and checking account of the same bank, your bank can use the money in the account to settle the credit card debt in case of Chapter 7 bankruptcy Los Angeles.
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August 8, 2019
Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?
Chapter 7 and Chapter 13 are the preferred routes taken by individuals filing for bankruptcy. Each has specific requirements that you must meet if you wish to get your debts discharged. According to Los Angeles based bankruptcy law firm Recovery Law Group , you need to be current on your payments and protect all home equity through bankruptcy exemptions in the case of Chapter 7. While in Chapter 13, you get a chance to catch up on missed mortgage payments through arrearage in the repayment plan.

Both state and federal government offer exemptions to protect your equity in the property when you file for bankruptcy. You might be able to choose between either of those options or make the best of the state exemptions. Before filing for bankruptcy, it is important to consult expert lawyers to know which chapter of bankruptcy will result in saving more property. Call 888-297-6023 to clear your doubts regarding exempt property and bankruptcy. The exemptions vary from state to state. In the case of chapter 7 bankruptcy, any non-exempt property will be sold, and the proceeds distributed among your creditors by the bankruptcy trustee. Chapter 13 bankruptcy allows you to keep your non-exempt property if you pay your creditors an amount equal to the amount of non-exempt property you are keeping. This proves to be costly and will not be approved unless you can show you have enough disposable income to repair creditors.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy allows you to get rid of unsecured debts relatively quickly. In most cases, people can protect their exempt property and have to let go home a small amount of non-exempt property. You can keep your home in this case of bankruptcy if:
- you are current on your mortgage payments;
- bankruptcy exemption protects your entire home equity;
- you can afford to make payments on the loan in the future
However, this chapter does not allow you to catch up on past due payments. In case you have a lot of equity in the house, it is difficult to protect it from being sold by the bankruptcy trustee to repay your creditors.

Chapter 13 Bankruptcy

This is a better option if you wish to keep your home when you have a lot of equity and have previous due payments to catch up on. Incidentally, it also helps in getting rid of second or third mortgages. This involves a repayment plan through which you can pay back your creditors over 3 to 5 years’ time frame. You could also ensure that a separate debt is added to the repayment plan which addresses your mortgage arrearage. You need to show that you have enough income to make regular mortgage payments along with your plan payments during bankruptcy.

Chapter 13 also prevents creditor to take any foreclosure action on the mortgage as long as you are making regular payments as per your repayment plan. Lien stripping helps you get rid of any junior lien on your home in case of Chapter 13 bankruptcy Los Angeles. This takes place only in case the property is now worth less than the balance of the primary loan. evidence pertaining to this if submitted bankruptcy court might make any junior lien void. Any debt owed to that creditor is treated as unsecured debt and is wiped out along with other similar debts at the end of your bankruptcy case.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
August 2, 2019
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?
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*Do you own a home?
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Are you currently working?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
July 26, 2019
Know about Texas Bankruptcy Exemptions
Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

Here’s a look at various Texas bankruptcy exemptions:
1. Texas homestead exemptions
The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.
1. Texas motor vehicle exemptions
The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.
1. Texas personal property exemptions
Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:
- Sports and athletic equipment including bicycles;
- Home furnishings including family heirlooms;
- Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
- Food and clothing;
- Up to 2 firearms;
- Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
- Health saving accounts;
- Health aids like walking sticks, wheelchairs, hearing aids, ;
- Burial plots;
- Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
1. Pension and retirement accounts
Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:
- ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
- County and district employee retirement and pension benefits.
- Firefighter pension and retirement benefits.
- Law enforcement officers, emergency medical personnel survivors’ benefit.
- Police officer retirement and pension benefits.
- Judges pension and retirement benefits.
- Municipal employees, state employees and elected officials’ retirement and pension benefits.
- Teacher retirement and pension benefits.
- Retirement benefits which end up being tax-deferred.
1. Insurance exemptions
These include:
- Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
- Texas employee uniform group insurance;
- Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
- Texas public school employees’ group insurance;
- Texas state college or university employee benefits.
However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for bankruptcy.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
July 19, 2019
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?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
July 18, 2019
Filed for Bankruptcy but don’t know where the Los Angeles Bankruptcy Courts are? This will help you.
Many times, people file for bankruptcy to avoid extreme financial issues, like excessive debt. However, many people are clueless regarding the procedure as well as the location of bankruptcy courts. If you are a resident of Los Angeles and are considering filing for bankruptcy but don’t have any idea where a court hearing or meeting of creditors will take place, you are in luck. Bankruptcy cases in Los Angeles are filed with U.S. bankruptcy court for the central district of California. The L.A. division takes care of entire Los Angeles County while other districts have separate courthouses. To find out where you need to go for your bankruptcy hearing, you can enter your ZIP code and find out your courthouse.

Proceedings in a bankruptcy court

Consumers can file for bankruptcy under chapter 7 or chapter 13. Bankruptcy proceedings, also known as a 341 (a) meeting, involves creditors and bankruptcy trustee, who oversees your bankruptcy estate to find out what property can be distributed to the creditors. This meeting takes place 6 weeks after filing for bankruptcy. You are required to submit your tax returns from the most recent years, at the meeting.

Filing for bankruptcy means you need to attend a creditors’ meeting in 30 days after filing your case. Generally, the meeting is simple, if all your papers are in order. The meeting is presided by your bank trustee, and often, unless there is an objection to any exemption, your case is set for a hearing before the judge. Many times, bankruptcy filers do not have to enter a courthouse, except for the creditors’meeting. It is important to note that during a courthouse visit, you should have proper identification papers. The courts function between 9 a.m. and 4 p.m. all through the week (Monday to Friday) except on federal holidays.

The bankruptcy lawyers of Los Angeles based firm Recovery Law Group suggest that having an experienced attorney by your side can definitely ease the burden of bankruptcy. They ensure that all your papers are in order so that you get a discharge (in the case of Chapter 7) or a repayment plan approved (Chapter 13) without any delay. Since the Central District of California is a part of the Ninth Circuit, which hears more cases compared to other federal circuits, it makes sense to hire lawyers to handle the legal work. In case you haven’t hired a bankruptcy lawyer for your case, you can call 888-297-6023 to discuss your case with bankruptcy lawyers.

Los Angeles metro region courthouses

There are 5 division courthouses in the Los Angeles metro region. Here are all the details about them, including how to reach there:
1. Los Angeles Division Courthouse serves the most of L.A. County and is located at Edward R. Roybal Federal Building and Courthouse, 255 E. Temple St., Room 940, Los Angeles, CA 90012. There is no public parking available at the courthouse but local parking near City of Los Angeles Public Parking Lot 2 (330 E. Temple St.), Also Parking Garage (101 N. Judge John Aiso St.) and Los Angeles Mall Public Parking (225 N. Los Angeles St.) is available. 341(a) meetings are generally held in Suite 1050 (10^th floor) at 915 Wilshire Blvd. which is merely 10 minutes’ drive from the courthouse.
2. Riverside Division Courthouse located at 3420 12^th Riverside, CA 92501, serves Riverside and San Bernardino counties. Local parking is available at 12^th Street Parking Structure (3535 12^th St.), Riverside County Administrative Center (4090 Lemon St.), apart from metered parking near the courthouse. The 341(a) meetings are located at 3801 University Ave. which is half-mile away from the courthouse. Chapter 7 and 13 meetings take place on the 1^st floor while that for Chapter 11 take place on the 7^th floor.
3. Santa Ana Division Courthouse serves the Orange County. It is located at the Ronald Reagan Federal Building and U.S. Courthouse, 411 W. Fourth St., Santa Ana, CA 92701. People can use public parking available at Third and Birch streets, Third Street and Broadway, and Fifth and Main streets; and metered parking available at Third, Fourth and Birch streets. The 341(a) meetings take place in the courthouse; Chapter 7 on the 3^rd floor and Chapter 11 and 13 on the 1^st
4. San Fernando Valley Division Courthouse is located at 21041 Burbank Blvd., Woodland Hills, CA 91367 and serves portions of Los Angeles and Ventura counties. Free parking is available on site. All 341(a) meetings for different bankruptcy chapters take place at the 1^st floor of the courthouse.
5. Northern Division Courthouse serves San Luis Obispo and Santa Barbara counties and portion of Ventura County. It is located at 1415 State St., Santa Barbara, CA 93101, where free parking is available on site. All 341(a) meetings take place on the 1^st floor at 128 E. Carrillo St. (nearly half-mile away).
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July 14, 2019
Different Ways of Supplementing Your Income
Los Angeles is one of the most expensive cities in America, where the cost of living is 43% more than the national average and cost of housing is more than Two times the national average. This has led many people residing here to live under debt or impatiently wait for their pay cheque every month. Many people are looking for alternatives to supplement their income. The gig of short-term work is on the rise. Selling your stuff on the internet to increase your income is a great way. Thanks to the internet, A lot of options are available for people to sell particular belongings either online or offline for cash.

Know Everything about Selling Stuff Online

Many online marketplaces are thriving thanks to the internet boom. In case you wish to sell stuff online, some of the popular options include:
- eBay — Here any object is sold at a fixed price auction to the highest bidder. The stuff that is mostly sold on eBay combines vintage merchandise, niche products, collectors’ items. It is important to remember that there are a number of fees associated with the site listing fees, final sale fees, Paypal processing fees, etc.
- Craigslist – IS a common choice for one-off sales. Listing and selling here are free where most sales are completed personally unlike eBay where the entire transaction takes place online.
- Facebook Marketplace – Here, You are selling to people you already know. FB Marketplace accounts are linked to Facebook profiles so you are aware of the identity of the buyer as well as a seller here, Unlike Craigslist where there is anonymity.
- Amazon – In case you have a number of the same type of products to sell, Amazon is a great option.
- Etsy – Etsy is the preferred listing and selling the place for all creative and crafty items.
Since first-timers often end up making some mistake while attempting to sell stuff online, it is important to be aware of tips which can help make more money.
1. Never ship product till payment is received. If you are selling stuff online, trusting the other party is important, However, Not at the cost of getting fooled or being cheated. Blind faith while selling the stuff will result in you being in for a monetary loss. It is important to see that the payment is credited before dispatching the stuff.
1. Keep margin for shipping costs. Shipping off stuff requires money. You need to be aware of how much money you will require to spend on shipping before actually putting a price on your stuff. U.S. Post Office postage cost calculator comes in handy in such cases.
1. Ensure personal safety. In case an online business deal is to be completed in person, It is important to ensure your personal safety. Choose a public place during normal business hours for the meet. In case a local police station offers SafeTrade Stations where online buyers and sellers can exchange goods and cash that is a better option. If you do not wish to share your address with strangers, You can always rent a P.O. Box from the local post office.
Everything about Selling Stuff Offline

In case you wish to sell your stuff directly without any additional charges like shipping costs, transaction fees and avoid any shady people you meet online, then offline selling options are also available. Offline sale options include:

Garage sale – If you wish to sell off stuff the traditional way, holding garage sale is an excellent option. All you need to do is find out the local rules to figure out the details and advertise about it. It is a great way to get rid of all your unwanted stuff.

Pawn shop – If you want instant cash for your stuff, pawn shops are your best bet as they pay you immediately. However, The price that they pay is generally below the market value of the item.

Consignment shops – Though they might appear similar to pawn shops, consignment shops are different. In this case, your property is under your ownership till it is sold. The proceeds are split with the shopkeeper once it is sold.

Trade-ins – People can use this way to sell off the automobile and similar stuff to reduce the price. Many businesses allow people to trade stuff (gaming consoles, old video games, smartphone, etc.) at a discount, in-store credit or cash.

Taxes are an integral part of your pay. When you work for an employer, Your employer cuts taxes at source, however, When you make any earning as an independent contractor or a freelancer or even by selling your stuff, every penny you earn is yours. It is important to remember that you do owe taxes in this case too. You need to assure that your income is set aside and provisions are made to cover the income tax bill as well as the self-employment tax. Though there probably won’t be any form listing available for the money you earned by selling your stuff, You are required to report the same to the government. Understanding what you had originally paid for the stuff can help as you can deduct that amount while paying income tax.

Though both online and offline selling methods are lucrative, it is important to make a decision regarding the best one for you. In case there is an urgent requirement for cash, then pawn shops or trade-in are a good option (Sometimes, Facebook Marketplace or Craigslist can also give quick results). In case, time is not short, then all options are open for you. If monetary problems are the reason why you are wishing to sell your stuff, then it is important to consult bankruptcy lawyers. They might find another way where you don’t have to sell your prized possessions and yet get out of trouble. Consulting with lawyers makes you aware of your options vis-à-vis bankruptcy and clearing debt problems without losing any property.
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
June 17, 2019
Possibility of Bankruptcy Relief – Marijuana Businesses?
It is widely known that California has expanded its legitimacy to the California Marijuana business. Hence the question pops up whether the Marijuana or other licensed cannabis businesses will enjoy equal/ same rights under federal law as in the case of other California businesses. That’s is the not case and reading through the below will explain in detail the background of these businesses and how they are restricted from declaring bankruptcy in their businesses.

Cannabis businesses and the California Law

Since 1996, possession of a small amount of marijuana has been decriminalized. Also, medical marijuana has been legalized from the same year. By making recreational marijuana legal in California, the state has become the largest legal market in the country since last year. The Office of Administrative Law (OAL) in the state of California recently approves of certain regulations with regards to the Cannabis businesses. Even though these laws now make the operation clearer and are able to impart stability to the operating vendors, the cost of operating marijuana businesses has shot up significantly. Hence the California Cannabis businesses face several challenges economically and they include regulations related to packaging, high state and local taxes, supply chain issues and loss of the business due to illegal sellers in the market.

Because of the aforementioned challenges, the marijuana market is struggling and running a business is turning tougher than expected. Irrespective of being part of the community that grows marijuana, or distribute or have any role to contribute to the Cannabis sector, it is tough to declare bankruptcy due to operating constraints and start afresh.

Marijuana businesses and the Federal Law

Possessing or selling marijuana is still a violation under the Federal Law, Controlled Substances Act 21, U.S.C. 801 and this is notwithstanding additional state licenses. So in the eyes of federal law, this is still a crime (if you are in accordance with your California state rules and are operating state-licensed marijuana business). The body of Federal court is yet to pursue these businesses that run with the support of state rules and are still violating their law.

A memo released in the last year January by Jeff Sessions indicates that there could be a change in this too. But as of now, the marijuana businesses cannot seek bankruptcy relief since they violate the Controlled Substances Act (CSA) and this has been approved by the Office of the United States Trustee (the OUST). In addition, the OUST also takes the position that if anyone who is renting to a seller or a grower of marijuana is also violating the CSA. So take caution, if you are operating cannabis businesses under the state law or if you are renting to the dealers/ suppliers/ growers of marijuana – you cannot seek bankruptcy relief.

Further to Cannabis related Bankruptcy Restrictions

As per the Section 843(a)(7) of the CSA, “it is a federal crime to “manufacture” or “distribute” any “equipment, chemical, product or material which may be used to manufacture a controlled substance . . . knowing, intending, or having reasonable cause to believe, that it will be used to manufacture a controlled substance.” This was recently seen in the case of Way to Grow, Inc. who sought bankruptcy relief. The bankruptcy court in Colorado declined their petition even though, they were provisioning horticultural supplies to legalized marijuana businesses – this proved that the filers were also violating the CSA.

The court dismissed the case of Way to Grow, Inc. quoting that the filers cannot also make any further changes to amend the violations to the CSA as that would have adverse effects on the income that they are generating. This was a unique situation since the filing business was neither a grower/ supplier of marijuana directly nor were they renting the premises where the marijuana businesses ran. They were just merely supplying the equipment, that will help similar customers also grow other crops.

A different angle – where do the limits stop?

Another queer angle is seen with the Garvin v. Cook Investments case, where the bankruptcy trustee is not favoring a bankruptcy filing of a landlord who has leased the property to a tenant in the marijuana industry. This is a topic of debate where the power of the OUST and the court is questioned with regards to extending the restrictions of bankruptcy relief to beyond the distributors and sellers in the cannabis industry.

Working with bankruptcy attorneys from renowned firms such as Recovery Law Group will aid the process of seeking relief. They have the experience of dealing with clients of the varied portfolio in Los Angeles and Dallas.
*Are you more than 60 days past due on your mortgage?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
May 18, 2019