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  • Which is the Largest American City to File for Bankruptcy?

    Which is the Largest American City to File for Bankruptcy?

    Call: 888-297-6203

    Stockton in California has earned the dubious distinction of becoming the largest city in America to enter bankruptcy. The cause of this misfortune was the housing bubble burst. Stockton is home to nearly 300,000 residents who had borrowed a huge amount of money in the early 2000s since they were expecting huge returns from property tax revenues and long-term developers’ fees. However, all of this was lost because of extensive foreclosure across the city in the mid-2000s. This resulted in a 70% decrease in the tax base of the city.

    Los Angeles based bankruptcy law firm Recovery Law Group elaborates that Stockton owes a staggering $900 million debt to California Public Employees Retirement System (CalPERS). They, however, ensured that the pensioners didn’t suffer. Stockton neglected all other debts but stayed current on the pension payments. However, the bankruptcy judge left open the possibility of renegotiating the city’s obligation to CalPERS. This has come as a rude shock to the residents of Stockton who were relying on their government to help them in bad financial times.

    In case you find yourself in a financial mess, do not hesitate to call 888-297-6023 to schedule an appointment with best bankruptcy attorneys California for consultation on your case.


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

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    • Different Categories of Debts During Bankruptcy

      Different Categories of Debts During Bankruptcy

      Bankruptcy can be a complicated process especially when the filer possesses different kinds of debts. Classifying the debts in the right order or priority might seem simple but is a very complicated process. These debts can be replaced by a phrase called ‘lender claims’ or ‘creditor claim’. The first step to this complicated process is to segregate debt between secured and unsecured debts. Secured means debts which have a lien or a security backing in the form of collateral. You will use Schedule D to list such secured creditors. While unsecured debts are debts which are given without any security or asset backing and are usually offered at a high rate of interest. You will use Schedule E or Schedule F for listing unsecured lenders.

      The unsecured debts are to be further classified under priority and non-priority debts. Priority debts might include tax debts, utility payment debts, child support, alimony, etc. These priority debts are to be reported in Part 1 of the schedule while all other non-priority debts or non-categorized can be reported in Part 2. To know more such information about bankruptcy and find a suitable attorney for expert advice and solutions, log on to https://bankruptcy.staging.recoverylawgroup.com/

      Secured claims and bankruptcy

      During bankruptcy, the secured creditors enjoy an advantageous position as the lien on the asset pertains after bankruptcy. They can exercise the right to foreclosure or re-access the property labeled as collateral for the transaction. The only benefit the bankruptcy filer gets is extra time to repay the debt if he/she plans to retain the asset or debt settlement if he/she is willing to give away the asset specified as collateral in the loan agreement. Having more equity in mortgage or auto loan will prompt the bankruptcy trustee to sell off the asset. Also, the bankruptcy filer will be entitled to any exemption amount or any equity amount that could be protected in the secured mortgage or auto loan.

      If the bankruptcy trustee cannot realize sufficient funds to set off the exemptions and a good portion of lender claims, the bankruptcy will resist selling off lien assets. If you had like to give away your assets and settle all your debts, Chapter 7 is a good option and if you wish to keep your assets at any cost, Chapter 13 bankruptcy California is the best option for you. You can also gain an advantageous position by relaxing or evading certain liens. Getting rid of any judgment liens that are over and beyond bankruptcy can certainly help. Under Chapter 13, with a skilled attorney, you can also get rid of the unsecured junior lien. These falls under adversary proceedings and only a professional attorney might be able to guide you on this.

      Unsecured claims and bankruptcy

      Unsecured creditors might not be very happy. They might be really-really upset if they are in the non-priority side of claims. The Chapter 7 bankruptcy code is known for eliminating most of the non-priority debts with minimal or no payments. However, the priority debts like any income tax debt, child support, alimony, student loans, penalties, fines, etc., cannot be released or discharged by the bankruptcy court. In such a scenario, you are held liable for all these debts even after bankruptcy and they just don’t vanish or get settled like most debts under Chapter 7 bankruptcy. Medical bills, credit card bills, payday or personal loans, etc., fall into the category of non-priority debts. To know the best possibilities for your bankruptcy case, reach out to 888-297-6203 now!


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        *Do you own a home?

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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.

      • What is No-Asset Chapter 7 Bankruptcy?

        What is No-Asset Chapter 7 Bankruptcy?

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

        What is the core of Chapter 7 bankruptcy?

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

        How can a case turn into No-Asset case?

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

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


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

          *Do you own a home?

          Are you currently working?

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

        • Relief from Credit Card debt through Chapter 7 Bankruptcy

          Relief from Credit Card debt through Chapter 7 Bankruptcy

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

          How can Chapter 7 help to clear credit card debt?

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

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

          • Buying luxury goods

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

          • Withdrawing money

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

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

          The benefit of the doubt for the creditors

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

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

          Alliances of debtor

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


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

            *Do you own a home?

            Are you currently working?

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

          • The Means Test For Chapter 7 Bankruptcy Eligibility

            The Means Test For Chapter 7 Bankruptcy Eligibility

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

            Chapter 7 ideology

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

            ‘Means’ test and Median

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

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

            Court’s intervention

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

            Business Chapter 7 bankruptcy

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

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


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

              *Do you own a home?

              Are you currently working?

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

            • How does a credit report react to Chapter 7?

              How does a credit report react to Chapter 7?

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

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

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

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

              Impact of bankruptcy on credit report based on Chapters

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

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

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

              Credit report accuracy checks

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


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

                *Do you own a home?

                Are you currently working?

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

              • Filing for Bankruptcy is Easy When You Have All Details!

                Filing for Bankruptcy is Easy When You Have All Details!

                Filing for bankruptcy can be quite traumatic for people. Dealing with financial instability can take a toll on you. Having to look for various forms to file the bankruptcy petition can be an added burden. However, filing for bankruptcy is not that tough when you have the assistance of able bankruptcy lawyers, say Los Angeles based bankruptcy law firm Recovery Law Group. A copy of official bankruptcy forms can be printed from the official United States courts website. Additional forms required by local bankruptcy court might have to be filled apart from the official forms. The rules and requirements for filing petition might also differ slightly in local bankruptcy court. These forms can be obtained from a local bankruptcy attorney or the bankruptcy court clerk. Alternately, these can also be available on the specific website of the bankruptcy court. You can fill the form with or without an attorney. However, you should consult your case with expert bankruptcy lawyers at 888-297-6023.

                Filing the form in the right bankruptcy court is equally important. The attorney representing you prepares the required forms, gets them reviewed and signed by you before filing them with the court. This can be done either physically or electronically. In case you decide to file for bankruptcy without a lawyer, you need to ensure that you physically file the forms in court. However, some courts have pilot projects which allow debtors without lawyers to file bankruptcy forms electronically. You also need to find out how many copies of the form you need to file, the order of the forms and any other requirements before filing the papers.

                Several federal bankruptcy courts are functioning in the country. These are divided into judicial districts with every state having at least one. Bankruptcy papers can be filed in either the district where you resided for a major part of the 180-day period before the bankruptcy filing or the district where you have a home despite i.e. domicile while living somewhere else temporarily (such as military base). People who have a business or substantial assets in a place different from where they live, can have the option of filing bankruptcy from that place too. However, you will need to consult with local bankruptcy attorneys to see the bigger picture.


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

                  *Do you own a home?

                  Are you currently working?

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

                • Common Avoidable Mistakes for Chapter 7 Means Test

                  Common Avoidable Mistakes for Chapter 7 Means Test

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

                  Do you really need to take the Means test?

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

                  Are you filing a business bankruptcy?

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

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

                  Determining the household size

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

                  Income mismatch and duplication

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

                  Child Support

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

                  Mortgage payments and Standard Housing Deduction

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

                  Allowable and non-allowable deductions

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

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

                  Chapter 7 bankruptcy: An Assessment of Cost and Debt Discharge

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

                  Attorney fees

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

                  Other Administrative costs

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

                  What is the average release percentage for each debt?

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

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

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

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

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

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

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

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

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


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

                    *Do you own a home?

                    Are you currently working?

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

                  • Which Debts Survive Chapter 13 Bankruptcy?

                    Which Debts Survive Chapter 13 Bankruptcy?

                    People often opt for bankruptcy to get control over the spiraling debts they have accumulated over a period. While in case of Chapter 7, your non-exempt property is liquidated to pay off your creditors and any remaining unsecured debts are discharged; Chapter 13 helps you to reorganize your debts and make payments towards them over a period of 3 to 5-years’ time. Your unsecured nonpriority debts are paid off through the repayment plan and any subsequent debts are discharged at the end of the period. Los Angeles based bankruptcy law firm Recovery Law Group, lawyers inform that there are certain nonpriority, unsecured debts which are not discharged even after bankruptcy. To know more about your case, and debts remaining after bankruptcy call 888-297-6023.

                    Some of the debts which can survive Chapter 13 bankruptcy include:

                    Domestic support obligations

                    This debt is compulsory and cannot be discharged, neither in Chapter 7 not in Chapter 13 bankruptcy. You must ensure that you make 100% repayment on child and ex-spouse support during the course of your repayment plan and even after that.

                    Criminal penalties

                    Any fines you owe due to any convictions for crimes you committed (including traffic ticket) cannot be discharged, even in case of Chapter 13 bankruptcy.

                    Fines owed to government agencies

                    Any fines that you owe the government, or you have been subjected to penalty, such debts are not discharged. However, in case the government agency calculates the fine due to you being overpaid benefits or your failure to inform about the income, then the amount overpaid is dischargeable like unsecured debts. The fine itself is not dischargeable.

                    Certain taxes

                    Income tax debts which were due within the 3-year period prior to bankruptcy filing date are priority debts which do not get discharged even if your bankruptcy ends abruptly. Any tax debts which remain post ending of your bankruptcy need to be paid outside of bankruptcy. Alternately, you could get your Chapter 13 bankruptcy converted to Chapter 7.

                    Debts due to DUI

                    DUI is a punishable offense. In case you injure or cause the death of any person while driving under influence, the debts so arising are not dischargeable. It is important to remember that any debts arising due to personal injuries caused due to drunk driving are not dischargeable, but any property damage caused due to driving under influence is dischargeable.

                    Debts due to willful or malicious intent

                    Debts arising due to any willful and malicious act which results in personal injury are non-dischargeable. In case a creditor obtains a judgment in civil court against you, the debts won’t be discharged. Unlike Chapter 7 bankruptcy, which discharges reckless driving debts, Chapter 13 does not allow this. However, Chapter 13 includes debts arising due to personal injury or death only, and not damage to personal property, as is the case with Chapter 7.

                    Student loan

                    Unless you can prove substantial hardship, student loans do not get discharged during bankruptcy. However, you might get a discharge on the interest on student loans in some cases but not on the principal amount.

                    Fraudulent loan

                    Any debt obtained due to theft or fraud cannot be discharged during Chapter 13 bankruptcy California. Such debts are only discharged if the creditor is unable to establish the fraud in bankruptcy court.

                    Creditors you forgot to list

                    When you file for bankruptcy, you are required to list all your debts and creditors on the papers. The court then uses this comprehensive list to contact your creditors to inform them of your bankruptcy. If the creditor is aware of your debts and the debt is dischargeable, then the debt will be discharged. However, in case any creditor is not listed on bankruptcy papers or has shifted residence and gets no notice of your bankruptcy, those debts will survive bankruptcy.