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  • Credit Counselling or Bankruptcy? What Should You Choose?

    Credit Counselling or Bankruptcy? What Should You Choose?

    Call: 888-297-6203

    When it comes to debt relief, a number of options are available, say Los Angeles based bankruptcy law firm Recovery Law Group lawyers. People who are struggling with financial issues often have a problem trying to choose the best option. You will be surprised to know that there is no right choice when it comes to debt relief since every case is different. The debt relief option depends on the goal of the client. Credit counseling and bankruptcy are often the most sought-after options by debtors. Before deciding which option is better suited for you, it is vital that you understand the pros and cons of each.

    Credit counseling

    In this case, you work with an agency to come up with a plan to pay off your debts. The agency can be a private or a government one. Many times, however, clients end up without any debt relief despite going through the entire rigmarole. This may be because credit counseling agencies might charge you high rates without effectively getting any financial burden reduced. In such cases, it is advised to opt for a non-profit credit counseling agency. The important aspects of credit counseling include:

    • Your debt won’t be reduced, instead, a plan to repay your debt over 3-5 years’ time will be devised.
    • Not much relief is available for secured debts like a mortgage or car loan. Though they may be included, credit counseling plan for debt relief focusses more on unsecured debts like personal loan, credit card, etc.
    • It helps bring your accounts to current and reduces your balance, which ultimately improves your credit score.
    • Additionally, credit counseling is not mentioned on your credit report; only improving credit scores can be seen there.

    Bankruptcy

    Bankruptcy is probably the last option people consider when it comes to debt relief. this is probably because the ill-effects of bankruptcy have been publicized more than its benefits. However, the benefits of bankruptcy often outweigh its drawbacks. Opting for bankruptcy might turn out to be the best decision you have made since it is a legal process where you are no longer liable for any debts that are discharged by the court in bankruptcy. Chapter 7 or liquidation bankruptcy has considerable advantages compared to credit counseling. Here are some facts to consider before choosing any option:

    • Exemptions provided by state and/or federal government can protect most of your assets from liquidated, while still getting rid of your debts.
    • A chapter 7 bankruptcy typically takes 120 days to get a discharge, compared to the credit counseling payment plan of 3-5 years.
    • Any debts that have been discharged through bankruptcy are no longer your responsibility.
    • Secured debts can be attended to through bankruptcy.
    • However, it has a severe effect on your credit score. Filing for bankruptcy appears on your credit report and remains for a duration of 7-10 years.
    • Compared to credit counseling, it is a cheaper option. You only need to pay the bankruptcy filing fee and attorney fee to get rid of your unsecured debts.

    However, you will be surprised to know that people start getting credit card offers just after bankruptcy discharge! This is probably because after getting rid of debts, the debt to income ratio becomes low, making you a viable candidate for fresh credit. If you manage to keep your finances in order, you might even end up securing a new mortgage or car loan before the 7-10 years’ time frame. If you wish to know more about bankruptcy or credit counseling options, you can consult with experienced bankruptcy attorneys Los Angeles at 888-297-6023.


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

      *Do you own a home?

      Are you currently working?

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

    • Know More About Texas Bankruptcy Exemptions

      Know More About Texas Bankruptcy Exemptions

      Call: 888-297-6203

      The worst fear people have about bankruptcy is losing all their assets to liquidation. You will be surprised to know that liquidation of assets is not as common as is believed. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, many states provide exemptions which can protect the majority of your assets from going under the hammer. Texas has amazingly generous bankruptcy exemptions that can protect more property than federal bankruptcy exemptions. The different categories of the exemption provided by Texas bankruptcy laws include:

      1. Homestead exemption

      One of the major concerns people have is for their home. Texas offers an unlimited dollar amount of equity in the homestead exemption. This means that you are going to retain the roof over your head, irrespective of the equity in your home. However, the catch is that you must be a resident of the state of Texas for a minimum duration of 2 years and the area of your home must be less than 10 acres (if located in the city) or 100 acres (if present outside city limits). The area is 200 acres in case of a family (in the latter case).

      1. Personal property

      A single person can claim an exemption for personal property worth $30,000. The amount is extended to $60,000 for a family. The items you can protect through this category of exemption include sporting equipment, home furnishings, clothing, tools, etc. Though jewelry is included in this case, the limit is capped to 25% of the personal property limit ($30,000 or $60,000). You can also exempt one vehicle per licensed member. Other items exempted under this category include tools of the trade, farming vehicle and equipment.

      1. Health benefits

      Any equipment which is prescribed by the doctor and is essential for daily routine can be exempted under this category. Social security disability income, as well as supplemental security income, is also protected in Texas.

      1. Insurance policies

      If a dependant is named a beneficiary, then you can protect life insurance policies too through Texas bankruptcy exemptions. There is no limit attached to the value of such policies. Few examples of policies included in this category are accident, health, life, fraternal benefit, annuity benefit, social benefit, Texas college, and state university employee benefit as well as Texas public school employee’s group benefits.

      1. Retirement plans

      Retirement accounts such as 401(k), 403(b), certain IRAs and profit-sharing plans can be exempted up to an unlimited amount in Texas.

      1. Military exemptions

      Military insurance benefits, active duty wages, and survivor benefits are protected through Texas bankruptcy exemption laws. Apart from this, the court also prevents any wage garnishment or collection action taken against a member who is on active duty. Benefits, insurance, and wages of veterans are also exempted except in case of paying priority non-dischargeable debts.

      To know more about bankruptcy exemptions in your state, you can call 888-297-6023.


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

        *Do you own a home?

        Are you currently working?

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

      • Business Recovery Through Bankruptcy is Possible

        Business Recovery Through Bankruptcy is Possible

        Call: 888-297-6203

        In a time when the economy is struggling everywhere, it is not uncommon to find that many small businesses find it hard to stay afloat. Any change in customs duties, fluctuation in prices can send the cost escalating which cuts into the profit margin. Moreover, the high-interest rate can be a huge reason for the escalating debt of small business owners. If you find yourself struggling to manage the finances of your business, it is time to consider bankruptcy as a way out, say Los Angeles based bankruptcy law firm Recovery Law Group lawyers.

        Though Chapter 7 bankruptcy is usually used by individuals to get rid of their debts, this option is available for small business owners too. Filing for bankruptcy under this chapter not only helps get rid of your debts but also provides financial freedom. Other benefits associated with this bankruptcy chapter include:

        • You can continue operating your business despite filing for bankruptcy. This chapter provides a discharge of unsecured debts within 3-6 months of filing. Since most property is protected through exemptions, you might not lose any assets while getting rid of your debt burden.
        • If you are a sole proprietor of the business, filing for bankruptcy and getting subsequent discharge will allow you to get increased cash flow. This can be invested in the business to be used for the growth of the company.
        • All personal unsecured debt including credit card bills, medical bills and overdue utility bills can be discharged through bankruptcy.

        However, before jumping the gun, it is important that you seek consultation with experienced bankruptcy attorneys Los Angeles at 888-297-6023. They can ensure that all the paperwork is in order and that you get the fresh start that could help be the foundation stone of a successful enterprise.


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

          *Do you own a home?

          Are you currently working?

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

        • When Should You Hire a Bankruptcy Attorney?

          Call: 888-297-6203

          Anyone can have a streak of bad luck which might result in them in falling under an enormous amount of debt. However, unless you can get a handle on your finances, it is very difficult to get rid of the huge mountain of debt. Slowly, the situation takes a turn for the worse and you might be facing constant harassment from creditors in the form of unwanted phone calls and threatening letters. Los Angeles based bankruptcy law firm Recovery Law Group says that there comes a time when people have to take the unavoidable option of choosing bankruptcy to get rid of your debts.

          It will not be surprising to know that apart from bankruptcy, various other options are available to tackle your debt problem. These include debt consolidation, reaffirming your debt or opting to refinance it. However, most of these solutions require you to deal with creditors directly. Any lack of honoring the arrangement might lead you to lose your property. Bankruptcy, despite having a long-lasting impact on your credit history, is the best legal way to get rid of debts.

          Most people dislike the idea of opting for bankruptcy, as there are many social stigmas attached to it. However, bankruptcy offers to wipe your slate clean, remove all bad credits and lets you have a fresh financial start. Once you have realized that bankruptcy is the best way to get rid of your debts, it is time you contact efficient lawyers to help you with your case. You can call 888-297-6023 to seek consultation with experienced bankruptcy attorneys Los Angeles. Before you file for bankruptcy, it is important for you to know that not all debts will be discharged during bankruptcy. Certain debts can survive bankruptcy. Your lawyer will make you aware of what happens during the entire process.


            *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.