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  • Recovering from Bankruptcy is Easy If You Follow These Steps

    Recovering from Bankruptcy is Easy If You Follow These Steps

    Filing for bankruptcy is quite emotionally draining. You might feel that you have let yourself and your loved ones down. However, it is important to net let this temporary setback ruin the rest of your life. Nothing is permanent, even the ill effects of bankruptcy. it is important that you take note of what led to your financial downfall. Having an expert bankruptcy attorney can, not just help you recover from bankruptcy but can also be your guiding light towards a fresh start, suggest lawyers of Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/. If you wish to make a splendid recovery after bankruptcy, it important that you follow the following steps:

    1. Find your mistakes

    Bankruptcy is a decision that is taken generally when people have run out of options. However, what led you to accumulate a huge amount of debts is important. Many times, sudden loss of a job or unexpected huge medical bills can send anyone on the road to bankruptcy. If, however, huge spending on luxury items or any other reckless expenditure is the reason behind you filing for bankruptcy you need to seek professional assistance such as credit counseling.

    1. Ask professional assistance

    A financial consultant can help determine where exactly you went wrong with your finances. They can also help guide you by helping plan your finances in order to establish financial stability. credit counseling is a mandatory part of filing for bankruptcy. you need to complete the course during the course of your bankruptcy and can seek professional assistance even after bankruptcy to improve your finances.

    1. Set goals

    Bankruptcy can be emotionally draining; however, you get a chance to start your life afresh. It is important that you have a vision for what you wish to achieve after getting through bankruptcy. You could start with something simple yet significant such as rebuilding a healthy credit score. Your financial consultant can help you with this.

    1. Avoid new debts

    Though it may seem contradictory, to rebuild your credit score, you need to get a credit card. Unfortunately, credit cards are what got you into the big financial mess. Thus, in order to avoid falling into the vicious cycle of debts and bankruptcy, you need to either opt for a secure credit card or a bank or debit card. make regular and on-time payments on them void to avoid falling into debt. before making any purchase, contemplate whether it is essential or not. This will help reduce your habit of getting into debt for unnecessary expenditure.

    1. Steer clear of financial predators

    Once your bankruptcy becomes public record, you will be inundated with numerous offers providing you with chances of improving your finances. However, these companies are seeking to take advantage of your situation and will rob you off whatever meager amount of money you are left with.

    It is important to seek professional assistance from expert bankruptcy lawyers at 888-297-6023 to ensure your road to financial recovery is not hindered.


      *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.

    • Are You Prepared for Meeting of Creditors During Bankruptcy?

      Are You Prepared for Meeting of Creditors During Bankruptcy?

      Filing for bankruptcy is followed by a creditors’ meeting also known as 341 meetings. This meeting generally takes place within 30 days of bankruptcy paper filing. The meeting is attended by the bankruptcy filer, their attorney, the bankruptcy trustee and the creditor(s). According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, during the meeting, the filer is questioned by the bankruptcy trustee about the information provided along with the bankruptcy papers. This includes queries regarding the income, assets, and expenses of the debtor, debts, and creditors listed and other relevant questions including details of any previously filed bankruptcy.

      Along with the bankruptcy papers, you are also required to submit documents which serve as a support to your bankruptcy papers. The documents included are:

      • Pay slip or pay stubs to verify your income
      • Recent tax returns
      • Property evaluation
      • Vehicle registration
      • Mortgage and other loan statements
      • Bank account statements
      • Retirement account statements

      Can having an experienced bankruptcy attorney by your side help your case?

      Though you can file for bankruptcy without a lawyer too, many times people miss out on not just finer details but also hinder their chances of getting their bankruptcy discharged by forgetting important details regarding their financial situation. Having an adept bankruptcy lawyer by your side can help you review all the information prior to filing bankruptcy papers as well as the creditors’ meeting. They can help you prepare for the meeting, including going over the entire information you provided and help with any amendments in the bankruptcy forms prior to the meeting. Other advantages of having a lawyer by your side include:

      • Preparing required paperwork
      • Filing of the documents in bankruptcy court as well as other related legal units
      • Manage your financial information like income, assets, expenses, and debts
      • Take care that all papers related to bankruptcy filing are accurate and thorough
      • Make sure that all local and state laws, as well as procedures, are followed

      Your bankruptcy attorney can represent you at the hearing in your place and ensure that your rights are not forfeited and that your losses are reduced. They can represent all the facts related to your case as well as argue on your behalf during the meeting and advise you during the entire duration. In case you are worried about the number of legalities involved in a bankruptcy, you should consult affordable expert bankruptcy lawyers Los Angeles at 888-297-6023 to clear your doubts.


        *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.

      • Questions to Ask a Bankruptcy Attorney Before Filing

        Questions to Ask a Bankruptcy Attorney Before Filing

        Bankruptcy can be trying times for people struggling to make ends meet. Though you can file for bankruptcy on your own, Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/ suggest that you hire an expert bankruptcy attorney to help you with your case. Despite a lot of information regarding bankruptcy is available online, it is important that you ask the following questions with any potential attorney you wish to hire for handling your bankruptcy case.

        • Which chapter of bankruptcy would work best for you?

        Individuals can file for bankruptcy under Chapter 7 or Chapter 13. To qualify for Chapter 7, you should be able to pass the means test. According to this, your average income should be less than the state median for a household of similar number of members. Chapter 7 is preferred as it takes relatively smaller timeframe to get a discharge. Any non-exempt property you have is liquidated to pay your creditors and remaining unsecured debts are discharged at the end of the bankruptcy case.

        If you are unable to pass the means test, Chapter 13 is an option. For this case, you need to have enough income to support a repayment plan, where your disposable income will be used to clear your debts over a period of 3 to 5-years. Additionally, if you have more equity in the property than can be exempted, Chapter 13 allows you to keep the non-exempt property if you pay unsecured creditors an amount equal to the value of the non-exempt property. An adept bankruptcy attorney can help in determining which chapter would be best for you.

        • Which assets can be protected during bankruptcy?

        Anything you own including your property and any assets becomes part of your bankruptcy estate. However, federal and state government provide exemption through which you can protect your property. A qualified bankruptcy attorney Los Angeles can help you in protecting most of your assets when you file for bankruptcy. This includes any foreclosure or repossession from creditors.

        • What happens in the case of preferential payment?

        If you pay any creditor at the expense of another, this might be considered a case of preferential payment, which is not looked upon kindly by the court. An experienced bankruptcy lawyer can distinguish between the payments made by you to all creditors, to determine whether any of them can be considered preferential. If there are any such payments made, they might also find ways to rectify them.

        • What is the 707B objection?

        Sometimes, the bankruptcy trustee might object to Chapter 7 filing of a debtor. This may be due to the high income of the debtor, which makes them a better candidate for Chapter 13 bankruptcy. Generally, your income and the type of your debts are considered while deciding on the bankruptcy chapter. Higher-income generators have a better chance of paying their debts and therefore in such cases, Chapter 7 bankruptcy is rejected in favor of a Chapter 13 bankruptcy. Expert bankruptcy lawyers at 888-297-6023 can help you with your bankruptcy.


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

          *Do you own a home?

          Are you currently working?

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

        • Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

          Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

          When a person applies for bankruptcy under chapter 7, in Los Angeles, most debts are cleared. The debtor is no longer obliged to the creditors. However, a debtor can keep a loan agreement if he/she wills to save that particular property. Usually, all the property and valuables are sold to clear the debt under chapter 7. If the debtor wants to retain any property, be it their house or car; they can continue to follow the loan agreement towards that house to the creditor. For more advice do log in to Recovery Law Group.

          Reaffirmation

          The process of retaining the mortgage is called reaffirmation. When a debtor reaffirms a debt, he/she affirms to owe the debt after the bankruptcy case ends. The debtor is under the same contract with the creditor and continues to pay the same installments against the mortgage. The loan agreement between the debtor and creditor will behave in the same manner and will not be likely affected by the bankruptcy case.

          The creditor can seize the property if the debtor fails to repay the loan if he/she reaffirms a loan agreement. On the contrary, the creditor can have no effect whatsoever on the debtor if he/she does not reaffirm a mortgage. Hence, it’s advisable not to reaffirm a mortgagee, whilst filing a bankruptcy case under chapter 7.

          Can a debtor Refinance a loan that is not reaffirmed?

          Not reaffirming the mortgage and still upholding the discharged loan, the debtor cannot ask the creditor to refinance his mortgage. Once the debt is discharged, the creditor has no say in the mortgage process. The creditor has to be contented with little or no pay directed by the court. So, if the debtor asks for refinancing a discharged loan to the creditor, it violates the bankruptcy rule. The debtor cannot ask the same creditor for refinancing but can request other lenders to refinance his mortgage.

          Is reaffirmation a viable option to secure a property under debt?

          A reaffirmation agreement in Chapter 7 bankruptcy law must be approved either by the bankruptcy judge or by the bankruptcy lawyer. However, both the bankruptcy judge and lawyer sways clear off reaffirmation, stating that it may put unreasonable implications on the client. A client can retain his/her house without the reaffirmation agreement.

          • Bankruptcy court certification

          The bankruptcy judges do not advocate loan agreement reaffirmations. The court allows the debtor to keep the mortgage, so long as he/she follows the timely schedule of paying to the creditor. It argues reaffirmation as unnecessary. The only likely benefit of reaffirming a loan agreement is a healthy credit score. And the court feels it unnecessary to burden the debtor with reaffirmation for a mere healthy credit score.

          • Bankruptcy lawyer’s certification

          The bankruptcy lawyers also do not advocate reaffirmation. Since they feel that the court does not support reaffirmation, if they advocate for it, they may be obligated to the process of the loan agreement. They do not want to take the responsibility of their client in reaffirming a mortgage. If they sign the reaffirmation agreement, they may be liable, if the client defaults, causing unnecessary complications.

          Loan agreements or mortgages are not necessarily reaffirmed in bankruptcy under chapter 7. The debtor can refinance the loan agreement discharged in bankruptcy by other financiers, without reaffirmation. For more information call 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.

          • Thinking about converting Chapter 13 to Chapter 7 before the term ends?

            Thinking about converting Chapter 13 to Chapter 7 before the term ends?

            A recent court case has provided for good news for many Chapter 13 filers. There can be many scenarios wherein, Chapter 13 payment plan might just not go as planned. The filer might not be in exceptional hardship to get a ‘hardship wave off’ but certainly paying off dues as per the payment plan can become extremely challenging. Converting Chapter 13 bankruptcy to Chapter 7 is a great option for such bankruptcy filers. It was not really ‘on’ but after a recent Supreme Court hearing, it has become more realistic now. To learn more about some latest judgments and their impacts on your case, log on to https://bankruptcy.staging.recoverylawgroup.com/.

            What was the case?

            The historical case had Harris file for Chapter 13 bankruptcy. His approved payment plan had a $530 payment, which he provided for to the bankruptcy trustee every month. The bankruptcy trustee had to distribute those payments to two major lender categories. One chunk would go to the bank for mortgage arrears, while the second chunk would be distributed to other lenders based on the proportion of their liability. Mr. Harris was not able to keep up with the mortgage arrears and lost his home due to foreclosure. After this, Harris continued making $530 of plan payments but did not distribute the amount allocated to the mortgage arrears to other lenders.

            After a year or so, the funds accumulated to $5,500 which had not been distributed to other lenders. Mr. Harris decided to convert his bankruptcy into Chapter 7 and realized within a span of 10 days, the bankruptcy trustee had distributed $5,000 to the other lenders. Mr. Harris was unhappy with this and sued the bankruptcy trustee for his $5,500.

            Different courts had different opinions

            Some experts, as well as courts, thought that the funds held by the bankruptcy trustee belong on the lenders or the creditors once, Mr. Harris converted his case to a Chapter 7 bankruptcy. However, other courts and the Supreme Court judgment seem to believe that the undistributed funds in the hands of the bankruptcy trustee belong to the debtor. This was certainly a big relief for Mr. Harris and various other Chapter 13 to Chapter 7 converters.

            Some key pointers in Supreme Court’s inference

            Court highlighted a few points, which will be a base for many such future arguments or judgments. These can be listed as follows-

            • The court inferred that when a Chapter 13 case is converted to Chapter 7, the bankruptcy estate shall consist of income and assets owned by the filer when he/she originally filed Chapter This means any income generated after the filing debt and any asset built after the filing date, will not be included in the bankruptcy estate. All these belong to the filer.
            • The Chapter 13 bankruptcy trustee Los Angeles does not hold any right to distribute the $5,500 to the lenders as in the case of Mr. Harris.
            • In order to overcome this scenario, the bankruptcy trustee and the lenders should consider distributing income regularly and appropriately to minimize such controversial situations.

            If you are a lender or a bankruptcy filer, how does this ruling affect you and your bankruptcy or lending situation? Find out by dialing in +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.

            • Chapter 11 or Chapter 13: What is Best For a Small Business?

              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.


                *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.

              • Who is Not Eligible to File for Chapter 7 Bankruptcy?

                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.


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

                  *Do you own a home?

                  Are you currently working?

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

                • What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?

                  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.


                    *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.

                  • Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

                    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?

                      *Do you own a home?

                      Are you currently working?

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                    • What Do You Understand by Disposable Income?

                      What Do You Understand by Disposable Income?

                      Many people find bankruptcy a great way out of spiraling debts. Consulting a bankruptcy attorney to find out which bankruptcy chapter suits your condition the best is important. However, people come across the term ‘disposable income’ too often during bankruptcy discussions and are often confused as to what it means. According to bankruptcy lawyers of Los Angeles based firm Recovery Law group, disposable income is the amount of your monthly gross income which remains after all essential bankruptcy expenses are subtracted from it.

                      Disposable income is important to decide which chapter of bankruptcy you qualify; Chapter 7 to get a discharge of debts or Chapter 13. After claiming deductions, you can use the actual cost of certain expenses. Some of the deductions you are allowed include food and clothing, taxes, housing and utilities, life insurance, transportation costs, involuntary payroll deductions, spousal and child support, healthcare costs, education costs, etc. Determination of disposable income is done using forms which depend on the chapter under which you intend to file bankruptcy.

                      Chapter 7 bankruptcy requires you to pass a means test. You need to complete the Chapter 7 Means Test Calculation form in this case. You find your disposable monthly income by deducting allowed expenses and multiply the amount by 60 months. In case the figure exceeds the maximum amount allowed (mentioned on the form) then you can’t qualify for the discharge. Also, if your disposable income can pay 25% or more of your unsecured debts like credit card and medical bills and personal loans, you will be able to qualify for this chapter of bankruptcy.

                      Chapter 13 bankruptcy requires you to file Chapter 13 Calculation of Your Disposable Income form. The monthly disposable income is calculated after deducting expenses. This amount is used to pay off your unsecured nonpriority debts every month for 3 to 5-years as per the repayment plan.

                      Since every case is different, it is important to find out which chapter of bankruptcy you qualify for. This can be done by consulting with expert bankruptcy attorneys. In case you would like to discuss your case, call 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.