Get Foreclosure Help

Tag: bankruptcy lawyers California

  • What Happens to Your Car, When You File For Bankruptcy?

    What Happens to Your Car, When You File For Bankruptcy?

    If you own a car through an automobile loan and are struggling to keep up with the installment dues, you might want to know what could be in a potential scenario, if you had filed for bankruptcy. In cities like Dallas, Houston, and other cities, where public transport is not exceptional and well connected, the car is more of a necessity than a luxury. Whether it be to run around the grocery errands or to manage the daily routines of work, kid’s school or any other things. People using their own car might find it extremely difficult to sustain without it even in bankruptcy. Hence, it is a pretty obvious concern to what happens to your car in bankruptcy.

    Type of bankruptcy to decide

    Chapter 13 and Chapter 7 are two bankruptcy category that will determine if you will be able to keep your car or not. In the case of Chapter 13 bankruptcy, the payment plan shall accommodate some payments towards the car loan since it is a secured loan, the chances of retaining the car is high. On the other hand, Chapter 7 rules need the borrower to trade in all the non-exempt assets which could well include your car.

    Are there methods to keep the car when applying for Chapter 7 bankruptcy? Yes, there are, let’s learn how in the next piece.

    The car worth and affordability are two important things that can decide the car fortunes for you. If you need to keep your car, you shall file a reaffirmation treaty with your car loan lender during the bankruptcy procedure. This reaffirmation treaty is basically an agreement which prevents car loan from being released or discharged. This means you shall continue making car loan installment payments whenever they are due in spite of bankruptcy. Reaffirmation could be allowed by the court if the installment due could be proved as an ‘undue burden’ in the bankruptcy court. Ultimately, all other obligations, income, and various other factors come into play. To analyze all factors and to seek professional help in this regard, log on to Recovery Law Group right now.

    Car worth and Equity concepts

    If the liquidation is made through Chapter 7 there is a concept of equity that comes into the picture. The difference between the purchase price of the car and the remaining principal due is regarded as equity. During the liquidation process, one can use the exemption codes available in certain states like California and try retaining their assets like a car. In California, there are two exemption codes. The first one allows for a cap of $3,050 on equity as an exemption for your vehicle while the second one caps it to $5,350. Both these elections cannot be applied simultaneously and are individual section codes or systems.

    If the equity portion of your car is below the exemption codes of $5,350 or $3,050 the bankrupt trustee cannot liquidate your car for repaying debts. If you exceed the exemption amount, it is still not over. You can pay off the excess amount over the exemption to the trustee to be eligible again. The second and last option is to initiate a reaffirmation treaty which has been discussed earlier. Chapter 13 bankruptcy helps you hold on to the car until you comply with the payment plan set up by you, the court, and creditors and all other complications related to Chapter 7 bankruptcy California. For assistance from the best and experienced bankruptcy lawyers, dial in +1 888-297-6203 now!

  • Bankruptcy and Assistance of Attorneys

    Bankruptcy and Assistance of Attorneys

    Debt is never a great idea but sometimes, it becomes inevitable. When the interest mounts up with debt, there looks to be no way forward. If we consume more debt than we can repay, it becomes a crushing situation. U.S Bankruptcy code is certainly the last hope that can save your boat from drowning. This code has been set up to protect honest and hardworking people from a vicious cycle of debt. The code sets free businesses or individuals by releasing the debt/liability after educating them and by following a legal process of settling as much debt as possible. If you are unable to determine if you should file for bankruptcy or you shouldn’t, consider visiting Recovery Law Group to clarify all your questions about bankruptcy and how to make the right decision.

    Broad reasons for bankruptcy

    The reasons for bankruptcy can be many. Some are forced while others are just reckless financial management and indecision. Forced reasons could include medical costs, sudden loss of a job, pay cut, divorce, business failure, etc. While the financial reckless or indecision includes spending or buying luxury items from a credit card or pay day loans. Spending excessively or availing more loans beyond the ability to sponsor the EMI with the paycheck. Unplanned retirement can also be one of the reasons where you find out your expenses are way higher than the social security benefits and savings.

    Businesses have different sets of reasons. These can be classified into two types. Internal reasons could be equipment failure, change in management, poor planning/forecasting, inefficiency, lack of investment, etc. External reasons are usually uncontrollable reasons like fluctuation in the currency market, government policies, increased taxes, increase in competitors, etc.

    Basics of Bankruptcy Chapters

    Bankruptcy can be filed across different chapters. There are different thresholds, eligibility criterions, advantages/disadvantages of each Chapter. There is no perfect way of determining which Chapter is best as it varies on a case to case basis. For an individual Chapter 7 might be appropriate while for the other person, Chapter 13 might be a better alternative. To seek the best solution on what suits you or your business, reach out to some of the best attorneys in town at 888-297-6203 now!

    • Chapter 7
    Chapter 7 is a bankruptcy code which is available for qualifying individuals as well as businesses. This is also referred to as a liquidation Chapter because it is all about liquidating the assets to pay out the debts on the basis of priority. The court has exemptions and other regulations that allow it to classify exempt and nonexempt assets. The nonexempt assets are auctioned, sold, or disposed by the bankruptcy trustee on behalf of the creditor. The common misconception about Chapter 7 bankruptcy California code is that a business or the person might lose all assets when filing Chapter 7 bankruptcy. However, it isn’t true. Using various exemptions and other settlement alternatives, businesses or individuals can safeguard their non-luxury assets.

    • Chapter 11
    Chapter 11 is similar to Chapter 13 but is available for businesses as well. It is pre-dominantly used by corporates and businesses. But it can be used by individuals who have many complex transactions and do not qualify for Chapter 13. The fee for Chapter 11 is slightly higher and it deals with putting forward a plan to settle the debts in the near future. On the basis of the proposed plan, the debt is restructured.

    • Chapter 13
    Chapter 13 is a future-oriented payment plan that has certain debt type thresholds for eligibility. It is a plan that focuses on debt settlement based on the disposable income available for the filer in the future 3-5 years. This ideal for home mortgage bankruptcy filers and other filers who had like to retain most of their assets.
    Still confused on what you should do, which Chapter, is bankruptcy ideal for me, if yes when now or later? These are some common questions that keep revolving in a financial crisis situation. Seek professional help and let them take over all your troubles and concerns. Dial in 888-297-6203 now for the right answer!


      *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 Property is Exempted in Chapter 7 Bankruptcy under California’s Bankruptcy Laws?

      Which Property is Exempted in Chapter 7 Bankruptcy under California’s Bankruptcy Laws?

      While filing for bankruptcy is one of the ways to get ahead of the huge number of dues you have, people are often confused regarding what property they can keep. Since, effectively, bankruptcy is a method to allow people struggling with debt a chance to get a fresh financial start, federal and state exemptions are available in order to protect a bankruptcy filer’s property. while most states allow people to choose between federal and state bankruptcy exemptions, Los Angeles based bankruptcy law firm Recovery Law Group inform that California does not do so. Any person who has lived in California for two years can choose from either of the 2 sets of the exemption provided by the state of California. In case, you shifted to California recently, your state of residence 180 days prior to shifting will determine which bankruptcy laws to follow.

      Consumers can file bankruptcy under either Chapter 7 or Chapter 13. Your entire property becomes part of the bankruptcy estate which is evaluated by a bankruptcy trustee. The assets are sorted (based on which exemption set you have chosen) into the exempt property and non-exempt property. your non-exempt property is used to pay off your creditors in case of Chapter 7, while your monthly repayment plan is devised using the amount of non-exempt property you have. Exemption laws are designed in a way to leave some assets with the debtor for them to make a fresh start. Any exemption in an asset is taken in terms of equity or ownership of the person. Equity is calculated as the amount to be given to the owner if the asset is sold after paying off liens.

      Bankruptcy exemption system in California

      Needless to add, bankruptcy with several laws and confusing paperwork can be quite confusing for a person already struggling with financial woes. Connecting with specialized bankruptcy lawyers at 888-297-6023 and discussing their case can make them aware of the various exemptions which can help them during bankruptcy proceedings. The state of California has to bankruptcy exemption systems. A debtor can choose either of the two depending on what assets they want to save.

      System 1 of California Bankruptcy Exemptions

      Most common system of exemption used, it is also known as “Homestead Exemption” because it protects the equity in the home. A list of assets exempted under this is provided by the California Code of Civil Procedure (C.C.P. § 704). Married couples can double some of the exemptions if they file jointly, however, there is a permissible limit to the exemption up to a dollar amount. The exemptions in this system include:

      1. Homestead:Equity in home up to $75,000 for a single person (under 65 years of age); equity in a home for a married couple of up to $100,000; and equity in a home up to $175,000 for those over 65, disabled, or low-income persons over the age of 55.
      2. Motor Vehicle:Up to $3,050 equity may be applied to motor vehicles.
      3. Insurance:Unmatured life insurance policies are totally exempt, however, the loan value of these policies is exempt only to $12,800.
      4. Health Aids:Those which are necessary for the debtor or his or her spouse or dependent to work or keep good health, including prosthetic and orthopedic appliances, are completely exempt.
      5. Building Materials or Home Maintenance:Up to $3,200 in materials that, in good faith, are about to be applied to the repair or improvement of a residence.
      6. Jewelry, Heirlooms, and Art:Up to $8,000 (even in case of joint bankruptcy).
      7. Food, Clothing, Appliances, and Furnishings:Items which are ordinarily and reasonably essential, and personally used by, the debtor or members of his or her family are exempt, however, any item having “extraordinary value,” is not exempted.
      8. Wages:Up to 75% of wages earned 30 days prior to filing for bankruptcy.
      9. Pensions:Public and private retirement accounts are exempt.
      10. Public Benefits:Unemployment and disability benefits, public assistance benefits, workers’ compensation, and student financial aid are completely exempt.
      11. Tools of Trade:Various tools, instruments, implements, materials, furnishings, uniforms, books, equipment, one commercial motor vehicle, one vessel, and other personal property used in a trade or business are exempt to $8,000. In a joint bankruptcy, if both spouses are in the same occupation, the limit is $15,975. (The commercial motor vehicle is limited to $4,850, or $9,700 if both spouses are in the same occupation.)

      System 2 of California Bankruptcy Exemptions

      For people who have less home equity, this is the better option. This exemption system is also known as “Wildcard Exemption” or “703 System” (C.C.P. § 703). With this set of exemptions, the miscellaneous property can be protected up to a specified dollar amount. This system can be used to protect property only in bankruptcy. It is also important to note that doubling is not allowed in this system. exemptions included in this case are:

      1. Homestead:The debtor’s equity in his or her residence up to $26,800.
      2. Miscellaneous Property (“Wildcard Exemption”):This exemption can be used for any property up to a limit of $1,425, plus any unused amount from the homestead exemption (for a total of $28,225 if the homestead exemption is not used at all).
      3. Motor Vehicles:Up to $5,350 total may be applied to one or more motor vehicles.
      4. Jewelry:Up to $1,600 for jewelry used primarily for personal, family, or household use.
      5. Insurance: All unmatured life insurance contract owned by the debtor is totally exempt, except for a credit life insurance contract. However, any accrued dividend or interest under, or loan value of, an unmatured life insurance contract is exempt only up to $14,325.
      6. Pensions:Tax-exempt retirement savings accounts (e.g., 401(k)s, 403(b)s) are completely exempt under federal non-bankruptcy law (i.e., notwithstanding the unavailability of federal bankruptcy exemptions in California); IRAs and Roth IRAs are exempt under federal non-bankruptcy law up to $1,283,025.
      7. Public Benefits:Disability and unemployment benefits, veterans’ benefits, workers’ compensation, aid to elderly or disabled, and crime victims’ reparations are totally exempt.
      8. Tools of Trade:Implements, professional books, or tools of the trade are exempt up to $8,000.

      To a layman, there might not be much difference in the two exemption sets, however, a skilled bankruptcy lawyer California can suggest which one is going to help save most of your assets when you file for 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.

      • Bankruptcy Law For Fisherman and Farmers

        Bankruptcy Law For Fisherman and Farmers

        Famers and fisherman hold an important place in the economy of the USA, still, there was no permanent law for them to declare bankruptcy. Of late, Chapter 12 is introduced for family farmers and family fisherman, who may want to seek bankruptcy law. To know about other Chapters and bankruptcy in the whole log on to Recovery Law Group.

        A brief history of Chapter 12

        Chapter 12 was introduced by Congress to help farmers and fisherman who were struggling with debts during the emergency in 1986. However, it was a temporary structure that became permanent only in 2005. This law is not so popular and is scarcely employed by people.  The lack of popularity is both due to ignorance and rigid eligibility criteria. That’s why in comparison to Chapter 13’s 1.4 million reported cases in 2011, there is only 637 case reported for chapter 12.

        What is the basic eligibility for Chapter 12 Bankruptcy?

        A person-single or married; corporations or partnership’s that have stable, regular annual income are eligible for filing under Chapter 12 bankruptcy law. The debtor must satisfy the following parameters.

        • The debtor must be involved in farming or fishing occupation and must obtain 50% of the gross revenue from it.
        • The total debt for the farmers and fisherman must not surpass $4,153,150 and $1,924,550 limit respectively.
        • The debt should be because of the farming and fishing occupation and not for personal usages, like house mortgage, etc. 50% of the loan amount must be due to the farming occupation, and in case of the fishing business, 80% of loan must be due to the fishing

        In the case of corporates and partnership, the family must singularly own more than 50% of the equity or stock interests, then only its eligible to file bankruptcy under Chapter 12.

        Chapter 12

        The farmers or fisherman can file under chapter 12 when they are not able to pay their loans and are looking for some relief from the debt. The government appoints a bankruptcy trustee who examines the case and reports to the court. The trustee examines the documents, monitors the debtor’s business operations and investigates means and ways to strategize a plan for the repayment.

        The payment process in Chapter 12 works like chapter 13. Apart from unusual circumstances, the debtor is allowed a time frame of 90 days from the day of filing to table his repayment plan. The payment plan must be completed within 3 to 5 years. Basically, the loan repayment time frame is 3 years, which can only extend to 5 years if the client is bounded to family obligations like alimony or child support.

        Approval of Chapter 12 by the court

        Once the petition is filed by the client for acquiring Chapter 12, the court appoints a trustee to analyze the client’s financial status. Based on the report of the trustee the court grants confirmation to the client. The confirmation verdict comes within 45 days of filing the case.

        Pointers of Chapter 12 plan

        1. Execution of payment plan

        The client must commit all his disposable income to the trustee. The term ‘disposable income’ in Chapter 12 denotes to the balance amount achieved after deducting the revenue acquired by the client’s fishing or farming occupation, to the sum required to manage business and family expenditures. Once a sum is achieved as disposable income, the trustee employs it to disburse the loan, as per the payment plan.  After extracting its fee, the trustee, distributes the remaining disposable income to the creditors.

        1. Cramming down of secure loans

        The debtor has some secured loans to be cleared. After filing the case under Chapter 12, the debtor can cram down his secure loans. The word ‘cram down’ means the debtor can reduce or lower his secured debt on mortgaged articles as per the market value. The debtor must only pay the market value of the collateral pledged article. Any amount excess than that is treated as unsecured loans, which under Chapter 12 the client gets the benefit of paying little or no amount against it. The debtor can take the liberty of stretching the time beyond the term plan to pay his secure loans.  The interest in the secure loan is also settled as per the ongoing market rate.

        1. Discharge of loans

        Although the court must investigate the best interest of creditors, it cannot do much for unsecured loan creditors. The case can be treated similarly as the Chapter 7 bankruptcy case of clearing the debt by selling liquid assets. However, any loan amount above that is discharged. Hence the creditors must be satisfied with meager or no payment at all in some cases. The debtor’s unsecured loans can be discharged by the court depending upon their financial situation.

        Wrapping the case

        Once the judgment is passed the case remains open till the debtor completes his payment to the Chapter 12 trustee. The debtor acquires a discharge, and the case is wrapped up once all the payment procedure is complete.  The discharge releases accountability of debtor towards any obligations, even those that may not be within the Chapter 12 plan. However, some obligations like alimony and child support, are non-dischargeable, which the debtor cannot steer clear of. The court can dismiss the case if it does not find strong evidence. The filer can also dismiss the case or file his case under Chapter 7 bankruptcy California. For sound advice on bankruptcy and right solutions for your circumstances contact 888-297-6203 right 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.

        • All You Need to Know About Chapter 13 Bankruptcy

          All You Need to Know About Chapter 13 Bankruptcy

          Chapter 13 is a code which allows you to repay debts as per a payment plan over the next 36-60 months. The payment plan focuses on retaining assets and debt pay off from disposable income. Chapter 13 can be advantageous, but you need to know many things about the same. The in-depth details about Chapter 13 will be discussed shortly.

          Eligibility

          Chapter 13 bankruptcy has some eligibility criteria just like other criterions. Firstly, there is a debt threshold for secured and unsecured debt. You might want to know about the threshold at Recovery Law Group. If you exceed the threshold, you are not eligible to file for Chapter 13 bankruptcy. There are ways and exceptions to achieve eligibility to Chapter 13 also, which you will learn only when you get in touch with a qualified attorney.

          Apart from the debt threshold, one should also have a steady and consistent income in order to qualify. Since Chapter 13 is all about a future payment plan, steady income is the basic requirement for the plan to prosper. An ideal candidate would be who is not near the retirement age and is getting a W-2 wage salary every month consistently. With this flaw, businesses do not qualify to file for bankruptcy via Chapter 13. This is suitable only for an individual filer.

          The process involved for filing bankruptcy under Chapter 13

          To be honest, Chapter 13 bankruptcy is beneficial sometimes but far more complicated than Chapter 7 another alternative available with the individual filers. To begin with, you need to pay for a credit counseling fee and get counseled on your irresponsible financial management that has led to bankruptcy. This course has to be completed from the recognized facility and a certificate of complication has to be presented when filing for bankruptcy in California. The fee can range between $25-$35 or maybe even higher. The sad part is that Chapter 13 filers rarely get any discount or rebate or free counseling classes. Adding salt to wounds, you shall pay a bankruptcy filing fee with the certificate of completion to begin your process of bankruptcy.

          The big, fat repayment plan

          The repayment plan is under the spotlight in Chapter 13. Every lender wants to get maximum debts restored while as a bankruptcy filer, you want to release as much of debt possible. The good thing is that the filer first proposes a repayment plan and it not enforced on the filer by the court or the lenders. However, due to the contradicting interests of the lenders and the debtor, the plan may always be in a controversial space. The filer has to sit and analyze his/her disposable income and arrive at the net monthly payouts he can make for the next 36-60 months in order to clear as much debt as possible. There are three basic requirements for the plan to be approved-

          • It should be practical and feasible. Your entire income cannot be payout towards the debts, nor a small chunk of disposable income shall be satisfactory for all debts. So, the plan should not only look excellent on paper but should also be feasible and practical to implement in the future.
          • The plan should be put forward in good faith and there should be no intention of releasing the debt. There no way to demonstrate good faith perfectly but definitely it should put forward all facts and should be focused on creating a reasonable and practical settlement option.
          • Finally, the plan should be compatible with the bankruptcy law book. There are some rules to be followed irrespective of whether the lender and debtor have compromised. Such comprises have to be sorted out outside the court and rules need to be followed strictly in the bankruptcy court and the bankruptcy trustee keeps you on your toes for that.

          Keeping up with the plan

          After getting the payment plan approved, it is important to keep up with the monthly payments as indicated in the plan. If your income has changed (decreased) the plan might need to be modified and under the hardship exemption, a certain portion of debt can be discharged. The hardship could be illness, change in work location, significantly higher cost of travel or any other expense related to the income generation activity, etc. Depending on circumstances you may or may not be exposed to interest charged by the lenders. For better advise and suggestions contact 888-297-6203 right 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.

          • Bankruptcy Basics of Chapter 7

            Bankruptcy Basics of Chapter 7

            Bankruptcy is designed as a means to give a debt-free fresh start to honest individuals who have fallen on bad times. Post-bankruptcy, debtors cannot be held liable for discharged debts. Consumers can file for bankruptcy under chapter 7 where all your non-exempt property is liquidated, and the proceeds are distributed among creditors as per Bankruptcy Code. Part of the property may be subject to mortgages and liens, while any unsecured debts (credit card bills, medical bills, etc.) which remain after the process are discharged.

            Though it sounds too good, there are other options available. According to Los Angeles, based bankruptcy firm Recovery Law Group debtors who are in business (corporations, partnerships or sole proprietorships) can definitely avoid liquidation of assets and remain in business. For them, Chapter 11 is a better option where they can adjust their debts by either reducing them, extending repayment time or a better comprehensive reorganization. Sole proprietors can opt for Chapter 13, as can individual debtors who fail to qualify for Chapter 7 and have means to repay loans through a repayment plan. In case you are confused call 888-297-6023 to speak with expert bankruptcy lawyers about your case.

            Eligibility for Chapter 7 Bankruptcy and what can cause your Chapter 7 Bankruptcy case to be dismissed

            If you can let go of your non-exempt assets, Chapter 7 is the best bet for you. It takes less time and any unsecured debts which remain are discharged. This chapter can provide relief to individuals, corporations, partnerships and other business entities; however, discharge is available only to individuals and not corporations and partnerships. One of the major hurdles, in this case, is that you need to qualify the “means test” for being eligible for it. The requirements of the mean test include:

            • Debtor’s “current monthly income” should be less than the state median. This is calculated by considering the debtor’s aggregate monthly income over five years. It should not exceed (after statutorily allowed expenses) either $12,850 or 25% of debtor’s nonpriority unsecured debts (up to $7,700).
            • The debtor can justify the additional expenses of the current monthly income due to special circumstances (job loss, health issues resulting in heavy medical bills, etc.)

            If the debtor is unable to prove either of the points, it becomes a case of presumptive abuse and the case can either be converted into a Chapter 13 case (with debtor’s consent) or dismissed. An individual cannot file under Chapter 7 if a prior bankruptcy petition was dismissed 180 days prior due to debtor’s failure to either comply with court orders or wilful absence from court or debtor themselves voluntarily dismissed the case after creditors took relief from the bankruptcy court to recover property with liens. It is mandatory for all bankruptcy relief seekers to complete a mandatory credit counseling course (within 180 days prior to bankruptcy filing) from approved credit counseling agencies. In case of emergency situations, relief is available for debtors. Also, if the bankruptcy trustee determines the absence of enough approved agencies for counseling then also the process can be skipped. In case an individual’s debts are largely consumer rather than business, then, the court may dismiss the case if granting of relief is an abuse of Chapter 7.

            How does Chapter 7 work?

            In this case, a petition is filed in bankruptcy court where the debtor lives or where they have their main business or assets. Along with the petition, the debtor is also required to submit the following documents with the court and bankruptcy trustee:

            1. List of all assets and liabilities;
            2. Current monthly income and expenditure (also include anticipated income or expenditure increase post-filing);
            3. Financial statement;
            4. Schedule of unexpired leases and executory contracts;
            5. Copy of most recent tax returns as well as those filed during the case;
            6. Certificate of credit counseling course;
            7. Copy of debt repayment plan developed through credit counseling;
            8. Pay slips/cheques from employers;
            9. Any federal or state qualified education/tuition accounts.

            A couple may file a petition for bankruptcy as individuals or jointly. You are expected to pay the following fees:

            • $245 – case filing fees;
            • $75 – miscellaneous administrative fees;
            • $15 – trustee surcharge

            Though usually the fee is paid to the clerk on the filing of the case, individuals can, with court’s approval, pay in four installments; with the last one not later than 120 days of petition filing. This deadline can be extended up to 180 days after filing of the petition on showing genuine cause. The administrative fee and trustee surcharge can also be paid in installments. In case of a joint petition, all charges are to be paid only once. In case the debtor does not pay the fees, the case may be dismissed. In case the debtor’s income is less than 150% of the poverty level and he/she is unable to pay the Chapter 7 fees in installments, the court can waive the requirement.

            The debtor also needs to provide a list of all creditors, the amount and nature of their claims; the debtor’s source, amount and frequency of income; list of any property owned and a detailed account of their expenses (food, shelter, clothing, transportation, taxes, etc.). This information is to be gathered by married individuals for their spouses, in case of joint or separate individual petitions and even if only one of them is filing.

            A bankruptcy estate is formed on commencement of bankruptcy case which consists of all property owned by the debtor. According to the Bankruptcy Code, individual debtors can keep some of their property. This is known as exempt property. The government offers a choice to bankruptcy filers to choose from federal exemptions or state exemptions; however, in some states like California, you can choose only state exemptions (there are 2 sets of exemptions in California). A bankruptcy attorney in California can best guide you which set of exemption will allow you to keep most of your property from being liquidated.

            One of the benefits of filing for bankruptcy is automatic stay which prevents all collection actions by creditors like repossession, wage garnishment, foreclosure, and threatening calls. The stay remains effective for as long as the bankruptcy is in place. All creditors are informed of your bankruptcy petition due to the notice sent to them by bankruptcy clerk. It is therefore essential not to miss any creditor from the list, else they will not be informed of the automatic stay and you might be in trouble.

            A meeting of creditors is scheduled between 21 and 40 days of the filing of the petition. This meeting is attended by the bankruptcy trustee, the debtor and his/her attorney along with creditors. It is mandatory for the debtor to attend the meeting; however, creditors may skip it if they do not have any objection to the filing. In the case of a joint petition, both husband and wife need to attend the meeting. Within 10 days of the meeting, the U.S. court, on trustee’s advice decide whether the case should go ahead or dismiss due to abuse of means test.

            What is the role of a bankruptcy trustee?

            The courts appoint a bankruptcy attorney who is responsible for several jobs, major of which include:

            • Making the debtor aware of the consequences of seeking and receiving bankruptcy discharge (low credit rating, difficulty in getting loans, jobs, etc.);
            • Suggesting filing for bankruptcy in a different chapter (covert bankruptcy to chapter 11, 12 or 13) if they are eligible under the new chapter;
            • Effects of reaffirming any debt;
            • Filing of the report with the court. If all assets are exempt or subject to valid liens, the bankruptcy is a “no asset” one where unsecured creditor does not get any dues. However, if it is an asset’s case, unsecured creditors need to file their claim within 90 days of creditors meeting, while governmental units have 180 days for filing the claim. If an asset is later discovered for distribution, Bankruptcy court notifies creditors and allows additional time to file proof of claim.
            • Administer the case and liquidate non-exempt assets of the debtor to maximize return to unsecured creditors;
            • The trustee also has “avoiding powers” through which any preferential transfers to creditors within 90 days of petition filing can be undone, pursue any fraudulent and/or bulk transfer.

            Chapter 7 discharge

            There are several reasons why a debtor might not get discharged by the court –

            1. If the debtor fails to produce their financial records;
            2. Fails to reasonably explain the loss of any asset;
            3. Committed perjury;
            4. Fraudulently concealed, transferred or destroyed property which was a part of the bankruptcy estate;
            5. Failed to obey bankruptcy court order;
            6. Failed to complete mandatory financial management course.

            Generally, 99% of Chapter 7 cases result in a discharge, within 60-90 days of creditors’ meeting. Getting a discharge relieves the debtor of any personal liability for the discharged debts and cannot be pursued by creditors for them. Secured creditors, however, have right over some property even after discharge is granted.

            In case a debtor reaffirms any debt, they remain liable for the debt (entire or part of it) even after discharge. With reaffirmation agreement, debtor confirms their intention to pay debts which otherwise would have been discharged, while creditor assures that property will not be repossessed if the debtor continues making a payment regarding the debt. However, the reaffirmation of debt needs to be done before discharge is entered. The personal liability of the debtor is not discharged after reaffirmation of the debt. It is therefore important for debtor’s attorney to make the client aware of the consequences of reaffirming their debt.

            However, all debts are not discharged during chapter 7 bankruptcy. Those debts which remain include child and spousal support, education loans, some taxes, and loans made by or to government units, debts for malicious injuries by the debtor to property or another individual, etc.


              *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.

            • Bankruptcy and Median Income Calculation

              Bankruptcy and Median Income Calculation

              Bankruptcy is not a very exciting position to be but there are a lot of choices, questions, problems that have to be addressed almost instantaneously. The first is to identify which Chapter are you looking to file your bankruptcy in. Either Chapter 7 or Chapter 13. Then you have to figure out if you are eligible for Chapter 13 or Chapter 7. If you are eligible, you have to understand the implications of the same and approach the bankruptcy court.

              Tests, Chapters and eligibility

              There are eligibility factors for each Chapter, and one cannot simply select the Chapter without figuring out the eligibility. Before even getting into eligibility, just outline some key properties of each Chapter for better understanding so that we focus on one Chapter that would suit the most for an individual during bankruptcy. Under the scenario of Chapter 7 bankruptcy, all your non-exempt assets shall be liquidated, and the debts shall be set off by the proceeds of the liquidated assets. The debts shall be prioritized based on secured and unsecured. If the liquidated assets are not able to set-off some debts those shall be written off or released or discharged and no liability carries after the event of bankruptcy.

              On the other hand, Chapter 13, is a union of the filer, lenders, bankruptcy trustee and the court, who come together to assess the scenario of the debtor to determine a commonly agreeable plan. This plan usually constitutes of consistent monthly payments for the period of 3-5 years based on the amount of debt. There are clear thresholds mentioned for the amount of limit allowable under each category, secured loans, and unsecured loans. Determine eligibility for Chapter 13 is pretty straight forward. Since the plan is based on future payouts for the period of 3-5 years, the filer might end up paying a good percentage of his debts by the end of the payment plan under Chapter 13. There could be a release of a certain portion of unsecured debt also, depending on the disposable income. Need help to understand more about Chapter 7/13, log on to Recovery Law Group.

              Median income and disposable income

              The median income is the average income a family/individual makes in California. This used as a standard to determine the eligibility for Chapter 7. The median for a single person is $4,565 per month for the 2018 Financial Year. For a family of four persons, it is $6,097 per month. If your income is above this threshold, which means you do not qualify for the median test, you would have to clear the means test. The means test will let you take an aggregate of last 6 months of income and compare it to the California median. Based on the available disposable income, Chapter 7 or Chapter 13 can be considered.

              The disposable income is really important for Chapter 13 as that will be the amount of money to be used to settle the debts. The actual expenses are not allowed but a fixed limit on expenditure has been pre-defined. You can arrive at your disposable income by deducting those fixed limits. For instance, living expenses have been capped to about $650 per individual per month. This includes food, day-to-day expenditures, personal care, apparel, etc. Other expenses can be limited to about $2,500 per month. This would typically include, healthcare costs, car costs/operating expenses, housing expenses, etc. If in the means test, the disposable income figured out is below $128, the filer would qualify for Chapter 7. If you do not qualify for the median income test and means test, Chapter 13 would be the only alternative.

              Disqualified Chapter 7 by a hairline? What are the options?

              Consulting a qualified and professional lawyer can help in determining the ways to arrive at the lowest possible disposable income in order to gain eligibility to Chapter 7. The number of expert help would be +1 888-297-6203. It has been learned that most people make several errors in calculating their disposable income and file for Chapter 13, ending up with 5 years of payment plans, that can be stressful. The faster way is certainly Chapter 7 that could resolve all your debts in a span of 60-90 days. The following tips could be used to qualify for Chapter 7 if disqualified by a hairline-

              • The median income is compared to the average income in California. This might not be that beneficial for people in California but is pretty beneficial for people with a lower cost of living like Dallas, Los Angeles, Austin, etc. California being the costliest states of the United States, most people might be able to meet the eligibility test of median income, which they might assume they will not
              • Not qualifying in Means test marginally can still be compelled to Chapter 7 by the bankruptcy court. This differs on a case to case basis and you will need a professional lawyer or an attorney who can find ways to convince the bankruptcy court based on certain valid propositions
              • The average of 6 months is used as the figure to arrive at disposable income. If you have lost job or income sources recently and expect the income to decline in the near future, it is advised to then delay bankruptcy filing by 2-3 months. This will further lower your average income and ensure you qualify for the Chapter 7 bankruptcy code
              • If you are filing Chapter 7 bankruptcy in Dallas  because of business debt, you would not need to qualify for the means test either. Your business debt, in that case, has to be over 50% of your personal debt. Since a home mortgage is regarded as personal, it is very difficult to breach 50% of the debt. If you do not have a mortgage or any huge personal debt, there are good chances that your business debt shall exceed over 50%. You wouldn’t then need to qualify the means test for eligibility

              Bankruptcy laws are not one of the easiest ones to interpret. Professional help can help you in getting out of the not so pleasant situation quicker and better. Reach out to +1 888-297-6203 for best guidance right 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.

              • Can Some Part of Mortgage Debt be discharged during Bankruptcy?

                Can Some Part of Mortgage Debt be discharged during Bankruptcy?

                Bankruptcy is a sure shot way to get rid of huge financial debts. With a bankruptcy discharge, you can wipe off most unsecured debts and get a chance to have a clean financial slate to begin a fresh life. However, secured debts like mortgage and car loans are not discharged during bankruptcy; though, bankruptcy certainly helps you with mortgage debts confirm bankruptcy lawyers of Los Angeles based law firm https://bankruptcy.staging.recoverylawgroup.com/.

                Secured debts – Mortgages & Foreclosure

                A mortgage loan is a loan taken while purchasing your house. Since it is linked to a specific property, it is a secured loan. The bank has a “lien” or legal right to the property, because of the mortgage loan. If you fail to make payments, the bank can possess your home in lieu of the debt. This is known as foreclosure. When a bank forecloses on any property, it sells it at an auction to recover the dues. In case the home sells for more than what you owe, you are eligible for the extra amount. If it sells for less than what you owe, the difference (between the amount you owe and the selling price of the property) is known as “deficiency.” You might have to pay the deficiency depending on the type of foreclosure.

                There are two different kinds of foreclosure proceedings in California: judicial and non-judicial. While a judicial proceeding takes place through the court system, the non-judicial one does not require the creditor a court order to foreclose. In case the property is sold through a non-judicial foreclosure, the lender has no right to collect the deficiency. Thus if the property is sold at a price which is lesser than what you owe, you do not owe the creditor the difference in amounts. However, since judicial foreclosures take place through the legal system, the lender can sue you for any deficiency. Most of the foreclosures taking place in California are non-judicial.

                Sometimes, people take out a 2nd or 3rd mortgage loan on their property. In such cases, these lenders have smaller liens on the home, i.e. they have a claim after the original lender’s dues are paid. Thus, if a lender forecloses and sells the home for an amount larger than the primary mortgage, the difference is used to clear the 2nd mortgage and then the 3rd till all the loans are cleared. Once your home is sold through foreclosure all subsequent lenders apart from the primary creditor lose their claim of ownership on the home. The debt, however, remains; for which they can sue you for repayment.

                What happens to mortgages during bankruptcy?

                In case you are finding it difficult to make your mortgage payments, bankruptcy is an options to delay foreclosure. Different chapters of bankruptcy have a different way to deal with mortgages. To know more about them you can call 888-297-6203 and consult expert bankruptcy attorneys.

                • Chapter 7 bankruptcy and mortgages

                When you file for bankruptcy under Chapter 7, your assets are sorted into exempted and non-exempted types. The non-exempt property is surrendered to the court, sold and the money recovered is used to pay the unsecured creditors. There are two sets of exemption in the state of California, therefore most property of filers is completely protected. Since you are not required to surrender much property after exemption, any remaining unsecured debts are discharged.

                Unlike the unsecured debts, your secured debts like mortgage are treated differently. You have to choose if you wish to keep your house or not. In case you don’t want to keep the home or find it difficult to make mortgage payments, you can surrender it during bankruptcy. When you surrender your home, the bank takes charge and sells it in a manner similar to a foreclosure. With the bankruptcy filing, you have the advantage to let go of personal liability in the debt, i.e. you don’t need to pay deficiency if your home sells for less than the debt.
                In case you have any junior mortgages on your home, filing for bankruptcy and its subsequent discharge wipes off any personal liability for them too. Thus you are safe from any collector suing you for personal liability on secondary or tertiary mortgages. However, the lenders still have a lien on your home and can foreclose on it; but to do so, they need to pay off the 1st mortgage and other fees. Thus, for junior lenders, foreclosure is not a particularly lucrative option unless the home is worth more than the loan.

                • Chapter 13 bankruptcy and mortgages

                A detailed report of your income and expenses is submitted to the court in Chapter 13 bankruptcy. The court and your bankruptcy attorney device a repayment plan based on your earnings, expenditure and the value of your non-exempt assets. As per the repayment plan, payments are made for 3-5 years, after which the unsecured debts which remain are discharged. The repayment plan first caters to the secured debts like mortgage and car loans and the remaining amount goes towards clearing unsecured debts like medical bills, credit cards, etc.
                If you wish to keep your home in a Chapter 13 bankruptcy, you need to show that you have means to make regular payments accordingly. If you can do so, the bank allows you to keep your home. At the end of the bankruptcy process, any personal liability for a loan is discharged. Though the bank might be able to foreclose, it can’t sue you for any deficiency.
                In case you have any secondary mortgages, you might be eligible for “lien stripping.” In case your home is “underwater”, i.e. worth less than what you owe, the junior liens may be stripped away. When this takes place, the second mortgage holder loses any claim on your home. This way the secondary mortgage debt becomes a normal unsecured debt which can be discharged like other unsecured debts after bankruptcy. If, however, your home is not underwater, you will be required to make payments on secondary mortgages if you wish to avoid foreclosure.

                Can some mortgage debt be wiped off?

                It is important to note that the primary mortgage is not discharged during bankruptcy. The lender has a lien on the home and can foreclose it. However, with bankruptcy, the lender cannot sue you for any deficiencies. In chapter 13, the only mortgage debt which is wiped off is a junior lien in case of an underwater home. If you qualify and file for Chapter 7 bankruptcy, an infinite number of deficiencies can be wiped out. Unfortunately, Chapter 13 has a limit capped; your secured debts must be less than $1,149,525 and unsecured debts less than $383,175 to qualify for Chapter 13 bankruptcy. In case the figures fit your case, Chapter 13 can help get rid of an indefinite amount of deficiency as well as junior liens.
                Mortgages are slightly different and complicated to deal with in a bankruptcy case. In case you are having difficulty managing your finances and also have a mortgage to consider, it is important that you consult a bankruptcy attorney for your case evaluation. Get a better idea of how to deal with mortgages when you file for 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.

                • Are Both Spouses Supposed to File For Bankruptcy Under California Law?

                  Are Both Spouses Supposed to File For Bankruptcy Under California Law?

                   The law is clear, a spouse’s debts are not reflected on another’s credit. The federal law, as well as basic legal principles, dictate that separate credit files are maintained for both the spouses so that debts of one are not reflected on another’s credit file. It is therefore not mandatory for both husband and wife to file for bankruptcy. However, there are some exceptions to the rule, like when both spouses are co-signers on a personal loan, car loan or mortgage on the house, or they share credit card(s). In case, the California means test affects your bankruptcy filing and if you have filed for divorce prior to or after bankruptcy, then also you might be affected by each other’s bankruptcy filing.

                  Liability of debt in bankruptcy between co-signers

                  More often than not, people think that co-signing a debt means that the liability of a co-signer is only when the original borrower is not available or does not fulfill the commitment. Many times spouses co-sign the mortgage of the house or opt for a car or personal loan as co-signers. According to Los Angeles based bankruptcy law firm, https://bankruptcy.staging.recoverylawgroup.com/ signing on the dotted line means that you are equally liable for the debt, i.e. you are joint debtors.

                  Both the co-signers are equally and fully responsible for the entire balance of the debt and can be pursued by the lender without any prejudice. This principle is applicable for spouses too. When a spouse co-signs any debt with the other, the co-signer is fully responsible for the debt. In case, you co-signed for a house or car loan for your spouse and your spouse files for bankruptcy, then you are fully liable for the balance. This holds true for all kinds of debts including student loan debts which are generally not discharged during bankruptcy!

                  Credit card debts are slightly tricky, especially if one spouse gets a second credit card for the other. Since the non-filing spouse didn’t sign for the card or anyhow made themselves liable for the debt, they should not be held liable for the debts. In such a case, the non-filing spouse should check their credit report after a few months of bankruptcy case getting over. In case the debt of the second credit card is reflected in their credit report, they should contact, both the bank and the credit agency to remove the said debt from their credit report since they were neither liable for the debt, nor did they file for bankruptcy.

                  Married couples and Chapter 7 Means test

                  Chapter 7 or liquidation bankruptcy is preferred by people as you often get all your unsecured debts discharged without losing selling off many assets. However, to qualify for it you have to pass the Means Test. If the debtor has means to pay off debt, they cannot qualify for Chapter 7 bankruptcy and have to opt for Chapter 13 bankruptcy. This chapter of bankruptcy involves repayment of debts via a court-approved repayment plan over a period of 3-5 years.

                  The means test involves assessing whether the income of a debtor is above the mean income of the state. When the individual is married and living with the spouse the median family income rises. With each addition of family member, the median family income continues rising. In case of a married couple living together, their incomes are added to see if they meet the means test. It may be possible that individually a person’s income is not enough for repayment however, with the combined incomes of both, repayment plan might be necessary.

                  What happens in case of divorce?

                  Divorce offers a different scenario. Unless a provision has been made in the divorce settlement regarding any debt co-signed by the spouses, neither spouse is relieved from paying off the debt if either file for bankruptcy. In case the spouses are divorced and if the bankruptcy filing spouse was ordered to pay for a credit card, they will have to clear the debt irrespective of the bankruptcy filing.

                  In case your spouse is filing for bankruptcy, it is important to know how much of the debts will be discharged and how many need to be paid off amongst the joint liabilities. In case the debts are huge and only one card with joint liability, filing for bankruptcy and paying the debt might well be worth it. In the case of Chapter 13, regular payments are made till the debt is cleared off without having any effect on the credit score of the non-filing spouse. There is no doubt that bankruptcy is complex and it would be better if you keep debts separated from your spouse, with the exception of mortgage of your jointly owned home.

                  In case you are thinking of filing for bankruptcy, contact expert bankruptcy lawyers at (888-297-6203) to get advice on how to protect your assets as well as those of your spouse.


                    *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 About Transferring Assets Prior to the Bankruptcy Filing in California

                    Know About Transferring Assets Prior to the Bankruptcy Filing in California

                    The bankruptcy process is devised to provide people going through a bad financial situation a fresh start. Simultaneously care is also taken that the creditors are not given a raw deal. The court wishes to be fair in its dealings and therefore does not look kindly to any kind of transfers made to any family member or friend, especially of valuable property. Such transfers particularly prior to bankruptcy filing are considered to be fraudulent in nature.

                    When can an asset transfer be treated as fraudulent?

                    While filing for bankruptcy, you have to keep certain things in mind; transferring assets is one of them. The court does not look kindly to any kind of transfer of property (like jewelry, car, home, etc.) being made within two years prior to a bankruptcy filing. In case you have transferred an heirloom piece of jewelry to your child and due to some misfortunate turn of events you had to file for bankruptcy (chapter 7) the court will observe this transfer of jewelry as an act of hiding asset. According to Los Angeles based law firm Recovery Law Group U.S. Bankruptcy Code 11 section 548 views such transfers as fraudulent if the reasonable value of the asset is not provided to the debtor on its transfer. As per California state law, there exists an additional 4 year look back period (not longer than 7 years) under its Uniform Fraudulent Transfers Act (UFTA).

                    Though you never had any intention of deceiving your creditors, your actions can be viewed as “constructive fraud.” The bankruptcy trustee can sue the beneficiary of the asset to either get the property back (unwinding the transfer). The ones part of your bankruptcy estate and is used to pay back your creditors. It is therefore quite possible that any transfer you made prior to unfortunately hitting a rough financial patch can be viewed suspiciously by the court. The situation can be worse if you made any such transfer within one year prior to your bankruptcy filing. As per U.S. Bankruptcy Court  11 U.S.C. § 727 you could even face denial of bankruptcy discharge!

                    Getting your affairs in order 

                    If you wish to file for bankruptcy in California, you need to pay attention to any transfer of asset made within the last four years. In case you had gifted your kids or friends or relatives any jewelry, ensure that you get it back before filing your bankruptcy papers. If there exists a contract or a document trail for any transfer of assets get it annulled or get another contract drawn to have the assets transferred back to your name. Having any and all assets back in your name is essential if you want to be in the good grace of the bankruptcy court. It is also important to note that if you don’t have the asset, a sum of money equivalent to the value of the asset is transferred in your account (or you can account for the money) since selling your assets at a fair value price is allowed.

                    In case you are unable to get either the property back in your name or get a fair market value price for the same, the options available for you are:

                    1) postpone the bankruptcy filing till the 4-year look back period has expired;

                    2) opt for chapter 13 bankruptcy or wage earner’s bankruptcy

                    Deciding which chapter to file bankruptcy under is an important issue and requires the expert assistance of bankruptcy attorneys. It is very important, to be honest and forthright in your dealings with your attorney so that they can guide you through the process. Make them aware of any transfer of assets that you have indulged in, no matter how insignificant they may seem; as hiding such facts can ultimately be the difference between getting a bankruptcy discharge or getting the case dismissed. In case you still haven’t considered a bankruptcy lawyer, call 888-297-6203 to seek a free consultation with expert lawyers about your case.


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

                      *Do you own a home?

                      Are you currently working?

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