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  • Different Categories of Debts During Bankruptcy

    Different Categories of Debts During Bankruptcy

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

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

    Secured claims and bankruptcy

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

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

    Unsecured claims and bankruptcy

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


      *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.

    • Utility Bills and Bankruptcy

      Utility Bills and Bankruptcy

      Sometimes, there are things more important than your favorite car or even a farmhouse during a bankruptcy that you may have to worry about. Not having electricity for heater or air conditioner during winter or summer can be a more serious issue. Most bankruptcy solutions do not address how to tackle the basic utility expenses. Under the bankruptcy law, utilities are also regarded as a priority and are monitored or addressed very cautiously. There is very little time to delay or postpone the dues due to utilities. Not having water or electricity can certainly be life-threatening. The average time to pay out water or electricity is about 19-20 days once it is due. If the payment is not cleared in 19 days, a notice is issued to the individual with a maximum extension of 15 days before the supplies are cut.

      It is not an easy process to re-establish the water or electricity supply or any other basic utility supply once it has been cut due to non-payment of dues. The service providers may levy a hefty penalty and might also require a security deposit before restoring the services. The penalty or fee charged for restoring the service is also described as reinstatement fee. These fines and deposits could prove very expensive especially when you are bankrupt. Utilities are something which is not optional but is basic.

      How to prevent termination of utilities?

      If you can pay your utility bills as the first priority as and when it is generated, that could be the best alternative. If not, you need to make immediate requests and arrangements with your service provider in order to retain your utilities. Most service providers based on goodwill and some other considerations can offer an extra grace period if the provider is kept regularly informed about the delay and estimate due to clearing status. If the financial crunch seems to last longer and if you think you might not be able to pay the utility bill, you must immediately try and sort a payment plan with the service provider. Some providers offer amortization plans and flexible payout only when the financial crunch is communicated well in advance to the provider.

      If you do not connect with your provider and your services get disconnected, the consequences could be costly, time-consuming and tedious. You would not like to be experiencing the same. Certain states like California offer some assistance programs for people based on their income level to subsidize or support the utility payments. California Alternate Rates for Energy is one such program that provides a substantial discount of up to 20% on natural gas, water, and electricity bills. You might want to check all info about the programs in every city may be Dallas, San Antonio, Los Angeles or elsewhere. Log on to Recovery Law Group to know more about the programs and your rights.

      Declaring bankruptcy shields your utility services

      The bankruptcy laws help to prevent utility companies in disconnecting your utility services. To avail automatic stay with respect to utility bill liabilities, one has to apply for bankruptcy before the services have been disconnected. No matter, if the dues are not paid for a considerable amount of time and you have received threats for connection cuts until your connection has been cut, you are eligible for the automatic stay protection that keeps even the utility companies in the bay from the collection and supply disconnection threats. However, no matter if being an individual you file bankruptcy through Chapter 7 or Chapter 13, you need to assure the utility companies for payment of dues in not more than 20 days. This tenure is 30 days for businesses who could file bankruptcy under Chapter 11.

      The utility companies might need assurance to grant you the 20-day or 30-day extension after you file bankruptcy. The request might be only if you are looking to release/discharge your utility bill payments or have defaulted more than one recent due. If you are current with your utility payments and are not looking to release the utility payments as forgiven debts, there usually isn’t any objection from the utility companies. When you are making attempts and have the intent to pay off the utility debts, there usually is no problem.

      Make a wise call at the right time

      With respect to utility bills, you just cannot be on the wrong foot. Communication with your water, heat, power suppliers is so very essential. Keeping up with the utility bill payments is also so very important. If you are in a hard situation and do not know how to manage bankruptcy, utility bill payment dues, and other aspects, solution/help is just a call away 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.

      • Student Loan Debt Discharge and Bankruptcy

        Student Loan Debt Discharge and Bankruptcy

        Student loans and debt in the USA are shaping into an enormous cloud that is surpassing the credit card debt with a wide leap. Credit card debt scores around $680 million while student debt touches far above the $ 1 Trillion mark. The fingers are pointed towards the slowdown in the job market since 2008. The newly grads struggle for jobs and are not able to secure one hindering them to clear the debt. They can in other cases of debt, surrender, but the student loan cannot be diffused, and the students must pay without refute.

        Circumstances when loans can be discharged

        There are no viable options wherein a student can request for loan discharge. The court can consider the case only under a very difficult situation faced by the student. The student must justify their case and proof of suffering and facing an utmost difficult situation and lifestyle. The student, however, can benefit and make their case strong if they have been undertaking high-potential jobs in-between and after school. Not being able to secure a job after completing graduation, with a string of underscored jobs during the graduation period not only makes up for a poor case but also escalates the debt.

        Such a student when declares bankruptcy; the court may not be lenient. The court scrutinizes the student’s past, present and future financial scenario, and the means by which the student will be able to clear their loans. It’s only under dire circumstances when the student must suffer enormous hardship to clear its debt does the court yields. You can visit Recovery Law group that help students to analyze and file a petition in the court for the discharge of loan due to bankruptcy.

        Be honest

        The students must be honest in presenting the case. Some students just look for an excuse to get through the debt. However, the court scrutinizes your case prudently; and hence in no circumstances, the students must go about carelessly. When a student files a petition in court for the discharge of loan; the court may take into consideration the following points.

        1. Financial resources

        The court may consider the financial situation of the student in the past, present, and future. What is the scope of securing a job and how the student is managing the daily expenses? What is the scope of future income? According to the students’ knowledge and degrees can they secure a job in the future? After examining these parameters, the court can issue a favorable decision.

        In the past, was the student conscious of clearing the loans. The student can make efforts by taking part-time jobs during their education and summer jobs during the vacations. Such efforts fairs well with the court.

        1. Lifestyle

        The sincere effort of the student to save money to clear loans by minimizing and living on necessities is crucial to bring the decisions in the students’ favor. Many a student may not show a sincere effort and may live carelessly. The court considers the student’s lifestyle during the educational tenure and after the completion when they are not able to secure the job. The student may have to shift to a low maintenance, smaller living space in a less expensive area to save the overall expenditure.

        1. Other determinants

        The student may suffer from some undue and uncontrollable circumstances that may stall their process of loan repayment. Circumstances like-

        • Medical expenses during or after graduation.
        • Any physical disability or accident, which may prevent the student to take up the job.
        • What is the future prospect of the accident? The timeframe within which the student may recover or may not throughout their lifetime.
        • Initiation to clear few installments of the loan.
        • The proportion of the loan to be cleared.

        Student loans are challenging to pay, but they are the means to the end. They are valuable resources that are necessary to harness the students ‘potential and get a decent life.  However, falling in debt and not able to execute a proper plan to clear the loans defeats the mere purpose of student loans i.e. enhancement of life. The student needs to justify his case of a very genuine excessive hardship, which is a very thin window to slide through. However, you can call this number (888-297-6203) for help and guidelines.


          *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.

        • Social Security Benefits Retention and Bankruptcy

          Social Security Benefits Retention and Bankruptcy

          The retired citizens of the USA can enjoy the benefits of social security fund, although it may be a meager sum. Social security funds are a fixed amount that the USA Government obliges its citizens to enjoy after retirement. The social security fund is managed by taxes paid by the citizens. Social security fund is a fixed amount a retired citizen receives every month throughout their life after retirement.  This amount may be substantial, but it is of great help to people who are retired and helpless. Being an old retired person, with no secure income, any amount is good.

          Old age attracts a lot of expenses be it medical or health, pooling of all the retirement funds, may sometime prove to be less. The retired person may take loans to cover their expenses. Under Chapter 7 the retired citizens can apply for bankruptcy if they are not able to support themselves and pay the loan availed for health treatment.

          Exploiting Chapter 7

          There may be cases where the retired citizens may want to exploit and enjoy the benefits by declaring bankruptcy. The court may not justify bankruptcy and ask the retired citizens to employ Chapter 13 to repay their loans under easy payable installments. The court may observe all the plans and resources that the retired citizens may utilize and the net savings after the expenses. Scrutinizing the income and expenses balance sheet, the court may suggest the employment of Chapter 13 to repay loans to the creditors.

          In the case where the expenses cancel the income and just a mere social security benefit remains the client can seek Chapter 7 bankruptcy. Such retired citizens may have difficulty in paying debts and can take help. The court, however, is stringent and undertakes scrutiny before declaring bankruptcy.

          Should Social security benefits be included in the income figure?

          Enjoying Social security benefits are the basic rights of all retired USA citizens. Social security number is specifically designed to the citizens of the USA, so that they can lead a respectable life after retirement. People who are affluent can surrender social security benefits. However, old age brings in a lot of medical expenses, surgeries and other health expenses that may propel them to take loans to cover the expenses. The loan may turn into a huge pile making it difficult for the retired citizens to pay. Once they are thick into the debt, they find no other way but to declare bankruptcy.

          The court after observing the dire circumstances may allow the client to declare bankruptcy. The court undertakes the lifestyle enjoyed by the client and the means to fund and support their future life. It is not easy to convince and justify the case in court. The client can seek professional help by consulting Recovery Law Group.

          Surrender social security benefits?

          Arguments and discussions often circulate regarding the securing of Social security benefits after declaring bankruptcy. The argument stresses that the client may have too many benefits in their hand. However, the client can voluntary surrender social security benefits. Apparently, as the case goes the client is sucked badly by the loans and can barely make the ends meet. In such case, the Social security benefits are exempted from bankruptcy procedures.

          The retired citizen can keep their Social security benefits even after declaring Bankruptcy. Social security benefits need not be an issue for clients who are honest and in a bad situation. They may require every support and money, even if it is in the form of Social security benefits. The case of such clients is genuine, and the court supports them and therefore exempts social security benefits even after declaring bankruptcy. To present your case strongly in court you may contact at this number- (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.

          • Key Differences Between the Bankruptcy Code and the Federal laws for Bankruptcy

            Key Differences Between the Bankruptcy Code and the Federal laws for Bankruptcy

            The bankruptcy procedure does not start a local state court. Instead, the official bankruptcy papers are usually presented to the clerk at the Federal court. This is because bankruptcy is a federal process and is governed by the Federal rules for bankruptcy. The law allowing the use of Chapters 7 and 13 is as per the bankruptcy code. The Federal laws for bankruptcy procedure act as a guide to the courts to implement the bankruptcy law.

            What does the bankruptcy code consist of?

            Bankruptcy code can define the following-

            • Eligibility to file a bankruptcy case, answers for who can file
            • Outlines the responsibilities of a debtor or the filer
            • The responsibilities of the bankruptcy trustee who administers the case
            • Affected properties and application of state exemption laws where necessary
            • What type of debts shall be released and what type of debts shall be considered as non-releasable?
            • How a lender can make a claim
            • The prioritization of debts and release of debts based on the lender’s claim

            For more in detail analysis of the bankruptcy code, visit Recovery Law Group. The bankruptcy code additionally is divided into several chapters. We see the use of a specific Chapter due to eligibility and other benefits. The different chapters with a brief can be listed as follows-

            • Chapter 1 has been designed for general provisions
            • Chapter 3 is for case administration
            • Chapter 5 defines the lenders, debtor/filer and the estate
            • Chapter 7 is straight liquidation of non-exempt assets during bankruptcy
            • Chapter 9 refers to re-setup for the municipalities
            • Chapter 11 is the re-organization for businesses which applies to individuals doing business as well
            • Chapter 12 refers to re-organization for fishery-related individuals and farmers
            • Chapter 13 is a payment plan for individuals, which aims at settling dues over the course of 3-5 future years
            • Chapter 15 gives insight on cross-border cases and some of the ancillary cases

            Federal rules of bankruptcy and the bankruptcy code

            Every court in the United States has a rule book which guides its course throughout a bankruptcy case. The Federal rules for bankruptcy help in the implementation part. The Supreme Court was granted authority by Congress to amend and/or write rules that govern the bankruptcy cases. The objective is to enable quick and inexpensive access to justice for all parties. There are different rules outlined by the Supreme Court that help in creating a standard/uniform system in order to enable the objective of quick and inexpensive justice. It is important to note that if there is a conflict amongst the Federal law and the bankruptcy code, the court shall go as per bankruptcy codes. The federal rules can be listed as follows-

            • Rule No. 1002 highlights the commencement of the case. It deals with the filer, petition and the selection of an appropriate Chapter
            • Rule No. 1005 refers to the caption of the petition. The caption in a bankruptcy case includes basic details of the filer like his name, address and also the court’s name/location in which the case is to be filed
            • Rule No. 1006 is with respect to the filing fee. The petition or the document must consist of a filing fee. If the filer is eligible for a waiver of fee or has a request for paying the fee in installment, such document or request must also be added with the petition document
            • Rule No. 1007 has all the schedules, timelines, documents, lists, statements, etc. This rule basically explains all the important timelines, statements, and documents that need to accompany the petition before filing
            • Rule No. 1008 deals about verification of petition and the documents accompanied with it. The petition and documents filed should be verified by an oath or a declaration (which is usually a signature of ‘I certify’)

            Other deviations in bankruptcy rules

            There can be some rules enacted by the bankruptcy court that is specific to a particular district. The court has full independence to enact such rules. These rules are usually administrative and deal with the procedure of motion, entering orders, briefing schedules setup instructions, local form filing requirement or instructions, etc. Similar to the local bankruptcy rules, there can be some bankruptcy judge specific rules. The judge’s personal preferences can be articulated as rules in that particular court. These types of rules may include a policy for emergency motion, telephone/video evidence or hearing, court staff interaction, hearings procedure, etc.

            Law is a complicated child and is best managed by the rightful parents. An attorney or a lawyer can better guide you in your complicated situation. You just need to call +1 888-297-6203. This is your one-stop solution for all your legal needs.


              *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 does Bankruptcy mean for Senior Citizens?

              What does Bankruptcy mean for Senior Citizens?

              Financial troubles can hit anybody, anytime. Nearly half the senior citizen population in the U.S. was facing debts (mortgage, car loan, medical bills, etc.) in 2010, averaging at $50,000. When you have accumulated debts of such huge proportions, it is natural to be a bit worried as to how the debts are going to affect you and your heirs. While you are earning, there are still chances of you being able to repay the loan, but post-retirement, making monthly payments towards the debt is a bit difficult with a fixed income at hand. According to Los Angeles based law firm Recovery Law Group, many senior citizens often consult about their options with respect to debt.

              Options available for seniors to deal with debt

              The state of California offers a number of protections to senior citizens when it comes to debt collectors and collection actions. The Social Security, retirement accounts and other government benefits are protected by the law. These assets cannot be touched by any creditors who sue you for non-payment of debts. Many times, creditors refrain from filing a lawsuit against you since there’s not much that they can lay their hands on. The term “judgment-proof” is used to describe such a situation where almost all your assets are protected from collection actions. In case you are “judgment-proof” there is no need to file for bankruptcy to get rid of your debts. However, it is an option worth considering as your heirs might find have to bear the burden.

              When a debtor passes away, the debts he/she owed do not lapse with the death. Though they aren’t passed to the heirs, they definitely affect the estate. After death, all your assets (your estate) go into “probate” which provides ample opportunity to creditors to file claims for payment. When it comes to inheritance, the creditors are paid before anything is passed on to the heirs. Unfortunate circumstances may see emptying of bank accounts and selling of house, car, jewelry or any other asset. The only respite available is for your home, which might be exempted in case of a surviving spouse or minor heirs who reside there. The probate court sets aside some assets to care for dependants, while the remaining assets are used to pay the creditors. On the brighter side, your heirs won’t be held liable for any debts left after the probate but if you leave your assets to them in a trust and the trustee does not inform the creditors, your debts might invariably be passed on to your heirs.

              Bankruptcy and estate planning

              Though bankruptcy is not essential for senior citizens, they surely can benefit from it, especially debtors who are judgment proof. California provides bankruptcy exemptions which protect a huge part of senior citizen’s property like retirement accounts, government benefits, etc. from creditors during bankruptcy. Since old age is often accompanied by numerous medical issues, senior citizens often end up accumulating huge medical debts as healthcare is undoubtedly expensive. Since medical debt is an unsecured debt, it is wiped off in bankruptcy. Thus after bankruptcy, you will be devoid of any debt and can save your property which can be passed on to your successors.

              The effect bankruptcy has on credit score is a major consideration. Though bankruptcy has a negative effect, unpaid dues aren’t exactly helping to the cause. Since the majority of senior citizens already own a home and car, there isn’t much need to take any more loans. Thus, bankruptcy can have not much negative effect on the life of a senior citizen. Additional benefits include an end to the collection calls which are quite irritating. Despite you being judgment-proof, creditor harassment sees no end to see that they get a payment. Bankruptcy also helps relieve stress which can have numerous health benefits.

              Should you file for bankruptcy?

              Despite the advantages associated with bankruptcy, in case you have any doubts regarding it, you can call 888-297-6203 to get a better assessment of your financial situation. In case, you have mostly secured debts, bankruptcy will not be of much help for you, as this kind of debt is not discharged. Having large equity in your home is not a good option too as you might have to surrender it during bankruptcy. Discussion with an expert bankruptcy attorney can help you choose which set of the California state exemptions can help you protect your property. An estate planning lawyer can help you manage your estate in an efficient manner.

              Many people strive hard to build their property with the intention of giving it to their children or heirs. Despite bankruptcy being a good option to get rid of your unsecured debts, it is better that you consult an experienced bankruptcy and debt management attorney to find out other options of getting rid of debt. You have the option of challenging those debts which have passed the statute of limitations, i.e. cannot be collected from you or your heirs. Alternately, you could also ask for debt consolidation or settlement before you pass away. If you are a senior citizen who is struggling with debt, or are judgment-proof but wish to keep your estate secure (against your creditors) for your heirs, then consult a bankruptcy attorney for a free consultation and case evaluation.


                *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.

              • Evading Payments – Bankruptcy Fraud on the Rise

                Evading Payments – Bankruptcy Fraud on the Rise

                Though the bulk of the bankruptcy claims that have been filed in the last year in the United States have been for real reasons of overpowering claims, There has been a little number of fraud cases of bankruptcy too. Amongst the honest and hardworking Americans, There is certainly a subset of people who have put up credit card debts as they have withdrawn payments. There are also fraudsters who hide their individual assets so as to keep them from lenders and also use bankruptcy to hide their different types of fraud that they use to achieve a personal profit over the fact that bankruptcy is a relief to many who struggle with compelling creditors.

                What is the outcome of these fraudulent processes?

                The consequences of complicating bankruptcy especially through deliberate fraudulent activities can be very adverse

                • Prolonged and stressful bankruptcy journey
                • Alleged fraud claims from the creditors and the bankruptcy trustee
                • Denial of the bankruptcy discharge
                • Prosecution under the charges of a federal felony

                For the sake of the clients who work with them, Recovery Law Group, who serves the customer base in Los Angeles, California and Dallas, TX have formulated the below scenarios.

                The below situations talk of common bankruptcy frauds and the outcome of those that the filers/ creditors end up facing-

                Common forms of Bankruptcy Fraud

                Any fraudulent behavior, While the process of bankruptcy is carried out, can result in facing legal consequences and can amount to bankruptcy fraud. It is technically a crime that has its own set of after effects and legal actions associated with it. Here are some common forms of bankruptcy fraud –

                • Incorrect statements/ false information under oath – Generally, All the bankruptcy filings are made under the penalty of perjury. Hence signing all documentation in lieu of, The bankruptcy process the debtor stands by the fact that the furnished information is true and correct. Also in the meeting of creditors, The debtor is kept under oath. By being dishonest in either of the above situations, The debtor may be adjudged and prosecuted for perjury.
                • Concealing the assets–Furnishing all information with concerns to the possessed assets is a mandatory procedure in the bankruptcy process. The assets could either be of the exempt or non-exempt type. As a debtor, never exclude any property assuming that it cannot be traced like bitcoin or never transact the property through any fraudulent transfers.
                • Piling up credit card debts/ Evading payments–This is a common type of bankruptcy fraud that occurs even before the debtor files for bankruptcy support. If a debtor proposes to file bankruptcy, then he or she needs to stop the usage of his credit cards and avoid piling up the debts on them.

                Consequences of dishonest processes in bankruptcy

                Adopting dishonest procedures or false statements in the bankruptcy process can have adverse effects on the filed bankruptcy case. A slight doubt in the process that is sensed by the creditor or the bankruptcy trustee can lead to the filing of an adversary proceeding. In cases of filing of an adversary proceeding, the bankruptcy trustee or the creditor may challenge the debtor on the credibility of the bankruptcy case either preventing the discharge of debts or by revoking the eligibility to file Chapter 7 bankruptcy. Besides these, the bankruptcy court also administers the situation and handles the fraud procedures as below:

                • Deny few not all: In some cases, the court may permit the discharge most of the dischargeable debts but still deny it for the other types
                • Deny all: Adverse scenario witnesses the denying to the discharge of every debt and hence the entire purpose of filing bankruptcy is wasted
                • Conversion to another Chapter: The Chapter under which the bankruptcy case had been filed, says Chapter 7, can be later changed to a Chapter 13 bankruptcy. In this scenario, instead of facing a discharge of the debts, the debtor ends up paying them over a period of time to be finally relieved of them
                • Case dismissal: In case the court is convinced of intentional fraudulent behavior in the case, Then it can completely dismiss the bankruptcy petition. If the removal is done with racism, Then the debtor will not be able to file for bankruptcy for a critical period of time.

                Though it may sound as serious as it can get from the view of the court proceedings, The most adverse consequence is the federal crime angle to the bankruptcy fraud.

                Federal Crime

                The US Code for Bankruptcy, states that it is a federal felony to cheat knowingly or do any fraudulent activities in bankruptcy cases. It may include any of the below:

                • Making a false statement under the penalty of perjury
                • Concealing of properties/ assets
                • Offering a bribe
                • Concealing, falsifying or destroying of information (specifically financial records)
                • Making a false oath or account

                A ‘scheme or artifice to defraud’ has been mentioned in section 157 of the US Code of Bankruptcy where businesses can be prosecuted for performing fraudulent activities on behalf of the consumers involved. A good example would be the performance of a business that assures consumers of being saved from eviction due to the backlog of rents, But in turn, records bankruptcy in the name of the consumer.

                Conclusion – Being Honest help

                The conclusion is straightforward and simple. Since we are dealing with the Government and also the creditworthiness of us is at stake, It is always safe by being honest and transparent. In most cases, the filers are desperate and honest people. In some cases, the creditors can be deceiving and will look out for opportunities against the debtor.

                Experienced bankruptcy attorneys from Recovery Law Group can help you formalize a straightforward and honest process for your bankruptcy filing. Reach out to the skilled team!


                  *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 Needed to Know About Filing for Bankruptcy for a Second Time

                  All You Needed to Know About Filing for Bankruptcy for a Second Time

                  In case you have been through rough financial weather, and have previously filed for bankruptcy, you do not have to worry if you find yourself in a bad financial situation again. Though bankruptcy helps you to get a fresh start, bills can start piling up again. Getting discharge previously does not mean that you cannot file for bankruptcy again. If you find yourself in a similar situation, it is important to know whether you can file for bankruptcy again in California. According to Los Angeles based law firm Recovery Law Group , it is possible to file for consumer bankruptcy or second personal bankruptcy. However, there are various factors to consider in this situation.

                  Filing for 2nd bankruptcy in California

                  A bankruptcy filing is Very common in California. Many terms bankruptcy filers end up having the same problems again and have to file for bankruptcy. In case you are having problems with handling your finances, you can record for bankruptcy 2nd, 3rd or 4th time too. Each chapter of bankruptcy has a different time frame for getting debts paid. If you have to file for bankruptcy a second time, the time frame depends on which type of bankruptcy had previously been recorded and which is under consideration at present. There are 2 main types of bankruptcy support options available to consumers.

                  Successive Chapter 7 Cases

                  Chapter 7 bankruptcy is also known as liquidation bankruptcy. In this case, debtors who qualify for the same do not have to pay back their dischargeable debts. In case you have earlier recorded for Chapter 7 release, then you have to serve for 8 complete years before filing for another Chapter 7 bankruptcy to get a discharge. Though in theory, you can record for bankruptcy the very next day of obtaining your first Chapter 7 discharge, a second discharged won’t be allowed until eight years have passed. It needs to be put in mind that the 8 years are taken from the original date of filing and not the date of discharge.

                  Successive Chapter 13 Cases

                  The wage earners bankruptcy, commonly known as Chapter 13 bankruptcy, is for people with adequate financial resources and income than those filing for Chapter 7. The Chapter 13 bankruptcy filers are expected to pay back the creditors with a repayment plan in a 3-5 years’ time frame. People who have filed for Chapter 13 previously can file for the 2nd one after a span of 2 years.

                  Can People File for Bankruptcy under a Different Chapter than Previous one?

                  As the situation changes, your chapter for filing bankruptcy can also change. The time frame for filing for bankruptcy under a chapter different than the previous one varies.

                  • Chapter 7 bankruptcy followed by Chapter 13 bankruptcy: In this case, debtors need to file after 4 years from the original filing date of a successful Chapter 7 bankruptcy to be eligible for discharge under Chapter 13 in the 2nd
                  • Chapter 13 bankruptcy followed by Chapter 7 bankruptcy: In this particular case, consumers need to wait 6 years from the original filing date (in a discharged Chapter 13 case) to file for a chapter 7 discharge. An exception, however, may be granted if 70% of Chapter 13 repayment plan has been satisfactorily met.

                  Facts to Remember About Second Bankruptcy

                  Just like 1st bankruptcies, 2nd bankruptcies too are public record and remain on credit reports for a period of 10 years. Depending on which bankruptcies you have filed, you will have two bankruptcies on your credit report simultaneously. However, credit score after bankruptcy improves post discharge as you make efforts to improve your finances by paying your dues on time. Before filing for bankruptcy in California, you need to follow various steps including mandatory credit counselling. Though bankruptcy filing might be a tough decision, yet it is a necessary one to make if you wish to recover from serious financial problems. Ignoring the debts is never a good option as it may lead to legal ramifications. However, life after bankruptcy can be much better as you get a chance to build your credit report. Consulting a qualified bankruptcy attorney is important in this 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.

                  • What to Expect While working with a Bankruptcy Attorney?

                    What to Expect While working with a Bankruptcy Attorney?

                    Financial issues can be quite demanding and confusing at the same time. Though the law does not require that you be represented by a lawyer while filing for bankruptcy, it is often advised to do so. The reason for this is that bankruptcy petition filing or a 341 hearing is much more complex than just filling out a few forms. There is a lot more that a bankruptcy lawyer can help you with. Here’s looking at some of the advantages that having a bankruptcy lawyer brings to the case:

                    • Help determine which chapter of bankruptcy will suit your individual circumstances best.
                    • Assessing your financial condition to determine whether you can pass the means test in the case of Chapter 7 bankruptcy.
                    • Ensuring that your exempted property is protected.
                    • Keeping sure that you haven’t waived off any rights involuntarily.
                    • Assessing which debts should be disputed.
                    • Determining any possible claims against creditors.
                    • Making you aware of your options with respect to secured debts and any non-exempt property.
                    • Taking care of communicating every detail of the proceedings to your creditors.
                    • Help prepare you as well as accompany you to meetings with creditors.
                    • Any objection filed to your bankruptcy by creditors is represented and handled by them.
                    • They file a motion for relief from the automatic stay and any other similar pleadings by creditors.
                    • They help enforce your discharge order so that you are able to enjoy full benefits for a fresh start.

                    Considering the various advantages that having a bankruptcy attorney can have on your case, it is important that you make a wise decision regarding this. Many times, cases filed without an attorney are more likely to be dismissed due to lack of proper documentation or any other reason. Instead of cutting corners at such a time, when you are financially struggling, you must consult with the best to get out of this sticky wicket.


                      *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 Happens in Free Case Evaluation?

                      What Happens in Free Case Evaluation?

                      Living under constant threat of repossession or foreclosure is terrifying. There is no denying the fact that being under debt can hurt not just financially but also emotionally. In case you are undergoing troubled times where you are constantly at the edge due to insurmountable financial debt, working tirelessly to bridge the never-ending gap between needs and dues; you need to take control to attain financial freedom at the earliest. Consulting a bankruptcy lawyer can make you aware of any and all possible options open for you.

                      Can Bankruptcy be the Answer to Your Problems?

                      Many people with a large number of unsecured debts like credit cards or medical bills and unsecured loans etc. can take the help of Chapter 7 bankruptcy which helps wipe the slate clean and provides with a fresh start. To qualify for this type of bankruptcy, you need to pass the means test. For people who have higher incomes, lot of secured debts as well as significant assets, Chapter 13 can be ideal. In either case, you can get control of your life and also put money aside for children’s education, your retirement fund, etc. while simultaneously building your credit again. A bankruptcy consultation vis-à-vis your particular case can help you determine the next step.

                      Bankruptcy Myths can be Misconceptions

                      Many people who find themselves at their wit’s end while trying to manage huge debts are often victims of bankruptcy myths. There are many misconceptions surrounding bankruptcy such as you can lose all your property and belongings when filing for bankruptcy, or that your credit rating is such that you will never be able to get another credit line, buy any property once you file for bankruptcy. It will be surprising for people to know that many people who file for bankruptcy are able to keep all of their property. They are also able to get a fresh start with new credit cards to build their credit. They can even finance their home in a couple of years after discharge. Talking to a bankruptcy attorney will dispel all your bankruptcy related myths and get a clearer picture.


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

                        *Do you own a home?

                        Are you currently working?

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