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  • When Should You File for Bankruptcy?

    When Should You File for Bankruptcy?

    Financial losses are common to everyone. Going through financially tough times can lead to drastic consequences. Federal government understands that without timely intervention and help in the form of bankruptcy, many people will continue spiraling down the financial mess. However, you have to decide what the last straw before filing for bankruptcy is. It is important to understand that with insurmountable debt, you will require more time to come out of the situation.

    The U.S. Bankruptcy Code was created to help those people who made an honest mistake and due to unfortunate circumstances have amassed a debt which they aren’t in a position to pay back. Irrespective of the reason behind your financial problems (sudden unemployment, huge medical bills, etc.), you can find there are federal laws which offer respite to you and help you gain financial independence again, prompting you to look ahead in life.

    Though many of us may realize the financial issues plaguing us, it might be difficult to gauge the extent to which the damage is. You could consult bankruptcy lawyers for assistance regarding your financial predicament. Lawyers of Sacramento based law firm Recovery Law Group provide you a list of questions to ask yourself to understand your position with respect to the bankruptcy filing. These questions help you develop a better grasp of your financial position and its effects on your life.

    • Are you aware of how much debt you owe?
    • Are you worried about making payments every month?
    • Are you using credit cards to take care of your daily expenses and necessities?
    • Are you able to make minimum payments on your credit card balances?
    • Are you being contacted by debt collection agencies or bill collectors?
    • Are you avoiding any collection attempts being made to collect dues?
    • Have you faced symptoms like repossession, eviction, foreclosure, utility shutoffs or wage garnishments due to your unclear debts?
    • Do you feel like having lost control over your finances?

    If you are able to identify these situations, it means you are having severe monetary problems and require financial assistance. Though bankruptcy may create frightening images in your mind, it is one of the best ways to get you out of this unwanted situation. Consult bankruptcy lawyer to understand the procedure and take control of your finances.


      *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.

    • Review Your Credit Report before Choosing To File For Bankruptcy

      Review Your Credit Report before Choosing To File For Bankruptcy

      Reviewing your credit report annually is extremely important so that you are aware of your current financial situation as well as checking if the information about your payments and debts is being accurately portrayed to the credit bureaus. People looking for a way out of the financial mess by filing for bankruptcy should make it a point to review their credit report before filing to ensure that all their creditors are included in the documents and schedules. As a part of the filing process, you are expected to list all your creditors. A simple mistake of omitting any one creditor just because you didn’t receive any collection notice from them recently, can turn into a big problem. (more…)

    • Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

      Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

      The bankruptcy laws have been enacted to make life easier for people who are undergoing tremendous financial losses. However, despite filing for bankruptcy and getting a discharge, many times, creditors still harass debt filers for dues. Citing the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvarv. Title Cash of Montana Inc., et. al.), the Los Angeles based law firm Recovery Law Group respite is available to debtors from creditors who violate bankruptcy discharge. Such creditors can be held in civil contempt.

      How Jarvar v. Title Cash of Montana Inc., et. al. Bankruptcy Case Changed Things

      In the above case, debtors had filed for bankruptcy under Chapter 13 with Title Cash filing proofs of claim for 2 secured claims, an amount of $7,290 each. On a later date, they withdrew both secured claims to file a single POC for a secured claim of $14,605. The debtor’s case was converted to Chapter 7 and dismissed.

      As per the trustee’s final report, Title Cash had $6,046 in principal and $1,041 in interest. The debtor then filed for Chapter 7 relief in September 2004 with Title Cash scheduled as a secured creditor and received a discharge on January 1st, 2005. However, in September 2008, the debtor filed for a state court action against Title Cash with the latter responding with a counterclaim requesting in personam relief against the debtor.

      This led to the filing of an adversary proceeding for a violation of Section 362 and 524. The bankruptcy court granted summary judgment to the debtor for seeking relief for a discharge injunction violation. Since Title Cash couldn’t file a statement of genuine issues, the facts submitted by the debtor in her Statement of Uncontroverted Facts were acknowledged.

      The creditor (Title Cash) was in violation of bankruptcy discharge, as he attempted to make the debtor personally liable (in personam) for the debt post its discharge. This is not a rare occurrence but a common practice amongst creditors. Violation of debtor’s bankruptcy discharge costs not just the debtor’s time and energy but also money which is of great importance in the current scenario. However, there have been instances when debtors have received compensation for this behavior of creditors (violation of bankruptcy discharge).

      In case a creditor is asking for payments even after your debt has been discharged in bankruptcy, you don’t need to bow down to any pressure. Contact your bankruptcy attorney to deal with such creditors.


        *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.

      • Is There a Difference Between Bankruptcy & Debt Settlement?

        Is There a Difference Between Bankruptcy & Debt Settlement?

        A stroke of misfortune or sheer bad luck with monetary investments may result in severe financial problems for people. If you too are struggling through insoluble debts, you are faced with 2 choices as per Sacramento based law firm Recovery Law Group – filing for bankruptcy or opting for debt settlement. However, to become financially stable again, you need to choose between the 2 options available to you. Though many people are aware of bankruptcy, not much is known about debt settlement. It is important for debtors to understand the difference between the two, for them to choose the best option for themselves.

        What is Debt Settlement?

        An attorney or debt settlement company helps resolve a debt obligation in a debt settlement process. During the debt settlement process, negotiations are carried out with creditors with respect to getting discounts for the debtor when the latter has defaulted on making payments. Any unsecured debt including medical bills, credit card debts, etc. can be negotiated through this program, however, taxes, any government-backed loans or student loan debts are not eligible to be covered in this settlement. Any debtor who opts for this process should have a large sum of money to clear the settlement payment in a relatively short time frame. Through debt settlement, a debtor can protect all assets, get a quick resolution to their financial problems when the creditor accepts the debt settlement amount.

        Difference between Debt Settlement and Bankruptcy

        Debts incurred by any individual or organization can be classified as secured or unsecured. The most commonly used chapters of bankruptcy for consumers are Chapter 13 and Chapter 7. Through these chapters, consumers can reorganize their debts and pay off portions of their debt via a repayment plan or get a discharge on most of their debts respectively. However, certain loans such as tax debts, student loans, and some other secured debts cannot be discharged through bankruptcy.

        Which is a Better Option?

        Often people are confused between the 2 options available to get their debts discharged. However, it is found that between debt settlement and bankruptcy, the latter usually offers a better solution for most people. This can be attributed to the fact that:

        • Bankruptcy offers the filer a clean start with an option to rebuild their credit.
        • Dealing with creditors to get your debt discharged can be quite stressful and messy. Not only do you require to make lump-sum payments within a short frame of time. This is not the case with bankruptcy, as bankruptcy helps provide you a chance to rebuild your credit.
        • When you opt for debt settlement, you have to make some payment as per the negotiations, whereas in bankruptcy, your debts are cleared.
        • In the case of debt settlements, huge fee accompanies with the new monthly payment amount.
        • With bankruptcy, you get legal protection in the form of the automatic With this in play, creditors cannot file lawsuits against you, harass you by calling you at inappropriate hours or place or take away your wages, while the case is under progress.

        Since you are already in a financial mess, you shouldn’t make any decision regarding bankruptcy filing or debt settlement without consulting a bankruptcy lawyer. They are knowledgeable enough to guide you through the entire procedure.


          *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.

        • Excellent Tips for You After Bankruptcy

          Excellent Tips for You After Bankruptcy

          More often than not, circumstances cause people to take debts which they are unable to clear. Since debts keep on piling, the only solution to get respite from threats from creditors is filing for bankruptcy. Individuals, as well as business organizations going through a bad financial phase, get a new lease of life and a fresh financial start thanks to bankruptcy. However, bankruptcy lawyers of Sacramento based law firm Recovery Law Group suggest some tips for debtors to follow after their bankruptcy case are closed and all their debts discharged: (more…)

        • Hiding Assets Could Cost You More Than You Intend to Save

          Hiding Assets Could Cost You More Than You Intend to Save

          While filing for bankruptcy, it is mandatory for all filers to disclose their assets in their petition. It is extremely important that bankruptcy filers are truthful in their declaration and do not try to hide their assets. Some people have the opinion that if they hide their assets, those assets will remain secure and would not be taken away by the court during bankruptcy proceedings. However, probably unknown to them, they are committing perjury which is reprimanded by penalties, which in the long run may prove costlier to the filer. (more…)

        • Corporate Bankruptcy and the Stigma Attached to It

          Corporate Bankruptcy and the Stigma Attached to It

          Filing for bankruptcy is a practice that provides a new lease of life to not just financially struggling individuals but also ailing companies. However, the social stigma attached to bankruptcy may cause more mayhem in the business world. According to Los Angeles, based law firm Recovery Law Group a stigma does exist with corporate bankruptcy. However, there have been many instances where companies have flourished after declaring for bankruptcy. The latest case of Cadillac and General Motors is proof of the stigma attached to corporate bankruptcy. (more…)

        • Bankruptcy and its Impact on Divorce and Domestic Support Responsibilities

          Bankruptcy and its Impact on Divorce and Domestic Support Responsibilities

          Financial troubles are more common than people would like to think. More often than not, people opt for bankruptcy which can help reduce the burden of debt on the filer’s shoulders. However, despite bankruptcy, there are certain debts which cannot be discharged. These include government taxes, student loans, and divorce and domestic support. There is contention whether a private contract made between spouses in a pro se divorce case can be considered equivalent to a non-dischargeable domestic support obligation under the U.S. Bankruptcy Code. (more…)

        • How to know it’s Time to Consider Bankruptcy?

          How to know it’s Time to Consider Bankruptcy?

          Misfortune can happen to anyone, at any time. It is important to keep a steady head and look for the best possible solution to your financial troubles. Unfortunate circumstances can cause even the most responsible person to go through a bad financial period. An unexpected long illness, job loss, or expensive divorce can derail even the best people financially. In case you too are going through such a phase of financial struggle and are wondering whether it is time to file for bankruptcy, Sacramento based law firm Recovery Law Group provides you four signs to identify the problem and consult a bankruptcy lawyer.

          Clearing Your Debts Using Your Retirement Funds

          Your retirement funds are supposed to be helping you in your old age. If you have to dip your hands in this corpus to pay off your debts, you are essentially depriving yourself of a comfortable old age. In case you are considering or have gone ahead with early withdrawal from your retirement funds, things are more serious than you thought. Paying off your loan by using your retirement funds will hurt you in the long run.

          Your Balances Refuse to Go Down

          Despite making continuous payments with respect to your debts, the amount due is not getting reduced. If the amount you are repaying is merely covering the interest portion of the debt without making any change on the principal amount, you need to consider bankruptcy. If you are unable to fully pay off your debt within 3 years, it would be best if you consult an expert for legal advice regarding your debts.

          Family Will End up Suffering if You Don’t File

          Managing your debts and caring for dependents of your family can be not only emotionally and physically but also financially draining. If you are finding it difficult to manage both worlds, it is recommended to take care of your debts by filing for bankruptcy. Not only it helps you get rid of your loans, but it also allows you to get a fresh financial start so that you can effectively take better care of your family.

          Your Mortgage is Under Water

          If you are way over on your debts, your home, and other property might go under water if adequate steps aren’t taken soon. Bankruptcy can help you take care of the above-mentioned problems as:
          • It can help wipe out any debt due after foreclosure.
          • It can remove a home equity loan or second mortgage.
          • It can help remove financial stress and assist you in making on-time payments or obtain loan adjustment so that you can retain your home.
          • It can help reduce your debts to make money available to make the mortgage payment.
          • Large tax bills due to the cancellation of debt income can be avoided.

          Every individual has had their shares of financial issues, the circumstances of which may differ from one individual to another. Indicators of financial problems and debts might vary, but it is important to understand the subtle signs and seek help from professionals on time. consulting a bankruptcy lawyer if you face any of the above-mentioned signs is important before things spiral out of hand and you encounter trouble making payments or your income starts getting affected.


            *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.

          • Dealing With Business Debt? Can Chapter 13 Bankruptcy Help?

            Dealing With Business Debt? Can Chapter 13 Bankruptcy Help?

            Many people wish to turn entrepreneurs and often succeed in their endeavors too. However, not every business idea takes you to the zeniths of the sky, some fight falls flat and leave you with a huge debt to clear. In case you belong to the latter category, there is no need to worry if you are looking to reorganize your debts. U.S. federal laws have come up with Bankruptcy Code to help individual and organizations to overcome their financial losses by filing for bankruptcy under various chapters. Small business owners in need of financial assistance can consider Chapter 13 bankruptcy to come up with a repayment plan based on their type of debt, income, monthly expenses, assets you need to keep your home and business in operation. (more…)