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Tag: chapter 13 bankruptcy California

What is No-Asset Chapter 7 Bankruptcy?
While the Chapter 7 is known as the bankruptcy code which sets off debt from the liquidation of assets, it can be surprising to learn about No-Asset Chapter 7 bankruptcy. It could be even more surprising to note that most of the Chapter 7 bankruptcy California cases are No-Asset cases. The no-asset case is a scenario where, the filer does not give in any asset or cash to the bankruptcy trustee for liquidation. The filer instead keeps possession of all the assets, he/she owns. The lenders or creditors will not expect any proceeds or debt settlement, as there would not be any since, the filer has no assets to give in to the bankruptcy trustee.

What is the core of Chapter 7 bankruptcy?

Chapter 7 classifies all assets held into two types. One is exempt and the other one is nonexempt. The nonexempt assets are given up for liquidation and their proceeds are used to settle the debts of the lender. Exempt assets are assets which are of basic necessity and have various codes and sections wherein they shall be exempt against the Chapter 7 bankruptcy procedures. These assets need not be given up during the Chapter 7 bankruptcy course. To know if your asset is exempt or non-exempt as per your state exemptions, log on to https://bankruptcy.staging.recoverylawgroup.com/.

How can a case turn into No-Asset case?

If you have used all the exemptions and have all your assets in the blanket of exempt assets and none in the nonexempt category, your case becomes a no-asset case. Close to 70% Chapter 7 bankruptcy witnessed in states like California, Texas, New York, etc., see no-asset case. Once you have protected all your assets under some or the other state/federal exemption, the bankruptcy trustee cannot liquidate the same to settle the debts of the lenders. In this scenario, the court sends notice information to all the lenders associated with the filer confirming no proceeds or debt settlement from the Chapter 7 bankruptcy filing.

The lenders or creditors would not need to file a proof of claim or record the amount owed by the filer. All the debts shall be released once the bankruptcy case has been settled by the court. However, if during the investigation, bankruptcy trustee comes across some nonexempt asset, the trustee will notify the lenders and collect documentation to allocate the hence generated proceeds towards the debt. For better understanding or help, reach out to +1 888-297-6203 now for the most professional and experienced attorneys California in town.
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August 7, 2019
Relief from Credit Card debt through Chapter 7 Bankruptcy
Chapter 7 Bankruptcy law in the USA offers people to declare bankruptcy to elicit relief from the debts. The debtor seeks this law when he/she is unable to clear the debts. People may file for bankruptcy when they have little or no assets to clear the debt. The creditor must be content with little or no payment. To know more about bankruptcy and its implication on the debtor and creditor, log on to https://bankruptcy.staging.recoverylawgroup.com/.

How can Chapter 7 help to clear credit card debt?

A client can file a case under chapter 7 when he is unable to clear his credit card debt. The court will only accept the case when it finds no evidence of fraud and any misuse of the law. The court appoints a trustee that examines the debtor’s assets and property which could be sold to pay the creditors. The property if at all is sold at market price to pay the creditors. The debtor, if has no assets to repay the creditor is often given relief from the debt. The debt then falls under discharge and the debtor is free from all debts.

However, the case can backfire if the debtor is found to be engaging his credit card on luxury items after filing the case.
- Buying luxury goods
The court is vigilant and examines closely the conduct of the debtor. If the debtor is buying anything above $675, within 90 days of applying for bankruptcy, the case can be dismissed by the court. Any goods above $675 fall under luxury consumption and the court does not allow such extravagance by the client. However, any expenditure availed against basic daily consumption of goods like food, clothing, etc. does not fall under luxury usage. The client may buy but must be careful of overindulging after filing the case under chapter 7.
- Withdrawing money
There could also be a limit to how much money you can withdraw after filing the case. The debt could turn into non-dischargeable if the client withdraws more than $950 within 70 days of applying for bankruptcy. The amount, however, is refreshed with every few years.

The court brings in such rules to prevent fraud and false filling of bankruptcy. To get the best advice and tips for filing under chapter 7, you can visit- Recovery Law Group.

The benefit of the doubt for the creditors

The court ensures that the creditors must also get due justice. While the debtor takes relief under chapter 7 bankruptcy California the creditor gains nothing but a hole in his pocket. The court allows the creditor to file a petition against the debtor. The creditor must file the petition within 60 days of the first meeting if he wants to challenge the debtor.

The debtor, on the other hand, can hold or halt the creditor if he files a timely reply to the creditor’s notice of non-dischargeable. The court then holds a hearing in benefit of both creditor and debtor, each being given an equal chance to prove their case. You can call 888-297-6203, for advice to make your case strong.

Alliances of debtor

When the debtor avails a credit card, he/she needs a guarantor. A guarantor or a consigner is a person who takes the responsibility of the debtor. They are bounded by the contract to repay the debt. When the debtor files the chapter 7 bankruptcy Californiabankruptcy case under chapter 7 the discharge to the debt is limited to the debtor and cannot be extended to the guarantor or consigners. Anyone other than the debtor, if is obligated for charges that the debtor has made, will still be liable after he/she files chapter 7, even if the case is in the debtor’s benefit. For finding the best attorney who could interpret and suggest solutions for your case, dial in 888-297-6203 now!
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August 5, 2019
The Means Test For Chapter 7 Bankruptcy Eligibility
Bankruptcy has different Chapters which can have certain benefits or disadvantages depending on the specific financial condition of an individual. The first step before deciding on filing for bankruptcy is to analyze the eligibility aspects. An individual can qualify for one or more Chapters simultaneously or there could be some adjustments made based on the suggestions of reliable attorney to qualify for beneficial bankruptcy code. Recovery Law Group can not only help you find an excellent attorney but can also guide you through with some basics of bankruptcy and its Chapters.

Chapter 7 ideology

Chapter 7 is based on the idea of releasing debts with all disposable assets. Apart from basic assets, all assets are liquidated to pay off as many dues as possible and the remainder shall be discharged or wiped out. This is usually the last resort for people when they console themselves to lose some of their assets and wipe out other debts in order to fresh start a new financial journey. However, with some exemptions and ability to safeguard some essential assets, it can be more than handy under most circumstances.

‘Means’ test and Median

A means test is an eligibility criterion which has been put to use to make Chapter 7 accessible only to poor people. Due to misuse of Chapter 7 by average and upper-income individuals, a means test clause was introduced several years back. In order to verify eligibility with respect to the Means test, one has to calculate his/her household disposable income. This disposable income is calculated using the average income in the recent 6 months less some of the standard deductions associated with the basic necessities that have been pre-defined by the state regulations or the federal regulations. The actual expenditure is disregarded, and the state standard deductions are to be applied under most circumstances. Higher the disposable income, the lower the chances of qualifying for Chapter 7.

The means test is applicable for all filers except the business bankruptcy filers. The calculation for disposable income can be skipped if your income is below the state or federal median, whichever your bankruptcy court follows or approves. Only if your income is above the state median, will you need to chart out disposable income and the standard exemptions.

Court’s intervention

Under rare circumstances, even if you pass the means test, the court might switch you to Chapter 13 if your actual expenses are lower than the availed standard exemptions. Sometimes, you might not qualify for all types of exemptions and hence, the court has every right to review the exemptions or deductions claimed and make necessary adjustments if required. Different forms are available at your disposable like the Form 122A-1, For, 122A-2 and Form 122A-1 Supp for calculating your disposable income for the means test.

Business Chapter 7 bankruptcy

The biggest advantage for a business or a sole proprietor with business debt is that they do not have to go through the complicated means or median test. A business could be LLP, corporation or a partnership. For a sole proprietor, it can be tedious to acknowledge whether he is a business debtor or a consumer debtor. If the sole proprietor has debts that are predominantly of business nature say above 90%, he/she will be considered as a business debtor. On the other hand, if consumer debts are higher, the sole proprietor also might have to undergo means test and qualify similar to an individual for a Chapter 7 bankruptcy California.

For more insight on this and many more bankruptcy-related topics dial in the experts on 888-297-6203.
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August 4, 2019
How does a credit report react to Chapter 7?
Bankruptcy can have several benefits, like wiping off your debt, giving you a fresh start, helping you with all the financial mess, offering some breather to recollect your finances, etc. However, it does impact your credit score, which is interlinked to your loan taking ability in the future. In fact, as per some of the latest reports, it might take over 10 years of worthy credit trust to repair the damage caused by filing for bankruptcy once. To know more such facts and to keep up yourself with the most current bankruptcy related aspects, log on to.

What are the three most important things reported on my credit report?

The credit report hosts a lot of information which most individuals would not have predicted for. It is a metric that allows banks to make a thoughtful lending decision and hence, credit report might house some more than personal information as follows-
- Employers current, past and their locations
- Credit history and their payment history
- All other information is available on public records that may include tax liens, court cases, judgments, bankruptcy filings, etc.
Impact of bankruptcy on credit report based on Chapters

A missed payment or a delayed payment results in damage that can be rectified in 7 years. But bankruptcy damage can take close to 10 years for recovery of the damage caused. The impact of Chapter 7 and 13 on credit score can be seen below-
- A chapter 7 bankruptcy filed remains listed on the credit report for 10 years. It has to be removed after completion of 10 years since the bankruptcy was filed.
- Under Chapter 13 bankruptcy California, the penalty is similar to a missed or delayed payment which could last up to 7 years from the date bankruptcy was filed. This is more convenient as you would be extending only 2 years of the negative credit report if your bankruptcy payment plan lasts for 5 years.
Another factor to consider whether the impact of the credit score can be significant or not is your existing credit score. Some people with excellent credit score filing for bankruptcy might end up losing over 100 points. People with a lower credit score will also take the pondering but it will be slightly less daunting than the loss for the high credit score bankruptcy filers.

Credit report accuracy checks

It is a healthy practice to track the progress of your credit report with your financial transactions. Under most cases, the credit report tracks transactions accurately however, there are situations when credit report has seen faulty reporting. By making regular audits on credit report can keep you on track and informed about your credit score and the perception it is creating for the lenders and the financial institutions.
*Are you more than 60 days past due on your mortgage?
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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.
August 3, 2019
Filing for Bankruptcy is Easy When You Have All Details!
Filing for bankruptcy can be quite traumatic for people. Dealing with financial instability can take a toll on you. Having to look for various forms to file the bankruptcy petition can be an added burden. However, filing for bankruptcy is not that tough when you have the assistance of able bankruptcy lawyers, say Los Angeles based bankruptcy law firm Recovery Law Group. A copy of official bankruptcy forms can be printed from the official United States courts website. Additional forms required by local bankruptcy court might have to be filled apart from the official forms. The rules and requirements for filing petition might also differ slightly in local bankruptcy court. These forms can be obtained from a local bankruptcy attorney or the bankruptcy court clerk. Alternately, these can also be available on the specific website of the bankruptcy court. You can fill the form with or without an attorney. However, you should consult your case with expert bankruptcy lawyers at 888-297-6023.

Filing the form in the right bankruptcy court is equally important. The attorney representing you prepares the required forms, gets them reviewed and signed by you before filing them with the court. This can be done either physically or electronically. In case you decide to file for bankruptcy without a lawyer, you need to ensure that you physically file the forms in court. However, some courts have pilot projects which allow debtors without lawyers to file bankruptcy forms electronically. You also need to find out how many copies of the form you need to file, the order of the forms and any other requirements before filing the papers.

Several federal bankruptcy courts are functioning in the country. These are divided into judicial districts with every state having at least one. Bankruptcy papers can be filed in either the district where you resided for a major part of the 180-day period before the bankruptcy filing or the district where you have a home despite i.e. domicile while living somewhere else temporarily (such as military base). People who have a business or substantial assets in a place different from where they live, can have the option of filing bankruptcy from that place too. However, you will need to consult with local bankruptcy attorneys to see the bigger picture.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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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.
August 3, 2019
Common Avoidable Mistakes for Chapter 7 Means Test

A Means test is an eligibility test that is carried to assess the eligibility for Chapter 7 bankruptcy. However, means test is not one of the simplest tests to carry out, which creates possibilities of multiple errors. Some of them could be avoided and the eligibility for Chapter 7 can be made much easier. To learn more about Chapter 7, eligibility, alternatives, and best attorneys in your town to help you deal with this financial crisis, log on to Recovery Law Group . Some quite common avoidable errors can be listed as follows-

Do you really need to take the Means test?

It is important to first assess, whether doing all the calculation and adjustment for ‘means test’ is really worth or not. There are two situations wherein the means test becomes unnecessary. In the first scenario, your income is way below that state median and there is no need to go ahead with the means test as it automatically qualifies you for Chapter 7. The second scenario is when your income is too high and taking some standard expense deductions based on state rule book would not help. Under both scenarios, you would not want to make unnecessary calculations with respect to the means test as you either directly qualify or disqualify.

Are you filing a business bankruptcy?

In bankruptcy terms, there are two types one is business and the other is a consumer. Consumer bankruptcy refers to the loan taken for personal purposes and not intended to be used for business purposes. If you have a combination of loans which is business as well as personal, the percentage of loans will determine whether it is a consumer or a business bankruptcy. If the business loans exceed the personal loans by some margin, it can be referred to as a business bankruptcy. If the personal loans are higher or if the business loans are marginally higher than personal loans, it will be referred to as a consumer bankruptcy.

It is essential to understand this distinction as there is no need for a ‘means or median’ test if it is a business bankruptcy. Many people do the ‘means test’ with their business transactions and struggle while that might not be required at all. Similarly, people with some business loan skip means test only to realize, they might be subject to it.

Determining the household size

Coming up with the household size for comparing state median or for calculating some of the expenses for ‘means test’ can be a challenge. It is not as easy as it looks. While some courts allow for all individuals in the household unless and until their income is accounted for and their part or full responsibility of the household members on the bankruptcy filer. On the other hand, some courts allow for a household count of people who are dependent on the bankruptcy filer financially. Arriving at the right household size can prove challenging sometimes. It is always a better approach to opt for a household count of people who are directly financially dependent on the filer.

Income mismatch and duplication

The income to be reported in the court with the bankruptcy filing application has to be used in the same capacity for the means test. People tend to use their recent monthly income instead of the average six months of income from the bankruptcy filed date. It can also happen that a married filing joint couple might end up including a spouse’s income even if the spouse isn’t filing for bankruptcy in his/her individual capacity. This can lead to an unnecessary hike in income. Similarly, accounting for double expenses when the spouse isn’t filing for bankruptcy is also not acceptable by the court.

Child Support

There can be scenarios that child support is paid out in the form of food items, clothing, and other essentials of the child. Since the child support is not being received as cash, it may not be reported as income. If you are a bankruptcy filer, paying for child support, it can be included as an expense.

Mortgage payments and Standard Housing Deduction

The common practice is to include both standard housing deduction and mortgage payment (as an adjustment in the following line). However, under Chapter 7, the assets might be liquidated. Hence, if you are giving away your home, you are not allowed to use mortgage payments in the expense column. You shall only be eligible for the standard housing deduction. The approach may vary based on courts and it is best to have a consultation with the attorney regarding this.

Allowable and non-allowable deductions

Determining what deductions are allowable and not allowable depend on different circumstances. It has often come to notice of people missing out on certain allowable deductions and opting for deductions which they aren’t eligible for. This can be best addressed by reaching out to an experienced bankruptcy attorney. The number is 888-297-6203. Don’t wait, dial in right now!

August 2, 2019
Which Debts Survive Chapter 13 Bankruptcy?

People often opt for bankruptcy to get control over the spiraling debts they have accumulated over a period. While in case of Chapter 7, your non-exempt property is liquidated to pay off your creditors and any remaining unsecured debts are discharged; Chapter 13 helps you to reorganize your debts and make payments towards them over a period of 3 to 5-years’ time. Your unsecured nonpriority debts are paid off through the repayment plan and any subsequent debts are discharged at the end of the period. Los Angeles based bankruptcy law firm Recovery Law Group, lawyers inform that there are certain nonpriority, unsecured debts which are not discharged even after bankruptcy. To know more about your case, and debts remaining after bankruptcy call 888-297-6023.

Some of the debts which can survive Chapter 13 bankruptcy include:

Domestic support obligations

This debt is compulsory and cannot be discharged, neither in Chapter 7 not in Chapter 13 bankruptcy. You must ensure that you make 100% repayment on child and ex-spouse support during the course of your repayment plan and even after that.

Criminal penalties

Any fines you owe due to any convictions for crimes you committed (including traffic ticket) cannot be discharged, even in case of Chapter 13 bankruptcy.

Fines owed to government agencies

Any fines that you owe the government, or you have been subjected to penalty, such debts are not discharged. However, in case the government agency calculates the fine due to you being overpaid benefits or your failure to inform about the income, then the amount overpaid is dischargeable like unsecured debts. The fine itself is not dischargeable.

Certain taxes

Income tax debts which were due within the 3-year period prior to bankruptcy filing date are priority debts which do not get discharged even if your bankruptcy ends abruptly. Any tax debts which remain post ending of your bankruptcy need to be paid outside of bankruptcy. Alternately, you could get your Chapter 13 bankruptcy converted to Chapter 7.

Debts due to DUI

DUI is a punishable offense. In case you injure or cause the death of any person while driving under influence, the debts so arising are not dischargeable. It is important to remember that any debts arising due to personal injuries caused due to drunk driving are not dischargeable, but any property damage caused due to driving under influence is dischargeable.

Debts due to willful or malicious intent

Debts arising due to any willful and malicious act which results in personal injury are non-dischargeable. In case a creditor obtains a judgment in civil court against you, the debts won’t be discharged. Unlike Chapter 7 bankruptcy, which discharges reckless driving debts, Chapter 13 does not allow this. However, Chapter 13 includes debts arising due to personal injury or death only, and not damage to personal property, as is the case with Chapter 7.

Student loan

Unless you can prove substantial hardship, student loans do not get discharged during bankruptcy. However, you might get a discharge on the interest on student loans in some cases but not on the principal amount.

Fraudulent loan

Any debt obtained due to theft or fraud cannot be discharged during Chapter 13 bankruptcy California. Such debts are only discharged if the creditor is unable to establish the fraud in bankruptcy court.

Creditors you forgot to list

When you file for bankruptcy, you are required to list all your debts and creditors on the papers. The court then uses this comprehensive list to contact your creditors to inform them of your bankruptcy. If the creditor is aware of your debts and the debt is dischargeable, then the debt will be discharged. However, in case any creditor is not listed on bankruptcy papers or has shifted residence and gets no notice of your bankruptcy, those debts will survive bankruptcy.

August 1, 2019
Impact of Chapter 13 on your credit score
The credit score takes a solid beating when bankruptcy is filed in general. But the common question is to know which Chapter impacts the credit scores the most. The impact may also last for several years when bankruptcy is filed. Filing for bankruptcy under Chapter 13 is slightly more beneficial and lighter on your credit score, especially when compared to Chapter 7. If it is possible not to file for bankruptcy, that shall be the best option. To know if you need to file for bankruptcy or not, log on to Recovery Law Group to get a host of information and make the right decision

What is the choice of a lender?

The credit score impact is determined by the lender’s inclination towards the debtor choice. Most lenders have a slight inclination towards Chapter 13 filers. Unsecured debtors are likely to receive more portion of their debts when Chapter 13 is filed, hence, they always like Chapter 13 filers. This is quite reverse during the Chapter 7 bankruptcy. Unsecured creditors might end up receiving nothing out of the Chapter 7 bankruptcy and all their debt has to be written off. Also, the exemptions available under Chapter 7 are beneficial. A Chapter 7 bankruptcy can very less nonexempt assets for liquidation and recovery. Overall, the debt released or discharged is larger in Chapter 7. This is the primary reason why lenders do not seem to prefer Chapter 7 history debtors.

On the other hand, with Chapter 13 3-5 years, there is an attempt by the debtor to pay off the maximum chunk of secured as well as unsecured debts. Until unless the claims are valid and well supported with a proof, the debtor ends up paying off a good chunk of debts. This makes it favorable for a lender and hence, Chapter 13 is the lender’s choice.

Credit score impact

Filing of bankruptcy is usually the last choice. If you are considering filing bankruptcy, you must have been struggling with delayed or missed payments from some time now. This has already impacted your credit score significantly negatively. Filing of bankruptcy will only prevent further damage to this already impacted credit score. But, if your credit score is high and you choose to file bankruptcy, the impact will be huge too. There can be a drop of about 100 points depending on circumstances on an average once you file for bankruptcy.

The formula used to calculate or estimate credit score is very different. Different agencies use different formulae and are reluctant in disclosing the same. Filing bankruptcy via Chapter 13 or Chapter 7 has an almost equal negative impact on the credit score. But, as realized earlier, Chapter 13 filers might have some edge for future, if they are to avail any sort of credit in future after filing bankruptcy previously.

Availing credit after filing bankruptcy

The Chapter 13 payment plan lasts for about 3-5 years. During this period, the filer is prohibited from taking any additional credit. This is one of the biggest flaws of Chapter 13 as during an illness, or major breakdown or any other such circumstances, you just cannot avail any sort of credit during that period. The bankruptcy court understands certain situations wherein additional credit can be necessary, for this to be allowed, your attorney might have to pass a motion in the court, which shall allow you to workout with some creditors that facilitate credit to even people in Chapter 13 bankruptcy payment plan.

Availing credit after bankruptcy will cost big. High-interest rates and a lot of paperwork is common if you try to avail credit after bankruptcy. It is key to enter a stabilized financial situation and then take credit only if necessary. Once, you start availing credit and paying it off in right times, the credit score as well as interest seems to improve with time. There is not much difference in this improvement between a Chapter 7 or Chapter 13 bankruptcy filer California. However, in crunch time, Chapter 13 filers are bound to get a slight advantage over Chapter 7 filers.

Credit score reporting corrections

It is a good practice to verify the credit reports. After filing bankruptcy some of the debts might still be listed as ‘unpaid’, which can negatively influence the credit eligibility in the future. Also, the debt released should be appropriately reported as ‘included in bankruptcy’ and not ‘dismissal’. For understanding your credit report or to know more about bankruptcy or the Chapters, call 888-297-6203 now and address all your questions from in-house experts.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
YesNo

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.
July 28, 2019
Filing Bankruptcy When Unemployed
Filing for bankruptcy does not specifically mention the requirement of an income source. But, directly or indirectly there is a significant impact of employment on eligibility for Chapter 7 and Chapter 13. If you have lost a high salary job recently, you might end up qualifying for Chapter 7 and at the same time, if you just lost the job and are unemployed while filing bankruptcy, you won’t qualify for Chapter 13. It’s really tricky when it comes to employment and bankruptcy. To know more such interesting stuff about bankruptcy, log on to Recovery Law Group.

What are the employment factors affecting bankruptcy?

The past, present, and future all three aspects are touched while looking into the employment status while evaluating bankruptcy. Some of the key aspects relating to employment that needs to be assessed can be listed as follows-
• The duration or tenure of employment
• The pay scale difference between the previous employment and the current employment
• Possibilities of availing job in the near future if unemployed
• Other sources of income
The four factors listed above are the most important discussed aspect that can determine whether you will have to file Chapter 7 or Chapter 13. The employment and income sources become extremely important for Chapter 13 as you need some disposable consistent income in order to qualify.

How does employment impact Chapter 7?

Chapter 7 is basically the disposal of all nonexempt assets to settle the debts. Its one of the fastest ways to get over debt, release maximum unsecured debt, and have a fresh start with finances once again. It is quick too. Being unemployed actually helps you to qualify for Chapter 7. A means test is the basic eligibility test for the filer to be eligible for Chapter 7. Means test basically is the comparison of your income with the median state or federal income. If your income minus the standard expenditures are less than the average median of state or federal (depends on the state in which bankruptcy is being filed), you qualify for Chapter 7 bankruptcy.

The average gross income earned by each and every family member over a period of recent six months is considered for means test eligibility. If the income is above the state/federal median, some standard deductions are reduced to account for daily expenses based on a number of family members. If the income then falls short of the state or federal median, you qualify, or you will have to consider other alternatives. This also means if you have just become unemployed, the average income over 6 months might just pull you over the median income and result in ineligibility to file under Chapter 7. The best practice then would be to wait until the average falls below the median. Similarly, if you get a new job during the bankruptcy case is in progress, the dynamics can change based on circumstances.

How does employment impact Chapter 13?

With respect to Chapter 13, the case is completely the opposite. No income means no eligibility for Chapter 13. The stability of the job, the tenure of the employment, and the disposable income play an important factor in determining eligibility for Chapter 13. If you are unemployed and do not possess any other strong and consistent source of income, it is highly unlikely to qualify for Chapter 13. If you are unemployed but possess some additional sources of income like rent/royalty, social security benefits, nonemployment compensation, pension, etc., there is still a possibility of being eligible to file under Chapter 13. Even a sole proprietor business income could qualify as a source of income however, the eligibility ultimately shall be at the court’s discretion on the case to case basis.
There are many ways to be eligible for Chapter 7 and Chapter 13. You need the help of the right attorney. Call +1 888-297-6203 right now for the best solution for your eligibility concerns.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
YesNo

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.
July 26, 2019
Mortgage Foreclosure in California
It takes significant effort and hard work to be able to afford a home mortgage in California. The news across Roseville which is about loan foreclosing is very saddening. The thought of losing home can be worrying for anyone. Residents despite several efforts are not being able to safeguard their home due to mortgage foreclosure in Roseville, California. To know more about mortgage, secured/unsecured loans and other important financial aspects, log on to Recovery Law Group for complete a to z knowledge.

Types of home mortgage and lien

Even millionaires and billionaires have a mortgage for their homes as affording a home in California is not an easy task. Accumulating thousands of dollars at once is not at all easy. People with a home mortgage will definitely agree with that. While some people take up a higher percentage of home mortgage and a lower percentage of down payment, the rich ones might just opt for the reverse if they have liquid funds in their hands. The second method to avail home loan is to buy offering equity in the home after the purchase of the home. No matter if you choose the first one or the second one, there is bound to be a lien for the lender/creditor on your home. Lien is a right to liquidate or acquire the asset in case the debtor has defaulted or is not even in a position to pay off the debts.

Types of foreclosures

If the debtor fails to make timely advances to the home mortgage lender, the lender has the authority to foreclose the mortgage loan. Foreclosure results in selling of home and clearing of dues for the lender. There are basically two types of foreclosures commonly seen in case of a home mortgage-
- Judicial Foreclosure
As the name suggests, judicial foreclosure refers to a judicial clause being implemented. Every home mortgage has an agreement and power-of-sale clause attached in the trust deed document. This is activated when the debtor defaults on multiple payments. The court-appointed trustee usually sells the home and facilitates the proceeds of the home to the lender.
- Nonjudicial foreclosure
Nonjudicial foreclosure is an out of court sort of settlement which is the desired one by most lenders as it is less costly and quicker. The lender usually takes over the home and either use it or auctions it to get his/her debt recovered.

How to prevent unauthorized nonjudicial foreclosure?

The nonjudicial foreclosures are being forced upon the Roseville home residents is really shocking. Most residents do not know their rights and are being tricked into quick foreclosures and auctions of their residence. In order to better equip you, we shed some light on your rights if the lender tries to foreclose your home mortgage nonjudicially-
- Firstly, the lender cannot simply initiate foreclosure, he has to connect with the resident, discuss and evaluate his/her financial situation
- Even after the first step, the lender has to wait for at least 30 days, to begin with the process of foreclosure. During these 30 days, you can consult an attorney, decide on viable ways to address the situation, negotiate and find a solution to protect your home.
- Also, if your home mortgage agreement is void of any power-of-sale clause, the lender then has to consider the judicial foreclosure option only as the nonjudicial foreclosure can be illegal.
Judicial foreclosure is pretty uncommon in states like California due to the high cost of litigation, time and fees. However, judicial foreclosure can prove beneficial in 2 ways for the resident debtor. Those ways can be listed as follows-
1. The debtor or home resident has the option to repurchase the home during the auction.
2. The California state regulations allow also make way for a repurchase of the sold home from the successful bidder up to a time frame of one year.
There are several other rules and laws that when considered can prove beneficial for a debtor or a lender in different ways. A qualified attorney can certainly be of great help!

Bankruptcy and home mortgage

Under most circumstances, a home can be preserved when filing a bankruptcy. It can be even more so in the case of Chapter 13 bankruptcy. By use of tactical exemptions, one can also prevent home mortgage under Chapter 7 bankruptcy California too. You just need the right advice to safeguard your residence from foreclosure. It isn’t far away either. Dial 888-297-6203.
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July 20, 2019