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  • Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

    Use Chapter 13 Bankruptcy to Prevent Foreclosure of Your Home

    One of the major benefits of filing for bankruptcy is the automatic stay. From the date of the bankruptcy filing, an automatic stay is enforced which puts a hold on all collection actions including threatening phone calls and messages, repossession, and foreclosure. This has to be abided by all parties concerned and failure to do so can result in a legal battle as was seen in case of Caridad Hileman. The California resident filed for Chapter 13 bankruptcy but her case was dismissed. She didn’t want to lose her house to foreclosure, hence she filed again after a few months.

    Since Caridad filed for bankruptcy a second time within a year, the automatic stay could last only for 30 days, as per 11 U.S.C. § 362(c)(3). The automatic stay can be extended but she was a day late to file for an extension and thus the automatic stay expired. Despite everything, Caridad continued making payments for her home till the bankruptcy plan was officially confirmed where a major part was made up for mortgage payments.

    She was supposed to pay court-mandated payments for the entire duration of her bankruptcy and continue making payments till she cleared the dues. Since she didn’t want her bankruptcy case to be dismissed again, Caridad continued making payments, but was shocked to find that the bank refused payments just one month after confirmation of her repayment plan! Despite the court’s confirmation of the Chapter 13 plan, the bank proceeded with foreclosure. Despite Caridad making payments, the bank argued that since automatic stay had expired, they have the rights to foreclose.

    Can lawyers help in such cases?

    Forced with no other choice, Caridad filed a petition in the court against the bank. The court ruled in her favor as a confirmed plan is binding to both the debtor and the creditor. Just like debtor cannot refuse to make payments as per the repayment plan, the creditors also cannot foreclose or repossess the property. The creditors can object or reject a repayment plan while it is under consideration by the court. However, once it is confirmed, they have to abide by it, even if it is done despite their objections. Since the bank had not filed any objection against the plan and also not appealed to it, they were bound by the plan and had to continue accepting the mortgage payments as well as abandon foreclosure proceedings.

    According to Los Angeles based bankruptcy law firm Recovery Law Group, foreclosure can only take place if the bankruptcy case is dismissed. This takes place if the debtor has defaulted on making payments. In case of extension motion was filed on time by Caridad, she would not have to have to fight the case against the bank in court. Following the plan is extremely essential if you wish to protect your assets from repossession or foreclosure. In case you are facing problems managing your finances and find dues accumulating, it is time to consult a bankruptcy attorney. Call 888-297-6023 to have a free consultation regarding your case.


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

      *Do you own a home?

      Are you currently working?

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

    • Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

      Can Chapter 13 Bankruptcy be the Solution for High-Interest Credit Cards?

      Most people survive by using credit cards. Unfortunately, credit cards charge up very high-interest rate somewhere nearly 25%. Ultimately you end up paying much more than your debt. In the long run, you end up in debt for a long period of time. Let’s say you owe $20,000 on your credit card bill. You will continue making a minimum payment over a 20-year period and end up paying nearly 5 times more than what you actually borrowed. With a monthly payment of $400, you will be able to clear your debt in 23 years! You also end up paying nearly $100,000 as interest on a $20,000 loan. Even if you increase the payment you still end up paying a lot of interest. Even if you double your payment to $800 you end up paying $8000 as interest over the same principal amount. Considering that this is a lot of money, most people are looking for better options to pay off their debts.

      Despite increasing your monthly payment, you still end up paying a lot of interest on your credit card debts. Dallas based bankruptcy law firm Recovery Law Group lawyers suggest filing for bankruptcy under Chapter 13 as a viable option. Bankruptcy seems a good solution. Filing for chapter 13 results in the creation of a repayment plan, in which, you will make monthly payments to your bankruptcy trustee who would distribute it amongst your creditors in a pre-determined share. The payments continue to be made over a period of 3-5 years. After the end of your repayment plan, any unsecured debts such as credit card debts, personal loans, and medical bills are discharged.

      During chapter 13 bankruptcy, for a debt of $20,000, your monthly payments come to $425. Thus, you end up paying a nominal amount of money ($25,500) towards your credit card debts over a 5-year period and end up saving nearly 15 years of your life. Though monthly payments do not go down, you end up saving nearly $85,000! Chapter 13 also helps for other loans like those for home or car. However, since filing for bankruptcy is a matter of grave concern it is important to consult an expert bankruptcy attorney before making any decision. In case you are looking for a bankruptcy attorney to consult for your case, call 888-297-6023.


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

        *Do you own a home?

        Are you currently working?

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

      • Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

        Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

        Bankruptcy is confusing and terrifying to most common people. Though there are benefits associated with it like automatic stay and discharge of unsecured debts at the end of the bankruptcy, sometimes, a bankruptcy case might be ‘hijacked’ by another debtor who wishes to take advantage of your bankruptcy case and the subsequent automatic stay. Automatic stay helps in putting arrest to all collection actions by creditors including repossession, foreclosure, threatening emails, phone calls, etc. However, Los Angeles bankruptcy lawyers https://bankruptcy.staging.recoverylawgroup.com/ inform, creditors may request a relief from the automatic stay clause. This happens in case debtor “participated in a scheme to delay, hinder, or defraud creditors.” When such a case happens, the debtor is often caught unaware and generally clueless about their options.

        What is property dumping?

        Many people are unaware that any such term exists. Some people piggyback a ride on others’ bankruptcy cases, availing the benefit of the automatic stay to protect their property. This happened with Dana when she filed for bankruptcy. A local bank filed for a motion alleging that she had defrauded and failed to declare her assets and hide them so that the bank couldn’t make collections on a house in Ventura County. Unfortunately for Dana, that house didn’t belong to her and neither did she have any knowledge of the occupants. But her bankruptcy case was about to be dismissed because of some property whose existence was completely unknown to her.

        The original owner of the property in concern here was another California resident, Angelica who was nearly $40,000 delinquent on her mortgage. She used to check public bankruptcy records to find a person who had recently filed for bankruptcy. She would then record a property transfer deed transferring her house to a bankruptcy filer. The automatic stay benefit accorded to her victim will prevent creditors from foreclosing on her home and protect it. By the time the banks asked for lifting the automatic stay, Angelica made another phony transfer of property to some other person.

        Often there is no prior connection between the victims of property dumping and the perpetrator. In the above-mentioned case, Angelica used to doctor the records in such a manner that the transfer of the house appeared to occur prior to a bankruptcy filing. The process granted her house the benefit of automatic stay till banks filed for relief and the process would be repeated. In Dana’s case, since she was not the owner of the property neither had any idea about it, she did not object for any relief from the stay. The records mentioned Angelica as the owner of the property and her property dumping or hijacking plan was highlighted. Hiring an experienced attorney worked well for Dana’s case. It always makes sense to hire experienced attorneys for bankruptcy cases as the issue is quite complex without any frauds happening. In case you are looking for a consult for your bankruptcy case, call 888-297-6023 to speak with expert bankruptcy lawyers.


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

          *Do you own a home?

          Are you currently working?

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

        • Bankruptcy Trustee Characteristics and Counter Approach

          Bankruptcy Trustee Characteristics and Counter Approach

          Bankruptcy trustee plays a crucial role by representing the debtor’s case in court. A bankruptcy trustee is delegated by the United States Trustee to closely examine the case to bring forth hidden assets of the debtor. The trustee investigates the debtor’s assets, funds and other resources that can be utilized to pay the creditor.

          In short, it is a government body that mediates between the debtor and the creditor to obtain the best results for both creditor and debtor.

          How can the debtor make his case strong?

          The debtor must abide by and cooperate with the Bankruptcy trustee to make his case under Chapter 7. The debtor’s case is first represented under Chapter 13, wherein he needs to pay the creditor in installments. The case can swing to Chapter 7 once the court finds debtor unable to pay his creditors. It is here that the Bankruptcy trustee makes their presence. They analyze the wealth of the debtor and finds means to pay the creditor. If they find enough funds, they can swing back the case to Chapter 13.

          The debtor must go with the bankruptcy trustee and satisfy all their queries. The debtor needs to submit details of his latest income tax returns, within the first week of their meeting. With the tax report, the bankruptcy trustee can get the detail of the debtor’s present financial situation. If the debtor is not able to submit his tax returns within a week and is trying to hedge; the trustee can take stringent action against the debtor. The trustee can dismiss the case under Chapter 7 and move the case to Chapter 13 bankruptcy.

          Importance of tax return

          Not presenting the tax return documents puts the debtor in a bad light, showing ignorance and negligence on part of the debtor. The USA government is very particular about maintaining tax files and an unorganized and poor presentation or failing to produce any tax documents can put the debtor in the spot. The debtor’s case can be dismissed altogether. It is best to consult professionals and represent your case rightly to get the best result. You can connect with https://bankruptcy.staging.recoverylawgroup.com/ to procure favorable result.

          Filing your case second time under Chapter 7

          The debtor’s case can be rejected by the trustee for not being satisfied by the documents and collaboration with the debtor. However, once rejected the debtor can file their case again. This will not be easy, and the case will be scrutinized thoroughly. The proceedings will attract fees and will have a time frame of 30 days only. The case must be wrapped within 30 days. The debtor can make his case strong the second time by convincing the court that he is genuine and is filing because he didn’t get justice, he deserved the first time. It is easy for the court to dismiss your case the second time on accord of misuse of law for your benefit.

          Best approach

          Why go for a hassle second time when you can get the best in the first time. A little negligence can prove to be an expensive affair. In the first time, you are getting the benefit of presenting your case in the best manner. You need to cooperate with the Bankruptcy trustee and present your documents tax return papers on time. The bankruptcy trustee is very cooperative and offers the debtor enough time to present his documents. The debtor who cooperated got past the case with their assets consolidated.

          However, if the debtor tries to hedge or shows negligence, the bankruptcy trustee warns and dismisses the case. The benefit of filing the case the first time is, the debtor must not pay the fees of court proceedings and the case may likely fall in his side if of course he is honest. The debtor can call and consult on this number (888-297-6203) for any advice and consultation.


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

            *Do you own a home?

            Are you currently working?

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

          • Bankruptcy Basics of Chapter 9

            Bankruptcy Basics of Chapter 9

            The bad financial situation can affect not just individuals but also organizations (both government and private). However, the rules for getting a fresh start differ slightly in both cases. While consumers can opt for Chapter 7 or Chapter 13 bankruptcy to get their debts discharged, Chapter 9 bankruptcy helps municipalities (cities, towns, villages, counties, taxing districts, municipal utilities, and school districts) reorganize their debts. This bankruptcy chapter helps protect debt-ridden municipalities from creditors, while a reorganization plan is being developed for adjusting their debts. Reorganization mainly takes place by extension of debt maturities, reduction of the principal or interest amount or by getting the debt refinanced by taking out a new loan.

            Though it may seem similar to other bankruptcy chapters, lawyers of Dallas based bankruptcy firm Recovery Law group  elaborate that it is significantly different as no liquidation of assets takes place to pay off creditors in this case. Even the bankruptcy court plays a limited role in chapter 9 cases. Its role is restricted to:

             Approval of petition (in case the debtor is eligible);
             Confirmation of the debt adjustment plan;
             Ensuring that the plan is implemented
            Eligibility for Chapter 9 bankruptcy

            A municipality is defined as a “public agency, political subdivision, or instrument of a State.” This includes school districts, townships, counties, and even cities, apart from revenue-generating bodies like highway authorities, bridge authorities and gas authorities. Since only a “municipality” can file under Chapter 9 from financial relief, it is important that they consult the opinion of expert bankruptcy lawyers by calling 888-297-6023 to discuss particulars of their case. The additional eligibility requirements for a Chapter 9 bankruptcy case include:

            1. The municipality must be specifically authorized to be a debtor by either a State law or a government officer or organization empowered by State law’
            2. The municipality must be insolvent;
            3. A municipality must desire to plan to adjust its debts;
            4. The municipality must either:

            a. Obtain creditors’ agreement holding at least a majority in number of claims of each class that the debtor intends to impair under a plan under chapter 9;
            b. Negotiates in good faith with creditors and fails to obtain the agreement of creditors holding at least a majority in number of claims of each class which debtor intends to impair under the plan;
            c. Be unable to negotiate with creditors as such negotiation is not practical; or
            d. Believe reasonably that a creditor might get a preference.

            What happens during Chapter 9 bankruptcy?

            Municipalities need to seek protection under Chapter 9 of the Bankruptcy Code. They also need to file a list of creditors. Though the debtor should provide the creditors’ list at the time of filing, in this case, bankruptcy court allows the option to provide it at a different time. The case is not assigned automatically to any judge to avoid any political interference in the case of Chapter 9 bankruptcy. A notice of commencement of the case and the order for relief is essential. This notice is published at least once a week for three consecutive weeks in a newspaper having general circulation in the district where the case begins as well as in other newspapers which are generally used by bond dealers and bondholders. The newspapers in which notice and additional notice is published and who gives or receives notice by mail is a prerogative of the court.

            The bankruptcy court also allows objections to the petition including –
             Whether negotiations were conducted in good faith,
             Whether the state has authorized a municipality to file,
             Whether the petition is filed in good faith.

            In case an objection is filed against the petition, a hearing on the objection is held by the court. In case the petition is not filed in good faith or does not meet the requirements of Chapter 9, it can be dismissed by the court. If the petition is not dismissed on any objections, Bankruptcy Court needs to order relief and allows the case to proceed under Chapter 9.
            Just like other bankruptcy cases, an automatic stay is applicable in this case too. In fact, additional automatic stay provisions prohibit any action taken against officers and inhabitants of the debtor if they seek to enforce a claim against the debtor. The stay refrains a creditor from bringing a mandamus action against any officer of the municipality; against an inhabitant of the debtor to enforce a lien on or arising out of taxes owed to the debtor.

            A proof of claim or interest needs to be filed within the stipulated time frame. It is considered filed in case of Chapter 9 if it appears on the list of creditors filed by the debtor. In case it appears disputed, contingent, or unliquidated, then a creditor needs to file a proof of claim. The court, according to Bankruptcy Code Sections 903 and 904, the court has limited power over operations of the debtor. It cannot interfere with political powers, property or revenues of the debtor as well as the debtor’s use of its property and revenues.
            The role of the trustee is limited. They do not preside over a meeting of creditors (it is not held), cannot convert the case, do not supervise the administration of the case, and do not monitor financial operations of the debtor too. The role of creditors is also limited in this case, since there is no meeting of creditors. They can, however, choose and authorize attorneys and accountants to represent the committee, consult with debtors regarding the administration of the case, investigate the conduct, asset, liabilities and financial condition of the debtor and formulate a plan for the cumulative interest of all creditors.

            Discharge in chapter 9
            A plan for adjustment of debts must be filed by the municipality to adjust their debts. The plan is confirmed if it meets the statutory requirements. A discharge is available for municipal debtor on confirmation of debt adjustment plan; a deposit made by the debtor is distributed as per the plan by disbursing agent appointed by court and determination by the court that securities deposited constitute valid legal obligations of the debtor. Exceptions to the case also exist for –
             Any debt excepted from discharge by plan or order confirming the plan;
             Any debt owed to an entity before confirmation of the plan, who had no notice or knowledge of the case.

          • Bankruptcy and Payday Loans

            Bankruptcy and Payday Loans

            Payday loans are a very innovative concept which is running around the United States quite contagiously today. It provides instant cash by keeping your future paycheck as collateral. Payday loans are a common point of discussion during bankruptcy as they can make the procedure complicated. While most people take payday loans to clear their existing debts, which may be credit card bills, utility bill payments, personal expenses, etc., the amount is usually limited to about 70-80% of the average paycheck. Just like credit cards, the interest charged on a payday loan is very high. It is an unsecured form of loan and does not have any asset backing and hence, falling into a vicious interest cycle is quite common and obvious. Need more tips on managing finances, log on to Recovery Law Group for more info.

            Concept of Payday loans

            Unlike credit cards or other loan forms, payday loans are highly liquid and are directly deposited in the bank account or are in the form of cash advances. The approval process is also quick, but the processing charge and interest rate are on the higher side. Ideally, the payday loan should be used in a very difficult circumstance and if you are falling back on it several times, its high time you had worked on controlling your finances. Payday loans are generally given on the basis of employment income and history. Credit score and other parameters often play a minimalistic role in determining eligibility to payday loans. Hence, it is the most common loan form for employed individuals with low credit score to access cash instantly.

            Your recent pay slips, employment tenure, etc., matter the most for payday loans. Though there are the state and federal agencies monitoring payday loan providers, it is up to the borrowers to not consider payday loans as a viable option. If it is a one-off situation that wasn’t anticipated then it could still be fine, however, if you need to look forward to a payday loan because your paycheck isn’t enough for meeting routine expenses, you might have just put your foot in the spider webbing.

            Can bankruptcy help in cutting the spider webbing?

            Since payday loans are considered as unsecured debt, bankruptcy can help significantly in managing or releasing the payday loan debts. Whether you file bankruptcy through Chapter 7 or Chapter 13, there are good chances of releasing the payday debts. However, if the payday loans were taken recently before filing bankruptcy, the lender might argue for your intention to not pay the loan and it might be converted a fraud transaction, which will not be released by the bankruptcy court.

            The bankruptcy trustee tracks 70-90 days of transactions hence, it is important to not file bankruptcy after taking payday loans for that period. The usage of these loans also has to be for the necessary expenditure. If any luxury items were purchased or the money was transferred to friends, relatives, parents, etc., for clearing their debt, there can be further consequences of retrieving money from the ‘insiders’. Making big transactions or purchases could also bring you under the scanner of the bankruptcy trustee.

            What is in your favor?

            The bankruptcy courts by default do not support or tend to like the payday loan providers. Hence, there are several favorable clauses that could prove the lender’s claims incorrect. For instance, the court regards the first payday loan as the transaction start date ignoring the recent loan transactions. This certainly helps in addressing the 90-day period that is under the trustee’s scanner. The only option left with the payday loan providers is to convert the transaction into a fraud one, which is not an easy task for sure.

            Payday lenders may also seek for security based on various different factors. It could be a post-dated cheque or a Demand Draft or any financial instrument with a promise of you paying them back in future. The payday lender might try to cash in the cheque even when you have declared bankruptcy and the ‘automatic stay’ has been applied. This is a violation, but litigation and court cases will consume a lot of time and money. The best way to handle this scenario would be by notifying your attorney, bankruptcy trustee and your bank about the post-dated cheque to the payday lender. The banks offer to a stop payment facility at a fee, which is derived based on the number of checks issued. You can consider paying the stop payment fee and preventing the payday lender from cashing a post-dated cheque.

            Need help get help

            Payday lenders often threaten for criminal cases as writing a bad check is one. However, the law is different during bankruptcy. By the illustrated above method, you can stop payment to your payday lender once you are in the ‘automatic stay’. Also, if the payday lender has cashed in the cheque just before you file bankruptcy, the same can also be retrieved for the bankruptcy estate under the Chapter 7 bankruptcy norms. Also, there are many fraudulent payday lenders around in the market who operate only by a website or an app. These websites charge a fee upfront for processing loans and just disappear. Such duping of customers has seen a typical rise in the recent 6-7 months.

            As per law, no upfront fees can be charged before processing a payday loan. Hence, a fee or charge before loan processing is a serious trigger. If you are confused and need help, reach out to 888-297-6203 for immediate professional help!


              *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.

            • Avoid Transfer of Real Estate Prior to Bankruptcy Filing If You Seek Respite from Financial Issues

              Avoid Transfer of Real Estate Prior to Bankruptcy Filing If You Seek Respite from Financial Issues

              Bankruptcy is the best legal recourse available to people who are struggling with financial debts which they are simply unable to pay off. Though it is essentially designed to provide respite to people, there are rules attached to it. One of them is about the transfer of property prior to a bankruptcy filing. Many people transfer assets (jewelry, shares, property, etc.) to family and friends in order to avoid them becoming a part of the bankruptcy estate. However, the court doesn’t look too kindly on such transfers. Moreover, inform bankruptcy lawyers of Los Angeles based firm Recovery Law Group mixing of bankruptcy and civil lawsuits can be quite horrible as seen in the case of Catherine, a California resident who was handling two lawsuits and two bankruptcies.

              Catherine did not get along with her neighbors and often there was discord among them due to her behavior. She used to play loud music in the middle of the night which disturbed her neighbors; took her dogs to defecate in front of neighbors’ front lawns, and even released her vicious dogs into her yard to scare small kids and grandchildren of her neighbors. She even posted signs making outrageous claims defaming her neighbors. The signs accused neighbors of criminal and civil misdeeds and tanked their reputation, resulting in a loss of business for them. All of this behavior resulted in the neighbors’ filing a defamation lawsuit against Catherine.

              While the defamation lawsuit was still pending, Catherine transferred the deed of her house to her daughter, with simply a “life estate” in the house. A life estate means that a person can reside in the property until they die. Catherine’s daughter agreed to return the deed on request, thereby becoming the legal owner of the house. After one year of this transfer of property, Catherine filed for Chapter 13 bankruptcy. The automatic stay benefit resulted in seizing of all collection actions including putting a stop to the defamation lawsuit of the neighbors since they were asking for monetary damages. With the dismissal of her bankruptcy after a couple of months, the automatic stay benefit was also lifted.

              The neighbors filed again to set aside the transfer of her house as dishonest. Since they had filed a defamation lawsuit expecting to win, the move by Catherine to transfer her house was probably an attempt to make her “judgment proof.” In case a person is judgment proof, the plaintiffs, even after winning their case won’t be able to collect any compensation. Catherine lost the defamation suit and was expected to pay $320,000 to the neighbors, but she appealed against the verdict. One year after filing the appeal (and waiting for an update on the same), she filed for a Chapter 7 bankruptcy. By then, the judgment for $320,000 was affirmed.

               After two months the court ruled that the transfer of Catherine’s house to her daughter was void. With this ruling, she became the legal owner of the house and that the property could be sold off to pay her dues to the neighbors. Catherine again filed for an appeal against the verdict, but unfortunately passed away before it could be decided. Her death resulted in the transfer of the ownership to her daughter as per the terms of transfer. This resulted in her estate having no money to pay off the neighbors’ debts. In case the transfer was deemed void, the property will be handed over to Catherine’s bankruptcy trustee who would then sell it off to pay the debts.

              Catherine had transferred the house to her daughter’s name in order to protect it. However, since the transfer was considered fraud, it was voided. Thus the legal claim of the house remained with Catherine (and eventually her bankruptcy trustee). The law restricts people from transferring property to family and friends prior to bankruptcy filing since this is an attempt to prevent the sale of the said property during Chapter 7 bankruptcy. With the court holding on to the appeal, the transfer was declared void and after 20 long years’ Catherine’s neighbors received the compensation.

              Often courts are able to see through the elaborate schemes people concoct to trick their creditors. Bankruptcy trustees are required to see through all paperwork to ensure that no asset goes unaccounted for. Any transfer of property to family and friends within a specified time frame, without proper compensation, is generally considered fraud. Such activity may result in dismissal of your bankruptcy case too. If you are going through a tough financial phase, feel free to call at 888-297-6023 to discuss your case with expert bankruptcy lawyers.


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

                *Do you own a home?

                Are you currently working?

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

              • Who is Notified of Your Bankruptcy Filing?

                Who is Notified of Your Bankruptcy Filing?

                Despite being one of the best legal options to get rid of accumulated debt, people refrain from filing for bankruptcy probably because they fear being judged. One of the major concerns people have is that their bankruptcy will be announced to their family and friends, which probably is shameful for them. While considering bankruptcy, and to quell any fear, it is important that people are aware of who will be aware of their bankruptcy filing. According to Dallas based law firm Recovery Law Group, there are two chapters under which individual debtors can file for bankruptcy – Chapter 7 and Chapter 13. Both bankruptcy chapters come with the automatic stay benefit and prevent creditors from taking any collection actions. However, there is a difference in the way your assets and debts are treated in both of them.

                In the case of Chapter 7 bankruptcy, your assets are divided into the exempt and non-exempt property. There are two types of exemptions in bankruptcy, state and federal. Some states allow you to choose between federal and state bankruptcy exemptions, while others like California do not. However, provisions are made to protect different amounts of various properties like house, car, and household goods. In the majority of cases, nearly all property of a debtor comes under the exempted category, thereby offering protection. In case some property is not protected under the exemption, it is sold by the trustee to pay off creditors. Any dues which remain after selling off of non-exempt property are discharged at the end of the bankruptcy.

                When an individual fails to qualify for Chapter 7, the other option available is Chapter 13. In this bankruptcy chapter, a repayment plan is devised keeping in account your earnings, your debt, and your assets, in order to repay your creditors. The repayment plan continues for 3-5 years duration after which any unsecured debts like credit card and medical bills or personal loans are discharged. Though Chapter 13 is slightly tougher, it is ideal for debtors with income above the mean state income.

                Who knows of your bankruptcy?

                In case you are facing a difficult financial situation and wish to weigh in your options you can call 888-297-6203 to consult with expert bankruptcy lawyers. Once you have reached the decision of filing for bankruptcy after discussing with your attorney and undergoing the mandatory credit counseling course, the case is filed at the United States Bankruptcy Court. Due to filing in a court of law, it becomes public record. However, finding the details of your case is like looking for a needle in a haystack. Unless the details are available, it is next to impossible to know about your bankruptcy. There are some people though, who are aware of your bankruptcy proceedings. These include:

                • Your creditors are aware of your bankruptcy as you are expected to provide a list of your creditors to the court. This is because your creditors need to be aware of your impending bankruptcy and the automatic stay. In case you forget to add a creditor’s name, those debts won’t be discharged through bankruptcy. Apart from the creditors, the local bankruptcy trustee is aware of your bankruptcy. However, both court employees and the creditors are barred from reporting about your bankruptcy.
                • Family and friends are generally unaware of your bankruptcy unless they have co-signed a loan which may result in them having some liability with you filing for bankruptcy. Unless they go digging around, they won’t be aware of your bankruptcy till you spill the beans, because the court prohibits court employees and creditors from disclosing such information.
                • Employers are generally not notified of the bankruptcy filing and can only be aware if you inform them or they search through public records. Many people are worried that bankruptcy might hinder their chances of better employment but that is not so. However, bankruptcy shows on your credit report. Thus, if a prospective employer opts for a credit check before hiring he/she might become aware of your bankruptcy filing. One ray of hope for you is that employers cannot discriminate hiring prospective In some cases of Chapter 13, repayment to creditors might be deducted from your pay cheques due to which HR might become aware of your bankruptcy. Similarly, if wage garnishment is taking place then also your employer might become aware of your bankruptcy.

                Bankruptcy has been devised as a mean to help people struggling with insurmountable debts to start afresh. It is no way meant to name and shame you. In case you are considering bankruptcy as a means of getting out of the financial mess, you need to consider an expert lawyer who can guide you through the entire way.


                  *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 if You Forget to Include a Creditor in Your Bankruptcy?

                  What Happens if You Forget to Include a Creditor in Your Bankruptcy?

                  A lot of paperwork is involved when you file for bankruptcy, including documentation for your income, assets, and a comprehensive list of your debts as well as your creditors. This complete list of creditors is used by the court to inform everyone concerned about your bankruptcy. Since all of this involves a lot of paperwork, it is quite possible that one or two creditors might miss making the list. Since creditors also have legal rights in your bankruptcy case, if any of them fails to get a mention in your list of creditors while filing for bankruptcy, what effect can it have on your case?

                  What is the creditor mailing list?

                  According to Los Angeles based law firm Recovery Law Group, the “Creditor Mailing List” (also known as the mailing matrix) should include all your creditors along with their contact information. It must also include debts like student loan debt which are not handled via bankruptcy. Once you file for bankruptcy, this mailing matrix is used to inform all creditors of it. This is an important step as creditors wish to be kept in the loop when such an occurrence happens.

                  The creditors, depending on which chapter of bankruptcy you file, might be involved in the confirmation of your debt, or pay-out of your liquidated assets, or might be required to approve the repayment plan. To be eligible for their repayment portion, they are required to file a “proof of claim.” If they have no information about your bankruptcy, they cannot file a proof of claim and thus will lose their chance of getting payment from your bankruptcy.

                  The creditor mailing list is an integral part of your case. When you file for bankruptcy, you get automatic stay protection which effectively ceases all collection actions by creditors. Unless the creditors are aware of your bankruptcy, they will not follow automatic stay. Thus you might lose wages to garnishment or have your home foreclosed or face a lawsuit for collection if you miss out any creditor on the creditor mailing list. Additionally, omitting a creditor can affect your bankruptcy too! The bankruptcy forms are filed under a penalty of perjury, i.e. leaving any information off the papers intentionally is considered a crime. The unintentional omission is understood by the court and you are given a chance to rectify your mistake. If you have unintentionally left any creditor off from the mailing list, the consequence depends on which chapter of bankruptcy you have filed.

                  Adding creditor in Chapter 7 bankruptcy

                  In Chapter 7 bankruptcy, also known as liquidation bankruptcy, your non-exempt assets are surrendered to the court which is then sold off to pay the creditors. Many times, thanks to state and federal exemptions, debtors have little to no non-exempt assets; such cases are known as “no asset” bankruptcy cases. When some non-exempt property is available, which can be sold off to pay creditors, the bankruptcy is known as an “asset” bankruptcy. In case you forget to include a creditor in the creditor mailing list while filing for Chapter 7 bankruptcy, the outcome depends on whether it is an asset or no-asset bankruptcy.

                  • Asset bankruptcy

                  When you have non-exempt assets, unsecured creditors get paid in proportion to the amount you owe them, when they file a proof of claim. When you leave a creditor off the mailing list, they won’t be notified of bankruptcy and subsequently will not be able to file proof of claim, thereby losing out on their repayment amount. Any unsecured creditor who is left out of their rights can go after you to collect the dues after a bankruptcy discharge. The only respite you have in this case is that they can collect dues only from non-exempt assets. Chapter 7 bankruptcy exemptions can help save a number of your assets. Secured creditors, if they are left out of creditor mailing list, have rights to pursue collection actions against you after your bankruptcy discharge.

                  • No asset bankruptcy

                  In this case, since there are no non-exempt assets, the unsecured creditors (credit card, medical bills, personal loans, etc.) do not get anything in bankruptcy. Since unsecured creditors do not have any property attached to their debt, they don’t have any proof of claim to file. If you accidentally forget to add an unsecured creditor’s name to the list, not much of consequence happens in this particular case. As is the case with no asset bankruptcy, unsecured creditors, listed or not, get nothing in such cases. The debt gets discharged with creditor having no claim to collect.

                  Consequences of leaving a secured creditor out of the creditor mailing list are far more serious than leaving an unsecured creditor out. You can face collection actions after a bankruptcy discharge. Secured debts which are linked to the property are not discharged during bankruptcy but can be surrendered or reorganized. All of this requires the involvement of the creditor. If you wish to reaffirm your car loan, you need to make payments through and even after your bankruptcy. If you miss adding the name of your auto lender or any other secured creditor off the mailing list, the debt won’t be discharged and the creditors are eligible to collect the payment even after your bankruptcy, which may include foreclosure and/or repossession of said property.

                  Certain debts like child and spousal support, government taxes, etc. are not discharged during bankruptcy. Since these debts won’t be discharged, the accidental omission of such debts will not have any effect on your bankruptcy case. They were and remain collectible even after bankruptcy. Since a majority of Chapter 7 cases are no asset cases, there aren’t any major consequences of the accidental omission of a creditor.

                  What happens if you fail to add a creditor in Chapter 13 bankruptcy?

                  Creditors have more involvement in a Chapter 13 bankruptcy compare to a Chapter 7 case. They have a say to review, object or approve your repayment plan. If and when your repayment plan is approved, the payments are divided amongst your creditors proportionately. If you fail to include a creditor in this type of bankruptcy, the debt won’t be included and therefore not discharged at the end of your bankruptcy. This leaves the creditor free to attempt collecting the debt after your bankruptcy discharge.

                  Options available for you if you forget to add any creditor when you file for bankruptcy

                  Irrespective of the type of bankruptcy filed, if you realize you have unintentionally omitted any creditor, you should contact and inform your bankruptcy attorney of it. They can help guide you on ways to fix the mistake. If you haven’t reached the end of your bankruptcy, filing a form in bankruptcy court to add the missing creditor can help get the problem solved. In case you have got your bankruptcy discharge and get a collection notice from a left out creditor, you need to contact your bankruptcy attorney. Depending on the type of bankruptcy you had filed, the lawyer can find out if the creditor has any right to collect dues or not. An unsecured creditor trying to collect dues from you has no right to them if you filed for a no-asset Chapter 7 bankruptcy. The creditor can be informed by the lawyer of the case in such a situation. If that is not the case, the bankruptcy lawyers can assess whether different factors like the statute of limitation can affect your dues to the creditor.

                  If you remember to have left out a creditor, contact your bankruptcy attorney immediately. Wilful omitting of a creditor is considered a form of perjury, which can lead to the filing of criminal charges and even dismissal of your bankruptcy case. Bankruptcy can be trying times, emotionally and financially. It is important to have a bankruptcy attorney by your side in such cases. If you don’t have one, feel free to call 888-297-6203 to get your case evaluated.


                    *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.

                  • My Cosigner Filed for Bankruptcy; Does it Impact Me?

                    My Cosigner Filed for Bankruptcy; Does it Impact Me?

                    In many different places, getting loans or line of credit is not easy. There is always a requirement of a guarantor or a cosigner. Parents, relatives, spouse, or friends could play as guarantor/cosigner. How does the bankruptcy of one cosigner impact the other person? This is what we will discuss in detail here. For best and quick solution on bankruptcy related issues, just hop to Recovery Law Group.

                    Cosigner and the relationship

                    A Cosigner is a person who is liable to pay the loan in case the primary borrower defaults. The Cosigner is the backup plan for the financial institution to recover its debt. The cosigner could be a known or unknown person who agrees to do so. Cosigners are common for people with short or no loan or credit history. People with bad credit score, lower income, no assets to pledge as collateral, etc., usually require a cosigner for swift loan approvals. California, Texas, New York, Los Angeles, etc., are some states where you would typically see the use of cosigners a lot. However, as a cosigner one can be held liable in case of defaults, bankruptcy and other scenarios. Hence, one should be very cautious when opting for the role of a cosigner.

                    Impact of bankruptcy declaration

                    The unsecured debts which are usually the case with the debts associated with cosigner get released when bankruptcy is filed. The obligation for the primary debtor to pay off the debts is released. This is true for all types of unsecured debts. This release of obligation, however, does not apply to the cosigner and he/she still remains liable to the debt not paid by primary borrower due to bankruptcy. The primary borrower may declare bankruptcy through Chapter 7 or Chapter 13. In the case of Chapter 7 bankruptcy declaration, the primary borrower gets an ‘automatic stay’, which evades the borrower from all unsecured creditors. However, this benefit does not shield the cosigner. This means the risk and liability will shift to the co-borrower or cosigner completely.

                    How to protect your cosigner?

                    There are ways to protect the cosigner. The primary borrower is the primary link for the bank or any other financial institution. Hence, the cosigner would not know if any payment due has been missed or not been paid. Keeping the cosigner informed in advance can help in keeping the loan current and reducing the number of payment defaults. If you are the cosigner, it is a good practice to keep a check on the payments on every due date. Any payments missed will directly impact on the credit history, score and various other parameters for both the parties involved in the transaction.

                    • Reaffirmation of loan

                    Reaffirmation is a very difficult decision to make. This is another way of releasing your cosigner. Reaffirmation is the process of making the self completely liable for the loan. The process also will not allow you to discharge the unsecured debt even if you declare bankruptcy in the future. The bankruptcy of the primary borrower would not affect the cosigner however, default would. In the case of loan default, the cosigner will still be liable.

                    Chapter 13 bankruptcy declaration

                    Compared to Chapter 7 bankruptcy option, Chapter 13 is very beneficial for the primary borrower as well as the cosigner. The ‘automatic stay’ under Chapter 13 covers and protects the cosigner along with the borrower. This is applicable only if the primary borrower accepts to pay the debt in full and includes the same in Chapter 13 repayment plan. When creating a Chapter 13 repayment plan, one can include the cosigned debt and continue to pay the installments with the income available for disposable. This safety shield is a weak one though and can be breached by the creditors if payments are missed or if the bankruptcy is no longer applicable. Making payments regularly as per the Chapter 13 payment plan is the only way to safeguard your and your cosigner interests.

                    Credit score implications

                    A credit score takes a severe beating of about 200 points if not more if bankruptcy is applied or declared by the borrower. The cosigner might not be directly impacted by the primary borrower’s bankruptcy unless and until he/she continues to make the payments on time. The bank or financial institutions does not care if cosigner or primary debtor is paying the dues, the payments have to be made on time. Until this is true, cosigner’s credit score is safe. Missed payments directly negatively impact the credit score of both parties involved, the primary debtor as well as the co-borrower.

                    What happens if the scenario is reversed?

                    What if the cosigner or the guarantor is going to file bankruptcy? This can be a serious problem for the primary borrowers. Even if you are current with your payments, you can be in default if your guarantor defaults. This holds good in most student loan scenarios. This directly has a very negative impact on your credit score as well. To minimize damage, the best way is to disassociate the guarantor from the loan either by proving your credit worthiness based on historic payments to the bank or by employing a new guarantor. It is, however, difficult to remove or replace a cosigner or guarantor.

                    Cosigner and borrower relationship can be more complicated than it looks. If you are confused, need help or specialized professional assistance, reach out to (888)-297-6203 for the best solution for all your doubts and questions.


                      *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.