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Tag: chapter 13 bankruptcy Los Angeles

  • Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

    Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

    When a person applies for bankruptcy under chapter 7, in Los Angeles, most debts are cleared. The debtor is no longer obliged to the creditors. However, a debtor can keep a loan agreement if he/she wills to save that particular property. Usually, all the property and valuables are sold to clear the debt under chapter 7. If the debtor wants to retain any property, be it their house or car; they can continue to follow the loan agreement towards that house to the creditor. For more advice do log in to Recovery Law Group.

    Reaffirmation

    The process of retaining the mortgage is called reaffirmation. When a debtor reaffirms a debt, he/she affirms to owe the debt after the bankruptcy case ends. The debtor is under the same contract with the creditor and continues to pay the same installments against the mortgage. The loan agreement between the debtor and creditor will behave in the same manner and will not be likely affected by the bankruptcy case.

    The creditor can seize the property if the debtor fails to repay the loan if he/she reaffirms a loan agreement. On the contrary, the creditor can have no effect whatsoever on the debtor if he/she does not reaffirm a mortgage. Hence, it’s advisable not to reaffirm a mortgagee, whilst filing a bankruptcy case under chapter 7.

    Can a debtor Refinance a loan that is not reaffirmed?

    Not reaffirming the mortgage and still upholding the discharged loan, the debtor cannot ask the creditor to refinance his mortgage. Once the debt is discharged, the creditor has no say in the mortgage process. The creditor has to be contented with little or no pay directed by the court. So, if the debtor asks for refinancing a discharged loan to the creditor, it violates the bankruptcy rule. The debtor cannot ask the same creditor for refinancing but can request other lenders to refinance his mortgage.

    Is reaffirmation a viable option to secure a property under debt?

    A reaffirmation agreement in Chapter 7 bankruptcy law must be approved either by the bankruptcy judge or by the bankruptcy lawyer. However, both the bankruptcy judge and lawyer sways clear off reaffirmation, stating that it may put unreasonable implications on the client. A client can retain his/her house without the reaffirmation agreement.

    • Bankruptcy court certification

    The bankruptcy judges do not advocate loan agreement reaffirmations. The court allows the debtor to keep the mortgage, so long as he/she follows the timely schedule of paying to the creditor. It argues reaffirmation as unnecessary. The only likely benefit of reaffirming a loan agreement is a healthy credit score. And the court feels it unnecessary to burden the debtor with reaffirmation for a mere healthy credit score.

    • Bankruptcy lawyer’s certification

    The bankruptcy lawyers also do not advocate reaffirmation. Since they feel that the court does not support reaffirmation, if they advocate for it, they may be obligated to the process of the loan agreement. They do not want to take the responsibility of their client in reaffirming a mortgage. If they sign the reaffirmation agreement, they may be liable, if the client defaults, causing unnecessary complications.

    Loan agreements or mortgages are not necessarily reaffirmed in bankruptcy under chapter 7. The debtor can refinance the loan agreement discharged in bankruptcy by other financiers, without reaffirmation. For more information call on (888-297-6203)


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    • Chapter 11 or Chapter 13: What is Best For a Small Business?

      Chapter 11 or Chapter 13: What is Best For a Small Business?

      Small businesses, when comes under acute pressure of financial liabilities, do not have many options with them. Filing for bankruptcy can be the only option if you had like to revive your small business or wrap up the same. Chapter 7 bankruptcy will lead to winding up of the small business while Chapter 11 or Chapter 13 (if qualified) can help you in keeping the business running. To learn more about Chapter 7 and its benefits, log on to https://bankruptcy.staging.recoverylawgroup.com/.

      How does Chapter 11 or Chapter 13 help?

      The concept or logic used in Chapter 11 or Chapter 13 is similar. They deal with the restructuring of business/individual debt in order to make the payout more practical and feasible for all parties involved. Some key benefits of this concept can be listed as follows-

      • Allows for business continuity by retaining most business assets
      • Helps you buy time to settle the crisis, extremely beneficial if the business has been struck with some temporary obstacles
      • Helps in arriving at a negotiated agreement with the secured lenders
      • Helps in releasing some of the debts, especially non-priority unsecured debts that cannot be paid of during the length of the proposed repayment plan

      Eligibility and benefits

      In comparison, if eligible, Chapter 13 is always a better option. Most small business owners especially sole proprietors are eligible for Chapter 13 and opt it straight away even before evaluating Chapter 11. Chapter 13 is less expensive and less complicated compared to Chapter 11, which makes it a straight choice. Eligibility criterions for Chapter 13 are listed as follows-

      • As discussed earlier any individual who has a sole proprietorship is eligible for Chapter 13.
      • In certain cases, based on case to case scenarios, small enterprises below the debt threshold can be facilitated under Chapter 13.
      • This, however, is completely in discretion of the bankruptcy court and is pretty rare.
      • If you are a sole proprietor and have debts below the threshold, you would not have to worry about the rarest of rare scenarios.

      Unlike Chapter 13, Chapter 11 does not have any eligibility criterion. Anyone can usually file under Chapter 11 for bankruptcy. Individuals, corporations, small businesses, partnerships, etc. There isn’t any debt threshold either. It is a sort of blanket bankruptcy chapter that is slightly more expensive and complicated than other alternatives.

      Advantages of Chapter 11

      • The first advantage of Chapter 11 is with respect to the modification in terms with the secured lenders. This negotiation and change in terms make it more likely for a business to retain its assets and function well in order to recover from the state of bankruptcy.
      • The usual concept of discharge or release of debt occurs only when the payment plan has ended. The payment may vary as per disposable income in Chapter 13, which means if the income increases over the duration of payment’s plan, you might end up paying more and have fewer debts discharged or released. The debt in the case of Chapter 11 bankruptcy, is released with the start of the payment plan. Once, the payment plan has been approved, the unpayable debt as per the payment plan is released.
      • The cost or commission towards a bankruptcy trustee can be saved when using Chapter 11. As per laws, bankruptcy trustee appointment is optional and is usually appointed only with respect fraudulent or mass mismanagement cases.

      Advantages of Chapter 13

      • Unlike Chapter 11, the tenure of repayment is limited to 5 years under Chapter 13. If the secured debts and disposable income fail to meet during the 5 years, a small business might have to lose some of its assets during the course Chapter 13 bankruptcy.
      • The liability to turnover disposable income irrespective of the payment plan obligations, lower debt release percentages and compulsory appointment of a bankruptcy trustee are some disadvantages of Chapter 13. However, in spite of all these, the Chapter 13 bankruptcy Los Angeles process tends to be quicker and cheaper compared to Chapter
      • The making and approval of payment plan is a lot of quicker compared to Chapter 11

      To know more about eligibility, possibilities and best roundabouts for your small business organization, reach out to some of the vastly skilled and experienced attorneys@ 888-297-6203.


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

        *Do you own a home?

        Are you currently working?

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

      • Which Chapter of Bankruptcy Would Work Best for Me?

        Which Chapter of Bankruptcy Would Work Best for Me?

        People, when confounded with huge amounts of debts, are often looking for ways to get out of this grim situation. Filing for bankruptcy is one of the options that they can choose. However, there are other options also available, say lawyers of Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, to provide you with a fresh start. Individuals can file for either Chapter 7 or Chapter 13 bankruptcy, however, each has eligibility requirements; you should have income low enough to pass the Chapter 7 means test or substantial disposable income apart from a dollar limit cap on your debts in case of a Chapter 13 bankruptcy Los Angeles. Since bankruptcy is going to affect your credit score, it is important to consider all options including working things out with creditors outside bankruptcy. For alternate options to bankruptcy, call 888-297-6023 to speak with expert bankruptcy lawyers.

        Chapter 7 or Chapter 13?

        While the former is ideal for people with low income to pass the means test and those who can protect all their property through exemptions. They will be able to get their debts discharged during bankruptcy. Contrary to this, Chapter 13 bankruptcy is for people with higher income preventing them from qualifying for Chapter 7. People who wish to save the property from repossession or foreclosure and want to repay their non-dischargeable debts over a 3 to 5-years repayment plan.

        Factors to consider while choosing a chapter when filing for bankruptcy include:

        • Your income and expenses;
        • Types of debts owed;
        • Whether you wish to keep or lose your property.

        Can bankruptcy help in your financial troubles?

        You might be under heavy debts and dealing with repossession or foreclosure when you file for bankruptcy, but it is important to know the extent to which bankruptcy will be able to help you. Though bankruptcy is one of the best methods to get rid of a huge amount of debts such as medical bills, credit card bills and personal loans, there are certain debts that survive bankruptcy. These include child and spousal support, tax debts, student loans, etc. It may, however, help you in spreading out the non-dischargeable debt payment over a 3-5 years’ repayment plan (Chapter 13).

        In case of secured debts like car loans and mortgages, you might be facing repossession or foreclosure action by creditors. Filing for bankruptcy results in an automatic stay which puts a hold to any collection action. Additionally, in Chapter 13 you get to keep the property and catch up on missed mortgage payments; opt for a cramdown if the property’s current value is less than the balance on your loan and remove junior liens on your house through lien stripping. The automatic stay also puts a restraint on other collection actions by creditors such as wage garnishment and lawsuits against you, apart from eliminating any underlying debt

        Protecting your property with the bankruptcy

        Bankruptcy filers don’t lose all their possessions. Certain exemptions (state and federal) are available to protect the debtor’s property up to a certain amount. You can choose between state and federal bankruptcy exemptions (if your state offers the choice) to protect certain equity in your assets. Generally, exemption statutes let you keep various items essential for you to get a fresh start. The non-exempt property is treated differently in different bankruptcy chapters.

        • Chapter 7 bankruptcy

        Any non-exempt property is sold off by bankruptcy trustee to repay your creditors.

        • Chapter 13 bankruptcy

        You can keep the un-exempt property but need to pay an amount equivalent to that to your unsecured creditors.

        People with a significant amount of non-exempt property might find bankruptcy a nonviable solution.


          *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.

        • Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

          Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

          Chapter 7 and Chapter 13 are the preferred routes taken by individuals filing for bankruptcy. Each has specific requirements that you must meet if you wish to get your debts discharged. According to Los Angeles based bankruptcy law firm Recovery Law Group , you need to be current on your payments and protect all home equity through bankruptcy exemptions in the case of Chapter 7. While in Chapter 13, you get a chance to catch up on missed mortgage payments through arrearage in the repayment plan.

          Both state and federal government offer exemptions to protect your equity in the property when you file for bankruptcy. You might be able to choose between either of those options or make the best of the state exemptions. Before filing for bankruptcy, it is important to consult expert lawyers to know which chapter of bankruptcy will result in saving more property. Call 888-297-6023 to clear your doubts regarding exempt property and bankruptcy. The exemptions vary from state to state. In the case of chapter 7 bankruptcy, any non-exempt property will be sold, and the proceeds distributed among your creditors by the bankruptcy trustee. Chapter 13 bankruptcy allows you to keep your non-exempt property if you pay your creditors an amount equal to the amount of non-exempt property you are keeping. This proves to be costly and will not be approved unless you can show you have enough disposable income to repair creditors.

          Chapter 7 Bankruptcy

          Chapter 7 bankruptcy allows you to get rid of unsecured debts relatively quickly. In most cases, people can protect their exempt property and have to let go home a small amount of non-exempt property. You can keep your home in this case of bankruptcy if:

          • you are current on your mortgage payments;
          • bankruptcy exemption protects your entire home equity;
          • you can afford to make payments on the loan in the future

          However, this chapter does not allow you to catch up on past due payments. In case you have a lot of equity in the house, it is difficult to protect it from being sold by the bankruptcy trustee to repay your creditors.

          Chapter 13 Bankruptcy

          This is a better option if you wish to keep your home when you have a lot of equity and have previous due payments to catch up on. Incidentally, it also helps in getting rid of second or third mortgages. This involves a repayment plan through which you can pay back your creditors over 3 to 5 years’ time frame. You could also ensure that a separate debt is added to the repayment plan which addresses your mortgage arrearage. You need to show that you have enough income to make regular mortgage payments along with your plan payments during bankruptcy.

          Chapter 13 also prevents creditor to take any foreclosure action on the mortgage as long as you are making regular payments as per your repayment plan. Lien stripping helps you get rid of any junior lien on your home in case of Chapter 13 bankruptcy Los Angeles. This takes place only in case the property is now worth less than the balance of the primary loan. evidence pertaining to this if submitted bankruptcy court might make any junior lien void. Any debt owed to that creditor is treated as unsecured debt and is wiped out along with other similar debts at the end of your bankruptcy case.


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

            *Do you own a home?

            Are you currently working?

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

          • What happens to Your Vehicle in Chapter 13 Bankruptcy?

            What happens to Your Vehicle in Chapter 13 Bankruptcy?

            Chapter 13 bankruptcy allows you to catch up on previous dues and make arrangements to clear your secured, priority and unsecured debts through a repayment plan. Unlike Chapter 7, you can keep all your property in Chapter 13 bankruptcy if you pay your unsecured creditors the amount of non-exempt property you are keeping. This chapter of bankruptcy, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, can help you catch up on mortgage and car loan payments and also help in reducing the amount owed in the latter case.

            Sometimes, even Chapter 13 bankruptcy might not help you with keeping your vehicle; and it might be wise to let go, especially if the non-exempt equity in the car is too much. The bankruptcy exemptions allow you a certain amount of equity in a vehicle. In case you have two vehicles or have a vehicle with exceptionally high car payments (luxury vehicle), then keeping it during bankruptcy would be foolhardy. If you wish to know more about keeping your vehicle during bankruptcy, you can consult with expert bankruptcy lawyers at 888-297-6023.

            Can Chapter 13 bankruptcy help with your vehicle?

            Chapter 13 helps bankruptcy filers who wish to keep their property, the primary benefit is automatic stay which prevents repossession of the vehicle in case you have fallen behind on payments. When you file for bankruptcy, the automatic stay provision stops all collection actions including foreclosure and repossession. What’s more, if a lender has already repossessed your vehicle, you might get it back if you file for bankruptcy!

            Chapter 13 also offers you a chance to catch up on previous payments. You can be in the good books of the creditor if you pay for the arrearage (the amount you are behind on car loan) along with regular car loan payments through the Chapter 13 repayment plan. If you continue making these payments during the course of your bankruptcy chapter, the lender cannot repossess your car.

            You might even reduce your car loan by cramdown. This facility is available for vehicles purchased 2.5 years prior to a bankruptcy filing. If the value of the vehicle is less than the amount due, you might be able to get the loan amount reduced in the case of Chapter 13 bankruptcy Los Angeles. Any remaining amount is treated as an unsecured debt; paid using your disposable income (the amount left after taking care of your monthly expenses and paying secured and priority debt). Unsecured debts are discharged at the end of the repayment plan.

            What to do if you wish to keep your vehicle?

            Chapter 13 allows you to keep the non-exempt property as long as your creditors are getting adequately compensated through the repayment plan. Apart from your monthly expenses including any mortgage or car loan payments, the disposable income will be used to pay off the creditors of your unsecured debts through a 3 to a 5-year repayment plan. This shall include the value of the non-exempt property which you intend to keep. Any creditor who thinks they are not getting their due can file an objection to the plan, which may derail the entire bankruptcy process.

            Keeping a car which, you cannot afford is being foolish and stubborn. Chapter 13 lets you surrender any vehicle on which you cannot make timely payments and that will require huge loads of money for repair. You will reduce the debt burden by letting go of such a vehicle. The court also does not look kindly to people using funds in a misappropriate manner, paying for excessively high car payments instead of paying the creditors’ their dues.


              *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 is Contingent, Disputed or Unliquidated Bankruptcy?

              What is Contingent, Disputed or Unliquidated Bankruptcy?

              Bankruptcy filing involves the submission of accurate information in order to ensure the process is fair and transparent. The information submitted plays a very vital role in the bankruptcy court decision making.

              The common focus of information can be listed as follows-

              • What is the amount of money do you make from all your consistent sources?
              • How much dues do you have pending?
              • What are the different assets/properties owned by you?
              • What is your monthly expenditure budget?
              • Was there any transfer of asset recently?

              These are some critical questions which are to be addressed before filing for bankruptcy. There has to be some issue with respect to the lender claims for the court to resolve. Either the claim should be disputed, unliquidated or contingent in order for the court to continue with the proceedings of the case. In straightforward bankruptcy cases, the case is about the amount due. For instance, if you haven’t been keeping up with the car mortgage payments, the net due will be the focus amount in straightforward cases. Learn how you can save your car even while filing for bankruptcy by logging on to Recovery Law Group now.

              When realizing the claim amount is complicated

              Not all bankruptcy cases can be simple to equate is so easily. They might involve some tedious bits of calculation, estimation, and paperwork. This can happen if the bankruptcy filer has any of the following claims-

              • Contingent claim

              If the claim due depends on a particular event, circumstance or future action, it is referred to as a contingent claim. It can be very difficult to consider the amount of liability or benefit one can realize from a contingent claim. It is also very difficult to judge if it should be considered as an asset or a liability depending on circumstances during the bankruptcy procedure.

              • Unliquidated Claim

              If the dues cannot be substantiated to a clear number, it can be referred to as an unliquidated claim. In this case, the debt exists but it is difficult to arrive at the exact dollar amount of the debt. This is very commonly seen with respect to lawsuits where compensation varies and there is no possible way out to make a provision or estimate for the amount of liability or benefit.

              • Disputed Claim

              The case of a disputed claim is not determinable as there is a conflict between the lender and the debtor with respect to the amount due. This is commonly seen with respect to IRS or some government agencies. For instance, you filed a tax return and as per IRS you owe $10,000 but you think you owe only $5,000. This is a disputed claim and it might well be $5,000 if you file an amended return and justify your thinking to IRS. IT might well be $10,000 if you fail to prove your $5,000 liability point. When filing bankruptcy, you shall disclose the actual lien and not the amount you personally think you owe for the purposes of accurate reporting.

              Listing claims and pay off of claims

              It is important to list all types of claims when filing for bankruptcy in Los Angeles. Any omission can prove to penalize as it is undue manipulating of the bankruptcy court. Also, you might end up losing on the opportunity of getting a claim discharged or released. Paying off claims when filing bankruptcy works in a set procedure. The steps can be illustrated as follows-

              1. The bankruptcy trustee appointed by the bankruptcy court first sends out a notice to all lenders alerting them about an ‘asset case’
              2. The lenders need to file a proof of claim before a pre-defined deadline in order to recover their debts from the proceeds
              3. The bankruptcy trustee shall release the proceeds as per the priority defined/arrived based on different parameters and circumstances. The proceeds are released only after verifying the proof of claim documents

              No matter what the circumstances are, there is always an easy way out if professional advice and help are around. It is just a matter of a few digits away from you. So, why complicate more just dial 888-297-6203 to uncomplicate your finances now!


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

                *Do you own a home?

                Are you currently working?

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

              • Know about Texas Bankruptcy Exemptions

                Know about Texas Bankruptcy Exemptions

                Filing for bankruptcy is often considered to be a taboo. You need to open your mind to realize that it is one of the best options to manage your finances, especially if you are struggling with large debts. The government provides various exemptions to debtors when they file for bankruptcy. Call 888-297-6023 to know more about these exemptions and how you can benefit from them.

                Apart from federal bankruptcy exemptions, every state has its own list of exemptions which protect a large portion of bankruptcy filer’s property. When you file for bankruptcy, everything you own becomes a part of the bankruptcy estate, from which you can keep certain exempt property without paying anything. According to Dallas based bankruptcy law firm, Recovery Law Group, some states offer you a choice between federal and state set of exemptions, while others allow you to choose from the state exemption sets only. Though the state of Texas offers you a choice between state and federal exemptions, the state exemptions are plentiful. What’s more, if any asset is not covered by Texas exemption, you can opt for wildcard exemption of federal bankruptcy scheme. A married couple filing for a joint bankruptcy can double the exemption for any joint property they own!

                Here’s a look at various Texas bankruptcy exemptions:

                1. Texas homestead exemptions

                The unlimited homestead exemption is available for 10 acres or less area residence in village, town or city or 100 acres or less in the country. For married couples, this exemption doubles! In case you sell your house, the proceeds are exempted for 6 months after sale under this exemption.

                1. Texas motor vehicle exemptions

                The entire value of one motor vehicle per licensed household member is available as per this exemption. In case there is an unlicensed person who depends on someone else to drive him/her around, you can still get the vehicle exempted.

                1. Texas personal property exemptions

                Personal property except real estate exemptions cannot exceed $100,000 ($50,000 in case of a single adult, without family). in case your personal property exceeds the exemption limit, that much amount will become non-exempt. This includes:

                • Sports and athletic equipment including bicycles;
                • Home furnishings including family heirlooms;
                • Jewelry (with an upper limit of 25% of total exemption, i.e. $25,000 in case of family and $12,500 in case of individual filer);
                • Food and clothing;
                • Up to 2 firearms;
                • Animals, including pet and domestic, plus their food. You are allowed two mules, donkeys, or horses plus tack, 12 head of cattle, 60 head of livestock and 120 fowl;
                • Health saving accounts;
                • Health aids like walking sticks, wheelchairs, hearing aids, ;
                • Burial plots;
                • Bible or any other sacred book (not subjected to $100,000/$50,000 limits).
                1. Pension and retirement accounts

                Most pension and retirement accounts are exempted in both state and federal exemptions. Texas state also provides exemptions to the following pension and retirement accounts:

                • ERISA-qualifies government or church benefits. This includes IRAs, Keoghs and Roth IRAs.
                • County and district employee retirement and pension benefits.
                • Firefighter pension and retirement benefits.
                • Law enforcement officers, emergency medical personnel survivors’ benefit.
                • Police officer retirement and pension benefits.
                • Judges pension and retirement benefits.
                • Municipal employees, state employees and elected officials’ retirement and pension benefits.
                • Teacher retirement and pension benefits.
                • Retirement benefits which end up being tax-deferred.
                1. Insurance exemptions

                These include:

                • Life, accident, health insurance or annuity benefits such as money, policy profits or cash value due or paid to the beneficiary;
                • Texas employee uniform group insurance;
                • Fraternal benefit society benefits (e.g. from Freemasons, Elks, Knights of Columbus, );
                • Texas public school employees’ group insurance;
                • Texas state college or university employee benefits.

                However, Texas does not offer any exemption against lawsuit proceeds. It also lacks a wildcard exemption through which you can protect any property as per your wish. The silver lining is that such a provision is available in federal exemption set, through which you can protect a portion of such funds. In case you have a pending lawsuit or an injury claim under process in court, it becomes part of your bankruptcy estate. If it appears to be of value, the bankruptcy trustee Dallas might hire a lawyer to litigate it. It is important to, therefore, check exemptions before filing for bankruptcy.


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

                  *Do you own a home?

                  Are you currently working?

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

                • Chapter 7 Bankruptcy and Release of Debts

                  Chapter 7 Bankruptcy and Release of Debts

                  Filing bankruptcy under Chapter 7 is usually with an objective of getting away with all or most unsecured debts. While it is a fact that Chapter 7 bankruptcy can help in releasing most debts secured and unsecured debts. It is also a fact that certain type of debts or liabilities do prevail even after Chapter 7 bankruptcy Los Angeles. Credit card debts pay day loans, etc., are some common unsecured loans that could be released with Chapter 7 bankruptcy.

                  How does the release of debts work?

                  A release of debt basically relieves an individual from the liability to repay the debt. It also prevents the lender from making any attempts to recover the debt. The debt has to be written off once released and legally there is no liability for the bankruptcy filer towards the creditors. A lien which has not been voided by the bankruptcy court prevails even after filing a Chapter 7 bankruptcy. This lien can be put to exercise by the lender in order to recover his/her debts. For instance, if you have not been able to keep up on your car loan payments, the lender can exercise the lien and sell/acquire the car and release you of any debt in return. You can also sign an affirmation agreement with a promise to settle dues in a specific time period to retain the car.

                  How does the release of debt procedure work?

                  Normally, the release is availed automatically or as we say is applied once the case is closed by the bankruptcy court. The release debt usually occurs within 60 days or 2 months of the creditors meeting. Roughly it would take about 120 days or 4 months for the debts to be released from the day you file your bankruptcy application. There are two kinds of debts which a filer can occur, and both have different consequences. They can be listed as follows-

                  1. Pre-filing debts

                  Pre-filing debts as the name clearly suggest are debts that have been incurred before filing of bankruptcy. The court shall release all valid and qualified pre-filing debts for the bankruptcy filer after assessing and evaluating all the factors of consideration.

                  1. Post-filing debt

                  These are debts which have been incurred after the bankruptcy has been filed. Since the duration for the debts to get released from the filing day could be about 4 months, there is the possibility of some bills and expenses to rack up during this period. The bankruptcy filer is completely responsible for these expenses and the bankruptcy court shall not release any of such debts.

                  What are some of the common debts that are discharged?

                  There are few types of common debts that can be released under the Chapter 7 bankruptcy code. These can be listed as follows-

                  • Credit card dues
                  • Collection agency dues
                  • Medical bills
                  • Personal loans from family members, friends, and fellow employees/employers
                  • Utility bills pre-filing debts only
                  • Bounced or dishonored checks
                  • Repossessed deficiency balances
                  • Lease agreement dues
                  • Automobile accident claims unless until found guilty of drink and drive
                  • Business Debts
                  • Dues from civil court judgments
                  • Penalties for underpayment/nonpayment of federal/state taxes and federal/state taxes
                  • Social security overpayments
                  • Veteran assistance loans
                  • Attorney fees excluding child support and alimony fees

                  This is not an all-inclusive list. But it consists of the most commonly released debts. To learn more about other non-releasable debts, seek assistance about the release of debts, dial in +1 888-297-6203 now.


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                    *Do you own a home?

                    Are you currently working?

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                  • What Impact Does Low Bankruptcy Filing in Los Angeles has?

                    What Impact Does Low Bankruptcy Filing in Los Angeles has?

                    Most of the people living in cities like Los Angeles and Dallas, TX face the dilemma of whether to file for bankruptcy or not. In the last decade, there were quite a large number of people who used to file up for bankruptcy to overcome their debt. However, this number has rapidly declined in the past few years to such an extent that it has reached to lowest of the past 10 years. According to the statistics shown by the United States Bankruptcy Court, the number of bankruptcy filings in Central district of California has dropped down to 9415 in the first three months of the year 2017 and this number is the lowest ever since the year 2007.

                    Here we will present some of the statistics based on the local trend shown in the filing of bankruptcy that will help you to understand the impact of reducing filing bankruptcy numbers and hence to decide whether it would be favorable to you or not.

                    Latest trends in bankruptcy filing:

                    It can be easily deciphered by seeing the above-mentioned figures the filing of bankruptcy has enormously declined in the past 10 years and it has hit a historic low. However, this does not mean that people have overcome the problem of debts completely. Still, there is a large crowd that is filing for bankruptcy to overcome their debts. According to the data presented by the central district of California’s federal bankruptcy court which involves Los Angeles, Riverside, Orange, San Luis Obispo, San Bernardino, Ventura, and Santa Barbara it can be observed that still their bankruptcy filing is one of the most popular ways to get rid of debts.

                    As per the data presented in the year 2017, the following numbers can be noted:

                    • A decline of 7.6% in chapter 7 filing in which 11769 filings are new.
                    • A decline of about 4.1% in chapter 13 filings with 4070 new filings
                    • The overall decline of 6.7% in bankruptcy filings with total 15996 new entries

                    These numbers were much larger as compared to the ones in the last decade. According to the data of the year 2007, there were about 9400 bankruptcy filings under chapter 7 in Los Angeles which accounts for a 60% increase since the year 2006. There was further an increase of 72% in the next year which is 2008 and it continued till the year 2011 but after that, it gradually started to decline and touch the lowest trend in the year 2017.

                    What is the reason for reducing bankruptcy filings?

                    It can be inferred that the number of bankruptcy filings has rapidly declined in recent years. Hence it is very vital to analyze and determine the reasons behind this decline. This reduction is not only in Los Angeles and California but is prevalent in the entire United States.

                    One of the most speculated reasons behind this decline as stated by the specialists is the decline in medical debts which accounted for potential debts for most of the Americans. Since it is a well-known fact that medical bills accounted most of the expenses by people of United States, it is obvious that reduction in Medicaid bills due to affordable care act and touted economic recovery, have significantly affected the bankruptcy filings.

                    The working mechanism of bankruptcy explained:

                    The main purpose of bankruptcy is to discharge the debts. As per the provisions of chapter 7 which is termed as the liquidation bankruptcy, an indebted person has to make zero repayments if he is found eligible for it and files for the bankruptcy under chapter 7. He can also keep is property if he uses the exemption law of this chapter. Hence he is able to get rid of various debts via the bankruptcy discharge. However, if you fail to meet the eligibility to file bankruptcy under chapter 7, then you have another option- chapter 13. Filing for bankruptcy under chapter 13 helps you to make a repayment plan and also to reorganize the debts which will eventually prevent you from problems like foreclosure. One of the most amazing benefits of filing bankruptcy is that it helps you to get rid of the creditors and exasperating money collectors by providing an automatic stay.

                    Is filing bankruptcy a boon or a bane?

                    To know whether it would be beneficial for you to file for bankruptcy or not, you must first consult a well learned and wise bankruptcy attorney like Recovery Law Group and discuss your case with them. You can contact the team on 888-297-6203 and take advice for your case. A good bankruptcy attorney would be able to precisely tell you if you should file for bankruptcy or not and whether you should file for chapter 7 or chapter 13 depending on your account and debt status. You must not fall into the trap of temptations of filing bankruptcy yourself as there are many terms and conditions that you might not be aware of.


                      *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.

                    • How is Post-Bankruptcy Life in LA- Know The Benefits of Filing For Bankruptcy

                      How is Post-Bankruptcy Life in LA- Know The Benefits of Filing For Bankruptcy

                      After being in debt for a certain period of time, it is wise to file for bankruptcy. However, filing for bankruptcy for the first time can be quite an inquisitive task. You might face numerous questions and doubts about how your life will transform after bankruptcy. A good and experienced Attorney firm, Recovery Law Group can come to your rescue in such a case.

                      In cities like Los Angeles and Dallas, TX it is quite common for people to be indebted owing to their lifestyle and standards that eventually lead them to bankruptcy. However, it is an astonishing reality that life after bankruptcy can be amazing too. This is so because your bankrupt life span might just contract to 3 – 5 months if you file for chapter 7 or for 3- 4 years if the filing of chapter 13 is done. And to get your bankruptcy discharged in short span of time, all you need to do is to get a well-qualified bankruptcy attorney. Not doing so might raise the chances of non-discharge of your debts, which will be a bad circumstance.

                       Here is a list of few benefits of filing for bankruptcy that you need to know:

                      1. There will be no more credit card and medicinal debts

                      In major parts of America, medical bills and credit card expenses count for the maximum debts which eventually make them bankrupt. However, qualifying for and filing bankruptcy in chapter 7 can solve this issue. Chapter 7 which is the liquidation bankruptcy sets you free from several debts including credit card and medicinal debts. This law, however, does not gives relief to ones indebted by loans like student loans, taxation debts, etc.

                      1. It protects your house from foreclosure

                      It is usually advised not to pay your off secured debt like debt for your home with unsecured debt like your credit card. Even the converse of it is a straight no. This is so because it can result in a huge mistake as a homestead is generally considered as an exempted property under chapter 7 bankruptcy as per the equity. Also, under the liquidation bankruptcy, only the unsecured debts are discharged and hence refinancing your home might lead to foreclosure. Filing for bankruptcy can, however, get you an automatic stay which prevents situations like foreclosure and lawsuits, etc.

                      1. You will not need to touch your retirement funds for paying the debts

                      The liquidation bankruptcy of chapter 7 saves your retirement funds and other social security benefits from the bankruptcy estate. Moreover, if you are a senior citizen, you might also get guidance over estate planning and might also get judgment proof. This means that apart from discharging the unsecured debts, you are also entitled to forward your hard earned money and property to your family and friends. Even if you are of middle age you must not touch your retirement estate to pay debts as these funds are protected under chapter 7 bankruptcy.

                      1. Be cautious before paying back to your relatives

                       It is highly recommended to pay back the debt to your relatives and family members only after your bankruptcy is dissolved. This is so because if you pay back that debt before the end of the bankruptcy, your pay back money is entitled to be plopped back into your bankruptcy account. However, if the case is urgent, you must take advice from your bankruptcy attorney about this. Also if someone is seeking divorce during the bankruptcy period, it might be beneficial for him/her because this might help them in resolving property divide in a much easier and smooth way. However, again it is recommended that you consult a wise and well-learned bankruptcy attorney over such matters and then proceed.

                      1. A new chance to amend your credit and the budget

                      One of the best benefits that you get after filing for bankruptcy is that your budget starts to mend in a beneficial direction. Also after a time period of about 7 years, the negative value of the credit stops showing up but the credit report might show the bankruptcy status for about 10 years from the date of filing. This time span is just about 3-4 years in cities like California.

                      One thing that you should keep in mind is that your planning of budget includes all the living expenses from the biggest to the minutest. You must ensure that you make all the bill payments and also save a part of your earnings for the situation of crisis. You must keep a check on your credit card reports from time to time. For this, you can also sign up for apps like credit karma, mint, etc that will help you in this work of monitoring your credit score. Such apps also provide suggestions about the most beneficial deals for you considering your current bank account status and credit score. You may also consult the Recovery law group for advice on 888-297-6203.


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

                        *Do you own a home?

                        Are you currently working?

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