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  • Filing Bankruptcy in case of Natural Hazard in Los Angeles

    Filing Bankruptcy in case of Natural Hazard in Los Angeles

    Natural calamities cause a huge impact on every individual’s life in every possible aspect. It takes several years for a person to overcome the losses caused by a natural disaster and to get back to a normal life. It causes great mental as well as financial peril on everyone’s life. Many people find it hard to overcome the financial burden due to pre-disaster debts accompanied by post-disaster losses. Hence there is a sudden boom in the number of people filing for bankruptcies immediately after a natural calamity. In recent years Los Angeles and Dallas, TX have seen many natural disasters which have toppled the life in these areas. Hence there is a dramatic rise in bankruptcy cases too. If you are also looking forward to filling bankruptcy then you must visit Recovery Law Group or dial 888-297-6203 for the best assistance.

    How natural disaster does cause an increase in bankruptcy cases?

    It is a common trend that the number of bankruptcy cases increases after the occurrence of a natural disaster in an area. However, this rise may not be immediate because just after a natural calamity, the first priority of people is to get back to normal living condition rather than repayment of loans and debts.

    Another reason behind the delay in filing bankruptcy is the migration of people to new places in search of job and livelihood. Hence they might file for bankruptcy from their new place after they settle down there. Also, in case of a natural disaster people tend more towards taking debts rather than repaying their previous debts. This is so because they, first of all, want to rebuild their shelter and start a source of income for themselves which requires money. However, this money may sometimes cross their limit to repay the debt and hence lead them to the situation of being bankrupt.

    Hence in all, there is some lapse needed to properly evaluate the effect of natural calamities on the bankruptcy cases. This time can be about 2 to 4 years.

    According to a study conducted by a professor named Robert Lawless of Nevada University, Las Vegas, it was observed that there was an increment of 50% in the bankruptcy cases after three years from the date of occurrence of a hurricane in the region under the study. Also, it was inferred that the cases of bankruptcy rouse more in areas with less worthy houses in comparison to the areas with high-end houses.

    It is better to be prepared rather than losing in Los Angeles:

    Unlike other cities of Southern America, Los Angeles stands third in the vulnerability to a home loss in case of natural disaster hence it is very important for its people to be prepared beforehand for any such calamity. These disasters may be hail, earthquake, tornadoes, floods, etc.

    According to the past trends, it is seen that in hurricane and flood-prone areas, there is a drop in housing rates which is not the case with earthquake-prone regions. This is so because the earthquake is much common in these areas and hence people are much more used to face it as compared to other disasters. Thus, people in such places hardly take up insurance against earthquake which can be termed as just a vague kind of optimism. This practice can be bothersome in areas which show a tendency of being hit by an earthquake of magnitude above 6.5.

    Hence, it is always recommended to take earthquake insurance if you live in areas vulnerable to it irrespective of your capabilities to face the aftermath of an earthquake. This preventive measure must be taken for every kind of natural disaster. It is good to be optimistic about life but it is better to be preventive so that if an unexpected calamity occurs you can get back to a normal life without facing much loss.

    How to prevent yourself from financial peril following a natural disaster?

    As explained above, it is extremely important to beware of any natural disaster and be prepared to face the repercussions of it beforehand. For this to happen, first of all, you must plan and put a small part of your regular income into some kind of emergency fund or insurance scheme. Such schemes might include natural disaster as well as other emergency situations. Thus you must hold an emergency fund always. You can also opt for any natural disaster-oriented insurance scheme if you want to. For this, you can consult a good insurance agent who would be able to guide you through the best possible insurance schemes for you.

    In case of occurrence of any natural calamity, there are certain things that you need to be aware of. Three of the most important things that you need to keep in mind are enlisted below:

    1. If you have opted for an insurance scheme but the insurance agency denies the payment of insurance money that was promised, then you must not surrender. Instead, you must fight for your right and get the promised amount of money as per the insurance scheme that you signed.
    2. You can also go through a financial assistance program run by various government firms to help its public to plan their finances in case of a natural disaster. However, you might have to work hard a bit to know about them and enroll in them.
    3. Another option to get back to normal life could be bank loans for disaster-hit areas that help people to rebuild their homes and provide finances to them for survival purposes.

    And still, if you feel like filing for bankruptcy then you must consult a good bankruptcy attorney who will guide you through the complete filing process and will also recommend you the best possible way to get through the financial peril after a natural disaster. If you live in Los Angeles, then you can visit Recovery Law Group or better guidance on how to file bankruptcy.


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      *Do you own a home?

      Are you currently working?

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

    • Is there any hope left for Student Debtors?

      Is there any hope left for Student Debtors?

      Contrary to other common debts, student debt is considered “next to impossible” to pay off debts. And if the student plans on paying off these kinds of debts, they will end up in “undue hardship”. A recent Court case has relieved the burden of many such students and has arisen a Ray of hope in them once again.

      In Sara Fern v. Fedloan Servicing, the bankruptcy court’s judgment was passed in favor of Sara Fern. The court stated that the student loan due on Sara worth $27,000 would indeed cause undue hardship in her case and hence the loan was waived off. This case is unique and needs special mention since the decision could have been reversed as well, where Sara could have been asked to enroll in a repayment plan where she could pay off her loan slowly with no monthly obligation.

      Despite, U.S Department of Education’s plea that she was not facing undue hardship as she was not paying the loan amount every month, the court passed the judgment in favor of Sara, as she had 3 children to take care of and no supporting hand. She was in fact barely able to make ends meet with her current job which paid her merely $1,506.78 per month. She supported all evidence which proved that despite searching for better opportunities and job alternatives, she was unable to find a better option which took care of her basic needs along with paying off her loan amount.

      The bankruptcy court took into consideration the cost of repayment plans, accrued interest along with the impact that the debt would create on Sara’s housing and Credit statement while passing its decision to discharge her loan. As much as this judgment is unique, the most astonishing fact about this decision is that the court believed that the debt would create emotional stress on Sara making it another reason for its judgment.

      Despite the unique decision taken by the bankruptcy court in case of Sara Fern, it paves the way for future litigation and approach on similar cases.

      If you are a victim of Student loan and are looking for an option to get relieved from them, Recovery law Group, an esteemed name in Dallas and Los Angeles, comes to your rescue. You can reach out to them with your problems at – 888-297-6203


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

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

      • Instagram Photos land Rapper 50 Cent to Bankruptcy Court!

        Instagram Photos land Rapper 50 Cent to Bankruptcy Court!

        Rapper 50 Cent got a rude shock when he was called to court for his Instagram photos. Despite filing for bankruptcy under Chapter 11 in summer, he had been posting photographs on Instagram, posing with huge stacks of cash. This raised suspicion and he was ordered to appear in bankruptcy court to explain his actions since bankruptcy is a legal way out for people who have been unfortunate enough to suffer huge irreversible financial losses. Transparency while filing is one of the important points for an individual to get relief. However, with photographs like the one posted by the rapper, 50 Cent’s asset disclosure seemed anything but transparent!

        Tantalizing photos of the rapper lounging on a bed surrounded by bundles of cash; refrigerator filled with money and stacks of $100 bills being used to spell “BROKE” apart from online reports of him buying a swanky new house in Africa were the reasons for him being called to explain his actions in bankruptcy court. Since a person who fails to disclose his assets while filing for bankruptcy can lose more than he intended, it is better, to be honest with your lawyer. In case you are looking for a bankruptcy lawyer in Los Angeles Contact Recovery Law Group at phone number – (888-297-6203).

        In Rapper 50 Cent’s case, the lawyer clarified that the photos, which probably were from an earlier occasion and for promotional purposes (brand image), were used by people who were out to smear his reputation in order to cough out money. A disgruntled women who wanted to collect $7 million from the rapper due to a sex-tape dispute but was unable to, joined hands with a disgruntled partner of a failed headphone deal and 50 Cent’s mortgage lender. The purpose of their association was an attempt to get an independent financial expert to manage 50 Cent’s money till the time he could pay back $30 million to his creditors. Thanks to his expert lawyer, 50 Cent was able to dodge all these allegations. Needless to say, having a good lawyer and a transparent relationship with them can save you from being unceremoniously dragged to court.


          *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.

        • Different Ways of Supplementing Your Income

          Different Ways of Supplementing Your Income

          Los Angeles is one of the most expensive cities in America, where the cost of living is 43% more than the national average and cost of housing is more than Two times the national average. This has led many people residing here to live under debt or impatiently wait for their pay cheque every month. Many people are looking for alternatives to supplement their income. The gig of short-term work is on the rise. Selling your stuff on the internet to increase your income is a great way. Thanks to the internet, A lot of options are available for people to sell particular belongings either online or offline for cash.

          Know Everything about Selling Stuff Online

          Many online marketplaces are thriving thanks to the internet boom. In case you wish to sell stuff online, some of the popular options include:

          • eBay — Here any object is sold at a fixed price auction to the highest bidder. The stuff that is mostly sold on eBay combines vintage merchandise, niche products, collectors’ items. It is important to remember that there are a number of fees associated with the site listing fees, final sale fees, Paypal processing fees, etc.
          • Craigslist – IS a common choice for one-off sales. Listing and selling here are free where most sales are completed personally unlike eBay where the entire transaction takes place online.
          • Facebook Marketplace – Here, You are selling to people you already know. FB Marketplace accounts are linked to Facebook profiles so you are aware of the identity of the buyer as well as a seller here, Unlike Craigslist where there is anonymity.
          • Amazon – In case you have a number of the same type of products to sell, Amazon is a great option.
          • Etsy – Etsy is the preferred listing and selling the place for all creative and crafty items.

          Since first-timers often end up making some mistake while attempting to sell stuff online, it is important to be aware of tips which can help make more money.

          1. Never ship product till payment is received. If you are selling stuff online, trusting the other party is important, However, Not at the cost of getting fooled or being cheated. Blind faith while selling the stuff will result in you being in for a monetary loss. It is important to see that the payment is credited before dispatching the stuff.
          1. Keep margin for shipping costs. Shipping off stuff requires money. You need to be aware of how much money you will require to spend on shipping before actually putting a price on your stuff. U.S. Post Office postage cost calculator comes in handy in such cases.
          1. Ensure personal safety. In case an online business deal is to be completed in person, It is important to ensure your personal safety. Choose a public place during normal business hours for the meet. In case a local police station offers SafeTrade Stations where online buyers and sellers can exchange goods and cash that is a better option. If you do not wish to share your address with strangers, You can always rent a P.O. Box from the local post office.

          Everything about Selling Stuff Offline

          In case you wish to sell your stuff directly without any additional charges like shipping costs, transaction fees and avoid any shady people you meet online, then offline selling options are also available. Offline sale options include:

          Garage sale – If you wish to sell off stuff the traditional way, holding garage sale is an excellent option. All you need to do is find out the local rules to figure out the details and advertise about it. It is a great way to get rid of all your unwanted stuff.

          Pawn shop – If you want instant cash for your stuff, pawn shops are your best bet as they pay you immediately. However, The price that they pay is generally below the market value of the item.

          Consignment shops – Though they might appear similar to pawn shops, consignment shops are different. In this case, your property is under your ownership till it is sold. The proceeds are split with the shopkeeper once it is sold.

          Trade-ins – People can use this way to sell off the automobile and similar stuff to reduce the price. Many businesses allow people to trade stuff (gaming consoles, old video games, smartphone, etc.) at a discount, in-store credit or cash.

          Taxes are an integral part of your pay. When you work for an employer, Your employer cuts taxes at source, however, When you make any earning as an independent contractor or a freelancer or even by selling your stuff, every penny you earn is yours. It is important to remember that you do owe taxes in this case too. You need to assure that your income is set aside and provisions are made to cover the income tax bill as well as the self-employment tax. Though there probably won’t be any form listing available for the money you earned by selling your stuff, You are required to report the same to the government. Understanding what you had originally paid for the stuff can help as you can deduct that amount while paying income tax.

          Though both online and offline selling methods are lucrative, it is important to make a decision regarding the best one for you. In case there is an urgent requirement for cash, then pawn shops or trade-in are a good option (Sometimes, Facebook Marketplace or Craigslist can also give quick results). In case, time is not short, then all options are open for you. If monetary problems are the reason why you are wishing to sell your stuff, then it is important to consult bankruptcy lawyers. They might find another way where you don’t have to sell your prized possessions and yet get out of trouble. Consulting with lawyers makes you aware of your options vis-à-vis bankruptcy and clearing debt problems without losing any property.


            *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 – An Advisable Strategic Move

            Bankruptcy – An Advisable Strategic Move

            Since the bankruptcy law overhaul in the year 2005, there has been a forecast of reduction in the number of Chapter 7 and Chapter 13 bankruptcy filings. The Federal Reserve Bank of New York in a report states that this condition could be a trend. On the other hand, it also indicates, that filing for bankruptcy is not as negative and bad as believed by the public. The lack of understanding amongst the U.S. public about the way bankruptcy works is mainly the reason for the forecast of a decline in bankruptcy filings.

            There’s more to the same report! For those people who consider that being in insolvency is better than bankruptcy, they stand to lose their retirement savings. Not only this, but their creditworthiness will also not scale up high when tests are conducted to assess them. This would land them in conditions where they are denied lines of credit from the financial institutions in the country.

            Isn’t that surprising? Yes!

            Filing for bankruptcy is seen as a strategic move by the debtor. It reflects on the capability of the debtor to address his poor economic conditions and take appropriate steps to mend it. The report recounts the fact that the debtors who have filed for bankruptcy benefit from large-purchase credit and have better accessibility towards funds.

            The misconceptions around the bankruptcy processes, that it is too difficult to handle and that it costs a lot, have been continuously propagated by the debt consolidation companies. For them, their goal is to prevent the consumers from filing bankruptcy. The debtors who fall prey to these suffer from heavy debts and are able to make very minimal monthly payments towards them.

            Seek the services of a renowned company like Recovery Law Group, who will work with you to start assessing your financial condition from the roots. They conclude on your capability towards paying off debts and will advise the course of action. They work alongside several clients in Los Angeles and Dallas regions for Chapter 7 and Chapter 13 bankruptcy cases. If you are based in one of these two cities, Recovery Law Group is just a phone call away! Call them at 888-297-6203 for an appointment!


              *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.

            • Role of your Chapter 13 Bankruptcy Trustee

              Role of your Chapter 13 Bankruptcy Trustee

              When a Chapter 13 bankruptcy is filed, the debts are generally reorganized and repaid within five years. The creditors receive the dues over a three to a five-year term and the administration of this plan is monitored by an appointed trustee, exclusively for Chapter 13 filings. Here is a brief list of the bankruptcy trustee’s duties with regards to Chapter 13 bankruptcy filing –

              • Reviewing all associated paperwork of the filing
              • Reviewing of the repayment plan for its compliance to bankruptcy laws
              • Collecting the payments as per the plan and distributing the same to the creditors
              • Executing the full terms of the Chapter 13 plan

              (more…)

            • Do You Need an Attorney While Filing for Bankruptcy?

              Do You Need an Attorney While Filing for Bankruptcy?

              Troubled financial times may cause people to make rash decisions, which will throw them further into an abyss. For people who are considering bankruptcy as a mean to get out of a bad financial situation, there are two options available. You can either file “pro se” or use a lawyer to file bankruptcy papers. Many people think, that by avoiding hiring a lawyer, they are actually saving money in legal fees. However, if you are not fully aware of the procedure, you might end up sabotaging your case which might worsen your already bad condition. (more…)

            • Benefits of Bankruptcy Consultation

              Benefits of Bankruptcy Consultation

              More often than not, people prefer dealing with severe financial problems than opting for bankruptcy as the word has been often been misconstrued. A bankruptcy filing is a legal and one of the best methods to come out of financial problems and start life afresh. However, before you make a decision to file for bankruptcy, it is important to get a consultation with skilled bankruptcy lawyers such as those of Los Angeles based law firm Recovery Law Group.

              What to Expect in Bankruptcy Consultation?

              Taking legal assistance for your financial problems is important as sometimes you might not be aware of the best legal recourse to deal with the issues at hand. However, before you meet a bankruptcy lawyer, it is important that you are well prepared so that you are able to save both time and money. Having your financial information on hand is important, therefore collect all information about your finances including:

              • Bank statements
              • Loan agreements
              • Creditor’s information
              • Contract information
              • Receipts for any payments made
              • Foreclosure documents in case proceedings are pending
              • Correspondence with creditors (sue notice etc.)

              All these and related documents will help the attorney with all background information about your financial problems. With this information at hand, work for the bankruptcy proceedings can be initiated sooner.

              It is important to keep in mind that lying about your finances to the bankruptcy attorney is not going to help your cause. You need to be open to the lawyer and should not withhold any information pertaining to your dues or assets as this may get your case dismissed without any discharge of debts.

              In case you have any questions pertaining to the impending bankruptcy, it is important that you discuss them with the lawyer during the bankruptcy consultation. This will help alleviate your concerns and also make you aware of the eligibility factors and any other potential issues which could obstruct the chances of your case going ahead.

              Taking a bankruptcy consultation with specialized lawyers provides you with a better idea of the concept as well the recourse to be taken to get rid of the financial mess you are currently in.


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

                *Do you own a home?

                Are you currently working?

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

              • All You Needed to Know About Personal Bankruptcy and Business Ownership

                All You Needed to Know About Personal Bankruptcy and Business Ownership

                For people who are the sole proprietor of their business, filing for personal bankruptcy can have ramifications on the business ownership too. This depends on how the business was legally organized and the type of bankruptcy you have filed in the court. As per U.S. bankruptcy code, individuals can file for bankruptcy under two chapters, depending on their circumstances – Chapter 7 or Chapter 13.

                As lawyers of Los Angeles based law firm Recovery Law Group explain, Chapter 7, also known as liquidation bankruptcy is one of the most common types of filing done in personal bankruptcy cases. During this process, a trustee (an individual or an entity) is appointed by the court who oversees the liquidation of all the non-exempt property of the filer so as to settle the debt claims. The non-exempt property is that property which the court permits the filer to keep after the declaration. The amount of assets that any debtor can keep varies from state to state. According to Chapter 7 filing, the debtor’s business ownership can be considered an asset which can be liquidated. However, the methods for assessing the value of the asset can vary widely with debates arising over the proportion of ownership in case of closely held corporations.

                Unlike chapter 13, a business going through bad financial times can file for bankruptcy under Chapter 7. However, the business does not get a discharge but its assets are liquidated and the business reorganized so as to distribute the money to the creditors on the basis and priority of their claim. If any remaining amount of due remains, it is wiped off. In case the owners do not want to close the business and liquidate all the assets, they can choose to file for bankruptcy under Chapter 11 to reorganize and pay back the creditors.

                Another type of bankruptcy filing for individuals is Chapter 13 which offers to reorganize the finances by taking into account the debtor’s assets, the debt due to him/her, and the expected future source of income or revenue. The court appoints a bankruptcy trustee for this task and the creditors agree to the repayment plan calculated by the trustee after taking into account the various previously mentioned factors. Since only individuals can file for bankruptcy under this chapter, if you are a sole proprietor or own shares in a corporation, only then you can file an individual Chapter 13. You need to list your property interest on Schedule B to get exemption on the equity you have in the business. It is important to remember that in Chapter 13 bankruptcy, debts limits of nearly 1 million in secured debts and about 380,000 in unsecured debts is available.

                When you opt for a reorganization filing (Chapter 13), the court mandates a repayment plan and personal living budget, which needs to be adhered strictly. The entire reorganization plan needs to be followed for a long duration, typically 3-5 years. Since some portion of the money will flow from business to the individual during this time frame, the business ownership assets might be affected.

                Bankruptcy Outcome May Depend on the Legal Formation of Your Company

                A small business is generally organized in one of the three forms –

                • Sole proprietorship,
                • Limited liability corporation (LLC) and
                • Corporation

                Corporations can be of 2 types: S-Corp or C-Corp, wherein, in the former case, profits or losses flow through to the shareholders, and in the latter case, corporations are taxed separately from their owners. With LLC, the organization structure has a blend of both individual and corporate structure. Just like C-Corporations, LLC to has a separate legal existence from its owners. The U.S. business code provides the owners in LLC to have limited liabilities for corporate debts. However, not all closely-held corporations can be treated similarly as the unique circumstances might differ. It is therefore important to have a consultation with a bankruptcy attorney regarding your current financial situation.

                Sole Proprietorship

                In case a business is a sole proprietorship, the law doesn’t distinguish between the individual and the corporation, however, the specifics of the portion varies from state to state. Generally, however, due to the close association between the individual and the business, personal bankruptcy may also be considered a business bankruptcy. Under Chapter 7, the court will regard the business as a personal asset which may be liquidated to pay off creditors.

                Personal Bankruptcy in Case of LLC or Corporation Ownership

                These types of companies are regarded as separate legal entities, unlike sole proprietorship. Thus when individuals with corporate interests file for bankruptcy, only the portion of business ownership which is held by the bankruptcy filer gets affected. The business can run in the usual manner with debtor’s equity in it becoming an asset in the personal filing.

                Homestead Exemptions in Personal Bankruptcy

                The court, in many states, allows legal provision which exempts the primary residence of the bankruptcy filer from various legal claims including bankruptcy. This is known as the Homestead Exemption. It is one of the major reasons why many entrepreneurs and celebrities choose one of the exempt states as their primary legal domicile. Some states have no limit on the value of exempt residence!

                Business Ownership Interests and Chapter 7 Filing

                In liquidation bankruptcy cases, the net value of ownership interest (assets minus liabilities) is assessed by the court, to come up with a plan to make money available for paying the creditors. If, for example, an individual who has filed for Chapter 7 bankruptcy has a small business valued by the court or trustee at $500,000 and the filer also possess other assets worth another $500,000 which can be liquidated (cash, property, vehicle, etc.), then the total amount available to pay the creditor’s claim is a million dollars.

                This is to be considered theoretically as just evaluating a business interest won’t generate the money, a buyer willing to make the purchase is required to actually have the cash in hand to repay the creditors. Most of the time, many small businesses have no value due to the debts in books from the building and operating of the business.

                However, it may be noted, that some jurisdictions offer a bankruptcy code which allows individuals or small businesses to make a fresh start. The “fresh start exception” law may permit a business to continue operating without the burden of debt which was previously attached to the business, prior to a bankruptcy filing.


                  *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 to Recover your Finances After Bankruptcy?

                  How to Recover your Finances After Bankruptcy?

                  Bankruptcy is a hard chapter in an individual’s life, however, a very long road lies ahead after your case wraps up. Any and all financial decisions you make after the bankruptcy case is over are going to be equally important. For regaining control of your finance, it is important that you consult expert bankruptcy attorneys such as those available at Los Angeles based law firm Recovery Law Group.

                  Tips to Rebuild Credit after Bankruptcy Case

                  The most important point to take care of, once you are through with your bankruptcy case is to clear your financial dues and start fresh. It is easy to start a fresh credit score by using the following tips: (more…)