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Tag: Chapter 13 Bankruptcy

Child support and Bankruptcy
Child support is one of the most priority or preferential payments in the eyes of law. One might be able to evade all kinds of secured/unsecured loans but getting away with child support is probably the most difficult task no matter how poor or bankrupt you may be. One more debt that comes in this category is student loans. Students could complete graduation and apply for bankruptcy then and get away with any sort of student loan on their name. This is the primary reason why Student loan has been excluded. Similarly in the case of child support, the federal government, and the law place special emphasis on the care/support of children. The court is very strict on individuals using bankruptcy as a mode to evade supporting their children. Some other debts that include criminal offenses, legal fees, drink, and drive ticket, etc., are also excluded from the bankruptcy procedure.

Bankruptcy can help you with your child support obligations

Child support is the responsibility of both parents. Child support is the financial assistance for the child until a specific age or until and unless the child becomes capable of covering his/her own needs. The parent who is not having the custody of a child usually pays for child support. On the other hand, the custodial parent has to take care of housing expenses, food/daily care, etc., for the child. The child support is usually determined by the court depending on various factors like income of the parents, specific child needs, duration of support required, etc. The payments are to be used for childcare and they can be direct in cash or cheque to the custodial parent or could be indirect in the form of purchases.

Wage garnishment rules

Wage garnishment is the process of withholding the income from the W-2 directly by the authorities in order to direct the same towards child support. The percentage of the garnishment varies based on state. As per California, the percentage could go as high as 65% under certain conditions. Under the rules, the child support has to be paid for at least 18 years and could go to 19, if the child is not married and is pursuing education. log on to https://bankruptcy.staging.recoverylawgroup.com/ to know how you can prevent wage garnishment and other consequences.

Child support scenario with Chapter 7 and Chapter 13

In the case of Chapter 7, the surrendered assets or otherwise called non-exempt assets are to be liquidated and the debts are to be settled with the proceeds. The first right on the proceeds is towards the child support and/or spousal support. Once the proceeds satisfy both of them, the remaining proceeds shall be used for repaying secured debts first and then the unsecured ones thereafter. Whatever debts are not covered in the proceeds of liquidated assets shall be forgiven or written off by the debtors. The case, however, does not hold true in the case of Chapter 13 bankruptcy. Since Chapter 13 proposes a payment plan for a period of 3-5 years. The biggest difference with respect to the ‘automatic stay’ offered under Chapter 13 and Chapter 7 is that the former offers protection in case of child support also.

Being current on child support is the basic requirement for receiving any kind of release of debt under Chapter 13. If you are behind on the child support payments, get current on it for beneficial bankruptcy settlements. No matter if you are using Chapter 7 or Chapter 13 bankruptcy, there are certain modes of making child support payments easier. Evading child support isn’t right legally as well ethically but in case you need help in making your life easier with child support call +1 (888)-297-6203 right now.
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July 6, 2019
Can You Convert Your Bankruptcy Chapter?
Filing for bankruptcy is a big decision. It is important to choose the bankruptcy chapter which can help protect most of your assets and results in the discharge of various debts. There are numerous factors involved while choosing a specific chapter to file bankruptcy. A lot of what happens to your circumstances and the time taken to discharge depends on the chapter of bankruptcy you have filed for. However, if your circumstances change, there are provisions available to switch the bankruptcy chapter. Changing bankruptcy chapter can be a complicated process. Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, therefore, advised that you consult a qualified attorney to get your bankruptcy discharged and get a fresh start.

Type of bankruptcy which can be filed in California

Chapter 7 (liquidation bankruptcy) and chapter 13 (wage earner’s plan) are the major bankruptcy types available for consumers. In the case of chapter 7, your assets will be sorted into the exempt and non-exempt property. In the state of California, two exemption systems exist which cover different amounts of properties like home, furniture, care, etc. System 1 exempts $75,000 and $175,000 of equity in the home and $3,060 in case of a vehicle; whereas according to system 2, you can avail $26,800 in home equity and $5,350 for your car. Due to the difference in exemption amount, it is best to work with a financial advisor or bankruptcy attorney to protect most of your assets.

The exempt property is safe during the bankruptcy process while any non-exempt property you have is sold off to repay your loans. In the majority of cases, bankruptcy filers are able to get most of their property exempted and therefore don’t have to surrender any. The unsecured debts (credit card, etc.) are discharged after bankruptcy. With secured debts, you have the choice of making payments to keep the assets or surrendering the assets if you cannot afford to pay the debts. To qualify for chapter 7 bankruptcy, you need to pass the complicated means test which compares your income to the average income of a family your size. In case you fail to pass the means test, chapter 13 is the bankruptcy option available for you.

In the case of chapter 13 bankruptcy, a repayment plan is devised keeping your debts, assets and average income as well as expenses. According to this plan you are expected to make monthly payments from your disposable income to your bankruptcy trustee who then distributes it amongst your creditors for a period of 3-5 years. Any unsecured debts which remain after the repayment plan are discharged. You can continue making payments for secured debts throughout and even after the repayment plan.

The automatic stay provision is available in both chapters of bankruptcy. Thanks to it, your creditors cannot contact you to demand any payments, any foreclosure or repossession actions cease and so does wage garnishment and bank account levies. Thus you get some respite from constant creditor harassment while the court goes through the bankruptcy process.

Converting a chapter 7 bankruptcy to Chapter 13

Most debtors prefer chapter 7 if they are able to qualify for it. This is so because you get to keep almost all your assets, all your unsecured debts are discharged sooner since typically this bankruptcy takes less time than chapter 13. It, therefore, is difficult to comprehend why someone would convert from chapter 7 to chapter 13.

If you wish to keep your property, you might wish to convert. Chapter 7 allows you to keep your home if you continue making regular payments on your mortgage. Any failure to do so might result in foreclosure. Any non-exempt property you have needs to be surrendered in this bankruptcy chapter. But in the case of chapter 13, you don’t have to give up any property while making mortgage payments through the repayment plan. Thus if you wish to protect all your property, chapter 13 is a better option.

Conversion of Chapter 7 bankruptcy to chapter 13 can be done once without court approval provided that it is done in good faith. If you follow the rules and do not attempt to hide property then you won’t face any problems. Since there are no court fees involved while converting from chapter 7 to chapter 13, you are not required to pay any conversion fees. Since chapter 13 involves a repayment plan, if you do not have the income to support the repayment, your conversion won’t be permitted. In this situation, you might need to file a motion in the court.

Converting a chapter 13 bankruptcy to Chapter 7

All your disposable income is used to repay your creditors in this bankruptcy chapter. Debts like a child and spousal support need to be paid in full. All of this might take a toll on you. A change in circumstances like losing a job, prolonged illness, etc. can make your repayment plan slightly difficult to manage. Converting to chapter 7 might be a good option in this case.

If you haven’t received a chapter 7 discharge within the past 8 years, you can seek to convert your bankruptcy from chapter 13 to chapter 7. If you have, bad luck! You are stuck with chapter 13. Since chapter 7 requires you qualifying the means test, you can convert your bankruptcy chapter only if you earn less than the state’s mean income. If nothing works for you, you remain stuck with chapter 13. The only recourse available is to ask for a dismissal of your case, which has serious consequences like losing the automatic stay benefit. What’s more is that if you ever file for bankruptcy again, the automatic stay benefit might not be readily available for you. You will be handling your creditors on your own without the help of any bankruptcy court. Conversion from chapter 13 to chapter 7 has a conversion fees of $25 which has to be deposited when you file for a motion in the court.

Should I convert my bankruptcy chapter?

Sometimes the court might force you to convert your bankruptcy chapter from 13 to 7. This can happen if you don’t get your payment plan approved or miss making payments on it. Any unnecessary delay in the case which can harm your creditors can also be the reason for the conversion of your bankruptcy chapter. If a discrepancy is observed in your means test and it is found that you don’t qualify for chapter 7 bankruptcy, then your bankruptcy chapter will be converted.

Since the conversion of the chapter is a complicated process involving a number of motions, forms, and schedules, it is important if the process is handled by competent bankruptcy attorneys. Discuss with your attorney whether conversion of bankruptcy chapter might be beneficial for you. You can call 888-297-6203 for a consult regarding your bankruptcy case.
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July 5, 2019
Hire Bankruptcy Lawyers to Defend You against Creditor Action
Filing for bankruptcy is one of the last resort people opt for, though it is the best legal option available to get rid of genuine monetary issues plaguing people. Many times people who have filed for bankruptcy might end up getting sued by the creditors for failure to make payments. In case, you have chosen to file without a lawyer (pro se) you might not be adequately prepared to handle such a scenario.

In a case concerning Chapter 7 bankruptcy, the debtor prior to filing for bankruptcy had opened a home equity line with a local financial institution. When the news of the filing reached the creditor, the institution filed a lawsuit against the debtor.

The financial institution (Parkway Bank & Trust) based their lawsuit on the fact that the debtor (Casali) had knowingly sought to misdirect the bank when he decided to ask for relief from the loan. As per the bank, one of the debts should be considered non-dischargeable as per U.S. code 523(a)(2)(A). According to Dallas based law firm Recovery Law Group, the code states that bankruptcy cannot provide respite to the filer from any debt (in form of finance, property, or any other service) obtained due to lies or false depiction. According to the complaint filed by Parkway Bank & Trust, Casali had not accurately provided statements of the financial situation while borrowing money from them.

Thankfully, expert bankruptcy lawyers by the defendant’s side argued that Parkway Bank & Trust could not provide relevant evidence to prove the charges against their client. Inability to prove without any doubt that Casali had knowingly and with dubious intent hidden the financial condition while obtaining the mortgage loan from Parkway Bank & Trust resulted in relief for the client. The case was reviewed by the bankruptcy court and the client got respite by having the loan discharged under Chapter 7 bankruptcy.

In case you are going through a tough phase and are looking for bankruptcy as an option to get relief from the huge debts it is important to consult an adept bankruptcy lawyer. Call at 888-297-6023 to talk to expert bankruptcy lawyers to get a better grasp on your financial and legal matters. With an experienced team by your side, any complicated legal matter can be easily resolved.
*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.
June 19, 2019
What you need to know about Chapter 7 and Chapter 13 bankruptcy
Infection, divorce, foreclosure, and process loss—nearly every person will revel in this sort of problems in some unspecified time in the future for the duration of their lifetime, or even several right away. if you’ve ever found yourself in this sort of state of affairs—or are in it now—you then realize that debt can pile up fast, fast putting a person or circle of relatives in a challenging monetary function. without a protection internet, it’d be tough for many to get a return on their ft.

Bankruptcy affords a solution by using giving people saddled with good sized debt the possibility to get out from beneath it even as treating creditors in a fair manner. once whole, a debtor (the man or woman filing for financial disaster) will frequently describe the comfort that comes with an easy financial plate as a “clean start.” They get to begin over without the looming burden of unpaid payments.

For the most element, financial disaster falls into certainly one of two kinds—liquidation or reorganization.

Chapter 7 bankruptcy – In alternate for wiping out qualifying debt, you ought to agree that the trustee can take and liquidate (promote) a number of property to pay returned debt. but, you could hold (exempt) assets included underneath nation regulation.

Chapter 13 bankruptcy. – Chapter 13 financial disaster reorganizes debt for high-profits earning people (even though it is to be had to others, too). even though you can hold all of your property, you ought to pay lenders the value of any nonexempt property as part of a three- to 5-12 months bankruptcy 13 bankruptcy price plan as well as any extra discretionary earnings (as decided via the financial disaster policies).

Chapter 7 Bankruptcy

In a bankruptcy 7 case—the type of financial disaster most often related to a sparkling begin—the debtor receives specific money owed—together with credit card balances, scientific bills, and personal loans—wiped out in a streamlined process without paying right into a month-to-month reimbursement plan.

In exchange, the debtor consents that the bankruptcy trustee—the person accountable for overseeing the case—can sell sure property, referred to as nonexempt belongings. The trustee then distributes the sales proceeds to lenders in step with a priority rating system.

A debtor doesn’t need to give up all assets, however. You’ll be able to exempt (keep) the things essential to maintain running and retaining a home, together with household fixtures, clothing and a small quantity of equity in a vehicle. Many filers can maintain all in their assets. each kingdom decides what its citizens can preserve.

A chapter 7 bankruptcy gained discharge all debt, however. some debt—known as nondischargeable debt—stays with you even after bankruptcy (and in the end, until you pay it off). Examples of nondischargeable debt include:
- home help obligations, which include infant and spousal support
- profits taxes incurred inside the closing 3 years (and once in a while older taxes, too)
- harm or wrongful demise awards stemming from working a vehicle whilst intoxicated, and
- student loan debt (unless you could display that it might be unfair to require reimbursement).
Each individual (customers) and agencies can report for bankruptcy 7 financial ruin. A bankruptcy 7 bankruptcy generally lasts 4 to six months.

Important Aspects of Chapter 7 Bankruptcy

Here are some of the key points you’ll want to remember.

Eligibility. Not anyone can record and get hold of a discharge underneath this bankruptcy. for instance, if a maximum of your debts are purchaser money owed (in place of enterprise financial ruin debt), and your disposable income is enough to fund a bankruptcy thirteen repayment plan after subtracting sure allowed fees, you may not be allowed to apply chapter 7 financial ruin. You’re additionally constrained to discharge every 8 years. For extra in this and other necessities, see chapter 7 bankruptcy — Who Can record?

Property. You’ll be able to exempt the vital property needed to work and keep a domestic inclusive of garments, some fairness in a automobile, and family furniture. Many borrowers who record for chapter 7 bankruptcy discover that all of their belongings is exempt underneath relevant country exemption laws (and on occasion federal exemption legal guidelines). To examine extra, see financial ruin Exemptions in chapter 7.

Secured debt. If you owe money on a secured debt, along with a loan or car mortgage, you’ll have a preference of permitting the creditor to repossess the property (and discharge the debt) or, in case you’re modern on your bills, keeping the belongings and persevering with to make your payments under the agreement.

Nondischargeable consumer debt. Financial disaster works well to put off many debts owed through people, consisting of credit card balances, scientific payments, and personal loans. but, some debt, consisting of home guide responsibilities and modern-day earnings tax payments, can’t be wiped out in bankruptcy. For more facts, see What financial disaster Can and cannot Do.

Nondischargeable business debt. Bankruptcy doesn’t wipe out debt owed by way of a commercial enterprise. It’s rare for a enterprise (apart from a sole proprietorship) to document for chapter 7 bankruptcy because in most cases, more green approaches to wind down the commercial enterprise exist. This chapter works properly whilst the proprietors need the bankruptcy trustee to sell and distribute assets to lenders in a transparent manner. but, there are several ways owners can locate themselves individually chargeable for the commercial enterprise debt. contact an attorney in case you’re thinking about submitting a commercial enterprise financial ruin.

Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, or “wage earner” bankruptcy, you ought to have a reliable supply of profits to pay off some portion of your debt.

Repayment. You’ll endorse a repayment plan that details how you are going to pay returned your money owed over 3 to 5 years. The minimum quantity you’ll should pay off relies upon on how much you earn, how a great deal you owe, and the cost of your nonexempt assets. See The bankruptcy thirteen reimbursement Plan for in-intensity facts.

Debt limits. You can’t have greater than $1,257,850 in secured debt and $419,275 in unsecured debt (as of April 2019).

Mortgage and car payment arrearages. Many human beings use the chapter 13 bankruptcy compensation plan to capture up on late residence and vehicle payments and keep away from repossession or foreclosure. For greater facts, go to your private home and loan in bankruptcy thirteen financial disaster and decreasing Loans and Non-Residential Mortgages in chapter 13 financial ruin.

Other Types of Reorganization Bankruptcy

Further to bankruptcy thirteen bankruptcy, there are other kinds of reorganization financial ruin: Chapter 11 and Chapter 12.

Chapter 11 bankruptcy. Chapter 11 financial ruin is generally used by financially struggling businesses to reorganize their affairs. it is also to be had to people whose debt exceeds bankruptcy 13 thresholds. in case you are considering bankruptcy 11 bankruptcy, you’ll want to talk to a attorney.

Chapter 12 bankruptcy. Chapter 12 is similar to bankruptcy 13 bankruptcy. but to be eligible for bankruptcy 12 financial disaster, as a minimum eighty% of your debts need to rise up from the operation of a family farm or fishery. in case you’re interested in this financial disaster type, you need to talk over with a lawyer.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
YesNo

By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
May 19, 2019
Effect of Individual Bankruptcy Filing For Married Couples
It isn’t uncommon that an individual encounters a bankruptcy condition. But the fact that in a marriage, when one of the individuals goes bankrupt, he/ she is wary of the situation and is perplexed as to the consequences of filing bankruptcy alone. A bank attorney will help you clarify your doubts, especially around the impact of filing bankruptcy on the other partner when one spouse want to file one.

The Bankruptcy estate – California

Being a community property state, California’s rules cover the assets that are acquired post marriage as the properties that belong to both the partners, irrespective of the title is done on one of their names. Hence whether the bankruptcy filing is done separately or jointly, the bankruptcy estate will cover all of the aforementioned community property of the married couples. Adhering to the laws of the community state of California, a lot of properties become part of the bankruptcy estate and will be subject to the norms of the bankruptcy law even if you file individually. Hence talk to an experienced bankruptcy attorney who can guide you from understanding the criteria for bankruptcy exemptions and how properties can be saved.

It is interesting to note that all separate properties belonging to your spouse (probably acquired prior to marriage) will not be a part of the bankruptcy estate. But it is imperative that those assets are mentioned in the documentation while you file for bankruptcy – the objective being that the trustee would certainly want to validate your claim that it is only an individual property and not a community property as per the state law.

Dischargeable debts – California

Filing for bankruptcy separately in California can relieve you of separate debts and you can get a discharge of the same. As a partner, you will also be free from the liability of joint debts since you have filed for bankruptcy. The laws of California community state forbid the creditors from pursuing the community property when one of the partners has filed for bankruptcy. The asset may also get discharged. But if the debtor who has originally filed for bankruptcy separates from his partner or dies, then the non-filing partner will lose this benefit in the long run. The creditors in such a scenario may be interested in the community property since the non-filing partner is now liable for the debt.

Effect of bankruptcy on the non-filing partner
- There is no effect of bankruptcy on spouse’s credit report when one files for individual bankruptcy and even if there is a community property involved.
- The income that is generated by both partners will be considered for the calculation of household income. This is the case when the eligibility is determined for Chapter 7 bankruptcy or for calculating the repayment terms for Chapter 13 bankruptcy
What is advisable in the state of California?

Considering the state of California, many assess the factors and consider the options of either filing jointly or separately for bankruptcy. Here’s a quick tip for them –
- There are a lot of exemptions as per the state law if you choose to file a joint bankruptcy. In case you are unable to exempt your assets by filing individually, then it is wise to do a joint petition. An experienced attorney will help you with the exemption options prevalent in Los Angeles, California
- Community properties are generally excluded from the reach of creditors and hence it may be sufficient if just one of considering filing for bankruptcy if there are community assets involved. By this, you may be able to keep the partner’s credit score unaffected
- Also, assess several other factors prior to making the decision on an individual or joint filing. Some of them could be below
  1. List of all separate properties that you and your spouse own
  2. The income of both the partners
  3. A credit score of the partners
  4. List of all properties that are designated as community assets
  5. An impending purchase that can get declined if one files for a bankruptcy
  6. Amount of other debts and their types (secured / unsecured)
  7. Any specific issues that a bank attorney may uncover while assessing your case
Perform a detailed analysis with some experts in this field. Recovery Law Group has a great team of attorneys who will analyze your conditions and recommend on the course of action needed in your bankruptcy situation or of your partner’s. They operate in Los Angeles, California, and Dallas, Texas.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
May 16, 2019
Dallas Debts: How can I be getting out of debt?
While you’re handling debt, it is able to feel such as you don’t have options. You’re afraid which you’re going to end up in courtroom, that can lead to bank account levies, assets seizure, and salary garnishment. happily, that’s not your simplest alternative. Debt doesn’t have to land you in the courtroom.

Work together with your creditors

Your first line of defense when coping with debt is to reach out to your lenders. ideally, you need to speak to them as quickly as you understand you’re going to miss a payment. lenders don’t want to visit courtroom, either. It’s high priced and time-ingesting and there’s no assure about the final results. It’s higher for anyone in case you retain to make bills. Your lenders will likely be willing to work with you for your debt.

A few creditors will assist you to training session a fee plan to capture up on your delinquent payments and keep making bills within the destiny. a few may additionally even be inclined to forgive some of your debt, in particular, if the debt is from a purchase cash mortgage (but, there can be tax effects if they comply with do this). they may be inclined to provide you a lower hobby rate or a grace duration of a month or in which you don’t need to make your bills, after that you could start making your ordinary bills again.

If you’re struggling to make your bills, touch your creditor and provide an explanation for your scenario. maybe you or a cherished one had an extreme illness or twist of fate. perhaps there has been a herbal catastrophe. maybe you lost your job. Be sincere and prematurely with them and ask them to try and work something out so that you don’t default at the debt.

Debt Consolidation

In case you’re suffering from high-interest debt which includes credit score card debt, you can advantage from debt consolidation. while you consolidate your debt, you borrow from a distinctive supply with a low-interest rate to repay your high-hobby loans. for instance, you can take out a low-interest home equity line of credit score and use it to repay your credit score card debt. You’ll end up paying ways much less in the long run than you would in case you endured to make your regular excessive-interest bills.

Debt consolidation isn’t for everybody. most importantly, you ought to have a dependable source of earnings to make payments on the new mortgage. in case you nevertheless won’t be able to pay off the debt after consolidation, it may now not make sense to go through the problem and cost of consolidating your debt. you furthermore might need a source of low-hobby debt. A domestic fairness loan may be an awesome alternative, however, that means you have to very own a domestic. you can also be able to take out a bank loan, but approval could be tough in case you’re already struggling with debt.

When thinking about debt consolidation services, make certain you take a look at into the groups. a few are disreputable and will collect charges handiest to depart you within the lurch. a number of the exceptional debt consolidation agencies providing their offerings in Dallas are countrywide Debt remedy, Crudest, and American Debt Enders. those companies have skilled counselors, truthful fee systems, and splendid song statistics. each debt settlement business enterprise can have special eligibility requirements regarding the sorts and quantities of your debt. take into account though, in nearly all cases, creditors participate in debt consolidation programs voluntarily. that means they do now not always must stick with it and may pull out of the agreement once they want.

Debt settlement organizations

In case you don’t have any success operating with lenders your self and debt consolidation is not an alternative, you can pick to paintings with a debt settlement corporation. Debt settlement groups negotiate with creditors to your behalf. They try and get lenders to comply with an agreement in which you’ll pay one lump sum in pride of all your debt. Debt agreement businesses normally propose you to stop making payments on your debt and rather keep the price range for the lump fee. in the event that they reach an agreement with the creditors, you’ll pay the lump sum and the remainder of your money owed will be forgiven.

Remember that lenders are not obligated to paintings with debt settlement agencies. At any point within the method, specifically, after you stop making payments altogether, your lenders may also sue you for series. Debt settlement agencies are also notorious for defrauding purchasers, gathering hefty costs and promising consequences after which failing to get them. whilst looking for a debt agreement business enterprise, look at the rate shape. a good organization will now not fee you any expenses whatsoever until you reach a settlement. meaning no charges prematurely and no monthly expenses. check the company’s credentials. search for participants of the yank truthful credit Council. study customer reviews online to peer if different humans have been glad about their offerings.

Chapter 7 Bankruptcy

The above options all consist of critical risks. lenders won’t be inclined to work out a settlement with you. Debt consolidation might not be an alternative; even if you do qualify, you may simply come to be delaying a default in place of preventing it. Debt settlement is never guaranteed and also you run the risk of being defrauded. there may be the simplest one threat-loose option that includes the entire protection of the law: financial disaster.

Clients are generally loath to remember financial ruin as a choice. authentic, it does impact your credit score rating. however, your credit score is already dropping if you’re not making full payments in your money owed. financial disaster is a way for borrowers to begin over with a smooth slate.

Whilst you record for Chapter 7 Bankruptcy, you turn over your nonexempt assets to a court docket-appointed financial ruin trustee. The trustee sells this belonging and gives the proceeds in your creditors in the price of your debt. Dallas gives exceptional sets of exemptions, each of in an effort to defend the general public of your property. In most instances, all the belongings are blanketed and the debtors lose nothing however their debt. In other words, you’ll in all likelihood maintain all of your belongings. when all the nonexempt property has been sold, the court docket discharges the rest of the unsecured debt. That debt is definitely long gone. no one can sue you for series. nobody can garnish your wages or levy your bank bills.

Bankruptcy offers the extra advantage of automated life. when you file for financial disaster, the automatic live stops all series efforts towards you. Any proceedings for collection forestall, as do repossessions and foreclosure. The court docket wants to make certain that while you document for financial disaster, all your money owed are handled via the financial ruin system, so bankruptcy trumps any out of doors efforts at series.

Chapter 13 Bankruptcy

If you have a consistent supply of income, you may be capable of file for Bankruptcy 13 financial disasters. bankruptcy 13 financial ruin cases still get the benefit of the automated live, but none of your own homes is offered. as a substitute, you work with the court docket and your creditors to create a charge plan a good way to final for three to 5 years. The court docket will don’t forget your living prices and make sure that the payment is cheap; it’s based totally on what you may pay and no longer on what you owe. on the give up of the plan, your closing debt is discharged. bankruptcy 13 offers you the time and safety of the court to seize up for your finances.

If you are capable of maintaining a bankruptcy thirteen payment plan, you’ll be required to document underneath bankruptcy 13 instead of underneath chapter 7.

What needs to You Do?

Handling debt is depressing, however, you have got alternatives. you can paintings for your debt on your very own, with the help of an enterprise, or with the help of the court. Don’t allow your debt to go to this point which you turn out to be in court.

Filing for financial disaster is a critical decision. if you’re suffering from debt, reach out to a skilled financial ruin legal professional to talk about your options and decide on a path of motion that high-quality suits your state of affairs and desires.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
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May 16, 2019
Be Relieved of Back Rents in Bankruptcy
A common scenario in the cases of individual bankruptcy filings is the surplus amount of back rents that the debtor has. It amounts to a large value that at times the debtor is on the verge of eviction by his landlord because of the past dues. Having arrears with your rent may seem a threat and the question about how easily these back rents can be discharged is a constant thought in the minds of the debtor. Do not worry! Rent arrears are also your unsecured debts, similar to your medical bills and credit card payments that can be due. Hence when filing for bankruptcy, you need to disclose the back rents just as you would do your other unsecured debts. The probability of getting these rent arrears discharged are high but there are some exceptions in that case too.

Not paying the rent will bring about eviction actions against the debtor but when he files for bankruptcy individually, he can achieve a stay on his eviction by the landlord and also stop further collection of rents. The options that the debtor has can vary if you are filing a Chapter 7 or Chapter 13 bankruptcy. So talk to a bankruptcy attorney who can guide you at the right juncture before you land yourself into a situation of eviction.

A consulting firm, such as Bankruptcy Relief Center, can co-work with the debtors to undertake the filing of bankruptcy in the situation of high rent arrears. Remember that it needs to be done before the court issues a write of eviction, else as a debtor, you may not be granted the automatic stay on the need to eviction. The court, in that case, will assume that the eviction process has been completed and hence will insist that the debtor vacate the apartment. So know the various options that are available for the debtors in both the bankruptcy chapters, Chapter 7 and Chapter 13.

Chapter 7 bankruptcy options for rent arrears

In the scenario of filing for Chapter 7 bankruptcy, the trustee usually takes control of the case at hand. They determine whether to reject the lease or assume the lease involved. In case that the trustee rejects the lease, then the landlord can proceed to evict the debtor. The trustee can also choose to assume the lease, in cases of which, the debtor gets a 30-day time period to settle his past rent dues from the date of filing bankruptcy. The payment of this past due has to be done at the court handling the eviction and then the debtor can proceed to make monthly payments henceforth. The automatic stay on the eviction will continue to remain in place till the bankruptcy is over.

Chapter 13 bankruptcy options for rent arrears

Chapter 13 bankruptcy is opted by the debtor when the income of the debtor surpasses the maximum allowable income (which is the threshold of Chapter 7 bankruptcy). Chapter 13 bankruptcy allows the debtor to reorganize his financial status using a repayment plan that spans from three to five years. Hence the rent arrears that is present in Chapter 13 bankruptcy is well within the debtor’s control. As a debtor, you are entitled to make the decision of assuming or rejecting a lease.

If you decide to keep the apartment, then the rent dues become part of your repayment plan. Remember that the current rent also needs to be paid on time since you will continue to occupy the apartment. Do not miss any of the committed payments, else the landlord will be able to petition the case of missing payments and obtain relief from the automatic stay. It can then lead to eviction of the debtor from the current home.

Now that the options are laid out clearly in front of you, choose the bankruptcy type as appropriate. A bank attorney in Los Angeles or Dallas can work with you from Bankruptcy Relief Center and guide you as needed.
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May 16, 2019
Find Out How Bankruptcy Help You Get Rid of a Personal Guarantee
Ever for the reason that 2008 housing crisis, obtaining a private loan is more complicated than it was—basically because economic institutions have tightened their lending standards. to enhance the odds of getting a mortgage, you can ask a person to be a guarantor (an person or company that pays an responsibility if the borrower fails to achieve this). Or, if you’re making use of for a commercial enterprise mortgage, you may conform to assure the mortgage with your personal property. If the non-public assure comes due, and the guarantor doesn’t have the finances to pay it off, in a few cases the assure can be worn out (discharged) in financial disaster.

What Happens When the Borrower Defaults on a Guaranteed Loan?

If you default to your loan (typically by missing a payment), the lender has the proper to invite the guarantor to soak up the bills or to repay the mortgage. At that factor, the guarantor is issue to the same collection activities you will face underneath nation law: phone calls, letter needs, lawsuits, or even garnishment and assets seizures.

Just due to the fact the bank turns to the guarantor doesn’t suggest that you may be off the hook, but. The lender can pursue you till the loan is paid in complete (or you discharge it in financial disaster). also, if the guarantor pays the debt, the guarantor also can seek repayment from you. however, filing for financial disaster will probably cut off the guarantor’s right to recover towards you, as nicely.

Who Can Be a Guarantor?

Pretty much any inclined character can agree to guarantee a mortgage was taken out through a person else. In fact, most of the time while the borrower is an individual and the money is for non-public or instructional purposes, the guarantor is a discern, any other relative, or an excellent friend.

Additionally, creditors often require a person to for my part guarantee a loan taken out with the aid of an enterprise (frequently due to the frequency in which small groups fail). The guarantor will publish to a credit score check at the least as rigorous because the borrower’s, have enough earnings and assets to pay the loan lower back if that turns into essential.

In a few institutional lending programs, like student loans and small business loans, banks and other monetary establishments make the loans, however the guarantor is the federal or country government. in case you default, the authorities enterprise pays off the bank and takes ownership of the mortgage. you will then need to cope with the authorities agency to rehabilitate the loan or to pay it off.

In spite of a government guaranty, the lender can still request which you deliver someone to offer additional surety. while the borrower is a small business, the lender will mechanically expect the owners or principals of the business to individually assure the commercial enterprise mortgage. Doing so offers the bank and the institutional guarantor added safety in the event the company falters. In reality, when the mortgage is guaranteed via the Small business management, anybody with a possession hobby of 20% or more ought to in my opinion assure the loan. In a few cases, the lender may ask spouses of guarantors to signal also to ensure that the parties maximum affected are privy to their responsibilities and of the outcomes they could face.

Effect of a Guaranty on a Loan

Obtaining a guarantor can save borrower money because banks occasionally will lessen the hobby rate on assured loans if it lowers the bank’s hazard of loss. It’s no longer continually the case, though. lenders regularly ask for guarantors when the original borrower has credit issues, which may additionally mitigate in prefer of a higher hobby rate. a few monetary institutions will let you borrow greater if you have a guarantor. For mortgages, the lender might allow you to finance ninety% of the cost of the house or make a smaller down fee.

Considerations for the Guarantor

If you’re thinking about whether or not to guarantee a mortgage, you would possibly need to reply to those questions before you sign on the dotted line:
- Is Will agreeing to be a guarantor affect my credit rating?
- If the financial institution forecloses at the borrower’s belongings, will it appear on my credit document?
- Why is the financial institution requiring a guarantor?
- Do I have the sources to pay the entire mortgage again, if essential?
- If the borrower is a great friend or relative, am I organized to go through the friction that could result if the borrower can’t make bills?
Can a Guarantor Wipe Out a Guarantee in Bankruptcy?

In many cases, yes (however no longer all—as an instance, a assure for an educational mortgage received go away until you could show undue hassle). In fact, it’s a common reason that humans report for bankruptcy.

As an example, assume which you took out a business loan to pursue your lifelong dream of opening a cupcake bakery. due to the fact, your commercial enterprise became new, the financial institution requested you to execute a personal guarantee. by means of signing the assure, you agreed to apply your non-public belongings to pay off the loan if the enterprise becomes unable to accomplish that. If the cupcake commercial enterprise dried up and the bakery closed, you’d probably be able to wipe out the assure in chapter 7 or Chapter 13 financial disasters.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
May 15, 2019
Know the Chapter 13 Payment Plan
The ‘Wage Earner Bankruptcy’ or Chapter 13 bankruptcy, is designed for those individuals who seek to repay their debts over a period of time. They have the ability to execute the repayment with a designated plan and hence seek the protection using the Chapter 13 of the U.S. Bankruptcy Code.

These individuals or debtors are
- The kind of people who are owners of properties that cannot be exempted under Chapter 7
- The ones who possess mortgage amounts, past dues or car loans and seek towards the repayment over time without being enforced to foreclose
- The type of folks who have debts from student loans which cannot be discharged using Chapter 7 bankruptcy
- The people who have the calculated sufficient disposable income, as per the bankruptcy laws, to repay their debts over a finite period of time (three or five years)
So, if the debtor complies with one of the above conditions, he needs to have a concrete payment plan that is also approved by his creditors. The major difference or benefit that a debtor may get from Chapter 13 bankruptcy as against debt consolidation is that he can get himself protected from credit harassments, late fees and continued interest on his debts. Through this protection of the U.S. Bankruptcy Code, the debtor catches up with all of his mortgages, car loans, and rental dues.

Formulating the appropriate payment plan can be done in conjunction with a bank attorney from an acclaimed law firm such as Recovery Law Group. They serve the clients with their expert team of bankruptcy attorney, Los Angeles, California and also in Dallas, Texas.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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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.
May 11, 2019
Chapter 13 Bankruptcy in California, Nevada, and Texas
High secured debts such as mortgaging of home or car payment can pose a problem around repayment for some of the citizens. Initially, the bank that has lent the money contacts the debtor regarding the payment updates after it has defaulted for a month or two – the bank resorts to persistent phone calls (low-level adverse proceedings). They can steer towards high-level adverse proceedings such as foreclosure or repossession if the debtor continues to default. The debtor in certain scenarios may just need some extra time as he can facilitate the means to pay the moneylender. Chapter 13 bankruptcy is a federally backed repayment plan that provides a maximum of five years to gather grounds and make these accounts stable.

It is important to note that the moneylenders, during the repayment period, cannot enforce the debtor or resort to any adverse actions without special permissions from the bankruptcy court. With utmost security and peace, the debtor can repay the moneylenders, sometimes sooner than the five years and restart their financial conditions afresh using the guaranteed Bankruptcy Code.

Know of your qualification for Chapter 13 bankruptcy

The prime need to opt for Chapter 13 bankruptcy is the retaining of the assets/ properties of the debtor who has altered and defaulted the payment of some of his secured debts. But it is key to note that the debtor also needs to satisfy the below conditions to be eligible for Chapter 13 bankruptcy
- Value of the secured debt cannot exceed $922, 975 for the debtors. If the secured debts are larger in value, the court sees the repayment of the same in three to five years as quite difficult. For this Chapter 7 can be a recommended option
- Value of unsecured debt should be lesser than $307, 675 and this amount is inclusive of all outstanding debts in credit cards, medical bills, and any other unsecured debts. If the load of the unsecured debt is higher, then Chapter 7 bankruptcy is recommended
- No prior discharges of bankruptcy either in Chapter 7 or Chapter 13 should have been obtained by the debtor – specifically, no Chapter 7 filing & discharge in the last four years and no Chapter 13 filing & discharge in the last two years
- Depending on the income of the debtor who satisfies the above conditions, the repayment the period can be either three or five years
Process of Chapter 13 bankruptcy

It is advised to the debtor to undertake a debt counselling course prior to the filing of bankruptcy. Lots of online or telephone courses are available for all debtors to ensure they complete this requirement – a small investment of time and money is needed for this from their side. After this course has been finished, the debtor just needs to get the right assistance to file the bankruptcy petition on his behalf. Searching for the best attorney near me would be the debtor’s search criteria.

The bank attorney that the debtor liaise with, will file the petition for Chapter 13 bankruptcy. The attorney will make a list of all assets, the debts, the statement of monthly income and expenses. The debtor can propose a repayment plan based on his monthly income and expenses information. It is important that the disposable income of the debtor is ample enough to make payments comfortably each month and meet the repayment schedule to clear away all of the arrears of the secured debts.

Trustee – Debtor meeting

Approximately after 6 weeks, there will be a meeting scheduled for the debtor with the Chapter 13 bankruptcy trustee. Validating the debtor’s identity through a driver’s license and the Social Security card information that will be furnished by the debtor, the bankruptcy trustee proceeds to verify and review all the shared documentation with regards to the Chapter 13 bankruptcy case. All recent federal and state income tax returns will be reviewed by the trustee and he/ she may also seek additional documentation to substantiate the financial status of the debtor prior to approving of the repayment plan. The bankruptcy trustee conducts this hearing on behalf of the judge.

The meeting is also an avenue for the trustee to question the debtor about his identity, the assets possessed and regarding their income. Very rarely, this meeting sees the attendance of some of the creditors who are associated with his case. The repayment plan and its concerns if any are discussed in this catch-up. The first payment towards debt consolidation is usually after 30 days of the petition filing irrespective of the repayment plan approval.

The confirmation hearing

The confirmation hearing is headed by the judge, who decides whether to approve the repayment plan. The hearing is also extended to creditors for their availability to raise any concerns or objections. The debtor may not be expected to attend this hearing.

In the wake of the plan approval, the employer of the debtor may be ordered to make the payments directly to the creditors by deducting the same from his wages. In cases of valid reasons for objecting or if the debtor is self-employed, other avenues of payment are sought and approved.

At the end of the repayment period, the outstanding unsecured debts may be discharged. The collateral consequences of the unsecured debt (tax liens if any), will remain intact until it is separately attended to for resolution.

Getting a Chapter 13 bankruptcy discharge

A debtor education class has to be completed by you if you are, the debtor awaiting a discharge order of your debts. Similar to counselling classes, these are also available as online or telephone courses. Being on spouse support, child support or other domestic support obligations also need to be certified.

Some quick pointers on the discharge of the debts in Chapter 13 bankruptcy
- On completion of the plan, most of the debts are discharged. Those that cannot be discharged include domestic support obligations like child/ spouse support, debts arising due to drunk driving, any wilful injuries that have caused severe personal injury or death, some student loans, criminal fines and restitution and debts that have arisen because of fraudulent activities
- If there are large monthly payments to creditors, the debtor may be entitled to lower the payment amount or the interest rate. Payments towards house property are an exception here – they may not undergo changes with regards to the amount but cannot be wholly modified as a loan
- In cases of back taxes, an extension for payment or repayment over a period of time is possible. This will prevent your properties from foreclosure for the sake of payments
- The payment towards unsecured creditors can be negotiated by a bank attorney, Los Angeles regions through the Recovery Law Group, to pay less than 100% of the claims. The Recovery Law Group firm also operates in Nevada and Texas states
Key benefits of the Chapter 13 bankruptcy
- Three or five years can be obtained for repayment of the claims
- Prevent interest accumulating on the unsecured debts in most of the cases
- Stop any kind of collection activities from the person who co-signed a debt for you
- Get to retain a property which otherwise would have been liquidated to pay you creditors
- End all future obligations from creditors from whom you haven’t received complete services
- Prevent all legal actions against debts that you have incurred prior to a bankruptcy filing
- The repayment plan can be customized to pay it sooner or also propose asset selling through the Chapter 13 bankruptcy plan for quicker payment of the debts
- Requesting a hardship discharge in times of adverse conditions can help mitigate the rough execution of plan during an unforeseen crisis
- Beyond a hardship discharge, if you still need relief, the plan can be dismissed or converted to a Chapter 7 bankruptcy
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

Are you currently working?
YesNo

By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
May 8, 2019