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Tag: Chapter 13 Bankruptcy

  • Bankruptcy Process – California, Nevada, and Texas

    Bankruptcy Process – California, Nevada, and Texas

    The knowledge about the execution of the bankruptcy process will be important for a debtor. From the first day of consulting with a renowned bank attorney, Los Angeles (if the debtor lives in LA regions of the California state), the bankruptcy case starts through the meticulous step-wise process. Working with Recovery Law Group will make the journey of a debtor easy and transparent – they practice in the states of California, Nevada, and Texas.

    The first step in the bankruptcy process is the stopping of any harassment by the debt collectors and in extreme conditions, a lawsuit on behalf of the debtor is filed by the bank attorney. This lawsuit is to report a violation of the debtor’s rights in accordance with the Fair Debt Collection Practices Act (FDCPA). (more…)

  • Worried About Your Debt Problems? Trust Bankruptcy Lawyers to Resolve These Issues for You

    Worried About Your Debt Problems? Trust Bankruptcy Lawyers to Resolve These Issues for You

    Many people who are trying to make their ends meet while simultaneously struggling to pay their dues are often worried about how they are going to pass this phase. Since credit ratings are of huge importance, non-payment of dues will result in bad credit ratings which will make things worse. In case you are facing wage garnishments, worried about foreclosure, repossession of your vehicle, etc., then it is time to look for bankruptcy lawyers near me. One of the best Bankruptcy Attorney Los Angeles firm, Recovery Law Group is committed to helping out families and individuals who are going through a bad financial phase and therefore struggling with debt. (more…)

  • What are the Benefits of Chapter 13 Bankruptcy?

    What are the Benefits of Chapter 13 Bankruptcy?

    A bankruptcy filing is a federal way out for people who are struggling with finances due to unforeseen circumstances. Individuals who are going through a tough financial phase can opt for filing bankruptcy under either Chapter 7 or Chapter 13. While many debts are discharged in Chapter 7, there are a number of benefits associated with Chapter 13 bankruptcy too. The latter has a court-approved repayment plan through which the bankruptcy filers are allowed to make payments to the debtors over a period of 3-5 years. The repayment plan is devised keeping in mind the debt owed to the creditors and the income of the filer. In this way, the debtors make one manageable payment every month to the bankruptcy trustee which ensures that the payment reaches the creditors. Thus there is no direct contact with creditors.

    According to Los Angeles based law firm Recovery Law Group , those individuals who are able to qualify for this Chapter, there are a number of advantage, such as:

    1. In case you have fallen behind on monthly mortgage payments, Chapter 13 bankruptcy allows you to avoid foreclosure.
    2. Non-exempt property which cannot be protected under Chapter 7 bankruptcy can be protected if you file under Chapter 13.
    3. With the repayment plan, you can catch up on car loan payments and prevent repossession of the vehicle. The car payments are reduced depending on how much the original principal amount of loan remains and the current value of the vehicle.
    4. In case you had previously (within 8 years) filed for a Chapter 7 bankruptcy, you can get protection with filing a Chapter 13 now.
    5. In case you owe taxes which cannot be discharged, they can be repaid through the Chapter 13 bankruptcy repayment plan. This way the IRS (Internal Revenue Service) cannot make collection attempts and will have to accept whatever payment amount has been agreed to upon by the bankruptcy court.
    6. A repayment plan can be devised for student loan debt under Chapter 13, which typically does not get discharged during bankruptcy.
    7. Co-signers are often at the receiving end of the creditors when you file for bankruptcy under Chapter 7. But Chapter 13 protects them.

    In case you find yourself in a financial mess, with repayment problems spiraling out of hand and creditors giving you a hard time, you should consult bankruptcy lawyers to discover your options. Find out which chapter of bankruptcy can you qualify for and which will be the best suited for your particular conditions.


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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.

    • 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…)

    • Does filing bankruptcy relieve you of debts?

      Does filing bankruptcy relieve you of debts?

      It is probably a myth that many of us have come to believe that bankruptcy relieves one of all debts. Although it may sound attractive about not being obliged about settling your creditors and make a new start with your business, there are some facts to the discharge of debts that one needs to clearly understand about – it may be a surprise that bankruptcy conditions when filed do not eliminate all debts.

      When filing for bankruptcy using Chapter 7 or Chapter 13, the U.S. Bankruptcy code doesn’t enforce you to pay certain outstanding debts. The code was primarily designed for the benefit of honest debtors who struggle with huge debt loads. It benefits them by discharging certain debts at the culmination of a bankruptcy case. Let’s understand further about discharges and what debts can be cleared and what cannot be

      • Non-Dischargeable Debts: There is a category of debts that are directly ineligible for a discharge. Payments ordered by a family court (Alimony/ Child Support), Tax Debts and Secured Debts (involving collateral) fall under this category. In most cases, student loan debts are also non-dischargeable
      • Liens: Though debts associated in a property are discharges, the liens on the property held by a creditor cannot be eliminated. This will end in a condition of repossessing the property by your creditors who have liens
      • Unsecured Debts: These are debts without collateral – commonly includes a credit card debt. In these cases, the creditor cannot take possession of the property if you fail to make any payments
      • Chapter 7 & Chapter 13 bankruptcy debts: These codes allow a discharge of certain debts at the end of the bankruptcy case but the nature of the discharge will differ depending on the code. To cite an example of Chapter 13 personal bankruptcy scenario, the individual will continue to pay the creditors for three to five years using a repayment plan. At the end of the plan, the pending debts are eligible to be discharged. On the other hand, the scenario with Chapter 7 bankruptcy eliminates larger debt loads as the people who file for bankruptcy do not make any payments – they may liquidate their assets to pay their creditors.

      At Recovery Law group, we work with individuals and companies towards the discharge of debts after a case of the bankruptcy filing. The needed guidance and assured steps towards a positive outcome in terms of debts discharge are meted out to our clientele in Dallas and Los Angeles areas.


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

        *Do you own a home?

        Are you currently working?

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

      • What are the Debt Relief Options for Small Businesses and their Owners?

        What are the Debt Relief Options for Small Businesses and their Owners?

        Starting a business in uncertain times can go anywhere. Whether you reach the zeniths of success or taste failure, it is a matter of chance. The odds are stacked against you no matter which business you wish to start. A lot of financial capital, overhead expenses, and advertising are involved to make any business a successful venture. However, sometimes, business owners might find themselves struggling with these expenses, trying to stay afloat or make a profit. In case small business owners or start-ups are facing problems in managing their finances (personal or business) they might find themselves under heavy debt. This is more often seen when the business is a sole propriety one, wherein the personal finances and assets are tied up with business ones. For such situations, Sacramento based law firm Recovery Law Group provides an insight into the debt relief options for small businesses and business owners.

        Since a lot of emphases is being given to people who wish to become independent by turning entrepreneurs, the legal system also supports them during the time of financial crisis. Business owners facing economic issues at work and under financial stress have a number of viable options to take care of financial matters. A consultation with lawyers specializing in bankruptcy can help clear the problems. It is important to seek legal assistance to sort out the financial mess so that you can improve the position of your business and continue operating it, while simultaneously improving on your personal finances.

        What are the Debt Relief options Available for Businesses?

        Just like every individual’s circumstances are different, so do the problems in businesses. Your debt relief options will depend on your unique situation. Factors influencing debt relief include – a type of business, the aim of business owners and the nature of the financial problem. The different ways in which business owners can utilize bankruptcy is elaborated below:

        Chapter 7 Bankruptcy – Small businesses especially those with single proprietorships may use this chapter of bankruptcy. The unique circumstances which prompt the usage of this chapter are when the business has no future and the owner wishes to liquidate it, without any plans of restructuring. This is usually chosen when the businesses have overwhelming debts, the business is being operated due to an extension of a particular skill set and the owner has very few or limited assets.

        Chapter 11 Bankruptcy – This option is generally chosen when business owners wish to remain in business. This chapter allows reorganization and thus creates plans for paying the creditors’ off, over a fixed time period. A drawback to choosing this chapter is that it is a complicated and lengthy process which may not always be ideal for small business owners.

        Chapter 13 Bankruptcy – The reorganization bankruptcy is generally used as a form of personal bankruptcy. This is generally ideal for small businesses, especially when companies wish to pay back a percentage of their debt. The repayment plan suggested by the bankruptcy court is followed by business owners who have invested personal funds in their business venture. This chapter of bankruptcy can, however, not be used by corporations and businesses which do not have sole proprietorships.

        If you wish to get over the financial troubles that your business is currently facing, it is important to make a consultation with specialized bankruptcy lawyers. The legal minds can help guide you through the financial problems and suggest the best legal recourse available for you.


          *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 Decide the Bankruptcy Filing Chapter?

            How to Decide the Bankruptcy Filing Chapter?

            Bankruptcy is a common occurrence with many people in America turning to it to save themselves from overwhelming debts. Despite unique financial situations, many individuals, couples or even businesses are looking for options to file for bankruptcy. However, since situations are different for each of them, they need to choose the best-suited Chapter of the U.S. Bankruptcy Code under which they can file for bankruptcy. (more…)

          • Dealing With Business Debt? Can Chapter 13 Bankruptcy Help?

            Dealing With Business Debt? Can Chapter 13 Bankruptcy Help?

            Many people wish to turn entrepreneurs and often succeed in their endeavors too. However, not every business idea takes you to the zeniths of the sky, some fight falls flat and leave you with a huge debt to clear. In case you belong to the latter category, there is no need to worry if you are looking to reorganize your debts. U.S. federal laws have come up with Bankruptcy Code to help individual and organizations to overcome their financial losses by filing for bankruptcy under various chapters. Small business owners in need of financial assistance can consider Chapter 13 bankruptcy to come up with a repayment plan based on their type of debt, income, monthly expenses, assets you need to keep your home and business in operation. (more…)

          • Bankruptcy Basis – How To Get Discharge in Bankruptcy?

            Bankruptcy Basis – How To Get Discharge in Bankruptcy?

            Bankruptcy discharge varies on the type of bankruptcy chapter the case is filed under by the debtor. Bankruptcy discharge relinquishes a debtor from any personal liability for some specified types of debts i.e. a debtor is no longer legally bound to pay any debts that are discharged by the court. Since the discharge is permanent, creditors are prohibited from taking any action (legal action or communication with the debtor, letter, phone call, personal contact, etc.) for the collection of discharged debts. Though the debtor is not to be held personally liable for any discharged debts, a valid lien (charge upon specific property to ensure payment of debt) that hasn’t been evaded will remain after the bankruptcy case. Thus, a secured creditor can enforce the lien to recover the property secured by the lien. (more…)