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What Happens to Your Car, When You File For Bankruptcy?

If you own a car through an automobile loan and are struggling to keep up with the installment dues, you might want to know what could be in a potential scenario, if you had filed for bankruptcy. In cities like Dallas, Houston, and other cities, where public transport is not exceptional and well connected, the car is more of a necessity than a luxury. Whether it be to run around the grocery errands or to manage the daily routines of work, kid’s school or any other things. People using their own car might find it extremely difficult to sustain without it even in bankruptcy. Hence, it is a pretty obvious concern to what happens to your car in bankruptcy.

Type of bankruptcy to decide

Chapter 13 and Chapter 7 are two bankruptcy category that will determine if you will be able to keep your car or not. In the case of Chapter 13 bankruptcy, the payment plan shall accommodate some payments towards the car loan since it is a secured loan, the chances of retaining the car is high. On the other hand, Chapter 7 rules need the borrower to trade in all the non-exempt assets which could well include your car.

Are there methods to keep the car when applying for Chapter 7 bankruptcy? Yes, there are, let’s learn how in the next piece.

The car worth and affordability are two important things that can decide the car fortunes for you. If you need to keep your car, you shall file a reaffirmation treaty with your car loan lender during the bankruptcy procedure. This reaffirmation treaty is basically an agreement which prevents car loan from being released or discharged. This means you shall continue making car loan installment payments whenever they are due in spite of bankruptcy. Reaffirmation could be allowed by the court if the installment due could be proved as an ‘undue burden’ in the bankruptcy court. Ultimately, all other obligations, income, and various other factors come into play. To analyze all factors and to seek professional help in this regard, log on to Recovery Law Group right now.

Car worth and Equity concepts

If the liquidation is made through Chapter 7 there is a concept of equity that comes into the picture. The difference between the purchase price of the car and the remaining principal due is regarded as equity. During the liquidation process, one can use the exemption codes available in certain states like California and try retaining their assets like a car. In California, there are two exemption codes. The first one allows for a cap of $3,050 on equity as an exemption for your vehicle while the second one caps it to $5,350. Both these elections cannot be applied simultaneously and are individual section codes or systems.

If the equity portion of your car is below the exemption codes of $5,350 or $3,050 the bankrupt trustee cannot liquidate your car for repaying debts. If you exceed the exemption amount, it is still not over. You can pay off the excess amount over the exemption to the trustee to be eligible again. The second and last option is to initiate a reaffirmation treaty which has been discussed earlier. Chapter 13 bankruptcy helps you hold on to the car until you comply with the payment plan set up by you, the court, and creditors and all other complications related to Chapter 7 bankruptcy California. For assistance from the best and experienced bankruptcy lawyers, dial in +1 888-297-6203 now!

July 17, 2019
Bankruptcy and Assistance of Attorneys
Debt is never a great idea but sometimes, it becomes inevitable. When the interest mounts up with debt, there looks to be no way forward. If we consume more debt than we can repay, it becomes a crushing situation. U.S Bankruptcy code is certainly the last hope that can save your boat from drowning. This code has been set up to protect honest and hardworking people from a vicious cycle of debt. The code sets free businesses or individuals by releasing the debt/liability after educating them and by following a legal process of settling as much debt as possible. If you are unable to determine if you should file for bankruptcy or you shouldn’t, consider visiting Recovery Law Group to clarify all your questions about bankruptcy and how to make the right decision.

Broad reasons for bankruptcy

The reasons for bankruptcy can be many. Some are forced while others are just reckless financial management and indecision. Forced reasons could include medical costs, sudden loss of a job, pay cut, divorce, business failure, etc. While the financial reckless or indecision includes spending or buying luxury items from a credit card or pay day loans. Spending excessively or availing more loans beyond the ability to sponsor the EMI with the paycheck. Unplanned retirement can also be one of the reasons where you find out your expenses are way higher than the social security benefits and savings.

Businesses have different sets of reasons. These can be classified into two types. Internal reasons could be equipment failure, change in management, poor planning/forecasting, inefficiency, lack of investment, etc. External reasons are usually uncontrollable reasons like fluctuation in the currency market, government policies, increased taxes, increase in competitors, etc.

Basics of Bankruptcy Chapters

Bankruptcy can be filed across different chapters. There are different thresholds, eligibility criterions, advantages/disadvantages of each Chapter. There is no perfect way of determining which Chapter is best as it varies on a case to case basis. For an individual Chapter 7 might be appropriate while for the other person, Chapter 13 might be a better alternative. To seek the best solution on what suits you or your business, reach out to some of the best attorneys in town at 888-297-6203 now!

• Chapter 7
Chapter 7 is a bankruptcy code which is available for qualifying individuals as well as businesses. This is also referred to as a liquidation Chapter because it is all about liquidating the assets to pay out the debts on the basis of priority. The court has exemptions and other regulations that allow it to classify exempt and nonexempt assets. The nonexempt assets are auctioned, sold, or disposed by the bankruptcy trustee on behalf of the creditor. The common misconception about Chapter 7 bankruptcy California code is that a business or the person might lose all assets when filing Chapter 7 bankruptcy. However, it isn’t true. Using various exemptions and other settlement alternatives, businesses or individuals can safeguard their non-luxury assets.

• Chapter 11
Chapter 11 is similar to Chapter 13 but is available for businesses as well. It is pre-dominantly used by corporates and businesses. But it can be used by individuals who have many complex transactions and do not qualify for Chapter 13. The fee for Chapter 11 is slightly higher and it deals with putting forward a plan to settle the debts in the near future. On the basis of the proposed plan, the debt is restructured.

• Chapter 13
Chapter 13 is a future-oriented payment plan that has certain debt type thresholds for eligibility. It is a plan that focuses on debt settlement based on the disposable income available for the filer in the future 3-5 years. This ideal for home mortgage bankruptcy filers and other filers who had like to retain most of their assets.
Still confused on what you should do, which Chapter, is bankruptcy ideal for me, if yes when now or later? These are some common questions that keep revolving in a financial crisis situation. Seek professional help and let them take over all your troubles and concerns. Dial in 888-297-6203 now for the right answer!
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July 17, 2019
What Happens to Personal Injury Award in Case of Bankruptcy?
An injury sustained due to negligence or accident can cause immense trouble for people. They are often struggling financially due to overwhelming medical debts and are often accompanied by long durations of being out of work and in severe pain. Many of such people, with the help of excellent personal injury attorneys, sue the negligent party for a personal injury award. However, if the same person is struggling financially and is contemplating filing for bankruptcy, one of the major concerns they have is; what happens to their personal injury award in such a situation? Do they get to keep the entire personal injury claim or a part of the award?

Different consumer bankruptcy types and their effect on monetary damages obtained through personal injury claims

If you are struggling with finding the best possible recourse to take care of your debts, call 888-297-6023 to ask counsel from expert bankruptcy lawyers. According to Los Angeles based bankruptcy lawyers Recovery Law Group consumers can file for bankruptcy under two chapters; Chapter 7 (liquidation bankruptcy) and Chapter 13 (wage earner’s plan). Both chapters have different requirements, procedures to deal with your debts and ways of handling personal injury claims.

Chapter 7 bankruptcy

In this case, any unsecured debts of the debtor like credit card bills, medical bills, personal loan, etc. can be discharged by the bankruptcy court; while any non-exempt assets the debtor has, are sold to pay off secured creditors. Since in this type of consumer bankruptcy, the court allows discharge of most unsecured debts, the debtor needs to claim an exemption to keep the property. The personal injury award becomes a part of the bankruptcy estate while the case is pending.

The California Code of Civil Procedure offers two basic provisions for exemption of personal injury damage. As per Section 704.140, the wide-ranging exemption is provided, showing that the personal injury award is essential for the support of the judgment debtor as well as their spouse and dependents. Section 704.150 provides an exemption in case of wrongful death claim award. Section 703.140(b)(11) on the other hand provides an exemption of wrongful death awards deemed necessary to support survivor’s dependents and personal injury award up to $24,060. Since both schemes have their own benefit, it is important for a bankruptcy filer to choose wisely (section 703 or 704).

Chapter 13 bankruptcy

In this type of bankruptcy, the court reorganizes the debt obligations of the bankruptcy filer; some debts are paid back, some are reduced in amount while some others are discharged. In this case, the debtor is paying a certain amount of the debts back as per the court-approved repayment plan. Thus, they are entitled to keep some or all payment they receive from a personal injury claim. However, the amount they can keep for themselves depends on a few issues including what is to be paid to unsecured creditors.

Many times, debtors might choose to exempt their award, depending on their situation. Since laws are often complicated, it is important to hire the best legal minds to take care of issues like bankruptcy and personal injury claims. While the expertise of a personal injury lawyer lies in trying to get the best compensation for your injuries, a bankruptcy lawyer California can help save as many of your assets as possible. It is important for a person who is undergoing both issues simultaneously, to have the best legal counsel for both matters. The bankruptcy lawyer and personal injury lawyer can work in tandem so that their client gets and retains most part of the personal injury award during their bankruptcy.
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July 17, 2019
What are the key benefits of Chapter 7 bankruptcy election?
Chapter 7 Bankruptcy California is also referred to as Straight Bankruptcy, because it is pretty straight forward, and it ends soon too. While the other alternative Chapter 13 might just keep going for months and months even after applying for bankruptcy. If you are eligible for Chapter 7, it is the best option. Why do experts say so, what are the key benefits? All these questions will be addressed below-
- Release all/most of the unsecured debts
Chapter 7 categorized the debts into two categories. This happens under the Chapter 13 code also, but the debts released is pretty less significant compared to Chapter 7. The importance of releasing unsecured debts comes to the scene when the vicious cycle of high-interest rate and ever so slowly growing income can never be bridged. Since the unsecured debts carry the highest interest rates with them, it is unlikely one will ever be able to repay the loan especially when they are considering bankruptcy. Release of such unsecured debt which may be payday loans, credit card bills, etc., give a fresh outlook and decrease debt to income ratio significantly. The credit score is impacted but at the same time, it is a notification to the lenders for a fresh start. If you need help in analyzing ways to release most unsecured debts or credit score planning, Recovery Law Group is the website you should be checking out now.
- Preventing the lender’s from taking some serious action
Filing bankruptcy can prevent lenders, creditors and other companies/individuals with dues for action against the debtor. By filing for bankruptcy under Chapter 7 in the bankruptcy court, the filer activates a shield which protects him/her from any serious action undertaken by the lenders. This phenomenon is referred to as ‘automatic stay’ in law terms. As per law, collection phone calls, collection threats, wage garnishments, asset attachment, etc., are put on hold until and unless the court has concluded. Even though the ‘automatic stay’ shield is temporary and might last until the creditors propose to the court that they try and get their dues to the earliest, it offers a considerable amount of time to make certain things in favor of yourself.
- Love your car, keep your car
Car is a necessity and not a luxury in most cities of the United States. Most of you shall agree with the fact no matter how good the public transport of the city is, surviving without a car in the United States can be extremely difficult. The biggest nightmare of Chapter 7 bankruptcy is to lose your car. However, there are several ways of securing your assets which can also be your car. The car can be relieved by you at the current market price. This can be done under the 722 Redemption rule, which is very helpful under heavily depreciating assets like an automobile. The payment for the current market value has to be outright though. This can be better understood by an example. Say Matt had bought a car for $10,000. The present market value of the car is $4,000. Matt can get rid of the $10,000 loan by paying off $4,000 to the auto loan company/person.

Additionally, there are specific lenders who offer credit under the 722 Redemption rule with the car as the security to pay cash up front if you do not have so much cash outright immediately. If you would not like to keep the car, you can surrender the same and get rid of your auto loan obligations for sure and might be some other secured/unsecured loans too.
- Managing your realty assets
Just like a car, real estate in the United States is also categorized under depreciating asset. It might be a booming investment in developing countries but after the 2008 recession and home mortgage scam, real estate in the United States is a depreciating asset. Selling homes and acquiring homes both are a tedious task. Surrendering your home in case of bankruptcy is a good option to get rid of the home mortgage. In case of surrender, it is a good option to follow-up with your lender to close the transaction and initiate a title transfer to the earliest. This is important as there might be some dues like Real Estate taxes, HOA, etc., that may need to still be borne by you even after surrender as the lender was not able to transfer the property due to various reasons. Until the foreclosure has been done and the asset has been transferred, you still remain the on-paper owner of the property and are liable for those expenses.

The above listed 4 benefits are strong benefits to consider Chapter 7 bankruptcy California. Financial mismanagement and indecision are a part of life, but it is important to capitalize from the fresh start you can avail from Chapter 7 bankruptcy. To clarify and address all your questions on the benefits and to know more about bankruptcy reach out to +1 888-297-6203 right now!
July 16, 2019
Bankruptcy Law For Fisherman and Farmers
Famers and fisherman hold an important place in the economy of the USA, still, there was no permanent law for them to declare bankruptcy. Of late, Chapter 12 is introduced for family farmers and family fisherman, who may want to seek bankruptcy law. To know about other Chapters and bankruptcy in the whole log on to Recovery Law Group.

A brief history of Chapter 12

Chapter 12 was introduced by Congress to help farmers and fisherman who were struggling with debts during the emergency in 1986. However, it was a temporary structure that became permanent only in 2005. This law is not so popular and is scarcely employed by people. The lack of popularity is both due to ignorance and rigid eligibility criteria. That’s why in comparison to Chapter 13’s 1.4 million reported cases in 2011, there is only 637 case reported for chapter 12.

What is the basic eligibility for Chapter 12 Bankruptcy?

A person-single or married; corporations or partnership’s that have stable, regular annual income are eligible for filing under Chapter 12 bankruptcy law. The debtor must satisfy the following parameters.
- The debtor must be involved in farming or fishing occupation and must obtain 50% of the gross revenue from it.
- The total debt for the farmers and fisherman must not surpass $4,153,150 and $1,924,550 limit respectively.
- The debt should be because of the farming and fishing occupation and not for personal usages, like house mortgage, etc. 50% of the loan amount must be due to the farming occupation, and in case of the fishing business, 80% of loan must be due to the fishing
In the case of corporates and partnership, the family must singularly own more than 50% of the equity or stock interests, then only its eligible to file bankruptcy under Chapter 12.

Chapter 12

The farmers or fisherman can file under chapter 12 when they are not able to pay their loans and are looking for some relief from the debt. The government appoints a bankruptcy trustee who examines the case and reports to the court. The trustee examines the documents, monitors the debtor’s business operations and investigates means and ways to strategize a plan for the repayment.

The payment process in Chapter 12 works like chapter 13. Apart from unusual circumstances, the debtor is allowed a time frame of 90 days from the day of filing to table his repayment plan. The payment plan must be completed within 3 to 5 years. Basically, the loan repayment time frame is 3 years, which can only extend to 5 years if the client is bounded to family obligations like alimony or child support.

Approval of Chapter 12 by the court

Once the petition is filed by the client for acquiring Chapter 12, the court appoints a trustee to analyze the client’s financial status. Based on the report of the trustee the court grants confirmation to the client. The confirmation verdict comes within 45 days of filing the case.

Pointers of Chapter 12 plan
1. Execution of payment plan
The client must commit all his disposable income to the trustee. The term ‘disposable income’ in Chapter 12 denotes to the balance amount achieved after deducting the revenue acquired by the client’s fishing or farming occupation, to the sum required to manage business and family expenditures. Once a sum is achieved as disposable income, the trustee employs it to disburse the loan, as per the payment plan. After extracting its fee, the trustee, distributes the remaining disposable income to the creditors.
1. Cramming down of secure loans
The debtor has some secured loans to be cleared. After filing the case under Chapter 12, the debtor can cram down his secure loans. The word ‘cram down’ means the debtor can reduce or lower his secured debt on mortgaged articles as per the market value. The debtor must only pay the market value of the collateral pledged article. Any amount excess than that is treated as unsecured loans, which under Chapter 12 the client gets the benefit of paying little or no amount against it. The debtor can take the liberty of stretching the time beyond the term plan to pay his secure loans. The interest in the secure loan is also settled as per the ongoing market rate.
1. Discharge of loans
Although the court must investigate the best interest of creditors, it cannot do much for unsecured loan creditors. The case can be treated similarly as the Chapter 7 bankruptcy case of clearing the debt by selling liquid assets. However, any loan amount above that is discharged. Hence the creditors must be satisfied with meager or no payment at all in some cases. The debtor’s unsecured loans can be discharged by the court depending upon their financial situation.

Wrapping the case

Once the judgment is passed the case remains open till the debtor completes his payment to the Chapter 12 trustee. The debtor acquires a discharge, and the case is wrapped up once all the payment procedure is complete. The discharge releases accountability of debtor towards any obligations, even those that may not be within the Chapter 12 plan. However, some obligations like alimony and child support, are non-dischargeable, which the debtor cannot steer clear of. The court can dismiss the case if it does not find strong evidence. The filer can also dismiss the case or file his case under Chapter 7 bankruptcy California. For sound advice on bankruptcy and right solutions for your circumstances contact 888-297-6203 right now.
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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.
July 16, 2019
My Cosigner Filed for Bankruptcy; Does it Impact Me?
In many different places, getting loans or line of credit is not easy. There is always a requirement of a guarantor or a cosigner. Parents, relatives, spouse, or friends could play as guarantor/cosigner. How does the bankruptcy of one cosigner impact the other person? This is what we will discuss in detail here. For best and quick solution on bankruptcy related issues, just hop to Recovery Law Group.

Cosigner and the relationship

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

Impact of bankruptcy declaration

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

How to protect your cosigner?

There are ways to protect the cosigner. The primary borrower is the primary link for the bank or any other financial institution. Hence, the cosigner would not know if any payment due has been missed or not been paid. Keeping the cosigner informed in advance can help in keeping the loan current and reducing the number of payment defaults. If you are the cosigner, it is a good practice to keep a check on the payments on every due date. Any payments missed will directly impact on the credit history, score and various other parameters for both the parties involved in the transaction.
- Reaffirmation of loan
Reaffirmation is a very difficult decision to make. This is another way of releasing your cosigner. Reaffirmation is the process of making the self completely liable for the loan. The process also will not allow you to discharge the unsecured debt even if you declare bankruptcy in the future. The bankruptcy of the primary borrower would not affect the cosigner however, default would. In the case of loan default, the cosigner will still be liable.

Chapter 13 bankruptcy declaration

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

Credit score implications

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

What happens if the scenario is reversed?

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

Cosigner and borrower relationship can be more complicated than it looks. If you are confused, need help or specialized professional assistance, reach out to (888)-297-6203 for the best solution for all your doubts and questions.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

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.
July 9, 2019
Family Member Debts and Bankruptcy
There are several reasons for taking a loan from family members. Just before bankruptcy or during bankruptcy its quite common to have some loans from relatives, parents, siblings and other family members. The debts have piled up big time and before you file for bankruptcy is there something that you can do with your family member debts? The process of bankruptcy makes you list all your creditors/lenders so that may also include your friends, family members and all lenders irrespective of the debt type. Under chapter 7, if you do not have any non-exempt assets, your lenders might not get anything. The debt hence is written off or eventually settled at a nominal payment.

The Chapter 13 payment plan will focus on prioritizing debts under the Bankruptcy code or rule. Your family members may or may not receive part or any repayment for their debts. In most situations, the unsecured credit is released as 99% of the payment plans do not cover 100% of the debts. To know more about Chapter 13 and Chapter 7 differences, check Recovery Law Group now.

Repayment of debt, problems, and concerns

The debt of family members and friends could be repaid after the bankruptcy situation also. But, the biggest hindrance to that could be potential taxes. Since, the debt is officially done, regarded as bad debt, repayment would be recorded as a gift. This could result in gift tax or some other legal reporting requirement. An individual can gift $14,000 per year an additional cover of $ 5.34 million which can be exhausted over the lifetime. One cannot simply manufacture loans from parents divert money to parents or family members. There is a need for proper documentation and paperwork before listing a person as a creditor before the bankruptcy court.

When you decide to pay off your family debts before declaring bankruptcy, you are not off the hook either. This looks like an attractive option as you might end up paying nothing to your family members and friends during the bankruptcy process. However, this not a great option either. The law and court consider all creditors equally and it focuses on treating all creditors fairly. The bankruptcy trustee tracks all your financial transactions for ‘preferential transfer period’. The preferential transfer period is a bankruptcy term which is a period of 90 days before declaring bankruptcy. The bankruptcy trustee has the right to propose a reversal of any suspicious transaction of over $600 to a particular creditor. This rule prevents a borrower to transfer the debt to one or few debtors.

Exceptions in the preferential transfer period and repayment options

There is also an ‘insider’ term in the bankruptcy procedure. The term ‘insider’ is referring to business associates, immediate family members, friends, etc. The preferential transfer period for such people is one year. The court can claw back any loan repayment of say $10,000 8 months back, that you made to your parents for the bankruptcy procedure. Repaying any creditor or a family member just before bankruptcy is not a crime or an illegal activity. However, they won’t be able to hold that money for long once the bankruptcy procedure begins. Any sort of hidden transactions that include the transfer of assets/properties is illegal and that could certainly block any sort of release of debt whatsoever.

Paying back your relatives, family members and friends can work only in the case of Chapter 7 bankruptcy procedure. The debtor in this scenario loses all his non-exempt assets. Also, the money earned after the bankruptcy process is completed under Chapter 7 is not under scanner as it is in the case of Chapter 13. So, paying off family debt after bankruptcy becomes a great option if Chapter 7 bankruptcy has been applied for. It is quite obvious to have loans from family members before declaring bankruptcy and everyone wants to payout their family first before all creditors. We can provide professional help to solve your bankruptcy woes legally. Just call +1 (888) 297 6203 to address all your questions and concerns.
*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.
July 9, 2019
Advantages of Filing Bankruptcy For Cancer and Other Medical Debts
The deadly impacts of cancer on an individual’s life are well known by everyone around the globe. In America, cancer is a widespread disease that has taken a toll on many lives. Curing cancer requires a hefty amount of money which leads people to numerous debts. Apart from routine medical aids, people often resort to various emotional and psychological assistance during their treatment which further increases the financial burden on them. This whole procedure continues for a long period of time and the health finances do not cover all these bills which mean that people take debts to fulfill their medicinal requirements.

As per the data presented by the California cancer registry, there are about 1.45 million cancer cases in California which mean approximately 20 cases per hour per day. Whereas, in Los Angeles, the number of cancer cases is about 38000 every year. All these data and studies show that every second person born in these parts of America suffers from cancer disease at some point or the other. These circumstances lead most of the families into great financial problems due to their inability to pay such huge medical bills. However, with the help of a well-learned bankruptcy attorney, you can get back to normal with least friction. For any such assistance, you can visit Recovery Law Group or call 888-297-6203.

How cancer leads to financial perils?

Cancer treatment involves medical as well as chemical treatments. When someone is diagnosed for cancer, first of all, he or she is treated through medicines that are very costly plus they are needed for a long amount of time which means that the expenses are large and steady. Apart from medicines, successive treatments involve several rounds of chemotherapy and radiotherapy which again cost a lot. Each round of these therapies costs quite much for an individual to bear. Thus, overall expenses during cancer treatment include medicines, therapies and surgeries are expensive. Apart from these costs, there are post-treatment expenses too which are again not a small amount to bear. Some of these costs are borne by the health insurance but for the rest, people have to borrow money from the lenders or the relatives which makes them indebted.

Verification of bills can help you save a bit:

It is highly recommended that you verify all your medical and treatment bills for various therapies and services before making the final payment to avoid any extra payments due to any discrepancy. You must look into the bills properly so as to check that you are being charged only for those services that you have taken and not any extra ones. All the expenses must be properly quoted on the bills. Also, consult your insurance agent to verify if they are providing the promised amount of money as per the insurance scheme or not.

What can be your options to overcome these financial perils?

The first option to balance your finances could be an extra job that can help you with your medical expenses. However, this option is very difficult for most of the people as a person who is going through cancer treatment, it is very difficult to work extra hours due to physical and mental fatigue caused by the disease and its treatment. You can also rebuild your budget so as to remove unimportant expenditures. This will help you to a certain extent.

Next option which most people prefer is borrowing money from relatives or lenders to pay for their medical expenses. However, most people resort to borrowing money from their well-wishers as for borrowing it from a lender requires them to fulfill the respective eligibility criterion to which most of the people fail.

Next option could be to reduce the size of your home to get some extra source of income. However, this option is helpful only to those people who have large home equity otherwise this would not be a good idea too. Apart from selling your housing equity, you can also rent or sell the other expensive belongings that are not of much need to you. You can consult an auction house or any consignment company for this purpose. These things might include a yard, a vehicle, etc.

Last option can be bankruptcy. This is the option to which the majority of people resort to when any of the above-mentioned options fail to fulfill their overall medical expenses. It is a wise decision to opt for bankruptcy for those who are already under debt as it provides some additional benefits to such people.

Is bankruptcy beneficial for the family?

For people who are already indebted and need more money for getting through their medical expenses for cancer treatment, it is a good option to file for bankruptcy. This will help them to reduce extra stress and hopelessness. It also assists the family of the cancer patient during the times of crisis. As per the American Institute of bankruptcy, a total of 1 million people in America file for bankruptcy per year.
Filing for bankruptcy can help in putting a pause on disturbing calls from creditors and thus relieving you from any harassment during treatments. Apart from this, it also provides a proper action plan so that you can get through your debts in a well-mannered way. This reduces the stress level of the cancer patient and their relatives who are already suffering from the mental trauma of disease and its treatment.

Working of bankruptcy explained:

If you are unaware of how bankruptcy actually works to help you with your financial crisis, then you must first understand the working of bankruptcy. Those who have a job can file for bankruptcy under chapter 13 which provides them with proper financial and budget planning. Such planning can help you in managing your expenditure in a wise manner with least useless expenses. Also, there might be chances of getting rid of some of the debts that include medical debts.
If you qualify and file for bankruptcy under chapter 7, then there are high chances that most of your debts are discharged. For proper guidance, you must consult a bankruptcy attorney who will suggest you the best option depending on your situation.
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June 29, 2019
Bankruptcy and Bitcoin
The value of Bitcoin that had been launched in 2009 by Satoshi Nakamoto, has shot up in its value over the years. Gone are the days that close to 10,000 bitcoins were needed to buy a Papa John’s pizza. It now trades at $6,500 and the price of each bitcoin increased to $20,000. Notwithstanding the changes in its trading value, The percentage of buyers or investors in bitcoin money has not declined. That is why we see many people all around the world, own bitcoins or other types of cryptocurrencies. Have you queried what happens to them or the bitcoins that they own when such folks encounter a financial crisis or when they file for bankruptcy?

Though we do not have a direct answer as to how this is managed by bankruptcy courts, The law firms have a good idea as to how cryptocurrencies are treated in bankruptcy in line with bankruptcy principles. They are assets too and forward need to be disclosed while a debtor files for bankruptcy. It is also likely that Bitcoin can be exempted by bankruptcy principles and hence the borrower may get to retain them too.

Before we delve into further details of the same, let’s first understand about Bitcoin.

Bitcoin

Bitcoin is one type of cryptocurrency that exists on a blockchain. Blockchain may be interpreted as a digital ledger that is shared between several computers. Since bitcoin exists anonymously and due to the design of the blockchain technology, It becomes difficult to steal the value of this cryptocurrency. Bitcoin is also known as a medium of exchange in digital transactions.

Bitcoin in Bankruptcy

Declaration: The foremost question of a debtor who possesses bitcoin is whether he has to list the possession while he records for bankruptcy. The answer to his question is a firm, YES and it is irrespective of whether under Chapter 7 or Chapter 13, You have to provide the court with certain information about your property and finances. Just as the other assets that are disclosed along with other financial information, Immaterial of whether there is a probability of exemption or not. Cryptocurrencies are like Bitcoin and also need to be declared.

Anonymous existence does not entitle the cryptocurrencies to remain anonymous during a bankruptcy process. The bankruptcy trustee in the case can exercise any mechanism (inclusive of reviewing tax returns, looking through financial statements and researching public records) to discover the assets of the debtor. Do not purposely neglect the possession of bitcoin or another cryptocurrency as it is a bankruptcy fraud to do so. If convicted of this fraud, The debtor can be punished up to $250,000 and held for 20 years. A debtor can also miss the discharge in the bankruptcy process.

State of bitcoin in bankruptcy: Since bitcoin is also the property, It becomes part of the bankruptcy estate when a debtor files for bankruptcy. The liquidation impacts can incorporate both excluded and non-absolved property. The Chapter of filing decides the property that can be treated as exempted or non-exempt. In Chapter 7 bankruptcy, Typically a “no-asset” bankruptcy, The debtor’s assets are exempted and they do not lose any section in this ordeal. If any non-exempt property is classified in Chapter 7, Later it is sold off to pay the unsecured debts.

Chapter 13 bankruptcy works through a repayment plan that factors in the value of the non-exempt properties of the debtor. The plan is targeted to pay back creditors in a three or five-year period.

Exemption Criteria: To further understand the exemption criteria for bitcoins that is one must know the state law and federal law exemption in the bankruptcy filing process. In states like California, There are two types of state exemptions known as 703 or 704 exemption. Bitcoin would best fit under 703 exemptions which are also the wildcard exemption and it exempts under the clause of debtor’s aggregate interest in any property. The limit is changing and depends on the other releases used in the bankruptcy.

Miscellaneous complexities

We only discussed the complexities linking to the legal status and the type of exceptions that bitcoins would best fit into. These are quiet areas that the bankruptcy courts are trying to address and have no definite rules until now. There are also many unknown complexities that can arise depending on the value of bitcoin controlled and related financial implications. A good bankruptcy lawyer from a renowned firm like Recovery Law Group would be able to guide a debtor with needed clarity. Stand out to this team in Los Angeles, California or Dallas, Texas for managing of cryptocurrencies in the bankruptcy processes.
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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.
June 14, 2019