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  • What Effect Can My Bankruptcy Record Have on My Life?

    What Effect Can My Bankruptcy Record Have on My Life?

    A bankruptcy filing is a tough yet necessary decision that people struggling with huge financial debts must make. It may take time to get your debts discharged, depending on the chapter of bankruptcy you’ve filed. While it takes about 3-6 months to get a discharge in a Chapter 7 bankruptcy case, Dallas based bankruptcy law firm Recovery Law Group, informs that a Chapter 13 case continues for 3-5 years’ period before you can get a discharge on remaining unsecured nonpriority debts. However, once you have filed for bankruptcy, the case becomes public record and can be seen by anyone.

    Bankruptcy can have a detrimental effect on your credit report. In fact, a bankruptcy stays on your credit report for 10 years. While this may sound a big problem, especially for people who have just filed for bankruptcy or got their bankruptcy discharged in the recent past, there is some relief. Most sites that provide bankruptcy record information are not easily accessible and require paid subscriptions; something which general public will not be willing to do. However, people or institutes with whom you are likely to have business interactions such as bank, prospective employer, lenders, etc. might be interested in viewing your bankruptcy. Sometimes, while applying for a job or seeking a loan, there are questions which specifically ask about any previous bankruptcy. If you file for any loan or credit after bankruptcy your credit report will inform the bank or private lender about your situation. You might still be able to qualify for the loan if improve your credit rating by making regular and timely payments.

    Though you might find all this overwhelming, it is important to remember that filing for bankruptcy is important to get rid of huge amounts of debt which you have no means of paying. Additionally, you have no control and legal control over who can and will access your bankruptcy records. What you can do is ensure that you come out of bankruptcy better; by learning how to manage your finances. Eventually, within a couple of years, you might again be eligible for a house mortgage, student loan or car loan. Bankruptcy is meant to be an aid for assisting people with a fresh financial start. For more details about how filing for bankruptcy can help you get out of the difficult financial situation, contact expert bankruptcy lawyers at 888-297-6023.


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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.

    • The Bankruptcy Court and Social Media

      The Bankruptcy Court and Social Media

      Can the bankruptcy court interfere with social media space? Well, the answer is certainly yes but not if they are personal social media accounts but definitely if they are social media accounts used for business purposes. This question has popped up after a recent judgment by a Texas bankruptcy court. If any social media platform like Twitter, Instagram, Facebook, etc., are used for promoting business, they can be included in the bankruptcy estate. Not only that, but the bankruptcy court may also order the bankruptcy filer to submit the password of these social media accounts. The same level of authority is not applied for a personal social media account. However, if you are doing business promotions from your personal account and there is no separate business account, confusion begins here. Follow more such interesting and informational topics on Recovery Law Group.

      What was the case?

      In Texas, this interesting case happened wherein a firearm company owner decided to file for Chapter 11 bankruptcy. The owner, Jeremy Alcede had a gun shop. Under the reorganization scheme proposed under Chapter 11, a new boss was suggested to take over the business of the gun shop. The bankruptcy court of Texas ordered the former owner to turn over all the electronic assets of the Tactical Firearm including Twitter, Facebook and all other social media accounts with their passwords to the new owner. Jeremy, however, had other thoughts and refused to share social media account details and would have rather preferred imprisonment.

      What was the argument?

      The former owner put forward a strong argument saying, the account was personal, and he administrated over them and created them. His rants on then-president Obama and all advocates, who wanted to put down gun licensing and eradicate public selling of guns. He used the accounts for voicing the benefits of his shop and garnered a good amount of publicity through them. The court, on the other hand, argued that the social media accounts are directly involved in business promotion and had a business website linked on the bio of the site and hence, shall be regarded as a business account. Considering all these factors, it was determined that social media account directly influence the business of Tactical Firearms and hence, the password and the accounts need to be handed over to the new owners.

      If you are in a similar situation and need assistance to determine if your business account or your personal account could be in danger or not, reach out to 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.

      • Which Chapter of Bankruptcy Would Work Best for Me?

        Which Chapter of Bankruptcy Would Work Best for Me?

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

        Chapter 7 or Chapter 13?

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

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

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

        Can bankruptcy help in your financial troubles?

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

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

        Protecting your property with the bankruptcy

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

        • Chapter 7 bankruptcy

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

        • Chapter 13 bankruptcy

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

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


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

          *Do you own a home?

          Are you currently working?

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

        • What is No-Asset Chapter 7 Bankruptcy?

          What is No-Asset Chapter 7 Bankruptcy?

          While the Chapter 7 is known as the bankruptcy code which sets off debt from the liquidation of assets, it can be surprising to learn about No-Asset Chapter 7 bankruptcy. It could be even more surprising to note that most of the Chapter 7 bankruptcy California cases are No-Asset cases. The no-asset case is a scenario where, the filer does not give in any asset or cash to the bankruptcy trustee for liquidation. The filer instead keeps possession of all the assets, he/she owns. The lenders or creditors will not expect any proceeds or debt settlement, as there would not be any since, the filer has no assets to give in to the bankruptcy trustee.

          What is the core of Chapter 7 bankruptcy?

          Chapter 7 classifies all assets held into two types. One is exempt and the other one is nonexempt. The nonexempt assets are given up for liquidation and their proceeds are used to settle the debts of the lender. Exempt assets are assets which are of basic necessity and have various codes and sections wherein they shall be exempt against the Chapter 7 bankruptcy procedures. These assets need not be given up during the Chapter 7 bankruptcy course. To know if your asset is exempt or non-exempt as per your state exemptions, log on to https://bankruptcy.staging.recoverylawgroup.com/.

          How can a case turn into No-Asset case?

          If you have used all the exemptions and have all your assets in the blanket of exempt assets and none in the nonexempt category, your case becomes a no-asset case. Close to 70% Chapter 7 bankruptcy witnessed in states like California, Texas, New York, etc., see no-asset case. Once you have protected all your assets under some or the other state/federal exemption, the bankruptcy trustee cannot liquidate the same to settle the debts of the lenders. In this scenario, the court sends notice information to all the lenders associated with the filer confirming no proceeds or debt settlement from the Chapter 7 bankruptcy filing.

          The lenders or creditors would not need to file a proof of claim or record the amount owed by the filer. All the debts shall be released once the bankruptcy case has been settled by the court. However, if during the investigation, bankruptcy trustee comes across some nonexempt asset, the trustee will notify the lenders and collect documentation to allocate the hence generated proceeds towards the debt. For better understanding or help, reach out to +1 888-297-6203 now for the most professional and experienced attorneys California in town.


            *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.

          • Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

            Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

            Chapter 7 is not often recommended by experts as people tend to lose their valuable assets with this type of bankruptcy. However, there are many situations when Chapter 7 can be beneficial than Chapter 13. These benefits can be interpreted as reasons for opting for Chapter 7 over Chapter 13. To learn more about bankruptcy, Chapter 7, Chapter 13 and other Chapters log on to https://bankruptcy.staging.recoverylawgroup.com/.

            List of some benefits of Chapter 7

            • Less time-consuming- The process of applying for bankruptcy under Chapter 7 and receiving a court judgment is relatively quick. An average case could take 3-6 months from the day bankruptcy has been filed.
            • Absence of payment plans- Unlike Chapter 13, Chapter 7 does not carry most liabilities forward. This means there is no need for any payment plan in order to repay the creditors in the future.
            • A higher percentage of debts can be released- With some exception to some of the priority debts like student loans, child support, alimony, taxes, penalties, etc., most of the other debts are released when Chapter 7 bankruptcy is filed. In general Chapter 7 results in the highest percentage of debt release compared to other Chapters.
            • Protecting basic assets is a possibility- The common sentiment with respect to people filing Chapter 7 or considering Chapter 7 is that they won’t have any assets left. However, this is not true, there can be several arrangements made wherein many assets can be protected as well as some nonexempt assets also can be possessed. Under most circumstances, you can keep your basic essential assets including a home and a car.

            What type of filers should consider Chapter 7 bankruptcy?

            Chapter 7 is ideal for people with the following characteristics-

            • Own assets with a lower fair market value
            • Have a higher amount of unsecured loans like a credit card, medical bills or unsecured personal loans
            • Whose household income is less than the state median

            The matching of household income with the state median is a basic eligibility criterion. If your household income is below the state median of similar household, you qualify for Chapter 7. Else, you would have to deduct your income with some standard deductions to know your net income less standard or basic expense deduction. If your income is still above the median, you might not qualify for Chapter 7.

            Should you opt for Chapter 13?

            Chapter 13 is the straight competitor to Chapter 7. People who have high priority loans which will not get discharged while filing for Chapter 7 bankruptcy, should consider Chapter 13. People who wish to keep all their assets without much complications should also consider Chapter 13. What are some of the key disadvantages of considering Chapter 13? The list can be found below-

            1. Time-consuming – Apart from the 3-6 months of processing time in the bankruptcy court, your payment plan might last for 5 years. This means you are not left off the hook for a very long period of time compared to Chapter 7, which is almost done and dusted in max 6 months of the time
            2. Disposable Income – Often there is a misunderstanding that, the payment plan does not fluctuate with the change in disposable income. However, if the disposable income increases, the payment plan changes to accommodate more debt. To sum it up, the increase in income directly reduces the amount of debt being released.
            3. Complicated payment plan and disposable income calculation – Arriving at the disposable income and forming a payment plan for the next 3-5 years that satisfies the bankruptcy trustee, as well as the lenders, can be a laborious work.
            4. Adhering to the payment plan – Adhering to the payment plan becomes extremely important for a Chapter 13 filer, as there is a risk of losing the assets used to secure the loan such as a car or even the home to foreclosure. Apart from being current with the payment plan, the filer has to be current with all the non-releasable debt like taxes, administrative fees, child support, etc. This can be tough.
            5. History does not support the cause well – Just how past records say 85% of Chapter 7 cases are no-asset cases, the trend is not very positive for Chapter 13. As records, 63% of Chapter 13 bankruptcy filers do not successfully execute their payment plan as determined at the time of filing. This creates a greater risk of foreclosure, asset detachment and zero release of debts.

            The above were some of the negatives of Chapter 13 bankruptcy code. However, people with consistent and good income sources have managed to get better of the record presented by Chapter 13 historic filers. A lot has been discussed about disposable income. Let’s find the list of deductions allowed from your income to arrive at the disposable income-

            • Food and clothing as per the standard deduction allocated in the state
            • Housing and utilities as per the federal standard or state irrespective of actual costs
            • Transportation if the filer does not own a car or a bike or maintenance costs if the filer owns an automobile
            • Taxes
            • Involuntary deductions from salary
            • Life Insurance
            • Child support, family support, alimony, and similar court rulings
            • Healthcare cost as per the standard indicated by the state or federal standard
            • Certain education costs

            Total income less the above deductions would help you arrive at the disposable income, which will be directly in full towards the debts owed for the next 3-5 years. If you are still confused about whether to opt for Chapter 7 bankruptcy  or Chapter 13 bankruptcy, connect with us at 888-297-6203 for the best advice and experienced solutions.

             


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

              *Do you own a home?

              Are you currently working?

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

            • What Happens to Student Loan Debt in Bankruptcy?

              What Happens to Student Loan Debt in Bankruptcy?

              Student debt is one of the debts which does not get discharged during bankruptcy; neither in Chapter 7 nor in Chapter 13 unless you can prove that repaying them can cause undue hardship to you. According to Dallas based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, different tests are used by different courts to determine undue hardship. In the undue hardship test, most courts offer you to get either the entire loan discharged or nothing at all; while some courts might allow you a partial discharge of student loan. To get this loan discharged during bankruptcy, either you should have very low income, or the loan should have been from a for-profit trade school.

              The Brunner Test

              According to this test, your student loan can be discharged if you are:

              • poor enough to maintain a minimum standard of living for you and your dependents if you are made to repay the loan;
              • your financial situation is not likely to improve for a significant period (repayment);
              • you have previously made a good faith effort to repay the student loan.

              The court considers all factors before determining if repaying the student loan constitutes an undue hardship in your case. Other tests, apart from Brunner Test food include a special test, Health Education Assistance Loans (HEAL). In this case, you need to show that the repayment of the loan which was due more than seven years ago will result in an immense burden on your life. For more details on which tests are used to get student loan discharged, call 888-297-6023 to speak with expert bankruptcy lawyers.

              What is the procedure to get student loan discharged?

              Hiring an expert attorney is the primary step to get loans discharged during bankruptcy. for getting your student loan discharged, you need to file an adversary proceeding to find out if the loan can be discharged. You need to present evidence of undue hardship to get the loan discharged. You also need to show you made efforts previously to repay your student loan. Additionally, if you attended vocational school and you were deceived due to a breach of contract, fraud or unfair practices, then you won’t owe any debt.

              In most cases of student loan, the federal government is the lender. However, these days, loans are available through private institutions like banks also. To get your student loan debt discharged (whether government or private), you need to show that repayment will cause undue hardship. Apart from the Brunner test, other standardized tests are also used in Chapter 7 and Chapter 13 cases of a bankruptcy involving the discharge of student loan debt. It is therefore advisable to hire a local bankruptcy attorney who is well-versed with the court rulings in similar cases.

              In case your student loan is not discharged, the result varies in Chapter 7 and Chapter 13 bankruptcy Dallas. In the former case, if you are unable to prove undue hardship, the loan survives your bankruptcy and you still owe the money after your bankruptcy discharge. In the case of Chapter 13, if your student loan debt is not discharged, other options are available like paying a reduced amount during the Chapter repayment plan. You will, however, need to pay the entire amount which remains on the loan after your repayment plan ends.


                *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.

              • Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

                Under What Circumstances Can Debt Discharge be a Problem with Chapter 7 bankruptcy

                Debt discharge or release can be regarded as one of the major benefits of chapter 7 bankruptcy San Antonio. However, it can be so that the debt discharge might be limited, or one might not get any discharge. Why does this happen, how to avoid this? All these questions will be addressed below. Meanwhile, address all other worries or questions about bankruptcy and their chapters on https://bankruptcy.staging.recoverylawgroup.com/.

                Legal reasons for not qualifying for a discharge

                The two common legal barriers for not qualifying for a debt release can be listed as follows-

                • Error in procedure

                The bankruptcy court is a legal framework and it has a pre-defined methodology of getting things done. For instance, filing of the form, passing of motion for different scenarios and presenting the case in front of the court has a set procedure and experienced attorneys can best handle the documentation and presentation part. A small error in this process could create a legal barrier for availing debt discharge.

                • It is a non-dischargeable debt

                There are some debts which have been categorized under non-dischargeable. There are almost 19 types of debts which cannot be discharged. If your debt falls under this category, it is very unlikely to get a discharge. However, under certain circumstances, with a good attorney, you may be able to get some relief for these 19 categorized debts also.

                Debts that are normally non-dischargeable

                Under most scenarios, there is some type of debts which are not subject to discharge most often than not. The list below consists of some common non-dischargeable debts-

                • Any unscheduled debt, which the debtor fails to list in the bankruptcy petition and for which creditor does not receive a notice because of not being on the mailing list, shall not be discharged
                • Tax Debts
                • Child support and alimony
                • Fines, penalties and other directive fees to government agencies
                • Student loans
                • Drink and drive debts
                • Debts from tax benefited retirement plans
                • Debts arising from Condo or HOA fees
                • Attorney fees
                • Criminal restitution

                On what basis can the Court deny a qualifying release of debt?

                The basis for court denial for release of debt can make you more complaint and vary about the process and you can avoid such scenarios. Few of them can be listed as follows-

                • Not facilitating requested tax documents
                • Did not complete financial counseling course, which is a mandatory requirement for filing a bankruptcy court
                • Any transfer or nondisclosure of a property or an asset to manipulate the court and the creditors
                • Tampering with the book records, agreements and any other records of value
                • Any fraudulent act in relevance to the bankruptcy case
                • No or incomplete records for lost/sold/disposed assets
                • Violation of court order during the bankruptcy process
                • Have received a bankruptcy discharge in the recent years

                Debts that can be subject to a strong release objection

                These are debts that can create controversy amongst the lenders and can lead to strong objection if the filer appeals for release of such a debt. Such debts have a 50-50 chance of being released. They can be listed as follows-

                • Use of credit card for the purchase of luxury goods – In 99.9% cases, such a debt is a non-dischargeable debt and every credit card lender will surely object release or discharge of such a debt
                • Cash advances – If a bankruptcy filer has received any cash advance from a lender within 70 days of the bankruptcy filing, especially above $1,000, it can be regarded as a fraudulent transaction. Hence, the cash advance could be a non-dischargeable debt.
                • Any debt that is obtained by providing for incorrect or false documentation
                • Any debt that has been incurred due to willful damage to other’s property of causing injury to someone else is also subject to a non-discharge.

                It is still not something which straightforward to interpret as there are a lot of ifs and buts when it comes to the type of debts that can be wiped out versus debt that shall prevail even after bankruptcy. Dial in 888-297-6203 for more information and get all your questions answered from the subject matter experts.


                  *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.

                • The Means Test For Chapter 7 Bankruptcy Eligibility

                  The Means Test For Chapter 7 Bankruptcy Eligibility

                  Bankruptcy has different Chapters which can have certain benefits or disadvantages depending on the specific financial condition of an individual. The first step before deciding on filing for bankruptcy is to analyze the eligibility aspects. An individual can qualify for one or more Chapters simultaneously or there could be some adjustments made based on the suggestions of reliable attorney to qualify for beneficial bankruptcy code. Recovery Law Group can not only help you find an excellent attorney but can also guide you through with some basics of bankruptcy and its Chapters.

                  Chapter 7 ideology

                  Chapter 7 is based on the idea of releasing debts with all disposable assets. Apart from basic assets, all assets are liquidated to pay off as many dues as possible and the remainder shall be discharged or wiped out. This is usually the last resort for people when they console themselves to lose some of their assets and wipe out other debts in order to fresh start a new financial journey. However, with some exemptions and ability to safeguard some essential assets, it can be more than handy under most circumstances.

                  ‘Means’ test and Median

                  A means test is an eligibility criterion which has been put to use to make Chapter 7 accessible only to poor people. Due to misuse of Chapter 7 by average and upper-income individuals, a means test clause was introduced several years back. In order to verify eligibility with respect to the Means test, one has to calculate his/her household disposable income. This disposable income is calculated using the average income in the recent 6 months less some of the standard deductions associated with the basic necessities that have been pre-defined by the state regulations or the federal regulations. The actual expenditure is disregarded, and the state standard deductions are to be applied under most circumstances. Higher the disposable income, the lower the chances of qualifying for Chapter 7.

                  The means test is applicable for all filers except the business bankruptcy filers. The calculation for disposable income can be skipped if your income is below the state or federal median, whichever your bankruptcy court follows or approves. Only if your income is above the state median, will you need to chart out disposable income and the standard exemptions.

                  Court’s intervention

                  Under rare circumstances, even if you pass the means test, the court might switch you to Chapter 13 if your actual expenses are lower than the availed standard exemptions. Sometimes, you might not qualify for all types of exemptions and hence, the court has every right to review the exemptions or deductions claimed and make necessary adjustments if required. Different forms are available at your disposable like the Form 122A-1, For, 122A-2 and Form 122A-1 Supp for calculating your disposable income for the means test.

                  Business Chapter 7 bankruptcy

                  The biggest advantage for a business or a sole proprietor with business debt is that they do not have to go through the complicated means or median test. A business could be LLP, corporation or a partnership. For a sole proprietor, it can be tedious to acknowledge whether he is a business debtor or a consumer debtor. If the sole proprietor has debts that are predominantly of business nature say above 90%, he/she will be considered as a business debtor. On the other hand, if consumer debts are higher, the sole proprietor also might have to undergo means test and qualify similar to an individual for a Chapter 7 bankruptcy California.

                  For more insight on this and many more bankruptcy-related topics dial in the experts on 888-297-6203.


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

                    *Do you own a home?

                    Are you currently working?

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

                  • How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

                    How Much Should You Pay Your Attorney For a Chapter 7 Bankruptcy?

                    Attorney fees are one of the important considerations when filing bankruptcy because it has to be paid 100% and any type of expense during bankruptcy could be burdening. Establishing a relativeness between what you had expected from an attorney on a price bracket helps you determine and adjust your attorney needs. To learn more about bankruptcy, attorneys and law log on to Recovery Law Group.

                    How does the attorney fees vary based on location?

                    It is obvious to see a difference in pricing based on location. For instance, an attorney in California will be far more expensive than an attorney in Dallas. The cost of living and the overall expense of the city plays an important role in attorney pricing. Apart from this, there might be the availability of skilled attorneys in abundance in some areas like New York, New Jersey, for instance, however, there might be a lack of attorneys in a small town like Galveston. That too influences attorney pricing. The average range is between $1,200 to $2,500. If you are lucky you might find a decent attorney for $700 also if your case is pretty straightforward and isn’t a mind boggler. Cases that are tricky and require ways to protect your assets can increase attorney fees.

                    Bankruptcy court interference on attorney fees

                    There is a phrase called presumptively reasonable or no-look fee. Since the case is related to bankruptcy, this is a way how bankruptcy court makes sure the bankruptcy filers are not exploited with high attorney fees. It is usually not a cap or a threshold of fees, but the bankruptcy court will look into the fees charged by the attorney if it is beyond the presumptively reasonable fee to determine the reason for it. If the bankruptcy court is not satisfied with the reasoning, it can ask the attorney to refund a part of the fees to the bankruptcy trustee, who will use the same for settling the debts.

                    Such investigation or look in by the bankruptcy court is more often seen for filers filing for Chapter 13 bankruptcy. Also, the bankruptcy court can look into the fees even if it is presumptively reasonable. If the case is tricky, the attorneys can charge higher than the presumptively reasonable but will need to convince the court with regards to the same. A set procedure based on the court has to be followed to justify the high fees.

                    Low fees advertisements, trap or deal?

                    A lot of advertisements on social media as well as outside through banners and hoardings are visible for low-cost attorneys. Are these traps or an unmissable deal? Under most circumstances, these advertisements are deceptive. The advertisement may state ‘starting from’ in small letters under the low-cost banner. These attorneys usually use an a-la-carte system of service, wherein they keep increasing the amount based on requirement and it ends up higher than a normal attorney would charge. Many attorneys are seen to follow this kind of fee system especially around Los Angeles, Dallas, etc.

                    On the other side, there are a few attorneys who provide services at the price promised in the advertisement. It is about collecting reviews, feedback, and testimony from different sources before opting for one. Advertisement solely should not be a decision influencer.

                    Attorney fees do not necessarily correlate to their qualifications

                    It is a basic tendency to interpret high fees with higher experience and qualifications. It might not be the case with respect to bankruptcy attorneys. Different attorneys follow different ways of pricing. While some charge a small fee or offer a free initial consultation. Considering these attorneys to get some legal advice as well analyze the prospects of the attorney for your case can be an ideal option.

                    The other option to get hold of an excellent attorney is through referral. Based on prior experiences if you seek any referral of an attorney from your friends, family members or relatives, it can just prove a lot easier. The approach to identifying a good doctor is what you need to identify a good doctor. While one is important for health, the other one is important for wealth.

                    Roles and responsibilities of an attorney

                    A bankruptcy trustee has to follow a procedure and put forward the best solution to offer a beneficial and legally correct position for the filer. The blueprint of the attorney process could be listed as follows-

                    1. Analyze the right chapter to file – The attorney shall analyze which is the right chapter to file. He can ask the following questions to suggest the best option-
                    • Marital status and number of dependents
                    • Income and work location
                    • History of living, if you have relocated in the recent 2 years
                    • Have you filed your state and federal income taxes in the recent 4 years?
                    • Have you filed for bankruptcy in the last 8 years?
                    1. The urgency of the bankruptcy – Sometimes, time is the most vital aspect of filing bankruptcy. If your basic needs are being impacted and you need to determine the best alternative and probably file for bankruptcy right away. Below are some questions attorney may use to make or suggest a wise option-
                    • Affected by a lawsuit?
                    • Are you facing any foreclosure, especially home mortgage foreclosure?
                    • Are you seeing wage garnishment?
                    • Has any lender or creditor withdrawn any money from your account?
                    • Concerned about potential vehicle possession by the lender or any other asset which is collateral?
                    • Any other pressing issue that needs to be addressed to the earliest?
                    1. Property status – The attorney would not know if your property is at risk unless and until you disclose your fears and property details. Under Chapter 7, more often than not, most filers are able to secure most of their properties. However, if you are about to lose some of your assets, the attorney can evaluate the net benefit out of debt release and compare it with the value of property lost and then help you make a wiser decision. Some of the questions that an attorney should ask to better assist can be listed as follows-
                    • Have you been injured in an accident in the recent 2 years?
                    • The money in all of your bank accounts
                    • Any stocks held, profit sharing investments, and/or retirement balances
                    • Do you have any anticipated inheritance in the near future?
                    • The fair market value of personal property like jewelry, vehicles, real estate, sports equipment, collections, etc.
                    1. Will bankruptcy set off the debts – This is an important question an attorney has to address especially when filing for bankruptcy under Chapter 7. There can be scenarios where you might not get any debt release because all the debts are non-releasable in nature. Still, filing bankruptcy can be a masterstroke under some circumstances. The attorney can also suggest you, alternatives to Chapter 7, if it isn’t proving to be that beneficial. For addressing this question, the attorney can puzzle you with the following questions-
                    • Do you have any unsecured debts like payday loans, credit card debts?
                    • Any tax payments which are due?
                    • Alimony or child support arrears?
                    • Any student loan liabilities?
                    • Mortgage and/or vehicle loan balances

                    Challenge analysis

                    After determining the best approach, the attorney shall analyze potential challenges in attaining the goal. The bankruptcy trustee might raise several objections and might also suspect possible fraud. The attorney has to proactively prepare himself or herself and his client for the prospective problems or challenges. From the process of initiating bankruptcy, paperwork, advocating the client in the bankruptcy court, offering legal/financial advice, etc., are some basic responsibilities of an attorney. To get the assistance of some of the best attorneys in your town just dial in +1 888-297-6203.


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

                      *Do you own a home?

                      Are you currently working?

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

                    • Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

                      Do You Own a House and are Filing for Chapter 7 Bankruptcy? Here Are Your Options

                      When you file for bankruptcy to get rid of your debts, there are certain concerns regarding your assets, especially your house. According to lawyers of Dallas based bankruptcy law firm Recovery Law Group, you have the option of retaining your house, delaying foreclosure or letting the house go when you file for Chapter 7 bankruptcy. However, you can only keep your home in a liquidation bankruptcy if you are current on your mortgage payments and there isn’t significant equity in the home to pay creditors.

                      What happens to your home during bankruptcy depends a lot on various other circumstances. These are a few options:

                      1. The bankruptcy trustee can sell your home

                      Exemptions provided by state and federal government provide you certain equity to protect your primary residence as well as trailers, burial plot, etc. If there is not much equity left in the property to pay your unsecured creditors, the bankruptcy trustee won’t sell your home. In case the real estate sector has boomed, the non-exempt equity in your home might not be able to protect your house from going under the hammer.

                      Homestead exemption is used to protect a certain dollar amount (certain acres in some states) of equity in your primary residence. This amount varies from state to state and whether you are choosing state or federal set of exemptions (some states offer a choice between state and federal exemptions while others do not). An exemption cap exists in bankruptcy code which prevents debtors to switch to states which offer more homestead exemption in order to protect their assets. under this, you need to have owned the home continuously for a minimum of 40 months in a state to get entire equity amount exempted (as per the state’s rules).

                      To avail any state or federal bankruptcy homestead exemption, it is essential that you have been residing in that state for 730 days. If that is not the case, then you can apply for exemptions of the state you had been residing for a major portion of the 180 days prior to the 730-day period. To know more about exemption details, call 888-297-6023 to speak with expert bankruptcy lawyers.

                      You can keep your home if you are current on your mortgage payments when you file for bankruptcy and continue making mortgage payments during the bankruptcy process. However, for this to take place you need to be sure about the amount that your property is worth. From the fair market value of your home, you need to deduct your homestead exemption, the trustee’s commission, cost of sale, mortgage due on the property and all non-mortgage liens such as tax lien secured by the home. If the amount that remains is insignificant, then the trustee won’t sell your home. However, if the amount is substantial, then your home might be sold, and the money will be distributed among you (homestead exemption), the trustee, mortgage and lien holders, and the unsecured creditors.

                      1. You could lose your home to foreclosure

                      Alternately, even if bankruptcy trustee does not sell your home and you are behind mortgage payments, you could end up losing your home to foreclosure. Though Chapter 7 bankruptcy can provide temporary relief from foreclosure, it does not have provision to allow debtors to catch up on arrears. If you wish to protect your home, you could either:

                      • Consider Chapter 13 bankruptcy, where you could catch up on mortgage arrearage and protect your home;
                      • Negotiate with your lender to modify the loan or get it refinanced before filing for bankruptcy.


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

                        *Do you own a home?

                        Are you currently working?

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