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Tax Mistakes to Avoid While Filing for Bankruptcy
Liquidation can frankly be quite overwhelming and confusing for an average person. Filing for taxes while considering bankruptcy (either Chapter 7 or Chapter 13) is double trouble. In case you are confused regarding tax filing during the trying times of bankruptcy filing, you can call expert bankruptcy attorneys at 888-297-6023 to find out about your options.

Out of the two possible chapters under which individuals can file for bankruptcy is Chapter 7. This results in the discharge of all unsecured debts like a credit card, medical and even income tax debt in rare cases. Under Chapter 13, you are expected to make payments to the bankruptcy attorney as per the prescribed repayment plan for 3-5 years. After payment to creditors like income tax agencies and IRS, etc. the remaining unsecured debts are discharged post the repayment plan.

Thus, filing for income tax is extremely important as per Dallas bankruptcy lawyers Recovery Law Group . As per U.S. Bankruptcy Code, before the commencement of bankruptcy case, the debtor’s recent tax returns are required. In fact, the returns for the past 4 years can also be required. The timing for filing bankruptcy needs to be perfect if you wish to make things easier for you.

However, there are certain tax mistakes you should steer clear of if you are considering filing for bankruptcy.
1. Take care of any refund
Refund on taxes that you have received prior to filing for bankruptcy, might be seized by the government. In case you might be on the verge of getting a refund, protecting it through bankruptcy is the best option. Certain expenses like spousal or child payments, health care, etc. are essential debts and can be taken care of by the refund you have received. Consulting with an attorney can clear things up.
1. Transferring your money to protect it is a no-no
Under federal law, non-disclosing of monetary assets during bankruptcy is a violation and is considered perjury. If you are looking to avoid prison, don’t try to hide property in someone else’s name. An experienced bankruptcy attorney can help you with ways to protect your saved money during bankruptcy, without breaking any laws. Disclosing your assets to your attorney can easily help save them legally.

Unlike popular perception that property not under your name cannot be touched by the court, bankruptcy has a weird way of handling things. Any assets transferred to family or friends prior to bankruptcy filing are seen as ways to protect them. This often causes the court to take harsh steps which include voiding the transfer to have the property back in your name or worse, dismissing of your bankruptcy case. In the case of latter happening, you will be required to refile the case which will result in additional fees and letting go of the automatic stay benefit.
1. Delay paying back relatives
During bad times, family and friends are often there to lend a helping hand. Often people feel obliged to repay them as soon as possible. However, if you are considering filing for bankruptcy, paying your relatives back might not be the brightest idea. Any payment made from tax refund will appear as one favoring a particular creditor over others. This may result in the bankruptcy trustee taking back the payment made to the relatives. If you wish to make any such payments, consult a bankruptcy attorney before going ahead with it.

Family and friends are considered “insiders” and any payments made to them 1 year prior to filing for bankruptcy are considered preferential. An amount larger than $600 made to any relative within 1 year prior of bankruptcy filing will become a part of your bankruptcy estate. Any payment made to any creditor of over $600 in the preferential transfer period (1 year for family and relatives and 90 days for non-family creditors) needs to be disclosed.
1. Do not make payments above $600 to unsecured creditors
Any payments made within 90 days prior to bankruptcy filing need to be disclosed, especially if they are above $600. The bankruptcy trustee is bound to go through the records to see what payments were made. In case you wish to pay off some debts, prioritization is extremely important. Secured debts like mortgage payments or car payments, etc. should be your priority. Most unsecured debts like credit card and medical debts, etc. are discharged after bankruptcy. It should, therefore, be kept in mind that you shouldn’t pay off secured debts through unsecured debts like a credit card. Before making payments to any creditor, discuss with your attorney to understand the ramifications of your actions.
1. Avoid buying luxury goods
Since your spending habits will be studied extensively by the bankruptcy trustee, it makes sense to avoid overspending on unnecessary items like luxury goods, etc. when you are considering bankruptcy as a way out of the financial mess. These purchases and foreign holidays are things which will work against you during the bankruptcy process.

Holding on to tax refunds during bankruptcy is the best option. Having an experienced bankruptcy attorney by your side can work wonders for you. You can use the tax refund to pay the bankruptcy fees so that you get some respite from adverse creditor actions.
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June 29, 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
How is Post-Bankruptcy Life in LA- Know The Benefits of Filing For Bankruptcy
After being in debt for a certain period of time, it is wise to file for bankruptcy. However, filing for bankruptcy for the first time can be quite an inquisitive task. You might face numerous questions and doubts about how your life will transform after bankruptcy. A good and experienced Attorney firm, Recovery Law Group can come to your rescue in such a case.

In cities like Los Angeles and Dallas, TX it is quite common for people to be indebted owing to their lifestyle and standards that eventually lead them to bankruptcy. However, it is an astonishing reality that life after bankruptcy can be amazing too. This is so because your bankrupt life span might just contract to 3 – 5 months if you file for chapter 7 or for 3- 4 years if the filing of chapter 13 is done. And to get your bankruptcy discharged in short span of time, all you need to do is to get a well-qualified bankruptcy attorney. Not doing so might raise the chances of non-discharge of your debts, which will be a bad circumstance.

Here is a list of few benefits of filing for bankruptcy that you need to know:
1. There will be no more credit card and medicinal debts
In major parts of America, medical bills and credit card expenses count for the maximum debts which eventually make them bankrupt. However, qualifying for and filing bankruptcy in chapter 7 can solve this issue. Chapter 7 which is the liquidation bankruptcy sets you free from several debts including credit card and medicinal debts. This law, however, does not gives relief to ones indebted by loans like student loans, taxation debts, etc.
1. It protects your house from foreclosure
It is usually advised not to pay your off secured debt like debt for your home with unsecured debt like your credit card. Even the converse of it is a straight no. This is so because it can result in a huge mistake as a homestead is generally considered as an exempted property under chapter 7 bankruptcy as per the equity. Also, under the liquidation bankruptcy, only the unsecured debts are discharged and hence refinancing your home might lead to foreclosure. Filing for bankruptcy can, however, get you an automatic stay which prevents situations like foreclosure and lawsuits, etc.
1. You will not need to touch your retirement funds for paying the debts
The liquidation bankruptcy of chapter 7 saves your retirement funds and other social security benefits from the bankruptcy estate. Moreover, if you are a senior citizen, you might also get guidance over estate planning and might also get judgment proof. This means that apart from discharging the unsecured debts, you are also entitled to forward your hard earned money and property to your family and friends. Even if you are of middle age you must not touch your retirement estate to pay debts as these funds are protected under chapter 7 bankruptcy.
1. Be cautious before paying back to your relatives
It is highly recommended to pay back the debt to your relatives and family members only after your bankruptcy is dissolved. This is so because if you pay back that debt before the end of the bankruptcy, your pay back money is entitled to be plopped back into your bankruptcy account. However, if the case is urgent, you must take advice from your bankruptcy attorney about this. Also if someone is seeking divorce during the bankruptcy period, it might be beneficial for him/her because this might help them in resolving property divide in a much easier and smooth way. However, again it is recommended that you consult a wise and well-learned bankruptcy attorney over such matters and then proceed.
1. A new chance to amend your credit and the budget
One of the best benefits that you get after filing for bankruptcy is that your budget starts to mend in a beneficial direction. Also after a time period of about 7 years, the negative value of the credit stops showing up but the credit report might show the bankruptcy status for about 10 years from the date of filing. This time span is just about 3-4 years in cities like California.

One thing that you should keep in mind is that your planning of budget includes all the living expenses from the biggest to the minutest. You must ensure that you make all the bill payments and also save a part of your earnings for the situation of crisis. You must keep a check on your credit card reports from time to time. For this, you can also sign up for apps like credit karma, mint, etc that will help you in this work of monitoring your credit score. Such apps also provide suggestions about the most beneficial deals for you considering your current bank account status and credit score. You may also consult the Recovery law group for advice on 888-297-6203.
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
June 28, 2019
How to Get Mortgage Post-Bankruptcy? – Read This Guide
Many people think that life after bankruptcy is like living in hell. However, this is just a myth. If you act wisely and take the right decisions, your life after bankruptcy can be quite smooth and back on track. You can also get a mortgage to build your own house but it takes about 2- 3 years for this to happen. Since the present day price of houses is quite huge, hence it is very obvious for the lenders to be much more cautious before lending. Thus, to get a mortgage post-bankruptcy needs proper guidance and planning. This article aims at giving you a brief description on how to get a mortgage after coming out of bankruptcy phase and the impact this phase has on your credit status. For a detailed expert guidance and assistance, you can also visit Recovery Law Group or give a call at 888-297-6203.

What is the impact of bankruptcy on credit score and mortgage lending?

The first thing that you need to consider before going to buy a new house is the status of your credit. The most commonly adopted credit score by money lenders is the FICO score. Different lenders follow different requirements and credit score based criterion. Generally, any person who has a credit score of 650 or above is eligible to get a mortgage and for those having a credit score below 650, it might be a tedious task to get a mortgage after bankruptcy. Moreover, if you are one of those who want a mortgage with a better price, then you must maintain a credit score of 700 and above.

If you do not want to face the tedious requirements of the money lenders, you can opt for FHA (Federal Housing Administration) loans as they offer a down payment option of 3.5% at a credit score of 580 and another down payment option of 20% at a credit score of 540.

It is vital to note that if your bankruptcy is filed under chapter 13 then it will show up on the credit report until next 10 years but if you filed it under chapter 7 then it gets off just after your filing.

Various factors considered by the lender before giving mortgage:

Most of the money lenders follow the FICO formula that considers the below-mentioned factors with decreasing priority order:
1. Your payment history depicts your ability to pay on time or not. It accounts for about 35% of the total FICO score.
2. The number and amount of credit you owe to every line of credit holds about 30% of the total FICO score.
3. The number of your recently started credit accounts.
4. The various types of credits that you are presently using which may include credit cards, installment loans, etc.
Apart from the above-mentioned factors that are considered for calculation of the FICO score, there are various other factors also that a money lender takes into consideration before making up his mind to give you a mortgage. Some of the most common factors are enlisted below:
1. History of any bounced checks
2. The balance of your bank accounts
3. The kind of job (a stable job is more preferred)
4. Whether you have any retirement plans or not?
5. The debt to income ratio must be good
The time period required before applying for a mortgage?

Generally, one has to wait for about 2 years post bankruptcy for applying to get a mortgage. For people who file their bankruptcy under chapter 7 are provided insured mortgages by FHA after 2 years of discharge of their bankruptcy. You can also get a mortgage even before the term of 2 years; however, the interest rates will be larger. Hence it is advisable to wait for at least 2 years duration to get a mortgage at pocket-friendly interest.

How to get better credit scores:

Following are the ways by which you can get improved credit scores. These methods are applicable whether or not the bankruptcy shows up on your credit report.
1. Get a credit card that is secured- this is a counter-intuitive way of improving your credit score. You can take loans and credits from the bank and then repay them in the specified time limit. Doing this will improve your FHA score and liability. It will take some efforts to get a secured credit card post-bankruptcy, but you must not give up easily. However, do not apply for too many of them as doing will increase the financial burden on you.
2. Try to take up a loan that needs repayments in installments- there are various loans like the car loans and student loans which require the debtor to pay on a monthly basis in the form of installments. Such loans are termed as installment loans. You can take such a loan and then make timely payments to improve your credit score.
3. Rebuilding the credit report- three of the major credit agencies whose report you must check are Trans Union, Equifax, and It is a very important step after the bankruptcy is discharged so as to rectify if any paid debts are stilling being shown on your credit report. In case of any discrepancy, consult the respective agency and get your credit report correct and updated.
4. Using rent for payments- using the rent for making payments can be a smart way of getting out of your debts. You must get these rent payments included in your credit report to increase your credit score. For this, you can either contact your property manager if he/ she is cooperative or else you can contact the agencies that report credit to supply your rent payment details to the credit score issuing agencies.
Lastly, you must have a logical and realistic plan before applying for a mortgage. This is important to avoid any further problems after the discharge of the bankruptcy. For proper planning, you can consult a good bankruptcy attorney who can sort out things for you.
*Are you more than 60 days past due on your mortgage?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
June 28, 2019
Know These Things Before Hiring a Bankruptcy Attorney
Are you in debt and need immediate help for getting rid of the circumstances? Well, there are many ways out of which the wisest and easiest one is to file for bankruptcy. This method will help you to get a large part of your debts sorted and can also help you to get back on track to a normal life. However, you alone cannot file bankruptcy as one needs to know every minute detail of bankruptcy-related laws and rules while filing for bankruptcy. This is so because a plan that worked for someone need not necessarily work in your situation too. Hence here comes the role of a good bankruptcy attorney. Thus it is always recommended to consult a well-learned bankruptcy attorney before filing for bankruptcy as doing so will reduce down your efforts and also help you in getting through this complicated process with minimum friction. If you are also looking for any such guidance you can visit the website Recovery Law Group or call 888-297-6203 to get the best attorney in Los Angeles. However, there are certain things that you must know before going to a bankruptcy attorney and these things are enlisted below:
1. A bankruptcy attorney would not persuade you to file for bankruptcy
A well-practiced attorney knows when to suggest its client to file for bankruptcy and when not depending on his or her financial status. He or she will also be able to guide you on whether you should file bankruptcy under chapter 7 or chapter 13 based on your details and eligibility. Moreover, if not filing bankruptcy, he/ she can also suggest the best alternative options available for you to get rid of your indebted situation.
1. The attorney will guide you on which chapter you must choose for filing bankruptcy
As you might know, that there are majorly two chapters for filing bankruptcy namely chapter 7 (called liquidation bankruptcy) and chapter 13 (gives repayment plans). On one side the chapter 7 sweeps away most of your debts but involves a rigorous eligibility criterion, whereas the chapter 13 on the other side provides you the best possible plan to repay your debts in the next few years. If you feel like filing for bankruptcy is the best option for you but confused about the chapter, then you must consult a bankruptcy attorney who has a sound knowledge related to it. This will prevent you from making the wrong decision.
1. The bankruptcy will tell you the most appropriate time to proceed
Many people are unaware of the fact that the time of filing for bankruptcy can also impact your financial peril. This is why it is always better to hire a bankruptcy attorney who can guide you as to when will be the most suitable time for you to file bankruptcy. He/ she will guide you about what will be the perfect time to pay back your personal debts and for tax filings.
1. A bankruptcy attorney makes suggestions only after hearing your entire case
A bankruptcy attorney firstly listens to the entire status of the debts and account balances of its clients. This is an important part of the process so that the best option for you can be drawn by the attorney which will fetch maximum benefits to you. This can help you get rid of various loans and debts in the upcoming future.
1. the fees of the attorney depend on his/ her experience
Generally, an indebted person will try to hire the bankruptcy attorney who works for minimum fees. This choice based on minimum fees is quite obvious for anyone going through bad financial conditions. However, it is advised not to choose compulsively in such cases as its result will decide your future financial situation. Hence it is always recommended to hire a good attorney instead of a cheap one as he can assist you by providing the best options and thus help you to get rid of your debts in a shortest possible span of time.

What are your duties as a debtor towards your bankruptcy attorney?

Here is a list of few things you must do being a debtor to extract the best outcome for your situation:
1. Be inquisitive and ask questions- once you hire an attorney, you must ask him about everything related to your case and how his experience can be of use to you. You must learn as much as possible from him related to bankruptcy and the procedures required for filing it.
2. Be clear about the attorney’s fee beforehand- next, you must make sure that the attorney you are going to hire is worth the fees you are going to pay to him. Apart from his regular fees, you must also know what will he/ she cost for handling any expected unwanted situation that arises in your case in the future.
3. Openly tell the attorney about your present condition and the history of your case- it must be clear to you that you should not have any resentment while sharing your present financial status with your bankruptcy attorney. It is quite important to be crystal clear about each and every minute detail of your case and keep all the information related to it in front of the attorney as it is. This will reduce any kind of complications in your case and help you to get the best way of getting rid of your debts in the shortest possible time.
4. You must have all the documents– it is always needed to support your quoted facts with valid documents. This gives reliability and authenticity to your case and helps your attorney to work out your case in the most efficient and effective way possible.
5. Maintain a good relationship with your attorney- although it is obvious for an indebted person to act hyper at times of extensive questioning you must understand that it is in your favor only. Hence you must patiently cooperate with your attorney and give an answer to each of the questions that will help him to evaluate your case more properly.
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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 27, 2019
What is Corporate Bankruptcy?
The Security and Exchange Commission may emphasize a lot about the principles of Corporate Bankruptcy for the benefit of the people in the states of California and Texas. A company or firm will be out of business completely if it files for Chapter 7 bankruptcy. In this scenario, the investors of this company will also lose their money. The only parties who can get some value could be the people who hold bonds with such companies. But it solely depends on the priority of the corporate companies’ debts and the value of assets that is available for the purpose of liquidation.

How a company faces the situation of bankruptcy?

When the company falls into a condition where it is unable to repay its debts, then it files for Chapter 7 bankruptcy. In this condition, the business enters into the condition of liquidating all of its assets in order to pay back the company’s creditors. This action is carried out under the supervision of a bankruptcy trustee who is appointed by the federal court. The cash that is obtained from the liquidating of asset is used to pay the administrative fees and the legal fees in addition to paying the corporation’s creditors. The collateral held by secured creditors are returned to the corporation else, they get grouped along with other unsecured creditors. The amount generated is shared amongst this group.

If the filing is of Chapter 7 type, the stockholders of the corporation rarely get notified about the bankruptcy filing. This is because the creditors claim in full whatever is their due and there could be nothing left to be divided by the stockholders.

Recommended Chapter for Corporate Bankruptcy

Businesses are often looking for options to reorganize their debts and also find themselves in a better financial position of profitability whilst they face a bankruptcy situation. For such corporations, Chapter 11 is recommended. In this type, though the court holds control of major executive decisions for the corporation that has filed bankruptcy, the management of the company will still be able to run their daily business as normal.

Contacting a legal counsel is the recommended way for businessmen tackling similar scenarios as discussed above. Recovery Law Group, operating in Dallas, Texas and Los Angeles, California, will assist you to explore the viable options in your crisis situations. They work towards the appropriate recommendation for your business and will execute them according to your long term objectives. Call Recovery Law Group at 888-297-6203 to know more about their services!
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.
June 23, 2019
Will Filing for Bankruptcy Get Rid of Your Medical Debt?
Medical debt is one of the most common debt which the American citizens face today. In fact, you will be surprised to know that approximately 72 million Americans are struggling to pay off their medical debt. This actually means, more than 40% of the working citizens are struggling with medical debts today! Of course, there are multiple reasons why people fall in a debt, but surprisingly, medical debts is one of the most common one so far. In fact, as per the statistics and reports, the millennials are the one who are falling under the medical debt faster as compared to the other generations.

You would know the situation better if you are undergoing the same situation as well. The stress level is quite high and you can think about nothing other than getting relieved from your debt. Each money spend towards buying the medicine ends up increasing your debt. Ultimately, you end up paying only the medical debt interest and not the actual sum of money that you owe.

So, what do you think you should do in this situation? Should you go for Chapter 7 Bankruptcy? Probably yes, because, filing for Chapter 7 bankruptcy will help you get rid of all the unsecured debts which also includes your medical bills. Also, as there is no limit mentioned for unsecured debts under Chapter 7, it may also be possible that the entire medical debt which is bothering you, will be eliminated in one go.

As scary as it may be, filing for bankruptcy would always be the better option from spending your entire life in debt. In fact, filing for bankruptcy under chapter 7, gives you major chance that you may get freed from your otherwise never ending debt. Also, if you opt for filing for bankruptcy, there are higher chances that your life will be better along with multiple options that you will get to improve your financial stability along with the future planning.

Should you use bankruptcy to be rid of medical debt?

We, at Recovery Law Group, Dallas, will help analyze your cause of worry in detail before rendering any solution. We will help and explain you all the benefits related to filing for bankruptcy under chapter 7 for medical debts and implement all the best legal tools to help you come out of the current situation. At Recovery law group, you will find experience attorneys who have previously dealt with similar cases handling your case. Not only will they give you the best way forward but also guide you with any other alterative available in your case. For further clarification on your case, you can contact the firm at 888-297-6203.
*Are you more than 60 days past due on your mortgage?
YesNo

*Do you own a home?
YesNo

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June 23, 2019
What Effect does California State Court Judgement have on a Debt during Bankruptcy Discharge?
Bankruptcy is one of the preferred ways to get your spiraling debts discharged so that you get a clean slate to start your life afresh. Though usually court rulings or judgment are not enough on their own to make a debt not dischargeable, yet sometimes they may make it difficult or impossible in rare cases too. Though a majority of the debts accumulated by a person get discharged during bankruptcy, it is important to note that certain debts cannot be legally written off. Those debts which cannot be discharged are categorized as:
1. Non-Dischargeable- The creditor doesn’t object to the discharge of these debts. Some examples of these debts include spousal and child support, income tax, criminal fines, and
2. This category includes debts that are potentially non-dischargeable since the creditor can object to their discharge. Timely objection by the creditor can result in non-discharging of the debts. To interrupt the discharging of these debts, you need to file charges for bad behavior against the debtor. Few examples of such debts include those due to misrepresentation or fraud (bounced cheques) or causing willful injury to a person or property (physical assault)
How to lay the foundation for non-discharge of debts in bankruptcy?

It is extremely important for a creditor to prove all required allegations for the establishment of bad behavior to get not dischargeable debts. According to Section 523(a)(2) of Bankruptcy Code, Los Angeles bankruptcy lawyers Recovery Law Group suggests, to prove that a particular debt was obtained by fraud – a creditor needs to attest that the debtor made a demonstration which he/she knew to be false at that particular time; that such demonstration was made with a malicious intent (of deceiving the creditor) and the creditor fell prey to the said demonstration and incurred heavy damage due to the same.

All of these points need to be proved during the trial in bankruptcy court. However, if the same was previously done in a state court lawsuit, with a judgment obtained against the debtor, the job will be very easy for the creditor. If a state court judgment is entered against the debtor, the chances of getting the debt discharge may diminish.

Can debts be discharged even after unfavorable judgment?

Just because a debt has turned into a judgment is no way to guarantee whether they will be discharged or not. If a particular debt can be discharged before the entry of judgment, then it can be done after judgment too. Bankruptcy discharge can be effectively used to not just wipe out the debt but also the judgment. Sometimes a judgment can turn into a lien on your real estate and other properties. When the creditor registers a lien against your home or other property, options are available to get rid of the lien. However, if a judgment has changed into a judgment lien attached to your property, things can get a bit tricky.

As per Section 524 of Bankruptcy Code, if a creditor does not wish the debtor’s debts to be discharged or the judgment voided, they should timely object to discharging of debts. To object to the debts, the creditor must have timely information of the filing of the bankruptcy case by the debtor and file his concerns within the specific short timeframe. Consult with expert bankruptcy attorneys at 888-297-6023 to send appropriate notice to the creditors and find out the timeframe of creditors deadline in your particular case.

In case the creditor objects to the debt discharge within the stipulated time frame, the language of the judgment plays an important role. The judgment can simply state the amount of money owed in debt by the debtor or the judgment might specify any fraud, misrepresentation or any wilful and malicious injury actions of the debtor which caused him/ her to incur the debts and subsequent judgment.

What effect can the language of judgment have?

Words and language can make a huge difference, especially in legal documents. State court judgment’s specific language is extremely important as the bankruptcy court uses this to decide the bankruptcy discharge. If the language specifies only the fact that debtor owes money to creditors, the debt has a chance of getting discharged during bankruptcy. If however, any fraudulent activity or any type of bad behavior is specified in the state court judgment, this fact is taken into consideration by the bankruptcy court to decide their verdict.

Res judicata or collateral estoppel is an important and an ancient principle through which courts take each other’s decision into account while giving the verdict. In case one court has reached a verdict, it is accepted by another court, provided a specific number of conditions are met.

The factor that keeps this time-honored law principle in place is:
- It protects petitioners from any harassment due to similar repeated litigations.
- It helps avoid any varying judgments of the same problem with different solutions, as this can imbibe low esteem for the legal system.
- It also saves time by avoiding repetitive lawsuits.
- A lot of time as well as resources, both of the court and the filing parties, are saved since a matter previously resolved in courts is not re-tried in another.
Despite federal courts being superior to state courts, they too generally accept state court judgments, thanks to Article IV, Section 1 clause of the U.S. Constitution’s which states “full faith and credit”. However, there are some cases where federal law overstates the state law; but states have the right to decide when a particular judgment from one court is binding on another. California law specifies which state court judgments will be accepted by bankruptcy courts.

According to the Supreme Court of California, for a case to be excluded from re-litigation, it must be exactly similar to one decided in previous proceedings. The issue in concern must actually have been tried in a former proceeding. The case must have been certainly decided in the previous proceeding. The decision taken previously must be on merits and final. Lastly, the party against whom prohibition is being asked must be the same as the party in previous proceedings. If the creditor is able to prove that the judgment obtained in a state court satisfies all of the above mentioned five requirements in bankruptcy court, the debts will not be discharged.

In case the debt is not discharged as the debtor had incurred the same via means of fraud, the creditor needs to prove that the intentions of the debtor were malicious and done with the sole intention of cheating the creditor. If this was the actual issue litigated and decided in state court and a final decision was rendered against the debtor, then the bankruptcy court is bound to agree with the state court’s assessment and decision regarding the fraud element. The principle of collateral estoppel is applied with both discretion and flexibility. As per the U.S. Supreme Court, trial courts including bankruptcy courts should use broad discretion to know when res judicata must be applied.
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June 23, 2019
Planning Your Retirement
There are some interesting facts to know about us, Americans, from the research of Northwestern Mutual with regards to our readiness to face retirement. Here we go!
- There are no retirement savings for one American out of five
- One in three Americans have less than $25,000 saved, especially those who are nearing retirement shortly
- The percentage of Americans who are somewhat concerned about affording retirement is about 78%
These facts reveal the sad state of our fellow citizens who are almost ready to retire and teach us valuable lessons. It also imposes an important question at us. How much should we save so as to live comfortably in our retirement? The solution is definitely going to be different for each of the citizen and will vary widely depending on the state that we live in.

But, there are general points of tolerance in this planning needed for retirement and we can assess how we can meet them.

State-wise Variations

The amount needed for a comfortable living in retirement depends on the state where you intend to live in after you retire. Places like New York and California need more and have high living expenses compared to other regions of the country. Let’s say that you have saved $1 million as your retirement savings, here’s an example to help you understand how long that amount can enable your living in the concerned state. This data has been received by Go Banking Rates and they have collated this information based on the average total expenditures of the American citizens who are 65 years or older. On the gathered data of citizens, The cost of living index has been applied to adjust the differences between each state.

Longest lasting of the retirement amount of $1 million in states is as follows:
1. Mississippi: 25 years, 11 months, 30 days.
1. Oklahoma: 24 years, 8 months, 24 days.
1. Michigan: 24 years, 7 months, 14 days.
1. Arkansas: 24 years, 7 months, 4 days.
1. Alabama: 24 years, 7 months, 4 days.
The shortest amount of time that the $1 million would last is in the states listed below:
1. Hawaii: 11 years, 8 months, 20 days.
1. California: 15 years, 5 months, 27 days.
1. New York: 16 years, 3 months, 22 days.
1. Alaska: 16 years, 8 months, 6 days.
1. Maryland: 16 years, 8 months, 29 days.
Being in California, This news can be intimidating and inconclusive too! Though you are now sure that the cost of living in California is quite high, you are still unaware as to how much is needed to live comfortably after you retire.

Retirement needs – Estimate and Save

Several agencies or financial services firms or organizations provide different methodologies to calculate how much amount is needed to be saved for retirement. Let’s review a few here:
- Fidelity, One of the financial services firm, recommends that at least one of the salary is saved by an American before he turns 30. It will gradually need to increase as 3x of his salary by 40, 6x by 50, 8x by 60 and 10x by 67
- 4% rule indicates that all of your retirement expenses need to be met by withdrawing 4% of your total retirement funds.
- Some advisers recommend saving retirement amount to an extent that it is capable of generating 70-80% of annual pre-retirement income each year. This income-replacement rate can help you get an estimate of what will be the savings fund needed for your retirement.
These are only guiding principles and there is no hard & fast rule to follow these in similar lines. As stated above, your expenses will vary with the state, and the personal circumstances according to you. The best way to work on this savings plan will be to consult a financial adviser. Recovery Law Group has specialized experts who can understand your needs and suggest a strategy for your retirement savings. They operate in Los Angeles, California, and Dallas, Texas.

How to Save?

It is never too late and even if you are close to retirement, There are plans that can assist you to catch up on your retirement savings
- Excluding paying down high-interest debts first from your retirement can help you save the initial funds for retirement.
- Tax-favored retirement accounts like 401(k) and IRA are available for the citizens to contribute for the savings need. If you are aged under 50 years, Then the limits are $18,500 for 401(k) and $5,500 for IRA. If you are 50 years and more, then the limits are $24,500 and $6,500 respectively.
- Retiring late, if a viable option, can give you some extra time to save more for your retirement. Delayed retirement credits, issued by the Social Security Administration, are eligible to you in case you delay claiming Social Security benefits beyond the age of your full retirement
- Working on a second job can help with more funds to be put into your retirement savings
- Post-retirement, a part-time job can supplement your savings amount
As stated earlier, it is never too late to start saving. Do proper research and check on all feasible options. Reach out to experts in this space for any relevant guidance needed! The team at Recovery Law Group are ready to co-work with you – they will strategize the move, plan and execute according to your personal needs and also considering the cost of living of the state that you live in.
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June 22, 2019
Payday Loans: Myths & Facts
Payday loans or cash advance loans are small loans which are taken by a person against their wages and can be paid off at the time of their next paycheque. For people who have been facing financial issues for some time, payday loans are a common feature. Many of them who have been contemplating bankruptcy as a way of getting out of such problems had taken payday loans in their past.

Getting a payday loan is not difficult. The borrower can ask for a payday loan from a lender in the form of a post-dated cheque by showing them proof of employment. The cheque is drawn for the amount that the borrower requires plus the interest amount. The lender will hold the post-dated cheque till the borrower’s next payday in lieu of the borrowed amount given to the individual. When the amount is due, the lender can deposit the cheque and get their amount back. In case the borrower requires more money for any other reason by the time payday comes, the lender can hold the cheque at additional charges. Despite sounding easy, borrowing money through payday loans can be very costly, with sometimes interest costing close to 400%!

Lawyers of Los Angeles based law firm Recovery Law Group inform that consequences of taking out such a loan, but, being unable to pay it back can have bad consequences like:
- Relentless calls by lenders for pursuing payment.
- If the lenders have the authority, they can overdraw your checking account by automatic withdrawing of money.
- You can be sued by the lender for the amount of loan plus attorney fees and court charges.
- The debt can be transferred from the lender to a debt collector.
- If and when they get a judgment against you, the lender can garnish your wages too!
The only respite you have is that such lenders cannot put you in jail. This is so because they are aware that you lack the funds in your account when you have issued the post-dated cheque. Thus you cannot be held guilty of knowledgeably issuing a bad check.

Payday loans are one of the last resort by individuals facing economic problems before eventually filing for bankruptcy. In case you have reached the point, where you have to rely on payday loans, you should get an evaluation by expert bankruptcy lawyers by calling at phone number – (888-297-6203).
*Are you more than 60 days past due on your mortgage?
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*Do you own a home?
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Are you currently working?
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.
June 21, 2019