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  • Can Educational Loans be Discharged in Bankruptcy?

    Can Educational Loans be Discharged in Bankruptcy?

    Bankruptcy is the best legal recourse available to people to get rid of unpaid dues accumulated due to miscalculated financial risks, heavy medical bills or long credit card bills. However, certain debts such as spousal and child support, government taxes and educational loans are not discharged even post-bankruptcy. Getting student loans written off during bankruptcy is extremely difficult, though not impossible, say Dallas based bankruptcy lawyers Recovery Law Group. By proving “undue hardship”, which incidentally is very difficult, one can get them cleared, however, the standards set by the court are extremely difficult to meet. According to the court set requirements, a person trying to get education loan discharged off needs to prove that he/she has endured more hardships than any average person.

    Though it is not necessary that every student loan will be discharged, you can always try if you can qualify for the same. For students who are older, it might be relatively easy to prove “undue hardship” since it is slightly more difficult to find a good paying job as you age; thus paying off debts and living a debt free life might become tricky. However, not all educational debts require the standard of “undue hardship” to be able to get discharged; they can be discharged like most debts post-bankruptcy.

    How to distinguish educational debts which can be discharged without the “undue hardship” standard?

    According to the Federal Bankruptcy Court section titled “Exceptions to discharge”, subsection 523(a)(8) which describes educational debts that require “undue hardship” for discharge, there are 2 main parts:

    1. Loans and overpayments “made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or non-profit institution.” In this, a large portion of all federal and state insured student loans are covered. Any loan funded through non-profit educational institutes is also covered here. To get these loans discharged you need to show “undue hardship”.
    2. This section deals with those loans which can be discharged without proving “undue hardship”. Here “qualified educational loan[s] as defined in section 221(d)(1) of the Internal Revenue Code . . . .” debts are included.

    Since unless the law states so, a debt cannot be discharged; educational loans which are not government guaranteed or funded by a non-profit and are not a “qualified educational loan” cannot be discharged without proving that you are undergoing “undue hardship”. It is therefore important to know about “qualified educational loan” so that you can discern whether they can be discharged without “undue hardship” or not. Three main types of debts which do not qualify as “qualified educational loan” emphasize on:

    • Type of educational institute attended
    • Timing of loan
    • Expense type for which debt was acquired

    Identifying Expenses which can Disqualify Debts & Make them Easily Dischargeable

    For a debt to not be a “qualified educational loan”, and avoiding the “undue hardship” clause, it should not be “incurred solely to pay qualified higher education expenses” as per Internal Revenue Code’s Section 221(d)(1). In layman terms, a mixed-use debt which is partly used to fund expenses related to education and partly for an unrelated purpose can be discharged without crossing the “undue hardship” hurdle. Student loans, in general, have contracts that ask you to declare that the loan grant is being used for educational purposes only. However, private loans can be used to fund not only the cost of education but also can be used elsewhere and thus can be completely discharged.

    Important Points to Remember while Considering the Discharge of Educational Debts

    There are certain points to be kept in mind regarding the discharge of educational debts like the timing and the type of the educational institute. Here are a few points to remember:

    • If you incurred the debts at a point of time when you were not an eligible student, the debt can be discharged without “undue hardship”. In case you applied for a course, for which you weren’t eligible, the debts can be easily discharged.
    • For an eligible student, you should be enrolled for at least half-time in a degree or certificate course. In case you have taken any educational debts when you were ineligible, the debts are dischargeable.
    • In case you are not studying at an “eligible educational institution”, the educational debt is not a qualified one. Many educational institutes are eligible, though not all of them. Some of the ineligible educational institutes (both big and small) have been functioning from time to time, with many going out of business too. Any debt incurred thanks to them can be discharged without “undue hardship”.

    It is important to ask bankruptcy lawyers, whether the educational institute you attended is an eligible one or not. To know more about getting educational debts discharged you can consult expert bankruptcy attorneys at 888-297-6023.


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    • Can a Litigant Who has filed for Bankruptcy be harassed by Financial Servicing Company?

      Can a Litigant Who has filed for Bankruptcy be harassed by Financial Servicing Company?

      A plaintiff who had executed a mortgage loan from Bank of America, N.A. on April 16, 2007, was unable to make adequate payments to the bank. This resulted in the bank filing a foreclosure complaint against the plaintiff. Post this, the plaintiff filed for bankruptcy under Chapter 13 in January 2013, which resulted in automatic stay affording protection against any collection actions. In June 2013, a modification was made in Chapter 13 bankruptcy by the plaintiff, wherein they proposed to surrender the home to Bank of America, N.A. against their claims. This modified plan was confirmed in June 2013, by the bankruptcy court.

      This debt was later sold off by Bank of America, N.A. to BSI Financial Services, Inc. To recover the dues, BSI Financial Services, Inc. sent a Notice of Servicing Transfer to the plaintiff on October 1, 2014. According to the notice, the plaintiff is expected to send any payments due on or after the said date to BSI Financial Services, Inc. A disclaimer was also attached to it, according to which:

      In case you have filed for bankruptcy, the “automatic stay” comes into effect in a bankruptcy case, or you have received a discharge for personal liabilities for obligations specified in the letter, BSI Financial Services, Inc. will not and does not intend to pursue collection of said obligation from the plaintiff personally.

      After six months of sending the above-mentioned notice, BSI Financial Services, Inc. made over ten phone calls to the plaintiff’s cell phone, nearly five calls to the home telephone and more than 10 voicemails. The plaintiff responded to BSI Financial Services, Inc. and asked them to stop the constant harassment since they had already filed for bankruptcy. But despite the request, the calls continued. According to the plaintiff’s complaint against BSI Financial Services, Inc. they had:

      • Made a minimum of 10 calls within a 2 month period (between October 15, 2014, and December 12, 2014)
      • Used automatic dialer system to call the plaintiff
      • Continuous calls were made to plaintiff’s cell phone
      • Made regular attempt to contact the plaintiff without their consent.

      BSI Financial Services, Inc. asked the court to dismiss all four different claims made by the plaintiff. Since numerous complaints were made by the plaintiff, the court also gave multiple decisions:

      1. Since BSI Financial Services, Inc. had acted as a debt collector, thereby violating the Fair Debt Collection Practices Act, the 1st charge of the complaint was not dismissed by the court.
      2. Since there was no proof that the voicemails left by BSI Financial Services, Inc. were pre-recorded, that plaintiff answered calls or that there was a delay before plaintiff got any human response, the 2nd charge was dismissed.
      3. The 3rd count was not dismissed as the defendant, BSI Financial Services, Inc., had indulged in acts of collection, assessing and claims of recovery by sending the plaintiff letters and numerous phone calls all amounting to the collection. Due to these actions, the defendant had willfully violated the bankruptcy automatic stay.
      4. A further analysis was required to assess whether the defendant had violated the Illinois Consumer Fraud Deceptive Business Practices Act for the 4th

      In case you find yourself in a bad financial situation, it is important that you contact expert bankruptcy attorneys at 888-297-6023 to find out the best possible course of action for yourself. To frame an effective plan for your financial problems, consult Los Angeles based law firm Recovery Law Group .


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      • Business Debts

        Business Debts

        The interest in launching something innovative often leads to venturing into business initiatives. In the U.S. the individuals find great platforms and get good support to start their own business and this spirit of entrepreneurship is much appreciated by society. However, there are ample things to reckon before one decides to take the big plunge into the business world of U.S. – the business venture could either be big or small, the invention of the new or expansion of the old.

        The foremost factor to consider in starting a business venture is the availability of a proper business plan. Unless you have the roadmap, there is no vision in your venture. Alongside this plan, the crucial aspect is the availability of stable investors. Without these aforementioned resources, it is easy for an individual to quickly land into a financial crisis with the business that he starts. The outcome is business debts and it could keep mounting with each day. It is quite normal for an individual to start their business in debt but with time the progress with business should save them from getting into financial crisis.

        Bankruptcy filing for business debts

        Surplus debts that turn out to be unmanageable for the business owners force them to file for business bankruptcy. It isn’t a negative move for your business to file for bankruptcy and there is nothing to worry or be shameful about it. The businesses see it as an opportunity to reconstruct their debts and formulate a plan to build their financial stability. At any cost, the filing of business bankruptcy shouldn’t be used for protecting your assets or your business fraudulently.

        You will definitely admit that the procedure of filing for business bankruptcy and the related tasks are very stressful. Unless the debtor has a backing through an efficient bankruptcy firm, it is always advised to stay away from business debts. Recovery Law Group, operates from Dallas, Texas and from Los Angeles, California have expert attorneys who can offer the support and guidance to handle situations of business bankruptcy. Dial 888-297-6203 to avail their services and get speedy 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.

        • Bankruptcy Lawyers Guidance for Debt Relief Options

          Bankruptcy Lawyers Guidance for Debt Relief Options

          At Recovery law Group, we help you deal with in-excessive debt which you may have accumulated over the years. If you are a victim to insurmountable debt, do not worry, as we have experienced lawyers who will be at your service to bring you out of your misery. We will study your case, and support with you with the best available solution as per your case and scenario. Not only will we guide you in coming out of this debt, but also provide alternatives and options to help your overcome your dire days and take a fresh start towards a stable and a better financial future. We provide services in Los Angeles, Dallas, and TX. You can easily get in touch with our lawyers at 888-297-6203.

          Recovery law Firm – The name that is always Trusted

          Our Motto is – “Clients First” and hence we go out of our way, to help you get a positive solution. Our lawyers are experienced and have solved multiple such cases on Debt Relief and will do the same for you. Each case is unique and so is the solution for it. We, at Recovery Law Group, therefore take out time to understand our client’s situation before recommending any proceeding or step based on previous cases.

          Why should you choose recovery law Group over Other Firms?

          Apart from many obvious reasons why should you choose us to handle your case, here are some reasons which prove we are your Right choice-

          1. We are one of the most reputed along with being the largest Bankruptcy cases handling firm.
          2. We have solved more than thousands of cases with a positive outcome in Dallas, Las Angles as well as TX.
          3. We are all ears to understand your case before moving to guidance. Meaning, each case is unique and so are the solutions, so we give you only those solutions which are best suited for your case and beneficial for you and not as per older cases on the same

          Benefits associated with Filing for bankruptcy

          Though filing for bankruptcy should be the last resort, filing for bankruptcy under chapter 7 and chapter 13 can be highly beneficial for people who are in dire need of a solution from their debts. Filing for the above can help you overcome your debt issues. The best option is to consult a Recovery Law Group lawyer, who can guide you about the proceeding and steps involved while filing for the same.

          1. Once you file for bankruptcy, the automatic stay will prevent all the future debt collection efforts.
          2. It will help you discharge the majority of your unsecured debts
          3. It will also help in preventing foreclosure of your home
          4. It will also put an end to auto repossession and wage garnishment
          5. Most importantly, it will clear your bad debts and help you start afresh with a good background.

          Chapter 7 Bankruptcy Explained

          To fall under the category of Chapter 7 and to be able to file for bankruptcy under this chapter, you need to fulfill certain criterion to prove that you actually are in dire debt and unable to repay your debts. A Means Test will be conducted to confirm whether your income falls under the guidelines of Chapter 7. If you are fortunate enough to file for bankruptcy under this criterion, be informed that the majority of the people who have filed for bankruptcy under Chapter 7, often get their debt discharged. This chapter is generally recommended by lawyers when your income is very less and you have no resorts left to repay your debts. This chapter is often termed as the “Liquidation Bankruptcy” since if you qualify under this chapter, it is quite likely that your debts will be discharged, of course at the price of surrendering/selling part of your property to repay the creditors.

          Chapter 13 Bankruptcy

          This is the next resort when you do not qualify to file for bankruptcy under chapter 7. Often termed as “reorganization bankruptcy”, under Chapter 13 you get the opportunity to repay your debts over a period of time viz – 3 to 5 years. Here the bank helps to grant you time when you are not able to pay back your debt immediately. This option is generally selected by people who have adequate income to pay back their debts but cannot do so immediately.

          Step by Step guideline to file for bankruptcy

          Filing for Bankruptcy is not a cake-walk, as it involves complex proceedings. Hiring a professional bankruptcy attorney can make the entire proceedings quite simple for you which involve submitting a plethora of forms, providing all detailed information to the bankruptcy court, attending court hearings, attending legal procedures amongst many others.

          Step by step process includes-

          1. Completion of a credit counseling course

          You need to complete a Credit counseling course approved by the U.S Trustee’s Office. This course generally costs around $25 to $35 and needs to be completed 180 days before you file for bankruptcy. If the above course is out of budget or cannot be afforded by you, you can ask for a free course or discounts.

          1. File for Bankruptcy petition with the Federal court

          The next step after completing the credit counseling course is to file a petition with the Federal court in your jurisdiction. Along with the petition, you must submit all the relevant information regarding your income, debts, and assets owned by you. Filing for bankruptcy petitions at the Federal Court has a lot of advantages. Once done, you will stop receiving calls, mails, and texts from the creditors, as your bankruptcy attorney will be directly handling that. If you going through foreclosure or repossession, filing for bankruptcy will put a stay on them! Not only this, but all your debt collection efforts via creditors will also stop once the court issues stay order on them. Please note, the above will only be valid if you have not already filed for bankruptcy in the last 12 months.

          1. Attending the Meeting for Creditors

          You also need to attend a “meeting with the creditors”, 60 days from the day you file for the bankruptcy petition. This meeting is generally conducted in a “meeting room” and not the court, between your attorney, bankruptcy trustee and the creditors. This meeting is generally conducted to evaluate the information submitted by you along with your bankruptcy petition along with other questions which the bankruptcy trustee may have for you. The creditors may or may not attend this meeting.

          1. A debt Counseling Course

          Post the meeting of creditors, you need to retake the debt counseling course, to help you understand your budget better along will planning on how to move ahead to manage the debts.

          1. Confirmation by the court regarding your Eligibility to file for bankruptcy

          After you have re-taken the debt counseling course and understood on how to proceed with managing your debt, the court will now review the information submitted by you at the creditors meeting. If you have filed for bankruptcy under chapter 7, the court will ascertain the Means Test score and judge your eligibility. In case you have applied for bankruptcy under chapter 13, your secured and unsecured debts will be reviewed to confirm your qualification.

          1. Debt management by the Court

          If in the above step, the court has accepted your plea for bankruptcy, the court will now handle your debts as per the guidelines of the Chapter you are filing under. If qualified under Chapter 7, you will have to liquidate part of your assets/property to repay your creditors. If qualified under chapter 13, you will have to submit a detailed plan for repayment as per the 3 years or 5 years scheme.

          The court will finally award you a discharge of eligible debts, once you have completed the above steps and paid off the necessary debts as stipulated by the court.

          What types of debts can be discharged?

          There are generally 2 types of debts – Dischargeable and Non-Dischargeable.

          Dischargeable debts are those which can be completely wiped out by the bankruptcy court. Which means, that once the bankruptcy court approves dischargeable debts, you are no longer liable to pay these back and nor can the creditors follow up or harass you regarding them. These include – Medical Bills, Utility Bills, Personal Loans, Credit Card Debt, etc.

          Non- Dischargeable debts cannot be completely waived off, though you can get an extension to repay these via Chapter 13. These commonly include – Student loan, alimony, child support, and tax debt.

          A good and professional attorney like at Recovery law Group can help you review and understand the type of your debt to help you deal with the situation better.

          Alternatives to bankruptcy

          Consulting a good and professional attorney is the best choice while planning to file for bankruptcy. If you will not be getting any benefit via filing for bankruptcy, your attorney can guide you through other alternatives and options like – debt consolidation, restructuring the loans, negotiation for decreasing debt amount, etc.


            *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.

          • Bankruptcy and Bitcoin

            Bankruptcy and Bitcoin

            The value of Bitcoin that had been launched in 2009 by Satoshi Nakamoto, has shot up in its value over the years. Gone are the days that close to 10,000 bitcoins were needed to buy a Papa John’s pizza. It now trades at $6,500 and the price of each bitcoin increased to $20,000. Notwithstanding the changes in its trading value, The percentage of buyers or investors in bitcoin money has not declined. That is why we see many people all around the world, own bitcoins or other types of cryptocurrencies. Have you queried what happens to them or the bitcoins that they own when such folks encounter a financial crisis or when they file for bankruptcy?

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

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

            Bitcoin

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

            Bitcoin in Bankruptcy

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

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

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

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

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

            Miscellaneous complexities

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


              *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 can an Inheritance affect my chapter 7 Bankruptcy?

              How can an Inheritance affect my chapter 7 Bankruptcy?

              The announcing “timing is the entirety” applies to many things in life, and that consists of how financial ruin can have an effect on your inheritance in Dallas. if you received an inheritance before filing for a chapter 7 financial disaster, it can become part of your financial ruin property much like any of your private home unless you can defend it with a bankruptcy exemption. but what in case you declare financial ruin after which your notable Aunt Estelle dies suddenly and leaves you a fortune? well, that could be a exclusive rely depending whilst she died.

              Article at a glance

              If a person dies and leaves you an inheritance inside a hundred and eighty days after you file bankruptcy, that property will become a part of the financial disaster estate until it falls beneath an exemption.

              The one hundred eighty days is measured from the date of submitting until the date of loss of life, now not while you acquire the inheritance.

              you’ve got alternatives, but you have to speak them together with your lawyer as soon as you could. Your lawyer will need to amend your financial ruin files that were submitted to the court.

              The 180 Day Rule

              A Chapter 7 bankruptcy forgives most of your money owed, however the bankruptcy trustee can promote your belongings so that you can pay off creditors except for those assets that fall beneath an exemption. normally,  after you document for bankruptcy, any belongings you purchased cannot be touched by the financial ruin trustee. but, this isn’t always authentic for inheritances. If someone dies inside one hundred eighty days when you document for financial ruin and leaves you an inheritance, it turns into a part of your financial ruin estate except it falls beneath an exemption.

              The critical date is the date of demise; it does now not depend whilst you definitely acquire the belongings. If top notch Aunt Estelle dies and leaves you a fortune 181 days once you filed for bankruptcy, you’re inside the clear and might maintain the entire inheritance. however if remarkable Aunt Estelle dies within one hundred eighty days of the time you filed for financial ruin, you’re out of good fortune unless the belongings is exempt underneath financial ruin law. The purpose the law adds 180 days for inherited assets is to prevent human beings from putting forward bankruptcy proper earlier than they get an anticipated inheritance, due to the fact they do no longer want to pay lenders with that inheritance.

              What to Do if your Inheritance Falls inside a hundred and eighty Days After Your financial disaster submitting

              1 The primary factor you have to do whilst you learn of the inheritance is to name your Dallas financial ruin lawyer, who can lay out your options. Your lawyer additionally must amend your financial disaster submitting with the courtroom. Don’t even reflect on consideration on not reporting it, due to the fact that could be criminal fraud, which can land you in jail. And there is a very good chance your financial disaster trustee would find out.

              2 If the inheritance is a massive one, you’ll be capable of pay your creditors with it and keep away from financial disaster all together. likely your attorney can negotiate a settlement of much less than you owe with them.

              3 As already stated, component or even the inheritance if it isn’t a massive one, may additionally fall underneath bankruptcy exemptions, which might permit you to maintain the exempt portion. In Dallas, in case you favor to use Dallas exemptions under Dallas Code of Civil manner segment 703 instead of federal exemptions or those under Dallas Code of Civil method section 704, you may declare a wildcard exemption, that may permit you to protect over $28,000 of your inherited assets or any other property. Of course, you can need to apply that exemption for every other motive which includes protecting your house.

              4 At one point, in case you were expecting an inheritance, extremely good Aunt Estelle ought to have set up a spendthrift believe naming you as inheritor as opposed to leaving you the properly directly in her will. within the beyond, lenders couldn’t touch spendthrift trusts in Dallas. however in 2017, the ninth Circuit opened spendthrift trusts to lenders.

              Seek advice from Your Dallas financial disaster lawyer

              In case you assume there’s even a risk you could inherit money or property inside six months when you record for financial ruin, be sure to inform your bankruptcy legal professional. if you document for financial disaster comfort and a person passes away and leaves you an inheritance within 180 days when you document for financial disaster contact your legal professional straight away. take into account, the critical date is the date the individual surpassed away. The date you really received the assets is of no result to the financial ruin courtroom.


                *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.

              • Will Filing Bankruptcy Require Liquidating of Business?

                Will Filing Bankruptcy Require Liquidating of Business?

                It isn’t uncommon for a business owner encountering situations wherein revenues decline and debts become surplus. Planning and executing business is by itself a challenge and being in junctures of financial instability can be equally worrying. Luckily, the U.S. Bankruptcy Code is a saving grace to address these startling situations of the financial crisis in businesses and in personal front too!
                The key question of a business person is whether the business needs to be liquidated in bankruptcy. To throw some clarity to this, here are some important factors that are to be understood while the business owner files for a bankruptcy

                The type of bankruptcy filed for your business will be the deciding factor and it determines whether your business/ company needs to be liquidated. Filing for bankruptcy under Chapter 7 clauses of your business requires your company and the other assets to be sold in order to settle your creditors. In cases of companies/ businesses that haven’t been incorporated or under sole proprietorship, the type of bankruptcy to be filed will be a personal Chapter 7 bankruptcy. So discuss it with the right business attorney whether Chapter 7 bankruptcy for business or for an individual is needed for your case.

                Filing for Chapter 11 bankruptcy for the financial issues in your business enables the restructuring of those debts so that they can be repaid over time. This scenario is somewhat similar to the bankruptcy filing done by individuals and couples using Chapter 13. Chapter 11 bankruptcy is suited for larger businesses and saves the company and its assets from being sold – the bankruptcy plan should have been presented earlier and approved by the bankruptcy court.

                Another view to Chapter 11 bankruptcy for businesses enable the company to liquidate their assets in an orderly or organized way. This is best suited for businesses when they are determined to close operations or if their operating costs are higher than before. This planning created buyer friendly conditions and yield better liquidation outcome.

                If the business owners run a business of good value and that assure recovery over the years, then they can repay their debts via an approved bankruptcy plan – this plan should have been in place and approved by creditors & bankruptcy court. They can continue operating their business and save it from liquidation. The bankruptcy trustee determines the value of your company and whether there are assets in your company that can be liquidated in order to benefit creditors

                Despite the stated factors above, every business case could be quite unique in its nature. As renowned bankruptcy attorneys, the Recovery Law Group works with every client who has fallen into tough times financially in personal and business fronts. The clientele base that we cater to is from the Los Angeles and Dallas, TX regions.


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

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                • Source of Bankruptcy Money

                  Source of Bankruptcy Money

                  Bankruptcy is the process through which, individuals or businesses who are in conditions of surplus debts and in the situation of financial struggles, get relief of this scenario and regain their stability with finances. In order that this process be debtor beneficial, the type of Chapter against which bankruptcy is filed will be important (more…)

                • Should I Keep My Car during Bankruptcy?

                  Should I Keep My Car during Bankruptcy?

                  Bankruptcy is a name which often causes people to panic. This is so because most of the time, it is associated with the image of being thrown on the streets penniless. However, nothing could be farther than truth. More often than not, the financial situation of an individual is tight, which has led them to file for bankruptcy. Since financial problems can affect a number of areas of your life including your job, property, and vehicle, many people question whether it is appropriate to keep their vehicle if they plan to file for bankruptcy. (more…)

                • Being Prepared For Your Meeting of Creditors

                  Being Prepared For Your Meeting of Creditors

                  The meeting of creditors or a 341 hearing is a mandatory process conducted by the bankruptcy trustee when there is a filing of bankruptcy. During a filing of bankruptcy, the petitioner provides several documentations related to the situation including the petition and schedules. In the hearing process, the trustee gets the opportunity to ask the petitioner questions regarding the furnished information. The answers to these questions have to be answered under oath.

                  If you are an individual who has filed bankruptcy, it is imperative that you have to be part of this meeting of creditors. Needless to say, this meeting can be an anxious ordeal and can make the individuals to panic. But be prepared for this meeting by knowing what will be asked can help alleviate the anxiety prior to appearing for this hearing. (more…)