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  • Questions to Ask a Bankruptcy Attorney Before Filing

    Questions to Ask a Bankruptcy Attorney Before Filing

    Bankruptcy can be trying times for people struggling to make ends meet. Though you can file for bankruptcy on your own, Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/ suggest that you hire an expert bankruptcy attorney to help you with your case. Despite a lot of information regarding bankruptcy is available online, it is important that you ask the following questions with any potential attorney you wish to hire for handling your bankruptcy case.

    • Which chapter of bankruptcy would work best for you?

    Individuals can file for bankruptcy under Chapter 7 or Chapter 13. To qualify for Chapter 7, you should be able to pass the means test. According to this, your average income should be less than the state median for a household of similar number of members. Chapter 7 is preferred as it takes relatively smaller timeframe to get a discharge. Any non-exempt property you have is liquidated to pay your creditors and remaining unsecured debts are discharged at the end of the bankruptcy case.

    If you are unable to pass the means test, Chapter 13 is an option. For this case, you need to have enough income to support a repayment plan, where your disposable income will be used to clear your debts over a period of 3 to 5-years. Additionally, if you have more equity in the property than can be exempted, Chapter 13 allows you to keep the non-exempt property if you pay unsecured creditors an amount equal to the value of the non-exempt property. An adept bankruptcy attorney can help in determining which chapter would be best for you.

    • Which assets can be protected during bankruptcy?

    Anything you own including your property and any assets becomes part of your bankruptcy estate. However, federal and state government provide exemption through which you can protect your property. A qualified bankruptcy attorney Los Angeles can help you in protecting most of your assets when you file for bankruptcy. This includes any foreclosure or repossession from creditors.

    • What happens in the case of preferential payment?

    If you pay any creditor at the expense of another, this might be considered a case of preferential payment, which is not looked upon kindly by the court. An experienced bankruptcy lawyer can distinguish between the payments made by you to all creditors, to determine whether any of them can be considered preferential. If there are any such payments made, they might also find ways to rectify them.

    • What is the 707B objection?

    Sometimes, the bankruptcy trustee might object to Chapter 7 filing of a debtor. This may be due to the high income of the debtor, which makes them a better candidate for Chapter 13 bankruptcy. Generally, your income and the type of your debts are considered while deciding on the bankruptcy chapter. Higher-income generators have a better chance of paying their debts and therefore in such cases, Chapter 7 bankruptcy is rejected in favor of a Chapter 13 bankruptcy. Expert bankruptcy lawyers at 888-297-6023 can help you with your bankruptcy.


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

      *Do you own a home?

      Are you currently working?

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

    • Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

      Clause For Refinancing a Loan Agreement That Was Discharged in Bankruptcy

      When a person applies for bankruptcy under chapter 7, in Los Angeles, most debts are cleared. The debtor is no longer obliged to the creditors. However, a debtor can keep a loan agreement if he/she wills to save that particular property. Usually, all the property and valuables are sold to clear the debt under chapter 7. If the debtor wants to retain any property, be it their house or car; they can continue to follow the loan agreement towards that house to the creditor. For more advice do log in to Recovery Law Group.

      Reaffirmation

      The process of retaining the mortgage is called reaffirmation. When a debtor reaffirms a debt, he/she affirms to owe the debt after the bankruptcy case ends. The debtor is under the same contract with the creditor and continues to pay the same installments against the mortgage. The loan agreement between the debtor and creditor will behave in the same manner and will not be likely affected by the bankruptcy case.

      The creditor can seize the property if the debtor fails to repay the loan if he/she reaffirms a loan agreement. On the contrary, the creditor can have no effect whatsoever on the debtor if he/she does not reaffirm a mortgage. Hence, it’s advisable not to reaffirm a mortgagee, whilst filing a bankruptcy case under chapter 7.

      Can a debtor Refinance a loan that is not reaffirmed?

      Not reaffirming the mortgage and still upholding the discharged loan, the debtor cannot ask the creditor to refinance his mortgage. Once the debt is discharged, the creditor has no say in the mortgage process. The creditor has to be contented with little or no pay directed by the court. So, if the debtor asks for refinancing a discharged loan to the creditor, it violates the bankruptcy rule. The debtor cannot ask the same creditor for refinancing but can request other lenders to refinance his mortgage.

      Is reaffirmation a viable option to secure a property under debt?

      A reaffirmation agreement in Chapter 7 bankruptcy law must be approved either by the bankruptcy judge or by the bankruptcy lawyer. However, both the bankruptcy judge and lawyer sways clear off reaffirmation, stating that it may put unreasonable implications on the client. A client can retain his/her house without the reaffirmation agreement.

      • Bankruptcy court certification

      The bankruptcy judges do not advocate loan agreement reaffirmations. The court allows the debtor to keep the mortgage, so long as he/she follows the timely schedule of paying to the creditor. It argues reaffirmation as unnecessary. The only likely benefit of reaffirming a loan agreement is a healthy credit score. And the court feels it unnecessary to burden the debtor with reaffirmation for a mere healthy credit score.

      • Bankruptcy lawyer’s certification

      The bankruptcy lawyers also do not advocate reaffirmation. Since they feel that the court does not support reaffirmation, if they advocate for it, they may be obligated to the process of the loan agreement. They do not want to take the responsibility of their client in reaffirming a mortgage. If they sign the reaffirmation agreement, they may be liable, if the client defaults, causing unnecessary complications.

      Loan agreements or mortgages are not necessarily reaffirmed in bankruptcy under chapter 7. The debtor can refinance the loan agreement discharged in bankruptcy by other financiers, without reaffirmation. For more information call on (888-297-6203)


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

        *Do you own a home?

        Are you currently working?

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

      • Status of Pets in Chapter 7 Bankruptcy

        Status of Pets in Chapter 7 Bankruptcy

        People in Los Angeles love to keep pets like horses and dogs. When they need to file bankruptcy, the fear of losing them in the procedure is quite high. Most of them shy off from applying for chapter 7 bankruptcy since they do not want to lose their pets. They love their pets and treat them like family members. However, the court needs to investigate many things before allowing pets to be exempted. Applicants looking for some valuable advice to keep their pets must visit- Recovery Law Group.

        How can an applicant exempt their pets in a bankruptcy case?
        When a person applies for chapter 7 their entire property is evaluated, which also includes high maintenance pets like horses and dogs. The aim to evaluate the entire assets is to generate a decent amount to pay the creditors. If the pets can fetch good money the court will not shy from putting it in the non-exempted column. Chapter 7 allows the applicant to keep certain assets that will not be sold out. The assets that are exempted may differ from State to Federal system.

        Are pets exempted?
        Some states may allow the applicant to keep the pets. So, if the applicant belongs to those States, he can keep the pets. While other states may offer a wildcard exemption. A wildcard exemption is a gift card by the court that allows the applicant to keep any of their personal objects that may not value more than a certain figure. If the pets’ value falls within that figure the applicant can keep them. The applicant must study the State and Federal rules for exemption in Chapter 7 before applying for bankruptcy. This will give them a clear picture.

        Can the court exempt pets?
        The trustees appointed by the court can exempt the pets without employing wildcard. The trustee if finds, the pets cannot generate much value, it can exempt them. An ageing horse or dog that may not bring much monetary value can be exempted by the trustee. However, a good breed dog or horse that will generate good worth will not be exempted.

        Pet care
        Pets care can be an expensive affair. The applicant needs to fill many forms before filing Chapter 7 Bankruptcy case. The forms have details of the clients’ income, expenses, assets, debts, and the latest financial transactions. Schedule J is the form that shows details of the applicant’s expenses. If the trustee observes that the client is spending far too much on pet care, they can advise the court to dismiss the case. The trustee may feel that the money spent on pet care could have been otherwise used to pay the creditors.

        Day-day living expenses
        The applicant’s day-day living expenses are scrutinized in detail by the trustees. In no way, the applicant can enjoy a luxurious life and be a suitable candidate for Chapter 7 bankruptcy Los Angeles. The court needs to examine whether the case is not a fraud one. Hence, if the applicant’s daily expenses are minimal, despite expensive pet care, the trustee can grant an exemption on pets. Cutting their own cost by using an inexpensive car, abandoning middle-class luxury lifestyle can convince the trustee and allow immunity to pet like horses and dogs.
        Apparently, the court’s major objective is to allow the applicant to enjoy a decent life with their loved ones after the bankruptcy case. For more details on retaining the pets please call on- 888-297-6203.


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

          *Do you own a home?

          Are you currently working?

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

        • Thinking about converting Chapter 13 to Chapter 7 before the term ends?

          Thinking about converting Chapter 13 to Chapter 7 before the term ends?

          A recent court case has provided for good news for many Chapter 13 filers. There can be many scenarios wherein, Chapter 13 payment plan might just not go as planned. The filer might not be in exceptional hardship to get a ‘hardship wave off’ but certainly paying off dues as per the payment plan can become extremely challenging. Converting Chapter 13 bankruptcy to Chapter 7 is a great option for such bankruptcy filers. It was not really ‘on’ but after a recent Supreme Court hearing, it has become more realistic now. To learn more about some latest judgments and their impacts on your case, log on to https://bankruptcy.staging.recoverylawgroup.com/.

          What was the case?

          The historical case had Harris file for Chapter 13 bankruptcy. His approved payment plan had a $530 payment, which he provided for to the bankruptcy trustee every month. The bankruptcy trustee had to distribute those payments to two major lender categories. One chunk would go to the bank for mortgage arrears, while the second chunk would be distributed to other lenders based on the proportion of their liability. Mr. Harris was not able to keep up with the mortgage arrears and lost his home due to foreclosure. After this, Harris continued making $530 of plan payments but did not distribute the amount allocated to the mortgage arrears to other lenders.

          After a year or so, the funds accumulated to $5,500 which had not been distributed to other lenders. Mr. Harris decided to convert his bankruptcy into Chapter 7 and realized within a span of 10 days, the bankruptcy trustee had distributed $5,000 to the other lenders. Mr. Harris was unhappy with this and sued the bankruptcy trustee for his $5,500.

          Different courts had different opinions

          Some experts, as well as courts, thought that the funds held by the bankruptcy trustee belong on the lenders or the creditors once, Mr. Harris converted his case to a Chapter 7 bankruptcy. However, other courts and the Supreme Court judgment seem to believe that the undistributed funds in the hands of the bankruptcy trustee belong to the debtor. This was certainly a big relief for Mr. Harris and various other Chapter 13 to Chapter 7 converters.

          Some key pointers in Supreme Court’s inference

          Court highlighted a few points, which will be a base for many such future arguments or judgments. These can be listed as follows-

          • The court inferred that when a Chapter 13 case is converted to Chapter 7, the bankruptcy estate shall consist of income and assets owned by the filer when he/she originally filed Chapter This means any income generated after the filing debt and any asset built after the filing date, will not be included in the bankruptcy estate. All these belong to the filer.
          • The Chapter 13 bankruptcy trustee Los Angeles does not hold any right to distribute the $5,500 to the lenders as in the case of Mr. Harris.
          • In order to overcome this scenario, the bankruptcy trustee and the lenders should consider distributing income regularly and appropriately to minimize such controversial situations.

          If you are a lender or a bankruptcy filer, how does this ruling affect you and your bankruptcy or lending situation? Find out by dialing in +888-297-6203.


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

            *Do you own a home?

            Are you currently working?

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

          • Chapter 11 or Chapter 13: What is Best For a Small Business?

            Chapter 11 or Chapter 13: What is Best For a Small Business?

            Small businesses, when comes under acute pressure of financial liabilities, do not have many options with them. Filing for bankruptcy can be the only option if you had like to revive your small business or wrap up the same. Chapter 7 bankruptcy will lead to winding up of the small business while Chapter 11 or Chapter 13 (if qualified) can help you in keeping the business running. To learn more about Chapter 7 and its benefits, log on to https://bankruptcy.staging.recoverylawgroup.com/.

            How does Chapter 11 or Chapter 13 help?

            The concept or logic used in Chapter 11 or Chapter 13 is similar. They deal with the restructuring of business/individual debt in order to make the payout more practical and feasible for all parties involved. Some key benefits of this concept can be listed as follows-

            • Allows for business continuity by retaining most business assets
            • Helps you buy time to settle the crisis, extremely beneficial if the business has been struck with some temporary obstacles
            • Helps in arriving at a negotiated agreement with the secured lenders
            • Helps in releasing some of the debts, especially non-priority unsecured debts that cannot be paid of during the length of the proposed repayment plan

            Eligibility and benefits

            In comparison, if eligible, Chapter 13 is always a better option. Most small business owners especially sole proprietors are eligible for Chapter 13 and opt it straight away even before evaluating Chapter 11. Chapter 13 is less expensive and less complicated compared to Chapter 11, which makes it a straight choice. Eligibility criterions for Chapter 13 are listed as follows-

            • As discussed earlier any individual who has a sole proprietorship is eligible for Chapter 13.
            • In certain cases, based on case to case scenarios, small enterprises below the debt threshold can be facilitated under Chapter 13.
            • This, however, is completely in discretion of the bankruptcy court and is pretty rare.
            • If you are a sole proprietor and have debts below the threshold, you would not have to worry about the rarest of rare scenarios.

            Unlike Chapter 13, Chapter 11 does not have any eligibility criterion. Anyone can usually file under Chapter 11 for bankruptcy. Individuals, corporations, small businesses, partnerships, etc. There isn’t any debt threshold either. It is a sort of blanket bankruptcy chapter that is slightly more expensive and complicated than other alternatives.

            Advantages of Chapter 11

            • The first advantage of Chapter 11 is with respect to the modification in terms with the secured lenders. This negotiation and change in terms make it more likely for a business to retain its assets and function well in order to recover from the state of bankruptcy.
            • The usual concept of discharge or release of debt occurs only when the payment plan has ended. The payment may vary as per disposable income in Chapter 13, which means if the income increases over the duration of payment’s plan, you might end up paying more and have fewer debts discharged or released. The debt in the case of Chapter 11 bankruptcy, is released with the start of the payment plan. Once, the payment plan has been approved, the unpayable debt as per the payment plan is released.
            • The cost or commission towards a bankruptcy trustee can be saved when using Chapter 11. As per laws, bankruptcy trustee appointment is optional and is usually appointed only with respect fraudulent or mass mismanagement cases.

            Advantages of Chapter 13

            • Unlike Chapter 11, the tenure of repayment is limited to 5 years under Chapter 13. If the secured debts and disposable income fail to meet during the 5 years, a small business might have to lose some of its assets during the course Chapter 13 bankruptcy.
            • The liability to turnover disposable income irrespective of the payment plan obligations, lower debt release percentages and compulsory appointment of a bankruptcy trustee are some disadvantages of Chapter 13. However, in spite of all these, the Chapter 13 bankruptcy Los Angeles process tends to be quicker and cheaper compared to Chapter
            • The making and approval of payment plan is a lot of quicker compared to Chapter 11

            To know more about eligibility, possibilities and best roundabouts for your small business organization, reach out to some of the vastly skilled and experienced attorneys@ 888-297-6203.


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

              *Do you own a home?

              Are you currently working?

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

            • Bankruptcy and Business Continuity

              Bankruptcy and Business Continuity

              The common illusion about bankruptcy is that a business might have to wrap up after bankruptcy or business will not be able to continue after bankruptcy. However, this might not be true in most scenarios. There are different sections under which bankruptcy could be filed, these maybe Chapter 7 or 11 or 13. The company structure, business activity, assets and the fixed or probable income available to fund a repayment schedule can help in determining the right section to file bankruptcy.

              Factors of consideration for business continuity

              • Is the business really making money?

              Not every startup idea is a great venture, if your business is resulting in losses for a consistent period of time, you might want to reconsider if winding up is a better option. If nothing is going as per planned and this is for a longer period than you predicted, then it is time to wrap up the business. However, if the business did yield significant profits previously and this is just a bad phase due to temporary internal or external factors, it is worthwhile to consider letting the business flow until the external or internal factors are resolved.

              • Assets and liabilities balance

              The balance between assets and liabilities determines the sustainability of a business in the long run. If your calculation of assets is larger than liabilities, then it can be interpreted as a bad phase in business and removing the plug might not be the right option. On the other hand, if the liabilities exceed considerably over the assets, it is time to pull the plug. Instead of retaining such a business one can prefer starting a new one altogether, as growing liabilities, only create a bigger pothole that keeps sucking all potential assets and growth opportunities.

              • Personal liability for business debts?

              Personal liability on business debts can be a case with proprietary businesses or partnerships. The lenders might have access to personal assets for business debts. If there is potential to revive the business without seeking additional debts and buying time from lenders, that is the best option. However, if that seems to be difficult and if you already have your back to the wall, bankruptcy and business wrap up could be the only choice available.

              Chapters under which business bankruptcy can be filed-

              • Chapter 7

              Chapter 7 bankruptcy Los Angeles is usually used by proper companies and businesses who are looking to wind up their business. There usually isn’t any exemption to prevent sale or liquidation of any company asset during business bankruptcy under Chapter 7 and hence, all the assets are usually liquidated for an equal share amongst the lenders. In a straightforward liquidation case, with minimum argument or dispute regarding creditor’s share, the liquidation can be settled outside court as it saves a lot of effort, cost and time.

              However, in the case of complex debt arrangements and lender disputes, there is no choice but to opt for a legal procedure. This chapter is certainly not recommended for partnership or sole proprietors as their personal properties to the extent of secured debts could be attached for repayment. This can be prevented by the use of other chapters.

              • Chapter 13

              Chapter 13 is only for individuals so only sole proprietors qualify for this chapter. The process of qualifying for Chapter 13 or Chapter 7 also for that matter becomes a lot easier with business debts. This is the best alternative for the sole proprietors who wish to keep their business running and do not want to give up on any business or personal assets. By filing affordable Chapter 13 bankruptcy Los Angeles, you might discharge part of your unsecured debts and also maintain your business assets. As per stats, sole proprietors filing Chapter 13 may end up losing some of their business assets as they are short on cash and it isn’t the most feasible thing to carry around so much debt for 4-5 years of the repayment plan. That is another thought to be considered when filing for Chapter 13 as not all of your assets will be safe.

              • Chapter 11

              The partnerships, Limited Liability Corporations, general Corporations, etc., usually opt for Chapter 11 bankruptcy. The concept of Chapter 11 is based on Chapter 13. It emphasizes on a restructuring of debt with a feasible repayment plan that helps in business continuity. Being based on Chapter 13, Chapter 11 is not that straightforward as Chapter 13. It can get complicated and it is strictly recommended for use of an attorney specifically for Chapter 11. The prospective payment plan has to be feasible, practical and needs to be approved by all creditors on board. Apart from the complicated procedure, the overall expense is a lot higher and not recommended for small businesses. Reach out to 888-297-6203 for more intriguing facts and options in business bankruptcy.


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

                *Do you own a home?

                Are you currently working?

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

              • What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?

                What to Do with Your Checking Account in Case of a Chapter 7 Bankruptcy Filing?

                When you file for bankruptcy all your assets are divided into the exempt and non-exempt property. While you can keep your exempt property, the non-exempt property is used to pay back your creditors. In the case of Chapter 7 bankruptcy, the trustee liquidates your non-exempt property to repay unsecured debts. In Chapter 13 bankruptcy, you can keep non-exempt property too, but you need to pay an equivalent amount to your unsecured creditors. According to Los Angeles based bankruptcy law firm https://bankruptcy.staging.recoverylawgroup.com/, funds in your checking account can be used to repay your creditors, or kept by the bank if you owe money to them (via credit cards) or can be exempted.

                While filing for bankruptcy you are expected to disclose all your assets and income including your checking account balance. In case you fail to do so, and the trustee finds out about it, it will be difficult to protect any money in the account. You could also be accused of fraud. However, there is a possibility that you could protect your checking account using the exemptions provided by the state. Every state and the federal government provide bankruptcy filers with several exemptions to protect their equity in various assets. You could choose from either set of exemptions. You need to specify which property you wish to exempt during the bankruptcy proceedings. For further details regarding the procedure, call 888-297-6023 to speak with expert bankruptcy lawyers Los Angeles.

                Can checking account funds be exempted?

                If you can get an exemption on your checking account, you will be able to protect that money from being handed over to your creditors by the bankruptcy trustee. However, most states don’t offer an exemption for checking accounts or cash. Those that offer have very less limit. You could, however, use other exemption to protect this fund, like:

                • personal property up to a certain dollar amount;
                • cash on hand up to a certain dollar amount;
                • Social Security and other federal benefits;
                • your wages;
                • pension and retirement funds;
                • personal injury awards;
                • child or spousal support;
                • tenancy;
                • wildcard exemption up to a certain dollar amount.

                What if the checking accounts are partially exempted or worse, not exempted?

                If the account funds are non-exempt or partially exempt when you file for bankruptcy, you will not be able to keep that money. Any non-exempt property is handed over to the bankruptcy trustee and used to pay your creditors. However, there are certain things you need to remember while dealing with checking accounts during bankruptcy.

                1. Your accounts freeze. Banks freeze your accounts when they become aware of your bankruptcy. This is done to protect your creditors. You or your attorney could ask for a release of the freeze and the needful is done if the trustee agrees that you are entitled to the checking account funds.
                2. Clear checks before filing for bankruptcy. If your checking account balance exceeds exempted amount (cheques didn’t clear) when you file for bankruptcy, the account could be freeze and funds regarded as non-exempt property. It is important to ensure that your cheques have cleared before you file for bankruptcy to avoid this situation.
                3. Business bankruptcy. The trustee can call banks directly in this case, unlike an individual bankruptcy as in the latter case you just must pay an amount equivalent to non-exempt funds in an account.
                4. Owing money to the bank. If you have a credit card and checking account of the same bank, your bank can use the money in the account to settle the credit card debt in case of Chapter 7 bankruptcy Los Angeles.


                  *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.

                • Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

                  Chapter 7 or Chapter 13? Which is Better if Wish to Keep Your Home?

                  Chapter 7 and Chapter 13 are the preferred routes taken by individuals filing for bankruptcy. Each has specific requirements that you must meet if you wish to get your debts discharged. According to Los Angeles based bankruptcy law firm Recovery Law Group , you need to be current on your payments and protect all home equity through bankruptcy exemptions in the case of Chapter 7. While in Chapter 13, you get a chance to catch up on missed mortgage payments through arrearage in the repayment plan.

                  Both state and federal government offer exemptions to protect your equity in the property when you file for bankruptcy. You might be able to choose between either of those options or make the best of the state exemptions. Before filing for bankruptcy, it is important to consult expert lawyers to know which chapter of bankruptcy will result in saving more property. Call 888-297-6023 to clear your doubts regarding exempt property and bankruptcy. The exemptions vary from state to state. In the case of chapter 7 bankruptcy, any non-exempt property will be sold, and the proceeds distributed among your creditors by the bankruptcy trustee. Chapter 13 bankruptcy allows you to keep your non-exempt property if you pay your creditors an amount equal to the amount of non-exempt property you are keeping. This proves to be costly and will not be approved unless you can show you have enough disposable income to repair creditors.

                  Chapter 7 Bankruptcy

                  Chapter 7 bankruptcy allows you to get rid of unsecured debts relatively quickly. In most cases, people can protect their exempt property and have to let go home a small amount of non-exempt property. You can keep your home in this case of bankruptcy if:

                  • you are current on your mortgage payments;
                  • bankruptcy exemption protects your entire home equity;
                  • you can afford to make payments on the loan in the future

                  However, this chapter does not allow you to catch up on past due payments. In case you have a lot of equity in the house, it is difficult to protect it from being sold by the bankruptcy trustee to repay your creditors.

                  Chapter 13 Bankruptcy

                  This is a better option if you wish to keep your home when you have a lot of equity and have previous due payments to catch up on. Incidentally, it also helps in getting rid of second or third mortgages. This involves a repayment plan through which you can pay back your creditors over 3 to 5 years’ time frame. You could also ensure that a separate debt is added to the repayment plan which addresses your mortgage arrearage. You need to show that you have enough income to make regular mortgage payments along with your plan payments during bankruptcy.

                  Chapter 13 also prevents creditor to take any foreclosure action on the mortgage as long as you are making regular payments as per your repayment plan. Lien stripping helps you get rid of any junior lien on your home in case of Chapter 13 bankruptcy Los Angeles. This takes place only in case the property is now worth less than the balance of the primary loan. evidence pertaining to this if submitted bankruptcy court might make any junior lien void. Any debt owed to that creditor is treated as unsecured debt and is wiped out along with other similar debts at the end of your bankruptcy case.


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

                    *Do you own a home?

                    Are you currently working?

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

                  • What happens to Your Vehicle in Chapter 13 Bankruptcy?

                    What happens to Your Vehicle in Chapter 13 Bankruptcy?

                    Chapter 13 bankruptcy allows you to catch up on previous dues and make arrangements to clear your secured, priority and unsecured debts through a repayment plan. Unlike Chapter 7, you can keep all your property in Chapter 13 bankruptcy if you pay your unsecured creditors the amount of non-exempt property you are keeping. This chapter of bankruptcy, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, can help you catch up on mortgage and car loan payments and also help in reducing the amount owed in the latter case.

                    Sometimes, even Chapter 13 bankruptcy might not help you with keeping your vehicle; and it might be wise to let go, especially if the non-exempt equity in the car is too much. The bankruptcy exemptions allow you a certain amount of equity in a vehicle. In case you have two vehicles or have a vehicle with exceptionally high car payments (luxury vehicle), then keeping it during bankruptcy would be foolhardy. If you wish to know more about keeping your vehicle during bankruptcy, you can consult with expert bankruptcy lawyers at 888-297-6023.

                    Can Chapter 13 bankruptcy help with your vehicle?

                    Chapter 13 helps bankruptcy filers who wish to keep their property, the primary benefit is automatic stay which prevents repossession of the vehicle in case you have fallen behind on payments. When you file for bankruptcy, the automatic stay provision stops all collection actions including foreclosure and repossession. What’s more, if a lender has already repossessed your vehicle, you might get it back if you file for bankruptcy!

                    Chapter 13 also offers you a chance to catch up on previous payments. You can be in the good books of the creditor if you pay for the arrearage (the amount you are behind on car loan) along with regular car loan payments through the Chapter 13 repayment plan. If you continue making these payments during the course of your bankruptcy chapter, the lender cannot repossess your car.

                    You might even reduce your car loan by cramdown. This facility is available for vehicles purchased 2.5 years prior to a bankruptcy filing. If the value of the vehicle is less than the amount due, you might be able to get the loan amount reduced in the case of Chapter 13 bankruptcy Los Angeles. Any remaining amount is treated as an unsecured debt; paid using your disposable income (the amount left after taking care of your monthly expenses and paying secured and priority debt). Unsecured debts are discharged at the end of the repayment plan.

                    What to do if you wish to keep your vehicle?

                    Chapter 13 allows you to keep the non-exempt property as long as your creditors are getting adequately compensated through the repayment plan. Apart from your monthly expenses including any mortgage or car loan payments, the disposable income will be used to pay off the creditors of your unsecured debts through a 3 to a 5-year repayment plan. This shall include the value of the non-exempt property which you intend to keep. Any creditor who thinks they are not getting their due can file an objection to the plan, which may derail the entire bankruptcy process.

                    Keeping a car which, you cannot afford is being foolish and stubborn. Chapter 13 lets you surrender any vehicle on which you cannot make timely payments and that will require huge loads of money for repair. You will reduce the debt burden by letting go of such a vehicle. The court also does not look kindly to people using funds in a misappropriate manner, paying for excessively high car payments instead of paying the creditors’ their dues.


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                      *Do you own a home?

                      Are you currently working?

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                    • FAQs Related to Chapter 7 Bankruptcy

                      FAQs Related to Chapter 7 Bankruptcy

                      Bankruptcy can be quite confusing. Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, confirm that there are numerous questions that people have regarding bankruptcy process and discharge. You can ask expert bankruptcy lawyers at 888-297-6023 about issues related to various bankruptcy chapters. Here are some FAQs related to Chapter 7.

                      What is Chapter 7 bankruptcy?

                      Also known as “Liquidation Bankruptcy”, Chapter 7 bankruptcy is an ideal way to get a fresh start as it wipes off most types of debts. In this case, any non-exempt property that you have is liquidated by the bankruptcy trustee and the proceeds are used to pay your creditors. In most cases of Chapter 7 bankruptcy, the filers have very little non-exempt property, hence they end up keeping nearly all of it.

                      Is it true that now it is harder to qualify for Chapter 7 bankruptcy?

                      The bankruptcy laws were revamped by the Congress in 2005 which resulted in stricter norms for potential Chapter 7 bankruptcy filers. Earlier a Chapter 7 bankruptcy case was dismissed by the bankruptcy judge if the debtor had enough disposable income for a repayment plan as per Chapter 13. Now, specific criteria are used to determine if a debtor can afford a Chapter 13 repayment plan.
                      For an individual to qualify for Chapter 7 bankruptcy they must be able to pass the means test. In this case, the debtor’s income is compared to the median income of the state for a household of a similar number of individuals. If debtor’s income is less than the median income, he/she qualifies for Chapter 7 bankruptcy. In case the income is above the state median, an account of the expenses and debt payments is seen to assess whether a repayment plan can be devised for Chapter 13 bankruptcy or not.

                      Are all unsecured debts wiped off in Chapter 7 bankruptcy?

                      Unsecured debts comprise of those debts which do not have any collateral attached with them, such as medical bills, credit card bills, personal loans, etc. Most unsecured debts are wiped out in Chapter7 bankruptcy. However, some unsecured debts like student loans, child and spousal support, tax debts due within previous 3 years, recent debt for any luxury items, and any debts arising due to fraud (writing a bad check, lying on credit application) are considered non-dischargeable. These debts remain even after bankruptcy.

                      Can I keep my home in Chapter 7 bankruptcy if I am current on my mortgage?

                      State and federal government provide exemptions for bankruptcy filers to protect some equity in the property. This allows them to get a fresh start. The homestead equity which allows exemption on equity on home to bankruptcy filers varies from state to state. If the homestead exemption covers all the equity in your home, you can keep your home in a Chapter 7 bankruptcy Los Angeles. However, you need to stay current on your mortgages to ensure your home remains with you.

                      If I don’t own a home, do I have to give up other property while filing for Chapter 7 bankruptcy?

                      Bankruptcy laws allow debtors to keep some amount of property, known as exempt property. This includes some equity in home, vehicle (up to a fixed value), clothing, furnishings, household appliances, personal effects, retirement funds, pensions, tools of the trade, etc. Many times, debtors end up keeping nearly all of their property when they file for bankruptcy.


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

                        *Do you own a home?

                        Are you currently working?

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