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  • Can a Discharged Chapter 7 Bankruptcy Affect Your Credit Score?

    Can a Discharged Chapter 7 Bankruptcy Affect Your Credit Score?

    Call: 888-297-6203

    Bankruptcy becomes public record and finds mention on your credit report, even after the discharge. In case of a Chapter 7 bankruptcy, since no loans are paid back, it is mentioned on your credit report for a duration of 10 years from the date of the bankruptcy filing. According to Dallas based bankruptcy law firm Recovery Law Group, when the bankruptcy filing is discharged, the credit report should be updated to show the status. This discharge status should be extended to include all accounts included in bankruptcy. The update should also be done by the lenders to show that zero balance is owed by the debtor.

    People who file for bankruptcy should request for a free credit report a couple of months after their bankruptcy discharge to ensure that the same is reflected on all accounts included in bankruptcy. Though you are no longer responsible for paying debts already discharged, yet their mention on your credit report despite being discharged adversely affects your credit ratings.

    The duration for which accounts remain on your account depends on the delinquency date of those accounts. Generally, the accounts are removed seven years from the original delinquency date irrespective of being included in bankruptcy. In case they were current prior to the bankruptcy filing, they will remain for seven years from the date of the bankruptcy filing.

    To get over bankruptcy, you need to start making amends. Re-establishing credit can take time, but with steady efforts, the effect of delinquent accounts and other bankruptcy notations gets reduced. After a fixed duration, the accounts included in the bankruptcy as well as your bankruptcy will be removed from your credit report. To know more about your options in case of financial distress, call 888-297-6023 to schedule an appointment with bankruptcy lawyers.


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

      *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.

    • Everything You Wanted to Know About Bankruptcy Discharge

      Everything You Wanted to Know About Bankruptcy Discharge

      Call: 888-297-6203

      People reeling under the effects of debts often consider filing for bankruptcy. Despite the ill effects of denting your credit history, there are numerous benefits associated with bankruptcy, like, the automatic stay and discharging of debts. A bankruptcy discharge releases you from paying back certain debts after you file for bankruptcy. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, the legal order also prevents creditors from taking any action to collect the outstanding debts which have been discharged by the court. You can live a threat-free life after getting a bankruptcy discharge. The discharge occurs at different times depending on the chapter of bankruptcy.

      Individuals can file for bankruptcy under either Chapter 7 or Chapter 13. In the case of Chapter 13, a repayment plan is involved, through which the debtor pays back certain debts. The duration of this plan is generally 3-5 years and bankruptcy discharge is given after completion of this plan. In Chapter 7, since no repayment of loans is involved, the discharge is given within 4-6 months of the filing of the bankruptcy petition. This timeframe can change if any objections are raised by creditors. However, it is important to know that all debts cannot be discharged in bankruptcy. Certain debts survive bankruptcy and depending on the chapter you have filed under; you will have to pay for them.

      Debts discharged during bankruptcy

      Once you qualify for a chapter of bankruptcy, certain debts can be discharged, provided you are eligible for them. These include:

      • Medical bills
      • Credit card debt
      • Utility bill debt
      • Personal loans from family or friends
      • Business debt
      • Contractual debts
      • Unsecured debts
      • Judgments
      • Attorney fees
      • Missed rent payments
      • Some tax debts
      • Civil court judgments
      • Debts due to your malicious injury of a person/thing

      Debts which survive bankruptcy

      Certain debts, however, cannot be discharged. These depend on the chapter of bankruptcy you have filed under.

      Chapter 7 bankruptcy

      • Student loan
      • Criminal fines
      • Court fees
      • Car loans
      • Child support and alimony
      • Debts secured by a lien
      • Debts resulting from malicious injury to another person or thing
      • Debts due to DUI resulting in death or personal injury
      • Mortgages

      Chapter 13 bankruptcy

      • Child support and alimony
      • Mortgages
      • Student loan
      • Some tax debts
      • Criminal fines
      • Debts due to personal injury or death caused due to driving under the influence

      Certain debts can be discharged, provided a creditor does not file a motion against them, resulting in them being declared non-dischargeable. These include civil court judgments and debts which were a result of fraud.

      Life after bankruptcy discharge

      Official copies of the discharge are sent by the court clerk to all creditors named and listed during bankruptcy proceedings. Apart from this, copies are also sent to the bankruptcy trustee and their lawyer as well as debtor and their lawyer. Bankruptcy discharge notice prevents creditors from pursuing any collection action for debts discharged. Any attempt to contact you to collect payment can result in action against creditors. However, creditors with a loan secured by a lien can repossess the property even after discharge if you do not make regular payments. Consulting a lawyer, in this case, might be essential. You can call 888-297-6023 to consult with experienced bankruptcy lawyers.

      Once you get your bankruptcy discharge, it appears on your credit report and remains on it for a duration of 7-10 years depending on the chapter of bankruptcy you filed. While Chapter 7 bankruptcy remains for ten years, Chapter 13 for seven years from the date of filing. This has a negative effect on your credit score and hampers your chances of getting credit. The accounts discharged as a result of bankruptcy should show that status on your credit report. In case it is not so, you can get it updated through credit bureaus by providing them with the “schedule” document from bankruptcy records.


        *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 Difficult is it to Get Credit After Bankruptcy?

        How Difficult is it to Get Credit After Bankruptcy?

        Call: 888-297-6203

        Though bankruptcy can help you get rid of your debts, getting credit after bankruptcy discharge is easier said than done. Fresh out of bankruptcy, people find it difficult to get a creditor to approve their loan petition. This is because bankruptcy stays on your credit report for a long duration. Chapter 7 bankruptcy stays for 10 years since no debt payment is made in this case. In the case of Chapter 13 bankruptcy, since some portion of debts are paid, this bankruptcy remains on your credit report for seven years.

        Los Angeles based bankruptcy law firm Recovery Law Group says that the negative effect of bankruptcy can last for some time after getting a discharge. This is because the creditors do not receive any money that was owed to them. With bankruptcy on your credit report, prospective creditors are warned of the risk associated with lending money to a person who is fresh out of bankruptcy. Such people find it difficult to get credit at reasonable rates and end up getting high-interest rates credit cards, especially just after a bankruptcy discharge.

        Rebuilding credit is possible!

        The primary step is to check whether, after bankruptcy, your credit score is reported correctly on your credit report. Once you are aware of your credit score, you can start making efforts to rebuild your credit. Primary steps involve paying bills on time and getting under as little debt as possible. Other possibilities include:

        • Secured credit card

        This is one of the best ways to rebuild credit. These cards require a security deposit for account opening. This amount decides the credit limit. Making monthly payments on this card and living within means help you improve credit score. The card has a lower interest rate than normal unsecured credit cards. However, if you don’t pay the amount due, interest is added.

        • Become an authorized user with someone else’s card

        You could ask a friend or relative with excellent credit to make you an authorized user on their credit card. This will slowly help build your credit score since the primary account holder pays bills on time. In case the primary cardholder also has a large amount of debt or is behind his payments, this could affect your score negatively. Thus, you should choose the primary user carefully.

        • Credit-builder loan

        These are small personal loans which are aimed to provide people out of bankruptcy with financial assistance to improve their credit. On-time payments on such loans are reported to major credit building agencies which improve your credit rating.

        Bankruptcy is a major decision which should not be taken lightly. For knowing more about bankruptcy proceedings and its effect on your credit score, call 888-297-6023 to speak with experienced lawyers.


          *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.

        • Know the Difference Between Chapter 7 and Chapter 13 Bankruptcy

          Know the Difference Between Chapter 7 and Chapter 13 Bankruptcy

          Call: 888-297-6203

          Individual debtors can file for bankruptcy under Chapter 13 or Chapter 7. In the case of chapter 13, you are required to repay some part of your loan over a period of 3 to 5 years through a court-approved plan. Since some portion of the debt is paid, lawyers of Los Angeles based bankruptcy law firm Recovery Law Group inform that the credit report shows this bankruptcy for only seven years.

          On the other hand, under Chapter 7, you don’t repay any debt and thus, the bankruptcy remains on the public record and your credit report for 10 years from the date of filing. Bankruptcy can have a negative effect on your credit report as well as credit history. To help get back on track, you need to take of professional assistance from credit counselors as well as experienced lawyers. It is important to keep paying monthly bills on time to ensure that your credit history improves steadily.

          Just as Rome was not built in a day, rebuilding your credit will also take time. Managing your finances, making payments on time and staying away from unnecessary expenditure will yield positive results in the long run. To consult expert attorneys, you can contact 888-297-6023.


            *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.

          • All You Need to Know About Chapter 7 Bankruptcy

            All You Need to Know About Chapter 7 Bankruptcy

            Call: 888-297-6203

            People with limited income who have accumulated a huge amount of credit card and personal loan debt have the option of filing for bankruptcy under Chapter 7. Dallas based bankruptcy law firm Recovery Law Group lawyers elaborate that in this liquidation bankruptcy, your non-exempt property is sold off to repay your debts. In case you wish to protect your assets, Chapter 13 bankruptcy is a better option. This type of bankruptcy is known as a reorganization plan, where, in a court-approved repayment plan is used to pay off your debts over 3-5 years’ timeframe.

            What effect does Chapter 7 bankruptcy have on your life?

            Filing for bankruptcy has an adverse effect on your credit score. Bankruptcy stays on your credit report for 7 years in the case of Chapter 13 and 10 years in the case of Chapter 7. However, over time, this negative effect decreases, and your credit score improves. The various concerns people have while filing for bankruptcy include:

            • Can you lose home and your possessions on filing for Chapter 7 bankruptcy?

            The federal and state exemptions allow you to keep your property up to a fixed dollar limit. In case you have property exceeding your exemptions, the non-exempt property is sold off to pay your debts.

            • What property can be kept during a Chapter 7 bankruptcy filing?

            Exempted property limit is capped. Bankruptcy filer can choose between state and federal exemptions (if it is allowed in their state). The various federal property exemptions include –

            • Homestead: $23,675 of equity can be retained in-home, burial plots or mobile homes. You can use this entire amount to protect your home or use up to $11,850 for any other property.
            • If your home equity is less than $23,675, your home might not be sold off, though a lender may foreclose if you are behind mortgage payments. If your equity is more than $23,675; the house is sold, you receive the exempted amount and the remaining amount is used to pay off debts.
            • Motor vehicle: up to $3,775.
            • Personal property: $600 per item (books, pets, musical instruments, appliances, ) with total exemption up to $12,625.
            • Health aids: completely exempted.
            • Retirement accounts: entire savings of 401(k) or 403(b) and IRA savings up to $1,283,025.
            • Jewelry: up to $1,600.

            Married couples can double the exempted amount by filing bankruptcy together.

            • Who can qualify for Chapter 7?

            A person can file for Chapter 7 bankruptcy if their income is less than the state median for household of a similar number of members. If your income is more than the state median, you need to pass the means test. In this case, your disposable income is calculated, deducting all necessary expenses (food, household needs etc.) from your income. If this amount after multiplying by 60 is less than $7,700 then you can file for Chapter 7 bankruptcy. If this amount is between $7,700 and $12,850, then your ability to pay at least 25% of your unsecured debts is assessed. If you have enough disposable income to pay for 1/4thof your unsecured debts, you are eligible for Chapter 7 bankruptcy.

            • What happens if you fail the means test?

            People whose income is more than the state median are required to take the means test. If their disposable is above $12,850, they are not eligible for this chapter of bankruptcy and need to file for Chapter 13.

            • Is Chapter 7 better than Chapter 13?

            Chapter 7 bankruptcy is ideal for those who have limited income add want to get rid of debts. In the case of chapter 7, equity in the non-exempt property is sold off to repay your creditors. On the other hand, people who have huge amounts of debts and wish to protect their property should file for Chapter 13 bankruptcy.

            • Which debts are eliminated on filing for Chapter 7 bankruptcy?

            Secured debts such as those protected by assets like a car or home cannot be discharged in bankruptcy. Additionally, certain debts like a student loan, alimony, child support, tax debts, etc. are also not eliminated after bankruptcy. However, unsecured debts like credit card bills, personal loan, medical debt are discharged, within 4 to 6 months in the case of Chapter 7 bankruptcy.

            If you are facing financial issues and struggling to make ends meet, it is important to consult experts. You can contact experienced bankruptcy lawyers at 888-297-6023 to discuss your case and eventually file for bankruptcy. They will guide you through the procedure of filing for Chapter 7 bankruptcy, provide you qualify for it. Filing for bankruptcy under Chapter 7 costs $335 which can be paid in 4 monthly installments (after seeking permission) or the fee waived off depending on circumstances.


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

              *Do you own a home?

              Are you currently working?

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

            • Do You Know How Long Bankruptcy Stays on Your Credit Report?

              Do You Know How Long Bankruptcy Stays on Your Credit Report?

              Call: 888-297-6203

              Struggling to manage your finances is more common than you think. When people have a huge amount of debts like credit card bills, student loan, etc. filing for bankruptcy might be an excellent way to get rid of them. However, there are consequences to this act warn Dallas based bankruptcy law firm Recovery Law Group lawyers. Bankruptcy can negatively affect your credit rating. Depending on which chapter of bankruptcy you file, it could remain on your credit report for as long as 10 years. However, people without any other option might end up filing for bankruptcy.

              Prior to the bankruptcy filing, it is advisable to seek expert opinions, such as that of a non-profit credit counselor or an experienced bankruptcy attorney. This will help them get knowledge about other viable options like debt management, debt settlement, etc. In case filing for bankruptcy is the best choice, you can consult with expert lawyers at 888-297-6023 to find out which chapter of bankruptcy would suit you best.

              Which chapter of bankruptcy should you choose?

              If bankruptcy is the best way to get rid of your debts, you need to decide between Chapter 7 and Chapter 13. Filing for bankruptcy requires an assessment of your income, assets, as well as your debts. Changes in laws being made in 2005, it is not easy to get rid of debts through bankruptcy. Certain debts like a student loan, income tax, alimony and child support or other government fines cannot be discharged through bankruptcy. Individuals who have an income less than the state median for an equal number of household members are eligible to file under Chapter 7. For others who fail to qualify the means test, Chapter 13 bankruptcy is the best bet to get rid of debts. Both chapters affect people differently.

              Chapter 7: In this type of bankruptcy, all unsecured nonpriority debts are discharged without paying anything back. Since no debts are repaid, this bankruptcy remains on your credit report for a period of 10 years.

              Chapter 13: In this case, the debtor pays some portion of their debt through a court-approved plan over a previously agreed timeframe. Any remaining unsecured nonpriority debt is discharged after that duration. Since some part of the debt is paid, this chapter of bankruptcy remains on your credit report for 7 years only.

              The credit agency automatically removes the bankruptcy from the credit report after seven or ten years depending on which chapter of bankruptcy it was filed under. Most people who file for bankruptcy have delinquent accounts. These accounts are also deleted seven years from the date they became delinquent. Since in most cases, the accounts became delinquent prior to the bankruptcy filing, they will be deleted prior to the bankruptcy public record.

              Effect of bankruptcy on your credit

              Bankruptcy filing makes you a high-risk candidate for lending. Thus, you will either not get a loan, or get one at a higher interest rate. It may also hamper your chances of getting a decent job. Thus, it is important to make immediate efforts to rebuild your credit to increase your credit score. This can be done by paying bills on time every month, not taking out unnecessary debt and living strictly as per a designed budget. With better credit score, soon, you will be able to get a loan at lower interest.


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

                *Do you own a home?

                Are you currently working?

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

              • What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

                What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

                The two most common chapters under which bankruptcy is filed are Chapter 7 and Chapter 13. Chapter 7 is known as liquidation bankruptcy where non exempted assets are liquidated or sold off to pay your creditors. This chapter of bankruptcy typically results in discharge within 3 months of filing without making any further payments. While in Chapter 13 bankruptcy case, a court approved repayment plan is devised to clear your debts with the creditors. According to Dallas based bankruptcy law firm Recovery Law Group, partial payment based on your disposable income is made to creditors over a period of 3-5 years. Any remaining debts after the duration are discharged.

                Filing for bankruptcy reflects on your credit report. A Chapter 7 bankruptcy Dallas remains on your credit report for 10 years while a Chapter 13 one appears for 7 years from the filing date. This is so because, in the former case, no repayment of debt takes place while in the latter, a certain portion of the debt is paid. If you wish to know more about the details of the workings of either chapter, contact 888-297-6023 and consult with experienced bankruptcy attorneys.


                  *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.

                • Get Your Credit Report Updated to Show Bankruptcy Discharge

                  Get Your Credit Report Updated to Show Bankruptcy Discharge

                  Since bankruptcy filing is public information, people can have access to it. This is a major point of concern for bankruptcy filers as it hampers their chance of getting a loan or even a decent job. Though the information is entered in your credit report, any discharge granted for the bankruptcy should also be mentioned on the credit report. Many times as per the Los Angeles based bankruptcy law firm Recovery Law Group lawyers, the information is not updated on credit reports. This is a cause of worry for people who wish to start their life afresh but can’t. since bankruptcy is quite emotionally draining, people often are confused as to what should be done to get their credit reports updated. Here are some basic facts that can help you sort out things.

                  • Bankruptcy becomes public record and is displayed in the credit report.
                  • All accounts included in the bankruptcy should indicate the status discharged once you have completed your bankruptcy chapter.
                  • You can verify the same by getting a copy of your credit report from the official website.
                  • In case your bankruptcy discharge information is not reflected in your credit report, immediate action must be taken to get the same updated. This can be done by sending a copy of your bankruptcy Schedule A, Schedule D or Schedule F which lists all the debts included in a bankruptcy, a copy of the documentation for proof that bankruptcy has been discharged as well as the statement to update bankruptcy information. The information can be uploaded online or sent via mail at the address mentioned on the credit report.
                  • The courts can also be contacted to verify the bankruptcy discharge.

                  However, it is important to know that the discharge date will not affect when the bankruptcy information is deleted from the credit report. Bankruptcy is mentioned on your credit report for a specified period, which is seven years in the case of Chapter 13 and ten years in case of Chapter 7 bankruptcy Los Angeles. The accounts which were included in bankruptcy are also displayed along with their status. These accounts are deleted 7 years from the original delinquency date, which is generally prior to bankruptcy public records. For further information regarding bankruptcy, you can call at 888-297-6023 to speak with experienced bankruptcy lawyers.


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

                    *Do you own a home?

                    Are you currently working?

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

                  • The Means Test Calculator in Chapter 7 Bankruptcy

                    The Means Test Calculator in Chapter 7 Bankruptcy

                    Chapter 7 or liquidation bankruptcy is preferred by most people since it enables people to get a discharge within a smaller time frame (3-6 months) compared to Chapter 13 bankruptcy (3-5 years). Moreover, with various exemptions available, people are often able to protect almost their entire equity in their assets and get away with paying little towards their debts before getting them discharged. However, the catch is that if you wish to file under Chapter 7 bankruptcy, you need to pass the means test. As per lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, the means test is used to assess your ability to pay back your debts. This considers your income, assets and your debts. If you can pay back your debts, you are not eligible for Chapter 7 bankruptcy and can opt for Chapter 13 bankruptcy.

                    What happens in a means test?

                    Bankruptcy ensures that you do not have to undergo excessive financial strain. At the same time, the government needs to be fair to the creditors too. Thus, if you can pay off your debts (some portion or entire amount), you can opt for Chapter 13 bankruptcy. However, in case you cannot pay any debt, Chapter 7 bankruptcy Los Angeles can help you get out of the tricky financial situation. The means test is used to assess whether you are eligible for Chapter 7 bankruptcy or not. In this case, your past six-month income (before filing for bankruptcy) is compared to the mean income of the state.

                    • In case your income is less than the average income for a household of a similar number of members in your state, then you are eligible for filing Chapter 7 bankruptcy.
                    • If your income is more than the state average, then it is important to determine if you have enough disposable income to repay your debts.

                    If you fall in the former category, you can end up getting a discharge on your debts through Chapter 7 bankruptcy. If, however, your income is above the state median, then calculations are done whether you are eligible for Chapter 13 bankruptcy or need to seek some other option. To file for Chapter 13 bankruptcy, you need to have enough disposable income (income left after excluding expenses necessary for a living) to pay your unsecured debts. In case the disposable income is equal to or more than the state-set amount, you cannot file for Chapter 7 bankruptcy, but have the option of Chapter 13 bankruptcy where a repayment plan for a duration of 3-5 years will be drafted based on your disposable income.

                    Irrespective of your financial situation and your eligibility for different bankruptcy chapters, having an experienced bankruptcy attorney can be an asset. An adept lawyer with experience in handling similar cases can reduce your losses and help you get through with the discharge. In case you are considering bankruptcy as a viable solution to your financial problems, call 888-297-6023 to speak with experienced bankruptcy lawyers.


                      *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.

                    • Is Chapter 7 Bankruptcy Deleted?

                      Is Chapter 7 Bankruptcy Deleted?

                      Filing for bankruptcy can be quite an emotional experience for people. It is difficult to admit that you have been unable to manage your finances in a proper fashion. What is worse is that bankruptcy becomes public record and is reflected on your credit history. This makes it difficult for people to obtain new credit at reasonable rates or even get a job. However, Los Angeles based bankruptcy law firm Recovery Law Group informs that bankruptcy records are deleted ten years from filing date in case of Chapter 7 and seven years from the filing date in case of Chapter 13. This is because usually no debts are paid in case of former, while some portion of the debt is paid through the repayment plan in the latter case. It is important to note that the discharge date won’t have any effect on the deletion or inclusion of accounts in bankruptcy. For any clarity about bankruptcy, you can call 888-297-6023 and consult with experienced attorneys.


                        *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.