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  • Chapter 13 Hardship Discharge

    Chapter 13 Hardship Discharge

    Call: 888-297-6203

    Lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, confirm that any debtor who qualifies for Chapter 13 bankruptcy get numerous benefits including protection from collection actions taken by creditors. While people filing for Chapter 7 often end up losing some of their property in order to get a bankruptcy discharge, Chapter 13 bankruptcy filers can keep the non-exempt property if they pay their creditors a portion of the amount. Sometimes, however, unforeseen circumstances might force debtors to face unexpected financial problems which might make it difficult to make payments as per the court approved repayment plan. In such circumstances, they can seek a hardship discharge.

    Debtors can get relief from some or all their debts under hardship discharge without completing the repayment plan. Though it seems unbelievable, it is true. However, there are stringent measures in place since the court cannot hand out complete discharges without payment. In case a debtor seeks hardship discharge they must:

    • Be unable to make payments as per the repayment plan, without any fault of theirs’.
    • Have made substantial payments to the creditors, more than they might have received in case of a Chapter 7 liquidation bankruptcy.
    • Cannot even afford to complete a modified repayment plan.

    Such relief is available to people who have fallen ill and cannot earn enough to repay their debts. In case you find yourself in a situation where a hardship discharge is your only hope, it is important that you consider all factors before making any decision. Having an experienced bankruptcy attorney can surely be an asset in such a case. In case you need to consult your case with adept lawyers, you can call 888-297-6023.


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

    • The 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.

      • What Options are Available in Case of Business Bankruptcy?

        What Options are Available in Case of Business Bankruptcy?

        In this age where jobs are few and rare, many people turn entrepreneurs. However, starting your business is a risk. People often take loans to finance their dream. Many times, the lines between business finance and personal finance become hazy. In such a case, it is often difficult to separate the two. This becomes an issue if the business takes a downhill turn. According to Dallas based bankruptcy law firm Recovery Law Group, such an issue can be problematic at personal and business levels. Irrespective of the reason for your financial troubles, bankruptcy is always a viable option. Just like personal bankruptcy, business bankruptcy does not mean that everything is lost. You can continue operating throughout the bankruptcy proceedings.

        If you wish to reduce the financial stress on your business and want to move ahead in life, the best logical option is filing for bankruptcy. You can move on to the next better idea once you have gotten rid of unnecessary dues holding you back. Consult with expert bankruptcy lawyers at 888-297-6023 to find out which chapter of bankruptcy would suit your case. Business bankruptcy can be filed under three chapters depending on your unique circumstances.

        • Chapter 7–Corporations, partnerships, LLCs, and sole proprietors have the option of filing for bankruptcy under this chapter. People and business organizations who wish to get rid of their debts can opt to liquidate their non-exempt property to pay their creditors. State and federal exemptions can be used to protect business and personal property during the bankruptcy process.
        • Chapter 11 – This option is available for publicly traded and large-scale business organizations. In this case, banks and creditors prefer to cut the loss as the time taken in the reorganization is too much.
        • Chapter 13 – If you wish to continue operating your business while going through bankruptcy to get debts discharged, this is the best bet. This chapter of bankruptcy allows you to create a payment plan through the court where you can repay your creditors over a period. With Chapter 13 bankruptcy , you can also protect all your assets while getting rid of personal liability entirely.

        Though people can file for bankruptcy without a lawyer, business bankruptcy cases can be quite typical. It is therefore recommended that you choose an experienced bankruptcy attorney to handle your case efficiently.


          *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.

        • Tax Mistakes to Avoid While Filing for Bankruptcy

          Tax Mistakes to Avoid While Filing for Bankruptcy

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

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

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

          However, there are certain tax mistakes you should steer clear of if you are considering filing for bankruptcy.

          1. Take care of any refund

          Refund on taxes that you have received prior to filing for bankruptcy, might be seized by the government. In case you might be on the verge of getting a refund, protecting it through bankruptcy is the best option. Certain expenses like spousal or child payments, health care, etc. are essential debts and can be taken care of by the refund you have received. Consulting with an attorney can clear things up.

          1. Transferring your money to protect it is a no-no

          Under federal law, non-disclosing of monetary assets during bankruptcy is a violation and is considered perjury. If you are looking to avoid prison, don’t try to hide property in someone else’s name. An experienced bankruptcy attorney can help you with ways to protect your saved money during bankruptcy, without breaking any laws. Disclosing your assets to your attorney can easily help save them legally.

          Unlike popular perception that property not under your name cannot be touched by the court, bankruptcy has a weird way of handling things. Any assets transferred to family or friends prior to bankruptcy filing are seen as ways to protect them. This often causes the court to take harsh steps which include voiding the transfer to have the property back in your name or worse, dismissing of your bankruptcy case. In the case of latter happening, you will be required to refile the case which will result in additional fees and letting go of the automatic stay benefit.

          1. Delay paying back relatives

          During bad times, family and friends are often there to lend a helping hand. Often people feel obliged to repay them as soon as possible. However, if you are considering filing for bankruptcy, paying your relatives back might not be the brightest idea. Any payment made from tax refund will appear as one favoring a particular creditor over others. This may result in the bankruptcy trustee taking back the payment made to the relatives. If you wish to make any such payments, consult a bankruptcy attorney before going ahead with it.

          Family and friends are considered “insiders” and any payments made to them 1 year prior to filing for bankruptcy are considered preferential. An amount larger than $600 made to any relative within 1 year prior of bankruptcy filing will become a part of your bankruptcy estate. Any payment made to any creditor of over $600 in the preferential transfer period (1 year for family and relatives and 90 days for non-family creditors) needs to be disclosed.

          1. Do not make payments above $600 to unsecured creditors

          Any payments made within 90 days prior to bankruptcy filing need to be disclosed, especially if they are above $600. The bankruptcy trustee is bound to go through the records to see what payments were made. In case you wish to pay off some debts, prioritization is extremely important. Secured debts like mortgage payments or car payments, etc. should be your priority. Most unsecured debts like credit card and medical debts, etc. are discharged after bankruptcy. It should, therefore, be kept in mind that you shouldn’t pay off secured debts through unsecured debts like a credit card. Before making payments to any creditor, discuss with your attorney to understand the ramifications of your actions.

          1. Avoid buying luxury goods

          Since your spending habits will be studied extensively by the bankruptcy trustee, it makes sense to avoid overspending on unnecessary items like luxury goods, etc. when you are considering bankruptcy as a way out of the financial mess. These purchases and foreign holidays are things which will work against you during the bankruptcy process.

          Holding on to tax refunds during bankruptcy is the best option. Having an experienced bankruptcy attorney by your side can work wonders for you. You can use the tax refund to pay the bankruptcy fees so that you get some respite from adverse creditor actions.


            *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.

          • Effect of Individual Bankruptcy Filing For Married Couples

            Effect of Individual Bankruptcy Filing For Married Couples

            It isn’t uncommon that an individual encounters a bankruptcy condition. But the fact that in a marriage, when one of the individuals goes bankrupt, he/ she is wary of the situation and is perplexed as to the consequences of filing bankruptcy alone. A bank attorney will help you clarify your doubts, especially around the impact of filing bankruptcy on the other partner when one spouse want to file one.

            The Bankruptcy estate – California

            Being a community property state, California’s rules cover the assets that are acquired post marriage as the properties that belong to both the partners, irrespective of the title is done on one of their names. Hence whether the bankruptcy filing is done separately or jointly, the bankruptcy estate will cover all of the aforementioned community property of the married couples. Adhering to the laws of the community state of California, a lot of properties become part of the bankruptcy estate and will be subject to the norms of the bankruptcy law even if you file individually. Hence talk to an experienced bankruptcy attorney who can guide you from understanding the criteria for bankruptcy exemptions and how properties can be saved.

            It is interesting to note that all separate properties belonging to your spouse (probably acquired prior to marriage) will not be a part of the bankruptcy estate. But it is imperative that those assets are mentioned in the documentation while you file for bankruptcy – the objective being that the trustee would certainly want to validate your claim that it is only an individual property and not a community property as per the state law.

            Dischargeable debts – California

            Filing for bankruptcy separately in California can relieve you of separate debts and you can get a discharge of the same. As a partner, you will also be free from the liability of joint debts since you have filed for bankruptcy. The laws of California community state forbid the creditors from pursuing the community property when one of the partners has filed for bankruptcy. The asset may also get discharged. But if the debtor who has originally filed for bankruptcy separates from his partner or dies, then the non-filing partner will lose this benefit in the long run. The creditors in such a scenario may be interested in the community property since the non-filing partner is now liable for the debt.

            Effect of bankruptcy on the non-filing partner

            • There is no effect of bankruptcy on spouse’s credit report when one files for individual bankruptcy and even if there is a community property involved.
            • The income that is generated by both partners will be considered for the calculation of household income. This is the case when the eligibility is determined for Chapter 7 bankruptcy or for calculating the repayment terms for Chapter 13 bankruptcy

            What is advisable in the state of California?

            Considering the state of California, many assess the factors and consider the options of either filing jointly or separately for bankruptcy. Here’s a quick tip for them –

            • There are a lot of exemptions as per the state law if you choose to file a joint bankruptcy. In case you are unable to exempt your assets by filing individually, then it is wise to do a joint petition. An experienced attorney will help you with the exemption options prevalent in Los Angeles, California
            • Community properties are generally excluded from the reach of creditors and hence it may be sufficient if just one of considering filing for bankruptcy if there are community assets involved. By this, you may be able to keep the partner’s credit score unaffected
            • Also, assess several other factors prior to making the decision on an individual or joint filing. Some of them could be below
              1. List of all separate properties that you and your spouse own
              2. The income of both the partners
              3. A credit score of the partners
              4. List of all properties that are designated as community assets
              5. An impending purchase that can get declined if one files for a bankruptcy
              6. Amount of other debts and their types (secured / unsecured)
              7. Any specific issues that a bank attorney may uncover while assessing your case

            Perform a detailed analysis with some experts in this field. Recovery Law Group has a great team of attorneys who will analyze your conditions and recommend on the course of action needed in your bankruptcy situation or of your partner’s. They operate in Los Angeles, California, and Dallas, Texas.


              *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.