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Tag: Filing for bankruptcy

  • Does filing bankruptcy relieve you of debts?

    Does filing bankruptcy relieve you of debts?

    It is probably a myth that many of us have come to believe that bankruptcy relieves one of all debts. Although it may sound attractive about not being obliged about settling your creditors and make a new start with your business, there are some facts to the discharge of debts that one needs to clearly understand about – it may be a surprise that bankruptcy conditions when filed do not eliminate all debts.

    When filing for bankruptcy using Chapter 7 or Chapter 13, the U.S. Bankruptcy code doesn’t enforce you to pay certain outstanding debts. The code was primarily designed for the benefit of honest debtors who struggle with huge debt loads. It benefits them by discharging certain debts at the culmination of a bankruptcy case. Let’s understand further about discharges and what debts can be cleared and what cannot be

    • Non-Dischargeable Debts: There is a category of debts that are directly ineligible for a discharge. Payments ordered by a family court (Alimony/ Child Support), Tax Debts and Secured Debts (involving collateral) fall under this category. In most cases, student loan debts are also non-dischargeable
    • Liens: Though debts associated in a property are discharges, the liens on the property held by a creditor cannot be eliminated. This will end in a condition of repossessing the property by your creditors who have liens
    • Unsecured Debts: These are debts without collateral – commonly includes a credit card debt. In these cases, the creditor cannot take possession of the property if you fail to make any payments
    • Chapter 7 & Chapter 13 bankruptcy debts: These codes allow a discharge of certain debts at the end of the bankruptcy case but the nature of the discharge will differ depending on the code. To cite an example of Chapter 13 personal bankruptcy scenario, the individual will continue to pay the creditors for three to five years using a repayment plan. At the end of the plan, the pending debts are eligible to be discharged. On the other hand, the scenario with Chapter 7 bankruptcy eliminates larger debt loads as the people who file for bankruptcy do not make any payments – they may liquidate their assets to pay their creditors.

    At Recovery Law group, we work with individuals and companies towards the discharge of debts after a case of the bankruptcy filing. The needed guidance and assured steps towards a positive outcome in terms of debts discharge are meted out to our clientele in Dallas and Los Angeles areas.


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    • Bankruptcy & Divorce – Not a wise idea!

      Bankruptcy & Divorce – Not a wise idea!

      It is definitely not a great feeling to go through a personal crisis of bankruptcy and divorce at the same time. There can be a tight interlink between the two, as divorce can lead to a bankruptcy situation as assets may get separated and also if you are turning bankrupt as a married couple, you are definitely turning unhappy with your partner leading to a divorce. Despite this link, it generally isn’t a great and wise idea to file for divorce and bankruptcy at the same time. Let’s learn how!

      • As the court may request financial income information about the partners when filing for bankruptcy, it will be difficult to identify the needed information to be furnished in the court. The same applies to share of financial information to the family court related to your divorce
      • Filing for bankruptcy will halt all legal actions against you and your assets. Hence it will be difficult to divide the properties between the partners and selling of the same will be quite impossible too
      • Declaring all of your assets, debts, income and financial information is a mandatory process to be followed while filing for bankruptcy.
      • If you are struggling in a divorce scenario, it becomes a herculean ordeal to determine who owns what!
      • If you have applied for divorce at the same time as your bankruptcy, the divorce may get delayed in order to see the outcome of the bankruptcy filing case. A longer divorce journey can be emotionally draining for both the partners along with their family

      How can you mitigate the scenario of separation and divorce?

      There are some ways to handle this situation of filing for bankruptcy and also seeking a divorce. Here is one of it –

      • File for a Chapter 7 bankruptcy instead of Chapter 13 as the process is generally quicker with Chapter 7.
      • The ideal time of completion is between four and six months when opted for Chapter 7 and it can take up to five years in the case of Chapter 13 (as this involves a repayment plan).

      Hence you can get over with a Chapter 7 bankruptcy case in about half of a year and then move on to seeking the divorce.

      Some key points to remember

      When dealing with bankruptcy and divorce, here are some key points to remember

      •  Some debts associated with divorce cannot be discharged when you file for bankruptcy. Debts such as alimony, child support and attorney fees for cases related to child custody fall under this category. They continue to remain after your bankruptcy too and the debtor needs to ensure that they are repaid
      • Handling of the bankruptcy cases and divorce case needs to be delegated to different attorneys in order to avoid conflicts of interest.
      • If as a debtor and a married person, you find yourself in a situation of handling bankruptcy and a divorce case, get the expert assistance from law firms such as the Recovery Law Group. They deal with your cases with their skilled experience of handling several clients in the past.


        *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.

      • Smaller Airline Industry Created after Bankruptcy and Job Losses

        Smaller Airline Industry Created after Bankruptcy and Job Losses

        In the past 10 years, the U.S. airline industry has lost a huge amount of revenues, to the tune of tens of billions of dollars and more than 170,000 jobs. All of this can be attributed to lost revenue and bankruptcy filings. The result of this has been downsizing of the industry significantly. Most major airline carriers have seen this doomsday scenario.

        According to Los Angeles based law firm Recovery Law Group, there are numerous examples of the same. The United Airlines underwent bankruptcy through chapter 11 in 2002-2006 had been reduced to half its size than it was in 1999. The airline which employed around 100,000 employees in 1999 cut down and now employs 46,538 people only.

        In 2008, Delta Airlines and Northwest merged after filing through bankruptcy under chapter 11. Just like United Airlines, it also underwent similar job losses. The combined workforce of both companies was 80,000 by the end of 2009 which was a 37% decrease from the number of employees in 1999 before the companies had merged.

        However, the shrinking of companies and their merger due to bankruptcy is not necessarily a bad thing. During boom time, many companies undergo massive expansion which cannot be sustained during periods of recession, which unfortunately are bound to happen. Such fluctuations are pretty common in various industries with airlines particularly vulnerable to them.

        Filing for bankruptcy is one of the best tools to take care of the ever-increasing mountain of debt and unmanageable contracts of workers. Bankruptcy has come to the aid of various major airlines and kept them viable during times of recession. All airline carriers who have filed for bankruptcy under chapter 11 have not only reduced their debts but also their workforce, thereby surviving the recession and remaining viable in the long term.


          *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.

        • Hiding Assets Could Cost You More Than You Intend to Save

          Hiding Assets Could Cost You More Than You Intend to Save

          While filing for bankruptcy, it is mandatory for all filers to disclose their assets in their petition. It is extremely important that bankruptcy filers are truthful in their declaration and do not try to hide their assets. Some people have the opinion that if they hide their assets, those assets will remain secure and would not be taken away by the court during bankruptcy proceedings. However, probably unknown to them, they are committing perjury which is reprimanded by penalties, which in the long run may prove costlier to the filer. (more…)

        • If You Thought Success after Bankruptcy is Not Possible, You Are in For a Surprise!

          If You Thought Success after Bankruptcy is Not Possible, You Are in For a Surprise!

          There are many misconceptions associated with bankruptcy. The most popular one being that successful people or business houses do not file for bankruptcy. Another myth is that once you have filed for bankruptcy, getting out from the ruins and making a name for yourself is impossible. Well, nothing could be farther from the truth. Los Angeles based law firm Recovery Law Group would help break the myths associated with bankruptcy and success. Bankruptcy as a process is designed to help people out of the financial mess and help them start a fresh life.
          There have been many instances where big brands have had to file for bankruptcy when they hit bad times. Despite having hit rough waters, they have been able to resurrect their name after declaring for bankruptcy. Big names like fashion designer Betsey Johnson, airlines like Delta, United, American and Air Canada had also filed for bankruptcy and bounced back to become market leaders, turning an excellent year-end profit. If such big names can get up again after biting the dust, individuals filing for bankruptcy too can start afresh. Anyone can end up facing unexpected debts due to a few miscalculated decisions. Expensive legal tussles, huge medical bills, unemployment or any other unforeseen event can cause financial disturbances in anyone’s life. Filing for bankruptcy can help give you a fresh start, wiping your bad credit and allowing you to move ahead.
          To get a head start on turning back the tide, it is important that you consult with bankruptcy attorneys who will help you to regain financial independence post-bankruptcy. Participate in financial empowering sessions to develop an understanding of how filing for bankruptcy can be used to benefit your or your businesses financial standing. Achieve success after filing for bankruptcy, by making a fresh start.


            *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.