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  • 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.

    • Increase in Bankruptcy Filings Among Retirees

      Increase in Bankruptcy Filings Among Retirees

      It is rather a sad state of affairs that Los Angeles is one of the cities that has an increase in the number of bankruptcy filings from the citizens who are above 55 years of age. This number has only doubled since 1994. Despite the need to rest after years of employment, the country witnesses this stupendous rise of close to twenty percent of the total bankruptcy filings to be of the retirees. But experts say that it isn’t surprising – the failure of the individuals (close to 32%) in setting aside a retirement amount is the major contributing factor.

      The key reasons why seniors file for bankruptcy are medical expenses and credit card bills. Let’s discuss this more:

      Medical Expenses:

      Here’s a fact that may startle you!

      In 2015, the Kaiser Family Foundation uncovered that approximately 1 million people have declared bankruptcy citing the piled up medical bills and expenses. This probably includes the majority of the Americans who have health coverage for the complete year and yet are unable to pay off their medical bills.

      With age, the income sources decline but yet the medical expenses post-retirement will rise exponentially. The Employee Benefit Research Institute did a study in 2015 and the outcome mentions that a married couple would require $392,000 if they are on regular prescription drugs and that they are able to cover 90% of the related expenses post their retirements. Please note that the exorbitant amount is not accounting for long-term health care that is needed in old age. Many believe that Medicare will be their ultimate savior but it is quite unfortunate that there are exclusions in Medicare – eye care, dental care, and long term health care is not covered by Medicare. If you are looking at a semi-private room in a nursing home for long-term treatment, it costs about $225 per day and hence the high medical expenses that are needed to be borne by the individual. Besides, all high deductibles are to be paid by the seniors before the insurance starts for them.

      Credit card Debts:

      High credit card debts are another major reason for the senior folks to file for bankruptcy. Most of the crowd would have accrued larger debts on their credit card prior to their retirement. Now that there is a decline in the income, they struggle and fall back on their payment schedules. Not just this, but there are very minimal savings for the retirement time of the seniors and they don’t do a good job in planning well in advance for the same.

      The new trend, as reported by Demos National Survey on Credit Card Debt, is the increase in the credit card debts among the people of age 50 or more compared to the younger Americans. These seniors also fall under the category of middle-income earners. In other cases, retirees turn afresh toward credit cards when they encounter the income decline – especially for basic expenses involving food and gasoline. Seniors have also been benevolent to their children and grandchildren – pampering them with financial help with their own credit cards. Some seniors resort to paying off the medical bills using credit cards as they fall short of the amount during their illnesses.

      Here are some tips to plan the future that every citizen hopes for – well secured and free of debts. Planning and securing the future will be the best course of action for seniors to adopt.

      Financial Planning

      The advised course of action, especially if retirement is fast approaching, is to plan ahead of what will be needed financially for your future. The medical expenses are to be considered as every person faces unforeseen emergencies even in the best of their health conditions. The expenses for the future may not be predicted when you are living a simple and healthy life currently – life may throw medical emergencies at you as well as other expenses that need immediate attention.

      Whilst you are earning, plan on a budget that includes saving for the phase of retirement. It is wise to keep an emergency fund that will help you manage toward situations of unemployment, health needs, vehicle demands for at least six months. This amount will only increase as we age and plan to double the emergency fund value in a year of saving. Health Savings Account (HSA) is also a recommended idea and they come in handy for those expenses that are generally not covered by Medicare – preventive healthcare like eye exams and dental procedures. The money in the HSA can be withdrawn without any tax.

      Further assistance for Seniors in Debt

      Are you seeking further assistance as a senior citizen and who is challenged by debts in California state? Recovery Law Group can work with you to resolve the issues at hand. Their team of bank attorneys who operate from Los Angeles and also Dallas, Texas are aware of the common problems that seniors and retirees face with debts.

      Here are some tips to aid and direct you better:

      • All high-interest rate debts need to be cleared off on priority
      • A payment plan that is effectively negotiated between hospitals and medical providers can help you clear off all medical debts that you owe. Don’t compromise for a medical credit card as you may incur more debts with it.
      • Be vigilant of your expenses and maintain the same meticulously within budget. There are articles and apps that will help you do the same.
      • If there are piled up credit card bills, check the feasibility of a repayment plan without interest or penalties. This needs to be negotiated with the bank who has issued your credit card.
      • A non-profit credit counselor is someone who can help you with more insights – consult one if possible
      • A reverse mortgage can also be a viable option to consider but it depends on the financial situation that you are in
      • Plan for the worst and plan well ahead

      You can reach out to this team at 888-297-6203 and they are sure to come to your assistance!


        *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.

      • Criminalizing Private Debts

        Criminalizing Private Debts

        There are criminal proceedings on defaulters on the debts that they owe to creditors. Let’s take a scenario where the debtor has fallen sick and has missed out on the payments that he/ she regularly makes. The notices about missed payments have just been ignored since the debtor is away on treatment. The piled up debt now invites court hearings – the intimations of these too have not been attended to and this eventually turns out to issuing of warrants for the arrest of the debtor for the failed payments.

        This is not a surreal scenario and can happen to any of the debtors who fail on his private debts. It is not the question about a debtor’s prison that needs to put you into a tight spot but the private debt collectors who cause enough agony. Whether they are just a few dollars or even larger sum of debts, they use the justice system to prey on the debtors and force them towards paying the debts. A report titled, “A Pound of Flesh: The Criminalization of Private Debt”, claims that one out of three Americans are facing the pressure from collections agencies as their private debts are turned to them. The report has been collated by the American Civil Liberties Union (ACLU). As per the reports, the number of Americans who are arrested and face imprisonment is 77 million people and the majority of them are the black and Latino community folks who battle poverty and wealth issues.

        What leads to the arrest in private debt?

        The debts are criminalized when there is a default in payments and even after issuing of notices to appear in court, the debtor fails to appear. Subsequently, the warrant of arrest is issued by the judge. There have been scenarios that the debtors are not notified of appearances or of the lawsuit.

        The creditors can seek the assistance of collection firms (there are approximately 6,000 of them in the U.S.) for this process of debts collections from the debtors. These debt collectors file lawsuits asking for the repayment. Close to 95% of these cases turn out favorable for the collector as the debtors don’t defend their case, as reported by the ACLU. The debtors report their unavailability due to work, or illness, or childcare, or disability, or lack of transportation, or that they weren’t aware of the lawsuit. The count of issued arrest warrants for unpaid student loans & utility bills is several thousand. Since these warrants are tracked as arrest warrants by the court, the exact number is quite unknown. It might be shocking to know that there have been arrests for amounts as low as $28, and more than half of the U.S. states (including California) witness the scenarios with arrest warrants for private debts.

        Agonized with threatening letters & creditor lawsuits

        The ACLU has reviewed the situation around private debts and concludes that more than 1 million consumers get threatened by their credit via letters demanding the payments. The district attorneys in the U.S. have also allowed the debt collectors from private agencies to utilize their seal and signature on these letters. The repayment demand letters have only confused and agonized these debtors. Several of them are people who have suffered a loss of a job, or a divorce or even the death of a family member. While some battle illness and have medical bills that have piled up causing them debts. Hence they survive on the Social Security and unemployment related insurance. There are retirees with disabilities or on veteran’s benefit.

        ACLU’s recommendations on Debt practices

        The ACLU has concerns over the process of debt collection and calls it abusive considering that it affects human rights and equal protection. The regulations that govern the debt collectors have to be improved a lot.

        ACLU’s report suggests the below recommendations:

        • Judges shouldn’t be issuing the arrest warrants in cases of contempt or failure to appear in court related to debt collections
        • State Legislatures to enact laws that prevent arrest warrants in debt collection lawsuits
        • Forbid the contracting between district attorneys and private debt collection firms
        • State attorneys to oversee the work of a district attorney & their contracts – mainly their involvement in debt collection practices. In lieu of this, they should sue unfair means of debt collection and protect the consumers.

        Recovery Law Group, operating in Los Angeles, California and in Dallas, Texas are in concurrence with the above recommendations and work with consumers who suffer at the hands of collection agencies.

        Assistance to pay off debts

        Debtors do not immediately step up for assistance to pay off their debts. It is several years that they try to tackle the burden and then land themselves in situations of facing threats, arrests and pressurizing phone calls. For some, Chapter 7 or liquidation bankruptcy could be an option and for the other debtors, Chapter 13’s repayment plan can come to their aid. In order that they get ample support, the debtors can dial 888-297-6203 for the expert team of attorneys at Recovery Law Group. Their clientele in Los Angeles and Dallas are numerous and they have proven records of assisting debtors who are amidst financial challenges involving their private debts.


          *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.

        • Rejection of Bankruptcy by the Supreme Court

          Rejection of Bankruptcy by the Supreme Court

          It is interesting to note that one of the appeals related to a Chapter 13 bankruptcy has been rejected by the Supreme Court. This instills a sense of doubt among debtors regarding the case and why the rejection was approved by the court.

          Let’s understand the case in detail:

          The debtor associated with the case had filed for personal bankruptcy under Chapter 13. As per the norms of this Chapter, he had proposed a repayment plan which he eventually modified for several times in a span of two years. The final proposal that the debtor submitted indicated that he should be permitted to pay his mortgage of $387,000 as a secured debt and the rest of his debts that amounted to $101,000 (mostly in liabilities) should be treated as unsecured debts. Through this proposition, the debtor would be paying $5,000 of his liabilities and also get to keep his home over the five-year term of his repayment plan.

          The bankruptcy court of his state rejected this proposal and his plan. The debtor appealed the decision of the bankruptcy court. The Appellate court stood firm mentioning that the lower court’s decision was correct and the debtor proceeded to pursue his appeal to the Supreme Court. The Supreme Court justices rejected the petition stating that the debtor does not have the rights to appeal the decision of bankruptcy court, especially given the case that his plan was originally rejected by the same court. Every court should not have to review the plan individually and the rejection implied that it is an appellate issue.

          Considering the above case, if you are perplexed on how to handle the Chapter 13 bankruptcy, Recovery Law Group can come to your rescue. Their team of bank attorneys will help the debtor to determine the debts to pay, the ones to seek exemption for and also coordinate on the approval of the repayment plan. Call the team at 888-297-6203. They provide services in Los Angeles, California, and Dallas, Texas. Be assured of their guidance as to the debt associated issue resolution and working on a repayment plan for Chapter 13 bankruptcies are their forte!


            *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 Corporate Bankruptcy?

            What is Corporate Bankruptcy?

            The Security and Exchange Commission may emphasize a lot about the principles of Corporate Bankruptcy for the benefit of the people in the states of California and Texas. A company or firm will be out of business completely if it files for Chapter 7 bankruptcy. In this scenario, the investors of this company will also lose their money. The only parties who can get some value could be the people who hold bonds with such companies. But it solely depends on the priority of the corporate companies’ debts and the value of assets that is available for the purpose of liquidation.

            How a company faces the situation of bankruptcy?

            When the company falls into a condition where it is unable to repay its debts, then it files for Chapter 7 bankruptcy. In this condition, the business enters into the condition of liquidating all of its assets in order to pay back the company’s creditors. This action is carried out under the supervision of a bankruptcy trustee who is appointed by the federal court. The cash that is obtained from the liquidating of asset is used to pay the administrative fees and the legal fees in addition to paying the corporation’s creditors. The collateral held by secured creditors are returned to the corporation else, they get grouped along with other unsecured creditors. The amount generated is shared amongst this group.

            If the filing is of Chapter 7 type, the stockholders of the corporation rarely get notified about the bankruptcy filing. This is because the creditors claim in full whatever is their due and there could be nothing left to be divided by the stockholders.

            Recommended Chapter for Corporate Bankruptcy

            Businesses are often looking for options to reorganize their debts and also find themselves in a better financial position of profitability whilst they face a bankruptcy situation. For such corporations, Chapter 11 is recommended. In this type, though the court holds control of major executive decisions for the corporation that has filed bankruptcy, the management of the company will still be able to run their daily business as normal.

            Contacting a legal counsel is the recommended way for businessmen tackling similar scenarios as discussed above. Recovery Law Group, operating in Dallas, Texas and Los Angeles, California, will assist you to explore the viable options in your crisis situations. They work towards the appropriate recommendation for your business and will execute them according to your long term objectives. Call Recovery Law Group at 888-297-6203 to know more about their services!


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

              *Do you own a home?

              Are you currently working?

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

            • Will Filing for Bankruptcy Get Rid of Your Medical Debt?

              Will Filing for Bankruptcy Get Rid of Your Medical Debt?

              Medical debt is one of the most common debt which the American citizens face today. In fact, you will be surprised to know that approximately 72 million Americans are struggling to pay off their medical debt. This actually means, more than 40% of the working citizens are struggling with medical debts today! Of course, there are multiple reasons why people fall in a debt, but surprisingly, medical debts is one of the most common one so far. In fact, as per the statistics and reports, the millennials are the one who are falling under the medical debt faster as compared to the other generations.

              You would know the situation better if you are undergoing the same situation as well. The stress level is quite high and you can think about nothing other than getting relieved from your debt. Each money spend towards buying the medicine ends up increasing your debt. Ultimately, you end up paying only the medical debt interest and not the actual sum of money that you owe.

              So, what do you think you should do in this situation? Should you go for Chapter 7 Bankruptcy? Probably yes, because, filing for Chapter 7 bankruptcy will help you get rid of all the unsecured debts which also includes your medical bills. Also, as there is no limit mentioned for unsecured debts under Chapter 7, it may also be possible that the entire medical debt which is bothering you, will be eliminated in one go.

              As scary as it may be, filing for bankruptcy would always be the better option from spending your entire life in debt. In fact, filing for bankruptcy under chapter 7, gives you major chance that you may get freed from your otherwise never ending debt. Also, if you opt for filing for bankruptcy, there are higher chances that your life will be better along with multiple options that you will get to improve your financial stability along with the future planning.

              Should you use bankruptcy to be rid of medical debt?

              We, at Recovery Law Group, Dallas, will help analyze your cause of worry in detail before rendering any solution. We will help and explain you all the benefits related to filing for bankruptcy under chapter 7 for medical debts and implement all the best legal tools to help you come out of the current situation. At Recovery law group, you will find experience attorneys who have previously dealt with similar cases handling your case. Not only will they give you the best way forward but also guide you with any other alterative available in your case. For further clarification on your case, you can contact the firm at 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.

              • What Effect does California State Court Judgement have on a Debt during Bankruptcy Discharge?

                What Effect does California State Court Judgement have on a Debt during Bankruptcy Discharge?

                Bankruptcy is one of the preferred ways to get your spiraling debts discharged so that you get a clean slate to start your life afresh. Though usually court rulings or judgment are not enough on their own to make a debt not dischargeable, yet sometimes they may make it difficult or impossible in rare cases too. Though a majority of the debts accumulated by a person get discharged during bankruptcy, it is important to note that certain debts cannot be legally written off. Those debts which cannot be discharged are categorized as:

                1. Non-Dischargeable- The creditor doesn’t object to the discharge of these debts. Some examples of these debts include spousal and child support, income tax, criminal fines, and
                2. This category includes debts that are potentially non-dischargeable since the creditor can object to their discharge. Timely objection by the creditor can result in non-discharging of the debts. To interrupt the discharging of these debts, you need to file charges for bad behavior against the debtor. Few examples of such debts include those due to misrepresentation or fraud (bounced cheques) or causing willful injury to a person or property (physical assault)

                How to lay the foundation for non-discharge of debts in bankruptcy?

                It is extremely important for a creditor to prove all required allegations for the establishment of bad behavior to get not dischargeable debts. According to Section 523(a)(2) of Bankruptcy Code, Los Angeles bankruptcy lawyers Recovery Law Group suggests, to prove that a particular debt was obtained by fraud – a creditor needs to attest that the debtor made a demonstration which he/she knew to be false at that particular time; that such demonstration was made with a malicious intent (of deceiving the creditor) and the creditor fell prey to the said demonstration and incurred heavy damage due to the same.

                All of these points need to be proved during the trial in bankruptcy court. However, if the same was previously done in a state court lawsuit, with a judgment obtained against the debtor, the job will be very easy for the creditor. If a state court judgment is entered against the debtor, the chances of getting the debt discharge may diminish.

                Can debts be discharged even after unfavorable judgment?

                Just because a debt has turned into a judgment is no way to guarantee whether they will be discharged or not. If a particular debt can be discharged before the entry of judgment, then it can be done after judgment too. Bankruptcy discharge can be effectively used to not just wipe out the debt but also the judgment. Sometimes a judgment can turn into a lien on your real estate and other properties. When the creditor registers a lien against your home or other property, options are available to get rid of the lien. However, if a judgment has changed into a judgment lien attached to your property, things can get a bit tricky.

                As per Section 524 of Bankruptcy Code, if a creditor does not wish the debtor’s debts to be discharged or the judgment voided, they should timely object to discharging of debts. To object to the debts, the creditor must have timely information of the filing of the bankruptcy case by the debtor and file his concerns within the specific short timeframe. Consult with expert bankruptcy attorneys at 888-297-6023 to send appropriate notice to the creditors and find out the timeframe of creditors deadline in your particular case.

                In case the creditor objects to the debt discharge within the stipulated time frame, the language of the judgment plays an important role. The judgment can simply state the amount of money owed in debt by the debtor or the judgment might specify any fraud, misrepresentation or any wilful and malicious injury actions of the debtor which caused him/ her to incur the debts and subsequent judgment.

                What effect can the language of judgment have?

                Words and language can make a huge difference, especially in legal documents. State court judgment’s specific language is extremely important as the bankruptcy court uses this to decide the bankruptcy discharge. If the language specifies only the fact that debtor owes money to creditors, the debt has a chance of getting discharged during bankruptcy. If however, any fraudulent activity or any type of bad behavior is specified in the state court judgment, this fact is taken into consideration by the bankruptcy court to decide their verdict.

                Res judicata or collateral estoppel is an important and an ancient principle through which courts take each other’s decision into account while giving the verdict. In case one court has reached a verdict, it is accepted by another court, provided a specific number of conditions are met.

                The factor that keeps this time-honored law principle in place is:

                • It protects petitioners from any harassment due to similar repeated litigations.
                • It helps avoid any varying judgments of the same problem with different solutions, as this can imbibe low esteem for the legal system.
                • It also saves time by avoiding repetitive lawsuits.
                • A lot of time as well as resources, both of the court and the filing parties, are saved since a matter previously resolved in courts is not re-tried in another.

                Despite federal courts being superior to state courts, they too generally accept state court judgments, thanks to Article IV, Section 1 clause of the U.S. Constitution’s which states “full faith and credit”. However, there are some cases where federal law overstates the state law; but states have the right to decide when a particular judgment from one court is binding on another. California law specifies which state court judgments will be accepted by bankruptcy courts.

                According to the Supreme Court of California, for a case to be excluded from re-litigation, it must be exactly similar to one decided in previous proceedings. The issue in concern must actually have been tried in a former proceeding. The case must have been certainly decided in the previous proceeding. The decision taken previously must be on merits and final. Lastly, the party against whom prohibition is being asked must be the same as the party in previous proceedings. If the creditor is able to prove that the judgment obtained in a state court satisfies all of the above mentioned five requirements in bankruptcy court, the debts will not be discharged.

                In case the debt is not discharged as the debtor had incurred the same via means of fraud, the creditor needs to prove that the intentions of the debtor were malicious and done with the sole intention of cheating the creditor. If this was the actual issue litigated and decided in state court and a final decision was rendered against the debtor, then the bankruptcy court is bound to agree with the state court’s assessment and decision regarding the fraud element. The principle of collateral estoppel is applied with both discretion and flexibility. As per the U.S. Supreme Court, trial courts including bankruptcy courts should use broad discretion to know when res judicata must be applied.


                  *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.

                • Planning Your Retirement

                  Planning Your Retirement

                  There are some interesting facts to know about us, Americans, from the research of Northwestern Mutual with regards to our readiness to face retirement. Here we go!

                  • There are no retirement savings for one American out of five
                  • One in three Americans have less than $25,000 saved, especially those who are nearing retirement shortly
                  • The percentage of Americans who are somewhat concerned about affording retirement is about 78%

                  These facts reveal the sad state of our fellow citizens who are almost ready to retire and teach us valuable lessons. It also imposes an important question at us. How much should we save so as to live comfortably in our retirement? The solution is definitely going to be different for each of the citizen and will vary widely depending on the state that we live in.

                  But, there are general points of tolerance in this planning needed for retirement and we can assess how we can meet them.

                  State-wise Variations

                  The amount needed for a comfortable living in retirement depends on the state where you intend to live in after you retire. Places like New York and California need more and have high living expenses compared to other regions of the country. Let’s say that you have saved $1 million as your retirement savings, here’s an example to help you understand how long that amount can enable your living in the concerned state. This data has been received by Go Banking Rates and they have collated this information based on the average total expenditures of the American citizens who are 65 years or older. On the gathered data of citizens, The cost of living index has been applied to adjust the differences between each state.

                  Longest lasting of the retirement amount of $1 million in states is as follows:

                  1. Mississippi: 25 years, 11 months, 30 days.
                  1. Oklahoma: 24 years, 8 months, 24 days.
                  1. Michigan: 24 years, 7 months, 14 days.
                  1. Arkansas: 24 years, 7 months, 4 days.
                  1. Alabama: 24 years, 7 months, 4 days.

                  The shortest amount of time that the $1 million would last is in the states listed below:

                  1. Hawaii: 11 years, 8 months, 20 days.
                  1. California: 15 years, 5 months, 27 days.
                  1. New York: 16 years, 3 months, 22 days.
                  1. Alaska: 16 years, 8 months, 6 days.
                  1. Maryland: 16 years, 8 months, 29 days.

                  Being in California, This news can be intimidating and inconclusive too! Though you are now sure that the cost of living in California is quite high, you are still unaware as to how much is needed to live comfortably after you retire.

                  Retirement needs – Estimate and Save

                  Several agencies or financial services firms or organizations provide different methodologies to calculate how much amount is needed to be saved for retirement. Let’s review a few here:

                  • Fidelity, One of the financial services firm, recommends that at least one of the salary is saved by an American before he turns 30. It will gradually need to increase as 3x of his salary by 40, 6x by 50, 8x by 60 and 10x by 67
                  • 4% rule indicates that all of your retirement expenses need to be met by withdrawing 4% of your total retirement funds.
                  • Some advisers recommend saving retirement amount to an extent that it is capable of generating 70-80% of annual pre-retirement income each year. This income-replacement rate can help you get an estimate of what will be the savings fund needed for your retirement.

                  These are only guiding principles and there is no hard & fast rule to follow these in similar lines. As stated above, your expenses will vary with the state, and the personal circumstances according to you. The best way to work on this savings plan will be to consult a financial adviser. Recovery Law Group has specialized experts who can understand your needs and suggest a strategy for your retirement savings. They operate in Los Angeles, California, and Dallas, Texas.

                  How to Save?

                  It is never too late and even if you are close to retirement, There are plans that can assist you to catch up on your retirement savings

                  • Excluding paying down high-interest debts first from your retirement can help you save the initial funds for retirement.
                  • Tax-favored retirement accounts like 401(k) and IRA are available for the citizens to contribute for the savings need. If you are aged under 50 years, Then the limits are $18,500 for 401(k) and $5,500 for IRA. If you are 50 years and more, then the limits are $24,500 and $6,500 respectively.
                  • Retiring late, if a viable option, can give you some extra time to save more for your retirement. Delayed retirement credits, issued by the Social Security Administration, are eligible to you in case you delay claiming Social Security benefits beyond the age of your full retirement
                  • Working on a second job can help with more funds to be put into your retirement savings
                  • Post-retirement, a part-time job can supplement your savings amount

                  As stated earlier, it is never too late to start saving. Do proper research and check on all feasible options. Reach out to experts in this space for any relevant guidance needed! The team at Recovery Law Group are ready to co-work with you – they will strategize the move, plan and execute according to your personal needs and also considering the cost of living of the state that you live in.


                    *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.

                  • Payday Loans: Myths & Facts

                    Payday Loans: Myths & Facts

                    Payday loans or cash advance loans are small loans which are taken by a person against their wages and can be paid off at the time of their next paycheque. For people who have been facing financial issues for some time, payday loans are a common feature. Many of them who have been contemplating bankruptcy as a way of getting out of such problems had taken payday loans in their past.

                    Getting a payday loan is not difficult. The borrower can ask for a payday loan from a lender in the form of a post-dated cheque by showing them proof of employment. The cheque is drawn for the amount that the borrower requires plus the interest amount. The lender will hold the post-dated cheque till the borrower’s next payday in lieu of the borrowed amount given to the individual. When the amount is due, the lender can deposit the cheque and get their amount back. In case the borrower requires more money for any other reason by the time payday comes, the lender can hold the cheque at additional charges. Despite sounding easy, borrowing money through payday loans can be very costly, with sometimes interest costing close to 400%!

                    Lawyers of Los Angeles based law firm Recovery Law Group inform that consequences of taking out such a loan, but, being unable to pay it back can have bad consequences like:

                    • Relentless calls by lenders for pursuing payment.
                    • If the lenders have the authority, they can overdraw your checking account by automatic withdrawing of money.
                    • You can be sued by the lender for the amount of loan plus attorney fees and court charges.
                    • The debt can be transferred from the lender to a debt collector.
                    • If and when they get a judgment against you, the lender can garnish your wages too!

                    The only respite you have is that such lenders cannot put you in jail. This is so because they are aware that you lack the funds in your account when you have issued the post-dated cheque. Thus you cannot be held guilty of knowledgeably issuing a bad check.

                    Payday loans are one of the last resort by individuals facing economic problems before eventually filing for bankruptcy. In case you have reached the point, where you have to rely on payday loans, you should get an evaluation by expert bankruptcy lawyers by calling at phone number – (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.

                    • Laws to Secure Your Credit Reports

                      Laws to Secure Your Credit Reports

                      According to Javelin Strategy & Research, One of the financial advisory firms in the U.S., more than $100 billion has been gathered in fraud using consumer’s identification between 2011 and 2016. By keeping the identity of others, the criminals open new credit accounts and use that account to purchase the products. Thus, The fraudulent activity has enabled the criminals to cheat U.S. consumers to this large extent. Right now, There are new federal laws that can help the Americans to safeguard their identity and prevent theft. The law which is termed as Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) has come into effect since September 2018. The key tools (that are also free) security freezes and fraud alerts are being enhanced for the benefit of U.S. Consumers.

                      Read the details on how the consumers can make the best use of the tools governed by the federal law for their benefit:

                      What’s a Security Freeze?

                      The new federal law defines Security Freeze as the restriction to disclose consumer specific reports which are subject to a security freeze to any person requesting the same. These restrictions are imposed on consumer or credit reporting agencies who handle such reports. In this way, The identity of the consumer is safeguarded and prevents identity criminals from opening credit accounts under different people’s names. Through the same Companies who are ready to offer credit in the consumer’s name who will not be able to check the credit file as it is subjected to security freeze and will deny any new requests for the offering of the credit.

                      Since September 2018, The EGRRCPA mandated the security freeze on consumer’s report and it is to be done free of cost. The security freeze, When demanded by the consumer charged by credit reporting agencies. The security freeze will continue until the consumer requests for its removal.

                      Security Freeze – Exemptions

                      A security freeze is mostly applicable in cases where the disclosing of the credit report is limited while extending credit to the consumer. So the law has some states where there will be some exemptions too. A credit report cannot restrict from getting shared in the below cases. –

                      • If the consumer’s account is being reviewed or collected, Then the person or entity associated with this process can access the credit report
                      • Any government company or court acting under an issued court order, warrant or a subpoena will need the credit report access. A private collection agency also can request for the same if acting under similar orders
                      • Government agencies that are investigating fraudulent activities or working on unpaid or delinquent taxes based on court orders can request the credit reports
                      • Credit reports can be asked by insurance companies if they are considering ensuring the consumer involved
                      • All purposes, Apart from the issuing of credit, May warrant the need for a credit report to be made available. It could be for verifying or authenticating the consumer’s identity or for fraud related investigations

                       

                      The Cons of a Security Freeze

                      Getting credit would eventually become a tougher and difficult process if there is a security freeze forced on your credit report. This risk is generally notified to all consumers who inquire the imposing of the freeze on their credit report. As an alternative, Free fraud alerts are another means of being aware and alert about the breaching of your identity or stealing of your information.

                      Fraud Alerts

                      Fraud alerts are a statement in the credit report of a consumer indicating that the consumer may be a victim of a fraud. That is to notify the receivers of the report that there had been a chance of identity theft and They can take additional steps to verify the identity of the consumer prior to increasing the credit. There are two types in these fraud alerts initial fraud alert and an extensive fraud alert. The latter type is free for seven years and can be availed if the consumer criticisms about identity theft with the credit report company.

                      Initial fraud alerts are ones that have been enhanced by the new federal laws. Prior to the revisions, The companies had to provide free initial fraud alerts for 90 days if a consumer is suspicious about his identity being compromised or stolen. Now, Under the new law, This period has been extended to one year. Active duty alerts are another type that is exclusively for members of the military and on active duty.

                      Utilizing the law

                      The EGRRCPA insists on having websites or means for the consumers to seek security freeze or fraud alerts with their credit reporting agencies. Alternative means for the consumers will be to reach the agencies through email and phone. Seek the guidance with experts in this field such as Recovery Law Group, who can give the necessary inputs to utilize the federal government laws to your favor.


                        *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.