Tag: Get out of debt

  • Can Bankruptcy Help Eliminate Medical Bills?

    Can Bankruptcy Help Eliminate Medical Bills?

    Financial problems can arise due to many factors, one of which is huge medical bills. If non-payment of medical dues can cause economic issues for you, you might have to file for bankruptcy to save yourself from insurmountable debts. However, many times, clients feel guilty about filing for bankruptcy, probably due to the fact that they somehow were incapable of arranging for such an emergency which may lead to the feeling of incompetence. It is important to remember while taking a guilt trip; that this is something nobody asked for and therefore bankruptcy is not something one should be guilty of doing in such a situation.

    More often than not, medical debts are often unforeseen and probably impossible to avoid and manage. Los Angeles based law firm Recovery Law Group advises that bankruptcy is a legal provision available to deal with such situations. More often than not, out of the various debts incurred, the medical debts is almost always impossible to cover. The reason for this might be that more often than not, medical dues are followed by loss of a job or reduced salary, which makes it nearly impossible to cover your financial dues. Since a majority of the times, credit cards are used to pay for medical bills, the exact amount you have indebted yourself remains unclear until the water is above the head.

    Unfortunately, this debt is one of the worst as medical bill collectors are some of the worst and most aggressive ones in the industry and may harass you continuously till you clear the dues. This can aggravate your already fragile condition. It is therefore advised that you consult adept bankruptcy lawyers to get help for any medical dues you have incurred, at the earliest.


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    • Bankruptcy’s Impact on Credit Worthiness

      Bankruptcy’s Impact on Credit Worthiness

      Credit scores reflect on the financial history of an individual or a business and are meticulously built over time. When there are moments of financial crisis and debts pile up, the individuals ultimately opt to file for bankruptcy. The biggest fear when the individual’s file for bankruptcy is how it impacts their credit scores. There are many reasons why credit scores will not be impacted in cases of bankruptcy as every individual commences their financial status afresh and they have time to rebuild their credit history

      Checking with a bankruptcy attorney or a law firm such as Recovery Law Group, who serve the Los Angeles and Dallas regions, is a recommended option for individuals who seek guidance on building their credit history. They have the experience to share the best practices and impart the guidance in order to avoid any further mishaps in the financial arena of the individuals. The below points will also be a guideline to understand how your credit worthiness stands when you have filed for bankruptcy.

      • If an individual has filed for Chapter 7 bankruptcy, the filing will remain on their credit report for up to 10 years of tenure. If good efforts are expended on rebuilding the credit over time, then the filing & the discharged debts have very less impact. It is assessed that most of the discharged debts drop off a credit report in approximately 7 years.
      • If the bankruptcy filing is of Chapter 13 type, then it is displayed on the consumer’s credit report for seven years. It is the similar condition for discharged debts too even though they may be repaid within three to five years through a formalized repayment plan – discharged debts appear on the credit report even beyond the repayment tenure.

      Credit worthiness will eventually improve as the time goes by – the impact of repayment and your rebuilding of credit worthiness will enable you to get offers from the creditors at large. So besides the amount of time that the bankruptcy filing remains on the credit report, the impact of the filing may reflect in high-interest rates (direct/ hidden) of new credit offers or may put individuals to deal with subprime lenders. Some of the mortgage lenders will view bankruptcy filing differently – say the eligibility of an individual to obtain an FHA mortgage can be one year if filed for Chapter 13 bankruptcy and will be two years if Chapter 7 filing is done. Few factors such as income, current debts, and down payment amount work beyond the bankruptcy filing and may affect the wait periods.

      It is understood that individuals leverage bankruptcy filing to regain their financial stability. Though the impact to credit worthiness is there when you have filed for bankruptcy, it isn’t permanent!


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

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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.

      • A Joint Chapter 7 Bankruptcy Filing

        A Joint Chapter 7 Bankruptcy Filing

        Joint Bankruptcy or Joint Chapter 7 Bankruptcy is the filing opted by married couples who face surplus debts and seek options to have them discharged as they have challenges of paying them. Let’s first understand how the filing of Joint Bankruptcy works –

        • A single set of bankruptcy papers are filed on behalf of the married couple (though there are two individuals involved)
        • All property information, debts, income to the family and expenses are submitted to the court
        • Debts can be those that are jointly owned or can be the ones that an individual owes to other
        • Details of the debts that are expected to be discharged have to be provided in the petition – debts that can be allowed to be discharged as per Chapter 7 are considered in the joint petition
        • For discharging of debts, the assets are usually cannibalized – it is normally not possible to protect every asset. Hence it is important to understand the risks involved in jointly filing for bankruptcy especially when you own properties with your spouse
        • If the joint petitioners are from the Texas region, they can review the Federal and State Bankruptcy exemptions in order to protect their properties against liquidation in cases of filing a bankruptcy. One motor vehicle per licensed family member, 100-200 acres of property in the country or 10 acres in a city are some of the state level exemptions in Texas. Reviewing these with the bank attorney prior to filing the joint petition is a wise move

        Now that we know how the filing process works, let’s also assess the advantages to opting for a joint bankruptcy filing.

        • As filing for bankruptcy is an expensive ordeal, do it jointly is definitely going to cost you less. It will save couples from paying double the filing fees and paying your attorney twice the amount
        • Most of the dischargeable debts are appropriately taken care of and eliminated in the joint bankruptcy filing
        • The efficiency of completing the bankruptcy case is better when filed jointly – you save time by handling all of the tasks at a single phase/ time

        However, there are some disadvantages to this process –

        • All of the assets that are individually owned or jointly owned are disclosed during the filing procedure. This can also end up in liquidating valuable or viable properties by the trustee handling your case – at times the partner who owns more properties end up losing more of it
        • The couple ends up in owing too much of priority debt. As per the clauses of Chapter 7, there are certain kinds of debts that cannot be discharged – taxes, mortgages and child support are some of this kind. In cases of these, the repayment in full of these debts also needs to be done jointly as per Chapter 13. In such situations, the partner who owes the debt can file the bankruptcy individually

        Are you perplexed of whether to opt for a joint fling or not? A renowned law firm and the experienced attorneys will help determine your case and advise the course of action as needed. Seeking the assistance of such firms like the Recovery Law Group can put you in better positions of handling your bankruptcy scenario and also retain some of your prized assets by saving them from liquidation.


          *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.

        • Why Hold Back from Bankruptcy Filing?

          Why Hold Back from Bankruptcy Filing?

          Many times, people who owe creditors money, lead a life that is full of threats and harassment. Debt collection agencies do not leave any stone unturned to get back the money that you owe them or the creditors. In case you too are plagued with incessant phone calls, urgent notices or demands for financial settlements, why are you hesitating to file for bankruptcy? More often than not people are afraid of filing for bankruptcy due to the various myths surrounding it. Lawyers of Sacramento based law firm Recovery Law Group provide a number of common reasons why people restrain themselves from filing for bankruptcy:

          Bankruptcy Hurts You Financially: Credit card companies allow you to make purchases now and pay the money later while charging heavy interest on the amount of transaction. Since you are paying for a long period of time, the loans never get paid off while you keep on increasing your debt by continuous usage of credit cards. In the long run, this causes you to have poor credit, which can be eliminated by filing for bankruptcy. With the bankruptcy filing, you can get your old debts discharged (completely or partly) and start fresh. In this manner, you can rebuild your credit score in a couple of years compared to struggling with bills for a long time.

          Your Credit Gets Ruined for a Decade: It won’t be incorrect to say that getting loan or credit card becomes slightly difficult after bankruptcy, but getting one with poor credit score is highly unlikely too. It is important to note that filing for bankruptcy provides you with a chance of getting a fresh slate to start anew. When you make regular and timely payments on your mortgages, utilities, rents and any other debts, your credit ratings will improve. This will ultimately get you approval for secure credit cards and loans within a couple of years of filing for personal bankruptcy

          Lose Your Home by Filing for Bankruptcy: Though there are chances in case of personal bankruptcy (Chapter 7) where personal assets including property are sold off to clear the creditors’ dues, however, the possibility of this happening is slim. This is because of strong federal exemptions. Moreover, if you are eligible and file for bankruptcy under Chapter 13, you won’t be losing your home at all.


            *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.

          • Considering Bankruptcy? Should You Liquidate Your Assets?

            Considering Bankruptcy? Should You Liquidate Your Assets?

            For people who are undergoing severe financial issues, one of the best legal recourse available is filing for bankruptcy. This helps to get huge amounts of debts discharged while offering individuals a chance to have fresh financial beginnings. According to the U.S. Bankruptcy Code, a number of chapters are available to choose while filing for bankruptcy; one must choose the chapter depending on their financial conditions. Chapter 7, also known as “Liquidation Bankruptcy” is one of the most preferred for consumer bankruptcy.

            In Chapter 7 bankruptcy, the assets of the individual filing for bankruptcy are sold off and the money so generated is used to make payments to the creditors to clear off the debts. A bankruptcy trustee, appointed by the court, oversees the liquidation of your non-exempted assets and also takes care to distribute the money to any creditor you owe money to.

            Though also known as liquidation bankruptcy, not much liquidation of assets takes place in Chapter 7 bankruptcy. As lawyers of Los Angeles based law firm Recovery Law Group explain, most of the limited property that a debtor owns is considered to be exempted and only that which is non-exempt can be liquidated. Since the entire purpose of bankruptcy is to provide an individual with fresh financial start to individuals going through a bad economic phase, stripping them off their possessions will not serve the purpose. Thus exemptions are allowed in bankruptcy proceedings which include filers’ primary residence, automobile, personal property and certain other benefits including retirement account.

            It is easier to determine the exemptions when it comes to personal bankruptcy, however, the demarcation is slightly more complex when it comes to business bankruptcy. It is important to take legal assistance to help determine which of your property comes under exempted assets and which one is a non-exempt property. It is also important to avoid making mistakes like intentionally liquidating assets before filing for bankruptcy. In case you are considering bankruptcy, it will be helpful to keep certain things in mind –

            • Avoid using your retirement funds: Though being bankrupt is not exactly a nice position to be in, it will not exactly help your cause, if you break into your retirement corpus to pay off your creditors. Emptying your retirement account will not only result in early withdrawal penalty fees but you will also have to pay tax on the money, whereas filing for bankruptcy will protect your retirement funds (they come under exempted property) and thereby your future.
            • Don’t make credit card payments using rent money or mortgage payments: The thought of creditors knocking on your door with the threat of lawsuits and wage trimmings can often cause people to panic. However, it is important to keep in mind not to use a mortgage or rent money to pay off creditors. The bankruptcy trustee in charge of your case will make sure that you do not lose your home in the process of paying off your creditors; but if you forgo mortgage payments or rent on time, you may end up on the street due to your miscalculations.
            • In case you are planning on filing for bankruptcy, do not sell off your assets to pay cash to your creditors: Many people think that selling off assets like jewelry, cars and other electronic goods to pay off creditors is a good option. However, if you are considering to file for bankruptcy, these actions might be mistaken for disposing of assets or payments made with them equal to favoritism, which may become the cause of the dismissal of your case.

            The process of bankruptcy can be quite a complex one for most people. It is therefore essential that you take proper legal assistance from an experienced bankruptcy attorney to determine the best course of action as per your situation.


              *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.

            • Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

              Creditors Can Be Held in Contempt for Violating Discharge Ordered by Bankruptcy Court

              The bankruptcy laws have been enacted to make life easier for people who are undergoing tremendous financial losses. However, despite filing for bankruptcy and getting a discharge, many times, creditors still harass debt filers for dues. Citing the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvarv. Title Cash of Montana Inc., et. al.), the Los Angeles based law firm Recovery Law Group respite is available to debtors from creditors who violate bankruptcy discharge. Such creditors can be held in civil contempt.

              How Jarvar v. Title Cash of Montana Inc., et. al. Bankruptcy Case Changed Things

              In the above case, debtors had filed for bankruptcy under Chapter 13 with Title Cash filing proofs of claim for 2 secured claims, an amount of $7,290 each. On a later date, they withdrew both secured claims to file a single POC for a secured claim of $14,605. The debtor’s case was converted to Chapter 7 and dismissed.

              As per the trustee’s final report, Title Cash had $6,046 in principal and $1,041 in interest. The debtor then filed for Chapter 7 relief in September 2004 with Title Cash scheduled as a secured creditor and received a discharge on January 1st, 2005. However, in September 2008, the debtor filed for a state court action against Title Cash with the latter responding with a counterclaim requesting in personam relief against the debtor.

              This led to the filing of an adversary proceeding for a violation of Section 362 and 524. The bankruptcy court granted summary judgment to the debtor for seeking relief for a discharge injunction violation. Since Title Cash couldn’t file a statement of genuine issues, the facts submitted by the debtor in her Statement of Uncontroverted Facts were acknowledged.

              The creditor (Title Cash) was in violation of bankruptcy discharge, as he attempted to make the debtor personally liable (in personam) for the debt post its discharge. This is not a rare occurrence but a common practice amongst creditors. Violation of debtor’s bankruptcy discharge costs not just the debtor’s time and energy but also money which is of great importance in the current scenario. However, there have been instances when debtors have received compensation for this behavior of creditors (violation of bankruptcy discharge).

              In case a creditor is asking for payments even after your debt has been discharged in bankruptcy, you don’t need to bow down to any pressure. Contact your bankruptcy attorney to deal with such creditors.


                *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.