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  • How to Protect Your Home during Bankruptcy?

    How to Protect Your Home during Bankruptcy?

    Most people take mortgages when they purchase their house. With time the property value might appreciate or depreciate. Being unable to make mortgage payments might send you in debt. When you file for bankruptcy, you have options to save your home. However, an accurate assessment of what your home is worth is essential. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group , when you file for bankruptcy, some equity of homestead exemption is available to protect your home. Individuals can opt for federal or state exemptions (if the choice is available in their state). The exemptions vary from state to state. Contact expert bankruptcy lawyers at 888-297-6023 to find out how much homestead exemption is available in your state and how you can protect your home during bankruptcy.

    What is your home worth?

    It is important to know the accurate value of your home in order to protect it. This is important because you can protect up to a fixed amount of equity in the home when you file for bankruptcy. To calculate the equity in your home, you need to have your property evaluated, and deduct mortgage balance from the amount. If this amount is less than the homestead protection available, then you can protect your home during bankruptcy.

    In case of Chapter 7 bankruptcy, in case the equity exceeds the exemption limit, the trustee can sell your house to pay the mortgage, give you your exempt equity and distribute the remaining amount amongst your unsecured creditors. If you have filed for Chapter 13 bankruptcy, you might be able to keep your house, but you need to pay an amount equal to the non-exempt equity to your creditors through a 3 to 5-years repayment plan. This can be difficult for people with a huge amount of non-exempt equity but not substantial income for monthly payments through a repayment plan.

    How to calculate the current value of your property?

    There are different methods available to know the “current value” of your home. Your valuation is not the only factor to determine the value of your home as the bankruptcy trustee also determines the same. in case of any discrepancy, the bankruptcy judge makes the final call. The various methods employed to find the fair market value include:

    • Real estate websites

    This is a preliminary way to determine the value of your home. It is generally used when the mortgage amount is high, and homestead exemption might be enough to protect the property. Websites like Trulia.com and Realtor.com can provide you a rough estimate of what your property is worth, for an accurate evaluation you can go for a full appraisal.

    • Full house appraisal

    Get the most accurate value for your home through this method. Refinancing the home or modifying the loan can give you the latest appraisal, or you can hire a licensed real estate appraiser to inspect your property. Based on certain factors, the appraiser sets a value to the property and explains the valuation in his report. This routine procedure is followed in most bankruptcy cases, especially if you are planning to have second mortgages stripped in case of Chapter 13 bankruptcy.

    • Comparable market analysis

    Relatively less expensive than a full appraisal, in this option, a licensed realtor compares your house with similar houses sold in your area. The market analysis uses data from the sale of the home which were in the same locality, were similar in size, condition and structure to yours to get an estimate of your home’s worth.

    However, you should steer clear of some valuation methods as they are considered unreliable for bankruptcy purposes. These include:

    • Quick sale value

    Many people need to sell off their property on short notice. This often results in a lower value and thus cannot give an accurate estimate of the actual worth of the property. This method, therefore, cannot be used during bankruptcy. Additionally, it might make you think you can protect your home through the homestead exemption.

    • Property tax appraiser value

    Getting your property evaluated for real estate tax purpose by a property tax appraiser might not work in bankruptcy proceedings since they are not an accurate representation of the actual market value of the property.


      *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.

    • Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

      Can any 3rd Party Take Advantage of Automatic Stay in Chapter 13 Bankruptcy?

      Bankruptcy is confusing and terrifying to most common people. Though there are benefits associated with it like automatic stay and discharge of unsecured debts at the end of the bankruptcy, sometimes, a bankruptcy case might be ‘hijacked’ by another debtor who wishes to take advantage of your bankruptcy case and the subsequent automatic stay. Automatic stay helps in putting arrest to all collection actions by creditors including repossession, foreclosure, threatening emails, phone calls, etc. However, Los Angeles bankruptcy lawyers https://bankruptcy.staging.recoverylawgroup.com/ inform, creditors may request a relief from the automatic stay clause. This happens in case debtor “participated in a scheme to delay, hinder, or defraud creditors.” When such a case happens, the debtor is often caught unaware and generally clueless about their options.

      What is property dumping?

      Many people are unaware that any such term exists. Some people piggyback a ride on others’ bankruptcy cases, availing the benefit of the automatic stay to protect their property. This happened with Dana when she filed for bankruptcy. A local bank filed for a motion alleging that she had defrauded and failed to declare her assets and hide them so that the bank couldn’t make collections on a house in Ventura County. Unfortunately for Dana, that house didn’t belong to her and neither did she have any knowledge of the occupants. But her bankruptcy case was about to be dismissed because of some property whose existence was completely unknown to her.

      The original owner of the property in concern here was another California resident, Angelica who was nearly $40,000 delinquent on her mortgage. She used to check public bankruptcy records to find a person who had recently filed for bankruptcy. She would then record a property transfer deed transferring her house to a bankruptcy filer. The automatic stay benefit accorded to her victim will prevent creditors from foreclosing on her home and protect it. By the time the banks asked for lifting the automatic stay, Angelica made another phony transfer of property to some other person.

      Often there is no prior connection between the victims of property dumping and the perpetrator. In the above-mentioned case, Angelica used to doctor the records in such a manner that the transfer of the house appeared to occur prior to a bankruptcy filing. The process granted her house the benefit of automatic stay till banks filed for relief and the process would be repeated. In Dana’s case, since she was not the owner of the property neither had any idea about it, she did not object for any relief from the stay. The records mentioned Angelica as the owner of the property and her property dumping or hijacking plan was highlighted. Hiring an experienced attorney worked well for Dana’s case. It always makes sense to hire experienced attorneys for bankruptcy cases as the issue is quite complex without any frauds happening. In case you are looking for a consult for your bankruptcy case, call 888-297-6023 to speak with expert bankruptcy lawyers.


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

        *Do you own a home?

        Are you currently working?

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

      • Who is Notified of Your Bankruptcy Filing?

        Who is Notified of Your Bankruptcy Filing?

        Despite being one of the best legal options to get rid of accumulated debt, people refrain from filing for bankruptcy probably because they fear being judged. One of the major concerns people have is that their bankruptcy will be announced to their family and friends, which probably is shameful for them. While considering bankruptcy, and to quell any fear, it is important that people are aware of who will be aware of their bankruptcy filing. According to Dallas based law firm Recovery Law Group, there are two chapters under which individual debtors can file for bankruptcy – Chapter 7 and Chapter 13. Both bankruptcy chapters come with the automatic stay benefit and prevent creditors from taking any collection actions. However, there is a difference in the way your assets and debts are treated in both of them.

        In the case of Chapter 7 bankruptcy, your assets are divided into the exempt and non-exempt property. There are two types of exemptions in bankruptcy, state and federal. Some states allow you to choose between federal and state bankruptcy exemptions, while others like California do not. However, provisions are made to protect different amounts of various properties like house, car, and household goods. In the majority of cases, nearly all property of a debtor comes under the exempted category, thereby offering protection. In case some property is not protected under the exemption, it is sold by the trustee to pay off creditors. Any dues which remain after selling off of non-exempt property are discharged at the end of the bankruptcy.

        When an individual fails to qualify for Chapter 7, the other option available is Chapter 13. In this bankruptcy chapter, a repayment plan is devised keeping in account your earnings, your debt, and your assets, in order to repay your creditors. The repayment plan continues for 3-5 years duration after which any unsecured debts like credit card and medical bills or personal loans are discharged. Though Chapter 13 is slightly tougher, it is ideal for debtors with income above the mean state income.

        Who knows of your bankruptcy?

        In case you are facing a difficult financial situation and wish to weigh in your options you can call 888-297-6203 to consult with expert bankruptcy lawyers. Once you have reached the decision of filing for bankruptcy after discussing with your attorney and undergoing the mandatory credit counseling course, the case is filed at the United States Bankruptcy Court. Due to filing in a court of law, it becomes public record. However, finding the details of your case is like looking for a needle in a haystack. Unless the details are available, it is next to impossible to know about your bankruptcy. There are some people though, who are aware of your bankruptcy proceedings. These include:

        • Your creditors are aware of your bankruptcy as you are expected to provide a list of your creditors to the court. This is because your creditors need to be aware of your impending bankruptcy and the automatic stay. In case you forget to add a creditor’s name, those debts won’t be discharged through bankruptcy. Apart from the creditors, the local bankruptcy trustee is aware of your bankruptcy. However, both court employees and the creditors are barred from reporting about your bankruptcy.
        • Family and friends are generally unaware of your bankruptcy unless they have co-signed a loan which may result in them having some liability with you filing for bankruptcy. Unless they go digging around, they won’t be aware of your bankruptcy till you spill the beans, because the court prohibits court employees and creditors from disclosing such information.
        • Employers are generally not notified of the bankruptcy filing and can only be aware if you inform them or they search through public records. Many people are worried that bankruptcy might hinder their chances of better employment but that is not so. However, bankruptcy shows on your credit report. Thus, if a prospective employer opts for a credit check before hiring he/she might become aware of your bankruptcy filing. One ray of hope for you is that employers cannot discriminate hiring prospective In some cases of Chapter 13, repayment to creditors might be deducted from your pay cheques due to which HR might become aware of your bankruptcy. Similarly, if wage garnishment is taking place then also your employer might become aware of your bankruptcy.

        Bankruptcy has been devised as a mean to help people struggling with insurmountable debts to start afresh. It is no way meant to name and shame you. In case you are considering bankruptcy as a means of getting out of the financial mess, you need to consider an expert lawyer who can guide you through the entire way.


          *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 Happens if You Forget to Include a Creditor in Your Bankruptcy?

          What Happens if You Forget to Include a Creditor in Your Bankruptcy?

          A lot of paperwork is involved when you file for bankruptcy, including documentation for your income, assets, and a comprehensive list of your debts as well as your creditors. This complete list of creditors is used by the court to inform everyone concerned about your bankruptcy. Since all of this involves a lot of paperwork, it is quite possible that one or two creditors might miss making the list. Since creditors also have legal rights in your bankruptcy case, if any of them fails to get a mention in your list of creditors while filing for bankruptcy, what effect can it have on your case?

          What is the creditor mailing list?

          According to Los Angeles based law firm Recovery Law Group, the “Creditor Mailing List” (also known as the mailing matrix) should include all your creditors along with their contact information. It must also include debts like student loan debt which are not handled via bankruptcy. Once you file for bankruptcy, this mailing matrix is used to inform all creditors of it. This is an important step as creditors wish to be kept in the loop when such an occurrence happens.

          The creditors, depending on which chapter of bankruptcy you file, might be involved in the confirmation of your debt, or pay-out of your liquidated assets, or might be required to approve the repayment plan. To be eligible for their repayment portion, they are required to file a “proof of claim.” If they have no information about your bankruptcy, they cannot file a proof of claim and thus will lose their chance of getting payment from your bankruptcy.

          The creditor mailing list is an integral part of your case. When you file for bankruptcy, you get automatic stay protection which effectively ceases all collection actions by creditors. Unless the creditors are aware of your bankruptcy, they will not follow automatic stay. Thus you might lose wages to garnishment or have your home foreclosed or face a lawsuit for collection if you miss out any creditor on the creditor mailing list. Additionally, omitting a creditor can affect your bankruptcy too! The bankruptcy forms are filed under a penalty of perjury, i.e. leaving any information off the papers intentionally is considered a crime. The unintentional omission is understood by the court and you are given a chance to rectify your mistake. If you have unintentionally left any creditor off from the mailing list, the consequence depends on which chapter of bankruptcy you have filed.

          Adding creditor in Chapter 7 bankruptcy

          In Chapter 7 bankruptcy, also known as liquidation bankruptcy, your non-exempt assets are surrendered to the court which is then sold off to pay the creditors. Many times, thanks to state and federal exemptions, debtors have little to no non-exempt assets; such cases are known as “no asset” bankruptcy cases. When some non-exempt property is available, which can be sold off to pay creditors, the bankruptcy is known as an “asset” bankruptcy. In case you forget to include a creditor in the creditor mailing list while filing for Chapter 7 bankruptcy, the outcome depends on whether it is an asset or no-asset bankruptcy.

          • Asset bankruptcy

          When you have non-exempt assets, unsecured creditors get paid in proportion to the amount you owe them, when they file a proof of claim. When you leave a creditor off the mailing list, they won’t be notified of bankruptcy and subsequently will not be able to file proof of claim, thereby losing out on their repayment amount. Any unsecured creditor who is left out of their rights can go after you to collect the dues after a bankruptcy discharge. The only respite you have in this case is that they can collect dues only from non-exempt assets. Chapter 7 bankruptcy exemptions can help save a number of your assets. Secured creditors, if they are left out of creditor mailing list, have rights to pursue collection actions against you after your bankruptcy discharge.

          • No asset bankruptcy

          In this case, since there are no non-exempt assets, the unsecured creditors (credit card, medical bills, personal loans, etc.) do not get anything in bankruptcy. Since unsecured creditors do not have any property attached to their debt, they don’t have any proof of claim to file. If you accidentally forget to add an unsecured creditor’s name to the list, not much of consequence happens in this particular case. As is the case with no asset bankruptcy, unsecured creditors, listed or not, get nothing in such cases. The debt gets discharged with creditor having no claim to collect.

          Consequences of leaving a secured creditor out of the creditor mailing list are far more serious than leaving an unsecured creditor out. You can face collection actions after a bankruptcy discharge. Secured debts which are linked to the property are not discharged during bankruptcy but can be surrendered or reorganized. All of this requires the involvement of the creditor. If you wish to reaffirm your car loan, you need to make payments through and even after your bankruptcy. If you miss adding the name of your auto lender or any other secured creditor off the mailing list, the debt won’t be discharged and the creditors are eligible to collect the payment even after your bankruptcy, which may include foreclosure and/or repossession of said property.

          Certain debts like child and spousal support, government taxes, etc. are not discharged during bankruptcy. Since these debts won’t be discharged, the accidental omission of such debts will not have any effect on your bankruptcy case. They were and remain collectible even after bankruptcy. Since a majority of Chapter 7 cases are no asset cases, there aren’t any major consequences of the accidental omission of a creditor.

          What happens if you fail to add a creditor in Chapter 13 bankruptcy?

          Creditors have more involvement in a Chapter 13 bankruptcy compare to a Chapter 7 case. They have a say to review, object or approve your repayment plan. If and when your repayment plan is approved, the payments are divided amongst your creditors proportionately. If you fail to include a creditor in this type of bankruptcy, the debt won’t be included and therefore not discharged at the end of your bankruptcy. This leaves the creditor free to attempt collecting the debt after your bankruptcy discharge.

          Options available for you if you forget to add any creditor when you file for bankruptcy

          Irrespective of the type of bankruptcy filed, if you realize you have unintentionally omitted any creditor, you should contact and inform your bankruptcy attorney of it. They can help guide you on ways to fix the mistake. If you haven’t reached the end of your bankruptcy, filing a form in bankruptcy court to add the missing creditor can help get the problem solved. In case you have got your bankruptcy discharge and get a collection notice from a left out creditor, you need to contact your bankruptcy attorney. Depending on the type of bankruptcy you had filed, the lawyer can find out if the creditor has any right to collect dues or not. An unsecured creditor trying to collect dues from you has no right to them if you filed for a no-asset Chapter 7 bankruptcy. The creditor can be informed by the lawyer of the case in such a situation. If that is not the case, the bankruptcy lawyers can assess whether different factors like the statute of limitation can affect your dues to the creditor.

          If you remember to have left out a creditor, contact your bankruptcy attorney immediately. Wilful omitting of a creditor is considered a form of perjury, which can lead to the filing of criminal charges and even dismissal of your bankruptcy case. Bankruptcy can be trying times, emotionally and financially. It is important to have a bankruptcy attorney by your side in such cases. If you don’t have one, feel free to call 888-297-6203 to get your case evaluated.


            *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.

          • My Cosigner Filed for Bankruptcy; Does it Impact Me?

            My Cosigner Filed for Bankruptcy; Does it Impact Me?

            In many different places, getting loans or line of credit is not easy. There is always a requirement of a guarantor or a cosigner. Parents, relatives, spouse, or friends could play as guarantor/cosigner. How does the bankruptcy of one cosigner impact the other person? This is what we will discuss in detail here. For best and quick solution on bankruptcy related issues, just hop to Recovery Law Group.

            Cosigner and the relationship

            A Cosigner is a person who is liable to pay the loan in case the primary borrower defaults. The Cosigner is the backup plan for the financial institution to recover its debt. The cosigner could be a known or unknown person who agrees to do so. Cosigners are common for people with short or no loan or credit history. People with bad credit score, lower income, no assets to pledge as collateral, etc., usually require a cosigner for swift loan approvals. California, Texas, New York, Los Angeles, etc., are some states where you would typically see the use of cosigners a lot. However, as a cosigner one can be held liable in case of defaults, bankruptcy and other scenarios. Hence, one should be very cautious when opting for the role of a cosigner.

            Impact of bankruptcy declaration

            The unsecured debts which are usually the case with the debts associated with cosigner get released when bankruptcy is filed. The obligation for the primary debtor to pay off the debts is released. This is true for all types of unsecured debts. This release of obligation, however, does not apply to the cosigner and he/she still remains liable to the debt not paid by primary borrower due to bankruptcy. The primary borrower may declare bankruptcy through Chapter 7 or Chapter 13. In the case of Chapter 7 bankruptcy declaration, the primary borrower gets an ‘automatic stay’, which evades the borrower from all unsecured creditors. However, this benefit does not shield the cosigner. This means the risk and liability will shift to the co-borrower or cosigner completely.

            How to protect your cosigner?

            There are ways to protect the cosigner. The primary borrower is the primary link for the bank or any other financial institution. Hence, the cosigner would not know if any payment due has been missed or not been paid. Keeping the cosigner informed in advance can help in keeping the loan current and reducing the number of payment defaults. If you are the cosigner, it is a good practice to keep a check on the payments on every due date. Any payments missed will directly impact on the credit history, score and various other parameters for both the parties involved in the transaction.

            • Reaffirmation of loan

            Reaffirmation is a very difficult decision to make. This is another way of releasing your cosigner. Reaffirmation is the process of making the self completely liable for the loan. The process also will not allow you to discharge the unsecured debt even if you declare bankruptcy in the future. The bankruptcy of the primary borrower would not affect the cosigner however, default would. In the case of loan default, the cosigner will still be liable.

            Chapter 13 bankruptcy declaration

            Compared to Chapter 7 bankruptcy option, Chapter 13 is very beneficial for the primary borrower as well as the cosigner. The ‘automatic stay’ under Chapter 13 covers and protects the cosigner along with the borrower. This is applicable only if the primary borrower accepts to pay the debt in full and includes the same in Chapter 13 repayment plan. When creating a Chapter 13 repayment plan, one can include the cosigned debt and continue to pay the installments with the income available for disposable. This safety shield is a weak one though and can be breached by the creditors if payments are missed or if the bankruptcy is no longer applicable. Making payments regularly as per the Chapter 13 payment plan is the only way to safeguard your and your cosigner interests.

            Credit score implications

            A credit score takes a severe beating of about 200 points if not more if bankruptcy is applied or declared by the borrower. The cosigner might not be directly impacted by the primary borrower’s bankruptcy unless and until he/she continues to make the payments on time. The bank or financial institutions does not care if cosigner or primary debtor is paying the dues, the payments have to be made on time. Until this is true, cosigner’s credit score is safe. Missed payments directly negatively impact the credit score of both parties involved, the primary debtor as well as the co-borrower.

            What happens if the scenario is reversed?

            What if the cosigner or the guarantor is going to file bankruptcy? This can be a serious problem for the primary borrowers. Even if you are current with your payments, you can be in default if your guarantor defaults. This holds good in most student loan scenarios. This directly has a very negative impact on your credit score as well. To minimize damage, the best way is to disassociate the guarantor from the loan either by proving your credit worthiness based on historic payments to the bank or by employing a new guarantor. It is, however, difficult to remove or replace a cosigner or guarantor.

            Cosigner and borrower relationship can be more complicated than it looks. If you are confused, need help or specialized professional assistance, reach out to (888)-297-6203 for the best solution for all your doubts and questions.


              *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.

            • Taxes in Bankruptcy

              Taxes in Bankruptcy

              People with overwhelming debts often seek bankruptcy as a viable solution. However, even in bankruptcy, certain debts such as secured debts like mortgage and car loan as well as government taxes and child and spousal support cannot be avoided. Apart from federal taxes, certain states like California also impose state income tax on its citizens. Similar to credit card debt, tax debt also gets added up and often becomes difficult to manage. A bankruptcy filing can definitely get rid of your unsecured debts but many people are confused regarding its effect on their taxes.

              What to know before filing for bankruptcy?

              According to Los Angeles based bankruptcy law firm Recovery Law Group , a number of options are available for dealing with income tax debts prior to bankruptcy filing such as “offer in compromise” (OIC), installment agreements, or filing a previous tax return. Since every financial obligation and individual circumstances are different, the solution also needs to be tailor-made for every client, after careful consideration of all factors.

              OIC option is available to taxpayers with no delinquent returns, who have made all tax payments and are not involved in active bankruptcy. OIC is similar to debt settlement, you offer to pay IRS less than what you owe and if the terms are agreed, you will be able to satisfy your debts. This option is excellent for those people having a higher tax liability and lower income to pay off debts. Initial high payment is expected from the taxpayer in OIC apart from complete compliance with the terms and conditions during the tenure and an additional 5 years after that.

              You can also avail to pay your taxes in installment if the IRS agrees. An installment agreement makes you compliant in the IRS’s eyes and prevents any possible debt collection steps. Additional benefits include reduction of harassed phone calls and letters from IRS while the downside to the agreement is that you continue accumulating interest on the tax obligation for the amount of time it takes to pay the debt.

              Another way of addressing this delinquent tax debt is to file for amended past due to tax return. This option is preferred as filing for it results in a direct reduction in tax liability due to preparer error. It is essential to weigh all the options with your bankruptcy lawyer or financial/tax expert who is aware of statutes of limitations as well as applicable tax codes.

              Viability of bankruptcy 

              Filing for bankruptcy might relieve you of some tax liability from both federal income tax as well as the state tax. However, the tax debt discharge depends on a number of factors like:

              1) duration of tax debt, depends on the date tax returns were due when bankruptcy papers were filed.

              2) the date when tax assessment was due.

              3) whether you are guilty of avoiding (willful or fraudulently) any tax debt.

              4) apart from this, to discharge federal and California state tax during bankruptcy, you need to fulfill these requirements –

              * tax debt is due for over past 3 years from the more recent of either an extension or the original filing date;

              * taxpayer had filed returns in a timely fashion or it has been a minimum of 2 years since the tax returns were filed;

              * taxpayer has not attempted to commit any fraud or tax evasion and the taxes have not been assessed in the past 240 days (240-day rule)

              Benefits of the automatic stay in bankruptcy 

              Consumers can file for bankruptcy under either chapter 7 or chapter 13. In the case of former, all unsecured debts are discharged including income tax if you meet the above-mentioned conditions. During chapter 13 a repayment plan is devised to make payments to all your creditors including IRS if you have included them. You can also enter in an agreement with the IRS to get a rebate in your debts. Any remaining debts are discharged after the duration of your repayment plan. This may include income tax debts if you meet the criteria.

              Whichever chapter of bankruptcy you choose to file under, both come accompanied with the benefit of the automatic stay. This puts all collection actions including foreclosure, wage garnishment and repossession on hold.

              Though you might not be able to get all your tax liabilities discharged when you file for bankruptcy, you might be able to come to a working agreement with the tax credit on a repayment plan within the bankruptcy.

              In case the IRS has obtained tax lien against your property, bankruptcy won’t be able to help you much. Though they will retain the claim on your property, your personal liability will be wiped out. In this case, if the IRS sells the property and gets less than what you owe, you cannot be held for any deficiency. Bankruptcy ensures that none of your assets are seized by the IRS without court permission.

              To fully understand your rights when it comes to taxes and bankruptcy you need to be aware of IRS bankruptcy tax guide. In case you are struggling with tax debts and are considering bankruptcy as an option, call 888-297-6203 to consult with expert bankruptcy lawyers regarding your case.


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

                *Do you own a home?

                Are you currently working?

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

              • How to Get Mortgage Post-Bankruptcy? – Read This Guide

                How to Get Mortgage Post-Bankruptcy? – Read This Guide

                Many people think that life after bankruptcy is like living in hell. However, this is just a myth. If you act wisely and take the right decisions, your life after bankruptcy can be quite smooth and back on track. You can also get a mortgage to build your own house but it takes about 2- 3 years for this to happen. Since the present day price of houses is quite huge, hence it is very obvious for the lenders to be much more cautious before lending. Thus, to get a mortgage post-bankruptcy needs proper guidance and planning. This article aims at giving you a brief description on how to get a mortgage after coming out of bankruptcy phase and the impact this phase has on your credit status. For a detailed expert guidance and assistance, you can also visit Recovery Law Group or give a call at 888-297-6203.

                What is the impact of bankruptcy on credit score and mortgage lending?

                The first thing that you need to consider before going to buy a new house is the status of your credit. The most commonly adopted credit score by money lenders is the FICO score. Different lenders follow different requirements and credit score based criterion. Generally, any person who has a credit score of 650 or above is eligible to get a mortgage and for those having a credit score below 650, it might be a tedious task to get a mortgage after bankruptcy. Moreover, if you are one of those who want a mortgage with a better price, then you must maintain a credit score of 700 and above.

                If you do not want to face the tedious requirements of the money lenders, you can opt for FHA (Federal Housing Administration) loans as they offer a down payment option of 3.5% at a credit score of 580 and another down payment option of 20% at a credit score of 540.

                It is vital to note that if your bankruptcy is filed under chapter 13 then it will show up on the credit report until next 10 years but if you filed it under chapter 7 then it gets off just after your filing.

                Various factors considered by the lender before giving mortgage:

                Most of the money lenders follow the FICO formula that considers the below-mentioned factors with decreasing priority order:

                1. Your payment history depicts your ability to pay on time or not. It accounts for about 35% of the total FICO score.
                2. The number and amount of credit you owe to every line of credit holds about 30% of the total FICO score.
                3. The number of your recently started credit accounts.
                4. The various types of credits that you are presently using which may include credit cards, installment loans, etc.

                Apart from the above-mentioned factors that are considered for calculation of the FICO score, there are various other factors also that a money lender takes into consideration before making up his mind to give you a mortgage. Some of the most common factors are enlisted below:

                1. History of any bounced checks
                2. The balance of your bank accounts
                3. The kind of job (a stable job is more preferred)
                4. Whether you have any retirement plans or not?
                5. The debt to income ratio must be good

                The time period required before applying for a mortgage?

                Generally, one has to wait for about 2 years post bankruptcy for applying to get a mortgage. For people who file their bankruptcy under chapter 7 are provided insured mortgages by FHA after 2 years of discharge of their bankruptcy. You can also get a mortgage even before the term of 2 years; however, the interest rates will be larger. Hence it is advisable to wait for at least 2 years duration to get a mortgage at pocket-friendly interest.

                How to get better credit scores:

                Following are the ways by which you can get improved credit scores. These methods are applicable whether or not the bankruptcy shows up on your credit report.

                1. Get a credit card that is secured- this is a counter-intuitive way of improving your credit score. You can take loans and credits from the bank and then repay them in the specified time limit. Doing this will improve your FHA score and liability. It will take some efforts to get a secured credit card post-bankruptcy, but you must not give up easily. However, do not apply for too many of them as doing will increase the financial burden on you.
                2. Try to take up a loan that needs repayments in installments- there are various loans like the car loans and student loans which require the debtor to pay on a monthly basis in the form of installments. Such loans are termed as installment loans. You can take such a loan and then make timely payments to improve your credit score.
                3. Rebuilding the credit report- three of the major credit agencies whose report you must check are Trans Union, Equifax, and It is a very important step after the bankruptcy is discharged so as to rectify if any paid debts are stilling being shown on your credit report. In case of any discrepancy, consult the respective agency and get your credit report correct and updated.
                4. Using rent for payments- using the rent for making payments can be a smart way of getting out of your debts. You must get these rent payments included in your credit report to increase your credit score. For this, you can either contact your property manager if he/ she is cooperative or else you can contact the agencies that report credit to supply your rent payment details to the credit score issuing agencies.

                Lastly, you must have a logical and realistic plan before applying for a mortgage. This is important to avoid any further problems after the discharge of the bankruptcy. For proper planning, you can consult a good bankruptcy attorney who can sort out things for you.


                  *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.

                  • 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.


                      *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.

                    • Here’s How We Can Help You With Chapter 7 And Chapter 13 Issues

                      Here’s How We Can Help You With Chapter 7 And Chapter 13 Issues

                      Bankruptcy has been a serious concern since forever, however many homeowners, families and individuals throughout the U.S. consider it the right choice. To understand bankruptcy protection or liquidation process does require an experienced and comprehensively knowledgeable legal professional, who further will guide you through its system. Recovery Law Group is committed to guiding you as you prepare for bankruptcy and protection. (more…)