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  • Know Everything About Bankruptcy Before Opting for It

    Know Everything About Bankruptcy Before Opting for It

    Call: 888-297-6203

    Your finances are something you generally don’t discuss with everyone. If you are facing some monetary problems, your family or a few friends might be able to come to your rescue. If, however, the debt is too much, even they can’t help. Bankruptcy might be the only possible way to legally get rid of debt. Despite the advantages of bankruptcy, it is important that you don’t jump into it without being aware of the details or you might end up blindsided. Los Angeles based bankruptcy law firm Recovery Law Group, suggests that it is always important if you consult experts before coming to such an important decision as a bankruptcy.

    Many people fear bankruptcy as it can have a negative effect on their credit report. However, there is no denying the fact that you can get rid of several unsecured debts through it. If credit card bills, personal loans, and medical bills form the major chunk of your debts then bankruptcy is the best way out for you; though, it is vital that you hire the services of qualified attorneys specializing in the field. This is because bankruptcy is a complex process involving numerous rules and regulations and laws which are not everyone’s cup of tea. A professionally qualified person such as a lawyer can suggest the best way to get rid of debts.

    There are various chapters through which you can get debt relief and the requirement for each varies. Individual debtors can file for bankruptcy under Chapter 7 or Chapter 13. Since every case is different there is no thumb rule to determine which chapter of bankruptcy is ideal for you to apply for debt relief. Having a bankruptcy lawyer can be an asset in this case. If you would like to consult with experienced bankruptcy lawyers Los Angeles, you can call 888-297-6023 to schedule an appointment.


      *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.

    • Factors Which Help Attorney to Decide if Bankruptcy is the Best Option for You

      Factors Which Help Attorney to Decide if Bankruptcy is the Best Option for You

      When any person is finding it difficult to make ends meet and has a huge debt piling on, there are two options available for them; either opt for bankruptcy or for a debt repayment plan. People in difficult financial situations should make it a point to consult either a financial counselor or a bankruptcy attorney to find the best possible way to get out of their financial mess. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group , the various factors to consider to decide which option will work for the client include:

      • Your income and debts

      The primary consideration is what is the amount of debts that you owe and if you have enough income to pay them back. In case our income is not enough to pay back your debts, bankruptcy will be the best option. However, if you can make a decent amount of money and can pay back your debts, then you need to find out alternate ways to get rid of debts.

      • Your assets

      Many times, there is a crunch of free cash which results in a person being in debt. However, if you have several assets, filing for bankruptcy will result in selling off non-exempt property to clear your debts. You could, alternately, do this (sell your assets) on your own without filing for bankruptcy and get rid of your debts.

      • Types of debts

      Certain debts like secured debts (car loan, house mortgage) cannot be discharged. Similarly, unsecured priority debts like a student loan or certain government taxes won’t be discharged during bankruptcy. If these kinds of loans constitute your major debt, filing for bankruptcy is futile. However, if the major portion of your loans comprises of credit card debts, personal loan, medical bills, etc. then bankruptcy is ideal for you.

      If you are considering bankruptcy to get rid of your debts, then you might need to consult expert bankruptcy lawyers regarding various aspects of bankruptcy. You can call 888-297-6023 to schedule an appointment for a consultation.


        *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.

      • Bankruptcy does not need to be Intimidating!

        Bankruptcy does not need to be Intimidating!

        Financial troubles can hit anyone, anytime. The primary step is to acknowledge financial problems and take adequate steps necessary to protect yourself and your family from adverse effects. Bankruptcy, though often detested, is an essential way to find financial stability. However, many people find bankruptcy intimidating. According to Dallas based bankruptcy law firm Recovery Law Group, this is primarily because of the lack of information about its advantages. You can easily overcome financial difficulties by opting for a consult with expert bankruptcy lawyers at 888-297-6023. the basic steps of facing bankruptcy include:

        • Hiring experienced bankruptcy attorney

        Bankruptcy can be an intimidating process. However, it is also the best possible way to legally get rid of several debts. Having an experienced bankruptcy lawyer by your side who is well-versed with the rules and understands the system completely can be a huge asset. Consultation with the lawyer regarding your priorities and your expectations from bankruptcy can provide you with the desired results.

        • Being honest about your finances

        Accepting your problems can help you find solutions. It is important that you discuss your finances with your lawyer so that their legal insight can benefit you. You can protect a variety of assets depending on the chapter of bankruptcy and the exemptions you choose. Once you understand the process through discussions with your lawyer, bankruptcy will not seem intimidating to you.

        • Comply with rules

        Hiding assets or transferring them in order to protect them is not the ideal way to get rid of debt. With numerous exemptions in place, you will be able to protect almost everything essential to get a new start. You should think of bankruptcy as a new beginning. This is possible if you follow the rules. Bankruptcy is a tool provided by the government to help people suffering unnecessary financial strain by paying a certain portion of their debts through their assets or ask for debts to be forgiven.

        • Get fresh start

        Instead of being overwhelmed by bankruptcy, people should consider it for what it is; a legal way to get rid of insurmountable debt. You can protect yourself from all types of collection actions including repossession, foreclosure, wage garnishments, etc. You end up paying for your secured debts and unsecured priority debts while getting rid of several unsecured debts (depending on which chapter of bankruptcy you choose).

        Considering that bankruptcy has been designed to make life easier for people, it is time you got rid of unnecessary fears and consult an expert bankruptcy attorney to discuss your financial problems.


          *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.

        • Protect Yourself Financially by Avoiding These Mistakes

          Protect Yourself Financially by Avoiding These Mistakes

          Nobody wishes to fall on bad financial times. However, almost every single individual who has filed for bankruptcy due to an excessive amount of debts has made a few common mistakes and taken unnecessary risks which have resulted in them looking for a bankruptcy attorney. If you wish to avoid such a situation, it is important to learn from the mistakes made by others. According to Dallas based bankruptcy law firm Recovery Law Group, if you have filed for bankruptcy and gotten a discharge for your debts, you need to ensure that you make amends and improve your credit rating. This can be done by avoiding making the same mistakes over and over. Some of the most common mistakes which lead people towards bankruptcy include:

          • Keeping a monthly balance on credit cards

          Most credit card companies charge clients 15%-28% interest on monthly balances. When you compare this to mortgage loans (nearly 4%) or car loans (2%-6%) you will find the rate exorbitantly high. Most people filing for bankruptcy owe huge credit card debt for their condition. In case you do not clear your monthly balance, you end up paying much more than you can afford. The balance keeps on adding every month eventually leading to bankruptcy.

          Avoid using the credit card and instead, use a debit card. This will not only reduce the interest but will also prevent you from making unnecessary splurges.

          • Spending without realizing the total cost

          Most people buy stuff without realizing the actual cost of running and maintaining it. though a car loan doesn’t come at a high rate of interest, you need to add fuel, service, insurance, repairs and other additional costs and things go out of hand. The same holds true for property too. You can avoid making these purchases unless it is essential.

          • Not having a monthly budget

          One of the fundamentals of bankruptcy is a mandatory course in financial management. This is because people rarely plan and live on a budget. People should cut back on needless expenses and save the disposable income for a rainy day if they wish to avoid bankruptcy.

          • No planning for retirement

          Most people think that their social security benefits will help them in their old age. However, the amount you get will not be enough to live comfortably. Thus, it is important to save regularly if you wish to avoid falling into debt in your later years.

          • Using retirement funds to repay loans

          Most people are unaware that exemptions provided by state and federal government protect their retirement funds. Using money from retirement accounts to clear credit card debts will leave you without an asset and yet in debt. Moreover, credit card debts are discharged during bankruptcy.

          • Not buying insurance

          One of the worst things that you can do is not taking health or accident insurance. Generally, people don’t like to spend on things which are not likely to happen. However, when misfortune strikes, you end up accumulating a huge amount of medical debts which can send you spiraling down the road.

          • Not looking for other earning options

          Considering the economic condition prevailing currently, not looking for opportunities to earn extra money is a crime, literally. You should consider alternate earning options to support your lifestyle and save money.

          • Neglecting health

          Neglecting physical and mental health in order to improve your financial health will prove detrimental eventually. Not only will you end up harming your body and end up spending a huge amount of money on medical expenses.

          Consult expert bankruptcy lawyers at 888-297-6023 to know more about the bankruptcy process.


            *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.

          • Which Debts are Cleared by Bankruptcy?

            Which Debts are Cleared by Bankruptcy?

            Bankruptcy is an ideal way to get rid of debts. However, things can be quite confusing for the layman as the terms are often misunderstood. Though bankruptcy is meant to legally get rid of huge amounts of debts, lawyers of Dallas based bankruptcy law firm Recovery Law Group, inform that not all debts get discharged during the process. Depending on which chapter of bankruptcy you choose to file bankruptcy under, your debts can be reorganized, discharged or left as such. To know details about your options, consult with expert bankruptcy lawyers at 888-297-6023.

            Chapter 7 Bankruptcy

            If you want a quick discharge of several debts without making any payments towards them, this is your best bet. Also known as Liquidation Bankruptcy, it typically gives the debtor a discharge within 3-6 months of the bankruptcy filing. Majority of the debts discharged in this bankruptcy chapter include unsecured debts such as credit card bills, personal loans, medical expenses, etc. If loans such as these and other nonpriority unsecured debts like business loans, private student loans, and utility bills, etc. constitute a majority portion of your debt, then you should opt for this chapter of bankruptcy.

            It is important to keep in mind that secured debts, such as those against which the creditor has collateral (house mortgage, car loan, etc.) and unsecured priority debts like alimony, student loan, child support, certain government taxes, etc. cannot be discharged. The same holds true for any debts which are related to fraud.

            Chapter 13 Bankruptcy

            This chapter of bankruptcy is known as Reorganisation Bankruptcy. In this case, while filing you can include all kinds of debts. A repayment plan is devised depending on your disposable income and the debts are paid over a period of 3-5 years. Any unsecured nonpriority debts which remain after this are discharged. During the repayment plan, your house cannot be foreclosed, and your vehicle repossessed if you keep making payments towards those loans. This is the best option available if you wish to prevent foreclosure, repossession or want to put a stop to interest build-up on tax debts.

            Though it may seem easy, filing for bankruptcy can be quite difficult, especially if you miss out on any nuances. It is therefore advisable to consult an expert bankruptcy lawyer to help you get out of your huge financial problems by filing for bankruptcy.


              *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.

            • Eligibility for SSDI & SSI Benefits

              Eligibility for SSDI & SSI Benefits

              The laws are made for the benefits of the citizens of the USA. However, while some may be ignorant to use it, others are too intelligent to wrongly employ it for their benefit. Hence, the Government, in order to prevent misuse of the benefits have issued forms/application that allows them to choose the right candidate. The right candidate apparently, may not know about the benefits they can get and may miss and suffer unnecessarily. The site Recovery Law Group helps such candidate to apply and get the SSDI & SSI Benefits.

              SSDI or Social Security Disability Insurance & SSI or Social Security Income are benefits that a person can avail in case of a disability that may prevent him/her to carry out normal living condition. The person’s disability may be temporary or permanent. The disability may leave a person redundant and incapable of performing any work without the help of another person.

               A disabled person can apply for benefits if he/she qualifies the following criterions.

              1. Duration

              A person may be disabled for six months or for a few years. The government sites people who will remain disabled for a year or so. Minimum 12 months/ a full year the candidate should be out of work due to a disability, only then he is eligible for benefits.

              1. Working conditions

              Will the candidate be able to continue work after being disabled? What was the income before he was disabled? These are a few questions that need to be answered by the candidate.

              • The candidate due to a disability may not go back to work even after he is cured. In conditions like an amputated leg or hand may prevent the candidate to take up the previous and
              • his average gross earnings from the previous job were less than $ 1,040 per month,

              then he is eligible for the disability benefits.

              1. Substitute work

              Maybe the candidate is not able to continue his previous work but is eligible to do other work to generate income, then he is unlikely to get the benefits. Many disabled persons can be well-qualified/experienced/ to work, despite being disabled.

              1. Condition during disability

              Candidates who are required to visit the doctor regularly for their medical condition and are unable to do any other work, i.e. completely bed-ridden qualify for the benefits.

              1. List of disablements

              A list is designed that contains severe medical conditions. If the candidate’s condition falls under that list, then the candidate becomes automatically eligible for disability benefits. However, even if the conditions of the candidate do not fall under the list but, the severity of the condition falls alongside the List of Impairments, the Social Security Administration qualifies him for disability benefits.

              If the person is disabled due to an accident, he/she must take the disability benefits. For more information call 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.

              • Tips to Qualify For Chapter 13 Bankruptcy Code

                Tips to Qualify For Chapter 13 Bankruptcy Code

                There is a specific debt threshold for filing Chapter 13 apart from the regular income criteria. The debt of the filer has to be under the threshold in order to qualify for Chapter 13. Additionally, he/she has to possess sufficient income in order to sponsor his/her future payment plan. This is only possible if there is a considerable amount of disposable income, which is the net of income and some basic expenditures. To know more amazing stuff about bankruptcy and eligibility criterions, log on to Recovery Law Group now. If you just compared your debts with the Chapter 13 debt threshold, if the outcome was a non-qualification, you need not be disappointed as there are some strategies or tips to still qualify for Chapter 13.

                What is the debt threshold limit as of now?

                The recent data as per April 2019 caps secured debts as well as liens to $1,257,850. The unsecured debts have been capped up to $419,275. If your current secured and unsecured debts fall below the threshold, there are no concerns. In this case, you are eligible for Chapter 13, until and unless you hold a consistent source of income. However, if your debts exceed any one of the threshold caps, you may want to consider some smart tricks to try and qualify for Chapter 13 bankruptcy.

                Strategies for qualifying to Chapter 13

                • Reassessing total debts

                The first option to try for qualifying for Chapter 13 would be to verify if all the debts need to be matched up to the threshold or not. For instance, some debts like contingent debts which creates a liability only when a particular situation occurs, or a scenario are developed is not accounted for when verifying for the debt thresholds for eligibility. If you have included contingent debt in your total secured or unsecured debt, you can just exclude the same for determining eligibility.

                Similarly, the ‘unliquidated debts’ are also not usually included in the tally of secured or unsecured debts. Unliquidated debts are debts which cannot be realized to the exact dollar. This can be a lawsuit or an injury or an accident claim. Such debts can also be ignored when determining total secured/unsecured debts for qualification purposes. Another important point to note is that these debts still need to be disclosed while filing bankruptcy and the lender/beneficiary details shall be provided with other lenders or creditors.

                • Lien stripping

                A single type of debt can be categorized into secured and unsecured debt based on the value of lien or the fair market value of the asset attached. The whole process is termed as lien stripping. This is very useful if your secured debt portion is exceeding the threshold but there is a significant gap between the actual unsecured debts and the cap. This will increase your unsecured debts to reduce your secured debts if that is what you want to qualify.

                • Separate bankruptcy filings

                Married people need not opt for the same chapters when applying for bankruptcy. If one person qualifies for Chapter 13 and the two together don’t, one of the spouses can opt for Chapter 7 bankruptcy based on what turns out to be beneficial. This is especially extremely beneficial if one of the spouses has a larger amount of unsecured loans that could be released almost completely under Chapter 7 bankruptcy code. This procedure is not an easy one and can be extremely tricky. Getting hands-on with an experienced attorney is a must for such kind of strategies. It could be just a phone call away at 888-297-6203.

                • Bankruptcy court’s discretion

                Sometimes, the bankruptcy court can modify the thresholds of the debt limit. This is quite rare but can happen none the less. This is commonly seen when in case of a couple where both spouses individually qualify for Chapter 13, the court may allow the proceedings to go further a single case. An experienced attorney in your city may be Dallas, California, or Los Angeles should be able to guide you with some tips to get a discretionary benefit.

                How about considering Chapter 20 as an alternative?

                After evaluating all these potential fixes or tips, if you still aren’t able to qualify for Chapter 13 bankruptcy Dallas, Chapter 20 might not be a bad idea either. Chapter 20 is a combo of Chapter 7 and Chapter 13. Probably a total of 13 and 7 too. Firstly, you let go all your unsecured debts by filing for Chapter 7 and then repay the remaining debt after partial asset sale or liquidation in the Chapter 13 way. You can decide to keep the assets you want and liquidate the assets to set off some of the secured debts and also avail a partial discharge of the unsecured debts too. However, the remaining debts secured and unsecured will need to be paid in full over Chapter 13 payment plan for the next 3-5 years. Since you would have already availed a partial discharge or release of debt under Chapter 7, you would not be eligible to take one more through Chapter 13.

                This can certainly get tricky but with sorted and experienced attorney guidance can always make such complicated cases a lot easier. Do not forget to log on to the website or dial in to resolve your bankruptcy problems in the smoothest way possible.


                  *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.

                • The Basics of Chapter 13 Bankruptcy Cramdown

                  The Basics of Chapter 13 Bankruptcy Cramdown

                  Chapter 13 bankruptcy allows you to reduce the principal balance on a debt to the value of the property in case of secured debt. This is known as cramdown and can help save your debt on real estate investment, car loan and some other properties. Dallas based bankruptcy law firm Recovery Law Group, inform that cramdown can be an asset to reduce the debt on certain secured loans. To know more about cramdown, contact expert bankruptcy lawyers at 888-297-6023 and discuss about your case.

                  Secured debts are those assets against which the creditor has collateral. These include car loans and mortgages. Some secure debts can be reduced by cramdown, such as car loan, investment property mortgages or any other personal property (apart from real estate) like furnishings and household goods, etc. However, cramdown is not available on your principal place of residence.

                  In case your vehicle is worth $5,000 but you owe $10,000 in the loan, you can ask for the cramdown of your loan to the value of the car through your Chapter 13 repayment plan. The remaining amount after cramdown is converted into an unsecured debt and treated in a similar fashion, i.e. discharged at the end of your repayment plan. Thus, you own your car after the end of your bankruptcy.

                  Advantages of cramdown

                  There are numerous advantages associated with the cramdown of the loan in Chapter 13 bankruptcy. You can reduce the interest rate and lower your monthly obligations by stretching the payment over a longer period. The interest rate paid to creditors depends on the bankruptcy court and can be lowered than the note rate, thereby reducing the payments you make.

                  Restrictions

                  Considering the advantages cramdown has for people filing for bankruptcy, it is expected to have a few restrictions to prevent people from reducing the repayment amount for recent purchases. These include:
                  • 910-day rule
                  For cramming down your car loan, the car must have been purchased a minimum of 910-days (nearly 2.5 years) prior to filing for bankruptcy. This is to prevent new vehicle owners from cramming down on their loan immediately after buying the vehicle.
                  • One-year rule
                  Like the 910-day rule for cars, this rule is for personal property. You can cramdown loans on household goods that have been purchased at least one year prior to bankruptcy is filed.
                  • Investment property mortgages

                  Any loans which are crammed down need to be paid within the time frame of the Chapter 13 repayment plan (3 to 5-years period). This is a practical problem for people who cannot afford to even pay then mortgage of crammed down loans in the specified period.


                    *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 to Your Car, When You File For Bankruptcy?

                    What Happens to Your Car, When You File For Bankruptcy?

                    If you own a car through an automobile loan and are struggling to keep up with the installment dues, you might want to know what could be in a potential scenario, if you had filed for bankruptcy. In cities like Dallas, Houston, and other cities, where public transport is not exceptional and well connected, the car is more of a necessity than a luxury. Whether it be to run around the grocery errands or to manage the daily routines of work, kid’s school or any other things. People using their own car might find it extremely difficult to sustain without it even in bankruptcy. Hence, it is a pretty obvious concern to what happens to your car in bankruptcy.

                    Type of bankruptcy to decide

                    Chapter 13 and Chapter 7 are two bankruptcy category that will determine if you will be able to keep your car or not. In the case of Chapter 13 bankruptcy, the payment plan shall accommodate some payments towards the car loan since it is a secured loan, the chances of retaining the car is high. On the other hand, Chapter 7 rules need the borrower to trade in all the non-exempt assets which could well include your car.

                    Are there methods to keep the car when applying for Chapter 7 bankruptcy? Yes, there are, let’s learn how in the next piece.

                    The car worth and affordability are two important things that can decide the car fortunes for you. If you need to keep your car, you shall file a reaffirmation treaty with your car loan lender during the bankruptcy procedure. This reaffirmation treaty is basically an agreement which prevents car loan from being released or discharged. This means you shall continue making car loan installment payments whenever they are due in spite of bankruptcy. Reaffirmation could be allowed by the court if the installment due could be proved as an ‘undue burden’ in the bankruptcy court. Ultimately, all other obligations, income, and various other factors come into play. To analyze all factors and to seek professional help in this regard, log on to Recovery Law Group right now.

                    Car worth and Equity concepts

                    If the liquidation is made through Chapter 7 there is a concept of equity that comes into the picture. The difference between the purchase price of the car and the remaining principal due is regarded as equity. During the liquidation process, one can use the exemption codes available in certain states like California and try retaining their assets like a car. In California, there are two exemption codes. The first one allows for a cap of $3,050 on equity as an exemption for your vehicle while the second one caps it to $5,350. Both these elections cannot be applied simultaneously and are individual section codes or systems.

                    If the equity portion of your car is below the exemption codes of $5,350 or $3,050 the bankrupt trustee cannot liquidate your car for repaying debts. If you exceed the exemption amount, it is still not over. You can pay off the excess amount over the exemption to the trustee to be eligible again. The second and last option is to initiate a reaffirmation treaty which has been discussed earlier. Chapter 13 bankruptcy helps you hold on to the car until you comply with the payment plan set up by you, the court, and creditors and all other complications related to Chapter 7 bankruptcy California. For assistance from the best and experienced bankruptcy lawyers, dial in +1 888-297-6203 now!

                  • Tax Debts Can Drive Even the Rich and Famous to Bankruptcy

                    Tax Debts Can Drive Even the Rich and Famous to Bankruptcy

                    Despite the popular notion that bankruptcy affects only those people who have low income, there are numerous instances when the rich and the famous had to resort to bankruptcy to get rid of their huge financial debt. One of the notorious cases is that of O.J. Simpson’s lawyer, F. Lee Bailey’s. He gained popularity when he defended O.J. Simpson in the criminal trial for the double murder of Simpson’s ex-wife Nicole Brown and her friend Ron Goldman. Bailey had a brush with success earlier too, representing people in other high profile cases. Unfortunately, despite rubbing shoulder with high placed people, Bailey filed for bankruptcy in Maine to get IRS debts (from 1993-2001 tax returns) to the tune of more than $5 million discharged.

                    Why is dealing with tax debts difficult?

                    Dallas based law firm Recovery Law Group elaborates that tax debts are often the most complicating types of debts to deal with. This can be attributed to the fact that similarly to student loan and child and spousal support payments, they cannot be discharged during bankruptcy. You have to pay them off to get rid of them. Since IRS rules are complicated, it is not possible for the average human to get a grasp over them. It is no wonder that people hire the services of specialized people like tax lawyers and accountants to deal with them. In case you receive a notice from IRS regarding any debt you owe you should contact 888-297-6203 for immediate assistance from specialized bankruptcy lawyers. It is important to contact the IRS to inquire about the details before accepting or contradicting them. In case the amount is immense, you need to take steps to fight for your right in the court. If their accusations are true, you need to make arrangements to pay the dues.

                    Retired F. Lee Bailey had to face lots of obstacles to come up with the million dollars fine. Since he didn’t have that money with him and arranging the huge amount all at once was difficult, he required assistance. In case, you too are facing a similar situation of huge tax debts, a payment plan can be worked out with the IRS. In case, the matter is not handled immediately, action against you can be taken by IRS which may include wage garnishment and/or putting liens on your property. Since you owe the debt to the government, unlike other creditors, it does not require the court’s permission to collect the dues; it can do so as and when it pleases.

                    Can bankruptcy aid in tax debts?

                    Many people find bankruptcy a great aid in getting out of bad financial conditions. However, can bankruptcy offer protection in case of taxes owed to the government? Tax debts can be discharged during bankruptcy in certain cases. To get respite from them, you need to meet the following criteria:

                    • Only Income tax debts can be considered.
                    • The tax must be due originally at least 3 years prior to a bankruptcy
                    • IRS assessment of the debt must have taken place a minimum of 240 days prior to filing or they haven’t yet assessed it.
                    • The tax return for the year in question must be filed.
                    • No fraud or evasion of taxes must be involved.

                    Normally, people won’t find the criteria too difficult to meet, as long as the debt is old and no false information is provided. However, if there is a discrepancy in the information provided; like a false name or any money hidden from the IRS, you might have to pay the debt in full, even after bankruptcy. In the case of Bailey, he was accused of not paying applicable taxes as well as hiding money which he earned during his long and distinguished legal career. Disputing the claim has led to a long drawn legal battle which is causing him to infuse more money.

                    Despite earning huge sums of money during his brilliant career as a successful lawyer, Bailey could not keep himself out of legal trouble due to debts owed to the IRS. In case, you too are facing similar tax-related issues with the IRS, it is important that you get all basic information related to the case and contact a legal expert or an accountant to look into the matter. In case, the debt is too much to be paid and you are already suffering through other financial issues, bankruptcy might be an ideal option. Getting timely professional help can make a huge difference to your bankruptcy case.


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