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  • What Effect Can My Bankruptcy Record Have on My Life?

    What Effect Can My Bankruptcy Record Have on My Life?

    A bankruptcy filing is a tough yet necessary decision that people struggling with huge financial debts must make. It may take time to get your debts discharged, depending on the chapter of bankruptcy you’ve filed. While it takes about 3-6 months to get a discharge in a Chapter 7 bankruptcy case, Dallas based bankruptcy law firm Recovery Law Group, informs that a Chapter 13 case continues for 3-5 years’ period before you can get a discharge on remaining unsecured nonpriority debts. However, once you have filed for bankruptcy, the case becomes public record and can be seen by anyone.

    Bankruptcy can have a detrimental effect on your credit report. In fact, a bankruptcy stays on your credit report for 10 years. While this may sound a big problem, especially for people who have just filed for bankruptcy or got their bankruptcy discharged in the recent past, there is some relief. Most sites that provide bankruptcy record information are not easily accessible and require paid subscriptions; something which general public will not be willing to do. However, people or institutes with whom you are likely to have business interactions such as bank, prospective employer, lenders, etc. might be interested in viewing your bankruptcy. Sometimes, while applying for a job or seeking a loan, there are questions which specifically ask about any previous bankruptcy. If you file for any loan or credit after bankruptcy your credit report will inform the bank or private lender about your situation. You might still be able to qualify for the loan if improve your credit rating by making regular and timely payments.

    Though you might find all this overwhelming, it is important to remember that filing for bankruptcy is important to get rid of huge amounts of debt which you have no means of paying. Additionally, you have no control and legal control over who can and will access your bankruptcy records. What you can do is ensure that you come out of bankruptcy better; by learning how to manage your finances. Eventually, within a couple of years, you might again be eligible for a house mortgage, student loan or car loan. Bankruptcy is meant to be an aid for assisting people with a fresh financial start. For more details about how filing for bankruptcy can help you get out of the difficult financial situation, contact expert bankruptcy lawyers at 888-297-6023.


      *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 Bankruptcy Court and Social Media

      The Bankruptcy Court and Social Media

      Can the bankruptcy court interfere with social media space? Well, the answer is certainly yes but not if they are personal social media accounts but definitely if they are social media accounts used for business purposes. This question has popped up after a recent judgment by a Texas bankruptcy court. If any social media platform like Twitter, Instagram, Facebook, etc., are used for promoting business, they can be included in the bankruptcy estate. Not only that, but the bankruptcy court may also order the bankruptcy filer to submit the password of these social media accounts. The same level of authority is not applied for a personal social media account. However, if you are doing business promotions from your personal account and there is no separate business account, confusion begins here. Follow more such interesting and informational topics on Recovery Law Group.

      What was the case?

      In Texas, this interesting case happened wherein a firearm company owner decided to file for Chapter 11 bankruptcy. The owner, Jeremy Alcede had a gun shop. Under the reorganization scheme proposed under Chapter 11, a new boss was suggested to take over the business of the gun shop. The bankruptcy court of Texas ordered the former owner to turn over all the electronic assets of the Tactical Firearm including Twitter, Facebook and all other social media accounts with their passwords to the new owner. Jeremy, however, had other thoughts and refused to share social media account details and would have rather preferred imprisonment.

      What was the argument?

      The former owner put forward a strong argument saying, the account was personal, and he administrated over them and created them. His rants on then-president Obama and all advocates, who wanted to put down gun licensing and eradicate public selling of guns. He used the accounts for voicing the benefits of his shop and garnered a good amount of publicity through them. The court, on the other hand, argued that the social media accounts are directly involved in business promotion and had a business website linked on the bio of the site and hence, shall be regarded as a business account. Considering all these factors, it was determined that social media account directly influence the business of Tactical Firearms and hence, the password and the accounts need to be handed over to the new owners.

      If you are in a similar situation and need assistance to determine if your business account or your personal account could be in danger or not, reach out to 888-297-6203 right now.


        *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.

      • Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

        Under what circumstances is Chapter 7 bankruptcy better than Chapter 13?

        Chapter 7 is not often recommended by experts as people tend to lose their valuable assets with this type of bankruptcy. However, there are many situations when Chapter 7 can be beneficial than Chapter 13. These benefits can be interpreted as reasons for opting for Chapter 7 over Chapter 13. To learn more about bankruptcy, Chapter 7, Chapter 13 and other Chapters log on to https://bankruptcy.staging.recoverylawgroup.com/.

        List of some benefits of Chapter 7

        • Less time-consuming- The process of applying for bankruptcy under Chapter 7 and receiving a court judgment is relatively quick. An average case could take 3-6 months from the day bankruptcy has been filed.
        • Absence of payment plans- Unlike Chapter 13, Chapter 7 does not carry most liabilities forward. This means there is no need for any payment plan in order to repay the creditors in the future.
        • A higher percentage of debts can be released- With some exception to some of the priority debts like student loans, child support, alimony, taxes, penalties, etc., most of the other debts are released when Chapter 7 bankruptcy is filed. In general Chapter 7 results in the highest percentage of debt release compared to other Chapters.
        • Protecting basic assets is a possibility- The common sentiment with respect to people filing Chapter 7 or considering Chapter 7 is that they won’t have any assets left. However, this is not true, there can be several arrangements made wherein many assets can be protected as well as some nonexempt assets also can be possessed. Under most circumstances, you can keep your basic essential assets including a home and a car.

        What type of filers should consider Chapter 7 bankruptcy?

        Chapter 7 is ideal for people with the following characteristics-

        • Own assets with a lower fair market value
        • Have a higher amount of unsecured loans like a credit card, medical bills or unsecured personal loans
        • Whose household income is less than the state median

        The matching of household income with the state median is a basic eligibility criterion. If your household income is below the state median of similar household, you qualify for Chapter 7. Else, you would have to deduct your income with some standard deductions to know your net income less standard or basic expense deduction. If your income is still above the median, you might not qualify for Chapter 7.

        Should you opt for Chapter 13?

        Chapter 13 is the straight competitor to Chapter 7. People who have high priority loans which will not get discharged while filing for Chapter 7 bankruptcy, should consider Chapter 13. People who wish to keep all their assets without much complications should also consider Chapter 13. What are some of the key disadvantages of considering Chapter 13? The list can be found below-

        1. Time-consuming – Apart from the 3-6 months of processing time in the bankruptcy court, your payment plan might last for 5 years. This means you are not left off the hook for a very long period of time compared to Chapter 7, which is almost done and dusted in max 6 months of the time
        2. Disposable Income – Often there is a misunderstanding that, the payment plan does not fluctuate with the change in disposable income. However, if the disposable income increases, the payment plan changes to accommodate more debt. To sum it up, the increase in income directly reduces the amount of debt being released.
        3. Complicated payment plan and disposable income calculation – Arriving at the disposable income and forming a payment plan for the next 3-5 years that satisfies the bankruptcy trustee, as well as the lenders, can be a laborious work.
        4. Adhering to the payment plan – Adhering to the payment plan becomes extremely important for a Chapter 13 filer, as there is a risk of losing the assets used to secure the loan such as a car or even the home to foreclosure. Apart from being current with the payment plan, the filer has to be current with all the non-releasable debt like taxes, administrative fees, child support, etc. This can be tough.
        5. History does not support the cause well – Just how past records say 85% of Chapter 7 cases are no-asset cases, the trend is not very positive for Chapter 13. As records, 63% of Chapter 13 bankruptcy filers do not successfully execute their payment plan as determined at the time of filing. This creates a greater risk of foreclosure, asset detachment and zero release of debts.

        The above were some of the negatives of Chapter 13 bankruptcy code. However, people with consistent and good income sources have managed to get better of the record presented by Chapter 13 historic filers. A lot has been discussed about disposable income. Let’s find the list of deductions allowed from your income to arrive at the disposable income-

        • Food and clothing as per the standard deduction allocated in the state
        • Housing and utilities as per the federal standard or state irrespective of actual costs
        • Transportation if the filer does not own a car or a bike or maintenance costs if the filer owns an automobile
        • Taxes
        • Involuntary deductions from salary
        • Life Insurance
        • Child support, family support, alimony, and similar court rulings
        • Healthcare cost as per the standard indicated by the state or federal standard
        • Certain education costs

        Total income less the above deductions would help you arrive at the disposable income, which will be directly in full towards the debts owed for the next 3-5 years. If you are still confused about whether to opt for Chapter 7 bankruptcy  or Chapter 13 bankruptcy, connect with us at 888-297-6203 for the best advice and experienced solutions.

         


          *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 Bankruptcy Filing By An Undocumented Immigrant

          The Bankruptcy Filing By An Undocumented Immigrant

          An undocumented immigrant can file for bankruptcy if he/she has a Social Security Number. In lieu of a social security number, Individual Taxpayer Identification Number can also be used to file for bankruptcy. There can be a negative impact on the immigration status of the bankruptcy filer when filing for bankruptcy as an undocumented immigrant. For best assistance and more insight on bankruptcy, log on to Recovery Law Group now.

          What do the rules indicate?

          The bankruptcy code does not have a specific mention for the bankruptcy to be filed by a citizen of the United States or residents. Bankruptcy is basically a relief that is offered to any individual who is living in the United States, owns a property or business in the United States and for the citizens of the United States. The identity of the filer is the only potential concern when an undocumented immigrant files for bankruptcy. A valid SSN or ITIN in lieu of SSN is mandatory before filing for bankruptcy. An ITIN is a tax processing number that is issued to an individual who is not eligible for an SSN. Since ITINs are issued without consideration to the immigration status, it becomes a very viable option to many.

          What’s the case of an illegal immigrant?

          An illegal immigrant can still possess SSN. The entry in the United States as tourist, student or any other visa is eligible for an SSN. If the immigrant breaches the stay duration, he/she becomes an undocumented immigrant. Most people who have legally entered the United States should have an SSN or an ITIN. If they are not legal immigrants, they might not want to file for bankruptcy as it can result in larger consequences.

          Need for an immigration specialist

          Bankruptcy by itself is a very complicated chapter so is immigration. By mixing these two focal points, the mess can get messier. When the consequences can go so bitter, it is best advised to get in touch with a professional attorney or lawyer who has rich experience and knowledge about these unique cases. Reach out to +1 888-297-6203 right now for best solutions to your 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.

          • What Happens in a Chapter 13 Confirmation Hearing?

            What Happens in a Chapter 13 Confirmation Hearing?

            Chapter 13 bankruptcy involves the creation of a repayment plan. In this case, all nonpriority unsecured debtors are paid over a period of 3 to 5-years, some portion of the debtor’s disposable income to settle their dues. A bankruptcy trustee is assigned by the court to oversee the proceedings and to distribute the dues as per the repayment plan. However, the proposed plan gets confirmed only after the approval of the judge at the Chapter 13 confirmation hearing. However, bankruptcy lawyers of Dallas based law firm Recovery Law Group inform that there might be objections to the plan.

            Who can object to the repayment plan?

            30 days after the filing of bankruptcy papers, a meeting of creditors (known as 341 meetings) takes place. In this, all interested parties (debtor, his/her attorney, bankruptcy trustee, and creditors) participate and discuss the proposed repayment plan. They can review the said plan and even file an objection to it (which is followed up in the confirmation hearing).

            The bankruptcy trustee needs to review the plan to check for compliance with bankruptcy laws. Apart from this, they are also required to check your income and expense documents to determine that the creditors are getting adequate repayment. In case you are paying less (than you can afford) to your creditors or your plan is not economically feasible, the bankruptcy trustee can object to the plan.

            Though automatic stay prevents all collection actions, it doesn’t necessarily put an end to the misfortune of the debtor. In case a creditor is dissatisfied with your plan, they can object to anything including bankruptcy trustee’s proposed action, any claim filed by the debtor or the position taken by the judge. Some common reasons for objections in a bankruptcy case include –

            • Expenses claimed by the debtor on Schedule J;
            • Exempted property listed by the debtor on Schedule C;
            • Proposed repayment amount by the debtor;
            • Bankruptcy trustee’s stance of abandoning debtor’s property instead of selling it;
            • Discharging of a specific debt or an uncollectible claim filed by another creditor;
            • Fees demanded by any professional appointed by the court or the debtor’s lawyer.

            Type of objections to the repayment plan

            Amongst the various objections raised against those against discharge against any specific debt or the general discharge hurt debtor the most.

            To file for general discharge objection, the creditor or trustee needs to file adversary lawsuit within 60 days of the date of the 341 meetings. To get a discharge dismissed, they also need to prove that any of the following acts took place during or before the bankruptcy case:

            • Debtor defrauded a creditor;
            • Either destroyed or lost necessary records;
            • Hid, transferred or destroyed property which was part of the bankruptcy estate;
            • Was unable to explain the loss of an asset;
            • Perjured himself/herself

            In case discharge is denied, the debtor remains liable for the debts after the dismissal of the bankruptcy case.

            Every creditor is fending for themselves in a bankruptcy case, therefore it is not uncommon to find creditors objecting to discharge of specific debts during adversary proceedings. In case a general discharge is granted, then all nonpriority unsecured debts will be discharged except for that which was objected against. This leaves the debtor’s resources available for the creditor after the end of the bankruptcy case. A certain debt may be declared non-dischargeable if:

            • If you forgot to mention it in your bankruptcy papers;
            • If it was due to getting property or money by fraud;
            • If it was done with malicious intent;
            • If it was due to embezzlement or larceny;
            • If it is a case of presumptive fraud (credit card charges for luxuries within 6 months prior to bankruptcy filing).

            Confirmation hearing details

            The confirmation hearing can be scheduled anytime within 45 days of the 341 meetings of creditors. Objections to the plan need to be written and filed after creditors meeting. If there are no objections, a confirmation order needs to be submitted. In case there are objections to the plan, your attorney can represent and argue on your behalf (unless the judge specifically asks your presence). During the hearing, bankruptcy debtor and all objecting parties can argue about the merits of their plan. If the judge has any questions regarding the plan, they might seek clarification. Time is given by the judge to settle the matter amicably, if not, an evidentiary hearing is scheduled.

            It is better to be prepared for any eventuality. Call 888-297-6023 to speak with experienced bankruptcy lawyers Dallas about how to get your bankruptcy discharged.


              *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 Credit Cards be Secured Loans?

              Can Credit Cards be Secured Loans?

              Credit card loans always relate to unsecured loans by default. That’s what most of us are used to hearing. However, there can be circumstances when credit card loan can be a secured one too. The basic distinction between secured and unsecured loan is that there is a lien or an asset attached as collateral for the lender to capitalize in order to recover the debt. This holds good only if the debtor defaults or misses payments due consistently. To learn more about loans, bankruptcy, and other financial information, log on to Recovery Law Group, the encyclopedia to address all your financial questions!

              What is a secured credit card?

              A secured credit card is usually offered in exchange for a deposit in the credit union or a bank. This credit offered usually attracts a lower rate of interest. The percentage of credit extended based on the deposit varies from scenario to scenario and person to person. A few people might only be able to access 50% of the deposit while others can access 120% of the same. Credit score, previous history, amount of deposit, etc., are some factors which a bank or a credit union considers before determining an appropriate percentage. The deposit account isn’t allowed any activity while the credit card is in use. The deposit account is basically frozen. Once the credit card is surrendered, the account is released. In this scenario, the deposit account acts as collateral and makes the credit card issued a secured one.

              Why opt for a secured credit card?

              Considering it is a secured loan and not a very justifiable solution, it is worthy to understand why people would like to opt for such a credit card. Most people use this as a last resort as they are unable to qualify for an unsecured one. This card is also secured by people who are not eligible due to their poor credit score and want to improve the same by improving their payment history. Secured credit cards are also a lucrative way of increasing the credit card limit slowly. However, there are many flaws in this type of cards too. Higher application fee, annual charges, maintenance fees, and other fees, make this type of card an expensive affair.

              The interest rates are high, you don’t even get grace period for repayment too. So, this is not a great alternative for sourcing funds for sure. If you are planning to get one for yourself in order to secure a better credit score it is worthy to ask your credit card company if they report to any of the three national reporting agencies or not. If they don’t, all your hard work to enhance the credit score could just go to vain. If you are not getting one and this is the only option, you are then out of options and there is no choice. However, you have a choice with respect to some of the best financial experts to address, solve and help with all your questions and concerns. Dial in +1 888-297-6203 now!


                *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 and Payday Loans

                Bankruptcy and Payday Loans

                Payday loans are a very innovative concept which is running around the United States quite contagiously today. It provides instant cash by keeping your future paycheck as collateral. Payday loans are a common point of discussion during bankruptcy as they can make the procedure complicated. While most people take payday loans to clear their existing debts, which may be credit card bills, utility bill payments, personal expenses, etc., the amount is usually limited to about 70-80% of the average paycheck. Just like credit cards, the interest charged on a payday loan is very high. It is an unsecured form of loan and does not have any asset backing and hence, falling into a vicious interest cycle is quite common and obvious. Need more tips on managing finances, log on to Recovery Law Group for more info.

                Concept of Payday loans

                Unlike credit cards or other loan forms, payday loans are highly liquid and are directly deposited in the bank account or are in the form of cash advances. The approval process is also quick, but the processing charge and interest rate are on the higher side. Ideally, the payday loan should be used in a very difficult circumstance and if you are falling back on it several times, its high time you had worked on controlling your finances. Payday loans are generally given on the basis of employment income and history. Credit score and other parameters often play a minimalistic role in determining eligibility to payday loans. Hence, it is the most common loan form for employed individuals with low credit score to access cash instantly.

                Your recent pay slips, employment tenure, etc., matter the most for payday loans. Though there are the state and federal agencies monitoring payday loan providers, it is up to the borrowers to not consider payday loans as a viable option. If it is a one-off situation that wasn’t anticipated then it could still be fine, however, if you need to look forward to a payday loan because your paycheck isn’t enough for meeting routine expenses, you might have just put your foot in the spider webbing.

                Can bankruptcy help in cutting the spider webbing?

                Since payday loans are considered as unsecured debt, bankruptcy can help significantly in managing or releasing the payday loan debts. Whether you file bankruptcy through Chapter 7 or Chapter 13, there are good chances of releasing the payday debts. However, if the payday loans were taken recently before filing bankruptcy, the lender might argue for your intention to not pay the loan and it might be converted a fraud transaction, which will not be released by the bankruptcy court.

                The bankruptcy trustee tracks 70-90 days of transactions hence, it is important to not file bankruptcy after taking payday loans for that period. The usage of these loans also has to be for the necessary expenditure. If any luxury items were purchased or the money was transferred to friends, relatives, parents, etc., for clearing their debt, there can be further consequences of retrieving money from the ‘insiders’. Making big transactions or purchases could also bring you under the scanner of the bankruptcy trustee.

                What is in your favor?

                The bankruptcy courts by default do not support or tend to like the payday loan providers. Hence, there are several favorable clauses that could prove the lender’s claims incorrect. For instance, the court regards the first payday loan as the transaction start date ignoring the recent loan transactions. This certainly helps in addressing the 90-day period that is under the trustee’s scanner. The only option left with the payday loan providers is to convert the transaction into a fraud one, which is not an easy task for sure.

                Payday lenders may also seek for security based on various different factors. It could be a post-dated cheque or a Demand Draft or any financial instrument with a promise of you paying them back in future. The payday lender might try to cash in the cheque even when you have declared bankruptcy and the ‘automatic stay’ has been applied. This is a violation, but litigation and court cases will consume a lot of time and money. The best way to handle this scenario would be by notifying your attorney, bankruptcy trustee and your bank about the post-dated cheque to the payday lender. The banks offer to a stop payment facility at a fee, which is derived based on the number of checks issued. You can consider paying the stop payment fee and preventing the payday lender from cashing a post-dated cheque.

                Need help get help

                Payday lenders often threaten for criminal cases as writing a bad check is one. However, the law is different during bankruptcy. By the illustrated above method, you can stop payment to your payday lender once you are in the ‘automatic stay’. Also, if the payday lender has cashed in the cheque just before you file bankruptcy, the same can also be retrieved for the bankruptcy estate under the Chapter 7 bankruptcy norms. Also, there are many fraudulent payday lenders around in the market who operate only by a website or an app. These websites charge a fee upfront for processing loans and just disappear. Such duping of customers has seen a typical rise in the recent 6-7 months.

                As per law, no upfront fees can be charged before processing a payday loan. Hence, a fee or charge before loan processing is a serious trigger. If you are confused and need help, reach out to 888-297-6203 for immediate professional help!


                  *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.

                  • Are You Filing for Bankruptcy? What Happens to Your Mortgage?

                    Are You Filing for Bankruptcy? What Happens to Your Mortgage?

                    Bankruptcy court acts as a shield between you and your creditors to provide you breathing space and a fresh financial start. Though the law is designed to provide respite to you, it does not do so at the cost of your creditors. You need to pay for your secured loans like mortgages. One of the best aspects of bankruptcy filing is the automatic stay which prohibits all sorts of collection actions against you. Thanks to it, your home and car cannot be foreclosed or repossessed. In case repossession is done, they have to return it. Moreover, any liens cannot be placed on your home, no wage garnishments, etc. can be done.

                    For mortgages, you need to ensure that you file for bankruptcy before the home is sold. The sale can be stopped, even if an auction is scheduled if you timely file for bankruptcy. Despite the power automatic stay has, Dallas based bankruptcy law firm Recovery Law Group enlighten, that creditors can have the stay lifted if you default on making mortgage payments. In case the creditors get their say in court, the bank can continue with foreclosure proceedings.

                    While filing for bankruptcy you need to be sure whether you wish to keep your home or let it go. In case you decide on leaving your home, you can stop making mortgage payments. In this case, the automatic stay will be lifted and banks can sell your home. In case your home was foreclosed without bankruptcy and sold for less than what you owe, you might have to pay the difference (also known as the deficiency). Opting for bankruptcy saves you from paying the deficiency. If you wish to keep your home, you need to choose the bankruptcy chapter carefully (Chapter 7 or Chapter 13).

                    Mortgages in Chapter 7

                    Your assets are classified into an exempt and non-exempt category. The non-exempt assets are surrendered which are subsequently sold to pay off the creditors. Any unsecured debts which remain after the process are discharged. Different states have different sets of exemption. In California, under Set 1 exemption, you can protect home equity between $75,000 and $175,000, while in Set 2 exemption, home equity up to $26,800 can be exempted. The equity is calculated as the amount borrowed for the purchase minus what you owe for the property. In case your home equity is not covered under the exemptions, you will find it difficult to keep it. If the equity is covered under exemptions, you might be able to keep your home as long as you make regular payments for it. You are also required to “reaffirm” your mortgage debt. Once you reaffirm the debt, it cannot be discharged even after bankruptcy.

                    Mortgages in Chapter 13

                    This chapter of bankruptcy involves a repayment plan which lasts for 3-5 years. Any unsecured debts which remain are discharged after the end of that period. If you wish to keep your home, you can include your mortgage payments in your repayment plan. Similar to chapter 7 bankruptcy, you might need to reaffirm your debts in this case too.

                    Other mortgages

                    In case your financial situation was worse and you had to take other mortgages on your home, you won’t be able to discharge second or third mortgages on your home or any home equity loan in a Chapter 7 bankruptcy if you want to keep your home. In the case of chapter 13, if your home is underwater, you might get a second mortgage or home equity line of credit discharged. The circumstances of discharge of the second mortgage depend on your circumstances and the judge.

                    While struggling with debt, it is important for people to make a conscious decision whether they wish to keep their home and if they do so, can they afford to make payments for it? In case of bankruptcy, any liability for deficiency in case of foreclosure is stricken, especially if your home is underwater. Though the prospect of losing your home is overwhelming, you need to make a decision with your income and assets in mind. An adept bankruptcy lawyer can help you make aware of the various options available when you file for bankruptcy. In case you wish to have a consultation regarding your debts, you can contact 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.

                    • How Does Bankruptcy Affect Your Health?

                      How Does Bankruptcy Affect Your Health?

                      People who are suffering from overwhelming debts often find bankruptcy as a way out. Bankruptcy is a legal way to reorganize your finances and get rid of debt so that you can get a fresh financial start. The two main types of consumer bankruptcy are Chapter 7 and Chapter 13. According to a new study, bankruptcy is supposed to not only give you a better financial start but is also good for your finances too!

                      Consumer Bankruptcy Codes Elaborated

                      As stated previously, Chapter 7 and Chapter 13 are the most common consumer bankruptcy codes, each having its own advantages. In chapter 7, your attorney and bankruptcy trustee sort your assets into exempted and non-exempt categories. State exemptions generally cover equity in the property (car and home), cash, up to a certain limit, retirement accounts, personal belongings, and other properties. The state of California has two separate sets of exemptions which cover different amounts of diverse properties. While the exempted property is left out, the non-exempt property is sold off to pay your creditors. In case all your property comes under exempt property, you don’t have to surrender anything. After the process ends, any and all unsecured debts are discharged or written off. Chapter 7 case is not meant for everyone, only those people who are in dire need of bankruptcy protection can file under this chapter. To be eligible for it, Los Angeles based bankruptcy law firm Recovery Law Group lawyers inform, you have to pass the state means test.

                      For those people who are unable to qualify for chapter 7, Chapter 13 is a good option. In this case, you and your legal team develop a repayment plan. This is drawn keeping in view the value of your non-exempt property and your income. Within 3-5 years of your repayment plan, you will be able to make payments on your home mortgage and car payments without losing any property. After the repayment plan is over, any remaining unsecured debts are discharged. Since this chapter provides an option for catching up on mortgage payments depending on your income, it is an excellent option for people with a steady income who wish to avoid foreclosure.

                      It is important to note that both chapters’ help gets unsecured debts such as medical bills, credit card bills or personal loans discharged. Such unsecured debts are completely erased at the end of your bankruptcy while secured debts like home and car loan are handled in a different manner. Your personal liability in secured loans is removed, i.e. if the property is foreclosed or repossessed and is sold for an amount less than what you owe, you are not required to pay the difference. But, if you wish to keep the property, you need to pay the amount due to you. In this case, you can either make payments for the property and keep it or surrender the property and leave any liabilities.

                      With both bankruptcy chapters,’ you get to avail the automatic stay benefit. Thanks to this provision, any collection actions by creditors or debt collectors are legally prohibited. Thus your property cannot be foreclosed or repossessed; you are secure from wage garnishment, collection lawsuits, threatening letters, and phone calls. With automatic stay in place, you get time to get your financial affairs in order. You can call 888-297-6203 to consult expert bankruptcy attorneys to explain in detail how the bankruptcy process works.

                      Debts and their relation to your health

                      There is no denying that financial troubles can wreak havoc on your life. Since you are constantly worrying about how to protect your family and provide for them without losing your assets, it is bound to take a toll on your health. Constant financial concern is the most prominent reason for stress in Americans, which often results in ill health. The higher the stress levels, the shorter your life expectancy can be. You are more prone to anxiety, hypertension, heart problems, diabetes, cancer, and other health disorders with elevated stress levels. Thus debt can be responsible for any ill-health you have.

                      As per a study conducted by the National Bureau of Economic Research, bankruptcy proves to be beneficial for a large number of debtors. The average income for people who filed for bankruptcy increased by $5,000 annually. Even the 5-year foreclosure rate is 20% lower for bankruptcy filers compared to those people who didn’t file for bankruptcy. The most interesting finding is that the 5-year mortality rate is 1.2% lower for bankruptcy filers than non-filers. This indirectly proves that financial stress is alleviated by filing for bankruptcy, thereby improving a chance for people to lead a quality life.

                      On average, any American house has nearly $16,000 in credit card debt alone! This is big money considering the current economy. Paying back such a huge amount is not easy since a large number of people are using a credit card to pay for monthly expenses and sometimes even utilities. This kind of financial stress can cause numerous health issues in individuals (both physical and mental). More often than not, people who are struggling with debt are unable to find a way to get out of this mess and improve their finances. However, bankruptcy is one of the best ways to get rid of your debt by either consolidating it or paying it off in small installments. In case you too are struggling to make financial ends meet, consulting a bankruptcy lawyer make things clearer for you. Get your case evaluated to find out the best possible way to deal with debts.


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

                        *Do you own a home?

                        Are you currently working?

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