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  • What does Bankruptcy mean for Senior Citizens?

    What does Bankruptcy mean for Senior Citizens?

    Financial troubles can hit anybody, anytime. Nearly half the senior citizen population in the U.S. was facing debts (mortgage, car loan, medical bills, etc.) in 2010, averaging at $50,000. When you have accumulated debts of such huge proportions, it is natural to be a bit worried as to how the debts are going to affect you and your heirs. While you are earning, there are still chances of you being able to repay the loan, but post-retirement, making monthly payments towards the debt is a bit difficult with a fixed income at hand. According to Los Angeles based law firm Recovery Law Group, many senior citizens often consult about their options with respect to debt.

    Options available for seniors to deal with debt

    The state of California offers a number of protections to senior citizens when it comes to debt collectors and collection actions. The Social Security, retirement accounts and other government benefits are protected by the law. These assets cannot be touched by any creditors who sue you for non-payment of debts. Many times, creditors refrain from filing a lawsuit against you since there’s not much that they can lay their hands on. The term “judgment-proof” is used to describe such a situation where almost all your assets are protected from collection actions. In case you are “judgment-proof” there is no need to file for bankruptcy to get rid of your debts. However, it is an option worth considering as your heirs might find have to bear the burden.

    When a debtor passes away, the debts he/she owed do not lapse with the death. Though they aren’t passed to the heirs, they definitely affect the estate. After death, all your assets (your estate) go into “probate” which provides ample opportunity to creditors to file claims for payment. When it comes to inheritance, the creditors are paid before anything is passed on to the heirs. Unfortunate circumstances may see emptying of bank accounts and selling of house, car, jewelry or any other asset. The only respite available is for your home, which might be exempted in case of a surviving spouse or minor heirs who reside there. The probate court sets aside some assets to care for dependants, while the remaining assets are used to pay the creditors. On the brighter side, your heirs won’t be held liable for any debts left after the probate but if you leave your assets to them in a trust and the trustee does not inform the creditors, your debts might invariably be passed on to your heirs.

    Bankruptcy and estate planning

    Though bankruptcy is not essential for senior citizens, they surely can benefit from it, especially debtors who are judgment proof. California provides bankruptcy exemptions which protect a huge part of senior citizen’s property like retirement accounts, government benefits, etc. from creditors during bankruptcy. Since old age is often accompanied by numerous medical issues, senior citizens often end up accumulating huge medical debts as healthcare is undoubtedly expensive. Since medical debt is an unsecured debt, it is wiped off in bankruptcy. Thus after bankruptcy, you will be devoid of any debt and can save your property which can be passed on to your successors.

    The effect bankruptcy has on credit score is a major consideration. Though bankruptcy has a negative effect, unpaid dues aren’t exactly helping to the cause. Since the majority of senior citizens already own a home and car, there isn’t much need to take any more loans. Thus, bankruptcy can have not much negative effect on the life of a senior citizen. Additional benefits include an end to the collection calls which are quite irritating. Despite you being judgment-proof, creditor harassment sees no end to see that they get a payment. Bankruptcy also helps relieve stress which can have numerous health benefits.

    Should you file for bankruptcy?

    Despite the advantages associated with bankruptcy, in case you have any doubts regarding it, you can call 888-297-6203 to get a better assessment of your financial situation. In case, you have mostly secured debts, bankruptcy will not be of much help for you, as this kind of debt is not discharged. Having large equity in your home is not a good option too as you might have to surrender it during bankruptcy. Discussion with an expert bankruptcy attorney can help you choose which set of the California state exemptions can help you protect your property. An estate planning lawyer can help you manage your estate in an efficient manner.

    Many people strive hard to build their property with the intention of giving it to their children or heirs. Despite bankruptcy being a good option to get rid of your unsecured debts, it is better that you consult an experienced bankruptcy and debt management attorney to find out other options of getting rid of debt. You have the option of challenging those debts which have passed the statute of limitations, i.e. cannot be collected from you or your heirs. Alternately, you could also ask for debt consolidation or settlement before you pass away. If you are a senior citizen who is struggling with debt, or are judgment-proof but wish to keep your estate secure (against your creditors) for your heirs, then consult a bankruptcy attorney for a free consultation and case evaluation.


      *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.

    • Is your Pension safe during Bankruptcy?

      Is your Pension safe during Bankruptcy?

      Getting pension benefits at the end of a hard and long career is what drives most people to work. When you retire, your pension is what you will be surviving on. However, during the course of your career, there might come a time, when you face financial problems due to which you might have to consider bankruptcy as an option to survive. Since in bankruptcy, some of your assets are used to pay off the creditors before your debts are wiped out, one of the major concern people have is whether their retirement funds are at risk? According to Los Angeles based bankruptcy law firm Recovery Law Group, your retirement accounts are protected in the bankruptcy process. This is because the law understands that people work hard and save money in pension and other retirement accounts to reap benefits at an age when it is not possible for them to work anymore.

      How are retirement accounts protected during bankruptcy?

      When an individual files for bankruptcy, everything they own comes under bankruptcy estate. Amongst these, some assets are protected by State bankruptcy exemptions (which vary from one state to another) which may include the equity in your car or home. Other assets which are saved due to exemption include any compensation plans, tax-deferred allowances, and any employer-based retirement plans. Since all of these are exempted, they cannot be a part of the bankruptcy estate and therefore cannot be used to pay back creditors.

      Sometimes, retirement plans are set as trusts. They are worded in a manner which makes it impossible for creditors to use them during bankruptcy. Thus, retirement plans are protected by a double layer of shield. However, any unusual trust is scrutinized by the bankruptcy court; i.e. if you structure a plan in the form of a trust which you are funding and you are the sole beneficiary, then such a trust is not protected during bankruptcy.

      The federal law has set a list of bankruptcy exemptions and also allows different states to have their own set of exemptions. States also offer the debtor the option of choosing from only the state exemption or choose between the state and federal bankruptcy exemptions. The state of California requires the debtor to choose the California state law exemptions, but some non-federal exemptions, such as those for retirement plans are also applicable in California.

      Federal exemptions for retirement accounts

      Changes made in the bankruptcy laws in 2005 were not exactly debtor-friendly, except for those involving the retirement funds. These accorded improved protection for debtors. As per the changes incorporated in the federal law, all retirement accounts and pension funds are protected from creditors, even in states where bankruptcy filers don’t have the option of choosing federal bankruptcy exemptions. What’s even better is that the exemptions amount is not limited. Few examples of federal exemptions include:

      • 401(k)s
      • 403(b)s
      • Defined benefit plans
      • Employee annuities
      • ERISA (qualified) pension plans
      • Government deferred compensation plans
      • Keoghs
      • Money purchase accounts
      • Profit sharing plans
      • Stock bonus plans

      However, there are limits to the exemptions provided. The traditional IRA and Roth exemptions are capped with the amount over $1 million.

      California pension payment and exemptions

      Californians who are contemplating bankruptcy due to immense financial pressure are often worried about their retirement funds. However, with federal law, California state law and specific terms of trust accounts, creditors find it extremely difficult to nick a penny from your retirement funds. Even when you have received money from retirement funds, the money is exempted, i.e. creditors simply cannot take that money because it is out of your pension accounts.

      Considering the fact that your retirement funds are protected by numerous layers of federal and state exemptions, it is important to not touch those funds if you plan to file for bankruptcy. You might be tempted to use the money from retirement accounts to pay off some debts. Since retirement funds are protected from bankruptcy, using that money to pay creditors is not a wise move. The money might not be enough to clear the debt, which will result in you still having some debt and without a source of income when you retire. You require the assistance of a financial planner or a bankruptcy lawyer to help determine the best course of action for you. If you wish to gather more knowledge about the bankruptcy procedure, feel free to contact 888-297-6203. Bankruptcy lawyers can explain the difference between using retirement fund money to pay off debts or using bankruptcy to get rid of debts while retaining your pension funds.


        *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.

      • Tax Mistakes to Avoid While Filing for Bankruptcy

        Tax Mistakes to Avoid While Filing for Bankruptcy

        Liquidation can frankly be quite overwhelming and confusing for an average person. Filing for taxes while considering bankruptcy (either Chapter 7 or Chapter 13) is double trouble. In case you are confused regarding tax filing during the trying times of bankruptcy filing, you can call expert bankruptcy attorneys at 888-297-6023 to find out about your options.

        Out of the two possible chapters under which individuals can file for bankruptcy is Chapter 7. This results in the discharge of all unsecured debts like a credit card, medical and even income tax debt in rare cases. Under Chapter 13, you are expected to make payments to the bankruptcy attorney as per the prescribed repayment plan for 3-5 years. After payment to creditors like income tax agencies and IRS, etc. the remaining unsecured debts are discharged post the repayment plan.

        Thus, filing for income tax is extremely important as per Dallas bankruptcy lawyers Recovery Law Group . As per U.S. Bankruptcy Code, before the commencement of bankruptcy case, the debtor’s recent tax returns are required. In fact, the returns for the past 4 years can also be required. The timing for filing bankruptcy needs to be perfect if you wish to make things easier for you.

        However, there are certain tax mistakes you should steer clear of if you are considering filing for bankruptcy.

        1. Take care of any refund

        Refund on taxes that you have received prior to filing for bankruptcy, might be seized by the government. In case you might be on the verge of getting a refund, protecting it through bankruptcy is the best option. Certain expenses like spousal or child payments, health care, etc. are essential debts and can be taken care of by the refund you have received. Consulting with an attorney can clear things up.

        1. Transferring your money to protect it is a no-no

        Under federal law, non-disclosing of monetary assets during bankruptcy is a violation and is considered perjury. If you are looking to avoid prison, don’t try to hide property in someone else’s name. An experienced bankruptcy attorney can help you with ways to protect your saved money during bankruptcy, without breaking any laws. Disclosing your assets to your attorney can easily help save them legally.

        Unlike popular perception that property not under your name cannot be touched by the court, bankruptcy has a weird way of handling things. Any assets transferred to family or friends prior to bankruptcy filing are seen as ways to protect them. This often causes the court to take harsh steps which include voiding the transfer to have the property back in your name or worse, dismissing of your bankruptcy case. In the case of latter happening, you will be required to refile the case which will result in additional fees and letting go of the automatic stay benefit.

        1. Delay paying back relatives

        During bad times, family and friends are often there to lend a helping hand. Often people feel obliged to repay them as soon as possible. However, if you are considering filing for bankruptcy, paying your relatives back might not be the brightest idea. Any payment made from tax refund will appear as one favoring a particular creditor over others. This may result in the bankruptcy trustee taking back the payment made to the relatives. If you wish to make any such payments, consult a bankruptcy attorney before going ahead with it.

        Family and friends are considered “insiders” and any payments made to them 1 year prior to filing for bankruptcy are considered preferential. An amount larger than $600 made to any relative within 1 year prior of bankruptcy filing will become a part of your bankruptcy estate. Any payment made to any creditor of over $600 in the preferential transfer period (1 year for family and relatives and 90 days for non-family creditors) needs to be disclosed.

        1. Do not make payments above $600 to unsecured creditors

        Any payments made within 90 days prior to bankruptcy filing need to be disclosed, especially if they are above $600. The bankruptcy trustee is bound to go through the records to see what payments were made. In case you wish to pay off some debts, prioritization is extremely important. Secured debts like mortgage payments or car payments, etc. should be your priority. Most unsecured debts like credit card and medical debts, etc. are discharged after bankruptcy. It should, therefore, be kept in mind that you shouldn’t pay off secured debts through unsecured debts like a credit card. Before making payments to any creditor, discuss with your attorney to understand the ramifications of your actions.

        1. Avoid buying luxury goods

        Since your spending habits will be studied extensively by the bankruptcy trustee, it makes sense to avoid overspending on unnecessary items like luxury goods, etc. when you are considering bankruptcy as a way out of the financial mess. These purchases and foreign holidays are things which will work against you during the bankruptcy process.

        Holding on to tax refunds during bankruptcy is the best option. Having an experienced bankruptcy attorney by your side can work wonders for you. You can use the tax refund to pay the bankruptcy fees so that you get some respite from adverse creditor actions.


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

          *Do you own a home?

          Are you currently working?

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

        • Criminalizing Private Debts

          Criminalizing Private Debts

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

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

          What leads to the arrest in private debt?

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

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

          Agonized with threatening letters & creditor lawsuits

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

          ACLU’s recommendations on Debt practices

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

          ACLU’s report suggests the below recommendations:

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

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

          Assistance to pay off debts

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


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

            *Do you own a home?

            Are you currently working?

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

          • Rejection of Bankruptcy by the Supreme Court

            Rejection of Bankruptcy by the Supreme Court

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

            Let’s understand the case in detail:

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

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

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


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

              *Do you own a home?

              Are you currently working?

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

            • What is Corporate Bankruptcy?

              What is Corporate Bankruptcy?

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

              How a company faces the situation of bankruptcy?

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

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

              Recommended Chapter for Corporate Bankruptcy

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

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


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

                *Do you own a home?

                Are you currently working?

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

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

                Will Filing for Bankruptcy Get Rid of Your Medical Debt?

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

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

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

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

                Should you use bankruptcy to be rid of medical debt?

                We, at Recovery Law Group, Dallas, will help analyze your cause of worry in detail before rendering any solution. We will help and explain you all the benefits related to filing for bankruptcy under chapter 7 for medical debts and implement all the best legal tools to help you come out of the current situation. At Recovery law group, you will find experience attorneys who have previously dealt with similar cases handling your case. Not only will they give you the best way forward but also guide you with any other alterative available in your case. For further clarification on your case, you can contact the firm at 888-297-6203.


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

                  *Do you own a home?

                  Are you currently working?

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

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

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

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

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

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

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

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

                  Can debts be discharged even after unfavorable judgment?

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

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

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

                  What effect can the language of judgment have?

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

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

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

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

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

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

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


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                  • Planning Your Retirement

                    Planning Your Retirement

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

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

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

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

                    State-wise Variations

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

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

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

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

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

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

                    Retirement needs – Estimate and Save

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

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

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

                    How to Save?

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

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

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


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                      *Do you own a home?

                      Are you currently working?

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

                    • Payday Loans: Myths & Facts

                      Payday Loans: Myths & Facts

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

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

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

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

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

                      Payday loans are one of the last resort by individuals facing economic problems before eventually filing for bankruptcy. In case you have reached the point, where you have to rely on payday loans, you should get an evaluation by expert bankruptcy lawyers by calling at phone number – (888-297-6203).


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

                        *Do you own a home?

                        Are you currently working?

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