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  • Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Debts That You May Continue to Pay During Chapter 7 Bankruptcy

    Chapter 7 is advocated as one of the best Chapters to release a good amount of debt with zero obligation after the bankruptcy process. However, this might not hold true under some scenarios. The filer might have to continue to pay out some of the debts during and after Chapter 7 bankruptcy. To assess if Chapter 7 could actually kill all your debts or not, it is best to analyze some of the debts, you may still be obliged for even after filing for Chapter 7 bankruptcy. For more information relating to bankruptcy and Chapter 7, log on to Recovery Law Group.

    1. Any debt that has been incurred after filing for bankruptcy

    Any form of expense, debt, or bills that have been incurred after the filing of a bankruptcy will still hold you liable for clearing the same. This is referred to as a post-petition debt in legal terms. Some of the common debts that could fall under this category can be listed as follows-

    • Child support or alimony
    • Utility bills, taxes, insurance payments
    • Rent or lease dues
    • HOA or condo fees

    Some of these expenses that have been incurred before the bankruptcy filing will also not be wiped off. Child support, alimony, and taxes debt will usually not be discharged and are only wiped off under rarest of rare circumstances. The debts which will be wiped off will again depend on the bankruptcy court’s judgment.

    1. Secured Debts

    Debts which have been secured by an asset or collateral is referred to as secured debts. These are debts which are usually of high dollar value. Some of the common examples of secured debts can be listed as follows-

    • Home mortgage or home equity line of credit
    • Car loan
    • Business property loan

    The discharge or release of these debts depends on whether you agree to surrender the collateral or security of the debt. If you intend to keep the asset, you might have to pay off the debt in full. You might still get part of your debt released if you prove to the court how essential the particular asset is and impacts income generation. If you decide to keep the asset and pay off the debts, you cannot afford to miss the payment then. During bankruptcy, the lender can pass a motion and exercise lien on the asset or can directly access the asset after the bankruptcy court has closed your bankruptcy case.

    1. A brief break for your non-dischargeable debts

    Some debts like student loans, taxes, government dues/penalties/fines, etc., can freeze when you file for bankruptcy. You get a brief respite from those dues till your bankruptcy case is in the progress with the bankruptcy court. However, this by any means does not make you less accountable or liable for all dues during the bankruptcy phase as well as before and after bankruptcy. It just gives you a breather to re-assess and get things together.

    Voluntary debt repayment

    There are scenarios when you had like to pay off some of the debts. This usually happens for debts owed from related people, medical practitioner, or a particular lender who has supported the most. To pay off debts, you might not be able to use any of the nonexempt assets that are to be liquidated for repayment to lenders under Chapter 7 Bankruptcy. The best approach to voluntary debt repayment would be to initiate such payments after the bankruptcy case is closed by the court. To know more such important and smart tips, call 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.

    • 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.

      • 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.

        • What Impact Does Low Bankruptcy Filing in Los Angeles has?

          What Impact Does Low Bankruptcy Filing in Los Angeles has?

          Most of the people living in cities like Los Angeles and Dallas, TX face the dilemma of whether to file for bankruptcy or not. In the last decade, there were quite a large number of people who used to file up for bankruptcy to overcome their debt. However, this number has rapidly declined in the past few years to such an extent that it has reached to lowest of the past 10 years. According to the statistics shown by the United States Bankruptcy Court, the number of bankruptcy filings in Central district of California has dropped down to 9415 in the first three months of the year 2017 and this number is the lowest ever since the year 2007.

          Here we will present some of the statistics based on the local trend shown in the filing of bankruptcy that will help you to understand the impact of reducing filing bankruptcy numbers and hence to decide whether it would be favorable to you or not.

          Latest trends in bankruptcy filing:

          It can be easily deciphered by seeing the above-mentioned figures the filing of bankruptcy has enormously declined in the past 10 years and it has hit a historic low. However, this does not mean that people have overcome the problem of debts completely. Still, there is a large crowd that is filing for bankruptcy to overcome their debts. According to the data presented by the central district of California’s federal bankruptcy court which involves Los Angeles, Riverside, Orange, San Luis Obispo, San Bernardino, Ventura, and Santa Barbara it can be observed that still their bankruptcy filing is one of the most popular ways to get rid of debts.

          As per the data presented in the year 2017, the following numbers can be noted:

          • A decline of 7.6% in chapter 7 filing in which 11769 filings are new.
          • A decline of about 4.1% in chapter 13 filings with 4070 new filings
          • The overall decline of 6.7% in bankruptcy filings with total 15996 new entries

          These numbers were much larger as compared to the ones in the last decade. According to the data of the year 2007, there were about 9400 bankruptcy filings under chapter 7 in Los Angeles which accounts for a 60% increase since the year 2006. There was further an increase of 72% in the next year which is 2008 and it continued till the year 2011 but after that, it gradually started to decline and touch the lowest trend in the year 2017.

          What is the reason for reducing bankruptcy filings?

          It can be inferred that the number of bankruptcy filings has rapidly declined in recent years. Hence it is very vital to analyze and determine the reasons behind this decline. This reduction is not only in Los Angeles and California but is prevalent in the entire United States.

          One of the most speculated reasons behind this decline as stated by the specialists is the decline in medical debts which accounted for potential debts for most of the Americans. Since it is a well-known fact that medical bills accounted most of the expenses by people of United States, it is obvious that reduction in Medicaid bills due to affordable care act and touted economic recovery, have significantly affected the bankruptcy filings.

          The working mechanism of bankruptcy explained:

          The main purpose of bankruptcy is to discharge the debts. As per the provisions of chapter 7 which is termed as the liquidation bankruptcy, an indebted person has to make zero repayments if he is found eligible for it and files for the bankruptcy under chapter 7. He can also keep is property if he uses the exemption law of this chapter. Hence he is able to get rid of various debts via the bankruptcy discharge. However, if you fail to meet the eligibility to file bankruptcy under chapter 7, then you have another option- chapter 13. Filing for bankruptcy under chapter 13 helps you to make a repayment plan and also to reorganize the debts which will eventually prevent you from problems like foreclosure. One of the most amazing benefits of filing bankruptcy is that it helps you to get rid of the creditors and exasperating money collectors by providing an automatic stay.

          Is filing bankruptcy a boon or a bane?

          To know whether it would be beneficial for you to file for bankruptcy or not, you must first consult a well learned and wise bankruptcy attorney like Recovery Law Group and discuss your case with them. You can contact the team on 888-297-6203 and take advice for your case. A good bankruptcy attorney would be able to precisely tell you if you should file for bankruptcy or not and whether you should file for chapter 7 or chapter 13 depending on your account and debt status. You must not fall into the trap of temptations of filing bankruptcy yourself as there are many terms and conditions that you might not be aware of.


            *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.

            • Can tax debts be discharged during bankruptcy?

              Can tax debts be discharged during bankruptcy?

              Accumulation of unpaid dues can lead to people being burdened by debts. Bankruptcy is an excellent way to get many debts discharged. However, being able to get all debts discharged is extremely tough, though not impossible. Unsecured debts are often discharged after bankruptcy however debts such as education loan, government taxes, and child and spousal support, etc. cannot be discharged during bankruptcy.

              However, Los Angeles bankruptcy lawyers Recovery Law Group say that even such debts can be discharged depending on the type of bankruptcy.

              For individuals filing chapter 13 bankruptcy, tax debts are paid off as per the repayment plan; while in chapter 7 bankruptcy, some tax debts are discharged depending on the nature of tax and the duration of the debt incurred. To get federal tax debt discharged under chapter 7, you need to fulfill certain requirements.

              These include:

              • The debt must be more than 3 years old
              • The debt must be income tax related and not payroll or fraud penalties
              • Prior to bankruptcy filing, the taxpayer must have filed tax returns properly for more than 2 years
              • It is important that the taxpayer has made no evasion of taxes or any fraud related to tax returns previously
              • Tax assessment by IRS must be performed a minimum of 240 days prior to a bankruptcy filing

              In case the aforementioned taxes are discharged, any penalties assessed on them are also liable to be dischargeable. Post discharging on debts, IRS cannot indulge in wage garnishment or any other action for collection of the debts. In case you need any assistance regarding queries about personal bankruptcy, consult expert bankruptcy attorneys at 888-297-6023 to put a stay on repossession and foreclosure as well as getting rid of your 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.

              • What Happens if You Miss the 45 Day Deadline for the Personal Financial Management Class Mandatory Necessary for Bankruptcy?

                What Happens if You Miss the 45 Day Deadline for the Personal Financial Management Class Mandatory Necessary for Bankruptcy?

                It is not that easy to get rid of your debts, even with bankruptcy. Not only a lot of paperwork is involved for filing the petition, but you are also required to take a financial management course and provide a certificate of completion in the court to get bankruptcy discharge before you can rebuild your financial situation. (more…)

              • Should I Avoid Summons if I Plan to File for Bankruptcy?

                Should I Avoid Summons if I Plan to File for Bankruptcy?

                Recurring debts and overspending, as well as some ill-fate, can cause financial problems in anyone’s lives. If you are facing issues regarding the shutdown of utilities or foreclosure, repossession, etc. or are at the receiving end of legal actions due to non-payment of dues and similar debts, then you might be in for some tough time. Creditors and debt collectors can resort to legal actions wherein they can file summons with the court so as to make a debtor answerable in the court, often with the intention to get a garnishment. (more…)