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Exploring Debt Relief in California

admin — Thu, 09 Feb 2012 09:22:37 +0000

Exploring Debt Relief in California

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Home Page > Law > Bankruptcy > Exploring Debt Relief in California

Exploring Debt Relief in California

Posted: Feb 07, 2012 |Comments: 0

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California remains one of the most beautiful states in which to live. However, the cost of living in the state is high. Sadly, the economy of the state has also taken quite a tumble in recent years. The unemployment rate has grown and small businesses are shuttering. Because of this, many have found themselves in a great deal of debt. While the situation is serious, it is not dire. There are debt relief options available to those who may be struggling financially.

When you are strugging financially, you will not be in charge of your own life. Rather, you will be living to serve your lenders since paying your obligations becomes your prime responsibility. To overcome such issues, it is necessary to seek relief from your debts.

The Golden State is home to a great many different banks and credit unions. These financial institutions could provide a helpful solution to a debtor’s woes in the form of a debt consolidation loan. A loan of this nature is intended to combine several debts under one single loan with a lower rate of interest. This makes the ability to pay down the debt much easier. Additionally, having to pay only one monthly payment on a line enhances cash flow liquidity. When your cash flow as increased, you can take further steps for debt relief since you cash flow will have increased.

While a consolidation loan has the potential to be a tremendous help, those who are dealing with a massive amount of debt might be suffering from poor credit. This makes acquiring a consolidation loan difficult. Thankfully, there are other debt relief methods available in the state of California.

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One approach you could take would be to set up a meeting with a credit counselor. While a credit counselor does not provide direct debt relief in terms of reducing the amount you owe, the help and advice of the counselor could prove enormously helpful. The advice could provide a proper course of action in which to cut down budgetary expenses in order to follow a logical and proper path of paying back the debt’s which are owed. Often, the advice of a credit counselor could be very simple yet those without proper insight into debt management might not have ever though of it.

For those who may have a serious debt situation which has become incredibly difficult to manage, debt relief may come in the form of a debt consolidation service. These services will negotiate with your lenders to devise the restructuring of your debt. The service could negotiate for lower monthly payments, lower interest rates, and even a partial forgiveness of the debt you owe. The consolidation service will then issue payments to all your lenders based on a single monthly fee you would pay the service.

When your debts have reached the point where you may be seriously considering filing bankruptcy, you may wish to explore options for debt settlement. A debt settlement can be considered an offer in compromise where a portion of the debt owed is paid as an alternative to defaulting on the debt. While not the best option to explore, it can aid in helping you put an end to the massive amount of debt hanging over your head. Debt settlement services will handle the various tasks required to enter into such an agreement with the lender.

If you live in the state of California and are struggling with a great deal of financial stress, you can take solace in the fact there are many debt relief options available to you. Why not take the steps to access them?

FIDELITY LAW is a Professional Corporation consisting of expert bankruptcy Attorney in California , who specialize in debt relief ca , debt cancellation and chapter 7 bankruptcy related topics.

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Are there Qualifications Required for me to File for Chapter 13 Bankruptcy?

admin — Thu, 09 Feb 2012 09:22:34 +0000

Are there Qualifications Required for me to File for Chapter 13 Bankruptcy?

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Home Page > Law > Bankruptcy > Are there Qualifications Required for me to File for Chapter 13 Bankruptcy?

Are there Qualifications Required for me to File for Chapter 13 Bankruptcy?

Posted: Feb 08, 2012 |Comments: 0

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Having experienced Arizona bankruptcy lawyers assist you in your financial decision-making allows you to be more informed when considering to file for bankruptcy. In most cases, there are bankruptcy laws you might not be aware of that can be brought into light by a lawyer.

Not everyone can file for Chapter 13 since there is a set of limitations as to who may file for this type of bankruptcy. Generally, an individual consumer or an unincorporated business is able to file for bankruptcy. But there is a limit as to the amount of debt you owe. The total amount of unsecured debts credit cards and doctor and hospital bills should not exceed $360,475. While the total amount of secured debts such as mortgages, auto loans and student loans should be less than $1,081,400. This is a mandated Chapter 13 debt limits in Arizona.

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You should be able to prove that you have the income to make monthly payments to your creditors in order to pursue a Chapter 13 bankruptcy. You do not need to have a stable job to qualify for this. Other considerations are income you get from rent or regular benefit payments.

Furthermore, you may not file for Chapter 13 when you have filed for one in the past 180 days. The debtor is also required to take credit counselling from any of the agencies approved by the US Trustee’s Office six months before filing for bankruptcy.

Should I really file for Chapter 13?

The financial situation of each person is different. What works for one may be detrimental to another. Nonetheless these are some of the signs that would suggest bankruptcy might be the route to take.

Your debts are mostly unsecured.
Your medical bills are more than what your insurance covers.
You have few assets.
You have minimal or no savings.
You are behind in your payments for more than one bill.
There are income taxes you cannot afford to pay.
Some of your properties have already been repossessed.
Lawsuits have been or are being filed against you.
Creditors are aggressively taking action to demand payment from you through phone calls, letters and personal contact.

These are not strictly set in stone however. Perhaps there are a few more financial details that you are worried about that can only be adequately addressed by Arizona bankruptcy lawyers. They have comprehensive experience that works to your advantage. In due course, you may very well get the financial freedom that has been avoiding you for so long.

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About the Author:
Steve Anderson is one of the lawyers of Pew Law Center. Arizona bankruptcy help people get the protection and debt relief they need under federal bankruptcy law.
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Chapter 7 Bankruptcy: Questions and Answers

admin — Wed, 08 Feb 2012 10:09:39 +0000

Chapter 7 Bankruptcy: Questions and Answers

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Home Page > Law > Bankruptcy > Chapter 7 Bankruptcy: Questions and Answers

Chapter 7 Bankruptcy: Questions and Answers

Posted: Feb 01, 2012 |Comments: 0

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What is Chapter 7 Bankruptcy?

Chapter 7 is a section of the U.S. Bankruptcy Code that allows someone with a lot of debt to receive discharge (forgiveness) from all of his or her dischargeable debts, and orders the creditors of those dischargeable debts to FOREVER stop their attempts at collecting the discharged debts. Once a debt is discharged, a debtor is forever relieved of the obligation to pay a debt.

What are common examples of dischargeable debt under Chapter 7?

Some common examples of debt that can be discharged under Chapter 7 are consumer debt (credit cards), medical bills and utility bills.

What kinds of debt are NOT dischargeable?

Some examples of debt that cannot be discharged are student loans, child support, alimony, certain taxes, debts incurred as a result of defrauding or misleading a creditor, and any debt not listed in the Chapter 7 bankruptcy petition.

Am I eligible?

In order to file for bankruptcy in New York, you must be a New York resident. Two criteria determine your eligibility as a New York resident to file for Chapter 7 bankruptcy – assets and income.

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Assets:

Under New York law, an individual is allowed to protect certain basic assets from their creditors; this is called an exemption or exempt property. So long as the value of your assets do not exceed the statutory limitations, you may claim your property as exempt. For example, so long as your vehicle’s Kelly Blue Book (”KBB”) value is not over the permitted limit, you will be able to keep your car. However, even if it is worth more than the exemption will allow under the KBB standard, your attorney from Gehi & Associates can request an individualized evaluation of the value of your vehicle (at no cost to you). Most debtors who file with the assistance of Gehi & Associates are able to maintain possession of their personal vehicles.

Income:

Under federal Bankruptcy law, most individuals or couples filing for protection under Chapter 7 must now meet certain eligibility requirements under a “Means Test.” The professionals at Gehi & Associates can help you determine if you meet the means test standard. This can be a bit complicated, but in essence you must show that for the six months prior to filing for bankruptcy your average monthly income was below the median income for New York, based on the size of your household. If this is not the case, you may still be able to file under Chapter 7. Otherwise, you may be eligible for Chapter 11 or Chapter 13 Bankruptcy relief. Let the experts at Gehi & Associates walk you through this complex process.

Why do I need a lawyer to file for bankruptcy?

The bankruptcy process can be confusing and overwhelming. It involves complicated intersections of Federal and state law, and many non-attorneys find the court-appointed trustees handling their cases to be intimidating and brusque. While a bankruptcy discharge can bring much-needed relief to your family, the process itself can be very stressful. Let the professionals at Gehi & Associates put your mind at ease.

Okay. I want to see if I qualify for Chapter 7. What is the next step?

Gehi & Associates will be happy to offer you a free bankruptcy consultation. Just call us at

(718) 263- 5999. During your free (strictly confidential) consultation, we will have a conversation in which you tell us about your current situation based on your debts, assets, income and monthly expenses. Then, together we will explore the best path for you, whether it’s Chapter 7, Chapter 11 or Chapter 13 Bankruptcy. You will receive patient and comprehensive advice from experts who understand what you are going through. Bad things happen to good people, and it is our job to help you get your finances back on track. Please let us help you.

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About the Author:
Naresh M. Gehi is an Bankruptcy Attorney at Law with two offices located in Queens . For assistance in filing bankruptcy, please call (718) 263-5999 to schedule an appointment for a FREE personal consultation. Or, visit our website at http://www.nybankruptcyinfo.com/ We also specialize in matters relating to, but not limited to, immigration law and divorce.
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Mistakes In Chapter 7 Cases

admin — Wed, 08 Feb 2012 10:09:38 +0000

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Mistakes In Chapter 7 Cases

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Home Page > Law > Bankruptcy > Mistakes In Chapter 7 Cases

Mistakes In Chapter 7 Cases

Posted: Feb 01, 2012 |Comments: 0

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The bankruptcy process is not meant to be inherently difficult, but there are several rules and guidelines that must be followed in order for a case to be successful. Debtors should be adequately prepared coming into the process and be aware of certain actions that could influence the outcome of their case. A good rule of thumb before filing for bankruptcy is to be still and wait. Making certain changes could impede the case, preventing a debt discharge.

Debts

A common temptation among bankruptcy filers is to try and pay down debts or boost income before filing for bankruptcy. The total amount of debt is extremely important when filing for bankruptcy because it is a big factor in determining eligibility. Reducing debts prior to filing could potentially disqualify an individual, leaving them without the protection they need. Increasing one’s income prior to filing could also impede their chances at qualifying for bankruptcy, especially in a Chapter 7 case.

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There are some cases in which people accumulate more debts prior to filing for bankruptcy. These actions could be considered fraudulent and lead to serious consequences. Even if debts are acquired accidentally prior to filing, they may not eligible to be included in the case. Bankruptcy laws prohibit debts $600 acquired within 90 days of filing from being eligible for discharge. Cash advances acquired within 70 days prior to filing that exceed $750 may also be disqualified.

Assets

A debtor’s assets are extremely important when evaluating a person’s bankruptcy case. The court uses a list of assets to determine eligibility and potential for debt repayment. Fear of losing assets to creditors often motivates people into selling or giving away assets prior to bankruptcy. Not only may these actions be considered fraudulent, they are generally unnecessary.

The reason is that bankruptcy exemption laws protect much of a debtor’s assets in a Chapter 7 case. In most cases, a person’s house, car, personal property and other assets will be exempt from liquidation by creditors. Although selling assets before bankruptcy is not strictly prohibited, the debtor must follow certain rules. Any asset that is sold prior to bankruptcy must be sold for fair market value and the income received from the sale must be reported to the court on the bankruptcy petition.

Some people choose to liquidate retirement or investment funds prior to bankruptcy, which creates a similar problem as with other assets. Without the reporting of the money in these funds, the court cannot accurately evaluate a debtor’s financial situation. Further, these funds are typically protected under bankruptcy exemption laws as well.

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About the Author:
Christopher understands that financial hardships can affect honest, hard-working people. Growing up in a very blue collar family and rural area of Indiana , money didn’t always come easy for his parents. The struggles his family faced in his childhood made a significant impression on his business philosophy today. As a Fort Worth bankruptcy attorney his practice has given him the opportunity to directly impact the lives of many people. For more information visit: http://leebankruptcy.com
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Chapter 7 – Who Is Eligible?

admin — Tue, 07 Feb 2012 16:29:44 +0000

Chapter 7 – Who Is Eligible?

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Home Page > Law > Bankruptcy > Chapter 7 – Who Is Eligible?

Chapter 7 – Who Is Eligible?

Posted: Feb 02, 2012 |Comments: 0

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You can file for Chapter 7 bankruptcy unless: 1) you can afford to repay under Chapter 13 bankruptcy plan because you make more money than the median income in your state; or 2) you’ve previously received bankruptcy discharge/case dismissal; or 3) you haven’t participated in mandatory credit counseling; or 4) engaged in fraudulent activities.

You can afford to eventually repay your debt under Chapter 13 bankruptcy plan

You need two figures to determine your eligibility for Chapter 7 bankruptcy: 1) your “average monthly income” in the six months before you file for bankruptcy; and 2) “median family income” in the state you file (see table below). If your income is below the median family income, your filing will not be presumed frivolous. To calculate your “average monthly income,” you will have to add up all of the income you received in the six months prior to filing for Chapter 7 bankruptcy and divide it by six.

Average monthly income

To calculate this figure for Chapter 7 bankruptcy purposes, you have to include the following types of income:

- wages, tips, and commissions;

-gross income from business, profession, or farm;

- interest, dividends, and royalties;

- pensions and retirement income;

- rents and other income from real property;

- workers’ compensation;

- disability insurance;

- unemployment compensation;

- child or spousal support;

- annuity payments;

- windfalls (for example, lottery winnings)

You do NOT have to include the following types of income for the Chapter 7 bankruptcy “average monthly income” calculation:

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- Social Security retirement benefits;

- Social Security Insurance;

- Social Security Disability Insurance;

- Supplemental Security Income;

- Temporary Assistance for Needy Families;

- income tax refunds;

- payments to you as a victim of terrorism, domestic or international.

Once you’ve calculated your average monthly income, you need to compare it to the “median family income” for your state. If your average income is significantly higher than the applicable figure from the table below, you might have to file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy. To determine your eligibility for Chapter 13, you will have to do some calculations called the “means test.”

Median family income for bankruptcy calculations

The median family income figures change approximately twice per year. The last several times that these figures were updated, the median income decreased in California and some other states. There are no definitive court guidelines to determine your household size but most courts adopt the census methodology, under which you can include all of the people that occupy your house/apt., whether they are related to you or not, or whether they are your dependents for tax purposes. Roommates, however, are not members of your household, unless you act as a single economic unit by commingling funds and sharing expenses. Children living with you part time as part of a joint custody arrangement are a trickier issue which is to be determined on a case-by-case basis.

As of February 1, 2012, median annual family income for a 1 earner in California is $47,683, for 2 earner family it is $61,539, and for a 3 earner family it is $66,050. Note that the figures above represent annual incomes, whereas you need to calculate your income for the last six months.

You’ve previously received bankruptcy discharge or case dismissal

You cannot wipe out your debt in Chapter 7 bankruptcy if: 1) you received a bankruptcy discharge in a previous Chapter 7 case filed within the last eight years, or 2) you received a bankruptcy discharge under Chapter 13 in a case filed within the previous six years. The six-year rule does not apply if you’ve paid at least 70% of your unsecured debts under Chapter 13 bankruptcy discharge.

You cannot receive a Chapter 7 bankruptcy discharge if your previous Chapter 7 or Chapter 13 bankruptcy case was dismissed within the last 180 days for one of the following reasons: 1) you violated a court order; or 2) requested the dismissal after a creditor asked to lift the automatic stay.

You haven’t participated in mandatory credit counseling

Mandatory credit counseling is an easy requirement to meet, so don’t let this small obstacle slow you down.

Fraud

If the bankruptcy trustee obtains evidence that you gave away your property to relatives, friends or favorite creditors shortly before filing, bought luxury, or engaged in similar suspicious activity, you may be ineligible to claim bankruptcy. Voluntary unemployment, not being able to explain how you got to the point where you are and where your money went will also raise red flags.

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About the Author:
San Diego bankruptcy lawyer Sergei Tokmakov.
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