Pre-Screened Los Angeles Bankruptcy Attorneys 800-723-1391

Eligibility For Bankruptcy

2008-10-21T11:58:00.000-07:00

The bankruptcy laws in earlier times used to affect the debtor harshly as the creditors used legal and physical methods to get back their credits. But as time changed, new bankruptcy laws evolved as well as older ones were amended to make the laws more permanent and beneficial for both the debtors and creditors.

If you are facing a financial crisis then you should get the help of a bankruptcy lawyer that can help you understand the complexities of chapter 7 and chapter 13 and other procedures related to it.

About Chapter 7 Bankruptcy: Chapter 7 bankruptcy: otherwise known as liquidation is most common and is proposed for the discharging of the unsecured debts such as medical bills, credit card debt, and unsecured personal loans.

These types of bankruptcy can be completed within a period of months. It gives trustees, the ability to pay creditors by liquidating the non-exempt assets, although due to problem of absence of non-exempt assets among people who are filing the chapter 7 bankruptcy, the trustees are able to keep their property and can easily eliminate the debts which are unsecured.

Eligibility

The qualification for being eligible to file a chapter 7 bankruptcy is the debtor must be an individual, a corporation, a partnership or any other business entity.

The first thing that will be done to check your eligibility is that your average income for 6 months earlier to the filling date and comparing it with the median earnings of the state in which you reside if your average income is below that median income then you are eligible to apply. One another important eligibility criteria is to be able to discharge your non-exempt debts you should have unsecured debts such as consumer debts, medical bills, or payday loans.

There are certain conditions that make you ineligible and you should take care about these:

1. If you have enough disposable income to repay your debts , after cutting the allowed expenses and important debt payments for repaying small portion of the unsecured debts on a five-year repayment phase

2. If you have already attained a chapter 7 bankruptcy earlier within a time period of the last eight years prior to the time of filing.

Proceedings and working:The chapter 7 bankruptcy works on the concept that any of the secured assets a petitioner has will be handed over to an estate which is a legal that becomes the temporary owner of all secured assets and the creditor has no right to liquidate these assets until the case is over.

To find a Pre-Screened Lawyer in your area, please call our 24Hr Unbiased Lawyer Referral Hotline at 661-310-7999.

Finding Answers to Your Bankruptcy Questions

2008-10-21T11:53:00.000-07:00

In today's very tough economic times, the process of filing bankruptcy may have crossed your mind. This is not a decision to be made lightly and should be considered only as a last resort because bankruptcy is going to have multiple long term negative effects on you, not the least of which is that it will be prominently shown on your credit report for the next 7 to 10 years.

So where do you go to get your bankruptcy questions answered? Obviously you are doing research on the Internet which is a great place to start. But there are many facets to bankruptcy that you need to understand before you can make an intelligent decision as to whether to pursue filing or not. With the recent sweeping changes in bankruptcy law, it is no longer something you can or should do on a whim or if you are simply tired of paying your bills every month.

First of all, what bankruptcy alternatives to you have? You probably have more than you realize, many of which are listed at our web site. Have you considered debt consolidation? Not a debt consolidation LOAN because another loan is just about the last thing you need right now, but using a debt consolidation service. You may also have options for debt settlement which has allowed many consumers to avoid bankruptcy.

You need to realize that with the new bankruptcy laws, one of the things that will be done is to prepare a very detailed financial statement on where you are financially at this point in time. This will be presented to the federal bankruptcy judge, who will examine it and make a determination as to whether or not you will even be allowed to file. Yes that's right, you may not even be approved to file if this financial information is not presented in the right format or in the right light.

This aspect is where you should consider using a qualified bankruptcy lawyer to help you with this process. They can analyze your situation since they are very familiar with the laws and especially how those laws apply in your state. They can recommend options and alternatives, and if bankruptcy is indeed your best option, they know how to present your financial information in the right light so that it can be approved to file. You should not be concerned about the lawyer's fees, since the vast majority of people have found that using a lawyer saves them much more in time, money, and assets that more than offset those fees. Contrary to the way it worked in the past, bankruptcy is no longer a do-it-yourself process.

Have you analyzed your outstanding debt to determine what types of debt are there? If not, you should, because there are certain types of debt that cannot be discharged by any chapter of bankruptcy. So if your debt is composed of a large percentage of this type of debt, filing bankruptcy is not going to do you any good whatsoever.

At this point in time, you undoubtedly have a number of bankruptcy questions that need and deserve answers. You need to know what your options are and the best way to proceed because doing nothing is absolutely the worst possible action.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline at 661-310-7999.

Filing bankruptcy might be the answer.

2008-10-21T11:50:00.000-07:00

Find a pre-screened attorney in Los Angeles

2008-10-21T11:41:00.000-07:00

We strive to provide a service to the public that allows them to find legal assistance – regardless of their current legal or financial situation. We are dedicated to the needs of businesses and everyday citizens seeking counsel from attorneys with a proven track record and dedication to perform to the best of their abilities.

Click here to get a referral or to learn more about using the online referral form, and please contact us if you have any questions or comments.

We invite you to contact us at any time to discuss your circumstances. Simply fill out the online referral form or call us directly for immediate information at 661-310-7999

Taxes and Bankruptcy

2008-10-20T18:01:00.000-07:00

Los Angeles Bankruptcy Attorney: Taxes and Bankruptcy

Taxes and Bankruptcy: The Nuts and Bolts
The filing and subsequent discharge of either a Chapter 7 or a Chapter 13 bankruptcy may eliminate some types of personal income tax liability. There are, however, certain rigid restrictions which must be met in order to completely eliminate personal income tax liability through bankruptcy.

Some personal income taxes may be eliminated through the filing and subsequent discharge of a Chapter 7 bankruptcy. The following requirements must be met for the personal income tax liability to be eliminated in a Chapter 7:

.The tax return must have been filed on time

Economics of Being Young

2008-10-20T17:47:00.000-07:00

Generation Debt: The New Economics of Being Young

Six figure student loans. Credit card sharks in cahoots with colleges. Ambitious young people today must take on unprecedented debt simply to reach the middle class.

A college education, once the key to middle-class respectability, has become an albatross wrapped around the necks of millions of Americans trying to keeping their heads above water in this uncertain economy. The average college grad owes approximately $20,000. People who had to borrow their way to a graduate degree are already in the hole $45,000; median debt for grad students has increased 72 percent since 1997. "The next generation is starting their economic race 50 yards behind the starting line," says Elizabeth Warren, a Harvard Law School professor and author of The Two-Income Trap. "They've got to pay off the equivalent of one full mortgage payment before they can make it flat broke, just to pay for their education."

Student loans more than 7 years old used to be dischargeable in bankruptcy under certain circumstances. However, an appropriations bill passed in 1998 removed this provision. Currently, student loans may be discharged if paying the loan will "impose an undue hardship on the debtor and the debtor's dependents." Sadly, it is nearly impossible to meet the burden established by the "undue hardship" exception. For example, a student loan debtor who had nerve damage, bronchitis and arthritis, and whose daughter had epilepsy, mother had cancer, and grandchildren had asthma, failed to convince the bankruptcy court to discharge her student loans.

Similarly situated Canadians have had enough. Drowning in debt and feeling like second-class citizens, some Canadians carrying hefty student loans say their rights are being violated, and they're challenging bankruptcy laws under the Charter of Rights and Freedoms, the analogue to the United States Constitution.

The Canadian Federation of Students is waiting for its day in court after it launched a charter challenge on behalf of student loan debtors. Student loan debtors are currently lumped in with criminals and deadbeat parents as the only citizens with restrictions on declaring bankruptcy. Ironically, Canadian law is not nearly as draconian as the United States restrictions on discharging student loan debt.

The college student has another financial bogeyman, the credit card shills that swarm American college campuses. The colleges make millions off the credit card companies for the privilege of setting up kiosks on campus to market their cards.

Adding insult to injury, Federal Pell Grants are more difficult than ever to obtain. In 1980, the average Pell Grant covered 77 percent of the cost of an undergraduate education; today, it's 40 per cent. The Department of Education recently revised its eligibility guidelines which will reduce financial awards and exclude 84,000 people from the program entirely.
Wealthy kids whose parents paid for their education start their lives debt free. The rest of Americans trying to avoid middle class poverty are stuck treading water with the waves of Sallie Mae, Nellie Mae and Citibank crashing down on them.

Beyond a Chapter 13 consolidation, the bankruptcy code cannot assuage the burden of overwhelming student loan debt. Higher education may mean a lifetime of loan-indentured servitude. The system punishes the young who strive for a better life via higher education. And change is not likely in the near future. The political tradewinds are not influenced by the plight of American's young and the presidential candidates have not offered any solutions. Sadly, American youth pay their "ambition tax" in silence.

To find a Pre-Screened Bankruptcy Lawyer in your area, please call our 24Hr Unbiased Lawyer Referral Hotline at 661-310-7999.

Further Reading on Bankruptcy:
Los Angeles Bankruptcy Law Firm: Avoid 5 Common Traps
Los Angeles Bankruptcy Law Firm: Finding Answers to Your Bankruptcy Questions
Los Angeles Bankruptcy Law Firm: Bankruptcy is Not the Only Solution
Los Angeles Bankruptcy Law Firms: New Bankruptcy Laws
Los Angeles Bankruptcy Lawyers: Bankruptcy Myths You Should Not Believe
Los Angeles Bankruptcy Lawyers: The Nitty Gritty about Bankruptcy
Los Angeles Bankruptcy Lawyers: The Serious Business of Bankruptcy
Los Angeles Bankruptcy Lawyers: Main Reasons You Need to See a Bankruptcy Attorney
Los Angeles Bankruptcy Lawyers: What a Good Pre-Screened Bankruptcy Attorney Will Do For You
Los Angeles Bankruptcy Lawyer: Raise Your Credit Score After a Bankruptcy
Los Angeles Bankruptcy Lawyer: When is Filing Bankruptcy Your Best Option?
Los Angeles Bankruptcy Lawyer: Eligibility For Bankruptcy
Los Angeles Bankruptcy Lawyer: The Best Day of the Month to File Bankruptcy
Los Angeles Bankruptcy Lawyer: How to Succeed
Los Angeles Bankruptcy Lawyer: Facts Pertaining to Bankruptcy Credit Reports
Los Angeles Bankruptcy Lawyer: Why You Need a Bankruptcy Loan
Los Angeles Bankruptcy Lawyer: The Hidden Costs of Filing Bankruptcy
Los Angeles Bankruptcy Lawyer: Bankruptcy is Not Dead
Los Angeles Bankruptcy Lawyer: Recent Changes in the Bankruptcy Laws
Los Angeles Bankruptcy Attorney: Can Creditors Object to the Discharge?
Los Angeles Bankruptcy Attorney: Chapter 11 - The Role of Automatic Stay
Are All of the Debtor's Debts Discharged Or Only Some?
Los Angeles Bankruptcy Attorney: Options For Filing Bankruptcy Online
Los Angeles Bankruptcy Attorney: Understanding the Effects of Bankruptcy Debt
Los Angeles Bankruptcy Attorney: 12 myths about bankruptcy
Los Angeles Bankruptcy Attorney: Auto Lien Stripping Under the New Bankruptcy Act
Los Angeles Bankruptcy Attorney: Balance transfers, what you should know
Bankcruptcy Help - Start your retirement planning now - Here's how
Los Angeles Bankruptcy Attorney: Documents You Will Need to Provide in order to File
Los Angeles Bankruptcy Attorney: Changes to Chapter 7 and Chapter 13 Bankruptcy
Los Angeles Bankruptcy Attorneys: Chapter 7 Versus Chapter 13
Los Angeles Bankruptcy Attorneys: Reasons People File for Chapter 13
Los Angeles Bankruptcy Attorneys: IRS and FTC Investigates Credit-Counseling Organizations
Los Angeles Bankruptcy Attorneys: Trusts and Bankruptcy
Los Angeles Bankruptcy Attorney: Dealing with Guilt when of Bankruptcy
Los Angeles Bankruptcy Attorney: Non-Dischargeable Debts when filing Bankcruptcy
Los Angeles Bankruptcy Attorneys: Medical Bills & Bankruptcy
Los Angeles Bankruptcy Attorney - Are you living beyond your financial means?
Los Angeles Bankruptcy Attorneys: The New Economics of Being Young
Los Angeles Bankruptcy Attorney: Taxes and Bankruptcy

The Hidden Costs of Filing Bankruptcy

2008-10-20T17:45:00.000-07:00

Medical Bills Major Cause of Bankruptcy in Los Angeles

2008-10-20T17:43:00.000-07:00

Bankcruptcy Help - Start your retirement planning now - Here's how

2008-10-20T16:57:00.000-07:00

Start your retirement planning now - Here's how

Working your entire life is certainly an unattractive prospect. This is why it so important to plan for your retirement as early as possible.

Start planning nowYou should try to live below your means now so that you will be able to enjoy your retirement later. The first step is to take stock of your living expenses and think of ways you can cut costs. Take some time to sit down and think about what your dream retirement would be like. Would you like to travel? Do you have hobbies and interests that you would like to devote more time to when you are no longer working?

How much is enough?Also keep in mind that your retirement may cost less than you might think. According to MSN Money columnist Liz Pulliam Weston, a recent study by the U.S. Department of Labor's Consumer Expenditure Surveys finds that many people actually spend less money when they are in their retirement. With the exception of healthcare expenses, most retirement-aged peoples' various living expenses dropped dramatically.

Living longer than you expectFinally, take into account what retirement planners call the "longevity risk." Your longevity risk is the risk that you may end up living longer than you thought you would when you were planning your retirement. As a result, you run the risk of eventually running out of money when you retire. As medical technology continues to advance, this situation becomes even more of a possibility. You will want to save enough money to account for a very long life.

401(k) and moreThe best financial vehicles to use to save for retirement are employer-sponsored retirement plans like 401(k) plans. Individual Retirement Accounts, or IRAs are other savings accounts that allow you to put away money from your "gross" or pre-tax wages. The money grows tax-free too. Pension and IRA savings are also immune to seizures during bankruptcy proceedings in most states.

Getting help
However you plan on saving for your retirement, be sure to go over your plans with a financial expert. He or she will give you the best advice for reaching your retirement goals so that you can comfortably enjoy your golden years.

To find a Pre-Screend Bankruptcy Lawyer in your area, please call our 24Hr Unbiased Lawyer Referral Hotline at 661-310-7999.

Los Angeles Bankruptcy Attorney: Bankruptcy is Not the Only Solution

2008-10-20T16:42:00.000-07:00

If you, like thousands of other North Americans, find yourself swimming in debt month after month with no end in sight, you are probably weighing your alternatives. Bankruptcy may be one of the options you've been looking at, but it should certainly be the last one you consider. A bankruptcy will stay on your record for a minimum of 6 years. This means you may be required to sell some of your assets, and it will be extremely difficult to get credit cards or loans for at least the next 6 years after you file for bankruptcy.

If you are beyond debt consolidation, but you have a regular income and are able to pay a portion of your bills every month, then you have an alternative of which many financially strapped individuals are not aware: a consumer proposal. A consumer proposal is basically a debt negotiation with your creditors. You propose paying a lesser amount instead of filing for bankruptcy.

Often when people can't make payments on their loans, they think their only option is to file for bankruptcy. What they don't know, or don't consider is that many creditors would negotiate a lower payment if it would avoid the customer filing for bankruptcy. If a customer does file for bankruptcy, very often the creditors end up with little or nothing to show, so they will usually be quite willing to negotiate a settlement."

Some of the benefits of a consumer proposal are:

Less damage to your credit rating.

Interest stops accruing at the time of filing.

You only pay a portion of the total amount you owe (sometimes as little as 20%).

You won't lose your assets.

Wage garnishment and any other collection activities are stopped at the time of filing.

Los Angeles Bankruptcy Attorney: Avoid 5 Common Traps

2008-10-20T16:37:00.000-07:00

Can't Pay! You can make Debt Vanish with a Bankruptcy! Is this true? No, it's not. If you file for Bankruptcy, your debt can grow! Penalties and interest don't stop accruing in the time it takes for a Bankruptcy to be approved. So watch out. Don't fall into this trap.

5 Common Bankruptcy Traps: Why Bankruptcy doesn't work for Tax Debt.

1. Having Money and Assets
If you have plenty of money in the bank to satisfy your debt, your money will be seized to satisfy your debt. You're not escaping the IRS if you have money to pay them. No matter what you try to do.

2. Filed Before?
If you filed under Chapters 7, 11, 12, or 13 and paid your unsecured creditors less than 70% of what you owed them, you cannot get another discharge.

3. Is it Fair?
You may try to file Bankruptcy although you can afford to pay the IRS in monthly installments. Your case for bankruptcy will be thoroughly examined. And if they find you have enough income to pay for your basic needs AND your debts, they won't allow the bankruptcy. Your Bankruptcy will be dismissed on Issues of Fairness and your IRS Debt will remain.

4. Secured Creditors
If a creditor has a right to take specific property to satisfy a debt, that creditor is secured. That means Tax Liens survive Bankruptcy. You either pay after Bankruptcy, or the IRS can repossess your property.

5. Fraudulent Transfers
People try to be slick. They often transfer money out of their account before Bankruptcy to improve their odds of it being discharged. You won't get away with it! The Bankruptcy code deems all transfers of money or property to friends, relatives, or business associates within one year of filing for Bankruptcy as fraudulent transfers. The Bankruptcy court can then seize property from the person who received it, and use it to pay your IRS Debt!

No Easy Way Out: If your financial situation is desperate, the IRS has a solution for you. You might qualify for a Hardship Plan. The Hardship plan would stop the IRS's relentless collections efforts for a few months, giving you time to get your finances in order. It won't be easy to convince the IRS you need the Hardship Plan. But you're better off trying any of the IRS's options then resorting to Bankruptcy.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline at 661-310-7999.

Los Angeles Bankruptcy Attorney: Bankruptcy Myths

2008-10-20T16:34:00.000-07:00

If you are considering bankruptcy, but have serious misgivings that are preventing you from making a decision to proceed, prepare to be enlightened. Here is a list of the top five big bankruptcy myths.

Myth #1 - Everyone will know I've filed for bankruptcy.
Don't be offended, but almost nobody will know (or care) that you have filed for bankruptcy. Unless you're a big shot in your town or someone the media likes to highlight from time to time, it is very unlikely that anyone other than your creditors and perhaps a few close friends and family members will know you have filed.

Yes it is true that bankruptcy is a public legal proceeding, but the fact is there is no single place that you can find an up-to-date list of people who have recently filed for bankruptcy. The number of people filing for bankruptcy is so high that very few publications have the manpower or motivation to assemble and update this information.

Myth #2 - When you file a Chapter 7 bankruptcy all your debts are wiped out.
This is simply not true. Certain types of debts such as child support, alimony, government-issued or government-guaranteed student loans, and debts incurred as the result of fraud will not be forgiven. Also most judges will not discharge legal judgement amounts you've been assessed as the result of someone suing you.

Myth #3 - Everything I own will be taken away from me.
This is a major misconception that frightens many people from filing bankruptcy. They assume they will be thrown out on the street with no house, no car and no money in the bank. But this is not the case. If it was, almost nobody would file for bankruptcy.

Actual bankruptcy laws vary from state to state, but every state has exemptions that protect certain kinds of assets. These include your house, your car (up to a certain value), household goods and clothing and money in qualified retirement plans. In many cases a person will pass right through bankruptcy and essentially keep everything they have. That includes their mortgage and car loans as long as they keep on making the regular payments.

Myth #4 - I'll never get credit again.
Believe it or not, it won't be long before those eager beaver credit card companies will be sending you offers again. In fact there are companies that target high risk borrowers and people who've had credit problems. They charge exorbitant interest rates but that is the price you pay for needing credit in such circumstances.

For this very reason most people are advised not to start running up bills again, and should most certainly stay away from acquiring a number of high interest rate credit cards. While it is true that most people who need a car loan will be able to find someone prepared to give them one, the rate will be very high. That is why it is best if you are thinking of buying a house or car to get these set up before you file and while your credit score still looks presentable.

After bankruptcy, those loans will be tough to get and the higher interest rate will have a significant effect on your payments. Also, if you have a credit card with a zero balance on the day you file for bankruptcy in California, you don't have to list it as a creditor since you don't owe any money on it. That means you might be able to keep that card even after the bankruptcy.
Myth #5 - When you're married, both spouses have to file for bankruptcy.

Not necessarily. It depends whether one or both spouses are liable for the debt. Usually if both spouses are liable the creditor will try to get payment out of either or both. And if one spouse files, the other one is still vulnerable to being required to pay the whole amount.
On the other hand if a significant amount of debt is in the name of one spouse only, the other spouse is not liable for that debt and is probably not advised to file for bankruptcy. This would typically be the case when one spouse has suffered losses from a business which the other spouse has no involvement in.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline at 661-310-7999.

Los Angeles Bankruptcy Attorney: New Laws

2008-10-20T16:25:00.000-07:00

Many Americans are filing bankruptcy in hopes of eliminating debts or saving their home from foreclosure. While it is true bankruptcy can offer a fresh financial start, undergoing the process is no easy task. New bankruptcy laws, enacted in 2005, have made filing bankruptcy complicated and confusing.

For most people filing bankruptcy requires legal assistance. When possible, it is a good idea to find Pre-Screened bankruptcy lawyers. Most law firms offer affordable fees to review financial information and provide advice. Filing bankruptcy can be an emotionally-charged experience, so it is important to work with a lawyer whose personality is complimentary to yours.

Prior to or during the bankruptcy process, debtors are required to undergo credit counseling. The Bankruptcy Abuse Prevention and Consumer Protection Act requires consumers to obtain counseling through a U.S. Trustee Program agency. Credit counseling must take place a maximum of 180 days prior to filing.

Debtors must also undergo the "means" test to determine if they are eligible to file for personal bankruptcy protection. A provision of BAPCPA requires consumers must pay a portion of their debts if possible. The means test is used to determine how much debt will be repaid.
In cases where debtors fall significantly below the median income level of their state, they may be allowed to file Chapter 7 bankruptcy. Chapter 7 involves liquidation of assets and discharge of debts. Otherwise, debtors will be required to file Chapter 13 bankruptcy and repay debts over an extended period of time.

In order to file bankruptcy, debtors must petition the bankruptcy court in the judicial district where they reside. A creditor meeting will be arranged and a repayment plan submitted to the court. BAPCPA requires debtors to pay a substantial amount of disposable income toward repayment of debts. If the debtor is unable to adhere to the repayment plan, they will fail out of bankruptcy and lose protection of the court. Failing out of bankruptcy means creditors can proceed with collection actions including initiating foreclosure.

When homeowners file bankruptcy to stop foreclosure, it is crucial they understand the consequences of failing out of bankruptcy. Mortgage lenders can commence the foreclosure process where it left off when bankruptcy was filed. In many instances, homeowners are only days away from eviction when they file. If they fail out of bankruptcy, the lender can foreclose in a matter of days.

Filing bankruptcy has far-reaching effects and should only be considered when all other debt elimination plans have failed. These might include debt settlement, debt consolidation or credit counseling. Take time to become educated about bankruptcy and fully understand the pros and cons. Look for alternatives that can yield the same results without being as detrimental to your credit.

To find a Pre-Screened Attorney in your area, please call our 24Hr Unbiased Law Firm Referral Hotline at 661-310-7999.