April 6th, 2012
The moment your San Diego Law Firm lawyer files your bankruptcy papers, a protective court order called an “automatic stay” goes into effect. This order has many benefits for you as the debtor.
Automatic Stay Stops Most Collections
The automatic stay forbids almost all of your creditors (there are a few exceptions) from doing anything to collect a debt from you. Creditors can’t ask you to make a payment on your account. They can’t call or write you about a debt, repossess your property, send you any bills or draft your bank account. Wage garnishments must be stopped. If a creditor knows about the stay and ignores it, the creditor may be held in contempt of court. Any personal property that is repossessed after the stay comes into existence must be returned to you. If you have filed for Chapter 13, co-debtors on consumer debts are also protected by the automatic stay.
The purpose of the stay is to give you time to reorganize your finances through the bankruptcy process; it lasts until your bankruptcy is over or the item of property is no longer part of the bankruptcy. However, a judge can lift the stay as to a specific item at the request of a creditor, and this “relief from stay” will then allow the creditor to take the item back. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt, Debt Collectors, Foreclosure
February 28th, 2012
One of the surprising benefits of filing Chapter 7 or Chapter 13 bankruptcy is that while your debt is reduced or eliminated, your retirement savings are generally protected from loss. There are a few exceptions, but in most situations, you will keep all of the money you have in an IRA, 401K, or similar plan. Here are the details.
Most Retirement Plan Accounts Protected
In Chapter 7, the “fresh start” bankruptcy, most retirement plan savings are not counted as part of your assets and so cannot be used by the trustee to pay any of your creditors. In Chapter 13, in which you keep your assets but make a once-a-month payment for three to five years to reduce or eliminate most debts, most retirement plan savings are not taken into account when the court calculates how much money you have available to pay creditors each month. These rules only apply to the money which stays in your plan. There are different rules for payouts you receive from your retirement plan. Read the rest of this entry »
Posted in Asset Protection, Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Retirement
January 30th, 2012
Bankruptcy can offer a path back to financial stability for people with overwhelming debt. However, bankruptcy is not right for every situation. Some people do not qualify for bankruptcy; others have only a type of debt, such as a first mortgage or recently-incurred tax debt, that cannot be discharged in bankruptcy. Others may not need bankruptcy, because they have enough income or assets to repay their debt, and their financial difficulties are only temporary. For each of these situations, there are potential alternatives to resolve debt without bankruptcy. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt
December 23rd, 2011
In sprawling California, where miles of road separate jobs, homes, and stores, a working car can be a necessity. If you’re worried that serious financial problems may cost you your car, San Diego Law Firm can help you take advantage of bankruptcy laws designed to help you keep your car while clearing your auto loan debt.
There are two types of bankruptcy (Chapter 13 and Chapter 7), two types of car payments (loans and leases), and choices to be made in each situation. Each of these plays a role in whether and how you keep your car. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy
November 23rd, 2011
Generally, student loans can’t be eliminated in bankruptcy with other unsecured debts, like credit card loans and medical bills. However, there are possible bankruptcy strategies that can help you gain relief from student loan debt that is impossible to manage.
1. Proving “undue hardship” to eliminate loans Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt, Student Loans
October 4th, 2011
This is a common question for people who are struggling financially due to decreased income from job loss, divorce, illness, or other circumstances. People often say they feel guilty about filing bankruptcy and not repaying their creditors. As a consequence, they exhaust their savings and retirement accounts, and then end up filing for bankruptcy as a last resort.
However, if you are facing a high amount of debt and are struggling to pay bills, it’s important to think about the best long-term solution to deal with your finances. The unemployment rate in California currently stands at 12.1%. It can often take an extended period of time to find employment. If you subsidize your income by borrowing from your retirement accounts during your job search, you can drain your savings and subject yourself to big tax penalties for retirement account withdrawals you then can’t promptly repay. Read the rest of this entry »
Posted in Asset Protection, Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Retirement
August 19th, 2011
A frequent concern of people who consider filing for bankruptcy is whether bankruptcy can eliminate any balance remaining on their mortgage loan after their house has been foreclosed on. The answer depends on California’s “anti-deficiency” law, which says that a lender who forecloses on a home in a non-judicial foreclosure cannot then go after the homeowner/borrower for the balance due on the mortgage loan if it is a “purchase money loan.” Everything hinges on whether all of these requirements are met.
Purchase Money Loans
A purchase money loan on a residence is a loan taken out to buy the home that you live in. The most common example of a purchase money loan is a first mortgage. Generally, a purchase money loan is not a home equity line of credit or a home equity loan. A refinanced loan can qualify only if it maintains its “purchase money character,” which is not always the situation. Read the rest of this entry »
Posted in Bankruptcy, Foreclosure
July 29th, 2011
A mountain of debt can make anyone feel frustrated and hopeless. Worse, though, is having debt collectors bothering you about your debts, especially if a debt collector insults you, threatens you, won’t give you the details about the bill, or embarrasses you by contacting other people – all common, but illegal, collection tactics.
If you are having problems with a debt collector, contact San Diego Law Firm for help. We can stop any illegal conduct and, at no charge to you, seek compensation for you from the debt collector, who must also pay your attorney fees if their collection efforts were illegal. If you are simply feeling overwhelmed with debt, we can evaluate your financial situation in a no-charge consultation, and you can find out whether Chapter 13 or Chapter 7 bankruptcy could be a good choice for you. Read the rest of this entry »
Posted in Bankruptcy, Debt, Debt Collectors
June 20th, 2011
The days leading up to the realization that bankruptcy is your best option can be filled with anxiety and emotion. The bills are flooding in, the creditors are calling, and you may be using up your last resources just trying to keep your head above water. If you are planning to file bankruptcy soon, then it’s helpful to know which bills to keep paying, and which bills are likely to be reduced or eliminated in bankruptcy. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt
May 20th, 2011
Having debt can be scary, especially if it’s a lot of debt. You can feel like there is no way to get out from under it, no matter what you do. However, Chapter 7 bankruptcy does just that: it digs you out from underneath all of that debt and gives you a fresh start. Chapter 7 can be particularly useful where you have an overwhelming debt because of a one-time event beyond your control, such as large medical bills due to a serious illness not covered by insurance. In that situation, Chapter 7 bankruptcy is a good option to think about because it is possible to get rid of those unpaid and impossible-to-pay medical bills, along with many other debts that may have piled up because the illness also resulted in lost work time.
But filing bankruptcy does not make sense for everyone. Some debts get wiped out, while other debts stick with you. Debts that usually stick with you after Chapter 7 bankruptcy include: Read the rest of this entry »
Posted in Bankruptcy, Chapter 7 Bankruptcy, Debt
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