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Basic Tips In Filing For Bankruptcy

Nov 28, 2009 Bankruptcy

You may have been told that since a bankruptcy will rid you of your credit card debt you might as well max out your American Express and purchase all of those widgets for which you have been longing. The opposite is true. A Bankruptcy Court will dismiss your claim if they perceive you as taking advantage of the system. To make sure the bankruptcy Court gives you the benefit of the doubt, you should refrain from using your credit cards for 90 days prior to filing for bankruptcy.

You are considering filing for bankruptcy because you do not have enough income to pay your creditors. It is best practice, however, to continue to pay at least one or two of your creditors before you file for bankruptcy. You want the Bankruptcy Court not only to see how you have no other alternative than to file, but you also want the Bankruptcy Court to see that you are the type of citizen who would make all of your payments if you had the means to do so.

One of the most important things you can do prior to filing for bankruptcy is to collect certain types of information. This will save you time and stress and help your attorney expeditiously file your petition. You will want to document or gather the following: (1) Mortgage(s) - Determine what your current appraisal value is as well as your pay-off amount, determine the mortgagors information, and determine what your monthly payments are and how many payments you are behind, if applicable; (2) Vehicle(s) - Ascertain the market value of all your vehicles, and if financed or leased, collect the lenders information and the pay-off amount; (3) Personal Property - make a list and place a value on your collective furniture and furnishings, collective clothing and apparel, collective jewelry, cash on hand, balance in checking and savings accounts, and any pensions plans; (4) List of Unsecured Creditors - Collect the addresses of all your unsecured creditors (i.e., credit cards, medical bills, personal loans, cash advances) and how much you owe; (5) Pay Stubs - - Obtain pay stubs or proof of income for the 3 months prior to filing.

Be sure you have all of your taxes filed with the IRS. The Bankruptcy court will not allow you to discharge your debt if taxes are left unfiled. Furthermore, as is the case in Los Angeles, some Bankruptcy Courts will require you to furnish your returns from the past two years. It is also a good idea to also provide those returns to your attorney to ensure accuracy when he/she drafts your petition. If you do not have copies of your tax returns, then contact your regional IRS office and have them mail you copies for a nominal fee.

Sit down for a few minutes with your bank or credit card statements and add up all of your regular monthly expenses. You want to make sure you include all of your expenditures so the Bankruptcy Court can get an accurate idea of your financial hardship. You of course have the standard expenditures like rent and transportation, but there are also other noteworthy expenditures that many people overlook, such as food, clothing, insurance, laundry, medical, alimony, school expenses, and personal care items.

When you are dealing with complex matters that can affect you for years to come it is a great idea to retain a specialist. Since you are reading this article it is likely that you are not bankruptcy savvy. Therefore, hire a qualified bankruptcy attorney to help you file and save yourself the stress of drafting a petition and the stress of having your petition dismissed for failing to provide correct information.

Bankruptcy Lawyer Los Angeles - Law Offices of Alon Darvish

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Bankruptcy: One Family’s Story

Aug 29, 2009 Bankruptcy

“Mom, can’t you play Monopoly with us for an hour?” This was the children’s daily pleading. Jackie knew her son and daughter, nine and ten years old, couldn’t begin to understand what their mother’s dislike of the game was all about so she just kept handing them excuses like having to get the laundry done and so on. In fact, she was trying to shield them from what lay behind her violent distaste of that age old board game.

“How on earth could I put on a good face playing a game that constantly demanded I either pay bills or go to jail?” Jackie says. “It was just way too close to my reality to be something I sat down and did with my kids.” Jackie shuddered whenever she walked past the children’s game table and saw the white backs of property title cards screaming the word “Mortgage” in bold black letters up at her. To be sure, Jackie and her husband, Jim, were struggling to survive with a small business that wasn’t meeting their family’s financial needs. Both of them were working 18 hour days, trying to push the business to get a little traction. They were hanging on, hope against hope, and increasingly having to resort to credit cards for everything from kids’ school shoes to groceries.

When the business’ gears finally ground to a halt and Jackie and Jim were back at working for someone else, it was clear that their debt accumulation was a staggering load that would haunt them for many years to come. In fact, just making the minimum payments on all their accounts would barely allow them to keep their heads above water. Jackie said her biggest worry was the very real possibility of having to tell the children that they were going to lose their home.

The delicate thread of maintaining minimum payments on maxed out revolving credit was broken the night Jim fell at work on his shift and ended up in the hospital for several days with a head injury. Jackie winces when she recalls the arrival of the first hospital bill in the mail. They hadn’t been able to afford medical insurance for quite some time.

Jackie and Jim are not dumb people. Jackie with a business degree and Jim with his family history filled with self-employment, they both knew they were taking risks when starting their own business. They were brimming with energy and great ideas, a little low on capital but high on entrepreneurial spirit. They were convinced that combining these strengths with lots of hard work would bear fruit. They did what every whole-hearted entrepreneur does: They went for broke into a world where they could not possibly control all the circumstances. All the while the word “bankruptcy” remained so vile, neither of them ever breathed it.

Slowly the cracks revealed themselves and Jackie recognized that both she and Jim were slipping into depression and dysfunction that would soon not permit them to properly look after their two most precious assets, their two young children. “You are willing to do things for your children that you never before thought possible,” Jackie explains. After weeks of internal wrangling, she went online and found a well recommended bankruptcy attorney.

“During my first meeting with the attorney, I kept apologizing for our pathetic financial statement. With my business background, I already had it all lying out there as plain as day on a spreadsheet for him. I kept going back and forth between the spreadsheet and the Kleenex. My attorney simply handed me the tissue box and let me spill my guts. Then he said the magic words: “There is light at the end of the tunnel.”

Jackie and Jim explored all their options with their bankruptcy attorney and after weighing them, decided that filing for Chapter 7 was the one most appropriate for their case. “It’s not like you are going to come out of this smelling like a rose,” Jim admits. “Your pride, your idea of who you are is severely dented. But when you measure that against no longer being able to function as a provider for your family or as a parent to your children, it becomes clear that the filing process was meant to give me a new lease on life. It is a safety valve that has kept my family from imploding.”

Jackie will tell you that both she and Jim have been hurt by the whole experience but she also notes that they are able to get a little sleep now. “It was the struggle leading up to the filing, not the filing itself, that was the nightmare,” she explains. Their attorney has also made it possible for them to not lose their modest home in the process. “We have a lot of hard work ahead of us in the future to make up for that dark period,” Jackie says, smiling faintly. “But at least our kids have been spared losing their home, or worse yet, their family.

Tags: Bankruptcy, Bankruptcy Attorney, credit, Creditor, creditor negotiation, Debt, Debt Management, family health, Finance, Financial Management, Mental Health

How Can I Avoid Bankruptcy?

Aug 28, 2009 Bankruptcy

If you are trying to learn how to avoid bankruptcy then you have come to the right place. We personally understand that no one ever wants to deal with financial hardships; yet so many people in our society tend to continue to worry about their finances each and every month.

Chances are you have been searching for things that you can do to avoid bankruptcy if this is the case I recommend that you read this entire article. You will find some great tips and advice that you can begin using that will help you feel better and more secure about your finances.

1. Importance Of A Budget: Are you and your family living on a budget that you can afford; if you have not taken the time to create one then you may want to spend some time implementing one. A good budget will prevent us from spending more money than we make and will keep us out of trouble.

Anyone who finds themselves struggling financially understand that there are only two reasons why they are facing this issue and the biggest reason is they are spending more money than they make. Chances are you like your luxuries and enjoy spending money; if this is the case then you should find ways to increase you household income.

2. Learn How To Avoid Stress: One of the first things you should know is that you should not stress over your finances; I know this can be difficult but it will not help matters. You have to take responsibility for being in the financial difficulties before you can notice a difference.

3. Talk To The Creditors: We all know that we hate talking to the creditors and do almost anything to avoid them. However it is time that you begin talking to them and letting them know about your finances; after all nothing is going to improve until you are honest about your finances.

Be sure to visit our site below and find out what you can do to avoid bankruptcy and get some valuable bankruptcy advice that will help you get back on track.

Tags: Bankruptcy, bankruptcy advice, Bankruptcy Attorney, Filing Bankrupt, Finance, personal development, wealth building

Domestic Support Obligations in Bankruptcy

Aug 13, 2009 Bankruptcy

Federal bankruptcy law recognizes an important class of debts known as domestic support obligations. In considering filing for relief under the bankruptcy code it is important to determine what constitutes a domestic support obligation and its potential effect on your bankruptcy.

The timing of a domestic support obligation is unimportant under the bankruptcy code. A domestic support obligation can arise before, during, or after the filing of a bankruptcy. Interest is included as part of the obligation.

A domestic support debt must be an obligation owed to a current spouse, former spouse, or child of the debtor, or to the child’s parent, legal guardian, or responsible relative. A governmental unit may also be owed a domestic support obligation.

For a debt to constitute a domestic support obligation it must be a debt owed on the basis of alimony, maintenance, or support of a current spouse, former spouse, or child of the debtor or the child’s parent. The term or terms applied to the debt are unimportant in determining if the debt is a domestic support obligation.

The obligation must have been established or subject to establishment before, on, or after filing bankruptcy, by reason of a separation agreement, divorce decree, or property settlement agreement, or by an order of a court of record.

No debt will be treated as a domestic support obligation if it is assigned to a nongovernmental agency unless the obligation is assigned voluntarily and assigned solely for the purpose of collection the obligation.

When you file a bankruptcy no automatic stay goes into effect with respect to domestic support obligations. Garnishments, court orders, collection efforts, etc. can continue as they relate to any domestic support obligation.

There can be no discharge of a domestic support obligation in a Chapter 7 or Chapter 13 bankruptcy. A Chapter 13 Plan must provide for priority payments for domestic support obligations.

If you have identified that you owe domestic support obligations it is important to recognize that bankruptcy will not stop your obligation to pay those debts. If you have fallen behind on your domestic support obligations it may mean that a Chapter 13 is not a viable alternative for you since the domestic support arrears must be paid in its entirety under the Chapter 13 plan.

Tags: Bankruptcy, Bankruptcy Attorney, Bankruptcy Lawyer, Debt, Debt Relief, Finance, law, money

Requirements to File Chapter 7 Bankruptcy

Jul 4, 2009 Bankruptcy

There are barriers to filing for Chapter 7 bankruptcy protection and receiving the benefits of a financial fresh start and putting an end to harassing creditors, and wage garnishments. Requirements for filing a Chapter 7 bankruptcy include:

- Within the last 180 days you completed a credit counseling course on the internet, on the phone, or in person from a counseling agency approved by the Court;

- The state in which you are filing must have been your place of residence for the previous 90 days. If you have not resided in the state for 90 days then you may file in the state where the majority of your assets have been located for the last 180 days or where your principal of business is located;

- You filed a bankruptcy that was dismissed within the last 180 days for (1) a failure to obey orders of the court or a failure to make an appearance before the court, or (2) requesting a voluntary dismissal after a creditor asked the Court for relief from the automatic stay;

- Not having filed a Chapter 7 within the last 8 years where a discharge was received;

- Either not have filed a Chapter 13 in the last 6 years where you received a discharge, or have received a discharge in a Chapter 13 but paid 70% or more to your unsecured creditors;

- Average monthly income over the last 6 months is less than the median for your county OR the average monthly income over the last 6 months minus allowable expenses is not enough to pay one quarter of your debt over the next 5 years;

- Not be an insurance company, financial institution, nor a railroad.

These requirements are found in the federal bankruptcy code. If you fail to meet one of the requirements, you may still be able to receive bankruptcy protection by filing in another Chapter.

Tags: attorney, Bankruptcy, Bankruptcy Attorney, bankruptcy information, Bankruptcy Lawyer, chapter 7, Chapter 7 Bankruptcy, credit repair, Creditors, Debt, Debt Relief, Debts, Finance, Lawyer

Can You Keep Your Home Filing a Chapter 7 Bankruptcy?

Jun 29, 2009 Bankruptcy

A Chapter 7 bankruptcy is also known as a liquidation bankruptcy. This means that any property that a Chapter 7 filer has that is not exempt may be liquidated or confiscated and sold to pay off debts.

If you are considering a Chapter 7 bankruptcy then it is important to know what you can and cannot exempt.

Each state has different exemption rules. In Tennessee a single individual can exempt $5,000 of their homestead (house) while a married couple can exempt $7,500.

For those filers over the age of 62 Tennessee allows an individual a $12,500 homestead exemption. A spouse aged 62 or older who has a spouse under 62 is allowed a $20,000 exemption. A married couple both of whom are over the age of 62 receive a $25,000 exemption.

If a minor child or minor children live in the house then each individual who has custody of that child or children may exempt up to $25,000 of the value of their house. A married couple with a child can therefore exempt up to $50,000.

If you know the amount of equity you have in your home then you can determine the likelihood of a Chapter 7 Trustee trying to sell your home in a Chapter 7 bankruptcy. If your equity is less than your entitled exemption your creditors and Chapter 7 Trustee will nto be able to sell your home.

If the equity in your house is more than the amount you are entitled to exempt then you will have to pay the difference between the equity minus the exemption, or you will risk losing your house when you file a Chapter 7 bankruptcy.

The last point to consider is that you usually do not want to file a Chapter 7 if you are behind on your mortgage payments. When you are behind on your mortgage, a Chapter 13 might be a better option for someone wanting to keep their home.

Tags: Attorneys, Bankruptcy, Bankruptcy Attorney, Bankruptcy Attorneys, Bankruptcy Law, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt Relief, debtor law, law, Lawyers, legal

Payday Loans

Dec 22, 2008 Payday Loan

As the cost of living goes up, more and more people are turning to “payday” loans. San Diego business and bankruptcy attorney Carl Starrett recently appears on the KUSI television’s Good Morning San Diego show to offer his opinion on these types of loans.

Tags: analysis, Bankruptcy Attorney, Carl, commentary, Cost Of Living, KUSI, Loans, payday, Payday Loans, San Diego Business, Starrett, Television, Types Of Loans

Payday Loans

Dec 22, 2008 Payday Loan

As the cost of living goes up, more and more people are turning to “payday” loans. San Diego business and bankruptcy attorney Carl Starrett recently appears on the KUSI television’s Good Morning San Diego show to offer his opinion on these types of loans.

Tags: analysis, Bankruptcy Attorney, Carl, commentary, Cost Of Living, KUSI, Loans, payday, Payday Loans, San Diego Business, Starrett, Television, Types Of Loans