Monthly Archives: May 2011

BY MAXWELL LAW FIRM, PLLC

Types of Debt

Your ability to receive a discharge on a debt depends on the nature of the type of nature/type of debt.

Secure – A claim secured by a lien in the debtor’s property by reason of the debtor’s agreement or an involuntary lien such as a judgment or tax lien. The creditor’s claim may be divided into a secured claim, to the extent of the value of the collateral, and an unsecured claim equal to the remainder of the total debt. Generally a secured claim must be perfected under applicable state law to be treated as a secured claim in the bankruptcy.

Examples of this type of debt are:

· Mortgage Debt

· Car Loans

· Purchase Money loans or credit lines used to acquire personal property

Unsecure— A claim or debt is unsecured if there is no collateral that is security for the debt. Most consumer debts are unsecured. Examples of this type of debt are:

· Unpaid medical bills

· Credit Card Debt

· Personal Loans

· Lines of credit

Priority debts –these are obligations that have to paid during and after the bankruptcy and are not subject to discharge. Examples of this type of debt are:

· Unpaid wages

· Domestic obligations

· Certain Tax Debt

· Student loan

Executory Contracts – this is a contract which has not yet been performed in full. Debtors may assume or reject any executory contract in bankruptcy. Even if you signed a valid contract when you reject this type of obligation in bankruptcy, your obligation to perform this contract (pay) is extinguished.

Examples of this type of obligation:

· Unexpired leases on vehicles, rental property, ect.

· Time Shares

Foreclosure

Generally, when a bank forecloses on a loan, it assumes the property and sells it at auction. If the auction proceeds are less than the value of the debt owed by the former homeowner, this is called a deficiency. The bank can either sue for the deficiency or require you report the debt as income on your taxes.

Discharge

Unsecure lines of credit and secure debt. Unsecure debt is discharged with no exceptions. Secure debts, car loans and mortgages, are discharged as well. But with Secure debts you will have to surrender the property if you wish to have it discharged, otherwise you can wait till the end of your bankruptcy once it finalized and enter into an agreement with your creditor to continue with contract. PLEASE NOTE THAT TAXES (in certain situations are dischargeable we can evaluate your situation individually).

TAX DEBT IS DISCHARGED IF:

a. The due date for filing a tax return is at least three years ago. b. The tax return was filed at least two years ago.

c. The tax assessment is at least 240 days old. d. The tax return was not fraudulent.

(Non-Dischargeble) The Follow Debts Arising from:

· STUDENT LOANS,

· DOMESTIC OBLIGATIONS

· Payroll withholding

· Traffic Tickets

· Alcohol related injuries

· Cash advances and purchase of luxury goods within the last ninety (90) days

· Certain Taxes

· Payroll withholding and deductions

· Debts incurred POST filing

If you are looking for a  Debt Defense Attorney and or a Bankruptcy Attorney in
Charlotte or Concord North Carolina Area Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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By North Carolina Bankruptcy Attorney

Automatic Stay

An Automatic Stay injunction issued automatically upon the filing of a bankruptcy case which prohibits collection actions against the debtor, the debtor’s property or the property of the estate. Immediately after you file for bankruptcy creditors are prevented from contacting you and attempting to collect from you. This is helpful because if you were in the middle of foreclosure, then the entire process is stopped and you have a chance to catch up on payments to affirm that property or you can walk away without further penalty (see deficiency’s & foreclosure). It is also helpful when you are trying to avoid a garnishment.

If you are looking for a   Foreclosure Defense Attorney and or a Bankruptcy Attorney in
Charlotte or Concord North Carolina Area Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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At the Bell Gardens Bankruptcy Law offices of Chirnese Liverpool, we understand that financial disasters happen to the best of us. Often conditions beyond our control make it impossible to catch up on debts, leading to sleepless nights and days filled with worry.

Our bankruptcy attorneys can help you get a handle on your financial situation, putting an immediate end to creditor harassment and wage garnishment.

Bankruptcy could be the solution you need to get a fresh financial start. Contact us to learn if bankruptcy is an option for you.

Should You Consider Bankruptcy?
If you are feeling overwhelmed with debt and the stress is affecting your health, your family life, and your work life, you owe it to yourself to learn more. Your consultation is free so there is no reason to put off speaking with a knowledgeable bankruptcy attorney.

If your answer is YES to two or more of these questions, give us a call at 818-714-2200 WE EVEN OFFER PHONE CONSULTATIONS!

•Are you unable to make even the minimum credit card payment?
•Are you using one credit card to pay another credit card?
•Are you behind on your mortgage payments? Behind on car payments?
•Are you facing home foreclosure?
•Are they threatening to repossess your car?
•Are your wages being garnished?
•Have creditors seized your bank account? Your tax refund?
Click here for our Bankruptcy Debtor Checklist .

Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called “fresh start” bankruptcy, is usually the best option for people who have suffered a permanent loss of income or those who cannot make even minimum payments. Chapter 7 bankruptcy can seem scary to many people, but it can also bring tremendous relief as you become free of crushing debt. Although the law has made it more difficult to qualify for Chapter 7 relief, a review of your financial situation by our experienced attorney can help you determine your eligibility.

You owe it to yourself to find out if you qualify for bankruptcy debt relief. Contact the Law Offices of Chirnese L. Liverpool today.

Visit our website for helpful information and answers to Frequently Asked Questions (FAQ’s) today.

The Law office of Chirnese L. Liverpool is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

Law offices of Chirnese L. Liverpool, P.L.L.C.
Chirnese L. Liverpool, Esq.
6445 Florence Ave. Suite A
Bell Gardens, CA 90201
Phone: 818-714-2200
Fax: 818-714-2201
http://www.liverpoollegal.com

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At the Law offices of Chirnese Liverpool , we understand that financial disasters happen to the best of us. Often conditions beyond our control make it impossible to catch up on debts, leading to sleepless nights and days filled with worry.

Our bankruptcy attorneys can help you get a handle on your financial situation, putting an immediate end to creditor harassment and wage garnishment.

Bankruptcy could be the solution you need to get a fresh financial start. Contact us to learn if bankruptcy is an option for you.

Should You Consider Bankruptcy?
If you are feeling overwhelmed with debt and the stress is affecting your health, your family life, and your work life, you owe it to yourself to learn more. Your consultation is free so there is no reason to put off speaking with a knowledgeable bankruptcy attorney.

If your answer is YES to two or more of these questions, give us a call at 818-714-2200 WE EVEN OFFER PHONE CONSULTATIONS!

•Are you unable to make even the minimum credit card payment?
•Are you using one credit card to pay another credit card?
•Are you behind on your mortgage payments? Behind on car payments?
•Are you facing home foreclosure?
•Are they threatening to repossess your car?
•Are your wages being garnished?
•Have creditors seized your bank account? Your tax refund?
Click here for our Bankruptcy Debtor Checklist .

Chapter 7 Bankruptcy
Chapter 7 bankruptcy, often called “fresh start” bankruptcy, is usually the best option for people who have suffered a permanent loss of income or those who cannot make even minimum payments. Chapter 7 bankruptcy can seem scary to many people, but it can also bring tremendous relief as you become free of crushing debt. Although the law has made it more difficult to qualify for Chapter 7 relief, a review of your financial situation by our experienced attorney can help you determine your eligibility.

You owe it to yourself to find out if you qualify for bankruptcy debt relief. Contact the Law Offices of Chirnese L. Liverpool today.

Visit our website for helpful information and answers to Frequently Asked Questions (FAQ’s) at . FAQ the Law Offices of Chirnese L. Liverpool today.

The Law office of Chirnese L. Liverpool is a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

Law offices of Chirnese L. Liverpool, P.L.L.C.
Chirnese L. Liverpool, Esq.
6277 Van Nuys Blvd. Suite 126
Van Nuys, CA 91401
Phone: 818-714-2200
Fax: 818-714-2201
http://www.liverpoollegal.com

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BY Bankruptcy Attorney

THE FORECLOSURE MARKET

The struggling housing market has led to a wave of foreclosures over the last year or so. The

collapse of the subprime market and soaring unemployment statistics have left homeowner’s in a position where they can longer afford their homes.

Foreclosure Process in General

Generally, when a bank forecloses on a loan, it assumes the property and sells it at auction. If the auction proceeds are less than the value of the debt owed by the former homeowner, this is called a deficiency. The bank can

either sue for the deficiency or require you report it as forgiven debt income on your taxes.

HOW YOUR LIABILITY ON A HOME EQUITY LINE IS AFFECTED BY FORECLOSURE

An additional problem occurs when there is a second mortgage, or home equity

loan. If you lose your home due to foreclosure on your first mortgage, you will

likely still be responsible for the home equity loan that you took out against

the home. Once the home goes through the foreclosure on their first mortgage the home equity loan converts into what amounts to an unsecured personal loan. The equity loan will no longer be secured by the property, but it will become a personal liability, and the creditor may be able to continue

collection action, possibly even filing a lawsuit against you to recover the debt.

Regardless of whether a borrower is sued, the outstanding balance may still appear on the borrower’s credit as a charge-off until the loan is repaid or

settled. This can severely damage your credit for the duration. Of course, your credit score has probably already plummeted as a result of the foreclosure. Bankruptcy actually causes the same or less damage to your credit. Bankruptcy can actually stop the foreclosure process and prevent suit from a home equity line creditor and other unsecured

creditors.

If you are looking for a   Foreclosure Defense Firm and or a Bankruptcy Attorney in
Charlotte or Concord North Carolina Area Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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By Bankruptcy Attorney

What is a reaffirmation agreement

The debtor can choose to reaffirm debts that would otherwise be discharged by the bankruptcy. Generally, when a debt is reaffirmed, the parties to the reaffirmed debt have the same rights and liabilities that each had prior to the bankruptcy filing: the debtor is obligated to pay and the creditor can sue or repossess if the debtor doesn’t pay.

Are you required to sign one? Do I Have to Reaffirm Any Debts?

No. Reaffirmation is always optional. It is not required by bankruptcy law or any other law. If a creditor tries to pressure you to reaffirm, remember you can always say no.

Why you shouldn’t sign one

The Bankruptcy Court discourages multiple reaffirmation agreements signed after filing a Chapter 7 case because many a debtor have had to file another Bankruptcy (such as a Chapter 13 reorganization or repayment plan) after signing a reaffirmation agreement.  Remember, a reaffirmation puts you back on the hook, the creditor wants you to sign it. You don’t have to sign it, you can normally just continue to pay as usual. Think for a minute why the creditor wants you to sign the reaffirmation agreement… because it protects them-it puts you back on the hook as if you have never filed a Bankruptcy

Can I maintain the secured property after bankruptcy?

Yes but, the creditor can still take back their collateral if you don’t pay the debt. For this reason, if you want to keep property that is collateral for a secured debt, you will need to catch up on the payments and continue to make them during and after bankruptcy, keep any required insurance, and you may have to reaffirm the loan.

Do I Have to Reaffirm on the Same Terms?

No, a reaffirmation is a new contract between you and the lender. You should try to get the creditor to agree to better terms such as a lower monthly payment or interest rate. You can also try to negotiate a reduction in the amount you owe. The lender may refuse but it is always worth a try. The lender must give you disclosures on the reaffirmation agreement about the original credit terms, and any new terms you and the lender agree on must also be listed.

If you are looking for a  Debt Defense Attorney and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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By North Carolina Bankruptcy Attorney

WAYS TO IMPROVE YOUR CREDIT SCORE

Q. Generally what affects my Fair Isaac Corporation (FICO) score?

A. Have you missed any payments? Late payments, collection accounts, settled accounts, repossessions, foreclosures, and public record items (tax liens, judgments, bankruptcies) can have a major negative impact on your FICO score. Even minor late payments, such as 30-day delinquencies, can negatively affect your score. Your payment history makes up the largest part of your FICO score, so the longer you pay your bills on time, the better your FICO score. Your score even affects your insurance premiums. Insurance companies often run your credit before writing and or reissuing your policy.

Q. How long does Bankruptcy remain on my credit report?
A. Typically, here is how long you can expect bankruptcies to remain on your credit report (from the date filed):

• Completed Chapter 13 bankruptcies up to 7 years.
• Chapter 11 and 7 bankruptcies up to 10 years.

Q. How long will foreclosure remain on my credit report?

A. A foreclosure remains on your credit report for 7 years as well.

Q. Are the alternatives to foreclosure any better as far as my FICO score is concerned?

A. The common alternatives to foreclosure, such as short sales, and deeds-in-lieu of foreclosure are all “not paid as agreed” accounts, and considered the same by your FICO® score. This is not to say that these may not be better options for you from a financial perspective, just that they will be considered no better or worse for your FICO score.

Q. How can I minimize the negative affect of a bankruptcy?

A. A bankruptcy is going to be factored into your FICO® score until it falls off of your credit report. While it may take up to ten (10) years for a bankruptcy to fall off of your report, the impact of the bankruptcy will lessen over time.

If you plan to file a bankruptcy, here are some things you should do to make sure your creditors are accurately reporting the bankruptcy filing:

• Check your credit report to ensure that accounts that were not part of the bankruptcy filing are not being reported with a bankruptcy status.
• Monitor your score and items on your report monthly.
• Make sure your bankruptcy is removed as soon as it is eligible to be “purged” from your credit report.

After a bankruptcy has been filed, the sooner you begin retaining or re-establishing credit in good standing, the sooner you can expect your FICO score to rebound. A good practice is to obtain a secured credit card and continually make all of your payments on time. As time passes and the impact of the bankruptcy lessens, you might apply for a traditional credit card and also continually make all of your payments on time.

Information taken from www.myfico.com

Q. How soon after bankruptcy can I obtain a loan?

A. Almost anyone can get credit soon after a bankruptcy. It’s just a matter of knowing how. Long before the bankruptcy drops off your credit report, you could be qualifying for loans with good rates and terms.

B. There is not an average time frame. As long as you are taking the steps necessary to rebuild your credit, you will see results sooner than later.

C. It will take two (2) years to qualify for an FHA loan and four (4) years for a conventional mortgage at an affordable interest rate.

Q. What steps can I take to rebuild my credit after bankruptcy?

A. Credit Report Check: One common problem people emerging from bankruptcy often face is that credit reports frequently show accounts as open and overdue — when in fact they were closed and the obligations wiped out as part of the bankruptcy. Your credit score is based on information in your credit report, so errors on your report can seriously dampen your score. Hence, you should see that these items are corrected. Banks report to all three credit bureaus (Experian, Equifax and Trans Union)

B. Obtain one or more secured credit cards. A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $100 in the account; you can charge up to $100. Do not use up the entire limit that you deposit. Using part of the limit is a good credit behavioral activity and will increase your score. You may be able to add to the deposit to add more credit and to cover any fees associated with the card. Sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits, essentially making your card unsecured. This will improve your credit score gradually. You may shop for prepaid cards here http://www.creditcards.com/prepaid.php. Be sure to ask the creditor if they report to the credit agencies before applying and using for their product. It is important that they do, in order to raise your score.

C. Stay current on your utility bills and other debts that resumed after the bankruptcy (i.e. student loans, mortgages, car loans), or were not part of the bankruptcy.

D. Be mindful of the purchases you make on your card: Behavioral scoring analyzes the behavioral patterns of consumers to determine credit risk – and if they’re viewed as a risk, credit card companies may choose to lower their credit lines. Here are a few items that credit card companies may use to profile you as a risk:

• Watch what you purchase. One characteristic of behavioral scoring is that banks are looking at the items and services you purchase and deciding on their own whether they are appropriate. If they determine that they’re not appropriate, or show you may be in financial distress, you may be viewed as a credit risk.
• Watch where you shop. Another characteristic is if customers shopping in the same stores as you have poor repayment histories, you may be punished as well – sort of a “birds of a feather” assumption. See http://www.consumerismcommentary.com/10-purchases-that-can-harm-your-credit/

For example, The FTC has filed suit against CompuCredit claiming did not properly disclose that it monitored spending and cut credit lines if consumers used their cards at certain places. Among them: tire and retreading shops, massage parlors, bars, billiard halls and marriage counseling offices. Seehttp://www.ftc.gov/os/caselist/0623212/081219compucreditstiporder.pdf

If you are looking for a  Debt Settlement Attorney and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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Home Foreclosure and Debt Cancellation

Posted by Maxwell Law Firm

Taken from IRS.gov

1. What is Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the cancelled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Here’s a very simplified example. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

2. Is Cancellation of Debt income always taxable?

Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve:

• Bankruptcy: Debts discharged through bankruptcy are not considered taxable income.
• Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you.You are insolvent when your total debts are more than the fair market value of your total assets.Insolvency can be fairly complex to determine and the assistance of a tax professional is recommended if you believe you qualify for this exception.
• Certain farm debts:If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income.The rules applicable to farmers are complex and the assistance of a tax professional is recommended if you believe you qualify for this exception.
• Non-recourse loans:A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.That is, the lender cannot pursue you personally in case of default.Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income.However, it may result in other tax consequences, as discussed in Question 3 below.

 3. I lost my home through foreclosure.  Are there tax consequences?

There are two possible consequences you must consider:

• Taxable cancellation of debt income.(Note: As stated above, cancellation of debt income is not taxable in the case of non-recourse loans.)
• A reportable gain from the disposition of the home (because foreclosures are treated like sales for tax purposes).(Note: Often some or all of the gain from the sale of a personal residence qualifies for exclusion from income.)

Use the following steps to compute the income to be reported from a foreclosure:

Step 1 - Figuring Cancellation of Debt Income (Note: For non-recourse loans, skip this section.  You have no income from cancellation of debt.)

1. Enter the total amount of the debt immediately prior to the foreclosure.___________
2. Enter the fair market value of the property from Form 1099-C, box 7. ___________
3. Subtract line 2 from line 1.If less than zero, enter zero.___________

The amount on line 3 will generally equal the amount shown in box 2 of Form 1099-C.  This amount is taxable unless you meet one of the exceptions in question 2.  Enter it on line 21, Other Income, of your Form 1040.

Step 2 – Figuring Gain from Foreclosure

4. Enter the fair market value of the property foreclosed.For non-recourse loans, enter the amount of the debt immediately prior to the foreclosure ________
5.    Enter your adjusted basis in the property.(Usually your purchase price plus the cost of any major improvements.)                                    ____________
6. Subtract line 5 from line 4.  If less than zero, enter zero.

The amount on line 6 is your gain from the foreclosure of your home.  If you have owned and used the home as your principal residence for periods totaling at least two years during the five year period ending on the date of the foreclosure, you may exclude up to $250,000 (up to $500,000 for married couples filing a joint return) from income.  If you do not qualify for this exclusion, or your gain exceeds $250,000 ($500,000 for married couples filing a joint return), report the taxable amount on Schedule D, Capital Gains and Losses.

4. I lost money on the foreclosure of my home.  Can I claim a loss on my tax return?

No.  Losses from the sale or foreclosure of personal property are not deductible.

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If you are looking for a  Collection Defense Lawyer and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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I love lists, and here is one from SmartMoney. Here is a quick run down of the 5 Things Bankruptcy Court Won’t Tell You.

1. “Personal Bankruptcy’s not just for the poor.” The old saying about the bigger they are the harder they fall is certainly true. Take a look at Celebrity Recession: Who Lost It All In 2009 and 2010 Anybody can get in financial difficulty and they do!

2. “When it comes to bankruptcy, one size doesn’t fit all.” You don’t go to the shoe store and ask for the same size shoes as your brother-in-law got yesterday. Same holds true for bankruptcy. There are differences in the way debt gets handled in personal bankruptcy, often depending on which kind you file for, either Chapter 13 or Chapter 7. And each has pros and cons. In the shoe store you need a knowledgeable salesperson to measure your foot and find the size just right for you. Likewise, to find the right course of action in bankruptcy you need to consult a knowledgeable attorney to find the Chapter just right for your circumstances.

3. “We don’t want your house if we can’t get good money for it.” There is an old saying that warns “be careful what you wish for you may get it.” Secured Creditors sometimes make loud noises about taking back their collateral, but often times they really don’t want your car or your house. Especially when there is no equity or it has big exemptions protecting the equity.

4. “This could actually improve your credit score down the road.” You heard it right, filing a bankruptcy could actually start you on the way to a much improved credit score. Whenever you find yourself in a hole the first thing to do is to stop digging! Filing a Chapter 7 or Chapter 13 Bankruptcy certainly will lower your score, but at least then you can start back on the road to recovery. Continuing delinquencies on credit cards will doom you to perpetual FICO hell. Starting with a clean slate gives you the chance to make rapid improvement in your score.

5. “Debt-settlement firms may do more harm than good.” Trying to get multiple credit card companies to get in line and agree to meaningful debt-settlement is kind of like herding cats. It just does not work. Unless you can come up with a cash settlement for creditors debt-settlement is doomed to failure. If you don’t qualify for a Chapter 7, making payments per a Chapter 13 Plan is a much better option.

To speak with a Los Angeles bankruptcy attorney contact the Law offices of Chirnese L. Liverpool at (818) 714-2200.

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All debtors are required to take 2 courses upon filing bankruptcy.  The first course (credit counseling) must be taken prior to filing bankruptcy (with a few exceptions) otherwise, the debtor risks having their case dismissed.  Congress, As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA),  required that all persons take a credit counseling course before they are allowed to file a bankruptcy case, and another post-filing debtor education course after the case is filed.  So, everyone filing bankruptcy these days must take two courses and file a Certificate with the bankruptcy court for each course. 

Credit Counseling is big business these days.  The cost of taking a credit counseling course is usually $50 per debtor for each course.  For a married couple, this has increased the cost of bankruptcy by nearly $200.  However, the bankruptcy law offices of Chirnese L. Liverpool recommends the cheapest pre-filing course certificate  (costs $5) unless the certificate is needed TODAY, then I suggest taking your course through this provider (costs $25).

Not all credit counseling agencies may offer bankruptcy counseling.  The agency must be approved by the United States Trustee’s Office, and they have provided a website of the approved agencies. 

I recently went through the list of approved agencies, and the good news is that the cost of the pre-bankruptcy course is down to as little as $5.  Here is a list of the some of the cheaper credit counseling agencies approved by the U.S. Trustee in California:

                                                                                                                   Cost

• ConsumerBankruptcyCounseling.info                           $  5
• National Literacy Foundation                                          $ 25
• Abacus Credit Counseling                                                  $ 25
• InCharge Education Foundation                                     $ 30

If you need to speak with a chapter 7 Los Angeles bankruptcy attorney contact the Law offices of Chirnese L. Liverpool at (818) 714-2200.

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By Maxwell Law Firm

Here are some questions that come up related to bankruptcy and employment

Will I be fired from by job if I have filed bankruptcy in the past?

To start, the Bankruptcy Code provides at 11 USC 525 that employment discrimination are prohibited by public and private employers against individuals that file for bankruptcy protection

Will i be able to get a job after i file for bankruptcy?

Generally speaking, your employment status should not change. No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act. In most cases you do not have to disclose the fact you have filed.

Does Bankruptcy Affect a position where security clearance is involved?

Here is what the law states:

“A governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.” So basically we know that you can not be fired per se for filing for bankruptcy.

With respect to the security clearance required to keep this position, the answer depends. Much of this inquiry ultimately depends upon the nature of your debt, the reasons for your financial troubles, and your efforts to alleviate the same. BUT keep in mind that the amount of your unpaid debts, by itself, may hinder your security clearance, even if you don’t file bankruptcy. In that sense, not filing for bankruptcy may make you more of a security risk due to the size of your outstanding debts. On the other hand, using a government-approved means of dealing with your debts may actually be viewed as an indication of financial accountability and responsibility. Eliminating your debts through bankruptcy may make you less of a security risk. The reason behind this is that you are more of a risk if you are in financial distress and may do something to compromise your position, such as accepting a bribe.

If you are looking for a  Collection Defense Lawyer and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

In the California area Call the Law Offices of Chirnese L. Liverpool at (818) 714-2200

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BANKRUPTCY AND YOUR CREDIT SCORE

by MAXWELL LAW FIRM, PLLC

There are several factors that are used to determine your credit score. Your credit score is important because that determines what kind of interests rates you are eligible and if you are even qualify for additional or any credit.

Mainly five other data points make up the bulk of the FICO score:

- Payment history (35 percent of the rating)

- Length of credit history (15 percent)

- New credit (10 percent)

- Types of credit used (10 percent)

- Debt (30 percent)

How do certain actions effect your score:

According to a recent CNN report, a mortgage payment that is 30 days past due can drop a score anywhere from 40 to 110 points. Being 90 days late can cause the score to fall 70 to 135 points. But foreclosures and bankruptcy can have the most significant impact on scores with a foreclosure causing an 85-160 point drop. Short sales can reduce your score as much as 200 points! Bankruptcy believe or not can acutally improve hurt scores or can decrease a someone in fair condition with alot of debt anywhere from 20-50 points. Debt settlement (without bankruptcy) can also be determental to a debtor’s score. In these situations is always good to consult with a Bankruptcy Attorney.

Working With an Bankruptcy Attorney

Bankruptcy is a complex process, but can give people the fresh start they need. If you are considering bankruptcy or concerned about how it will affect your credit and your future, discuss your situation with an experienced chapter bankruptcy attorney.

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BANKRUPTCY AND MORTGAGE LOAN MODIFICATIONS

By Maxwell Law Firm, PLLC

LOAN MODIFICATIONS IN GENERAL

A loan modification is a permanent loan restructure or a temporary Mortgage Forbearance (technically not a modification of a mortgage loan since it is temporary in nature but is the more common agreement). This agreement typically states :

1. *The terms of repaying your obligation to the lender
2. *The interest rate
3. *The amount of payment each month
4. *The number of years of the loan (sometimes extending that period to make more money off the modification)
5. *The grace period on payments (if any)
6. *Late charges
7. *Penalties or other additional charges
8. *Additional interest charges on delinquent amounts
9. *What constitutes a default and breach of contract
10. *The lenders right to collect or foreclose

A lender will typically modify a loan only if If the lender makes more money (or loses less money) by Loan Modification Attorney they will. You have to demonstrate and convince your lender that the mortgage modification you want will make them more money (or lose less money) than if the lender forecloses

BEWARE OF LOAN MODIFICATION COMPANIES

Often times these companies are run by unqualified individuals and companies who do not know the debt/foreclosure laws and do not care. These companies will do little or nothing more than gather your documents. This will not speed up or ensure your modification is successful. They do not have any bargaining power. These companies are noting more scam artists trying to take what little money you have left only to present you with the harsh reality that loan modifications are arbitrary and the bank can deny them for any reason and at any time.

Here are some tips when dealing with a Loan modifications :

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BANKRUPTCY AND STUDENT LOANS

BY Maxwell Law Firm
Generally, student loans are ineligible for cancellation (discharge) in bankruptcy. In order to have student loans discharged, Courts use different tests to evaluate whether a particular borrower has shown an undue hardship. This is a very hard test to meet. Chirnese Liverpool a Los Angeles Bankruptcy Attorney often uses Jamie Foxx’s character in the Soloist as an example of a person who would be eligible for such relief.

YOU ASK YOURSELF HOW WOULD FILING FOR BANKRUPTCY BENEFIT ME? IF I CAN NOT GET MY STUDENT LOANS DISCHARGED AND CANCELLED

Well bankruptcy laws do provide you with some relief. You can have other debts discharged in a Chapter 7 bankruptcy such as unpaid medical bills, secure mortgage debt (if you surrender a home), avoid new judgments and liens, certain tax debt, avoid certain contracts (leases, cell phone contracts) and high credit card balances . With a chapter 7 discharge you will have more disposable income available to pay your student loans.
In addition while you are going through the bankruptcy process, your student loan providers are prevented from collecting funds from you or reporting any defaults during that time. During this time, you can contact your student loan providers and request that they provide you with a deferment on the loans until you can sort things out with your finances and the bankruptcy. You may want to also request that they consolidate your loans and apply for a fixed rate on the consolidated loans.

IF I FILE FOR BANKRUPTCY WILL I BE ABLE TO APPLY FOR STUDENT LOANS IN THE FUTURE

Keep in mind Bankruptcy discharges should not affect your ability to get future federal loans and grants. An exception to that is PLUS loans and private loan providers that will look at a prior bankruptcy discharge to determine eligibility in that instance.

If you are looking for a  Debt Defense Firm and or a Bankruptcy Attorney in
in North Carolina Please Call Maxwell Law Firm, PLLC
at 704-461-1883 or contact us here

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“No” is a word that a bankruptcy attorney will not often use. Should attorneys say no a little more often? Maybe. So if an attorney is inclined to decline, what reasons would they have to make this decision? Here are a few:

Cases with no real debt

If you don’t have debt then why are you looking to file bankruptcy in the first place? Bankruptcy is a large time commitment and a complicated process. If a client does not have a lot of debt they may be pointed to another option. The federal bankruptcy court regulates bankruptcy fees. What is the point of filing if someone has debt that is near the amount of those fees? If bankruptcy isn’t a client’s best option, an attorney will probably not take their case.  In our office, we try to ensure that our clients have at least $5000 in debt unless there is some other emergency reasons needed for filing bankruptcy.

Too many unsuccessful bankruptcy filings

When a client has filed too many bankruptcy cases that have been dismissed for whatever reason, attorneys may not wish to represent them. You will probably have the same results as before if you have filed for bankruptcy in the past and had it dismissed. If is going to approve your case they will want to see that you are serious about completing a case from start to finish. Many will think you lack dedication if you have been denied in the past. An attorney puts everything on the line and they stand behind their client 100% when they file a case. When a case is dismissed, an attorney’s reputation can take a hit. An attorney will always be happy to help someone who wants to help themselves. It will be hard to find a quality, experienced bankruptcy attorney if you aren’t serious about doing that.

You’ve already filed bankruptcy

If your case has already been filed many attorneys will not want to represent you, this is because attorneys like to do things their way. If another attorney has handled part of the case and then you try and bring it to someone else they may not want to have to deal with interpreting or correcting another lawyer’s tendencies.

Most people who are represented by bankruptcy attorneys are honest, hardworking people who have simply fallen on hard times. If you aren’t sure whether or not you meet someone’s case criteria ask to set up a free consultation with them and see if they will consider your case. After all, it’s in your best interests. If you need a free consultation on your bankruptcy call us here at  818-714-2200.

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As a California bankruptcy lawyer, I see the same mistakes made by clients all the time. To add to my series of articles on bankruptcy mistakes, another slip-up I see occur often is people waiting too long to file for bankruptcy. You may think that waiting to file is the best route you can take, and it is possible that you may not need a California bankruptcy lawyer, but only if you do your research early enough.

I know that many of the people that come into my office aren’t sure when they should file for bankruptcy, and as a Los Angeles bankruptcy lawyer, I can tell you there never really is a “right time.” That being said, I’m sure you would rather not file for bankruptcy, but if you end up waiting too long to resolve your debt, the result may be wage garnishment, bounced checks, eviction, foreclosures, etc.

After handling many cases over the years, as a Los Angeles bankruptcy lawyer, I know that the first instinct for many people is to try and solve their financial problems on their own. The most common road many clients have taken is to sell their personal property to try and pay off debt. You might dip into your savings account, sell some of your property or even pull from your retirement fund to try and reach financial stability. Before getting rid of all of your assets to try and pay your debt you want to do your research first.

As a California bankruptcy lawyer, the best advice I can give you is that research is the first step you should take once you’ve realized your heading deeper into debt, so you want to collect as much useful material as you can. I offer great information that is free and instant, right here on my bankruptcy blog.  By doing your research, you can arm yourself with the right information so you don’t make any decisions you may later regret, and you may find that you don’t even need a Los Angeles bankruptcy lawyer.

If you feel that you don’t have time to research because your debt is crushing you,  set up an appointment with us to immediately talk about your options regarding your debt. Being proactive about your debt is a great step to take. Most people that wait too long to seek debt protection are upset that they’ve given up all of their assets when they could have potentially saved it with bankruptcy.

If you need a free consultation with a California bankruptcy lawyer, call the law offices of Chirnese L. Liverpool at (818) 714-2200 today.

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In Romania, there is an expression, “Don’t go trying to be more Catholic than the Pope.” And when it comes to Wells Fargo and Wachovia, as you will see below, that is exactly what they are doing. They are acting more like bankruptcy officials than what they are, a bank.

A bank has the right, in certain instances, to a setoff. A setoff is a legal right afforded to your bank whereby it is permitted to seize the money out of your bank account the moment that you have defaulted on a loan with your particular bank. In the bankruptcy context the bank’s right to a setoff will occur as follows: You have a checking account and a car loan with Big Bank. You are current on your car loan with Big Bank. Say you file for bankruptcy. The moment that you file for bankruptcy you are deemed to have defaulted on your car loan with Big Bank. As a result, Big Bank can now freeze your bank account and eventually can take your money that was in your account.

What Wachovia and Wells Fargo now do is take the concept of a setoff to a whole new level. According to Wachovia and Wells Fargo, if you file for chapter 7 bankruptcy, they will freeze your bank accounts that you have with them, regardless of whether or not you have any loans with them. I repeat, you do not need to have a credit card, car loan, mortgage or any other type of loan with Wachovia and Wells Fargo for them to freeze your account. The moment that Wachovia/Wells Fargo discover that you have filed for chapter 7 bankruptcy they claim to have the right to “freeze” your bank accounts and await the guidance of the chapter 7 bankruptcy trustee to see if and when they should release those funds back to you. Meanwhile, weeks go by during which you cannot access your money, your outstanding checks have bounced, and your automatic monthly payments are no longer being honored by Wachovia/Wells Fargo.

Wells Fargo and Wachovia take the position that its policy is a sound one that benefits the bankruptcy system because they believe that your money in your bank account is property of estate. Meaning when you file for chapter 7 bankruptcy everything that you own, theoretically, now belongs to the trustee, whose job is to administer all of your assets on behalf of your creditors, subject to certain exemptions, allowing you to keep certain property. Their misguided notion is that the money in your bank account is property of the estate and that they have a duty to preserve it for the bankruptcy trustee.

Hey, Wells Fargo/Wachovia, what gives you the right to play both judge and jury?! Why are you taking on the role of a bankruptcy trustee? When someone files for chapter 7 bankruptcy and exempts the funds that they have in your bank, it is up to the trustee to decide if those exemptions were properly taken. And if the trustee happens to decide –in those rarest of cases- that the exemption taken by the filer was improper weeks after the bankruptcy case was filed, then believe me, the trustee will not be shy about making that objection and coming after the individual who filed for bankruptcy. And what of the fact that no other bank in the United States has such a policy at this time? You think that might be an indicator that you might be acting a bit too overzealously?! What’s next, freezing my bank accounts because your computer system just found out that I have some outstanding parking tickets? After all, there is a chance that when the law finally catches up to me, I may not have the funds to pay for those tickets.

Now, in Wells Fargo/Wachovia’s “defense”, their policy also states that they will not employ this draconian measure unless the individual has at least $5,000.00 in their bank account(s). However, out of an abundance of caution, if you are contemplating filing for bankruptcy, take your money out of your Wells Fargo/Wachovia accounts and place it elsewhere. After all, as much as it might be interesting for you to take your case all the way up to the Supreme Court, you probably would rather avoid that fight

If you are interested in speaking with a California bankruptcy attorney, give the Law offices of Chirnese L. Liverpool a call at (818) 714-2200.

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1. What is the Creditors Hearing?
The Creditors Hearing, commonly referred to as “the 341”, is a required hearing that takes place after your bankruptcy case is filed with the California bankruptcy court. At this hearing, a bankruptcy trustee will be asking you a series of questions that relate to your case. As your bankruptcy attorney, I will of course be there with you as well on that day.

2. Who is the bankruptcy trustee and what’s with all the questions?
The bankruptcy trustee is a lawyer (majority of the time) who represents the interest of your unsecured creditors. The trustee’s job is to ensure that you have truthfully disclosed all information on your bankruptcy petition and that you do not have any non-exempt assets that can be seized and liquidated on behalf of your unsecured creditors. The trustee is looking to see if there is any property/equity that you have inadvertently “forgotten about.”

3. What kind of questions will the bankruptcy trustee ask me? Will I have to prepare?
Each trustee asks virtually the same kinds of questions during each hearing. For example, have you listed all your assets? Have you listed all your creditors? NOTE: As your bankruptcy attorney I will ensure that you know in advance what questions you will be asked. Prior to my clients’ hearing, I go over the questions so that there are no surprises.

4. When does the Creditors Hearing occur?
Here in Los Angeles, California the hearing takes place about 4 to 5 weeks after your case gets filed with the court. After your case has been filed, the computer determines the date and time of the hearing.

5. Will I be going to court that day?
No, you will not. Please do not make the mistake of visiting the bankruptcy court. The hearing is not a formal court proceeding and will not be taking place at the bankruptcy courthouse.

6. Where does the hearing take place?
Bankruptcy hearings in the central district of California are located in a few different locations, which one you are assigned to is based on your zip code.  However, you will receive notice in the mail from the bankruptcy court regarding your hearing date, time and location.

7.  How long is the Creditors Hearing?
The waiting time can be anywhere from 5 minutes to 1 hour. The hearing itself however, typically last no more than 5 minutes.

8. In what order will my case be called?
The higher caliber your attorney is, the quicker your case will be heard. Kidding! The order is determined by the computer system. It is just a matter of luck. Your case could be the first one on the docket or you could be the very last.

9. How should I dress for the Creditors Hearing?
Like I said, the Creditor’s hearing does not occur at court so there is no need for a suit. I would recommend business casual.

10. Will my creditors be at the hearing?
Highly unlikely. Despite the name, creditors rarely appear at hearings. Barring a particular thorny issue in your case, only the trustee will be there to ask you some questions.

11. What documents do I need to bring to the hearing with me on that day?
DRIVER LICENSE AND SOCIAL SECURITY CARD. Please do not forget these items as that can cause your case to be reconvened to a later time. Do you really want to come back for this thing again?!

12. Should I be worried about the Creditors Hearing?
No. I know you may be thinking, “That’s easy for you to say,” but upon exiting the hearing, most of my clients say to me, “Is that it?” Do you know how sometimes in life you can make something in your head a bigger deal than it actually is? Well, this is one of those times.

13. What if I forget to show up at the hearing?
Failure to show can result in your case being dismissed!

14. The hearing ended. Now what happens?
Now, you can go next door to grab a cup of coffee and a croissant to celebrate. Although your case is still pending, the hardest part is behind you. Barring something unusual like an objection from a creditor, within 60 to 80 days you will receive your letter of discharge. This is an order from the bankruptcy court that states that your debts have been forgiven. Now, you can really celebrate!

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Remember that old Master Card commercial? You know the one that went something like this: Your daughter’s dream wedding dress $4,000, securing the perfect venue for the wedding $6,000, feeding over 100 guests $11,000. Seeing your little baby girl walking down the aisle for the first time…priceless. Some things in life money just can’t buy, for everything else, there’s Master Card.

And how in the world does this relate to bankruptcy?

Well, here is my version of this commercial with a twist:

Being forced into filing a chapter 13 instead of a chapter 7 bankruptcy because Susan’s salary has increased from $60,000 to $70,000 after putting off filing for several years=$10,000 in unnecessary payments.

John’s decision to file for bankruptcy AFTER the foreclosure sale has occurred instead of before and depriving himself of this expense on the means test = an additional $15,000 in payments.

Joe’s decision to move out of the marital home after he and his wife have decided to file for divorce and thereafter deciding to file for bankruptcy necessitating a  chapter 13 bankruptcy filing due to his high earnings =$20,000 in wasted payments.

Seeing a bankruptcy lawyer well in advance, when you first detect trouble, so that you can formulate a plan and know your options, priceless!

We hear it all the time, life is all about timing, and when it comes to bankruptcy law, that is especially true. The timing of the bankruptcy filing can make a huge difference. In other words, procrastination, as usual, can lead to problems. So, whether you live in Los Angeles, California or some other part of the State of California, go and see a bankruptcy attorney and get her advice.  Notice that I said go and see a bankruptcy attorney; you don’t necessarily have to hire them, just get yourself informed.

And in case you are wondering, the names I have used in this article are indeed fictitious, but the factual scenarios regrettably are not. Most bankruptcy lawyers offer a free initial consultation. Take advantage of that now, instead of later. At the very least arm yourself with information.

To schedule your free consultation with Los Angeles bankruptcy lawyer, Chirnese Liverpool, call us at (818) 714-2200.

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