When Is the Best Time to File Bankruptcy?

It is important to think about when you file bankruptcy. Certain times are better for filing bankruptcy than others. Think about the following things when planning to file bankruptcy:

• Do not wait until the last minute if you might be facing garnishment, repossession, eviction, or foreclosure. It takes some time to fill out your bankruptcy forms. You must have enough time to receive your pre-bankruptcy filing course certificate, otherwise we cannot file your petition. Do not wait until your situation is an emergency.
• If you are not facing garnishment, repossession, eviction, or foreclosure, you may want to wait to file bankruptcy. If no one in your household has employment income, and you are not at risk of losing any assets, you might not need to file bankruptcy at this point. Remember, you can only file bankruptcy once every eight years. If there is a chance your financial situation might get worse, it is wise to wait and file bankruptcy then.
• If you have been unemployed but you expect to get a job soon, you may want to file bankruptcy now. Creditors can’t garnish your income when you are only receiving public benefits. Once you start earning money, you might be garnished. Also, a good time to get a fresh start is when your financial situation is about to improve. This is when to wipe the slate clean and start over.
• You should not file bankruptcy yet if you expect more large debts to come along. You can only file bankruptcy once every eight years. If you know that you will probably have more debts happening soon, you should wait to file bankruptcy. That way all those debts will be included. For example, You may be pregnant, if you file now, you will not be able to include hospital bills in your bankruptcy.  Or maybe you know you have to have surgery in the next year. If you file bankruptcy now, you will not be able to include the hospital bill for the surgery. You will have to pay it.

If you need assistance in determining when is the best time for you to file for bankruptcy, call the Law Offices of Chirnese L. Liverpool at (818) 714-2200 to schedule your free phone consultation.

If you live in North Carolina and are in need of bankruptcy assistance, contact the Maxwell Law Firm, PLLC at 704-461-1883.

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What are my options if I have no equity in my home?

Due to the current state of of our economy, a lot of homeowners have no equity in their home.  What is equity, equity is owing less on the home that the home is worth.  If you owe more than your house is worth, than you have no equity in your home., if you have no equity in your home, you have three options: (1)  Continue to live in and pay for the house and pray that the home value increases, (2) return the home to the bank or (3) sell the home.    If you decide to exercise option 2 and give the house to the bank, this may be done, with or with out a bankruptcy.  If you do not file a bankruptcy then there may be a deficiency owed for the difference between the foreclosure sale price and the amount remaining on your loan.  The bank may attempt to collect the difference from your personally or may file a 1098/1099 with the IRS, and treat the deficiency amount as earned income.  You would then be personally liable for the difference as if it were earned income from that tax year.  A bankruptcy or reorganization may save you from the deficiency judgment and the 1099 taxable gain.  Call your California bankruptcy lawyer at (818) 714-2200 for more information.

If you are seeking bankruptcy help the Law offices of Chirnese L. Liverpool can help you in California and Nevada.

If you need assistance in North Carolina, contact the Maxwell Law Firm, PLLC.

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This all depends on several factors, but here is the general rule.  Generally, if you have a rental property that you are receiving monthly rents on and plan on filing a chapter 7 bankruptcy the rental income may belong to the mortgage lender.  Please
refer to your mortgage and note for details, but often rental income is assigned as part of the mortgage.  If you were to file a chapter 7 or 13 bankruptcy, you may still not be able to keep the  income from the rental property.  In a chapter 7 bankruptcy, the bankruptcy estate would own the rental property and the bankruptcy trustee would be the proper party to collect the rental income.  Even if you receive the rent paid to you directly, you may be required to turn over the rent to the bankruptcy trustee.  If you file a chapter 13 or reorganization, the rental income may be used in calculating your income for purpose of determining your discretionary income and ultimately your chapter 13 plan payments.

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Bankruptcy gives protection to people in financial trouble who are drowning under piles of debt. Because of today’s difficult economic times millions of people are exercising this protection of filing bankruptcy, Chapter 7 or Chapter 13. The bankruptcy laws were created by Congress to provide relief to those who have been victimized by the rising rate of unemployment, inflation, staggering medical bills, disability, high interest rates, foreclosure, divorce or identity theft.

We are a debt relief agency and can help you reduce or eliminate your liabilities and keep your property. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. We can assist you and your loved ones with filing for bankruptcy and the avoidance of judgments. To review the fees and costs associated with filing bankruptcy visit our bankruptcy page.  Contact the Law Offices of Chirnese L. Liverpool at (818) 714-2200.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the bankruptcy fees by scheduling your appointment online.

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Not all debts are dischargeable in bankruptcy!  Non-dischargeable debts are those that the Chapter 7 petition will not eliminate and which you will still have to repay according to your agreement with the creditor.  I have compiled a list of debts that are not dischargeable for your review.

1. Debts incurred by fraud or false pretenses;
2. Debts incurred by willful and malicious injury
3. Debts incurred by a false statement in writing (such as false credit application)
4. Debts incurred by embezzlement or larceny;
5. Criminal fines and restitution
6. Spousal support or child support obligations (including arrears owed)
7. Student Loans (unless you can prove “undue hardship“)
8. Debts resulting from death or personal injury by debtor operating a motor vehicle while intoxicated.
9. Marital Equalization Obligations (Ch. 7 only–these may be discharged in a Ch. 13).
10. Income taxes for tax years less than 3 years ago
11. Fines and penalties owed to a governmental unit.

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Bankruptcy gives protection to people in financial trouble who are drowning under piles of debt. Because of today’s difficult economic times millions of people are exercising this protection of filing bankruptcy, Chapter 7 or Chapter 13. The bankruptcy laws were created by Congress to provide relief to those who have been victimized by the rising rate of unemployment, inflation, staggering medical bills, disability, high interest rates, foreclosure, divorce or identity theft.

We are a debt relief agency and can help you reduce or eliminate your liabilities and keep your property. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. We can assist you and your loved ones with filing for bankruptcy and the avoidance of judgments. To review the fees and costs associated with filing bankruptcy visit our bankruptcy page.  Contact the Law Offices of Chirnese L. Liverpool at (818) 714-2200.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the bankruptcy fees by scheduling your appointment online.

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When I do my bankruptcy consultations with my clients, I generally tell them that after I file their petitions, the bankruptcy court clerks go in 2-3 nights later and prepare all of the bankruptcy notices to be mailed, then it goes thru the mail for 4-5 days, so it can be a week or so before your creditors will receive actual physical notice in hand that you have filed for bankruptcy.  They will be provided your case number, the date your bankruptcy was filed, your attorney’s address and phone number, the Trustee’s address and phone number as well as the bankruptcy court’s information.

One of the greatest benefits of filing bankruptcy is that it stops creditor harassment (the automatic stay). If you receive a call from a creditor, let them know you have filed bankruptcy and give them your case number. You can also let them know that Chirnese Liverpool is your bankruptcy attorney and instruct them to contact our office if they have any further questions.

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Bankruptcy gives protection to people in financial trouble who are drowning under piles of debt. Because of today’s difficult economic times millions of people are exercising this protection of filing bankruptcy, Chapter 7 or Chapter 13. The bankruptcy laws were created by Congress to provide relief to those who have been victimized by the rising rate of unemployment, inflation, staggering medical bills, disability, high interest rates, foreclosure, divorce or identity theft.

We are a debt relief agency and can help you reduce or eliminate your liabilities and keep your property. We help people file for bankruptcy relief under the U.S. Bankruptcy Code. We can assist you and your loved ones with filing for bankruptcy and the avoidance of judgments. To review the fees and costs associated with filing bankruptcy visit our bankruptcy page.  Contact the Law Offices of Chirnese L. Liverpool at (818) 714-2200.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the bankruptcy fees by scheduling your appointment online.

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The Maxwell Law Firm, PLLC Seven Steps To Bankruptcy

• STEP 1:  Bankruptcy Questionnaire
• STEP 2:  Gather Required Documents
• STEP 3:  Meet with Us
• STEP 4:  Take Consumer Credit Counseling Course
• STEP 5:  Review the Petition Draft
• STEP 6:  Mandatory Post-Filing Financial Management Course
• STEP 7:  The Bankruptcy Court Meeting

Congratulations – You are off to a fresh start!

The attorneys at the Maxwell Law Firm, PLLC are committed to not only helping hard-workingtake control of their finances but also to resolving financial problems and finding opportunities to generate income for families who have been wronged by banks, creditors and collection agencies. If you are having trouble managing your debt, our skilled attorneys will council you to help you get back on your feet.  The bankruptcy laws exist to protect people who have fallen on hard times and need to make a fresh start.  Bankruptcy does not have to be scary and it is not have to create shame for you or your family. We understand the financial problems plaguing our country and want to be your advocate in helping you to take responsibility for your financial future.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the fees by scheduling your appointment online. Save $200.00 off the fees if you retain our firm before January 15, 2011. Attorney Chirnese Liverpool assists debtors with assistance with filing for bankruptcy in Nevada and Los Angeles.

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Chapter 7 Bankruptcy filings are only $999 for the attorney fee.  In addition, the court charges a $306 court filing fee*. Our $999 fee includes:

• the intake consultation with attorney Chirnese L. Liverpool
• preparation of your Bankruptcy Petition;
• a comprehensive credit report
• letters to creditors as necessary (to stop foreclosure or garnishments immediately);
• Preparation of the trustee package and delivery to trustee;
• representation at the “341a″ meeting of the Creditors;
• and
• representation through the discharge of the bankruptcy.

For a free bankruptcy phone consultation, call the The Law Offices of Chirnese L. Liverpool at (818) 714-2200.

* Credit counseling is not included, you can complete credit counseling on your own or use our preferred service for the pre-filing counseling course for $5 and the post-filing counseling course for $7.95 – both classes total $12.95. This offer price does not include self-employed inviduals or business filings.

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Chirnese L. Liverpool assists clients with filing for bankruptcy in California as well as all of Nevada.  Our office represents clients with:  bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, and chapter 13 bankruptcy representation. We can be reached at (818) 714-2200.

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I am often asked what steps a person should take before filing for bankruptcy, says Charlotte Bankruptcy Attorney Victorianne C, Maxwell and I often have a few points I can discuss with potential clients.

1. Run a free copy of your credit report so that you can really see what is listed on their and how much debt you are likely in.

2. Compile any unpaid medical bills that may not be listed on your credit report.

3. Take a look at your monthly expenses vs. your monthly income. You can do this by compiling some paystubs, tax returns, and paystubs.

4. Take a look at your bank account deposits and withdrawals and see if they numbers add up. The biggest issue we come across in bankruptcy is when the clients bank statements are much more then what they report on their bankruptcy petition.

5. Contact IRS , the state, and county to see if there are any outstanding tax balances. Keep in mind old tax debt can be discharged in bankruptcy if certain conditions are met.

6. Make a list of questions you may have about bankruptcy and the process.

7. Schedule your appointment with a bankruptcy attorney. Be sure to bring all the information listed above to your appointment and any additional information that the Attorney requests such as a intake form.

8. Relax. Bankruptcy is not the end of the world, it could be the fresh start for you and put you on the road to being debt free.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, tax services. filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the fees by scheduling your appointment online. Attorney Chirnese L. Liverpool is a Bankruptcy Attorney who assists debtors in filing for bankruptcy in Nevada and California, her office can be reached at 818-714-2200.

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Charlotte Bankruptcy Attorney Victorianne C. Maxwell of Maxwell Law Firm, PLLC notes that January is the best time to look for job, because more positions become open based on employees retiring and or moving on to new positions. Certain employers such as governmental agencies, jobs requiring security clearances, and or insurance companies run background and credit histories on job applicants. It is perfectly legal to run a credit history on applicant, upon receiving their informed consent.

HOW CAN EMPLOYERS VIEW MY NEGATIVE CREDIT HISTORY

Although employers can not discriminate based on you filing for bankruptcy, they can reject your application based on negative items on your credit file such as judgments, repossessions, foreclosures, and collection accounts. Often times an employer will indicate during the application process that your application can be rejected or employment not be offered based on negative credit history. Why do you ask would employers be so concerned with your credit history? Some employers look at a negative credit history as a sign of irresponsibility and or an inability to properly manage your finances. An employee with judgments and other financial woes may be more likely to commit fraud and or embezzle funds from the company or agency. Not saying that this is always true, but it is certainly an impression that most employers now have. For example, it is not likely that IRS will hire you have tax liens.

EMPLOYERS MAY NOT DISCRIMINATE AGAINST YOU BECAUSE YOU HAVE FILED FOR BANKRUPTCY 

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. 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 cannot be fired per se for filing for bankruptcy. Now they can conduct an investigation to see if you are in violation of your clearance. Please note that unpaid bills and delinquencies, tax debt can viewed as a violation of a security clearance but bankruptcy may not.

HOW DOES BANKRUPTCY CLEAN MY CREDIT UP?

Bankruptcy is a fresh start on your credit file, depending on the chapter of bankruptcy you file, it could be within a few months or years. Once you receive your discharge, you will be able to start the clock back and start rebuilding your credit immediately. You can get a FHA mortgage two years after receiving your discharge from a chapter 7 case and immediately apply for a car loan. Speak with a Bankruptcy Attorney in your area for your options.

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Chirnese L. Liverpool assists clients with filing for bankruptcy in California  as well as all of Nevada.  Our office represents clients with:  bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, and chapter 13 bankruptcy representation. We can be reached at (818) 714-2200.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy  representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the fees by scheduling your appointment online. Your consultation will be free if you schedule your appointment during the first week of January of 2012 online.

California Bankruptcy Attorney Chirnese L. Liverpool assists debtors in Los Angeles area. Her office can be contacted by calling 818-714-2200.

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No, the Bankruptcy Means Test isnt an exam.

The bankruptcy “means test”is a way for the court to determine if someone is eligible to file bankruptcy. The point of the test is to compare your last six months of income with the median income earned by all California residents over the same half-year period of time. In this case, less is better, because if your household income is less than the median amount, you probably qualify to choose either Chapter 7 bankruptcy or Chapter 13 bankruptcy; if your income exceeds the median amount, Chapter 13 may be your only option.

The means “test” is not an exam that you have to take.  It’s just a measurement that helps us decide what kind of bankruptcy chapter you are eligible.

As part of the means test, certain deductions for expenses are allowed.  There are deductions for food, clothing, household supplies, personal items, housing and utilities, and vehicle operation expenses.  “Other necessary expenses” include taxes, mandatory payroll deductions, term life insurance, education for employment, and healthcare. As you may imagine, after all these deductions are applied, the income amount that is left is much smaller, making it more likely that the individual will have the option of filing Chapter 7 bankruptcy.

On the other hand, it’s important to remember that the whole idea behind the means test is to ensure that only debtors who truly need relief should be eligible to file Chapter 7.

The Census Bureau Median Family Income is keyed to family size.  As of today,  December 6, 2011, (numbers were updated on November 1, 2011)  for example, the California median income number for households with one income earner is $47,683.  For families of two, the number is $61,539, for families of three, $66,050, and for families of four, $74,806.

Seems strange, doesn’t it?  While it doesn’t happen for the majority of my California bankruptcy clients, it’s possible to have too little income to pay the bills, yet, at least according to the bankruptcy means test,  have “too much” income to file bankruptcy!

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Chirnese L. Liverpool assists clients with filing for bankruptcy in California  as well as all of Nevada.  Our office represents clients with:  bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, and chapter 13 bankruptcy representation. We can be reached at (818) 714-2200.

Maxwell Law Firm PLLC represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-461-1883.  Save an additional 25% off the fees -by scheduling your appointment online.

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By Chapter 13 Attorney

Bankruptcy Fees

Chapter 7 Attorney’s fees are typically less than what it costs to file Chapter 13. This is because a chapter 13 typically takes a lot more time and work. So you can expect that the fees for Chapter 13 generally to be two to three times what they are for Chapter 7. The filing fee for Chapter 13 is a few dollars less than Chapter 7.

Duration of the Bankruptcy

Chapter 7 typically lasts anywhere from three to four months from the date of filing to discharge. Chapter 13 lasts anywhere from three to five years, based on a plan confirmed by the trustee.

Debts and How they are handled

Chapter 7 is a straight liquidation bankruptcy where unsecured debts are discharged; secure debts are affirmed or rejected as is; and priority debts continue after the bankruptcy.

Chapter 13 is more complex. All debts are paid for during the duration of the plan (3-5 years). Unsecured debts are discharged at the end of the confirmed plan. The benefit of a Chapter 13 is that liens can be stripped, meaning that secure loans can be reduced to the value of the property that secures that particular loan (mortgages, car loans).  Secure debts and priority debts continue after the conclusion of the plan, if they are not paid off.

Qualifying for Bankruptcy

A person qualifies for Chapter 7 bankruptcy if their gross income falls below the median income and or they have no disposable income available to pay their debts, after their necessary expenses are paid.

A person qualifies for Chapter 13 if their gross income is above the median income and where they have enough disposable income to pay towards their debts. This disposable income is what is used to determine their plan payment over the duration of the bankruptcy (three to five years).

If you need assistance with unpaid medical bills, preventing foreclosure , preventing repossession, reducing financial liabilities, stopping wage garnishments, preventing collection calls, debt settlement, reducing or eliminating tax debt, and or rebuilding your credit consider consulting with us for your options. Chirnese L. Liverpool assists clients with filing for bankruptcy in California  as well as all of Nevada.  Our office represents clients with:  bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, and chapter 13 bankruptcy representation. We can be reached at (818) 714-2200.

Maxwell Law Firm PLLC represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-461-1883.  Save an additional 25% off the fees -by scheduling your appointment online. California Bankruptcy Attorney  Chirnese L. Liverpool assists clients with filing for bankruptcy in the Los Angeles area.

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Client’s always ask me what they should do to prepare for filing for bankruptcy and I tell them there are some basic pieces of information and documents that are necessary.

In addition to the bankruptcy intake form, generally I request my clients to provide are :

• Six months worth of the previous months bank statements
• Tax Returns for the past two years
• Paystubs for the past six months to show your average income
• Any information on judgments you have obtained or pending lawsuits
• List of any unpaid medical bills (Account numbers, addresses, balances)
• Retirement Statements
• Life Insurance Declarations
• Pre-filing Credit Counseling Certificate

WHY ARE THESE DOCUMENTS NECESSARY TO FILING FOR BANKRUPTCY ?

All of of the documents assist me in preparing the schedules and statements in the Bankruptcy Petition. The some of the documents need to be disclosed and produced to the Bankruptcy Trustee.

I AM CONSIDERING BANKRUPTCY WHAT SHOULD I DO

Consult with an Bankruptcy Attorney in you area to see which chapter you qualify for and for more information about the process.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the fees by scheduling your appointment online. California Bankruptcy Attorney   Chirnese L. Liverpool assists debtors filing for bankruptcy in the Los Angeles area. You may contact her office by calling 818-714-2200.

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Frequently during my consultations as I explain the bankruptcy process I find myself asking potential clients what assets they own. More often then not I am asked what an asset is, says Charlotte Bankruptcy Attorney Victorianne C. Maxwell.

WHAT IS AN ASSET

Assets are anything, in any form, that a debtor owns. This includes tangible assets such as real estate, cars, and jewelry, as well as intangible assets, such as business goodwill, the right to sue someone, stock options, or future interests in a will.

INDIVIDUAL ASSETS

Personal assets owned by an individual person or persons.

BUSINESS ASSETS

A business asset would be anything owned by a incorporated business, limited liability company or entity other than sole proprietorships and general partnerships. The tangible and intangible items titled in the businesses name would be considered to be business assets.

I OWN STOCK IN A COMPANY HOW IS THAT CLASSIFIED IN BANKRUPTCY

When you are meeting with a Bankruptcy Attorney you need to make sure you list all of your assets and understand the ramifications. If you are filing personal bankruptcy the number of shares you own and the value of those stocks are placed on the petition under your personal assets. Exemptions can be applied to some or all of the value of some if not all of your stocks if they are not used up by other assets.

I AM SELF EMPLOYED AND MY BUSINESS IS INCORPORATED

If you are filing personal bankruptcy than the assets of your business would not be taken into account and listed on the petition. Rather the value of your interest in the business would be listed as you being an owner. A good way to value a business is to look at the value of the business’ assets less the business’ debts.

If you are thinking about bankruptcy you should speak with an Bankruptcy Attorney in your area to discuss your concerns and how your assets and debts will be impacted by filing.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100.  Save an additional 25% off the fees by scheduling your appointment online. California Bankruptcy Attorney Chirnese L. Liverpool assists clients filing for bankruptcy in the Los Angeles Area. You may contact her office at 818-714-2200.

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One of the frequent questions or issues that come up during a consult is whether social security or pension income is income for purposes of determining eligibility  under the means test in Bankruptcy, says Bankruptcy Attorney Victorianne C. Maxwell. The mean test is important because it determines whether a debtor qualifies for Chapter 7 Bankruptcy.

GENERAL SOURCES OF INCOME THAT ARE FACTORED INTO DETERMINING INCOME FOR PURPOSES OF BANKRUPTCY

• wages, salary, tips, bonuses, overtime, and commissions
• gross income from a business, profession, or a farm
• interest, dividends, and royalties
• rental and  real property income
• regular child support or spousal support
• unemployment compensation
• pension and retirement income
• workers’ compensation
• annuity payments
• state disability insurance

SOCIAL SECURITY BENEFITS EXCEPTION & BANKRUPTCY

Under the social security statute 42 U.S.C. § 407 (a) In general The right of any person to any future payment under this subchapter shall not be transferable or assignable, at law or in equity, and none of the moneys paid or payable or rights existing under this subchapter shall be subject to execution, levy, attachment, garnishment, or other legal process, or to the operation of any bankruptcy or insolvency law.

AND

There is also a federal exemption  of social security benefits under 11 U.S.C. § 522(d)(10)(A) for social security benefits. What this means is that social security benefits are excluded from being factored into the debtor’s income to determine whether they qualify under the means test.

OTHER PENSION OR RETIREMENT PAYMENTS

There are no \ exemptions for pension disbursements or payments; therefore, this is included in the calculation for monthly income of a debtor filing bankruptcy.

I’VE LOOKED AT THE NUMBERS AND STILL DON’T THINK ILL QUALIFY

There are other factors that determine eligibility  to file for bankruptcy, such as expenses and those allowed on IRS standards. You should consult with a Bankruptcy Attorney so that they can do a thorough evaluation of your case.

Maxwell Law Firm, PLLC represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. We have two offices in North Carolina one in Concord and in Charlotte. You may schedule your appointment by calling 704-461-1883 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations. In California and Nevada the Law Offices of Chirnese L. Liverpool assists debtors with Bankruptcy and debt related issues. They can be contacted by calling 818-714-2200.

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I frequently get the asked whether consolidating debt harms or benefits your credit, says Bankruptcy Attorney  Victorianne Maxwell of Maxwell Law Firm, PLLC.

WHAT AFFECTS YOUR CREDIT SCORE

Your credit score is is affected by the number of inquires on your credit, number of accounts you have open, balances on those accounts, nature of those accounts, and payment history. Generally, when you apply for a new loan to consolidate your debt a new inquiry is made by the lender. If new inquiry into your credit history may slightly decrease your credit score, but that is easily repaired.

WHEN CONSOLIDATION WORKS

Having several high balance accounts can negatively impact your credit score. If for example you have equity in your home and an opportunity to refinance then you can apply the funds paid to you as party of the equity cash in towards student loans, credit cards, and other installment accounts. This is good because it will lower your balances and increase the amount of credit you are eligible for and will also increase your credit score. Another instance where consolidation is beneficial is when you consolidate your federal student loans, this gives you an opportunity combine balances and get a new lower monthly payment.

WHEN CONSOLIDATION WILL NOT WORK

In order to qualify for a consolidation loan you must show you have sufficient income and your credit score must be good. If you have negative items on your credit, delinquencies, and less income than necessary based on your debt to income ratio than chances are your loan application will be denied. Though it may makes sense to you to apply for a consolidation loan to pay off your debts, it does not to the lender. You have other options if you are unable to pay a debt, seek the advice of a Debt or Bankruptcy Attorney in your area.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, and loan modifications. You may schedule your appointment by calling 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations. In California and Nevada the Law Offices of Chirnese L. Liverpool assists debtors with Bankruptcy and debt related issues. They can be contacted by calling 818-714-2200.

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By Bankruptcy Attorney

There are certain circumstances where a lender can sue a borrower/debtor for what is called a deficiency judgment.

When a lender forecloses on your real property or a car is reposed, typically the lender will mitigate their damages. They mitigate their damages by selling the property at auction (foreclosure sale, or auto auction). The Lender can sue the debtor for the difference between what the debtor owes the lender and what the lender received at auction, if the amount received at auction is less than the debt. This is called a deficiency judgment.

What should you do if you are being sued by a creditor? Contact a Debt Defense and or Bankruptcy Attorney  immediately. Why? Because there is a big chance that the Attorney can prevent the judgment and or save your other property from seizure. Creditors can sell your other property once they receive a judgment and have a writ issued to satisfy this judgment. A Bankruptcy Attorney can also most likely save you from foreclosure and repossession if you contact them in time.

Maxwell Law Firm, PLLC advices clients on bankruptcy laws, assists clients with filing for bankruptcy, representation in bankruptcy court, loan modifications, defending against foreclosure, garnishments, deficiency judgments, help with medical bills, and payday loans. You can contact them at 704-780-1100

California Bankruptcy Attorney Attorney  Chirnese L Liverpool assists debtors in the Los Angeles Area 818-714-2200.

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By Bankruptcy Lawyers 

Many times people come into my office and ask this question: “How can I get out of my mortgage, I just want to give the property to the bank and walk away”  Generally, my answer is as follows:

option # 1 Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

Pro: it will release you from the original mortgage liability

Con: More often than not, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of the property. Bank can still try and collect on the original note balance after they sell property at auction or provide you with a 1099 for income for the difference. This will harm your credit.

option # 2 short sale

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. Sale must be approved by lender.

Pro: part of the debt will be forgiven with the sale.

con:  This option does the most damage to your credit scores and remains on your credit for 7-8 years. Bank can still try and collect on the original note balance after they sell property at auction or provide you with a 1099 to report the forgiven debt as income for the difference. Not only will you have a large tax liability in that your, but the short sale will lower your score more than 200 points. More than any of the other options.

option # 3 foreclosure

This is the legal process whereby the mortgagee (loan company) seeks judicial assistance in retaining ownership and possession from the mortgagor (borrower) based on default (failure to pay).

pro: part of the debt will be forgiven this does less damage than a short sale to your credit score.

con:  This option does the most damage to your credit scores and remains on your credit for 7-8 years. Also you will not be able to qualify for an FHA mortgage for more than four years after. Bank can still try and collect on the original note balance after they sell property at auction or provide you with a 1099 for income for the difference. This will harm your credit.

option # 4 chapter 7 bankruptcy this is a liquidation/discharge bankruptcy whereby if  your income is below the median based on family size and region you can qualify to have some of your debts discharged.

pro: you can wipe out any unsecured debt and surrender secured property without further liability. It is an all-inclusive option that takes care of most your debt, with a few exceptions. Unsecured debt would be things like credit card debt, medical bills and installment loans. Secured debt is a mortgage, car loan, things secured by property. In other words, if you surrender your home in bankruptcy to the bank they are limited to the property and cannot come after you for any difference. After bankruptcy, you have a fresh start and can begin rebuilding your credit immediately.

con: the process remains on your credit for up to 10 years (does same damage as foreclosure). Have to wait 2 years to  qualify for an FHA loan after discharge is finalized.

To fully know your rights and obligations discuss you should discuss your case with a qualified Bankruptcy Attorney. If you are looking for a North Carolina Bankruptcy Attorney call Maxwell Law Firm, PLLC at 704-780-1100. In the California area contact Bankruptcy Attorney Chirnese L. Liverpool at 818-714-2200.

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BY MAXWELL LAW FIRM, PLLC

Do you have problems paying your debts? Are you threatened with massive credit card debt, unpaid medical bills, garnishment, foreclosure, or repossession? If so, you may want to consider bankruptcy as a way to deal with these problems. Here are some steps you should take if you a considering filing for bankruptcy.

Do’s

1.  Continue to make payments on secured property you intend to keep such as a mortgage on a home and a car loan on a vehicle.

2. Make a list of your monthly expenses. So that you can provide this information to your Bankruptcy Attorney.

3. Find out the current value of your property. Do this for all your property, included inherited property. Pull together tax records showing the values for your assets. Keep in mind all your mind all property in your name must be listed on the bankruptcy petition.

4. Complete a credit counseling course within 180 days or less of filing.

5. Do obtain a copy of your credit report and list some unpaid bills that maybe missing from your report so that you can review this information with your Attorney.

6. Do file your tax returns. You are required to disclose the last two (2) years of tax returns to the Bankruptcy Trustee.

7. Do create a budget and trim expenses.

8. Find a good Bankruptcy Attorney and Do be sure to provide the name of your Attorney, website, and  address and phone number to any friends or family members facing the same issues.  A referral from a happy client is the best compliment a competent Bankruptcy Attorney can get!!

Don’ts

1. Do not borrow from your 401k to pay bills, because you will incur non-dischargeable tax debt. Also most retirement accounts are exempt from seizure in bankruptcy.

2. Do not transfer or sell property within two (2) years of filing to family members or for less than the fair market value. This will be viewed as a fraudulent transfer and could cause your case to be dismissed.

3. Do not create a living trust. This smells of fraud, because you are placing all of your assets in a trust for protection from creditors. Keep in mind that a Bankruptcy Trustee can search your name and social for unlisted assets. This will certainly have your bankruptcy dismissed.

4. Do not borrow large amounts of money from family members within six ( 6 ) months of filing. You bank statements are reviewed by the trustee once you file and he looks back up to six (6 ) months prior to filing.

5. Don’t take cash advances from credit cards within ninety (90) days of filing from bankruptcy. These advances are non-dischargeable and you will be stuck paying for it after your discharge.

6. Don’t use credit cards to pay tax debt. This will create a non-dischargeable debt. Consult with your lawyer about tax issues and debts, because some tax debt can be discharged in a Chapter 7 bankruptcy.

7. Don’t take out a consolidation loan. Filing for Chapter 13 bankruptcy is a more sound way of paying off your debt

8. Don’t avoid complaints and summons (lawsuits) filed by creditors in the past couple of years. Provide this information to your Attorney. The Attorney maybe able to have the lien or judgment voided in the bankruptcy.

If you would like to discuss what steps you should be taking to become debt free and your Bankruptcy options call Maxwell Law Firm, PLLC at 704-461-1883 or click here

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

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