There are several different ways to prepare a bankruptcy petition in a bankruptcy court. The first is the most common – hire a bankruptcy attorney. Your attorney will be required to electronically file your bankruptcy schedules and other bankruptcy related paperwork through your local court’s electronic service (called Pacer) after your attorney has prepared the paperwork, you have reviewed it and consent to it being filed.
Courts also allow debtors without attorneys (also known as “pro per” or “pro se” filers) to prepare and file the paperwork directly with the clerk of the Bankruptcy Court. This involves handing in the paperwork to a clerk, who will scan and input it into the court’s system. It’s a self-help system to allow people who cannot afford or do not want an attorney’s help to file.
Other non-attorneys called Bankruptcy Petition Preparers will charge a small fee to type the paperwork into bankruptcy software (or hand-write it in some cases). They advertise as being cheaper than attorneys and will claim to save time and skip the hassle of using an attorney. However, these preparers (sometimes called BPPs) can be more trouble than their fees.
The US Bankruptcy Court in California has permanently barred several petition preparers from helping people out. They have been barred for a number of reasons, including the unlawful practice of law and/or passing themselves off as real attorneys. They are not licensed attorneys.  They are barred by United States Law from giving legal advice or pretending to be lawyers. Other preparers have been ordered to attend court to explain their behavior to judges, but have not been barred. That step could come at any time.
As long as petition preparers disclose their fees in the schedules, sign the required forms, and avoid giving legal advice, the Bankruptcy Code allows them to help prepare petitions. But many times they fail to do so and lie to the courts, telling people not to inform the court that they were used to prepare the paperwork. Does committing a crime by lying to the court and your bankruptcy trustee sound like a good idea? Nope! It’s not.
The only source of legal advice is to see an attorney, preferably one with a long history of experience in bankruptcy. It is well worth the extra money to protect assets, stop creditors, and ensure a successful bankruptcy.
If someone charges you a fee to prepare paperwork and instructs you to hide that fact, do the smart thing and go see a bankruptcy attorney immediately.  To contact the Law Offices of Chirnese L. Liverpool and speak with a professional attorney with bankruptcy experience, please contact us at  (818) 714-2200 in California, or visit our website at http://www.liverpoollegal.com

In North Carolina, the Maxwell Law Firm assists debtors with filing consumer bankruptcy.  They can be reached at (704) 461-1883.

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Landlords use several factors in determining who they will rent to and what if any deposits will be required for the rental including: rental history, credit score, job history, monthly debt payments, monthly income, etc.

WHAT IS RENTAL HISTORY

Rental history is the verification is much more accurate nowadays than in the past for landlords. There a specific sites where your landlord can go to check to see if you have had any evictions or late rental payments in the past. It is a separate report from your credit report.

WHAT IS CREDIT HISTORY

Your credit history is reflected on your credit report and it shows accounts, payment history, age of the accounts, balances on those accounts. This is equally, if not more important than your rental history when you are trying to obtain approval for a new apartment. Most of the time evictions and judgments obtained by landlords will also be reflected on your rental history.

It can be frustrating if you have made mistakes in the past and have negative rental or credit history in your past and to have your rental applications rejected. Those negative items on your credit report stay on for a minimum of seven (7) years. A fresh start maybe just what you need to get things in prospective. In a Chapter 7 you can have those evictions and judgments eliminated and start anew.

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 at http://maxwelllegal.com/consultations. California Bankruptcy Attorney  Chirnese L. Liverpool assists clients with filing for bankruptcy in the Los Angeles Area. Her office can be contacted at 818-714-2200.

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TAX EXEMPT VS. REQUIRED TO FILE A RETURN

When filing out your W4 you are required to list what if any tax exemptions you are claiming and if you are exempt from federal income taxes.

Someone or an entity who is tax exempt is someone who is not required file a return based on a tax exemption status and or exclusion by Law.

On the other hand some people are not required to file a tax return because they are below a certain income level based on the filing status and amount of income earned during that tax year. This does not mean that this person is tax exempt, it merely means that person does not have to file a return for that particular year.

WHO IS TAX EXEMPT

Well first and foremost most individuals are not exempt from from taxes. 501(c)(3) Non-profit organizations can apply for tax exempt status but do not automatically have this status by the virtue of forming a non-profit organization.

Generally, charitable organizations,  Churches and Religious organizations, Other Non-Profits,  Political Organizations, and Private Foundations fall under this category.

For this application to be approved the organization must establish the following:

1. The organization is organized exclusively for, and will be operated exclusively for, one or more of the purposes (religious, charitable, etc.) specified in the introduction to this chapter.
2. No part of the organization’s net earnings will inure to the benefit of private shareholders or individuals. You must establish that your organization will not be organized or operated for the benefit of private interests, such as the creator or the creator’s family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests.
3. The organization will not, as a substantial part of its activities, attempt to influence legislation (unless it elects to come under the provisions allowing certain lobbying expenditures) or participate to any extent in a political campaign for or against any candidate for public office. See IRS publication 557

WHAT HAPPENS IF I CLAIM TAX EXEMPT STATUS AND I SHOULD NOT HAVE

Claiming tax exemption when you are not exempt could result in a fine of $500 and not to mention additional penalties and interest for failing to file a return or have the correct amount withheld from your wages. Not to mention you will have a large tax bill for that year for taxes that should have been withheld but were not as a result of you claiming tax exempt. Definitely go see a tax professional to see if there someone that can be done to reduce your tax liability and help set you up on a some sort of agreement or payment plan with IRS.

Maxwell Law Firm, PLLC represents clients all over the United States on Tax related issues: Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and  Income Tax Services  you may call them at 704-461-1883 or save 25% off our already affordable fees by your appointment scheduling online. California Bankruptcy Attorney Chirnese L. Liverpool assists debtor with filing for bankruptcy in the Los Angeles area. You may contact them at 818-714-2200.

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I often have individuals come into my office who receive the CP-2000 notice stating that they are unsure of what to do next, says Tax Attorney Victorianne Maxwell of Maxwell Law Firm, PLLC.

WHAT IS INCOME FOR TAX PURPOSES

Funds received for services, employment, earned interest, annuity payments, sale/exchange of capital gains, any other funds received where there is not an exception to income.

WHAT IS CONSIDERED AN UNDERREPORTING OF INCOME

Underreporting of income results when a taxpayer fails to report income on their tax return.

HOW WILL IRS KNOW IF I UNDERREPORTED INCOME

Employers are required by law to report wages they have paid out and taxes withheld on a W2 form to IRS. Companies who use contract labor are required to report how much have been paid to these service professionals on what is called a 1099 Form. The same is true of cashed in retirement accounts, transferred accounts, and the sale/exchange of capital gains. Intuitions that pay out interest are similarly required to report the interest earned that year on a 1099-INT form. IRS regularly runs reports and checks to see if the amount of income reported on a tax return matches what was reported by other third parties. If you received a large refund or are self-employed you are more likely to be targeted for such an underreporting notice.

WHAT ARE THE CONSEQUENCES OF UNDERREPORTING INCOME

You will receive a CP-2000 Notice stating that there has been an underreporting of income and what your estimated liability should be vs. what you were refunded or paid. You have a limited amount of time to respond and or dispute the CP-2000. If you do nothing than the IRS will deem that this amount is due.

WHAT SHOULD I DO IF I RECEIVE A NOTICE

You should contact a tax professional immediately. If you do not agree with the notice either because you feel that income mentioned in the notice was reported or was not earned by you, then your Tax Attorney can contact IRS and initiate a dispute. This will provide you with the time necessary to come up with the time necessary to gather the correct documents to dispute the notice. If you do agree there was an underreporting of income, then your Tax Professional can probably go through the return and amend it to see if there are any additional tax credits available to apply to return to reduce your liability. In addition, that tax professional can assist you with installment plan to help you get back on track.

Maxwell Law Firm, PLLC represents clients all over the United States on Tax related issues: Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, Installment Agreements, and  Income Tax Services  you may call them at 704-461-1883 or save 25% off our already low fees by your appointment scheduling online. The LA Bankruptcy Attorney Chirnese L. Liverpool assists debtors with having old tax debt discharged. You may contact her at 818-714-2200.

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NEW FILING BANKRUPTCY FEES

The Judicial Conference of the United States adopted a new court fee schedule on September 13, which will become effective November 1, 2011. The revenue generated by the fee change will go into the Judiciary’s budget.

The new BANKRUPTCY filing fees will be:

· Chapter 7: $306.00

· Chapter 11: $1046.00

· Chapter 13: $281.00

BANKRUPTCY ATTORNEY’S FEES

Maxwell Law Firm, PLLC represents clients in the Charlotte Metro Area of North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, foreclosure defense, chapter 13 bankruptcy representation, our fee for representation can be viewed on our wepage under bankruptcy fees  or call 704-461-1883. Our rates are valid until December 1, 2011. You can save an Additional 25% off the Attorney’s fees by scheduling your appointment online.  The Law Offices of Chirnese L. Liverpool assists clients in the Los Angeles Area of California and in the state of Nevada with filing for bankruptcy. Her office can be contacted at 818-714-2200.

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Most recently I had someone in my office who had taken out several payday and title loans in order to stay current so I decided to discuss further here on this blog, says Bankruptcy Attorney  Victorianne C. Maxwell

PAYDAY LOANS IN GENERAL

They are often referred to as a paycheck advance. It is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday.

GENERAL TERMS OF A PAYDAY LOAN

The payday companies do not run a credit check the deposit the funds into a checking account within 24 hours after it is approved. The interest rate on these loans are often extremely high. Payday lenders usually charge a fee of at least $15 – 30 for every $100 borrowed. In 2006, Congress capped the interest rate for payday loans to military personnel at 36%.

FAILING TO PAYBACK YOUR PAYDAY LOANS

Typically, payday lenders will debit your checking account in order to collect their fees and the balance on your loan. If the payday lender deposits your check and it bounces or the funds are not available, your bank will charge you bounced check fees. Also, the payday lender can potentially sue you for the default.

LEGALITY OF PAYDAY LOANS?

In North Carolina, payday companies are labeled predatory lenders and have been banned. Several companies have been fined by the North Carolina Attorney General’s office for their practices.This means they can not operate in the state of North Carolina. Some payday lenders find loopholes and offer their services over the internet. If they offer serves to a resident of North Carolina the interest rate is capped at 36%.

HOW CAN I CANCEL THE PAYDAY TRANSACTION? 

Unfortunately, most people will end up taking out these loans continue to take these type of payday loans out a continuous basis and end up paying out more in fees than the actual value of the loans. Often times the borrowers become reliant on these loans to pay their bills. There are other options like cash advances. Though cash advances are often at a high rate of interest they are less costly than payday loans. If the issue with credit itself is becoming a problem it may be time to go see a Bankruptcy Attorney who can help you with a fresh start. Payday loans are unsecure debts which are discharged in chapter 7 bankruptcy  and eventually discharged in a chapter 13.

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 or save 25% off the fees and schedule online. California Bankruptcy Attorney  Chirnese L. Liverpool  assists debtors with California payday companies she can be contacted by calling 818-714-2200.

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Often times Potential Client’s come into the office wanting to know more information about loan modifications , says Bankruptcy Attorney  Victorianne C. Maxwell, and I explain the most general terms how they generally how they work.

WHAT IS A LOAN MODIFICATION ?

Lenders agreement to change the terms of the mortgage agreement by either decreasing the amount of monthly payments, lengthen the term of the loan, and or decreasing the amount of interest on the loan.

WHAT IS INVOLVED IN THE PROCESS

Generally, the mortgagee/lender has a specific department that deals with the intake of loan modification requests. These departments “determine” whether a particular borrower qualifies for the request. If they make an initial determination on the request that the borrower “qualifies” they will direct the borrower to submit paperwork and other items. A person in that department may make some suggestions to the borrower on how to be approved for the request. The most frequent one I hear about is for the borrower to stop paying their mortgage. Be careful with heeding to this advice as these employees are not Attorneys and do not know the ramifications of what they are advising you to do. In North Carolina, for example, if you default on your mortgage nothing short of bankruptcy will stop foreclosure once they process has begun. This is the case even if you have a loan modification application pending.

IS TRUE THAT A LOAN MODIFICATION COMPANY CAN INSURE THAT MY APPLICATION IS APPROVED

No, although there is some governmental incentive to approve most loan modifications the lender is under no obligation to approve your request. Beware of any company that can guarantee absolute success on Loan Modification approval, because more than likely it is a scam. These companies are filed with people who have the same or sometimes less knowledge about Loan Modifications and the Law.

WHAT IS Home Affordable Mortgage Program (HAMP)

H.A.M.P. it is federally sponsored loan modification program that was created in 2009. The program will expire on December 31, 2012. There are incentives for both lenders and servicers. Though virtually most lenders are offering loan modification programs, but not all are participating in the HAMP program. There is no requirement that lenders participate in the program only incentives to do so.

WHAT KIND OF RECOURSE DO I HAVE IF MY LOAN MODIFICATION DOES NOT GO THROUGH

There are some cases right now where a borrower has sued their Lender for “unfair and deceptive trade practices” for denying their loan modification. But these type of cases are costly and time consuming, If you are in a situation where you are behind on your mortgage the last thing you want to do is incur another cost in the hopes of winning a battle against the Lender.

DO I HAVE OTHER OPTIONS

Yes you do. If you can qualify for a refinance at a lower fixed interest rate than that would be a good first step. If not then you need to consult with a Attorney who has experience dealing with Loan Modifications, Foreclosures, Bankruptcy, or any other debt relief.  Chapter 13 Bankruptcy offers the option to modify secure debts  such as mortgages and car loans. In a Chapter 7 the process can be achieved but will need to be initiated outside of the bankruptcy proceeding.

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 Los Angeles Bankruptcy Attorney Chirnese L. Liverpool assists clients with Chapter 7 bankruptcy.

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Recently, I had a client come in and ask me about reverse mortgages and how they were affected in Bankruptcy, says Bankruptcy Attorney Victorianne C. Maxwell of Maxwell Law Firm, PLLC and I decided to do some research on it.

WHAT IS A REVERSE MORTGAGE

A mortgage in which a homeowner, usually an elderly or retired person, borrows money in the form of annual payments which are charged against the equity of the home. This seen as an alternative to a home equity line.

To qualify for a reverse mortgage the borrower must meet these requirements:

• Be 62 years of age or older ;
• Own the property outright or have a small mortgage balance;
• Occupy the property as your principal residence;
• Not be delinquent on any federal debt AND;
• Participate in a consumer information session given by an approved HECM counselor.The requirements of the reverse mortgage a less stringent than a traditional mortgage. No income or employment qualifications are required of the borrower. No payment is not required as long as the property is your principal residence and the obligations of the mortgage are met and the closing costs may be financed in the mortgage.

  CAN THE BANK FORECLOSE IN A REVERSE MORTGAGE

  Borrowers can choose an adjustable interest rate or a fixed rate. So when the payments become due either because the borrower no longer use the home as a primary residence, defaults, or dies. FHA allows reverse mortgage lenders to go ahead and foreclose on properties that warrant it. Foreclosure can occur when the debtor fails to make the payments due or defaults in some other fashion such as a failure of pay taxes or maintain home owner’s insurance. If the Owner dies than the heirs owner must pay off the mortgage either by refinancing or assuming the mortgage debt in order to keep the home.

  ARE THEIR ANY WAYS TO VOID THE REVERSE MORTGAGE

  Immediately after closing you have an opportunity to void the reverse mortgage. However, once you have started receiving payments the mortgage can not be voided and you will have to pay off the balance of loan (payments made) to cancel the loan thereafter.

  REVERSE MORTGAGE AND BANKRUPTCY

  Your home is considered an asset and anything in access of exemption allowed for equity in your jurisdiction, can be used to satisfy some of your debts before you are granted a discharge in a Chapter 7 Bankruptcy.  You should definitely speak to a Bankruptcy Attorney in your area if you are considering bankruptcy and you have a reverse mortgage to know what the implications of filing for bankruptcy will be.

   

  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. The Law Offices of Chirnese L. Liverpool assist debtors in Los Angeles with filing for Bankruptcy in California they can be contacted at 818-714-2200.

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Often times potential clients ask me if their credit debts are going to be discharged in bankruptcy and I tell them generally yes but there are some exceptions, says Bankruptcy Attorney Victorianne C. Maxwell of Maxwell Law Firm, PLLC.

Credit cards are generally are categorized as unsecured debt and that is discharged at the close of a chapter 7 case. But in limited circumstances, credit card is discharged if:

• When credit is extended based on false pretenses or fraud OR
• Luxury goods purchased within ninety (90) days before  filing OR
• cash advances aggregating more than $750 that are extended to a debtor within 70 days before filing   OR
• The debt was incurred paying off fines, penalties, and taxes under federal or state law.

Note that debt incurred for purchasing goods or services reasonably necessary for the support or maintenance of the debtor or a dependent of the debtor, such as food, clothing, shelter/utilities before filing will be dischargeable. If you have questions regarding the type of debts you have an which of them will be dischargeable the best thing for you to do is to consult with a Bankruptcy Attorney in your area.

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 704-780-1100 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations. The Law Offices of Chirnese L. Liverpool assists debtors with filing for bankruptcy in Nevada and in California. They can be reached by calling 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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Often times I have persons who enter my office and say they have been told they can not file Chapter 7, because their income is above the median income for their household size. However, the median income is not always the only factor used to determine someone’s eligibility, says Bankruptcy Lawyer Victorianne C. Maxwell.

The means test also evaluates a debtors reasonable and necessary expenses based on the figures allowed under the Tax Code. Some of these expenses include:

Rent or home mortgage payment (including lot rented for mobile home)
● Electricity, natural gas, butane
● Cable television
● Internet service
● Water and sewer
● Telephone (including cellular phones)
● Trash service
● Home maintenance/repairs
● Food
● Clothing
● Laundry and dry cleaning
● Medical and dental expenses (out of pocket)
● Transportation (including gasoline, vehicle maintenance and/or public transportation)
● Recreation/entertainment (must be reasonable in amount)
● Charitable contributions (not exceeding 15% of gross monthly income)
● Homeowners or renters insurance
● Term life insurance for yourself (but not insurance on any of your dependents)
● Health insurance (including HMO, etc.)
● Automobile insurance
● Property taxes
● Automobile payments (including lease payments)
● Alimony or child support payments
● Child care (such as baby-sitting, day care, nursery and preschool)
● Pet care
● Regular expenses from operation of a business or profession
● Student loan payments
● Educational expenses that are required as a condition of employment
● Tax payments to I.R.S. or state taxing authorities if not dishargeable in bankruptcy
● Involuntary retirement contributions that are required by your employer
● Voluntary retirement contributions*
● Payroll taxes (including income taxes, social security, medicare, etc.)
● Self-employment taxes
● Union dues
● Mandatory expenses required for employment (such as uniforms, parking, etc.)
● Payments for necessary household items (such as furniture, appliances and/or computer)
● School expenses for minor children under 18 years (up to $137.50 per month per child)
● Sport or school activities for minor children

If a debtor can provide documentation to prove additional expenses above those allowed they can more than likely support the argument that their expenses exceed their expenses and pass the means test. Talking to a qualified Bankruptcy Attorney  in your area would be your first start to determining whether you can actually make this argument. There are so many other factors that go into determining your eligibility for Chapter 7.

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. California Bankruptcy Attorney Chirnese L. Liverpool assists debtors in the Los Angeles Area with filing for Chapter 7 and they can be reached at 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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Over the last a year or so, I have encountered several clients who originally filed Chapter 13 and later filed a motion to have it converted to a Chapter 7 and received a Chapter 7 discharge.

DIFFERENCES BETWEEN THE TWO CHAPTERS

Chapter 7 is a liquidation bankruptcy where the debtor receives a discharge of all or most of their debts at the close of an  three to four month process. Chapter 13 is a much more extensive bankruptcy where a debtor must complete a three to five year plan and make payments towards all their debts. At the close of the chapter 13 some the debt is discharged and other payments directly secured or priority creditors may continue.

WHY WOULD SOMEONE CONSIDER CONVERTING A CHAPTER 13 TO A CHAPTER 7 ?

Often times people get into a Chapter 13 and things change, income, family size, valuation of the property that secures the debt. These factors can affect the ability to pay a plan payment in a Chapter 13. A case can be dismissed by a trustee if the debtor fails to make plan payments. Debtors are often faced with either taking a voluntary dismissal, or allowing the trustee to dismiss the case (involuntary dismissal), or converting their case to a Chapter 7.

WHY I DO NOT ADVISE A CONVERSION

Converting the case from a Chapter 13 to a Chapter 7 does not change the date of filing. This affects the dischargeability of certain debts. Normally tax debt that is due more than three years from the date of filing and accessed more than 240 days prior to filing, can be discharged in a Chapter 7.  For instance, if the debtor has 2006, 2007 tax debt and files Chapter 13 in 2008 and later converts the case to a Chapter 7 in 2010 then the debt tax debt will not be discharged. In such a situation, it is more advisable for the debtor to take a dismissal on the Chapter 13 case and re-file a new  Chapter 7 case. Where a previous Chapter 13 case is dismissed the six year bar will not prevent a Chapter 7 filing within 180 days after the dismissal or after.

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 704-461-1883 or save 25% off the fees and schedule online at http://maxwelllegal.com/consultations. Attorney Chirnese L. Liverpool assists debtors with filing for bankruptcy in California her office can be contacted at 818-714-2200.

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A lot of times Clients are confused about the foreclosure and the terminology  so I have complied a few relevant terms that I typically explain to them,, says Charlotte Bankruptcy Attorney , Victorianne MAXWELL OF MAXWELL LAW FIRM, PLLC

1. Acceleration – A term in a mortgage agreement that allows the lender to request entire balance of the mortgage loan be paid in full, typically occurs after default.

2. Arrearages—past due payments.

3. Arm—adjustable rate mortgage is a loan where interest rate adjusted periodically anywhere from every six months or a year. The rates are often below market, but continue to increase and may ballon to higher payments during the life of the loan.

4. Bankruptcy –federal legal right that provides debt relief assistance for individuals who meet certain income requirements.

5. Complaint—a claim for which claim on which relief is sought.

6. Credit history –a record of an individual’s or company’s past borrowing and repaying, including information about late payments.

7. Credit score—a numeric score that measures the credit worthiness of an individual based on credit history, payment history, credit balances, and the number of recent inquires.

8. Creditor –person or company who extends a credit to debtor (mortgagee, lienholder, lender).

9. Fixed Rate Mortgage— a loan with an interest rate that is fixed for the life of the loan.

10. Foreclosure –legal process by where a homeowner is disposed of their interest in real estate.

a. Judicial foreclosure –foreclosure process must be executed through state court. This means the creditor must sue the debtor/homeowner in state court to receive the possession of the property.

b. Non-Judicial foreclosure –foreclosure process can be executed by sale once default occurs, without initiating an action in state court. The power of sale clause is typically in the mortgage agreement.

11. Debtor – person who makes a promise to repay a debt owed to a creditor (homeowner, mortgagor).

12. Deed – Document that indicates title owner and is used to transfer ownership to a real estate.

13. Deed of Trust — A recorded mortgage instrument securing a note to a real estate, where a third party acts as a trustee.

14. Default - Nonperformance of a duty, failure to meet obligations of the (mortgage) loan.

15. Deficiency –difference between the amount owed on a mortgage note and what the foreclosing party receives on the sale of the foreclosed property at auction.

16. Equity –when the fair market value of real estate exceeds the amount of indebtedness on the property.

17. Federal Housing Authority (FHA) Loan—a federally insured mortgage loan.

18. Forbearance – When a lender agrees to postpone foreclosure in order to give the borrower time a catch up with arrearages.

19. Levy—the collection of a liability which occurs once a debt is defaulted upon and becomes mature.

20. Lien ­- A claim or interest on the real estate property stemming from an unpaid debt.

21. Lis Pendens—a suit pending in a court that concerns the title to land.

22. Loan modification – lenders agreement to change the terms of the mortgage agreement by either decreasing the amount of monthly payments, lengthen the term of the loan, and or decreasing the amount of interest on the loan.

23. Mortgagee—(SYN) lender, bank, creditor.

24. Mortgagor –(SYN) borrower, homeowner, buyer, debtor.

25. Negative equity—when the value of the property is less than the amount of indebtedness.

26. Note –promissory note securing an interest in real estate. Usually recorded in the county where the real estate is situated to evidence notice of the lenders interest in the property.

27. Notice—a period of warning required by law and or instrument (mortgage agreement).

28. Power of Sale-Clause in a mortgage or deed of trust giving the mortgagee (or trustee) the right and power to advertise and sell the property at public auction on default in the payment of the debt secured.

29. Primary mortgage– A first lien/mortgage on real estate property.

30. Priority—dictates which lien first in right (and time) to claim against real estate. In the case of foreclosure creditors or lienholders on a property get paid according to priority and often times not at all if they are after a primary lien holder.

31. Ownership classifications

a. Tenancy by the Entirety – The joint ownership by husband and wife where surviving spouse becomes the sole owner. Creditors of only one of the spouses cannot make claims to real estate titled to both spouses.

b. Tenants in common—co-owners in real estate without rights of survivorship.

c. Joint tenants—joint ownership by non-spouses who have the right of survivorship. Last tenant becomes the sole owner of the property.

32. Refinance –process by which a homeowner cashes in the equity in a property and pays off existing mortgage by acquiring a new one.

33. Right of Redemption –right of a homeowner to cure default prior to the close of foreclosure proceedings.

34. Sheriff Deed–

35. Sheriff sale—A court order authorizing the Sheriff’s office to conduct the sale in satisfaction of a judgment.

36. Short sale –process whereby a lender agrees to allow homeowner sells the piece of real estate for less than the amount of the mortgage debt, contingent on the lenders approval of the buyers.

37. Home owner Association (Planned Communities)—an association created by an individuals in a residential subdivision for the purpose of enforcing the planned community laws and or the bylaws created by a developer and or modified by that association.

38. Tax liens – a claim for unpaid taxes.

39. Title search –Search of public recorded information to determine the legal ownership to the property.

40. Trustee deed — Document conveying ownership of property to highest bidder at a Trustee Sale.

41. Writ –A form of written command in the name of a court or other legal authority to act.

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

The Law Offices of Chirnese L. Liverpool assist debtors with foreclosure defense and filing for Bankruptcy in California.

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CHAPTER 7 BANKRUPTCY

DEFINING CHAPTER 7

There are two types of Consumer Bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy is a process where a debtor files requesting immediate relief from the court from his or her creditors and debts. It is often referred to as the liquidation bankruptcy. At the close of the bankruptcy the debtor is relieved or discharged of most their debts.

QUALIFYING FOR CHAPTER 7

In order for a debtor to qualify to file for Chapter 7 Bankruptcy they must pass what is called the Means Test. In this test, the debtors monthly income for the past six (6) months is measured against the Census Bureau’s Median Family Income Data for in the debtors geographical area (State). If the debtors income is less than the median income they have passed the test. However if their income is greater than the median they must then show that their reasonably necessary expenses are greater than or close their monthly income. A presumption of abuse arises when the debtor fails the means test and does not outright qualify for Chapter 7. The debtor can rebut this presumption with documentation, if they can establish the additional expenses and amounts.

CHAPTER 7 PROCESS

Once it is determined that the debtor qualifies for Bankruptcy. The debtor must complete a credit counseling course. Then, a bankruptcy petition is prepared by an Attorney. The petition contains schedules and statements with the debtors monthly income, expenses, household size,means test evaluation, property, and debts. The petition is filed electronically. Once the petition is filed the debtor is assigned a case number and Trustee who will oversee the bankruptcy case. The debtor must then complete a post filing financial management course. The debtor then receives a 341 Meeting Date. A the 341 Meeting the debtor affirms that they have read and signed the petition as prepared by their Attorney. Approximately sixty to ninety days later the debtor receives their discharge order.

YOUR ASSETS IN CHAPTER 7

Because Chapter 7 is a liquidation bankruptcy any non-exempt property is liquidated to pay off creditors according to priority. Nonetheless, the debtor has a certain amount property that is exempt from seizure by the Trustee and creditors in bankruptcy. The most common exemption is the Homestead exemption that allows the debtor to have a certain amount of equity in their home. There other exemptions for retirement accounts, vehicles, and other personal property.

FINDING THE RIGHT CHAPTER 7 ATTORNEY

Researching Chapter 7 and knowing the basics of of the law simply is not enough. Bankruptcy Law is complex and the majority of pro se cases (where debtor files their own petition) are dismissed for a number of errors. There are plenty of paralegal services and online legal sites that claim they can assist you filing for bankruptcy. At the end of the day, your name and signature is on petition with an oath swearing that you agree with all the contents. Only an Attorney can provide you with legal advice on your particular case and the implications of filing. The amount of money you save, if any, by going with these services will not be worth the headache of having to deal with issues, errors, and omissions in your bankruptcy petition. Keep in mind you could be charged with Bankruptcy Fraud for concealing information. Hiring a qualified Bankruptcy Attorney is necessary so that you can insure things are done properly and that you are fully informed of the implications of bankruptcy. Potential clients always worry about the fees and finding the right Attorney. Maxwell Law Firm, PLLC offers payment plans and flat reasonable fees for filing for bankruptcy. We also offer discounts for scheduling your appointment online. The Law Offices of Chirnese L. Liverpoolassists debtors filing for Chapter 7 Bankruptcy in California. You may contact them by calling 818-714-2200/

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BY Tax Attorney

WHY ARE THEY ASSESSED

WHEN ARE THEY REMOVED

IRS will typically remove the penalties if:

1. Interest was assessed as a result of IRS errors or delays.
2. A penalty or addition to tax was the result of erroneous written advice from the IRS.
3. Reasonable cause or other reason allowed under the law (other than erroneous written advice) can be shown for not assessing a penalty or addition to tax.

4. Amended/Corrected return. Original prepared by IRS (SFR / IRC § 6020B).

5. Undue economic hardship/inability to pay (FTP) See IRM 20.1.1.3.3.3.

WHAT SHOULD YOU DO IF IRS HAS ASSESSED LARGE PENALTIES AND FINES TO YOUR ACCOUNT

Consult with a tax professional who is knowledgeable in this area and can tell you why the penalties were assessed and how to have them removed or abated.

Maxwell Law Firm, represents clients all over the United States on IRS and North Carolina Tax related issues: Wage Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, filing for bankruptcy, Installment Agreements, and Income Tax Services. We are North Carolina Licensed Law Firm. You can schedule your appointment by calling 704-461-1883 or save 25% off the fees by booking your appointment online. TELEPHONE CONSULTATIONS ARE AVAILABLE IF YOU ARE NOT ABLE TO COME TO EITHER OF OUR OFFICES. The Law Offices of Chirnese L. Liverpool Assists debtors with tax issues in Los Angeles California Area 818-714-2200

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BY TAX ATTORNEY

WHAT IS A LEVY

A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

WHEN DOES IRS TYPICALLY PLACE A LEVY AGAINST A TAXPAYER

• IRS WILL TYPICALLY ISSUE A LEVY IF ALL THE FOLLOWING HAVE OCCURRED:
• You Were sent a  Notice and Demand for Payment;
• You neglected or refused to pay the tax; and
• You received a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy.
• HOW DOES IRS SATISFY A LEVY

If you do not pay your taxes (or make payment arrangements to settle your debt), then the IRS may seize and sell any type of real or personal property that you own or have an interest in. For example, they could seize and sell property that you hold (such as your car, boat, or house), or they could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, refunds, the cash loan value of your life insurance, or commissions).

IS IT POSSIBLE TO HAVE A LEVY LIFTED

Yes, If one of the following occur:

• You file for bankruptcy ;
  You enter into and IRS accepts a payment plan schedule (they may only partially lift the levy at this point);
• You submit an offer and compromise;
• The time expires for legally collecting the tax (ten years after the date of assessment); or
• The debt is satisfied (paid in full).

WHAT SHOULD I DO IF I AM ABOUT TO BE OR I AM BEING GARNISHED

You can try and handle the matter by yourself, but that can be time consuming and confusing. It is always a good idea to consult with a tax professional with your ongoing tax issues to see which option works best for you.

Maxwell Law Firm, represents clients all over the United States on IRS and North Carolina Tax related issues: Wage Garnishments, Tax Liens, Tax Collection Defense, Offers in Compromise, filing for bankruptcy, Installment Agreements, and Income Tax Services. We are North Carolina Licensed Law Firm. You can schedule your appointment by calling 704-461-1883 or save 25% off the fees by booking your appointment online. TELEPHONE CONSULTATIONS ARE AVAILABLE IF YOU ARE NOT ABLE TO COME TO EITHER OF OUR OFFICES. The Law Offices of Chirnese L. Liverpool Assists debtors with tax issues in Los Angeles California Area 818-714-2200

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Charlotte Bankruptcy Attorney

Doing nothing and ignoring the calls, the letters, and emails from your creditors will only make matters worse.

Our Attorney not only discuss your options but will provide you with the best route to deal with: tax liens and debt, ensuing foreclosure, credit card debt, repossessions, unpaid medical bills, and or any other financial issue you may be having.

What we do for you:

1. Review your finances

2. Pull your credit report

3. Discuss your options (Bankruptcy and non-bankruptcy options)

4. Lead you down a path to becoming debt free !

You have nothing to loose and so much knowledge to gain! Outsmart the creditors at their own game, legally!

There are no gimmicks, scams, or tricks. I am NC Licensed Attorney the rates are fixed and to review them click fees.

Maxwell Law Firm represents clients in North Carolina with: bankruptcy court, filing for bankruptcy, chapter 7 bankruptcy, chapter 13 bankruptcy representation, and loan modifications You can schedule your appointment by calling 704-780-1100 or online at http://maxwelllegal.com/consultations.html

In California the Law Offices of Chirnese L Liverpool assist debtors with their options. You may call them at 818-714-2200.

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Antelope Valley Chapter 7 Bankruptcy Attorney

The Law Offices of Chirnese L. Liverpool is centrally located in the City of Van Nuys. Our practice focuses a significant amount of resources on handling Antelope Valley Chapter 7 Bankruptcy related needs.  We even offer to meet our Antelope Valley clients in a convenient location in Palmdale so that they dont have to drive to our main office in Van Nuys.

Benefits of Filing Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is designed for average to low income individuals and businesses.  Our Antelope Valley Chapter 7 Bankruptcy Attorney can provide immediate relief from financial stresses including;

• Creditor Phone Calls
• Collection Attempts
• Foreclosures
• Car Repossessions
• Wage Garnishments
• Civil Lawsuits

An Antelope Valley Chapter 7 Bankruptcy Attorney Can Stop Creditor Phone Calls

If your phone rings from morning till night with annoying creditors calling, Chapter 7 Bankruptcy can put an immediate stop to the calls. The Automatic Bankruptcy Stay will prohibit any creditors from calling you or even sending you a bill.

Chapter 7 Bankruptcy Stops Collection Attempts

If creditors are attempting to collect on judgments, an Antelope Valley Chapter 7 Bankruptcy Attorney will stop those attempts as soon as it is filed. Creditors will not be able to dip their hands into your bank account, your remaining assets will be safe.

Chapter 7 Bankruptcy Stops Foreclosures

Filing Bankruptcy can put a stop to a pending foreclosure sale. While filing a Chapter 7 Bankruptcy will temporarily stop the sale it will not provide permanent relief. To obtain permanent relief and save your home you will need to explore a Chapter 13 Bankruptcy. But if your goal is merely to delay the foreclosure sale then a Chapter 7 Bankruptcy is a good vehicle to accomplish a postponement.

Chapter 7 Bankruptcy Stops Wage Garnishments

If a creditor is attempting to garnish your wages, Chapter 7 Bankruptcy can stop it from happening, or put a stop to a garnishment that has already occurred. Immediately after filing your Bankruptcy we will provide you and your employer with the required documents to stop the garnishment.

Chapter 7 Bankruptcy Stops Civil Lawsuits

If you are being sued in the civil courts it is often a costly and losing battle. Chapter 7 Bankruptcy can put a hold on the proceedings and give you the time to eliminate the debt all together.

Call or Email Today for a Free Consultation with an Antelope Valley Chapter 7 Bankruptcy Attorney

Using an Antelope Valley Chapter 7 Bankruptcy Attorney can put an immediate and permanent stop to your financial stresses. You can regain control of your financial future. It is common for our clients to have misconceptions regarding Bankruptcy when they come into our offices. Bankruptcy is not something to fear, it can be your legal financial bailout. Take the time to read more information regarding bankruptcy on the pages of our website, then call and schedule a free consultation with our Antelope Valley Chapter 7 Bankruptcy Attorney.

At my office you will actually meet with an Attorney, not a paralegal or a law student. Your decision to file bankruptcy is a serious one and we will give it our serious attention. So when you schedule your free consultation you can be assured you will meet with a Antelope Valley Chapter 7 Bankruptcy Attorney, experienced in all aspects of bankruptcy.

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Charlotte Bankruptcy Attorneys

Generally, a payday loan is a unsecured debt  that can be discharged in a chapter 7 bankruptcy.

Are Payday loans legal in North Carolina?

No Payday Loans have been illegal in North Carolina (N.C. Gen. Stat. § 53-281 ) since 2001.

What Should I do if I taken out payday loans and they are garnishing my checking accounts?

Consult with an Bankruptcy Attorney immediately. Most people take these type of loans out to pay their bills and because they are unable to pay their debts. A Bankruptcy Attorney can explain the bankruptcy laws, applicable state debt collection laws, and provide you with your options.

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

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