Blogs
The most common reason for filing bankruptcy is that a person has too much high interest credit card balances or medical bills that they cannot afford to repay both from their own perspective and in the eyes of the court. Occasionally, a person may have such a high income, or own assets of such high value, that the court does not allow them to eliminate their debt and get a fresh start. But what if that person is under financial stress and needs help. That is where the 100% Plan for Chapter 13 Bankruptcy. A 100% plan refers to a Chapter 13 bankruptcy in which you repay all of your debt under a court-supervised repayment plan. You pay back all secured debt (which is required in all Chapter 13 cases) and 100% of all unsecured debt.
When Courts Do Not Allow You to Eliminate Debt
In order to file a bankruptcy in which you can eliminate debt (whether some or all of it), your income and your assets cannot exceed a certain threshold. In order words, you cannot make too much and you cannot own too much. If your income is too high, or your assets have too high of a value, the court will determine, through a complex formula that your lawyer will review with you beforehand, just how much of your debt you are capable of repaying. You will need to file a Chapter 13 bankruptcy and repay some, or possibly all, of the total debt that you owe through a court-monitored Chapter 13 plan. If your income is significantly above the median family income threshold, or your assets are significantly in excess of your allowable exemptions, then you will likely be forced into a 100% plan.
Useful to Stop Accrual of High Interest Credit Card Debt
So why would one file a bankruptcy if they are going to be paying back all of their debt. Well, one important reason is to stop the accrual of interest on high interest credit card debt. If you are making minimum payments on high interest credit cards, then you are not paying down your balances in any meaningful way and 10 years from now you are still going to have similar balances. If you were to file a Chapter 13 100% plan, you would stop the accrual of interest. You would put a cap on the total amount of debt, divide it by 60 months, and pay it back at 0% interest.
There is an exception to the 0% interest rule. Depending on how high your income is, or how high the value of your assets is, the court could require you to pay the prime rate plus 1% interest to your credit cards. This generally adds only a few dollars per month to your Chapter 13 plan payment and is much better than the alternative of paying the excessively high interest rates you are currently paying on your outstanding balances.
Prior Bankruptcy Discharge
Another situation in which you may need to file a 100 percent Chapter 13 plan is if you have had a prior bankruptcy discharge. Depending on how long ago you received the bankruptcy discharge, you may not currently qualify for another discharge of any debt. In that case, your attorney will advise you that a 100% Chapter 13 plan will be your only option.
Let’s say, for example, that you filed a Chapter 7 bankruptcy 2 years ago and received a discharge. Since that time, you fell behind on your mortgage payments and are facing foreclosure. You cannot obtain a discharge due to your recent bankruptcy so you cannot eliminate any debt. But you still have the option of stopping the foreclosure by filing a 100% Chapter 13 plan and paying back all mortgage arrears and all unsecured debt, if any, that you incurred since your prior Chapter 7 discharge.
A 100% plan is a legal remedy suitable to high income earners or debtors that own assets of very high value. It is a less commonly used but potentially very useful tool that a bankruptcy attorney can use to help a high income earner, or a debtor with lots of assets, get back on track so they can more effectively manage their finances.
Schedule a Free Consultation with Your Portland Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Portland, Oregon. We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (503) 912-8809 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.
The post 100% Plan for Chapter 13 Bankruptcy Legal Remedy for High Income Earners appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
Chances are that you have heard many of the myths of filing for Bankruptcy and half-truths floating around concerning the bankruptcy process in Oregon. One of the misconceptions we encounter most frequently concerns eligibility for the Chapter 13 process. Here at Northwest Debt Relief Law Firm, we believe that there is a best-case debt relief option available for every situation. For you, even if you are representing a business, that option could potentially include Chapter 13.
You’ll lose everything
You may think filing for bankruptcy means giving up your house, car and any other assets you may have. In fact, you’re likely to keep a lot of your possessions.
The vast majority of Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. There are two reasons for this. First, you can carve out some basic assets, called exemptions, that are necessary for day-to-day life. What you can exempt varies from state to state, so be sure to discuss exemptions with your bankruptcy lawyer. And for your possessions that aren’t covered under exemptions? Well, the creditors likely don’t want them.
Under Chapter 13, you keep all of your assets, but the value of them figures into your repayment plan.
All of your debts will be relieved
Both Chapter 7 and 13 will provide you relief from most forms of debt, but there are some exceptions. As a general rule of thumb, in bankruptcy cases you cannot discharge, or have forgiven, debts that you are deemed personally responsible for.
Student loans are another type of debt that is unlikely to be forgiven.
Generally, you can discharge debts from personal loans, credit cards and medical bills, among others. Your bankruptcy attorney will help you understand which debts will be affected.
Paying off your debts is a better option
Filing for bankruptcy is one of the most serious financial decisions you can make, but that doesn’t mean it’s a bad idea. In fact, filing for bankruptcy may be the best option for you.
If your debts are more than 50% of your annual income and you see no way to pay them off within five years, bankruptcy is likely your best path toward living debt-free.
Filing for bankruptcy is a personal failing
Given that roughly 57% of bankruptcies in 2009 were a result of medical bills and that over the past decade the cost of medical deductibles has grown seven times faster than wages have risen, many bankruptcies are likely the result of stagnant wages rather than poor financial management.
Whatever your reason for pursuing this form of debt relief, think of bankruptcy as a tool that can help you take control of your finances.
Bankruptcy will ruin your financial future
There’s no way around it: You can expect to have limited access to credit and to pay higher interest rates for the seven to 10 years that a bankruptcy remains on your credit report. But your credit score is actually likely to rebound shortly after you file for bankruptcy.
A report from the Federal Reserve Bank of Philadelphia, using data from credit bureau Equifax, showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, about six to eight months later.
Further, there are a lot of ways to restore your credit after bankruptcy, such as getting a secured credit card. You will face some limitations, but taking advantage of the right financial products can go a long way toward helping you get on the right path for your financial future.
Schedule a Free Consultation with Your Portland Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Portland, Oregon. We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (503) 912-8809 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.
The post Myths of Filing for Bankruptcy in Portland Oregon appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
Chances are that you have heard many of the myths of filing for Bankruptcy and half-truths floating around concerning the bankruptcy process in Oregon. One of the misconceptions we encounter most frequently concerns eligibility for the Chapter 13 process. Here at Northwest Debt Relief Law Firm, we believe that there is a best-case debt relief option available for every situation. For you, even if you are representing a business, that option could potentially include Chapter 13.
You’ll lose everything
You may think filing for bankruptcy means giving up your house, car and any other assets you may have. In fact, you’re likely to keep a lot of your possessions.
The vast majority of Chapter 7 cases are no-asset cases, meaning the debtor gives up no possessions. There are two reasons for this. First, you can carve out some basic assets, called exemptions, that are necessary for day-to-day life. What you can exempt varies from state to state, so be sure to discuss exemptions with your bankruptcy lawyer. And for your possessions that aren’t covered under exemptions? Well, the creditors likely don’t want them.
Under Chapter 13, you keep all of your assets, but the value of them figures into your repayment plan.
All of your debts will be relieved
Both Chapter 7 and 13 will provide you relief from most forms of debt, but there are some exceptions. As a general rule of thumb, in bankruptcy cases you cannot discharge, or have forgiven, debts that you are deemed personally responsible for.
Student loans are another type of debt that is unlikely to be forgiven.
Generally, you can discharge debts from personal loans, credit cards and medical bills, among others. Your bankruptcy attorney will help you understand which debts will be affected.
Paying off your debts is a better option
Filing for bankruptcy is one of the most serious financial decisions you can make, but that doesn’t mean it’s a bad idea. In fact, filing for bankruptcy may be the best option for you.
If your debts are more than 50% of your annual income and you see no way to pay them off within five years, bankruptcy is likely your best path toward living debt-free.
Filing for bankruptcy is a personal failing
Given that roughly 57% of bankruptcies in 2009 were a result of medical bills and that over the past decade the cost of medical deductibles has grown seven times faster than wages have risen, many bankruptcies are likely the result of stagnant wages rather than poor financial management.
Whatever your reason for pursuing this form of debt relief, think of bankruptcy as a tool that can help you take control of your finances.
Bankruptcy will ruin your financial future
There’s no way around it: You can expect to have limited access to credit and to pay higher interest rates for the seven to 10 years that a bankruptcy remains on your credit report. But your credit score is actually likely to rebound shortly after you file for bankruptcy.
A report from the Federal Reserve Bank of Philadelphia, using data from credit bureau Equifax, showed that those who filed for Chapter 7 bankruptcy in 2010 had an average credit score of 538.2 on Equifax’s scale of 280 to 850. But the average score jumped to 620 by the time those bankruptcies were finalized, about six to eight months later.
Further, there are a lot of ways to restore your credit after bankruptcy, such as getting a secured credit card. You will face some limitations, but taking advantage of the right financial products can go a long way toward helping you get on the right path for your financial future.
Schedule a Free Consultation with Your Portland Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Portland, Oregon. We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (503) 912-8809 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.
The post Myths of Filing for Bankruptcy in Portland Oregon appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
Here at Shenwick & Associates, many of the people we work with have student loan debt. This should come as no surprise, considering that Americans owe more in student loan debt than credit card debt. We’ve written about student loan debt and how difficult it is to discharge in bankruptcy previously (mostly recently here). This month, we wanted to tell you about a pending case that may offer hope for some student loan debtors.
Let’s start by looking at the relevant provision of the Bankruptcy Code. Section 523 governs exceptions to the discharge of debt, and § 523(a)(8) provides that:
A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt-unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for-an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or an obligation to repay funds received as an educational benefit, scholarship, or stipend[.]
This case (Haas v. Navient Solutions) revolves around the question of what an “educational benefit” is. One of the co–plaintiffs (Haas) borrowed money to prepare for the Texas bar exam in 2009. The other co–plaintiff (Shahbazi) borrowed money to attend a unaccredited technical school in Virginia in 2002. Haas filed for bankruptcy in 2015 and Shahbazi filed for bankruptcy in 2011. In both cases, the debtors listed the debt to Navient’s predecessors (which we will just refer to Navient, since two Navient entities are the co–defendants) as non–priority general unsecured claims instead of priority unsecured claims. Navient was notified of the discharge, but instead of filing adversary proceedings (bankruptcy litigation) to contest the dischargeability of these debts, Navient and various collection agencies continued to try to collect on these debts, which the co–plaintiffs allege to be in violation of the discharge injunction in § 524(a)(2) of the Bankruptcy Code.
So Haas and Shahbazi filed their own adversary proceeding against Navient, contending that the debts they were incurred were not “Qualified Education Loans” excepted from discharge, but instead “Consumer Education Loans” that targeted students attending unaccredited schools, and seeking class–action status. Navient moved to dismiss the case, which was denied last month.
The case is far from over, and if even if the plaintiffs and their class are successful, this would only affect a small portion of student loan debtors. In our experience, most clients have qualified educational loans, which are very difficult to discharge in bankruptcy without undue hardship. However, for student loan debtors who have been on the ropes since the seminal Brunnerdecision and the changes to dischargeability of educational loans in BAPCPA, this is welcome news. For any questions about your student loan debt, please contact Jim Shenwick.
Foreclosures have been on the rise since 2008. From 2007 to 2009 around 3 million homeowners were facing foreclosure. That number has tripled in size. This housing collapse combined with economic hardships and millions of homeowners being “upside down” or “underwater” in their homes has led to a housing crisis in the United States. Stop a Foreclosure immediately by reviewing some of the facts below.
Americans are turning towards filing Chapter 13 bankruptcy in order to stop an impending foreclosure sale. The original purpose of Chapter 13 bankruptcy was to allow a person who was facing financial ruin to place all of their debt into one large amount which would then be restructured and paid off one month at a time over a three to five year period.
In general, a Chapter 13 bankruptcy requires more than just a home being “underwater” for a court to rule in your favor. If your income is adequate for making your mortgage payments and you have no real noteworthy debt, then you probably won’t qualify for a Chapter 13 bankruptcy. Of course, your circumstances may be different or there might be other conditions that apply. But simply being “underwater” by your mortgage loan and behind on your payments is generally not enough to qualify.
If your financial situation is temporarily in disorder because of unexpected bills, medical emergencies, major vehicle repairs, etc., notifying your lender is critical. It is very possible that the lender may offer a temporary deferment of your payments or provide you with re-payment terms which allow you to temporarily reduce your payments owed in return for an extension of your mortgage. Contacting an experienced, knowledgeable attorney – a true expert in Tacoma Bankruptcy – can give you the advice and representation you need when facing such a situation.
Stop Foreclosure with a Tacoma Bankruptcy Attorney
When you file either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called the order for relief) that includes an “automatic stay.” The automatic stay directs your creditors to cease their collection activities immediately. No excuses. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending – typically for three to four months.
However, there are two exceptions to this general rule:
Motion to lift the stay: If the lender obtains the bankruptcy court’s permission to proceed with the sale (by filing a “motion to lift the stay”), you may not get the full three to four months. But even then, the bankruptcy will typically postpone the sale by at least two months, or even more if the lender is slow in pursuing the motion to lift the automatic stay.
Foreclosure notice already filed: Unfortunately, bankruptcy’s automatic stay won’t stop the clock on the advance notice that most states require before a foreclosure sale can be held (or a motion to lift the stay can be filed). For example, before selling a home in Oregon, a lender has to give the owner at least three months’ notice. If you receive a three-month notice of default, and then file for bankruptcy after two months have passed, the three-month period will elapse after you have been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale. This doesn’t mean the lender’s motion would be granted, but it is best to have an experienced Tacoma attorney on your side in an effort to prevent that from happening.
Many people will do whatever they can to stay in their home for the indefinite future. If that describes you, and you’re behind on your mortgage payments with no feasible way to get current, the only way to keep your home may be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you pay off the “arrearage” (late unpaid payments) over the length of a repayment plan you propose – five years in some cases. But you’ll need enough income to at least meet your current mortgage payment at the same time you’re paying off the arrearage. Assuming you make all the required payments up to the end of the repayment plan, you’ll avoid foreclosure and keep your home.
2nd and 3rd mortgage payments: Chapter 13 may also help you eliminate the payments on your second or third mortgage. That’s because, if your first mortgage is secured by the entire value of your home (which is possible if the home has dropped in value), you may no longer have any equity with which to secure the later mortgages. That allows the Chapter 13 court to “strip off” the second and third mortgages and re-categorize them as unsecured debt – which, under Chapter 13, takes last priority and often does not have to be paid back at all.
Schedule a Free Consultation with Your Tacoma Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Washington State. We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (253) 780-8008 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.
The post How to Stop a Foreclosure on Your Home in Tacoma appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
Foreclosures have been on the rise since 2008. From 2007 to 2009 around 3 million homeowners were facing foreclosure. That number has tripled in size. This housing collapse combined with economic hardships and millions of homeowners being “upside down” or “underwater” in their homes has led to a housing crisis in the United States. Stop a Foreclosure immediately by reviewing some of the facts below.
Americans are turning towards filing Chapter 13 bankruptcy in order to stop an impending foreclosure sale. The original purpose of Chapter 13 bankruptcy was to allow a person who was facing financial ruin to place all of their debt into one large amount which would then be restructured and paid off one month at a time over a three to five year period.
In general, a Chapter 13 bankruptcy requires more than just a home being “underwater” for a court to rule in your favor. If your income is adequate for making your mortgage payments and you have no real noteworthy debt, then you probably won’t qualify for a Chapter 13 bankruptcy. Of course, your circumstances may be different or there might be other conditions that apply. But simply being “underwater” by your mortgage loan and behind on your payments is generally not enough to qualify.
If your financial situation is temporarily in disorder because of unexpected bills, medical emergencies, major vehicle repairs, etc., notifying your lender is critical. It is very possible that the lender may offer a temporary deferment of your payments or provide you with re-payment terms which allow you to temporarily reduce your payments owed in return for an extension of your mortgage. Contacting an experienced, knowledgeable attorney – a true expert in Tacoma Bankruptcy – can give you the advice and representation you need when facing such a situation.
Stop Foreclosure with a Tacoma Bankruptcy Attorney
When you file either a Chapter 13 or Chapter 7 bankruptcy, the court automatically issues an order (called the order for relief) that includes an “automatic stay.” The automatic stay directs your creditors to cease their collection activities immediately. No excuses. If your home is scheduled for a foreclosure sale, the sale will be legally postponed while the bankruptcy is pending – typically for three to four months.
However, there are two exceptions to this general rule:
Motion to lift the stay: If the lender obtains the bankruptcy court’s permission to proceed with the sale (by filing a “motion to lift the stay”), you may not get the full three to four months. But even then, the bankruptcy will typically postpone the sale by at least two months, or even more if the lender is slow in pursuing the motion to lift the automatic stay.
Foreclosure notice already filed: Unfortunately, bankruptcy’s automatic stay won’t stop the clock on the advance notice that most states require before a foreclosure sale can be held (or a motion to lift the stay can be filed). For example, before selling a home in Oregon, a lender has to give the owner at least three months’ notice. If you receive a three-month notice of default, and then file for bankruptcy after two months have passed, the three-month period will elapse after you have been in bankruptcy for only one month. At that time the lender could file a motion to lift the stay and ask the court for permission to schedule the foreclosure sale. This doesn’t mean the lender’s motion would be granted, but it is best to have an experienced Tacoma attorney on your side in an effort to prevent that from happening.
Many people will do whatever they can to stay in their home for the indefinite future. If that describes you, and you’re behind on your mortgage payments with no feasible way to get current, the only way to keep your home may be to file a Chapter 13 bankruptcy. Chapter 13 bankruptcy lets you pay off the “arrearage” (late unpaid payments) over the length of a repayment plan you propose – five years in some cases. But you’ll need enough income to at least meet your current mortgage payment at the same time you’re paying off the arrearage. Assuming you make all the required payments up to the end of the repayment plan, you’ll avoid foreclosure and keep your home.
2nd and 3rd mortgage payments: Chapter 13 may also help you eliminate the payments on your second or third mortgage. That’s because, if your first mortgage is secured by the entire value of your home (which is possible if the home has dropped in value), you may no longer have any equity with which to secure the later mortgages. That allows the Chapter 13 court to “strip off” the second and third mortgages and re-categorize them as unsecured debt – which, under Chapter 13, takes last priority and often does not have to be paid back at all.
Schedule a Free Consultation with Your Tacoma Bankruptcy Attorney
When it comes time to file for bankruptcy, you need a compassionate and skilled attorney who will be able to guide you through the process as cleanly as possible. Northwest Debt Relief Law Firm, we can help you with filing for Chapter 7, Chapter 11, and Chapter 13 bankruptcy in Washington State. We will be there every step of the way to help navigate you through the often-complex and difficult bankruptcy process.
Give us a call at (253) 780-8008 to schedule a free consultation with one of our bankruptcy attorneys. If you have any other questions about bankruptcy, one of our attorneys will be more than happy to offer advice on your particular situation.
The post How to Stop a Foreclosure on Your Home in Tacoma appeared first on Portland Bankruptcy Attorney | Northwest Debt Relief.
(Bloomberg) -- The FBI raid on the offices of President Donald Trump’s lawyer, Michael Cohen, included one surprising aspect: taxi medallions. Agents were seeking documents on Cohen’s ownership of “numerous” New York City taxi medallions, according to CNN.
That might not be as salacious as records showing payments to an adult film star or to a former Playboy Playmate, but taxi permits were once a bonanza for alternative asset investors.
Prices for the permits jumped 60 percent from March 2011 to March of 2014 when they sold for $1 million each. The S&P 500’s total return in that period was 53.2 percent.
But the entrance of Uber and Lyft has slashed their value. Permit prices dropped almost 80 percent by March 2017 before recovering a bit over the last year. It’s not clear when Cohen made his investment.
©2018 Bloomberg L.P.
If you are a California resident who is struggling financially due to unemployment, it may be time to consider filing for bankruptcy, which can help you get a fresh start by reducing or eliminating many of the debts that you owe. However, while unemployment may help you qualify for certain types of bankruptcy, lacking a job could prevent you from choosing others. Continue reading to learn more about how job loss and unemployment could affect your ability to file bankruptcy in California. Then, contact the Roseville Chapter 7 lawyers of The Bankruptcy Group for a free legal consultation about your financial options for getting debt relief.
Do You Need a Job to File Chapter 7?
According to the Bureau of Labor Statistics, about 4.1% of Americans are currently unemployed. However, California’s unemployment rate is slightly higher than the national average, hovering around 4.3% as of February 2018.
Without a regular source of income, many unemployed Californians struggle to keep current on their mortgages, utility bills, credit card bills, and other expenses. For many families and individuals, a single medical bill or auto repair is all that stands between relative stability and total insolvency.
Fortunately, it isn’t necessary to struggle day in and day out just to make ends meet. If you are experiencing financial hardship due to job loss or prolonged unemployment, bankruptcy could be a potential solution.
While there are many types of bankruptcy, most cases fall into one of two categories: Chapter 7, also called “liquidation,” or Chapter 13, also called “reorganization.” Both provide debt relief, but through drastically different financial approaches. Therefore, unemployment may be an advantage in Chapter 7, yet a hindrance in Chapter 13. Our Rocklin Chapter 7 attorneys will begin by discussing Chapter 7 bankruptcy and unemployment. To read more about unemployment and Chapter 13, scroll down to the next section of this article.
You do not need a job to file for Chapter 7 in California. In fact, being unemployed can actually help you qualify for Chapter 7 due to a step of the bankruptcy process called “means testing.”
As the name implies, means testing measures (tests) your financial ability (means) to repay your creditors. If your household income falls below the California median income for a household of equivalent size – something which is more likely to occur if you are unemployed – you pass the means test and may therefore file for Chapter 7.
Because means testing considers your gross income over the past six months, it may be strategic to temporarily delay filing if the job loss occurred recently. If liquidation bankruptcy is appropriate for your situation, our Elk Grove Chapter 7 lawyers can help you determine the right time to file.
Can You File Chapter 13 if You Are Unemployed?
Technically speaking, you do not need a job to file for Chapter 13 in California. However, unemployment can become a major obstacle in Chapter 13, and could potentially prevent you from successfully completing the Chapter 13 process in Sacramento, Roseville, Elk Grove, Rocklin, or elsewhere in California. To understand why, you need to have some background about how Chapter 13 bankruptcy works.
In Chapter 13, debtors create a financial plan, known as a “reorganization plan,” with assistance from a Chapter 13 bankruptcy attorney. The purpose of the plan, which must be approved by the bankruptcy court, is to establish an agreement between you (the debtor) and the individuals or entities to whom you owe debts (your creditors). The plan, which lasts from three to five years depending on your financial situation, organizes your debts based on their importance, ensuring that priority debts, such as child support, and debts that are secured by collateral, such as auto loans, are the first to be repaid.
In order for a Chapter 13 debtor to continually stay current with his or her reorganization plan, which generally calls for monthly payments, the debtor must have sufficient disposable income – which is where unemployment can pose a problem. If the court determines that you lack enough disposable income to manage a reorganization plan successfully, you may need to file Chapter 7 instead. However, if you can demonstrate that you have adequate income from sources other than a job – for instance, Social Security benefits or money you’ve made by investing – you may be able to file Chapter 13 while unemployed.
California Bankruptcy Attorneys Can Help You Get Debt Relief
Unemployment does not necessarily have to prevent you from filing bankruptcy. If you are out of a job and need help clearing away your debts, personal bankruptcy could be a viable strategy. Depending on which type of bankruptcy you file, which exemptions you use, and other factors in your case, you could achieve financial goals like saving your home from foreclosure, getting caught up on past-due car payments, or delaying service shut-offs from nonpayment. Additionally, getting your debts under control can give you the freedom and flexibility to start building better credit in the future.
If you are unemployed, bankruptcy may offer financial hope. To learn more about whether Chapter 7 or Chapter 13 could be right for your situation, contact our Roseville bankruptcy attorneys online for a free consultation, or call us at (800) 920-5351.
The post Can You File Bankruptcy if You Are Unemployed in California? appeared first on The Bankruptcy Group, P.C..
If you are a California resident who is struggling financially due to unemployment, it may be time to consider filing for bankruptcy, which can help you get a fresh start by reducing or eliminating many of the debts that you owe. However, while unemployment may help you qualify for certain types of bankruptcy, lacking a […]
The post Can You File Bankruptcy if You Are Unemployed in California? appeared first on The Bankruptcy Group, P.C..
The March 2018 New York City Taxi & Limousine Commission (TLC) sales results have been released to the public. And as is our practice, provided below are James Shenwick’s comments about those sales results.
1. The volume of sales continues to remain low. In March, there were only 29 taxi medallion sales (excluding stock transfers).2. 14 of the 29 sales (almost half) were foreclosure or estate sales, which means that either: (1) the medallion owner defaulted on the bank loan and the banks were foreclosing to obtain possession of the medallion or; (2) the medallion owner died, and the estate was selling the medallion. We disregard these transfers in our analysis of the data, because we believe that they are outliers and not indicative of the true value of the medallion, which is a sale between a buyer and a seller under no pressure to sell (fair market value). An additional transfer was from an individual to an LLC for no consideration, which we have also excluded from our analysis.3. The 14 regular sales they ranged from a low of $163,333 (four medallions), to six medallions at $180,000, to two medallions at $225,000, and two medallions at the higher end of the price scale at $300,000 and $350,000.4. The low sales volume seems to indicate that at this stage of the market, not many parties are involved in selling or buying medallions, possibly due to the fear that medallion prices may further decrease.5. The median of March’s sales was $180,000, a $17,500 (9 %) decrease from February’s median sales of $197,500.6. However, politicians have spoken recently about capping the number of ride–share app drivers and/or instituting congestion pricing in Manhattan – either of these measures would stabilize or increase the price of medallions.
Please continue to read our blog to see what happens to medallion pricing in the future. Any individuals or businesses with questions about taxi medallion valuations or workouts should contact Jim Shenwick at (212) 541-6224 or via email at j[email protected].
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.