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Whether you are only considering bankruptcy, or currently in the middle of one, you are probably already looking ahead to the future. Life after bankruptcy may seem scary, but it is actually pretty great! The feelings of stress and anxiety you felt while drowning in debt will have melted away, and you can begin to focus on planning and preparing for your new life. The primary concern for many people coming out of a bankruptcy is rebuilding and repairing credit. If you are wondering how to begin improving your credit score, this post may provide some insight on establishing a solid credit history post bankruptcy.
The post Rebuilding Credit After Bankruptcy appeared first on Tucson Bankruptcy Attorney.
Every year, numerous Americans turn to bankruptcy as a means to find relief
from insurmountable debt. These individuals, couples, and businesses come
from all walks of life, and their financial situations are always unique.
Because finances and filers are always different, the Chapter of the U.S.
Bankruptcy Code you file under is a matter unique to you.
At Allmand Law Firm, PLLC, our Dallas bankruptcy lawyers prioritize personalized
service and support because we know it is the most important element in
a bankruptcy case. Unlike other firms that treat clients as if they are
numbers, we don’t apply a one-size-fits-all formula when handling
cases. We get to the bottom of our clients’ current financial situations,
work to understand their needs and goals, and help them explore available
options that can provide them with the benefits they need.
When it comes to selecting a Chapter of bankruptcy, most individual consumers
typically file under one of two Chapters: Chapter 7 bankruptcy (also known
as liquidation bankruptcy) or Chapter 13 bankruptcy (referred to as reorganization
bankruptcy or the wage earner’s plan).
- Qualifying – Due to laws that limit access to Chapter 7 bankruptcy to only
certain consumers and require certain factors for those who file under
Chapter 13, you might not always have a choice of which Chapter you can
file under. This is because you need to meet qualifying criteria. This
is important to understand, as you can’t simply choose a Chapter
and launch into the process. - Chapter 7 –
Chapter 7 bankruptcy is intended to help debtors who face the most pressing debt
concerns. It is typically reserved for consumers who have little to no
assets, and who do not have the financial means to continue making monthly
payments toward pre-existing debts. In order to qualify for Chapter 7,
filers must pass a
means test that compares their monthly income to the median monthly income in the
state of Texas. Generally, if your average monthly income is less than
or equal to the state’s median income, you will be eligible for
Chapter 7. If it is more than the state median, you will need to determine
if you have enough disposable income to make payments. If your disposable
income is too high, you likely will not be able to choose Chapter 7. - Chapter 13 –
Chapter 13 bankruptcy is a wage earner’s plan that reorganizes debt and allows
filers to make consolidated monthly payments toward them over three to
five years. As such, filers must have enough available funds and income
to make payments over the course of their reorganization plan. Chapter
13 bankruptcy doesn’t mean you don’t get a discharge, that
still happens at the end of a plan. It also enables filers to keep certain
property by paying back all or at least some of what they owe on property
with pre-existing debt.
Your choice in which Chapter of bankruptcy to file under depends on qualifying
criteria, your personal situation, and your ultimate goals for the financial
future. Understanding the unique benefits of each Chapter, as well as
how they will impact you, can be a difficult matter, which is why it becomes
important to work with experienced attorneys like ours at Allmand Law
Firm, PLLC. During a FREE financial empowerment session, our legal team
can help you understand which Chapter of bankruptcy is best for you, and
how we can help you take the right steps to navigate the process ahead.
Contact us to get started.
The post Filing Bankruptcy: Which Chapter Do You File? appeared first on Allmand Law.
There are several types of bankruptcy in California, including Chapter 7 bankruptcy, Chapter 13 bankruptcy, and, as this article will focus on, Chapter 11 bankruptcy. While individuals can file Chapter 11 bankruptcy in rare circumstances, Chapter 11 is more commonly used by businesses, ranging from small family-owned companies to well-known national franchises. Our Sacramento bankruptcy attorneys explore some common reasons businesses choose to file Chapter 11 in California. Could Chapter 11 be right for your company? Continue reading to find out.
3 Reasons Companies File Chapter 11 Bankruptcy in California
It might seem like there is an obvious reason to file Chapter 11 bankruptcy: your company is struggling with a period of financial difficulty. Unfortunately for business owners, making the decision to file Chapter 11 is not necessarily that simple or straightforward.
Filing Chapter 11 is a major decision with long-term implications for your business, so it is vital to thoroughly explore all potential avenues when determining whether Chapter 11 is truly the most effective and most appropriate option. Depending on factors like how the business entity is structured, how much debt you have incurred, and your vision for the future of the company, it may be more cost-efficient to file Chapter 7, file Chapter 13, or even weigh alternatives to bankruptcy for businesses, such as arranging an out-of-court “workout” with your creditors.
At The Bankruptcy Group, our trusted legal team includes not only Sacramento Chapter 11 attorneys, but also Sacramento Chapter 7 lawyers and Sacramento Chapter 13 attorneys, enabling us to give you a detailed comparison of the potential outcomes that could result from each approach. While it is impossible to say which type of bankruptcy is best for your business without first discussing your company’s financial situation, Chapter 11 might be right for your company if…
- You aren’t a sole proprietor. Federal bankruptcy regulations prohibit business entities like corporations and limited liability companies (LLCs) from filing Chapter 13 bankruptcy, leaving Chapter 7 and Chapter 11 as the primary bankruptcy options for business owners who are not sole proprietors. If you are a sole proprietor, contact our Folsom Chapter 13 lawyers to talk about whether filing Chapter 13 is the right option.
- Lawsuits are costing your company money. It is common for businesses to file Chapter 11 after litigation has been threatened or initiated. If the cost of defending your company is placing a financial strain on the business, Chapter 11, which generally stops pending litigation due to a federal provision called the “automatic stay,” could provide relief, provided avoiding litigation is not your only reason for filing, which could potentially lead to dismissal of your case for dealing in bad faith. While other types of bankruptcy also afford debtors the benefits of the automatic stay, which pauses debt collection – including the repossession of industrial equipment and foreclosure on commercial property – you may want to rule out Chapter 7 and focus on Chapter 11 if…
- You want to continue operating the business. Whether used for a business or an individual, Chapter 7 is a liquidation bankruptcy. However, unlike individual debtors who can protect their property from liquidation with bankruptcy exemptions, businesses do not have this option. If you file Chapter 7 for your business, the company’s assets will be liquidated, resulting in closure of the business. If you wish to put an end to the business, Chapter 7 may be a suitable option. However, if your intent is to keep the business running, Chapter 11 is a more appropriate approach. Chapter 11 is a complicated and rigorous process, but if you manage your bankruptcy carefully and effectively, your business can emerge from Chapter 11 successfully and go on to become profitable again.
Sacramento Business Bankruptcy Attorneys for Corporations, LLCs, Partnerships, and Sole Proprietorships
Whether your California business is structured as an S corporation, C corporation, limited liability company, general partnership, limited partnership, limited liability partnership, or sole proprietorship, the Sacramento business bankruptcy lawyers and Roseville small business bankruptcy lawyers of The Bankruptcy Group can help you evaluate your financial options for saving a failing or unprofitable business. Equipped with years of experience representing businesses across a broad spectrum of industries, our attorneys understand the unique challenges and opportunities that can arise in Chapter 11 cases. We are ready to help you navigate the laws as we work diligently to protect your best interests throughout the California bankruptcy process. Our goal is to help your business get the relief it needs to continue growing and succeeding again.
To learn more about whether Chapter 11 or other bankruptcy options are right for your company, call The Bankruptcy Group today at (800) 920-5351 for a free legal consultation. We proudly serve businesses in Roseville, Sacramento, Folsom, and other communities in the region.
The post 3 of the Most Common Reasons Companies File Chapter 11 in California appeared first on The Bankruptcy Group, P.C..
When an individual or couple files for bankruptcy, they are required to
disclose all of their assets in their petition. It is important for filers
to remember that they must be 100 percent truthful when disclosing assets
and that they not attempt to hide them. Some people think that by concealing
assets, they won’t be taken away by the court during bankruptcy.
However, doing so is considered perjury, which comes with a number of
penalties which ultimately may end up costing the filer even more.
There are many reasons why an asset may go undisclosed by a filer. These include:
- The filer lied about possessing the asset
- The filer transferred an asset to someone else’s name
- The filer created fake mortgages or liens to devalue their property
- The filer may have been careless in disclosing the asset
- The filer may have legitimately forgotten to include assets they may not
have thought of
Bankruptcy trustees are very keen detectives and are not often fooled by hidden assets.
All it takes is a public records review, a debt review, a review of bank
records or tax returns, or a look at online asset searches to determine
whether or not an asset has been hidden or transferred. If a filer is
found to have attempted to conceal assets, they face a number of repercussions.
Not only will their hidden assets not be eligible for discharge (meaning
they will still owe the debt they were trying to get rid of with bankruptcy),
but they may also get their discharge revoked. Worse still, they may face
criminal charges and penalties for perjury, which is punishable by up
to five years in prison and / or a fine of up to $500,000.
Sometimes, though, assets are not disclosed simply because a person made
a mistake without malicious intent. If this happens, the filer should
immediately disclose the asset to their trustee. As long as the mistake
was not made in an attempt to delay, hinder, or defraud creditors, the
error should not result in a denial of a discharge.
The following are examples of assets most commonly forgotten in bankruptcy
petitions:
- Retirement benefits
- Inheritances
- Lottery winnings
- Trusts
- Lawsuits
- Co-owned assets
Considering Bankruptcy? Work With an Attorney You Can Trust
If you are considering bankruptcy in the Dallas – Fort Worth area, please
get in touch with a Dallas bankruptcy attorney at Allmand Law Firm, PLLC.
Our team is prepared to assist you with your filing so that you can reach
a resolution as quickly and smoothly as possible. Get started with a FREE
financial empowerment session when you
contact us.
The post Why Hiding Assets Could Cost You appeared first on Allmand Law.
The two most common types of bankruptcy in California are Chapter 7 bankruptcy, a fast process that involves liquidation of property, and Chapter 13 bankruptcy, a longer procedure where debtors make monthly payments to keep their property while reducing or eliminating various debts. Chapter 13 bankruptcy can have negative short-term effects on your credit score, but for many Californians, the long-term benefits outweigh the initial credit score drop. Sacramento bankruptcy attorneys explain how much Chapter 13 bankruptcy affects your credit score, and how long Chapter13 bankruptcy stays on your credit report.
How Much Does Chapter 13 Lower Your Credit Score?
Your credit report is a collection of personal information and financial data about you. Your credit report displays a number called your “credit score,” which is calculated based on how often you made full and timely payments on your utility bills, student loans, car loans, or other payments. Other factors that impact your credit score include lawsuits, foreclosures, liens, and – as our Sacramento Chapter 13 attorneys will be discussing in this article – bankruptcy.
There are a few different systems for rating credit scores, such as the FICO score range scale and the VantageScore range scale. However, speaking generally, credit scores are divided into the following categories:
- Excellent – 720 or higher
- Good – 690-719
- Fair – 630-689
- Poor – 629 or lower
Lenders use your credit report and credit score to assess the risk of giving you a loan, which means your credit score affects the types of loans you can qualify for. The more payments you make in full and on time, the higher your credit score will be, and the easier it will be to obtain a loan with a competitive interest rate. On the other hand, a history of delinquent or partial payments will chip away at your credit score, making it harder to qualify for desirable loans.
Like a string of delinquent payments, a bankruptcy case will also have a negative effect on your credit score – at least in the short term. Depending on what your credit score was before you filed bankruptcy, your score might temporarily drop anywhere from about 130 to 240 points. Generally speaking, the higher your score was prior to bankruptcy, the more it will drop when you file Chapter 13 in Sacramento.
However, that does not necessarily mean all lenders will be unwilling to offer you a loan. Unlike Chapter 7 bankruptcy, which is meant for debtors who have limited financial resources, Chapter 13 is meant for high-income debtors who have the financial means to direct their disposable income into monthly payments for a period of up to five years. Because Chapter 13 requires commitment to a long-term repayment plan, lenders may look more favorably upon Chapter 13 debtors than Chapter 7 debtors.
How Long Does Chapter 13 Stay on Your Credit Report in California?
A Chapter 13 bankruptcy will remain on your credit report for seven years. The seven-year clock starts counting down from the date you file bankruptcy, not the date your case is discharged. This distinction is significant for Chapter 13 debtors, because Chapter 13 bankruptcy requires a period of either three or five years for discharge, depending on your financial circumstances and the structure of your “reorganization” (repayment) plan.
After seven years, the record of the bankruptcy should be removed automatically, without you needing to take any action. However, it is still a good idea to periodically check your credit report in case there are any mistakes or inaccuracies. Checking your credit report can also help you detect identity theft, and help you manage your finances more effectively. You are entitled by federal law to receive one free annual copy of your credit report from each of the three major credit reporting bureaus: Experian, TransUnion, and Equifax.
Chapter 7 bankruptcy takes longer to come off your credit report than Chapter 13, because unlike Chapter 13 debtors, Chapter 7 debtors are not required to make monthly payments. Chapter 7 bankruptcy will stay on your credit report for 10 years before it is removed. Nonetheless, there are many debtors who would benefit more from Chapter 7 than they would from Chapter 13. Our Sacramento Chapter 7 bankruptcy lawyers can help you determine which chapter of bankruptcy is right for you.
Sacramento Bankruptcy Lawyers Can Help
Filing bankruptcy in California will temporarily have a negative effect on your credit score. However, if you are considering bankruptcy, it is likely due to excessive debt, which means you likely have a low credit score already. By wiping out many of your debts, bankruptcy can free up your finances and give you a fresh start, which positions you to build better credit going forward.
To learn more about filing Chapter 13 or filing Chapter 7 in Sacramento, Roseville, Folsom, or the surrounding area, call the California bankruptcy attorneys of The Bankruptcy Group at (800) 920-5351 for a free bankruptcy consultation. Your information will be kept confidential.
The post How Does Chapter 13 Bankruptcy Affect Your Credit in California? appeared first on The Bankruptcy Group, P.C..
When any of Wynn at Law, LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
If you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law, LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
When any of Wynn at Law LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
As our earlier article pointed out, if you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
When any of Wynn at Law LLC’s clients own real property in Wisconsin, we look at a Transfer on Death Deed (commonly called a TOD Deed or a TODD) to see if it is a suitable fit for their estate plan. It can sometimes wipe out the need to go to probate court, which is a time and cost saver.
As our earlier article pointed out, if you have $50,000 or more in probate assets, probate court comes into play when distributing assets. Probate assets are all assets NOT automatically transferred to another person when the owner passes. Life insurance proceeds, for example, skip probate because a beneficiary is identified. So, if assets can avoid probate, why not place a TODD on an asset like a vacation home to transfer it directly to beneficiaries, such as the kids?
The answer in some cases is that if you need to protect assets – for or from your children – you might not want to transfer them on your death. For the minor kids, you might want to transfer the asset to a trustee for their benefit until they’re older. In the case of adult children who may have creditor problems or a looming divorce, you might again want a trustee instead of transferring the property to them directly. Otherwise, a TODD making assets ‘unprobatable’ is an alternative for every Wynn at Law LLC client because the property doesn’t need to be owned free-and-clear. You can have a mortgage, a second mortgage, even a line of credit against the property and still use the TODD to pass it on… and skip probate.
Let’s say you had a car and some bank assets totaling $49,995 and a $89,000 getaway cabin up north. All in, the assets would require probate, but if a TODD was placed on the cabin, the cabin passes to your heirs (they still get the debt if it was mortgaged, by the way) and the rest of the estate would avoid probate because it’s under the $50,000 limit.
Your accountant, or your beneficiary’s, will point out that there may be tax benefits to this strategy as well, because the transfer isn’t considered a ‘gift’ subject to gift tax. The TODD may also reduce or eliminate capital gains taxes if and when the property is sold by the beneficiary.
Even if you have the Transfer on Death Deed, you can still choose to sell a property while you’re living: It’s yours! The TODD designation does not give the beneficiary ‘ownership’ of the property while you’re alive… if the document is drafted properly. Call an attorney.
*The content and material in this original post is for informational purposes only and does not constitute legal advice.
Photo by Ekaterina Kondratova, used with permission.
The post Transfer on Death Deeds eliminate probate appeared first on Wynn at Law, LLC.
From Bloomberg: Student Loan Giant Faces Trial over US Claim it Duped Borrowers.
Lawsuits brought by Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois allege that Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.
Navient remains under investigation by other state authorities while it seeks to land a lucrative Trump administration contract to continue collecting payments from borrowers with federal student loans.
A CFPB analysis earlier this year found that Navient was the nation’s most-complained about financial company.
Navient illegally steered struggling borrowers facing long-term hardship into payment plans that temporarily postponed bills (while interest continued to accrue), the officials alleged, rather than helping them enroll in federal programs that cap payments relative to their earnings and offer the promise of loan forgiveness. Navient has denied the allegations.
Share this entry
About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys. 
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer. Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article. You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
The post Did Navient Illegally Over-charge Student Loan Borrowers? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
From Bloomberg: Student Loan Giant Faces Trial over US Claim it Duped Borrowers.
Lawsuits brought by Consumer Financial Protection Bureau and state attorneys general of Washington and Illinois allege that Navient mistreated hundreds of thousands of student debtors by taking shortcuts to minimize its own costs, while adding what the CFPB said was as much as $4 billion in interest charges to borrower loan balances.
Navient remains under investigation by other state authorities while it seeks to land a lucrative Trump administration contract to continue collecting payments from borrowers with federal student loans.
A CFPB analysis earlier this year found that Navient was the nation’s most-complained about financial company.
Navient illegally steered struggling borrowers facing long-term hardship into payment plans that temporarily postponed bills (while interest continued to accrue), the officials alleged, rather than helping them enroll in federal programs that cap payments relative to their earnings and offer the promise of loan forgiveness. Navient has denied the allegations.
Share this entry
About the Author:
Diane L. Drain is a well known and respected Arizona bankruptcy attorney. She is an expert in both consumer bankruptcy and Arizona foreclosure. Since 1985 she has been a dedicated advocate for her clients and spokesperson for Arizona citizens. Diane is a retired professor of law teaching bankruptcy for more than 20 years. As a teacher she believes in offering everyone, not just her clients, advice about the Arizona bankruptcy laws. She is also a mentor to hundreds of Arizona attorneys. 
I would be flattered if you connected with me on GOOGLE+
*Important Note from Diane: Nothing on this website should be construed as establishing a lawyer-client relationship between you, me, the author of any page or the website owner (me) who happens to be a lawyer. Everything on this web site is available for educational purposes only, is not intended to provide legal advice nor create an attorney client relationship between you, me, or the author of any article. You may pick up some information about bankruptcy, foreclosure or the practice of law written by myself or others. Any information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state.*
The post Did Navient Illegally Over-charge Student Loan Borrowers? appeared first on Diane L. Drain - Phoenix Bankruptcy & Foreclosure Attorney.
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.