January 30th, 2012
Bankruptcy can offer a path back to financial stability for people with overwhelming debt. However, bankruptcy is not right for every situation. Some people do not qualify for bankruptcy; others have only a type of debt, such as a first mortgage or recently-incurred tax debt, that cannot be discharged in bankruptcy. Others may not need bankruptcy, because they have enough income or assets to repay their debt, and their financial difficulties are only temporary. For each of these situations, there are potential alternatives to resolve debt without bankruptcy. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt
December 23rd, 2011
In sprawling California, where miles of road separate jobs, homes, and stores, a working car can be a necessity. If you’re worried that serious financial problems may cost you your car, San Diego Law Firm can help you take advantage of bankruptcy laws designed to help you keep your car while clearing your auto loan debt.
There are two types of bankruptcy (Chapter 13 and Chapter 7), two types of car payments (loans and leases), and choices to be made in each situation. Each of these plays a role in whether and how you keep your car. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy
November 23rd, 2011
Generally, student loans can’t be eliminated in bankruptcy with other unsecured debts, like credit card loans and medical bills. However, there are possible bankruptcy strategies that can help you gain relief from student loan debt that is impossible to manage.
1. Proving “undue hardship” to eliminate loans Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt, Student Loans
October 4th, 2011
This is a common question for people who are struggling financially due to decreased income from job loss, divorce, illness, or other circumstances. People often say they feel guilty about filing bankruptcy and not repaying their creditors. As a consequence, they exhaust their savings and retirement accounts, and then end up filing for bankruptcy as a last resort.
However, if you are facing a high amount of debt and are struggling to pay bills, it’s important to think about the best long-term solution to deal with your finances. The unemployment rate in California currently stands at 12.1%. It can often take an extended period of time to find employment. If you subsidize your income by borrowing from your retirement accounts during your job search, you can drain your savings and subject yourself to big tax penalties for retirement account withdrawals you then can’t promptly repay. Read the rest of this entry »
Posted in Asset Protection, Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Retirement
August 19th, 2011
A frequent concern of people who consider filing for bankruptcy is whether bankruptcy can eliminate any balance remaining on their mortgage loan after their house has been foreclosed on. The answer depends on California’s “anti-deficiency” law, which says that a lender who forecloses on a home in a non-judicial foreclosure cannot then go after the homeowner/borrower for the balance due on the mortgage loan if it is a “purchase money loan.” Everything hinges on whether all of these requirements are met.
Purchase Money Loans
A purchase money loan on a residence is a loan taken out to buy the home that you live in. The most common example of a purchase money loan is a first mortgage. Generally, a purchase money loan is not a home equity line of credit or a home equity loan. A refinanced loan can qualify only if it maintains its “purchase money character,” which is not always the situation. Read the rest of this entry »
Posted in Bankruptcy, Foreclosure
July 29th, 2011
A mountain of debt can make anyone feel frustrated and hopeless. Worse, though, is having debt collectors bothering you about your debts, especially if a debt collector insults you, threatens you, won’t give you the details about the bill, or embarrasses you by contacting other people – all common, but illegal, collection tactics.
If you are having problems with a debt collector, contact San Diego Law Firm for help. We can stop any illegal conduct and, at no charge to you, seek compensation for you from the debt collector, who must also pay your attorney fees if their collection efforts were illegal. If you are simply feeling overwhelmed with debt, we can evaluate your financial situation in a no-charge consultation, and you can find out whether Chapter 13 or Chapter 7 bankruptcy could be a good choice for you. Read the rest of this entry »
Posted in Bankruptcy, Debt, Debt Collectors
June 20th, 2011
The days leading up to the realization that bankruptcy is your best option can be filled with anxiety and emotion. The bills are flooding in, the creditors are calling, and you may be using up your last resources just trying to keep your head above water. If you are planning to file bankruptcy soon, then it’s helpful to know which bills to keep paying, and which bills are likely to be reduced or eliminated in bankruptcy. Read the rest of this entry »
Posted in Bankruptcy, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy, Debt
May 20th, 2011
Having debt can be scary, especially if it’s a lot of debt. You can feel like there is no way to get out from under it, no matter what you do. However, Chapter 7 bankruptcy does just that: it digs you out from underneath all of that debt and gives you a fresh start. Chapter 7 can be particularly useful where you have an overwhelming debt because of a one-time event beyond your control, such as large medical bills due to a serious illness not covered by insurance. In that situation, Chapter 7 bankruptcy is a good option to think about because it is possible to get rid of those unpaid and impossible-to-pay medical bills, along with many other debts that may have piled up because the illness also resulted in lost work time.
But filing bankruptcy does not make sense for everyone. Some debts get wiped out, while other debts stick with you. Debts that usually stick with you after Chapter 7 bankruptcy include: Read the rest of this entry »
Posted in Bankruptcy, Chapter 7 Bankruptcy, Debt
April 1st, 2011
If you are thinking about filing for a Chapter 7 bankruptcy, which gets rid of most debts and gives you a financial “fresh start,” you should know that mistakes you make BEFORE filing can keep you from getting all the benefits of this type of bankruptcy.
Preparing for Bankruptcy
Sometimes, people have the wrong idea about how to prepare for filing Chapter 7 bankruptcy. They think they can “max out” their credit cards and then get rid of that debt in bankruptcy. Others plan to hide some of what they own and not list it in their bankruptcy papers, thinking that they will have a secret “nest egg” or items they can sell while they are in bankruptcy. Read the rest of this entry »
Posted in Bankruptcy, Chapter 7 Bankruptcy
January 28th, 2011
There are many advertisements on television and the internet for companies offering credit repair services. Unfortunately, many of these services are outright scams.
Credit repair scams that claim to be able to erase negative information from your credit report for a fee are particularly dangerous. While you can ask credit bureaus to correct outdated or inaccurate information, they will not remove accurate information from your credit report, no matter how negative that accurate information is. Also, under the Credit Repair Organization Act, it is illegal for credit repair companies to collect upfront fees before performing any services.
A reputable company that helps you improve your bad credit will notify you of your rights before you begin dealing with them, and will explain the steps you can take on your own to improve your credit. If you need credit counseling to set a budget or to find out how to negotiate with credit card companies on your own, it’s best to deal with only government-approved agencies. Contact the Office of the United States Trustee for a list of these credit counseling agencies; many offer free or low-cost services.
For many persons facing high debt, however, bankruptcy may be the best option. If you do not earn a high income and do not own many high-value possessions, Chapter 7 bankruptcy may be able to wipe out many or all of your debts, including credit card debts, medical bills, past-due utility bills, and other unsecured debts.
If you have a steady income and valuable assets such as home equity, and your debt load is due to a one-time event such as a job loss or high medical bills, Chapter 13 bankruptcy may be a better solution for you. For a Chapter 13 bankruptcy, your attorney will prepare a proposed debt repayment plan based on your income, the value of your assets, and the amount of your debt. Once your plan is approved by the Bankruptcy Court, your creditors will be legally bound by it and will have to stop their collection efforts. The amount of debt you will repay depends on your individual financial circumstances; typically, you will repay only a small portion of your unsecured debt, and the rest will be discharged when you complete your Chapter 13 debt repayment plan.
If you are struggling with overwhelming debt, please contact an attorney who is experienced in handling San Diego bankruptcies. Our bankruptcy lawyers can explain the benefits and drawbacks of bankruptcy, your options under the laws, and the process of filing a bankruptcy case. You can then make an informed decision about what is best for you and your family. Please contact San Diego Law Firm at (619) 794-0243 to find out how we can help you become free of debt.
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