Q: Will All My Debts Be Discharged In Bankruptcy? A: It Depends.
Can all types of debt be discharged by bankruptcy?
No. Generally the following types of debt cannot be discharged:
o Debts for taxes;
o Debts for money, property or services obtained fraudulently;
o Debts that are owed to a spouse, former spouse or child for alimony, maintenance or support of such spouse or child in connection with separation, divorce or other court order;
o Debts not listed or waived by the debtor;
o Debts owed for willful and malicious injury;
o Debts for government-sponsored educational loans unless undue hardship can be shown;
o Debts for death or personal injury caused by driving under the influence of drugs or alcohol; and
o Debts incurred after a bankruptcy was filed.
If you need to consult with a CARLSBAD BANKRUPTCY ATTORNEY, call Jeffrey Larkin at 1.877.25.NEW.HOPE. Mr. Larkin is also able to help you if you need a RIVERSIDE BANKRUPTCY LAWYER. Call today for your free consultation.
For more details, Please visit our website: http://www.live-debt-free-now.com
How Do I Know Which Bankruptcy Attorney is Right for Me?
Choosing the right attorney for bankruptcy representation is one of the most important financial decisions a person can make. Beware of “fly-by-night” operations. While many believe that filing for bankruptcy is routine (many cases are), bankruptcy law can be quite complex. Over the last several years, bankruptcy attorneys have seen a steady increase in the complexity of cases due in large part to the housing crisis, job loss, and high unemployment. It is not uncommon for debtors making $100k per year to seek bankruptcy protection. The more income and assets a person has, the more important it is to hire experienced representation who deals with these issues on a daily basis. There is simply no substitute for an attorney familiar with the system to help you navigate the process.
First and foremost, listen to your gut. If your gut feeling tells you that the attorney or law firm you are dealing with is questionable, you should immediately get yourself out of that situation. Personal intuition should never be ignored. Second, ask the attorney how long he or she has been practicing bankruptcy law, and whether it is their primary area of expertise. Simply having a law degree and being an attorney are insufficient qualifications. Bankruptcy law is not a required course in law school and the vast majority of attorneys have no clue about the substantive law unless they actively practice. Third, ask your attorney how many cases they have filed during the time they have practiced bankruptcy law. A five year “veteran” who only files 5 cases a month will not have the same expertise as one who files 20 per month in the same 5 year period. Having said that, you want to ensure that the attorney you choose is not handling so many cases that they do not have time to respond to your inquiries or concerns. Lastly, ask about the attorney’s policy for responding to client questions. In general, any policy to return calls or e-mails within 24 hours is reasonable. Bankruptcy is a stressful time for the individuals who are going through it. A responsive attorney who is sensitive to this issue can make all the difference in the world.
If you need to consult with a CARLSBAD BANKRUPTCY ATTORNEY, or perhaps you need to speak with an ESCONDIDO BANKRUPTCY LAWYER, call Jeffrey Larkin at 1.877.256.3946. Additionally, if you require a RIVERSIDE BANKRUPTCY ATTORNEY, call Mr. Larkin for your free consultation today. Mr. Larkin is also available if you need to consult with a SAN DIEGO BANKRUPTCY LAWYER.
If I File Bankruptcy, Will My Credit Be Ruined?
My credit will be ruined for 7-10 years once I file for bankruptcy and I won’t be able to get credit, right? Not necessarily!One of the common myths about filing for bankruptcy is that it ruins your credit for many years. The answer is “it depends.” It depends on a number of factors including your current credit score, your debt load, and your previous credit history. As surprising as it sounds and contrary to mainstream beliefs on the subject, a bankruptcy can actually improve your credit. Let me say that again: A BANKRUPTCY CAN ACTUALLY IMPROVE YOUR CREDIT. Compare the following:
Debtor “A” is a cashier who makes $32k per year, and as a result of being out of work off and on for the last year, has accumulated $86k in unsecured credit card debt. He has not had the money to maintain his credit cards and consequently has many 30, 60, and 90 day delinquencies on his credit report. This person’s credit is in the dumps.
In this scenario, a bankruptcy would likely improve this persons credit score. This is because it stops additional derogatory marks from hitting your existing credit accounts and ultimately eliminates the unsecured debt load. About a third of your credit score is based on your “debt to income” ratio and the bankruptcy discharge helps to balance that ratio which improves the score.
Debtor “B” is a mechanic who makes $53k per year and has accumulated $40k in credit card debt over the last several years. He has always been able to make the minimum monthly payments on his accounts; however the balances never seem to decrease due to the high interest charged. This debtor has no 30, 60, or 90 day lates on his credit report. His credit score is good.
In this scenario, the debtor has a much lower “debt to income” ratio and has been paying his bills on time to maintain his good credit score. A bankruptcy filing here would have the opposite effect on the debtor’s credit compared to the Debtor “A” case. As funny as it sounds, the better your credit is at the time of the bankruptcy filing, the more it will be affected negatively as a result post discharge. The worse off your credit is at the time of filing, the more likely it will improve as a result of the discharge.
So what’s the deal with getting credit after a bankruptcy is filed? Surprisingly, there are options available. Once your case is discharged, you will likely begin to receive new offers of credit. The reason is twofold. First, the credit card company knows you have already filed for bankruptcy so that if you default in the future, you will be unable to claim bankruptcy protection for a number of years. Second, you are more likely to repay your bills moving forward because of your desire to make the best of the fresh start the bankruptcy has provided. You are a better credit risk at that point.
For the small group of individuals who still have trouble obtaining credit after bankruptcy, a secured credit card is always an option. With a secured credit card, you give a bank between $200-$500 and they will give you a secured credit card for $500-$1,000. This is a good way to begin to re-establish your credit. My advice to all debtor’s seeking to re-establish their credit after a bankruptcy, is to get ONE credit card and use it only for two things; Food and Gas. These are two expenses you are going to have no matter what. You have to eat, and you need to put gas in your vehicle. Charging these two expenses and paying them off each month in full is a great way to quickly begin to put you on the road to financial recovery. Also, www.lifeafterbankruptcy.com is a website that has some helpful information for debtor’s seeking to re-establish their credit post bankruptcy.
To consult with a RIVERSIDE BANKRUPTCY ATTORNEY-LAWYER call Jeffrey Larkin at 1.877.25.NEW.HOPE (1.877.256.3946) to speak with a CARLSBAD BANKRUPTCY ATTORNEY-LAWYER today!
For more details, Please visit our website: http://www.live-debt-free-now.com
Can I Discharge a Civil Judgment by Filing Bankruptcy?
A judgment has been entered against me. What happens now?
Once a creditor has obtained a judgment against you, chances are they will likely attempt to enforce it. There are many collection tools available in this regard depending on whether collection is sought against a business or individual.
The following are the most common ways a judgment creditor will seek to satisfy a judgment:
1) Wage Garnishment: If you are employed as a W-2 employee, a judgment creditor can attempt to garnish your wages to pay off the judgment amount. Under a wage garnishment, your employer is served an order to withhold your pay. The creditor is generally limited to 25% of gross wages per pay period. Wage garnishments are not very effective on self-employed individuals since it is difficult to force someone to withhold and turnover their own wages.
2) Bank Account Levy: If a creditor has obtained a judgment against you and knows where you bank, a bank levy can be an effective tool. Unlike a wage garnishment where your employer is served and you are provided notice, with a bank levy, you aren’t notified until after the levy has already taken place. The reason is obvious. Many judgment debtors would remove the money from the account if they were notified beforehand. Additionally, wage garnishments are ongoing orders to withhold wages, whereas a levy order is a “one time shot” taking whatever is in the account at the time of the levy. Each subsequent levy requires a separate order.
3) Liens: The purpose of a lien is to secure payment by attaching or linking it to property. It is the best chance of guaranteeing payment on a judgment at some point in time. The most common example is a lien placed against real estate. The lien attaches to the real estate and collects interest at 10% per year. Once the property is sold, foreclosed or refinanced, the liens are paid off in the order they were placed against the property.
If you are facing any of the above, bankruptcy can help by stopping the garnishments, reversing recent levy’s, and removing existing judgment liens against your property.
If you need to consult with a CARLSBAD BANKRUPTCY LAWYER or if you need to speak with a RIVERSIDE BANKRUPTCY LAWYER, call attorney Jeffrey Larkin at 1.877.NEW.HOPE (1.877.256.3946).
For more details, Please visit our website: http://www.live-debt-free-now.com
Is There a Minimum Amount of Debt Required to File Bankruptcy?
This is a common question I hear quite often as people contemplate filing for bankruptcy. The answer is no. The decision to file for bankruptcy relief is relative to the debtor’s financial situation. For example, it is not uncommon for someone who is living on social security or other fixed income to file for bankruptcy only owing a few thousand dollars in credit card debt.
The problem here is ridiculous interest rates coupled with people who, because of their limited incomes, are unable to make anything more than the minimum monthly payment on these debts. It creates a vicious, never-ending cycle which a bankruptcy snaps. This again comes back to the importance of seeking out and hiring an attorney who is able to competently analyze your options and help you determine the best course of action to take.
To speak with a CARLSBAD BANKRUPTCY ATTORNEY call Jeffrey Larkin at 1-877-25-NEW-HOPE (1-877-256-3946) today for your free consultation with a CARLSBAD BANKRUPTCY LAWYER.
For more details, Please visit our website: http://www.live-debt-free-now.com
