Posts Tagged ‘Chapter 7 Title 11 United States Code’

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Where to Find Experienced California Bankruptcy Lawyers

Friday, May 14th, 2010

One of the best places to find lawyers today is on the web. Some will point out there are scams, but if a lawyer has passed the bar, has been working in your area for years, has proof of helping clients across California, and has positive testimonials — these things point out the lawyer is in good standing.

If you’re looking for California lawyers, one of the best places to look is online, such as this blog designed to help consumers with legal help. An experienced lawyer in any state requires some research.  So how do you hire one?

How to Hire a Bankruptcy Lawyer
If you want to hire a bankruptcy lawyer in any state, use good hiring strategies over time. Starting online is a good start, but also look to your local yellow pages. The easiest thing to do is hire the first lawyer you come across; this can be a big mistake. You need to research lawyers, see their experience, discuss fees, and note how they’ve helped others. That should be done with several lawyers–not just one.

By looking for experience, you save yourself a lot of time. You need a lawyer who 1) has at a minimum  of several years experience and 2) specializes in personal bankruptcy cases.

Also, you want a lawyer to be local. You want to meet with him, not just send emails and chat on the phone. Your California bankruptcy lawyer can educate you more in person than at any other point. You have more time to ask questions. Also, you’ll be able to get fair rates, a lawyer who knows California eligibility and federal bankruptcy code, and one who can save you time and headaches in paperwork.

Where to Find Lawyers
So you went online, queried a few lawyers, but you’re not finding a match. No problem, because the State Bar of California has a directory of all the lawyers in your area, what they specialize in, and how to contact them. If you’re in a small town, you might have to hire a lawyer a bit further away. That costs you only a little gas money; you can  and should meet with them.

Tips on What to Look For
Surprisingly, price may not be your first question. After all, this bankruptcy lawyer may have 20 years experience in helping people through bankruptcy, saving homes, stopping creditor harassment, and letting you keep other assets. That is more valuable than the lawyer fresh out of law school.

In either case, price is still an issue. Once you’ve gauged your prospects experience, ask about fees. While actually filing bankruptcy may seem easy, it’s in fact a precise science, and often you will have to appear in court, and always have to fill out a lot of papers. Hiring an experienced California bankruptcy lawyer makes this process simple. You can expect lawyers to charge from $1,000-$2,000, sometimes more.

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Tips on Keeping Your Home Before, During, and After Bankruptcy

Wednesday, May 12th, 2010

Chapter 7 bankruptcy has many clear advantages, but unfortunately not many for home owners. Technically you can eliminate mortgage debt–just don’t expect to keep your home.

So how do you keep your home instead  of Chapter 7 bankruptcy? What can you do during the bankruptcy? And what happens after — will you be able to buy again or negotiate with the lender? This post gives answers.

Before Bankruptcy
Usually Chapter 13 bankruptcy is best for keeping all your assets. The only negative is you have to pay back your debts; you cannot discharge one dollar in Chapter 13. The advantage is, say you have an expensive home you’ve been paying on for 20 years. Do you really want to lose it to pay back debt? And if you have a job, your chances are higher for keeping it with a new debt repayment plan

That said, if you want to keep your home before bankruptcy, no matter whether it’s Chapter 7 or Chapter 13, you need to 1) hire an experienced attorney and 2) make the loan current.

Why hire an attorney?
An attorney is your very best option for keeping your home. No matter your housing market, no matter how far behind you are in payments, an attorney is invaluable.

Why make the loan current?
Really, this is the most important tip of the entire post. According to law, if you get your loan payment current–meaning you pay all delinquent amounts–the lender cannot take your home. If you’re going to file Chapter 7 bankruptcy, you can keep your home if you negotiate with the lender or if  you work with the trustee. For example, if you also wanted to keep your car, you could pay the amount you owe to the trustee so you can avoid losing it.

Is bankruptcy the best option?
Certainly bankruptcy has advantages and disadvantages. For one, if you wait to long to  file, you may lose your home in foreclosure before you can act. But since Chapter 13 bankruptcy can save your home, it’s often the best option.

Will your credit be ruined?
If your home is foreclosed upon, to put it simply, that’s pretty much the worst thing which can happen to your credit.  You will have a lot of trouble getting financing in the future. However, if you avoid foreclosure, bankruptcy looks far better than foreclosure after you file. While foreclosures are as common as bankruptcies, bankruptcy doesn’t necessarily ruin your credit. If you had to choose between losing everything and ruining your creditor, or keeping much and paying back or discharging debts, what would you do?

What’s the first step?
These tips were meant to show you how to successfully save your home from foreclosure. Before you go into foreclosure, consider bankruptcy. During, stay current on payments. And after, rebuild your credit.

The first step would be to hire an expert who can assess your situation. You may want to file Chapter 7, you may prefer Chapter 13, or perhaps there are alternatives. An experienced bankruptcy attorney can help in numerous ways; just hire the right one.

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How To Negotiate Rates with New York Bankruptcy Lawyers

Monday, May 10th, 2010

Can you reduce you attorney fees? How much does bankruptcy really cost if you hire an attorney?

Lawyer prices vary in terms of time involved, how experienced the lawyer is, how fast the lawyer is, if you are hiring a big name firm or a smaller firm, and availability and time.

How Experienced
Experience proves many things, and it does often require a higher fee. On the other hand, you may get a quote much less from an experienced bankruptcy attorney in New York than one who’s less experienced. It may take longer for the latter lawyer to get to your case, for example. Also, sometimes experienced bankruptcy attorneys can do things faster, or do most of the work in a shorter time frame.

How Fast
If one lawyer is inundated with more cases than another, he or she may be able to get your case through much faster. Of course, the courts don’t revolve around this, but you may get a good deal. On the other hand, spending more time on the case may be worthwhile. There may be details in the case overlooked in the rush to get you a lower fee in a shorter time frame. This is subjective, but it bears consideration.

How Big
If you hire a lawyer from the State Bar of New York directory who has a small office, or if you hire a New York firm with dozens of attorneys, you may wonder if that effects price. Once again, it can be subjective. You may get a lower fee from the big firm, with the promise you’re case will be handled by a highly experienced lawyer but completed by a less experienced one. This is often a trick to get you to sign up. In many cases, the bankruptcy will take longer.

If you choose a smaller firm or a single bankruptcy lawyer, they may charge you more, but spend more time on your case. Or they could have openings and charge you less. It varies, but it shows that you should work beyond just referrals and lawyer websites. You should query several experienced New York bankruptcy attorneys in your area.

Can you reduce the price?
Yes, some lawyer fees are negotiable. It’s again dependent on the lawyer. In some cases, the fee will be non-negotiable, being the same fee everyone gets that’s posted online and in the contract. But really, if you’re filing bankruptcy an experienced attorney who wants to help can negotiate 1) how you pay and 2) how much. Some may not be willing to negotiate fees, but will negotiate how you pay them over time. Some might be willing to lower your fee if they see you cannot afford them and will have to hire someone else.

Where to Start
The State Bar of New York and New York law firms are online, and showcase many options. Be thorough, querying as many as you can. And look for the right fit.

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5 Reasons You Should Hire a Lawyer Before Filing Bankruptcy

Friday, May 7th, 2010

Whether you’ve lost a home or lost a job, whether you have immense medical bills or a mortgage you’re falling behind on, bankruptcy can help. It has many advantages over 1) doing nothing and 2) trying to save your home on your own through creditors.

What does that mean? Say for example you are falling behind on mortgage payments; you decide to do nothing, hoping it will work itself out. This isn’t a trial case, as by doing nothing you risk losing everything. Since bankruptcy can be complex, and since it has many advantages, you should consider hiring a lawyer prior to making any decisions.

If you try to save your own home by yourself, you might run into difficulty navigating laws. Let’s use these as the first reasons you should hire a lawyer before filing bankruptcy.

Do Nothing or Do Something and Benefit
You can avoid filing bankruptcy, of course. There are alternatives to bankruptcy, but this post isn’t about negotiating with creditors; it’s about getting a fresh start financially. If you do nothing sometimes it will work out. Your reasons for doing nothing can be many, but the disadvantages are too great. If you do nothing, you could lose your home to the lender and your car to the repo-man. If you hire a lawyer immediately, you actually save time and money.

Saving Your Home from Foreclosure
Did you know that if you way too long to file for bankruptcy, you could lose your home? If you fall behind in payments you should talk with a lawyer. And note Chapter 7 bankruptcy, which will absolve you of the debt, will often force your trustee to sell the home to pay back your debts. Chapter 13 bankruptcy is the alternative. An experienced lawyer can walk  you through the steps and help you save your home with Chapter 13.

Before Filing Chapter 13 Bankruptcy
Before you file bankruptcy, you should consider all your options. Chapter 13 bankruptcy is not for everyone. It does have distinct advantages — saving your assets from foreclosure the biggest. An experienced lawyer can save all your assets if you hire him/her before it’s too late. They can advise you on how to navigate the laws.

When Chapter 7 Bankruptcy Works
Chapter 7 bankruptcy has advantages too. Before filing, you should be aware of laws such as exempt and nonexempt properties. Some property you can keep, some property you might lose. But what can you save? An experienced bankruptcy lawyer can explain and help on how to save the most property and how to eliminate the most debt.

Peace of Mind
It may sound minor, but peace of mind may be the best benefit of hiring a lawyer before you go into bankruptcy proceedings. It’s not impossible to do everything yourself, but in most situations hiring a lawyer saves you time, money, and headaches.

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How Foreclosure Works and What To Do

Wednesday, May 5th, 2010

Let’s get right to the problem: how do you handle foreclosure? You’ve fallen behind on your house payments. Now, before you do anything, you need to consider your options. Technically, Chapter 7 bankruptcy will not save your home–you lose it in the liquidation. If you act quickly enough, you can file Chapter 13 bankruptcy in order to save your home.

What really is foreclosure?
Foreclosure means you’ve fallen behind in mortgage payments and your lender decides to sell your home. If you do nothing, you will lose the home. If you act before the lender decides to initiate foreclosure proceedings, you can in fact protect your home with what’s called an “automatic stay,” which stops the foreclosure from going through.

How can Chapter 13 help?
Chapter 7 is a liquidation, Chapter 13 a debt repayment plan. You pay nothing, in most cases, with Chapter 7 as your assets are sold. Chapter 13 means you still owe money, but your payments are restructured over 3-5 years. That means if you can stay current with the Chapter 13 repayment plan, you can keep your home.

Foreclosure Process
Here’s what happens if you fail to act quickly enough. This is what could happen if you wait too long to file, or if you do absolutely nothing.

First, you fall behind in mortgage payments. How soon is this? It varies in different states, but technically foreclosure can begin after one missed payment. However, few lenders act that quickly; the majority wait until you fall far behind.

Second, depending on the state, the lender will usually send a notice explaining their intent to foreclose your property. This is a ten day notice, and by this time it may be too late to file for Chapter 13 to save the home.

The lender’s next step is to file a lawsuit with the courts; if you can catch up with payments, this won’t happen. You have a chance to fight this case in court after being given a summons, by responding within a few weeks. This is your opportunity to prove to the judge that something is wrong with this process. At this point, you might consider hiring an attorney to help you. The best choice would clearly be to hire a bankruptcy attorney before this process is initiated.

The next steps are pretty straightforward: you are told of intent to sell if the courts don’t stop it, an auction is held on your home, and you are either evicted or allowed to stay.

That last step, where you are either evicted or allowed to stay, depends on the state. Many states allow you to stay in the home until you are given an official eviction notice.

Steps to Avoid Foreclosure
These laws can be navigated if you take immediate action. Since the time involved depends on the lender, the court, and the market for your home, sometimes you have more time and sometimes you have little if any. There are few ways to gauge how this will work in terms of time. So upon falling behind in payments, if it’s clear you won’t be able to catch up, contact a bankruptcy attorney. The good news is, with Chapter 13 filing, you can save your home.

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What Property is Exempt in Bankruptcy

Monday, May 3rd, 2010

With the Bankruptcy Code, state laws on exemptions are more uniform than ever before. That means we can go over the basics on exempt and nonexempt property after filing bankruptcy.

What is exempt property?
Exempt property is assets you can keep. Nonexempt property you can’t keep. That means if you own a home and it’s considered exempt, you can keep it. If you have a property valued too high, and you’re filing Chapter 7 bankruptcy, that may be considered nonexempt and you cannot keep it.

What forms of bankruptcy use exemptions?
Chapter 7 bankruptcy, the most common for many years but somewhat less common currently, is where exempt and nonexempt assets are considered. Why? Chapter 7 is a liquidation–a trustee will sell your nonexempt assets in order to pay debtors. Chapter 13 bankruptcy is different.

If major property is considered nonexempt, what next?
If you have a home and it’s considered  to be worth too much, and if you have a stable income coming in, you may consider filing under Chapter 13 bankruptcy. Chapter 13 is not a liquidation–it’s a repayment plan spread over 3-5 years. You are to pay bills on time, but you have extended periods to pay them back. In the case of having an expensive home or car you fear losing because of nonexemption, Chapter 13 is a good option. You pay back all debts, but you potentially can keep all your assets.

What property is exempt?
The Bankruptcy Code changes how states consider exemptions. Some states are still, however, very different than others. It depends on if the laws were accepted or not, as some states opted to follow Bankruptcy Code on exemptions and some have not. If you’re home is valued too much, you may lose it in Chapter 7 bankruptcy. In some cases, you might be able to keep it while still discharging debts. In this case, you should hire an experienced lawyer.

What you need to know for your home and car is what equity is left.

Questions for Your Bankruptcy Lawyer
What assets can you keep? That’s the big question. Clearly if you invested a lot of money into a home, if you have a valuable car, and have other valuable assets you fear losing, a good option is to hire an experienced bankruptcy lawyer. He/she can explain your options, how state laws work, and what form of personal bankruptcy you might file. Be thorough with your questions about what property is exempt and nonexempt. There are no bad questions when it comes to bankruptcy law.

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Bankruptcy Eligibility for Phoenix Arizona Residents

Friday, April 30th, 2010

If you are are a Phoenix resident interested in filing personal bankruptcy via either Chapter 7 or Chapter 13, you should first find out if you’re eligible. Once you figure out eligibility, you can take the next important steps in successfully filing and getting a fresh start. This post shows you how, specifically for Phoenix, Arizona residents.

The median income for all states is the basis for Chapter 7 bankruptcy eligibility. With changes in bankruptcy, if you make more than the median income you often have to file under chapter 13 bankruptcy.

Chapter 13 bankruptcy does have clear advantages, but first let’s go over eligibility for Phoenix Chapter 7 bankruptcy.

Eligibility for Chapter 7
As stated, eligibility is different in all 50 states. For Phoenix and all residents of Arizona, here are the numbers.

Phoenix Family of 1, Annual Income Limit $43,397
Phoenix Family of 2, Annual Income Limit $57,620
Phoenix Family of 3, Annual Income of 62,002
Phoenix Family of 4, Annual Income of $71,867
And it increases for each additional family member

Why File Chapter 7 Bankruptcy in Phoenix Arizona?
Chapter 7 bankruptcy has many advantages for Phoenix residents. The median income is about average in Arizona to all other states, noting a lower number than in past years because of the rise in unemployment.

Unemployment is one of the leading reasons to file bankruptcy. If you’ve lost your job, have a lot of assets and little income, Chapter 7 bankruptcy may be good. It can clear credit debt for one, and can be finished in a matter of months.

There are of course other reasons to file for bankruptcy, beyond simply unemployment and credit card debt. You may have high medical bills, for example. Or you may be in danger of losing all your assets and want to cut your losses and eliminate debt. Chapter 7 bankruptcy can do this. Chapter 13 bankruptcy is also an option.

How Can Chapter 13 Bankruptcy Help Phoenix Arizona Residents?
Chapter 13 bankruptcy is very different, but more important now than ever for Arizona residents and residents in other states. Because of the median income law where if you make too much you are not eligible, Chapter 7 is off the table for many. This isn’t necessarily bad.

For one, Chapter 7 bankruptcy means you can lose major nonexempt assets, such as your home and car. If you are still employed,  have an income, but fear foreclosure or the repo-man, you might want to talk to a bankruptcy attorney about Chapter 13 bankruptcy.

There are some eligibility laws for Chapter 13 bankruptcy too, which includes Arizona and all other states. You, as an individual or a family, must have less than $336,900 in unsecured debt such as credit cards, medical debts, and taxes. You must also have less than $1,010,650 in secured debt such as mortgages and car loans. Most people fit into this criteria.

What’s the First Step for Phoenix Arizona Bankruptcy?
The first step is to hire a professional Phoenix bankruptcy attorney who can help you figure out 1) what you’re eligible for and 2) what’s best for you.

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Tips Before You File Chapter 7 Bankruptcy in New York

Monday, April 26th, 2010

Want to file Chapter 7 bankruptcy in New York but have enough questions to fill a book? Well, there are some ground rules for filing New York Chapter 7  you need to be aware of, and tips you need to successfully discharge or pay back debt.

Are you eligible for bankruptcy in New York?
The two main forms of personal bankruptcy, Chapter 7 and Chapter 13 bankruptcy, have clear guidelines for whose eligible to file. In most all cases, you can file Chapter 13. It used to be the same with Chapter 7. With new bankruptcy code, you must now be at the median income or below in your state if you want to file for Chapter 7 bankruptcy.

For example, if you’re a single resident in New York, no matter what assets you have, but make less than  $46, 523, you can file under Chapter 7 bankruptcy in New York. The larger your family, the larger the median income limit. If you make less than $57,000 and your family size is 2, you can file bankruptcy. It goes up from there, as in  other states.

Sometimes you may not be eligible for Chapter 13 bankruptcy. If you have more than $336,900 in unsecured debt, you cannot file. If you have more than $1,010,650 in secured debt, you are not eligible.     However,if you have less than those numbers in unsecured and secured debt, as most do, you are eligible for Chapter 13.

To be sure these numbers are up to date, or for different states, you can find out the median income for your state, along with current bankruptcy code for secured and unsecured debt.

What bankruptcy is better for New York bankruptcy filers?
It depends on your current income status, mainly. What’s best for you can be helped with a professional  bankruptcy attorney. Here are some tips:

-If you have a lot of credit card debt, only Chapter 7 bankruptcy can eliminate it
-If you fear your home will go into foreclosure, Chapter 13 bankruptcy can delay it several years and help you keep it
-Chapter 7 bankruptcy does not eliminate tax or alimony debts
-Chapter 13 bankruptcy only buys you time: you still need money

How do you hire a bankruptcy attorney in New York?
Hiring a bankruptcy attorney comes down to many factors, including: experience, rates, and workload.

If your attorney has little experience in bankruptcy law, even if he or she is a friend, you should hire a professional. The more experience does not always mean more rates either, but some attorneys charge you higher than others. Lastly, you don’t want to hire a New York attorney who’s inundated with clients; good for him or her, but can slow the process for you.

Will there be more bankruptcy changes?
There will be more bankruptcy changes at the state level, likely every year as the median income changes. For New York residents, there are alternatives to bankruptcy, but sometimes bankruptcy is your best option. If you’re unsure, consult with a professional.

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What Can You Keep After Filing Bankruptcy?

Friday, April 23rd, 2010

The big question bankruptcy attorneys are asked is: What can I keep after filing bankruptcy? The laws can be complex when it comes to exempt and nonexempt property. So where do you start?

Exempt property is property you can keep. Technically, your home, car, and many possessions can be exempt if you are current on them. This depends on what form of personal bankruptcy you file–Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Nonexempt assets cannot be kept in most cases unless you are filing Chapter 13 bankruptcy, where you have the opportunity to pay back assets over 3-5 years. Nonexempt assets can vary in value, but if you have few valuable assets, and are current on mortgage and car payments, you can often keep the majority of them.

For bankruptcy filers, hiring a professional bankruptcy attorney is simply a must.

What if you file Chapter 7 bankruptcy?
Chapter 7 bankruptcy is a liquidation proceeding where you cancel the majority of your debts, mainly credit card debts. You cannot claim mortgage, tax, alimony, college tuition, and many other forms of debt. You can discharge credit card debt, which is mainly why so many want to use Chapter 7 bankruptcy. Chapter 7 bankruptcy typically only lasts a few months; but bear in mind, any bankruptcy will stay on your record for some time, currently 10 years.

What if you file Chapter 13 bankruptcy?
It’s often noted that Chapter 7 filers are being forced to file Chapter 13. Why are fewer being allowed to file Chapter 7 bankruptcy? It’s mainly because people with higher incomes are filing. If you have enough money to pay expenses, but not enough to cover bills, Chapter 13 bankruptcy can buy you time to pay back bills. No possession–such as your home and car–will be taken if you stay current on them .Also, you get 3-5 years to pay back debts. If you fear home foreclosure, Chapter 13 bankruptcy can save it. It’s important to act early before the foreclosure goes into effect. If you are making enough money to pay most bills, but your house payments are behind, you should immediately inquire with a bankruptcy attorney as to your options.

What money can you keep after filing bankruptcy?
How much money you can have is another important question. If your home and car are valued too high, you may lose them with Chapter 7 bankruptcy. If your car equity is too much, these can be considered nonexempt debts. If on the other hand you have too much money in your account and you have a car or home, these could be taken. These laws can be complex, and  some state laws actually come into play concerning the value of exempt and nonexempt assets. If you’re unsure, a quick consultation with a good bankruptcy attorney can help.

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Tips on Stopping Creditor Harassment Before Bankruptcy

Wednesday, April 21st, 2010

By law, a creditor is only allowed to contact you in specific circumstances. If they’re calling you day and night at insane hours, you can sue. You should contact an attorney immediately.

But when is the time creditors “can” call you?
The times are between 8 AM and 9 PM, Monday-Saturday. If they do not follow these laws, you have grounds for a case against them (we’ll go over that more).

If creditors call you during the legal times, you still have rights under Federal and State laws. A creditor  can rarely if ever contact you at work. If they contact your neighbors or family looking for you, you also have a right to stop it.

How can you stop creditor harassment?
If you owe money, creditors have a legal right to contact you. However, what you can do is write a letter stating you want the contacts to stop; by law the creditors have to stop. What do you say in the letter?  You simply make it plain you want no more contact with the creditor anywhere, or to friends and family.

What if a creditor threatens you?
Unfortunately, this happens often enough to be noted, as creditors sometimes are known to threaten debtors. If a creditor threatens to hurt you, garnish your wages, or threaten you in any other way, it’s illegal. A creditor, for one, can never threaten to garnish your wages, even if they plan on doing so. Of course, it’s obvious threatening to hurt you is a major crime as well.

What if a creditor sends you a letter?
There are laws designed for letters from creditors too. The letter must state: you have 30 days to dispute the amount or the debt will be considered valid, how much the debt is, the name you owe money to, and that anything you say can be used against you. This is much like a Miranda, and just as in criminal law, there are rules on what creditors can and should say.

How can you sue a creditor?
The good news is, creditors are sued successfully on a regular basis. The bad news  is, the most you can collect from the creditor is $1,000. However, it does make a big statement. You still owe the money, but the creditor may have learned a valuable lesson.

What are your options if they follow all laws?
You have the right to 1) send them a letter asking for no more contact and 2) a lawyer to take any future creditor calls. If you file bankruptcy and hire a bankruptcy attorney, all future calls from the creditor should go directly to your attorney. This stops creditor harassment. There are alternatives to bankruptcy, but if you’re in over your head with debt, Chapter 7 and Chapter 13 bankruptcy are reasonable options for eliminating or managing debt.

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