Sacramento Bankruptcy Lawyers Blog

A Sacramento bankruptcy lawyer discuess Chapter 13 with regard to plan terms...

In one of the most important bankruptcy cases of 2008 the 9th U.S. Circuit Court of Appeals has ruled that the strict language of the 2005 bankruptcy reform law allows higher-income debtors to limit the amount of money and time for repayment of debts, though lower-income debtors do not share the same benefit.

Also, the 9th Circuit held that bankruptcy judges must stick to the terms of the 2005 bankruptcy reform law even though it treats higher-income debtors better than lower-income debtors when it comes to calculating income available to pay creditors in Chapter 13 reorganizations.

The decision provides a potential windfall for what the law defines as "above-median income debtors" because repayment plans can be created to pay creditors smaller amounts over shorter periods of time. Debtors in the "below-median income" classification must still make "reasonable" repayments for a minimum of three years.

The ruling allows the repayments to be for periods shorter than five years, meaning that if a debtor received a windfall after the shortened repayment period, the creditor would have no recourse to collect.

If the Chapter 13 debtor(s) projected disposable income comes out to be negative then there is no applicable commitment period or plan term. Hence a debtor with a 0 or negative disposable income is free to propose any plan term.

A negative disposable income is usually achieved by having large monthly liabilities such as taxes, car payments, child care, 401k loan repayments, 401k deductions and of course the $3,500 1st mortgage payment.

As one bankruptcy judge remarked “This creates an incentive for a higher- income debtor ‘to fiddle with his expenses and income just before he presents his creditor plan for confirmation, [s]o long as he can push up his expenses and delay receipt of income so as to show no 'disposable income' at the time of plan confirmation, he can propose such a short period of time that he can save any postponed income from the creditors' clutches."

This current law makes it even more advantageous to file Chapter 13. Many Chapter 13s are filed in order to pay $0 to the 2nd lien holder on a house while treating the balance as credit card type debt and getting it discharged. No longer will some above median Chapter 13 filers have to propose a 60 month Chapter 13. If after careful planning with an experienced attorney a Chapter 13 filer may be able to show the means to repay $0 and therefore propose a plan that is substantially shorter than 60 months. I would love to hear from attorneys in other 9th Circuit jurisdictions about their trials or sucessess in incorporating In re Kagenveama in their Chapter 13 plans.

Its been this author’s experience that Sacramento trustees permit at least 36 month plan terms for Chapter 13 filers with negative disposable income. One trustee has made it clear that he will object to a less than 36 month plan.

The dispute began when Chapter 13 trustee Edward Maney of Arizona challenged a repayment plan by Kagenveama when her bankruptcy petition showed she had an income of $74,000 a year and $1,500 per month in disposable income to dedicate to paying creditors. But as an above-median-income debtor, she was required to recalculate her living expenses under Section 1324(b)(3), leaving her with zero in disposable income.

She volunteered to repay $1,000 per month for three years, rather than the typical five-year commitment period. The trustee appealed, and the 9th Circuit agreed she could limit her repayment to three years at the lower amount, even though her income projections realistically showed a greater ability to pay.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento Bankruptcy Attorney explains cross
collateralization

People like credit unions because they fit within the fabric of the community and make you feel warm and welcome when you make a visit in contrast to banks. Another important contrast with banks are cross collateralization clauses found in credit union automobile contracts.

Unfortunately these clauses are in the small print in your automobile contracts that nobody bothers to read.

Cross collateralization is when collateral such as a car is used for collateral for all other loans with the lender. So if a credit union member has a car loan and a credit card balance then, by virtue of the cross collateralization clause found in the automobile contract, the car loan is not paid off until both the car loan and the credit card balance is paid off.

This means that when people with car loan and loans with a credit union file for Chapter 7 bankruptcy and decide to reaffirm the car they are reaffirming not only the payoff amount for the car loan but the credit card balances with the credit union. This may come as a surprise to some people who think their credit cards have been discharged.

Those only paying the car loan but not the credit cards issued from the same credit union are subject to having the car repossessed.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A sacramento bankruptcy lawyers discusses Chapter 13 bankruptcy

Those deriving income for their Chapter 13 from either a sole proprietorship or partnership may file a Chapter 13 bankruptcy. Like all other Chapter 13 filers they will have to take the means test i.e. Form 22C. The means test requires a calculation of the Current Monthly Income (CMI) which is the average of the past six months of gross income prior to the month you file. A CMI above the median income corresponding the number of members in your household requires a five year plan. A CMI less than the median income corresponding the number of members in your household requires a three year plan.

Instead of submitting pay statements as wage earners do, business owners filing Chapter 13s usually must submit a profit and loss statement detailing their gross revenue, cost of goods, and business expenses. These deductions are commonly called ordinary and necessary business expenses.

If ordinary and necessary business expenses are deducted from gross business receipts the end result is a CMI low enough to qualify for a three year Chapter 13. The law however is that the CMI must first be calculated then the ordinary and necessary business expenses are backed out after along with the other deductions allowed under Form 22C. Since business owners typically bring in enough revenue that exceeds the median income threshold corresponding to the number of members in their household they must file a five year Chapter 13. This facially irrelevant accounting requirement has the disproportionate impact of adding an additional 24 months on a Chapter 13 funded by a business.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney discusses HAMP

The Home Affordable Modification Program (HAMP) is designed to help financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. The program provides clear loan modification guidelines that the entire mortgage industry can use.

One of the primary steps towards loan modification under the HAMP is the trial loan trial period plan under the HAMP.

Borrowers who file bankruptcy during the trial period, but who make all of the required payments in a timely fashion and are otherwise in compliance with the Trial Period Plan remain eligible for a modification. The servicer and its bankruptcy counsel must work with the borrower and the borrower's bankruptcy counsel to obtain any required court approvals of the modification.

A borrower actively involved in a bankruptcy proceeding prior to being placed in the HAMP is eligible for the HAMP at the Servicer’s or Lender’s discretion. If a servicer provides an offer under the HAMP to a borrower that is involved in an active bankruptcy case, the servicer must work with the borrower or borrower’s counsel to obtain all necessary approvals from the bankruptcy court. The terms of the trial loan period will remain in effect after filing a Chapter 13 bankruptcy.

Many in Chapter 13 have found out the hard way that the agreement they had with their lender was rescinded as result of their filing for bankruptcy. Such rescission requires that the plan be amended in order to cure the amount of mortgage delinquency.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento Bankruptcy Attorney speaks on Chapter 13 Bankruptcy

If a Chapter 13 filer can’t meet all plan payments due to hardship then a request for a hardship discharge can be made after the Chapter 13 plan is approved provided that three conditions are met: 1) the debtor’s failure to complete payments under the plan is due to circumstances “for which the debtor should not justly be held accountable”; 2) the debtor has satisfied the best interests of creditors test and 3) modification of the plan is not practicable.

A hardship discharge is granted for those who have found themselves in a deteriorating financial condition something more than just a temporary hardship that is not normal. For example where a Chapter 13 filer experiences a job loss due to an accident and disability compensation payments are not enough to pay living expenses and the Chapter 13 plan.

Once granted by the court, all creditors and parties in interest have 30 days to object to the discharge of debts.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

An "FYI" from a Sacramento Bankruptcy Attorney: Your Bankruptcy Can And Might Be Audited by the US Trustee...

Individuals who file for relief under Chapter 7 or Chapter 13 are subject to audits under the authority of the US Trustee. At least one out of 250 Chapter 7 and Chapter 13 cases will be randomly selected for audit. In addition, other cases will be selected for audit.

You are required to provide some additional information and records and cooperate with the audit firm hired by the US Trustee and provide this information promptly. There is no cost to you for the audit, except for the cost of making copies of documents needed for the audit. The information that you provide in connection with your case is subject to examination by the Attorney General.

The audit firm will file a report containing the results of the audit. A copy of the report will be provided to your attorney. If the audit firm finds material misstatements of income, expenses, or assets the Clerk of the Bankruptcy Court will notify your creditors.

Failure to cooperate with the audit firm or failure to reasonably explain to the bankruptcy court any material misstatements contained in the audit firm's report may result in the dismissal of your case or in the denial or revocation of your discharge, and, possibly in referral of the matter to the US Attorney for criminal investigation.

Audits are serious but if you’ve chosen the right attorney he’ll 1) have all the required documents, 2) submit a bankruptcy petition that’s consistent with your assets and liabilities, 3) list your income correctly, and 4) know what to expect because he or she had been through it before.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney answers Why Must I Disclose To The Trustee Or Any Interested Creditor Whether I’ve Transferred Property In The Past 2 Years*?

A credit card creditor takes the risk that a borrower will have no property to satisfy its claim. But if a borrower does have valuables and attempts to conceal or illegitimately dispose of it then the law gives the out of luck creditor some ability to retrieve the property so that it can be used to satisfy the debt owed.

A creditor can avoid or cancel the transfer property because the law sees the transfer as an abuse having the effect of defeating the justifiable expectations of the creditor.

There are two grounds for avoidance of the transfer: actual fraud and constructive fraud.

Actual Fraud
Over the centuries courts of law have identified typical patterns of behavior that create a suspicion of fraud i.e. badges of fraud. Some badges of fraud include transfers of property to a friend, a business insider or someone with close family connections; concealment of the transfer just before litigation or in the face of impending collection activity; or the transfer of property was made just before a significant amount of debt was incurred.

Constructive Fraud
Where actual fraud goes to the intent to conceal property, constructive fraud is found where facts give rise to an unfair diminishment of the person’s estate and should not be allowed. Here there is no inquiry into the transferor’s state of mind. For constructive fraud to be established the following elements are required: 1) the transferor did not receive reasonably equivalent value in exchange for the transfer, and 2) the transferor was in a shaky financial condition at the time of the transfer. This ‘shaky financial condition’ is established in one of three ways:

1.Transferor was involved in or was about to engage in a business venture and the transfer left the debt holder with insufficient capital for the venture.

2.The transferor was about to incur debts wit the actual intention of not paying them when due.

3.The transferor was insolvent i.e. expenses exceeded income.

If you feel you may have engaged in these transactions in the past whether intentional or not talk to an experienced bankruptcy attorney.

*Some trustees will go back as far as four years.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

The US Trustee (UST) is an officer of the Justice Department. There are currently 21 USTs for the nation. Their territories often overlap several judicial districts. USTs are appointed by the Attorney General to five year terms.

The primary roles of the UST are to monitor the progress of the Chapter 11 cases (especially those where there is little creditor involvement) and appoint and supervise case trustees when the law requires a trustee or the court has ordered a trustee to be appointed. The UST is also charged with monitoring employment applications of professionals, fee applications, and the activities of the creditors' committees. On rare occasions, the UST will act as the case trustee.

With the exception of their role as supervisor of trustees, the role of the UST is essentially one of bringing matters before the court, just as any other litigant. Thus, the UST may object to a fee application as being excessive or move that a Chapter 11 case be converted because the debtor lacks the ability to reorganize. It remains the function of the court to rule on such matters. Although there is some authority to the contrary, the UST probably has the power to appeal court rulings.

As an official of the executive branch of government, the UST is not part of the rest of the bankruptcy court system which as an adjunct of the district court is part of the judicial branch. Many bankruptcy judges have resisted the idea of giving such a large role in the judicial process to a Justice Department official. Since most of the UST’s powers are observatory with final decisions resting with the judges, the effectiveness to a large degree depends on the relationship with the judges. In districts where the courts and the UST have an exceptionally good relationship the UST may prevail so often that litigants will almost automatically accede to the USTs suggestions or directions, giving the UST great practical ability in bankruptcy cases. In districts where the courts and the UST have a strained relationship, the UST may prevail so infrequently that it is ignored.

A Sacramento bankruptcy lawyer clarifies some reasons why your ongoing monthly car or mortgage payments are paid by your Chapter 13 Trustee instead of you...

The Bankruptcy Code provides that any default incurred prepetition by the debtor may be
cured through a chapter 13 plan. Anytime a Chapter 13 is filed the prepetition delinquency on a car or home must be paid by the trustee pursuant to your Chapter 13 plan. Whether the Chapter 13 filer or trustee pays the ongoing post petition payment to the lender depends on where you reside. It is this requirement that can add trustee fees at tune of a couple of hundred dollars a month to your Chapter 13 plan.

Bankruptcy courts in Sacramento, Redding, and Fresno require not only the pre petition arrears to be paid by the trustee but also the ongoing monthly payments because as one current judge remarked “anytime you depend on debtors to make payments directly to creditors you will greatly increase the amount of court time needed to settle payment disputes.” These disputes are generally prompted by the lender filing a request to pull the car or home out of bankruptcy protection because payments are late.

The reasoning of paying the ongoing payment to the trustee as part of the plan is that the trustee will know whether the payments have been made and will properly credit the filer’s balance on that property. Also if the filer is unable to make the payment and hence the plan payment the trustee must apply for dismissal of the Chapter 13 case thus allowing the creditor to assert the rights it had prior to the bankruptcy. By reducing the amount of court involvement in the disputes between creditors and debtors in court the general burden on taxpayers becomes less.

If the debtor fails to pay the Trustee any or all of the amount needed to satisfy the chapter 13 plan, the Trustee will immediately know of any default to the mortgage lender and if the problem is not promptly resolved, the standard chapter 13 plan provisions allow the Trustee to file a motion to dismiss the case. This means that the creditor can obtain relief without the expense of hiring an attorney to file a motion to lift the automatic stay. It also gives both the filer and the mortgage lender an advantage in that they will have access to the Trustee’s records electronically, which will give it access to such information as to when, and in what amounts, payments have been made.

The most glaring disadvantage to paying the trustee the monthly payment due to a lender is the fee a filer must pay the trustee. In order support operations the trustee generally charges $0.10 cents for every dollar paid to a lender. So if you’re behind on your house and are filing a Chapter 13 plan to catch up then not only do you pay say a $1500 mortgage payment to your lender you are paying $150 extra for the trustee to basically write the lender a check for that $150. In essence your monthly mortgage payment exclusive the cure amount becomes $1650. If you were struggling with just the monthly payment and cannot pay the extra $150 the court’s response is generally a declaration that your plan is not feasible.

While there are some concrete disadvantages to debtors paying the mortgage through a chapter 13 plan, there are also very concrete advantages to such a plan. The debtor avoids many of the typical problems with the mortgage lender in a chapter 13 case (e.g., payment history disputes, delay of contact with mortgage lenders and or their attorneys, additional late fees, and mortgage lender attorney fees). If the debtor’s chapter 13 plan allows for Trustee-directed mortgage payments, the information about when and how much of a payment has been made will be accessible by the creditors through electronic means. The debtor is also afforded with repayment opportunities in one single plan payment

An additional advantage to debtors when the mortgage payments are processed through the plan is that, at the time of discharge, an order can be entered in the plan to deem the mortgage current as of the date of discharge and, therefore, no additional costs, fees, or charges prior to that date may be levied against the debtor. Anecdotal evidence indicates this process has been utilized successfully by Standing Trustees in various parts of the country.

The Trustee will be required to handle situations in which the debtor makes an incomplete payment. In such a situation, the Trustee should refrain from sending a partial payment to the mortgage lender who may be confused by such a payment. Instead, the Trustee should hold the partial payments for disbursements, and contact the debtor’s attorney to have the debtor satisfy the scheduled payment amount. By doing this, the Trustee avoids a situation wherein either the filer is dismissed or the mortgage lender keeps the insufficient payment, but then files for relief from the automatic stay.

The Trustee is responsible for maintaining information on the fluctuating increases or decreases of the applicable interest rate, either through notice from debtor or lender. Placing a staff member in charge of monitoring the rates for mortgages is required. The Trustee must then make certain the debtor is aware of fluctuating increases or decreases in interest rate and adjusts the monthly payments accordingly.

If there is question about whether a mortgage payment has or has not been paid, the court will be able to rely on the Trustee to present thorough records detailing payment transaction information.

By removing the responsibility for post-petition mortgage installments from the debtors and placing it on the chapter 13 Trustee, the percentage of successful completion of chapter 13 plans will likely increase. The likelihood of default on the home mortgage would decrease and the amount available to distribute to all the creditors would be potentially increased. Even though the amount of work for the Trustee would also increase, the purpose of the bankruptcy law has been to serve debtors by aiding them in regaining financial control and financial security.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney talks on Means Test Thresholds For All Cases Filed After April 1, 2010

Line 50, on Form 22A, commonly known as the Means Test, is your Disposable Monthly Income. This test determines whether you qualify for Chapter 7 or not. People not qualifying either do not file at all or file Chapter 13.

The first thing I determine is whether your debts are primarily consumer debts. So if more than ½ of your debts are related to your business (if you have one) then there’s no need to fill out Form B22A that is the means test.

Most people filing have debts that are primarily consumer debts which calls for your calculation of your gross income for the six months preceding and not counting the month you file. Those year to date figures listed on your pay statements are useful. If you’ve earned income from any other job or any other source for that matter then it’s income and has to be include. Talk to an attorney about any income derived from the Social Security Act.

After deriving your six month average income and then taking all the allowable deductions under Form 22A the monthly income for 5 years is less than $7025.00 or $117.08 per month Chapter 7 is not presumptively barred due to your income. If the monthly income based on the past 6 months of earnings before the month of filing is $11,725 or more (alternatively $195.42/month) then a Chapter 7 filing is income barred.

Disposable income more than $7025 and less than $11,725 (more than $117.08 and less than $195.42) is then compared to 25% of the total amount of your debts listed on Schedule F (where your credit cards, loan obligations, medical debt, and repo debt are listed). A disposable income that can pay 25% of your total Schedule F debt or more over 5 years will prevent a Chapter 7 filer from getting a discharge. If for example Line 50 comes out to $150.00 or $9000 over 5 years and all the debts on Schedule F total less than $36,000 then your Chapter 7 filing is presumptively income barred.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankrutpcy attorney comments on the Chapter 7 bankruptcy of White House Party Crashers

From my Sacramento bankruptcy firm, I recently read a little article about the couple that crashed President Obama's first official state dinner. It details the Chapter 7 filing and assorted debt of Mr. and Mrs. Salahi, which is said to include over $80,000 in credit card debt. Its a good read and a small insight into what I see both in our Northern Califormnia bankruptcy practice and what I see happening nationwide; business is slow, debt is high and bankruptcy filings are up. We all just don't try to gate crash the white house to get a reality show to help pay off those debts. Actually that brings up a question. If they filed for a Chapter 7 bankruptcy and presumably those debts will be discharged then why do they need the reality show money so bad? They should be basically debt free....

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankrutptcy attorney explains the projected disposable income test for chapter 13 bankruptcy...

The projected disposable income for someone filing Chapter 13 bankruptcy is measured by a standardized test that determines your means to repay the creditors over 5 years. If the gross income earned over the 6 months (annualized) before you file is greater than the median income in the state you are filing in then the means test is required.

The reason for the Disposable Income Test is to reduce the amount of discretion that courts have in determining a filer’s disposable income and press the filer into making a greater effort (or sacrifice) to repay a portion or all of his/her debts over 5 years. Some filers have a negative disposable income and others show some ability to repay debts over 5 years.

If the result of the means test is a positive figure then you would have to pay that amount for 60 months. A lesser amount can be proposed but if the trustee or a credit card creditor points out that less than the projected disposable income is being paid then the law forbids the court from approving the Chapter 13 Plan.

Where a Chapter 13 filer shows the means to repay the means test can be a really mean test.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney answers a bankruptcy liability question...

I was recently asked by a potential client in my Sacramento bankruptcy law practice, the following: "I was recently laid off from my job and need to file for bankruptcy. I have a significant amount of credit card debt that I am really seeking from relief from. The only reason I might not file for bankruptcy is because I am the co-signor on my daugher’s vehicle. Can I still file for bankruptcy without messing her credit up?"

Yes, you will be able to still file for bankruptcy without messing your daughter’s credit up. What will happen in your bankruptcy petition is the debt will be discharged against you. But as long as your daughter continues to make her car payments, they will not take the car away from her. In the event your daughter can no longer make the payments and she has the car re-possessed, since you filed for bankruptcy on this debt, you will not be liable and the lender will not be able to sue you.

The other option is for you to re-affirm the debt, however you should consult with your attorney prior to entering into any reaffirmation agreements.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

FOR IMMEDIATE RELEASE
TUESDAY APRIL 13, 2010
Bankruptcy Law Firm Opens New Location in Beaverton, OR

Sagaria Law, PC begins the second quarter with a new bankruptcy firm location in Beaverton, Oregon. This West Coast bankruptcy firm, which currently serves the South and North Bay Areas, Sacramento & Roseville, as well as San Diego County with Chapter 7, Chapter 11, Chapter 13 bankruptcies as well as bankruptcy litigation services, also has plans for more new bankruptcy firm locations this quarter.

Scott Sagaria, owner and proprietor of Sagaria Law, PC, whose flagship office is located in the Riverpark Tower building in downtown San Jose, had this to say regarding the new location, “We are very excited that the start of the second quarter includes a new Sagaria Law bankruptcy firm in Beaverton, Oregon. This Oregon addition to our bankruptcy office in Portland forwards our desire to best serve the state of Oregon with all of their bankruptcy needs.”

The Beaverton bankruptcy office will be managed by Sagaria Law’s Cal Knickerbocker, whose enthusiasm for both the new location and serving his community with educated and effective bankruptcy services is apparent. “I'm excited about our new Beaverton location. We are looking forward to serving our Washington County bankruptcy clients in a convenient, central location. Come by and see us!”

PUBLICITY CONTACT:
Toby White
Sagaria Law PC
408.279.2288
twhite@sagarialaw.com

A Sacramento bankruptcy attorney says: Is Your Car Seriously Upside Down? Redeem It!

Consistent with the fresh start goals of consumer bankruptcy a person filing for Chapter 7 bankruptcy can redeem their cars and pay its actual value in full instead of the loan amount and interest. This makes sense if the car is worth substantially less than the loan you applied for.

The first step is to find the price that a car dealer would charge for your car in its current condition. Alternatively, you could find the value of your car in excellent condition and deduct the amount it would cost to make the car marketable. The cost would include interior and exterior detailing, mechanical repairs, and the cost of any replacement parts.

Next you will have to find financing that matches the actual value of your car. Typical financing companies will provide the loan amount at 26% interest. Yes that’s high but the amount saved by paying a lesser principal may save you money and even lower your payment.

If you can either afford to pay the actual value or get approved for a loan then it may make more sense to redeem the car even though the latter option is at a higher interest.

Ensure that the price is reflected in your bankruptcy petition in Schedule B and that it is your intention to redeem the car in the Statement of Intention.

The Bankruptcy Code requires a filer to either exempt the car in interest or it be abandoned from the bankruptcy estate. The latter requirement requires a request to the court to compel the standing Chapter 7 trustee to abandon it and a $150 fee to the bankruptcy court. Exempting the car is the better route because no additional fee is required.

Next its best to be proactive and draft a motion to redeem prior to filing the case. Make sure the motion to redeem includes the value of the car, whether its exempt or abandoned and that its for personal use.

The petition is now consistent with a motion to redeem. After filing and learning who the trustee is, file your motion to redeem.

Once the redemption is approved the actual value must be paid in full within 30 days.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney answers the question: What Should I Do If A Creditors Wants My Tax Return In Bankruptcy?

Answer: Comply, If The Request Is Timely.

A creditor in a Chapter 7 or Chapter 13 bankruptcy can request your tax return if they file a request with the bankruptcy court more then 7 days before the First Meeting of Creditors. Do not provide your tax return if your close to attending your 341 meeting or after. If the creditor’s request is timely then and the tax return is not given, the creditor can request the court to dismiss the bankruptcy. The court must dismiss unless you can give circumstances that support an inability to comply.

Savy creditors have done this and its best to comply and send the tax return to the requesting creditor. The main purpose is likely to create another hurdle and get an opportunity to dismiss the case. I’ve seen many a bankruptcy attorney get upset and try to fight the request. Its best to just comply and move on.

See Section 521(e)(2)(ii) for the exact language.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy lawyer chats about the reaffirmation procedure

Liens are charge on your car up to the amount of the loan. Bankruptcy whether it be a Chapter 7, 13, 11 or 9 will not release the lien from your car. Liens survive bankruptcy. Filing will relieve you of your personal obligation to pay back the loan supporting the loan. The lender however will be able to repo the car due to its lien. In order to keep the car you must keep the debt. A lot of thought should be put before reaffirming your car.

Keeping the car you’re financing after bankruptcy depends on several factors. You should analyze these factors and weigh the pros of keeping the car versus letting it go. First consider the amount and the interest rate. A high principle cuts against reaffirming your car loan while a low amount is sure to be paid off quickly. Likewise a high interest rate is another deterrent that contravenes a ‘fresh start’.

Next regardless of the budget listed in your bankruptcy petition draw up a current budget at the time you get the reaffirmation agreement. It may be significantly positive since you’re not paying the credit cards. If you find that you’re monthly income after expenses and deductions is greater than or equal to the car payment then you know you’re able to handle the financing agreement post bankruptcy.

If the financed car is your only means of transportation that definitely weighs more heavily than a high principle and/or high interest rate because its your only means of transportation.

Many attorneys will not sign the reaffirmation agreement thinking its in your best interest not to reaffirm. They’d better hope the car doesn’t get repossessed. You can file a pro se reaffirmation by filling out the reaffirmation agreement and sending it to the lender’s attorney who will then file it with the court. A reaffirmation hearing will be set where the judge assigned to your case will examine the terms of the loan and your budget and determine whether its in your best interest or not.

Lenders usually recognize that judicially denied reaffirmations represent the bankruptcy filer’s best efforts to reaffirm and do not repo the car even though they don’t have a reaffirmation agreement approved.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

FOR IMMEDIATE RELEASE
THURSDAY APRIL 8, 2010
Bankruptcy Law Practice Takes on Bankruptcy Litigation

San Jose, CA Tuesday, April 6, 2010 – While bankruptcy law firms are not uncommon, those that offer Bankruptcy Litigation among the more familiar bankruptcy menu items such as Chapter 7, Chapter 11 and Chapter 13 are rare as the term itself is new and the practice is still evolving.

Experienced bankruptcy attorneys who know the concept of bankruptcy litigation know their firm can better serve their client if they incorporate it into their practice, “ says Scott Sagaria, of Sagaria Law, PC, a bankruptcy and bankruptcy litigation firm with corporate offices located in downtown Sa Jose, CA. “And those that are not familiar, would benefit greatly from looking into it sooner rather than later, before they have to play catch up with the rest of us,” he adds.

Sagaria Law is one of the few Bay Area bankruptcy firms who employs a Bankruptcy Litigation Model to forward their consumer advocacy philosophy. In so doing, they provide clients with information on little-known laws designed and enacted by Congress that protect them from creditor harassment as well as taken action against creditors on their client’s behalf, at times even getting their clients a cash settlement.

PUBLICITY CONTACT:
Toby White
Sagaria Law PC
408.279.2288
twhite@sagarialaw.com

A Sacramento bankruptcy attorney discusses foRM 8...

This entry will take a step by step approach on the reaffirmation process of a financed car in a Chapter 7 bankruptcy.

A Chapter 7 filer in their petition must indicate on the Statement of Intention (Form 8) they are going to reaffirm their vehicle by checking the box labeled reaffirm. They must also list the creditor holding title. This lienholder must also be listed in Schedule D – Secured Debts.

If the property securing the loan is personal property and an individual chapter 7 debtor fails to indicate in the statement that he or she either will redeem the property or enter into a reaffirmation agreement the automatic stay is automatically terminated and the property is no longer receives protection of the bankruptcy filing. The financing company may repossess without having to file any request with the bankruptcy court.

Stating ‘retain collateral and continue to make payments’ on a car is the equivalent of not stating any intention and protection will automatically lapse 30 days from the filing of the bankruptcy petition.

In conclusion make sure you check on the boxes on Form 8 with respect to your car. Never try to retain and pay if that’s your intent.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento Bankruptcy Attorney Discusses Lack of COLA Increase for Social Security Recipients:

For the first time since cost-of-living-adjustments (COLA) went into effect in 1975, Americans will not receive a COLA adjustment to their social security benefits. That means that the 57 million people in America receiving social security benefits, including veterans, seniors and those with disabilities, will not receive an increase in benefits. There will be no COLA adjustment this year because of the decline in consumer prices across the board as determined by the Consumer Price Index (CPI).

Due to the difficult national financial situation, recipients of social security benefits are hampered to make ends meet. The Obama Administration has proposed a $250 per person stimulus payment for seniors, veterans, retired railroad workers and people with disabilities.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

FOR IMMEDIATE RELEASE
TUESDAY APRIL 6, 2010

Downtown San Jose law firm is key component in highest March bankruptcy filings to date since 2005’s Bankruptcy Code restructure.

The first quarter closed and the numbers are in. The American Bankruptcy Institute (ABI) reports total filings for consumer bankruptcies as 149,268.

Of that staggering number, San Jose’s own Sagaria Law, PC filed .00058 % of all bankruptcies filed nationwide. The grand total is the highest since 2005, according to ABI and the National Bankruptcy Center (NBKRC) data findings, and marks a 34% increase from February 2010’s 121,413 bankruptcy filing totals. March 2009 reported a total number of bankruptcies filed at 111,693, reflecting a 23% increase year to date.

Bankruptcy filings nationwide include Chapter 13 bankruptcy filings as well as the popular Chapter 7 bankruptcy, aka the Fresh Start, and three out of four bankruptcies filed by debtors were under the Chapter 7 category of the United States Bankruptcy Code.

Scott Sagaria of Sagaria Law, PC had this to say on the number of March filings that may shock most, “While these numbers may not instill optimism with regard to the current state of the economy on the whole, our firm is proud to represent our community in a way that forwards the bankruptcy model for an informed consumer, with a focus on consumer advocacy rights and the timely and efficient bankruptcy filing that everyone deserves.” He adds that the fact that his firm is smaller and hands-on, rather than large and impersonal, and has a wide reach along the West Coast are two key factors in its success. The overhaul of the Bankruptcy Code by Congress represents the 2005 marker.

PUBLICITY CONTACT:
Toby White
Sagaria Law PC
408.279.2288
twhite@sagarialaw.com

A Sacramento bankruptcy attorney comments on the Confirmation Hearing for Ch. 13

Northern California debtors who file Chapter 13 bankruptcy will want to understand the confirmation hearing process. Basically in a Chapter 13 a judge must approve your Chapter 13 plan. This approval takes place at the confirmation hearing. Here, a judge will address any objections to your plan raised by creditors.

Unlike the creditors’ meeting, the confirmation hearing will be run by a judge. For those debtors in Sacramento who are terrified at the prospect of sitting in front of a judge, if you are represented your attorney usually attends solo. If, however, a debtor is self represented they must appear. Since judges like efficiency they generally call cases that are uncontested or fairly straight forward first.

Debtors in Sacramento may wonder why a confirmation hearing is required. The meeting allows a judge to evaluate your plan, and inquire whether or not you can make your payments. In addition, it allows the judge to ask creditors specifically about their objections, hear your response, and make a ruling. If your plan needs to be amended you probably will be allowed an opportunity to comply. Otherwise, if it’s obvious you can’t afford your plan your case may be dismissed.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney says: If The Lender Does Not Garnish Wages They Will Put A Lien On Your Property

A nonpossessory nonpurchase money security interest is an interest where a lender takes an interest in consumer goods or tools of the trade. In bankruptcy this interest can be avoided to the extent that the security interest impairs an exemption in such property. Impairment occurs when a debtor cannot take an exemption due to the judicial lien encumbering such property.

Impairment of an exemption is measured by first comparing the value of the interest in the property in the absence of any liens against the total of the lien to be avoided plus other liens on the property plus the amount of the exemption claimed. The exemption is impaired to the extent that all liens plus the claimed exemption is greater than the value of the property.

The above calculation is the content of any motion to avoid a judicial lien. An abstract of judgment of the lien filed in the county where the property resides should be filed along with any request to avoid a judicial lien in order to show the court that a lien exists.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!

A Sacramento bankruptcy attorney speaks on aspects of Chapter 13

Sacramento debtors who have previously filed a Chapter 13 in the last two years and received a discharge, or a discharge in a Chapter 7 filed within the last four years cannot receive a discharge in Chapter 13. Note, you aren’t barred from filing for Chapter 13 in these circumstances, but you simply can’t get a discharge. Thus, you will still owe and debt not paid off under your Chapter 13 plan.
Sacramento, you’re probably wondering what’s the point of filing, correct? Well, filing may provide a structured way for you to handle your debt load that might not be available outside of bankruptcy.

Sacramento debtors should also know one more minor issue. In order to file Chapter 13 a debtor must be an individual i.e. not a business. If, however, you own your own business as a sole proprietor or partner, you can include all business debts on which you have personal liability. To see if you qualify for Chapter 13 I recommend contacting an experienced bankruptcy attorney.

If you have questions regarding Bankruptcy in Sacramento please contact us at (916) 492-6020 in Sacramento or (916) 724-1690 in Roseville for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced Sacramento Bankruptcy Attorneys. After you have spoken with one of our Sacramento bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Sacramento Bankruptcy Lawyers can assist you with all aspects of your bankruptcy or legal debt settlement case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, Sacramento and Roseville!