October 18, 2010

What does it mean to file a Chapter 13?

A Sacramento bankruptcy attorney writes about Chapter 13 bankruptcies.

Chapter 13 bankruptcy is a person's legal right to claim in the event of severe financial hardship. An experienced attorney can help advise a person about the technicalities of Chapter 13 and who is eligible. This type of bankruptcy allows a person to keep certain assets, such as a vehicle or home. A person must be able to prove that they have a job with enough income to pay off debts.

A trustee or attorney will determine how much of a person's income will be taken each month to pay off the entire settlement. The payment is generally garnished from a person's wages and sent directly to the trustee. The trustee then distributes the money to all the creditors.

An attorney will work with the creditors to get fees and either all or a portion of the interest removed from the total bill. The payment schedule is set up for a period of three to five years. At the end of the scheduled time frame, the petitioner must have fulfilled their previously agreed upon repayment schedule. During the course of the Chapter 13, creditors are not allowed to contact the person who filed bankruptcy. They are also restricted from taking any further legal action against the bankruptcy petitioner.

If you would like more information on this topic or other bankruptcy topics, please contact our Sacramento office at 916.792.6025 or . We at Bankruptcy Law Firm can connect you with one our our experienced Sacramento bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, asset protection, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting Sacramento.

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July 21, 2010

How Many Bankruptcy Law Chapters?

A Sacramento bankruptcy attorney discuss bankruptcy chapters..

How Many Bankruptcy Law Chapters?
Where can you find the authority for all the different bankruptcy chapters?

The Bankruptcy Code consists of Chapter 7, Chapter 9, Chapter 11, Chapter 12, and Chapter 13. Each Chapter outlines a goal specific to the filer seeking debt relief.

What are the different Chapters?
Chapter 7 is a liquidation bankruptcy where available assets are liquidated in order to pay creditors. Chapter 9 bankruptcy is a debt adjustment plan for municipalities seeking relief from their creditors. With the housing values falling and budget deficits occurring every year, this Chapter is in the news often. Chapter 11 is a business reorganization where corporations can reject burdensome contracts and propose a plan of reorganization. Chapter 13 is a personal debt adjustment plan. Under 13 filers can propose a plan of reorganization that allows them to repay their debts over 3 to 5 years.

To determine which bankruptcy Chapter is right for you, schedule a free consultation with the attorneys of Bankruptcy Law Firm.

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!


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July 16, 2010

Can I Save My Business In Bankruptcy?

A Sacramento bankruptcy lawyer answers: Can I Save My Business In Bankruptcy?

Bankruptcy allows for the liquidation and reorganization businesses in order for the owners to start fresh. There are four types of bankruptcy that mainly depends on the form that the business entity decides to take. Chapter 7 is a liquidation bankruptcy, Chapter 13 is a personal bankruptcy, Chapter 12 is bankruptcy for farmers, and Chapter 11 is for businesses and individuals who do not qualify for Chapter 13.

Chapter 7 Bankruptcy

Although Chapter 7 is a liquidation bankruptcy owners of sole proprietorships or partnership small in enough in value or no value and with a small number of employees can file and keep their business. Traditionally solely owned businesses must be closed upon the filing of a bankruptcy. Trustees however allow business to operate because the value is low and monitoring the business would be burdensome to the bankruptcy estate. Trustees tend to request the owner to insure the trustee for liability during filing and ask that the filer file a request with the court to compel the trustee to abandon the business.

Chapter 13 Bankruptcy

A Chapter 13 is a reorganization where the sum of the whole is greater than its parts. That is creditor stand to recover more of its claims if the business is kept as a going concern rather than auctioning off all of the businesses parts.

A business cannot file a Chapter 13 bankruptcy but its owner can and the post filing profit is property of the bankruptcy estate and used to repay debts pursuant to a Chapter 13 plan. The trustee will examine the business to determine the income derived and the ability for the owner to fund the Chapter 13 plan. Like the Chapter 7 trustees, Chapter 13 trustees require the owner’s liability insurance to cover him or her.

Because most business generate more revenue than the typical wage earner the median income is of no effect. Couple this with case law that requires ordinary and necessary business expenses to be deducted after calculation of a current monthly income and you have an applicable commitment period of five years every time.

Chapter 12

Chapter 12 is reorganization for farmers and is much like Chapter 13. Chapter 13 trustees will commonly administer Chapter 12s.

Chapter 11

A Chapter 11 is a reorganization where the sum of the whole is greater than its parts. That is creditor stand to recover more of its claims if the business is kept as a going concern rather than auctioning off all of the businesses parts.

Businesses can file for Chapter 11 and reorganize themselves ridding itself of unneeded contracts and other commitments that pose to hinder reorganization. A plan and disclosure statements are proposed and put to a vote. Once the plan is confirmed the business is discharged on the condition it meet the requirements of the plan.

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!

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July 6, 2010

Roseville, Is it possible to keep your Car in Bankruptcy?

Is it possible to keep my car in bankruptcy?

Generally speaking, it is possible to keep your car in bankruptcy. There are, however, several factors that come into play when determining whether it is possible to keep your car in bankruptcy. Some of the factors that play a part in answering whether you may keep your car in bankruptcy are:

1) What Chapter of Bankruptcy are you filing under?

2) How much equity is in your car?

3) If you still owe car payments, can you afford to continue making those car payments?

How will a Chapter 7 and a Chapter 13 Bankruptcy effect my ability to keep my car in bankruptcy?

Chapter 7: Chapter 7 bankruptcy is generally referred to as “liquidation.” The goal of a Chapter 7 bankruptcy is to discharge all of your unsecured debt. In return, your creditors will receive the value of your nonexempt assets. You have the option of reaffirming your loan obligations on your car in bankruptcy or of surrendering the car. You will get to keep your car in bankruptcy IF the amount of equity in your car is below the California exemption limit and if you will continue to make your car payments.

Chapter 13: Chapter 13 bankruptcy is generally referred to as “reorganization.” The goal is to place you on an affordable repayment plan. Generally speaking, you get to keep all of your assets, including your car, in bankruptcy chapter 13. You must pay off all secured debt on your car over the life your plan. You must also continue to make your monthly car payment in order to keep your car in bankruptcy. One of the benefits of filing a chapter 13 bankruptcy is that you may get to “cram down” the car loan amount to the value of your vehicle. Please consider talking to your Roseville bankruptcy attorney about this option.

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!

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June 28, 2010

How do I keep my personal property in bankruptcy?

A Roseville bankruptcy attorney explains to Roseville debtors how to keep personal property in bankruptcy?

How does a Chapter 7 Bankruptcy work?


The goal of a Chapter 7 bankruptcy is to wipe out all of your unsecured debt. The way it works is: any assets that you have (such as house, cars, clothes, jewelry, furniture, etc.) which are not covered by California exemption laws (if you reside in CA) are used to repay your creditors.

What property do I get to keep in a Chapter 7 Bankruptcy?
You will get to keep all of your real property and personal property in bankruptcy IF all of the property is covered by California exemption laws. California exemption laws allow you to keep up to a certain value of your home, your furniture, your jewelry, your vehicle, etc. Your assets include both real property and personal property in bankruptcy. If you don't have too many assets, then most likely you will get to keep all of your personal property in bankruptcy. California has two sets of exemption laws. You should consult with attorney to get a better idea of whether or not your assets will be covered by the exemption laws so that you can determine whether you will get to keep all of your personal property in bankruptcy.

How does a Chapter 13 Bankruptcy work?

A Chapter 13 bankruptcy is basically a repayment plan. It generally does not involve letting go of either real or personal property in bankruptcy. A Chapter 13 repayment plan can last anywhere from three (3) years up to five (5) years, depending on your income.

What property do I get to keep in a Chapter 13 Bankruptcy?

Generally speaking, if you qualify for a Chapter 13 bankruptcy and if you make all of your plan payments on time, then you should be able to keep all of your real and personal property in bankruptcy. Consult with your attorney to determine which Chapter of bankruptcy is the best option for you.

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!

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June 1, 2010

Chapter 13 Rules in California

A Sacramento bankruptcy attorney explains Chapter 13 rules in California

Each Chapter 13 filing is governed by the confirmation requirements of the U.S. Bankruptcy Code and the National Federal Rules of Bankruptcy Procedure. Different regions or jurisdictions also have different rules that are required to be met for a Chapter 13 plan to be approved and implemented. There are four districts in California and the rules for each district will be explored below.

Eastern District

The basic rule in the Eastern District Bankruptcy Court is that if the loan backed by collateral is delinquent then there must be a plan provision that has the trustee pay both the delinquency and ongoing payment to the lender. Furthermore if the term of the loan matures during the term of the proposed plan then the payments must be paid by the trustee. The rationale is to reduce the number of relief from stay motions filed by creditors in the event of default. Here in the event of a missed payment, the trustee files an application to dismiss the plan. If the plan is dismissed then the creditor can pursue the property on its own. This procedure cuts down on the number of court hearings and reduces the strain on tax payer resources.

Northern District

The Northern District allows a Chapter 13 filer to pay the ongoing loan payment directly to the lender. Any arrearage is paid by the trustee. As a consequence the Northern District uses adequate protection orders in response to motions for relief from stay in the event that a filer misses a direct payment to the lender. If a plan proposes to cram down and pay the actual value of collateral then the proposed value is paid entirely through the plan. Provisions in the plan specifying interest and value are deemed accepted unless opposed by the lender. No additional notice is required.

Central District

The Northern District allows a Chapter 13 filer to pay the ongoing loan payment directly to the lender. Any arrearage is paid by the trustee. As a consequence the Northern District uses adequate protection orders in response to motions for relief from stay in the event that a filer misses a direct payment to the lender. If a plan proposes to cram down and pay the actual value of collateral then the proposed value is paid entirely through the plan. B Provisions in the plan specifying interest and value are not deemed accepted even in the absence of opposition. The filer’s attorney must set an adversary proceeding.

Southern District

The Southern District like the Northern District allows a Chapter 13 filer to pay the ongoing loan payment directly to the lender. Any arrearage is paid by the trustee. As a consequence the Northern District uses adequate protection orders in response to motions for relief from stay in the event that a filer misses a direct payment to the lender. If a plan proposes to cram down and pay the actual value of collateral then the proposed value is paid entirely through the plan. Provisions in the plan specifying interest and value are deemed accepted unless opposed by the lender. Like the Northern District no additional notice is required.

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!

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May 13, 2010

Which Bankruptcy Chapter is Right for Me?

A Sacramento bankruptcy lawyer answers: Which Bankruptcy Chapter is Right for Me?

There are two policies encompassed within bankruptcy law – liquidation and repayment of debts or rehabilitation where the filer is kept as a going concern and debts are paid over time.

A bankruptcy filer will chose a bankruptcy law Chapter of bankruptcy depending on the filer’s assets, liabilities and goals.

Bankruptcy Law Chapter 7

A bankruptcy law Chapter 7 filing is usually chosen and recommended for those with a large amount of consumer debt who either have an income that is less than the median income corresponding to their household size or have an income with enough liabilities that leave them without a significant amount of monthly disposable income that could be used to repay their debts over five years.

A bankruptcy law Chapter 7 filing will leave financing on collateral with
the same terms entered into prior to the bankruptcy.

Bankruptcy Law Chapter 13

A bankruptcy law Chapter 13 filing is a reorganization that allows a bankruptcy filer to use the bankruptcy laws and propose different terms that enable the cure or catch up of past late payments and reorganization. A person filing under Chapter 13 can repay back taxes over the term of the reorganization at 0% interest. An attractive feature of Chapter 13 is repayment of financed item at its actual value as opposed to the payoff amount owed. The actual value is the secured value and the balance is treated just like credit card debt.

Some bankruptcy filers are forced to file Chapter 13 because they do not qualify for Chapter 7. Bankruptcy filers in this situation can either choose not to file bankruptcy and be responsible for 100% of their debt or file Chapter 13 and repay their debts according to their means.

Bankruptcy Law Chapter 12

A bankruptcy law Chapter 12 filing is a reorganization for those who meet the definition of a farmer. These bankruptcy filers file under Chapter 12 and use bankruptcy laws specific to financial
situations commonly encountered by farmers.

Bankruptcy Law Chapter 11

A bankruptcy law Chapter 11 filing is a reorganization that allows a corporation to receive a discharge of its debts and propose a plan of reorganization that will allow a business to start over without being burdened by loans it cannot repay or leases it no longer needs.

Chapter 11 is also the alternative to those who cannot file Chapter 13 because they exceed the debt limits for collateral backed debts and credit card type debts.

Your goals and the types of the debts you have will compel you to file under Chapter 7, Chapter 13, Chapter 11, or Chapter 12.

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!

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May 10, 2010

Bankrupty Law FAQ

Bankrupty Law FAQ by a Sacramento bankruptcy attorney:

1. Can bankruptcy stop my creditors from harassing me?

Yes, they will! By law, all actions against a debtor must cease once the documents are filed. Creditors cannot initiate or continue any lawsuits, wage garnishees, or even telephone calls demanding payments. Secured creditors such as banks holding, for example, a lien on a car, will get the stay lifted if you cannot make payments.

2. If my spouse does not want to file, will they be affected?

Your wife or husband will not be affected by your bankruptcy if they are not responsible (did not sign an agreement or contract) for any of your debt. If they have a supplemental credit card they are probably responsible for that debt. However, In community property states, either spouse can contract for a debt without the other spouse's signature on anything, and still obligate the marital community. There are a few exceptions to that rule, such as the purchase or sale of real estate; those few exceptions do require both spouse's signatures on contracts. But the day to day debts, such as credit cards, do NOT require both spouses to have signed.

3. How private is bankruptcy?

Bankruptcy filings are public records. However, under normal circumstances, no one will know you went bankrupt. The credit reporting agencies will record your bankruptcy and it will remain on your credit record for 10 years.
.
4. The most common reasons for filing bankruptcy are: Loss of job, divorce, and injury or illness.

5. I filed before, can I file again?

A person can file Chapter 7 again if it has been more than 8 years since he or she filed the previous Chapter 7 bankruptcy. Also refer to: Chapter 13.

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!

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May 6, 2010

What Is Bankruptcy

A Sacramento bankruptcy attorney asks and answers: What’s Bankruptcy?

When a borrower files bankruptcy, collection procedures that are usually followed are replaced by a different system of rules and laws. The filing of bankruptcy has a deep impact on the borrower, creditors, and others that have an interest in the borrower’s affairs.

Bankruptcy has different forms and is flexible to provide
different outcomes. Characteristics that make is different from the state laws used by creditors to collect owed monies are:

1. Bankruptcy is a system that is under federal law.

2. It’s a system that encompasses all of the borrower’s assets and debts.

3. The bankruptcy system affords relief to borrower by resolving and settling current debts while protecting creditors and guarding their interests.

4. Bankruptcy is administered by a specialized system consisting of bankruptcy court, government officials, and private persons such as attorneys

Although all assets are included, bankruptcy does allow for the protection of property most necessary for a borrower to start over. If a borrower does not have the income to repay debts the bankruptcy system and the borrower fully discloses all assets and liabilities then the bankruptcy system allows for a fresh start free from the predatory debt incurred in the past. Proper planning and responsible spending after bankruptcy can lead to a financial rehabilitation.

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!

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May 5, 2010

Famous Bankruptcy and Bankruptcy Fraud

A Sacramento bankruptcy lawyer sites some famous bankruptcies and bankruptcy fraud cases

The following are five cases of famous bankruptcies and bankruptcy fraud cases:

Atkins Nutrionals

The famous Atkins Diet that swept the in 2003 by Dr. Robert Atkins, had the answer to weight loss via his New Diet Revolution: cut the carbs, dummy! However, after a short run, and amidst much controversey over its founder's death (obesity? kidney failure?), combined with intense competition from other diet plans, the company to file for Chapter 11 bankruptcy protection. A famous bankruptcy. Though it did recover just under six months later, the diet would never approach the popularity it once famous enjoyed.

Edmonton Oilers Owner

Peter Pocklington, former owner of the Edmonton Oilers, was arrested at his Palm Springs-area home on charges of bankruptcy fraud for allegedly concealing assets during bankruptcy proceedings, according to a news release from the office of the United States Attorney, Central District of California.

Famous for owning the Edmonton Oilers, Pocklington filed for personal bankruptcy in August 2008, citing debts of approximately $19.6 million US. In his bankruptcy petition he said his assets totalled essentially only $2,900, inclduing $300 worth of clothing and shoes.

The U.S. attorney's release said the petition "raised suspicions that he was not disclosing all of his assets to the Bankruptcy Court."

Delta & Northwest Airlines

Both companies have histories dating back to the 1920s. Northwest was founded in 1926 with the intention of hauling mail for the US Post Office Department. Delta was founded in 1924 as a crop dusting company. Both enjoyed rises through the 70s and 80s, growing into two of the nation's top passenger airlines.

However, there were two aspects that wouldn't get better for the two companies: low-fare competition and fuel costs. Airlines like Southwest and JetBlue were gaining momentum, leaving the older companies with a much more even market. It was fuel costs that would ultimately lead the two companies to file for Chapter 11 bankruptcy protection on the same day, September 15, 2005

Covad Communications Group

Covad Communications Group was founded in 1996, and just a calendar turn later had launched the first commercially available DSL service. By 1999, they were offering these DSL services to local phone companies, which would then be passed on to their customers. The world of broadband Internet was growing, and Covad was at the helm.

However, their reign would not last long. Soon after the turn of the millennium, cable Internet services were introduced. While there were a few drawbacks -- an entire block was shard a fixed bandwidth -- cable Internet was generally much faster than DSL. This took some steam out of the DSL industry. When coupled with Covad's ongoing problem of unreliable installation and service, it spelled doom for the company.

They filed for Chapter 11 bankruptcy protection in August of 2001, citing $1.4 billion in debt. Some quick arrangements were made to temporarily satisfy its creditors and shareholders, which

Thinking Machines Corporation

Supercomputers were all the craze in the early 1980s, as consumers felt they were getting a glimpse of the future. Enter Thinking Machines Corporation, brainchild of MIT grad Danny Hillis.

It took Hillis quite some time to make his company profitable. It took a number of contracts from the Defense Advanced Research Projects Agency (DARPA), an agency of the US Department of Defense, to finally achieve profitability in 1989. However, there were cries of foul play from competing companies like IBM. When DARPA began more evenly distributing its contracts, Thinking Machines began suffering losses.

In August of 1994, the company filed for Chapter 11 bankruptcy protection, selling a majority of its to Sun Microsystems.

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!

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May 4, 2010

Nondischargable Debt When Filing Bankruptcy

A Sacramento bankruptcy attorney comments on nondischargable debt when filing bankruptcy

On too many occasions a person filing a bankruptcy is lulled into believing that filing of bankruptcy is the answer to all their debt problems that is until their attorney receives a letter from a creditor’s attorney describing the facts and circumstances of usage that meets the definition of fraud. A creditor who can prove fraud may be able to hold the debt as nondischarable and therefore unaffected by the bankruptcy discharge. Using large amounts of credit in a short amount of time, making no minimum payments, or stating income that is higher than what was actually made at the time the credit card application was filled out will increase the odds of a nondischargability complaint being filed. In my experience the greatest number of nondischarability suits occur where the filer operated a small business incurring large amounts of debt to keep the business going or was a contractor dealing with an irate property owner who didn’t feel the work was up to par.

The nondischarability complaint is prefaced with a letter describing why the credit card company believes it has a case for prevailing on a nondischarability suit. The letter is an invitation to settle in order to save both sides the time and effort in litigation. The more the creditor has to expend on litigation the less slack will they give you on settlement and collection. A call to the lender explaining that the usage was in good faith may persuade the creditor in dropping its suit.

The creditor’s next step is to institute an adversary proceeding and file the complaint. What commonly occurs in these situations is settlement of the debt at say $150 a month until the debt is paid off. The creditor requests and is granted a default judgment holding the debt as nondischargable. The settlement usually has a provision for execution of the nondischargable debt by applicable state law if a payment is missed.

Proper planning and the realization that a nondischarability suit could occur may help in preventing one from being filed or mitigating the amount of debt owed.

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!

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May 3, 2010

Pre Bankruptcy Transfer For Exemption Planning

A word on Pre Bankruptcy Transfer For Exemption Planning from a Sacramento bankruptcy lawyer

The United States Bankruptcy Code allows you to keep property or assets such as a car, home, land and other assets by claiming them as "exempt" under Federal and State bankruptcy exemption laws. Your attorney attempts to apply exemptions to the fullest extent possible to protect all of your property. Planning is necessary to convert non exempt property into property that can be exempted.

When assets are converted to a form of property that can be exempted on the eve of bankruptcy its been held by courts that any inference of a fraudulent transfer is insufficient to establish a fraudulent transfer which makes it possible for a trustee to avoid the transfer and use the property to repay debts owed to creditors.

A trustee will have to show more than just the conversion of assets and the filing of bankruptcy. Of the badges of fraud that are most relevant to exemption planning are 1) the financial condition of the filer both before and after the transfer; 2) the existence or cumulative effect of a pattern or series of transactions or course of conduct after incurring debt, the onset of financial difficulties; 3) the pendency or threat of suits by creditors; 4) and/or a general chronology of events and transactions under inquiry.

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!

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May 2, 2010

Transferring Property After A Bankruptcy

A Sacramento lawyer discusses transferring property after a bankruptcy

Transfer of real estate after a bankruptcy is filed may be cancelled by the trustee. Upon filing a bankruptcy a trustee is assigned to liquidate assets, if any. If a filer transfers property after filing then the trustee has the authority to recoup the property because is was transferred without the permission of the trustee. By recouping the property the trustee is able to preserve the property for possible liquidation and repayment to any creditors filing claims in your case.

Any recipient of property must turn the property over or pay its value to the trustee. If the recipient then again transfers the property with out any knowledge of the filer’s bankruptcy then the transfer is deemed to be in good faith and the property does not have to be returned to the trustee.

A trustee can use his post filing avoidance powers before the earlier of two years after the transfer or at the time the case is closed or 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!

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April 30, 2010

No Plan Term In Chapter 13 If You Qualify

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!

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April 29, 2010

Car Loans and Bankruptcy

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!

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April 28, 2010

Filing a Chapter 13 Bankruptcy

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!

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April 26, 2010

Chapter 13 Bankrutpcy

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!

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April 23, 2010

Bankruptcy Audits

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!


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April 20, 2010

Chapter 13 Trustee

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!

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April 19, 2010

Means Test Thresholds For All Cases Filed After April 1, 2010

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!

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April 15, 2010

Projected Disposable Income Test for a Chapter 13 Bakruptcy

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!

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April 14, 2010

A Sacramento Mom Co-Signs on her Daughter's Car, then Files Bankruptcy

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!

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April 13, 2010

Your Car and Chapter 7 Bankruptcy

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!

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April 12, 2010

Creditors ask for tax returns in a Bankruptcy?

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!

April 9, 2010

The Reaffirmation Procedure

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!

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April 8, 2010

Check The Correct Box on the Statement of Intentions (Form 8)

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!

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April 7, 2010

Social Security Recipients

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!

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April 5, 2010

Chapter 13 Confirmation Hearing

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!

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March 31, 2010

Personal Finance Course in Bankruptcy

A Sacramento bankruptcy attorney tells debtors about credit counseling courses when filing bankruptcy

Sacramento: let’s face it, if you’re considering filing for bankruptcy you may not have the best spending habits. Still, in the spirit of transparency, most Americans today (including this writer) probably could use some personal finance coaching. It should therefore come as no surprise that part of the process of filing for bankruptcy involves two credit counseling courses. Specifically, a debtor must take a credit counseling course before filing their petition and after filing their petition.

Sacramento, I know what you’re thinking, you hate homework. Not to worry, the credit counseling courses are but a minor inconvenience. Some courses are now available online and are not too expensive. And if I may be so bold Sacramento, the course may do you some good. So take heart Sacramento, the credit counseling courses are not the end of the world.

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!

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March 27, 2010

Fraudulent Debt in Bankruptcy

A Sacramento bankruptcy lawyer outlines fraudulent debt in a bankruptcy filing
Sacramento, as we approach the close of tax season and a close review of our financial straits, there may be some debtors who know they are going to file bankruptcy. For many this realization may be a difficult pill to swallow. Still, some debtors may take this as an opportunity to run up their credit card bills to pay for debts or necessities knowing they will discharge the debt when they file for bankruptcy. Not so fast my friends!

Debts from fraud are non-dischargeable. Thus, if a creditor can prove that your debt arose out of dishonesty, the court probably will not let you discharge that debt.

For example, you know you are going to file for bankruptcy, but your five year old daughter really wants a pony for her birthday. Being the kind parent you are, you pay $5,000.00 for your daughter’s beloved pony by using your credit card. A couple months later you file for bankruptcy after making only one payment on that credit card after purchasing the pony. In this situation a debtor should not be surprised to have the creditor object and the court agree this debt should not be dischargeable.

So, word to the wise, Sacramento, enjoy life. But do so responsibly.

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!

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March 18, 2010

Debts to Family Members when Filing Bankruptcy

A Sacramento bankruptcy attorney advises on paying back debts to family members prior to bankruptcy

It is not uncommon for people to borrow money from family members. Many people in contemplation of bankruptcy wonder if they can pay their family member back prior to filing for bankruptcy in order to avoid this person becoming a creditor. For example, Debtor’s brother loans him $10,000 to help through a tough time. Debtor’s financial circumstances do not improve and Debtor needs to file for bankruptcy. Debtor manages to come up with $10,000 prior to filing for bankruptcy and pays his brother back. Debtor then files for bankruptcy a month later.

In this situation, the $10,000 that the debtor paid to his brother is likely to be recovered by the bankruptcy estate. The general policy behind recovering these funds are that when a person files for bankruptcy, one creditor should not be preferred over another, or that all creditors should be treated equally. While an unfortunate circumstance, it is not advised that you pay back your family members in contemplation of bankruptcy.

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!

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March 4, 2010

Credit Card Usage Prior to Filing for Bankruptcy

Sacramento Bankruptcy Attorney Discusses Credit Card Usage Prior to Filing for Bankruptcy

With the state of the economy and the unemployment rate at record levels, relying on credit cards for all purchases has become a way of life for many Americans. However, individuals planning to file for Chapter 7 bankruptcy must be extremely conscious of their credit card usage as such usage pre-filing may be deemed unreasonable and fraudulent, thereby jeopardizing their entire bankruptcy filing. Anyone who has decided to file for bankruptcy or has hired an attorney to do so should immediately stop using their credit cards.

The natural inclination for many people planning to file for bankruptcy is to max out their credit cards before filing. However, doing so is highly discouraged as creditors will review all transactions on your account typically for at least a year prior to your bankruptcy filing. If the creditor considers your spending behavior abusive, it may challenge your right to discharge some or all of the debt incurred. This not only complicates your bankruptcy filing but also places your entire filing at risk, which ultimately is a far worse scenario. Thus with all pre-filing credit card usage, it is important to keep in mind the reasonableness standard which is the standpoint all such transactions will be viewed from by the creditors upon filing for bankruptcy.

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!

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March 2, 2010

United States Supreme Court’s Agreement to Hear Case Involving Student Loans

Sacramento Bankruptcy Lawyer Discusses the United States Supreme Court’s Agreement to Hear Case Involving Student Loans

More than a third of those people seeking post-high school higher education, apply for some sort of student loan. A large majority of these loans are guaranteed by the federal government which is also why federal law makes it next to impossible to discharge such debt. Student loan debt may only be discharged in cases of undue hardship under the bankruptcy code although there is no restriction on restructuring the debt.

This issue arose when Francisco Espinosa filed for Chapter 13 bankruptcy in or around 1994. His only debt was approximately $13,250 in federal student loans owed to United Student Aid Funds Inc. A plan was devised with the bankruptcy trustee in which Espinosa would pay off the loan with the exception of the accrued interest totaling approximately $4,000.00. The lender was notified in writing but filed no objections and thus the plan was approved by a federal bankruptcy judge. Espinosa lived up to the plan’s requirements, paying it off in installments upon which the bankruptcy court declared the debt paid in full.

Nevertheless, years later, the lender attempted to collect the accrued interest from Espinosa and eventually filed suit alleging that the Chapter 13 Plan was void as there was no showing of undue hardship which would have required the bankruptcy court to conduct an adversary hearing. A federal district court rules in favor of the lender but this decision was reversed on appeal to the Ninth Circuit Court of Appeals. It found that the lender had missed its opportunity as the bankruptcy court already made a final order discharging Espinosa’s debts. The United States Supreme Court has now agreed to hear the case. Hence what started as bankruptcy case involving a relatively small amount of debt could not have enormous ramifications for the entire student loan industry. Only time will tell what those ramifications will be but this Fremont attorney is eager to see what the outcome will be.

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!

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February 26, 2010

Credit Counseling when Filing Bankruptcy

Sacramento Bankruptcy Attorney Discusses Credit Counseling Within a Bankruptcy

Pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, in order to file an individual bankruptcy, you must obtain credit counseling from a government-approved organization within 180 days before filing. Furthermore, in order to receive your discharge, you must also receive a debtor education course during the course of the bankruptcy. While there are extremely limited exceptions to both courses in certain situations such as exigent circumstances or the U.S. trustee’s determination that there are insufficient credit counseling agencies available, for the most part all people who intend to file bankruptcy must comply. The two courses also cannot be taken at the same time.

In the initial course, an evaluation of the individual’s personal financial situation should be conducted, as well as a discussion of possible alternatives to bankruptcy including the formulation of a personal budget plan. Typically, this course runs anywhere between 60 to 90 minutes and can be completed in person, on the phone or online. The fee is somewhere in the neighborhood of $50.00 although if you cannot afford to pay this, you should request a fee waiver from the counseling organization before the session begins. Upon completion of the course, the credit counseling organization should issue you a certificate which must be submitted to the Court prior to or in conjunction with your bankruptcy filing.

The second course in the bankruptcy process is a debtor education course which should cover topics such as developing a budget, managing your finances as well as using credit wisely. As with the credit counseling course pre-filing, this course may be taken in person, on the phone or online with an approved provider. The duration and cost is roughly the same as the first course with the possibility of requesting a fee waiver in advance if you are unable to afford it. And as with the first course, you should receive a certificate upon completion of this course.

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!

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January 29, 2010

The Rise in Bankruptcy Filings

A Sacramento Bankruptcy attorney comments on the increase in bankruptcy filings in 2009

As compared to 2008, personal bankruptcy filings increased by 32% in 2009 according to statistics gathered by the National Bankruptcy Research Center. As the country’s financial situation continues to decline, many Americans are forced into bankruptcy due to unemployment and home foreclosure rates. Altogether bankruptcy filings hit 1.41 million in 2009, the highest number since 2005 when Congress modified bankruptcy laws to make it more difficult to file. As of November 2009, filings for Chapter 7 bankruptcy were up more than 42% with Chapter 13 filings up 12%. States showing the largest increase in filings since 2008 were Arizona, followed by Nevada, California, Wyoming and Utah. The states with the lowest increase included Nebraska, Pennsylvania, Alaska, Tennessee, and South Carolina.

The statistics further show that the overall proportion of bankruptcy petitions filed jointly has increased from 30% to 36% in 2009 as more families were forced to seek bankruptcy relief amid the country’s recession. The bad news is that the trend in increased bankruptcy filings is only expected to rise in 2010. Many previously solvent consumers have been left with no choice but file for bankruptcy in light of rising unemployment, high debt amounts and unsustainable mortgages. Industry experts find the situation grim and only expect it to get worse before it gets better.

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!

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January 13, 2010

Rise in Bankruptcy Among Middle Class Citizens

Sacramento Bankruptcy Attorney notices the rise in bankruptcy among the middle class...

Several news sources have reported a significant rise in personal bankruptcy filings last year.
As a Sacramento Bankruptcy Lawyer, I know that at least 1.4 million Americans filed for bankruptcy last year; many of them, your average, hard-working middle class citizen who had no other alternative after losing a job, seeing their business suffer, or facing foreclosure.

One local resident, Frank M. states that he found himself $100,000 in credit card debt, after losing his job 2 years ago and being unable to find a new one. He had cashed out his retirement to make ends meet, and when that was depleted, he turned to credit cards. He tried to consolidate his debt and work out a repayment plan through a debt relief agency but the plan did not work out. Feeling like he had no other alternative, he sought the assistance of a bankruptcy attorney.

Like Frank, many people that seek the assistance of bankruptcy attorneys these days were people who were living comfortably just a couple of years ago. These are hard-working people who could have never imagined that they would be filing for bankruptcy, and are extremely embarrassed and/or conflicted about not being able to pay their debts back. These are people who got in deep debt just because they were trying to make ends meet each month. Attorneys across the country say that they rarely consult an individual who had run up huge debt with no intention of paying it back.

People should be aware that filing for bankruptcy does not equate a moral failure on their part. It's actually an opportunity to clean the slate and start over.

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!

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At Sagaria Law, PC we want to guide you on the path to financial freedom and realize this is not an easy task for most. We respect your devotion to better your circumstances even with financial hardship and thus are willing to guarantee that if you retain us, we will do everything we can, legally and ethically, to help you become debt-free.

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