Tag Archive: filing bankruptcy

2016
01/01

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Filing Bankruptcy

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How To Rebuild Your Credit Before Turning 45

According to the United States Department of Justice, [T]he ages of 2544 are the peak years for filing bankruptcy. People between the ages of 45 and 59 file at about the rate that would be expected by their proportion in the population at large.

In other words, those who file bankruptcy are more likely to belong to the Millennial or Gen X generation demographics, with the highest percent of debtors belonging to the 4044 age bracket.

Source: US Department of Justice

In speaking with Professor Emeritus and Former Business Dean at University at Buffalo, author of What to do When I get Stupid and Financial Economist Lewis Mandell, PhD, Benzinga asked if its possible to rebuild credit after bankruptcy. Mandell shared, Yes. In fact, since a person cannot generally declare personal bankruptcy again for seven years, those who have just gone through personal bankruptcy are generally regarded as better credit risks than others, with similar finances, who have not declared bankruptcy within seven years.

The Key To Financial Freedom Post-Bankruptcy Is Maintenance

Mandell commented, You can maintain a good credit rating by limited your use of actual and contingent credit. Actual credit consists of money borrowed and this should be as small a portion of your income as possible. Contingent credit consists of unused lines of credit and credit cards and other such things.

Since a person with a lot of contingent credit can quickly increase the ratio of outstanding debt to income, that person is deemed to be more risky borrowers and by credit rating agencies, Mandell explained.

Its A Slow Process

Rebuilding credit after bankruptcy is a slow process, Marco Pantoja, Interim-Director of the Office for Financial Success at the University of Missouri, told Benzinga.

It may take several years to see a credit score well above the sub-prime area. With time, the negatives on the report dwindle in significance, and any positive history being developed is adding more credibility to the borrower, Pantoja clarified.

Take Time To Self-Reflect

Rebuilding credit post-bankruptcy is not a mindless exercise; it involves constant dedication and financial awareness. While the basic financial principals should always apply (save what you can; dont spend more than you make; treat credit as a method of paying for what you can already afford, not a means to pay for what you want and cant afford; etc.), properly rebuilding credit requires some serious self-reflection.

  • 1. Understand Why You Ended Up In Bankruptcy. Pantoja elaborated, To start, a person needs to be aware of what types of personal behavior or habits helped contribute to the need for bankruptcy. This awareness will help promote the development of positive financial habits and reduce the likeliness of relapsing.
  • 2. Go Back To The Basics. Some fundamental practices of personal finance would be the ideal habits to develop first; tracking expenses, budgeting and saving. With these relatively simple techniques, a person can maintain awareness of their financial situation, harness more control over their spending and reduce their reliance on debt, Pantoja said.
  • 3. Start Savvy Spending Habits. Once the basics have been conquered, Pantoja recommended going beyond the beginner habits and embracing techniques that will bring your financial practices from passing to top-notch performing. Combine these [techniques] with auto-bill pay tools, while avoiding over-spending on credit cards, and you have a surefire recipe for maintaining great credit.

Above all, it is essential to remember how many resources are available to those in financial distress. There is no need to go through the mental hardships of debt alone. If you are facing financial difficulties and are considering bankruptcy, reach out to those around you. Acknowledge the situation and act today. Financial recovery is possible and there is help available.

Image Credit: Public Domain

2015
12/27

Category:
Filing Bankruptcy

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Bankruptcy: leave your debt troubles behind in 2015

FILING Bankruptcy is a serious decision for most people. Most don’t have a clue about how the process works until they actually consult with an attorney.  Confusion often results from hearing conflicting personal opinions from people they know.  Sad to say, well-meaning friends and family often give the wrong advice and the results can sometimes be disastrous.  Remember that as much as your friends and family care about you, nothing takes the place of professional advice.

Filing right away may not be the best thing to do in some situations.  In other cases, however, it is necessary to file immediately in order to protect property, wages, bank accounts and other assets from being taken by creditors.  An experienced Bankruptcy attorney should be consulted without delay when important legal rights are at stake.  This is especially true when you have assets that may be at risk if creditors file lawsuits, repossess or foreclose.  Judgment creditors may proceed to place a lien against property that you own, garnish your wages or levy on your bank accounts.

If you are honestly doing your best to pay your creditors but simply can’t, the law provides a remedy for your situation.  I am not saying that bankruptcy should just be a quick way out of debt in every situation without regard for personal responsibility. What I am saying is that being bankrupt is not often a conscious choice that people make. Rather it is simply a consequence of poor financial decisions that have already been made in the past. But the past is gone and the decisions are irreversible. Life must go on.  Of course, in a lot of cases, it can also be the result of events in life that are beyond our control.  But in those situations where it is not, the willingness to accept responsibility for where we are and the acknowledgement of the fact that where we go from here depends on us 100% are the first steps to financial recovery.  Be willing to forgive yourself for any wrong decisions you may have made while putting your past where it belongs.

Filing for Bankruptcy relief by wiping out debts you can no longer pay or maybe consolidating all your debts into one affordable monthly payment can be a turning point in your life if you find yourself in a seemingly hopeless financial situation.  When appropriate, Bankruptcy may be just what you need to turn your situation around quickly and help you get your life back on track.   Never lose hope. Like most problems in life, this too will soon pass.

As we start a brand new year, it’s time to reflect on where you are at the moment and what you need to accomplish to achieve whatever financial goals you have. If your debt problems are stopping you from having the kind of life that you want for yourself and your family, only you can do something about it- whatever solution you choose to get you out of the financial mess you may be in. For a free consultation, call my office at 866-477-7772. I have offices in Los Angeles, Pasadena, Cerritos and Valencia.

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call  Ray Bulaon Law Offices at  TOLL FREE 1 (866) 477-7772. (Advertising Supplement)

2015
11/30

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Filing Bankruptcy

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How Chapter 13 Bankruptcy Stops Foreclosure and Eliminates Debts

This press release was orginally distributed by SBWire

Los Angeles, CA — (SBWIRE) — 11/23/2015 — It is still a common occurrence in California for lenders to foreclose when borrowers fall behind on mortgage payments.  Many California homeowners are having trouble keeping up with mortgage payments and with credit card debts.  In the event of a sudden illness or job loss, many people have no savings and fall behind on mortgage payments.

File chapter 13 bankruptcy is a way to reorganize debt and stop foreclosure.  Many homeowners file chapter 13 when foreclosure auctions are scheduled, as a way to stop the foreclosure and receive the full benefit of eliminating credit cards, medical bills, and personal loans.  Bankruptcy can eliminate unsecured debt, which is the type of debt that is not attached to collateral such as the home or a car.

There are many benefits for filing bankruptcy.  There is an automatic stay that happens at the time of filing which immediately stops foreclosure and all debt collection efforts.  In addition to stopping foreclosure, bankruptcy wipes out debts, such as medical bills, IRS debts more than 3 years old, personal loans, and can be used to strip 2nd loans or 3rd loans on a home [HELOCs].  Bankruptcy also stops automobile repossessions, wage garnishment, and collection calls.  Filing bankruptcy can also remove a judgment resulting from a collection of debt.

How to qualify:

In order to file bankruptcy, there is a means test, excluding people who make too much income from filing Chapter 7, while requiring people filing Chapter 13 to make enough to afford payments for secured loans [such as home and auto loans] as well as monthly expenses and a repayment plan.  A petition must be filed, including schedules that disclose all debts and income and assets.

How much / How long / What happens after filing bankruptcy:

When filing bankruptcy, attorney fees are charged up front, and sometimes included in a payment plan for payment of arrears on a home or car loan that is delinquent.  Depending on the payment plan, which average 3-5 years, a discharge can take quite a while for a Chapter 13 filing.  Upon discharge, all unsecured debts are forgiven [such as credit cards, medical bills, etc.]

The goal of filing a bankruptcy is usually to discharge debt, catch up on missed home or car payments, and have the full protection of the court from creditors for the duration of the bankruptcy.

Bankruptcy Attorneys in Los Angeles explained how Chapter 13 Bankruptcy work

According to bankruptcy attorney Lauren Rode: foreclosures are filed everyday because homeowners lose their jobs, run out of their savings, and fall behind on mortgage payments when they cant keep up with all the household expenses.

It is best to find a lawyer who has the experience and qualifications to stop the foreclosure process.

A record of success includes a high number of confirmed bankruptcy plans and experience in all of California.  The Los Angeles bankruptcy attorneys at Consumer Action Law Group take the time and effort to make sure that their clients understand what the process involves and exactly how much it will cost to file.

By filing chapter 13 bankruptcy, the creditors will be ordered to stop collection efforts immediately.  A foreclosure bankruptcy attorney will stop the foreclosure process by filing chapter 13 bankruptcy. To find out more about options to save a home from foreclosure homeowners are encouraged to call Consumer Action Law Group and discuss their situation with a Bankruptcy attorney for free. Anyone who need bankruptcy advice should visit http://Consumeractionlawgroup.com or call 818-254-8413

About Consumer Law Action Group
Consumer Law Action Group is a law firm with offices in Los Angeles, dealing with consumer issues such as wrongful foreclosure, auto dealer fraud, and employer violations.  The attorneys within Consumer Law Action Group focus on lender litigation, bankruptcy, and lawsuits against car dealers, as well as claims against employers who violate labor laws.

For Media Inquiries:
Contact Person: Lauren Rode, Esq.
Telephone: 818-254-8413
Email: Lauren@consumeractionlawgroup.com
Website: http://consumeractionlawgroup.com

For more information on this press release visit: http://www.sbwire.com/press-releases/how-chapter-13-bankruptcy-stops-foreclosure-and-eliminates-debts-643709.htm

2015
11/29

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Filing Bankruptcy

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Verso Considers Filing Bankruptcy, Sale of Duluth Plant

DULUTH, MN –

The struggling Verso Paper Corporation is considering filing bankruptcy and selling many of its paper mills, including the one in Duluth. 

2015
11/28

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Filing Bankruptcy

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WHY Louisville owner files bankruptcy

While he continues to struggle with health issues, troubled Louisville businessman Will Russell has filed for bankruptcy.

Russell, who suffers from a bipolar disorder, said in a Facebook post Tuesday that he is focusing on improving his health, which is why he closed his two WHY Louisville stores, at 1583 Bardstown Road and 806 E. Market St., at least temporarily. The stores phones went unanswered Wednesday morning.

In a Nov. 11 filing in US Bankruptcy Court, he listed liabilities of $1 million to $10 million and assets of $100,000 to $500,000.

He wrote on the Facebook page of WHY Louisville, a store that sells varied eclectic wares, that he recently has had a number of personal and business issues appear in the news. I am currently addressing these issues, and focusing my energies – first and foremost – on my family and my recovery.

He did not address the fate of the stores or the remaining merchandise.

2015
11/25

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Filing Bankruptcy

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Quaker Steak & Lube filing bankruptcy; will be acquired

Quaker Steak Lube filing bankruptcy; will be acquired

Quaker Steak Lube filed for bankruptcy on Monday with TravelCenters of America agreeing to acquire the company.

2015
11/25

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Filing Bankruptcy

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Ask the Times: Gas with ethanol prevents gas line freezing

As to gift cards and certificates as they relate to going out of business (whether by filing bankruptcy or simply closing the doors) there is very little in Iowa law that addresses some of the problems that can occur. With regard to a bankruptcy filing, doing so pretty well trumps any other concern or law, holders of gift certificates/cards are unsecured debtors and can file a claim with the bankruptcy court. But, as unsecured debtors, they are in line after secured debtors for any assets that may be available to distribute to satisfy such claims.

For a business that simply closes its doors, absent unusual circumstances, generally when the business dies so does the ability to redeem a gift certificate/card. There is no insurance, bond or escrow requirement in Iowa law to give the holder of the certificate/card any assistance. There have been various proposals over the years to change Iowa law with regard to gift certificates/cards to address some of these concerns. However, the proposals have not made it into law.

Heres our most recent general consumer advice on gift cards and gift certificates: https://www.iowaattorneygeneral.gov/for-consumers/monthly-consumer-focus/consumer-focus/paper-or-plastic-gift-certificates–gift-cards/paper-or-plastic-gift-certificates–gift-cards/.

2015
09/30

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Filing Bankruptcy

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RadioShack Creditors Sue Hedge Fund Over Chain’s Collapse

The lawsuit targets Standard General, its principal investment officer, company lender Wells Fargo Bank and RadioShack’s former top managers, including Joseph Magnacca, the former chief executive.

Reduced Price

Creditors accuse Magnacca of helping Standard General take over RadioShack at a reduced price in return for getting a position on the board of directors for another troubled retailer controlled by the hedge fund, T-shirt maker American Apparel, according to the complaint.

After filing bankruptcy, the company closed about half its 4,000 stores and in March sold about 1,700 of the remainder to Standard General, which had been the company’s biggest shareholder, for about $145.5 million.

Richard Hahn, a bankruptcy lawyer for Standard General, didn’t immediately reply to an e-mail requesting comment on the lawsuit. Alfred Perez, a lawyer for Magnacca, and Cory Falgowski, an attorney for Wells Fargo, didn’t immediately return phone calls seeking comment.

2015
09/29

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Filing Bankruptcy

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Bankruptcy: Should you file now or later?

INDIVIDUALS who have accumulated excessive debt are often left to ponder whether they should file bankruptcy in order to get out of debt.  Sometimes, these people feel that somehow, they’ve lost, failed, or that they will never have a chance to rebuild their credit again. Because we are living in a society where having a lot of credit cards has become the norm, they can’t imagine themselves without credit cards.

Of course, the truth is that credit cards only give us a sense of false security. Why? Because these plastic cards create the illusion of having money that you really don’t have in your bank account, that’s why. That is exactly how most people end up spending their money before they even earn it. And they wonder why they are broke every pay day no matter how hard they work.

If you find yourself over-extended and have tried living on a budget, doing financial counseling, etc. and still have not made great progress in repaying your debts, I applaud you at least for your efforts. However, your plan must be a realistic one or you will simply end up getting frustrated.  When you have incurred more debt that you can possibly repay, perhaps filing bankruptcy may be the only way to get debt relief. And in most cases, it’s not as complicated and as bad as what your creditors would like you to believe. As a matter of fact, most of the 1.5 million people who file for bankruptcy in the United States do just fine. They rebuild their credit after a few years and a lot of them are able buy homes just like everyone else.  Filing bankruptcy doesn’t have to be the end of the world. It is only a new beginning for those who really need it.

Suppose you have attempted to negotiate with your creditors to work out an affordable repayment plan but they simply would not work with you? Although you’ve told them repeatedly that you cannot afford to pay the entire amount, they refuse to cooperate and continue to threaten you with filing a lawsuit, obtaining a judgment and perhaps even garnishing your wages (which you know you cannot afford). What else can you do?  This may leave you no other option but to seek debt relief through our federal bankruptcy laws.

If you are drowning in debt, don’t wait until things get worse or you may regret not having acted sooner.  Waiting until the last minute also doesn’t give you enough time that you need to find a good attorney who can protect your interests. Remember that like doctors, not all lawyers are the same. You need a competent legal representative who understands the debt collection and bankruptcy laws and has had the experience of handling a lot of cases like yours. Hiring the wrong attorney can only make your situation worse.

For a free office consultation, please call Toll-Free 1 (866) 477-7772. We have offices in Los Angeles, Pasadena, Cerritos and Valencia.

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None of the information herein is intended to give legal advice for any specific situation.  Atty. Ray Bulaon has successfully helped thousands of clients in getting out of debt. For a free attorney evaluation of your situation, please call  Ray Bulaon Law Offices at  TOLL FREE 1 (866) 477-7772. 

2015
09/28

Category:
Filing Bankruptcy

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Bankruptcy Basics – “Will I Lose My House in a Chapter 7 Bankruptcy?”

Almost daily I meet with families that have avoided filing for bankruptcy because they fear they will lose their home as part of the process. In this article I will discuss how you can know if your house will be put at risk by filing bankruptcy and discuss the different ways secured and unsecured debts are treating in the bankruptcy process.

Will I Lose My House?

Secured debts are treated different in bankruptcy than an unsecured debt. A secured debt is a debt that is secured by property or collateral of some sort. The most common secured debts are car loans and home loans. With these types of loans if you dont make the payment the care will be repossessed or the home foreclosed on.

For the most part it is no different if you file a chapter 7 bankruptcy. You must keep making the monthly payment on your home if you want to keep it while you are going through the bankruptcy process. If you dont make the house payment then, just like it would be if you werent in bankruptcy, the bank can ask the bankruptcy court to permit it to start the foreclosure process.

What if I have Equity in My House?

Over the last 4-6 years it almost seemed laughable that someone would have equity in their home here in Arizona. Due to the Great Recession nearly all Arizona homes were upside down where there was more owed on the home than it was worth.

As the housing market has improved I am starting to see families that do have equity in their homes, and sometimes quite a bit of equity. In Arizona you are permitted to have up to $150,000 in equity in your home that creditors cannot touch. This is true if you are going through bankruptcy as well.

So long as you continue to make the monthly house payment and dont have more than $150,000 in equity you are fine and you will not lose your home simply because you filed for bankruptcy.

What If I am Behind on My House Payment?

If you are behind on your house payments or if your house is in foreclosure then chapter 7 may not be the best chapter of bankruptcy to file and keep your house. You would likely want to file a chapter 13 case which is better suited to helping consumers get caught up on their missing house payments and begin making the regular payment going forward.

So, if you are dealing with large amounts of credit card debt or medical bills and you need some relief bankruptcy can be a good option to eliminate the unsecured-type debts, keep your home, and get your fresh start.

Thinking of Bankruptcy? Want More Information? Check out My Bankruptcy Video Course!

This on demand video course will give you all the nuts and bolts of a chapter 7 and chapter 13 bankruptcy and help you in your decision process. Click HERE for more information.