Bankruptcy & Foreclosure Defense

Bankruptcy, Foreclosure, Chapter 7, Chapter 11, Chapter 13, Credit Card Negotiation, Credit repair

Bankruptcy-Debt matters

Credit Scores rule.

When your credit score is plummeting because there is insufficient “disposable income” at the end of each month to make a meaningful debt payment, Debt Options must be given serious consideration.

Bankruptcy is more misunderstood than any other financial or legal tool available to consumers. Ask yourself a few simple questions:

  • Do you feel like you are drowning in debt?
  • Is your home or your car at risk of being taken?
  • Is your debt affecting your personal or family health and well-being?
  • Are the creditors harassing you?

If you answered yes to any of these questions then you owe it to yourself to talk to a bankruptcy attorney regarding whether you should file Bankruptcy.  The United States Bankruptcy Codes offer relief to those that qualify. If your debt load has reached the point where you are now working for the debt settlement company, bankruptcy can help you get a “fresh start.”

Many people, families and businesses struggle to pay their bills each month. No matter how hard they try, they simply do not have enough cash to catch up. They experience stress, anxiety and even despair just trying to figure out how to manage their financial challenges and have it all work. For many, this often seems like a game they can’t win, that there is no hope to end the cycle of debt, hopelessness and the game of trying to “catch up.”

Debt Consolidation/Negotiation
Credit Card Settlement
Foreclosure Defense
Loan Modification
Chapter 7
Chapter 11
Chapter 13

Bankruptcy is not a moral or emotional decision, it is financial decision based on factors such as amount of debt, income, and monthly cash flow.

Our team focuses on resolving the issues that you are dealing with through solutions tailored to meet your unique needs. Whether you are drowning in credit card debt, struggling to get caught up on medical bills or your business is threatened, we can help you find an effective solution.

Foreclosure Defense- Loan Modification

Even if you have already received a loan modification from your lender you can qualify for a new loan modification as long as you have a new hardship.

What is Chapter 7?

Chapter 7 Bankruptcy, sometimes called “liquidation bankruptcy” or “straight bankruptcy” is generally the simplest and quickest form of bankruptcy. Chapter 7 Bankruptcy is available to individuals, married couples, corporations and partnerships. With Chapter 7 Bankruptcy you turn over all of your non-exempt property to the bankruptcy trustee who then converts it to cash for distribution to your creditors. Most people have no assets to offer to pay off creditors; in this case Chapter 7 Bankruptcy will give you a clean slate, in a relatively quick manner.

The main purpose of Chapter 7 Bankruptcy is to discharge certain debts, so that you can have a “fresh start.” You will have no personal liability for discharged debts after the filing and completion of your Chapter 7 Bankruptcy case. In a Chapter 7 Bankruptcy case, however, a discharge is available only to individual consumers, not to partnerships or corporations.

What is Chapter 11?

Chapter 11 Bankruptcy is basically reorganization bankruptcy. Chapter 11 Bankruptcy is available to individuals, partnerships, and corporations. With chapter 11 Bankruptcy there are no limits on the amount of debt you have, as opposed to Chapter 13, which does have debt limitations. Chapter 11 Bankruptcy is usually the form of bankruptcy that large businesses choose when seeking to restructure their debt.

Individuals may also file Chapter 11, but due to the complexity and great expense of the chapter 11 Bankruptcy proceeding, this option is rarely advantageous for debtors who are eligible for Chapter 7 or Chapter 13 bankruptcy, therefore most individuals opt to file Chapter 7 or Chapter 13 Bankruptcy rather than Chapter 11.


What is Chapter 13?

Chapter 13 is sometimes referred to as a wage earner’s plan. This form of bankruptcy enables individuals with regular income to present a plan to repay all or part of their debts. Under the Chapter 13 Bankruptcy law, debtors propose a repayment plan for creditors to make installment payments to creditors over three to five years.

If your current monthly income is less than the applicable state median, the plan may be for three years unless the court approves or requires a longer period of repayment under Chapter 13 Bankruptcy law.

If your current income is greater than the applicable state median, the Chapter 13 Bankruptcy plan generally must continue for five years. A Chapter 13 Bankruptcy plan cannot provide for payments over a period longer than five years. During this time Chapter 13 Bankruptcy law forbids creditors from initiating or continuing collection efforts.

The bankruptcy process should always begin with speaking with a qualified bankruptcy attorney. Our bankruptcy attorneys:

  • Are experienced in representing clients in Chapter 7 and Chapter 13 bankruptcy cases
  • Stay up to date with the latest developments in bankruptcy laws
  • Have the latest technology and staff necessary to fully represent your interests in bankruptcy court
  • Offer free initial consultation
  • Are located right in your community!

We serve the entire state of California and look forward to helping you get a fresh start. Get your Fresh Start right now.


2 comments on “Bankruptcy & Foreclosure Defense
  1. General Overview of Loan Modifications

     Department of Justice Loan Modification
    Federal Government and State Attorneys General Reach $25 Billion Agreement with Five Largest Mortgage Servicers to Address Mortgage Loan Servicing and Foreclosure Abuses
    $25 Billion Agreement Provides Homeowner Relief & New Protections, Stops Abuses
    In January of 2012 the Department of Justice settled with Bank of America, Chase, Wells Fargo, GMAC (Ally Bank) and Citi Mortgage for Twenty Five Billion Dollars $25,000,000,000.00.

     Under the terms of the agreement, the servicers are required to collectively dedicate $20 billion toward various forms of financial relief to borrowers.  At least $10 billion will go toward reducing the principal on loans for borrowers who, as of the date of the settlement, are either delinquent or at imminent risk of default and owe more on their mortgages than their homes are worth.  At least $3 billion will go toward refinancing loans for borrowers who are current on their mortgages but who owe more on their mortgage than their homes are worth.  Borrowers who meet basic criteria will be eligible for the refinancing, which will reduce interest rates for borrowers who are currently paying much higher rates or whose adjustable rate mortgages are due to soon rise to much higher rates.

     The terms are simple if you are past due on your mortgage from January 1, 2012 and your loan is not owned by Fannie Mac, Freddie Mac, HUD or VA you may qualify for the Department of Justice Loan Modification.
    Making Home Affordable Principle Reduction Loan Modification
    This new loan modification brought to us by the Federal Government in May of 2012 not only helps borrowers get a loan modification on their primary residence but also on any residential investment properties. As we see in the above referenced Department of Justice Modification, HAMP Tier Two helps borrowers by lowering their principle balance to 100% of their balance, lowering their interest rate to two percent. Fannie Mae, Freddie Mac, HUD & VA are all participating in the new HAMP Tier Two along with most lenders and investor.

    The average review period for the HAMP Tier Two is thirty to sixty days. However you must have received your loan before January 1st 2009 and your balance cannot be over $729,000.00.

    Even if you have already received a loan modification from your lender you can qualify for a new loan modification as long as you have a new hardship.

  2. Filing Bankruptcy Under the New Bankruptcy Laws in 2014

    The bankruptcy laws haven’t seen much update since the 2005 BAPCPA reform, and filing bankruptcy in 2014 is virtually no different than any other recent year.

    In order to file, you must take a credit counseling course. If you intend to file Chapter 7 bankruptcy, you must qualify under the means test, which compares your disposable income to your total amount of debt.

    Is it harder to file bankruptcy under the new law?
    Not really. It’s certainly “harder” in the sense that it takes more work. And that may work to the advantage of the credit industry, since some consumers will be discouraged by the additional requirements. However, with the assistance of a local bankruptcy attorney, the process is still quite manageable.

    In the more significant sense, it’s not much harder to file for bankruptcy. The new legislation was supposed to weed out “abusive” filers-the ones the credit industry thought were running up credit card bills knowing that they could “always file bankruptcy”.

    But the industry (and Congress) overlooked some very important information-information that consumer bankruptcy attorneys and other consumer advocates attempted repeatedly to share with them.
    Those “abusive” filers made up a very small percentage of bankruptcy petitioners. The vast majority of people filing bankruptcy do so because of huge medical bills not covered by insurance, divorce, job loss, or a death in the family.

    Early reports from credit counseling agencies indicated that fewer than 4% of prospective bankruptcy petitioners had any other realistic options.

    Fortunately, many people are not disqualified from filing for bankruptcy protection under the new law.

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