Do I Need a Bankruptcy Attorney?
There is a lot more to bankruptcy than filling out paperwork. If you are going to file, then you might want to do some bankruptcy planning with an experienced bankruptcy lawyer. When you file for bankruptcy, it is the United States Trustee who is assigned to your case job to review your assets and debts and take whatever assets they can away from your estate. Trustees are often accountants who are very experienced examining financial matters. It is thus important to be as accurate as possible in your paperwork and disclose everything completely and honestly.
Bankruptcy law provides for certain exemptions that help debtors keep a portion of their property. If you don’t claim as exempt the property you wish to keep correctly, it may be required to turn it over to the Trustee.
At BKMODESTO we can guide you through this process and help you keep everything you possibly can. Call our office in Modesto so we can answer all your questions.
Fees & Payment Plans
If you add up your bills and consider how much monthly debt you owe just to pay consumer debt for credit cards, medical bills and other expenses, they are often much more than most people realize. Filing bankruptcy can offer you a fresh start with no consumer debt following you.
Our attorney will help you claim as exempt as much property as possible while getting rid of your dischargeable debt.
With BKMODESTO, bankruptcy can be the reason why you can start over and help your credit score rise with all the consumer debt discharged. It may give you a feeling of huge relief to no longer be paying those consuder debts.
Our attorney will help you get back to zero consumer debt by preparing your chapter 7 bankruptcy case paperwork.
Our lawyer often works on a flat fee basis, so if you have questions and feel the need to call us, we will return your calls without sending an extra bill. Some of the time, you will need to obtain old statements and records which we may not be able to locate.
When you come into our office we will give you a checklist of everything you need to provide to us along with some easy forms to fill out. Your role is simply to get us your information and we will take care of all the paperwork details.
We will prepare your petition, including all schedules and forms, and file your paperwork at the bankruptcy court. Our attorney will often appear with you at the trustee meeting of creditors, and offer you continued advice and counsel.
Contact our BKModesto bankruptcy office today for a free helpful consultation.
Considering bankruptcy
Bankruptcy is Nothing to Fear
The word Bankruptcy strikes fear in the hearts of many Americans. It has a negative view of some people but the reality is that many people have filed bankruptcy in their lives, at least once.
Credit card companies and banks have done an excellent job making bankruptcy look like an evil alternative or “rock bottom.” The truth is that bankruptcy is a huge benefit to Americans in financial distress. You may be able toeliminate all of your consumer debt and your credit score comes back much quicker than most believe. People who file for bankruptcy can often purchase a car right away and sometimes buy a house within a short number of years. It’s not uncommon for someone to file for bankruptcy and increase their credit score quickly within a year or two by paying all bills on time.
Reasons for Filing Bankruptcy
If you are thinking of filing for bankruptcy then you have plenty of company because between 2008-2012, much of the country was under some type of financial distress. In particular, the Central Valley of California was hit the hardest by foreclosures and bakruptcy filings. Most of those bankruptcy filers recovered by filing and discharging their consumer debts.
Most Americans prefer to pay their debts. However, because of job loss, business failure, divorce, etc., they aren’t able to pay their bills so they turn to bankruptcy. Whatever the reason, if you are unable to maintain your payments and feel like you have less money available every month, you should look at your consumer debt and decide how much more free you will feel by discharging your consuder debts.
Alternatives to Filing Bankruptcy
If you have more debt than you can handle, the problem with not filing for bankruptcy is that your debt will stay around and continue to haunt you. So long as your debt exists, you will continue to have problems making payments to your creditors. Eventually, your creditors may sue you and garnish your wages, or levy on your bank accounts. Your credit will be bad for a while and can be worse by not filing bankruptcy if judgments and repossessions are completed. By filing for bankruptcy you will instantly relieve yourself of all the debt you can’t afford. If you purchase a few things on credit after your bankruptcy case is discharged, such as a car, furniture, etc., you can immediately start rebuilding your credit.
Our bankruptcy office in Modesto waiting to help you file and get debt relief, so call us now.
Bankruptcy process
1st Step
Gather all of your information
When you make an appointment at BKMODESTO, you don’t need to bring everything. However, we will suggest you begin to gather information including your pay stubs, all your current and old bank statements, some tax returns as well as fill out a questionnaires].
You are required to take two very financial classes online. You must take the first class before you are allowed to file your bankruptcy petition. Print out the course certificate when you complete the bankruptcy courses. Once you have gathered all of your information for us, most of your work is done. Remember, that you must complete the first course to even file your case.
2nd Step
Filing for Bankruptcy
Your bankruptcy attorney will file a petition for you that will list all of your assets, debts, property and statement of financial affairs. It is extremely important to disclose everything you own and owe, so that your lawyer can properly exempt your assets. Bankruptcy law requires that you disclose everything you own and everything you owe, under penalty of perjury. Once your petition is ready to be filed your lawyer will ask that you review it to make sure it is accurate. During your bankruptcy hearing the United States Trustee will ask you, under oath, if you reviewed the petition, if it is accurate and if you need to make any changes to it. Accuracy, honesty and transparency are very important and required.
3rd Step
The Meeting of Creditors
A few weeks after your bankruptcy petition is filed you must attend a meeting with the United States Trustee. If there was a joint bankruptcy filing, then both spouses must appear. Creditors are allowed to appear and object at the meeting, however, it is rare that creditors show up. If a creditor shows up to ask you questions, they can ask about your income sources, about any assets they believe are hidden, or large sudden changes in your bank accounts, credit cards, or where property is located. If an objection is raised during the hearing the judge will later make a ruling on it. It’s important to note that the Trustee is not a bankruptcy judge. In fact, in a chapter 7 bankruptcy, the debtor rarely ever sees a judge. Besides this hearing, all you are required to complete is your second financial class online referred to as the “debtor education.” Those are usually the only two things you must do post bankruptcy filing to get your discharge.
4th Step
If you filed a Chapter 13 Bankruptcy
If you are filing a chapter 13 then your attorney will have a repayment plan, detailing how much money you will be repaying every month toward your creditors. Repayment plans are often 36 month or 60 month plans. The bankruptcy plan takes into consideration all of your income less all of your expenses including food, gas, groceries, mortgage, etc. What you have left is disposable income which is the amount that will be distributed to your unsecured creditors. That is the amount you will be paying over the next 3 to 5 years. You would be paying the United States Trusee every month according to the plan.
5th Step
The Meeting of Creditors
A judge will have to approve your chapter 13 plan in order for it to go into effect. As long as the judge accepts your plan and you make your payments on time, then any debt remaining at the end of 3 or 5 years is discharged forever. Of course, if you filed a chapter 7 bankruptcy, this step never applies. No plan for repayment is required under Chapter 7 bankruptcy.
Our bankruptcy office in Modesto can help you eliminate your debt, so call us right away to schedule a free consultation!
WHY YOU SHOULD NOT FEEL BAD ABOUT FILING BANKRUPTCY
Our Economy
The American economy thrives on consumer spending. About 65% of our gross national product comes from American spending. Everywhere we look, whether it’s TV, the Internet or radio, we are bombarded with advertisements telling us to buy. These advertising techniques convince people to spend their money even when they don’t have anything. Even the people that can’t afford to spend are encouraged to buy things on credit. Credit card companies hound people to buy things on credit even when these people are paying super high interest rates that they obviously can’t afford. Billions of credit card solicitations were sent to American residents over the past few years, even to those with bad credit ratings. Credit card companies know that people with bad credit will pay high interest rates leading to incredible profits.
When You Need Help
What happens when you call your credit card companies and ask for a little break? Do they bend over backwards to lower your interest rate or payment? Of course not. They invariably reject their clients. People today are getting virtually no help from their credit card companies as they simply demand that you make payment at twenty something percent interest. Worse yet, if you miss one payment, your interest rate sky rockets. So, when it comes time to file for bankruptcy, you shouldn’t be shedding any tears. If you are considering hiring a bankruptcy lawyer and you are in the Modesto area, contact us right away.
Guidelines for pre-bankruptcy planning
01.
Don’t transfer property to friends or relatives
A lot of people think that they can simply hand off all their assets to their relatives, and then file for bankruptcy. Wrong. If you have engaged in these types of transfers you need to see an attorney ASAP. These actions are often considered fraudulent and you will not be allowed to discharge such debts associated with those items. There are laws designed to turn your papers over to the Dept. of Justice if you attempt to defraud. Thus, honesty and accuracy is important and required.
02.
Report all of your pre-filing transactions
Make sure you report everything that was transferred to you and everything that you transferred to others. The documents that you sign in bankruptcy are under penalty of perjury so you don’t want to get yourself into trouble. If the trustee feels as though you are playing hide the assets, he can deny your discharge outright. Remember, the Trustee is normally an accountant who can spot unusual matters in bankruptcy paperwork.
03.
Buy and sell at market value
If you need to sell you car because you need the money, that’s fine as long as you sell it for market value. Such sales and transfers must be reported and you must keep clear records with proof of the amounts, cancelled checks, a written contract and the DMV paperwork. A property appraisal for the current value is also recommended to establish current value. If you sell a car worth $10,000 for $1,000 to your relative, then that could raise a fraud issue. If you happen to get a great deal on something and it increases your net worth, then that’s okay.
04.
Don’t change the form of property ownership
Don’t change the form of ownership with your assets right before filing for bankruptcy. A judge could look at these last second transactions as fraudulent. The closer you are to bankruptcy, the more fraudulent it looks.
05.
Don’t go out on a spending spree
If you know you are going to file for bankruptcy, then you can’t make large transactions on your credit card. For example, don’t pull out a cash advance or go out and buy a diamond ring right before filing bankruptcy. Chances are you will have to pay the money back. However, if you made a large credit card transaction many months before filing, and have been making regular payments for awhile, then you are not as likely to be under suspicion.
06.
Tell your attorney everything
Make sure disclose all of your assets and liabilities to your attorney. Failure to disclose is a huge problem if assets are not disclosed. For example, if you are about to receive gambling or lottery winnings but haven’t cashed the ticket, and decide to try and discharge your debts without declaring the winnings, this is nondisclosure and appears as fraudulent. Remember, surprises are not a good thing when it comes to bankruptcy.
Our bankruptcy office in Modesto can help you eliminate your debt, so call us right away to schedule a free consultation!
Chapter 7 bankruptcy
The Basics
A Chapter 7 bankruptcy is the easiest way to get rid of all your debt and start over. The person filing the bankruptcy is referred to as the “debtor” and they usually can keep everything they own. This includes their furnishings, clothes, retirement, cars, house, and even cash. There is a limit on some of the property they can keep, but few bankruptcy filing debtors exceed it. Our lawyer helpe debtors get debt relief. Our staff is knowledgeable and willing to help our clients get through their tough times. We offer personalized service where you get to meet with the attorney face to face. Contact us for a free consultation today.
We can help you understand the bankruptcy process and how the laws apply to you.
You should take advantage of our consultation and figure out whether bankruptcy is right for you. Often times the key to solid credit is a fresh start.
Certain Debts Are Non-Dischargeable
In Bankruptcy certain debts are non-dischargeable such as: spousal or child support, DUI debts, most taxes, debt arising from fraud or crimes, etc. In California, debtors are allowed to “exempt property” which means they can protect their property from creditors and the trustee who is representing them. Let’s say for example a debtor has in his possession stocks, bonds, checking and savings. She will certainly want to exempt some or all of these assets so that she can keep as much as possible for herself and not have to give them to the creditors. There are limitations to these exemptions which is why you should speak to an attorney.
Taking the Next Step
A lot of people have a hard time with the fact that they are filing for bankruptcy. They come into the law office as if their life is over. After the process is over, invariably, these same people now feel as through their life has just begun. Credit card companies put out a lot of advertising to make bankruptcy appear as if it is a horrible thing. In fact, just the opposite is true. Filing for bankruptcy restarts credit by giving people the clean slate they need.
Most people don’t pay their bills because they are unable to, not because they don’t want to. Once all of their debt is erased, they find it easy to stay on top of their bills and rebuild credit. Many people that can’t qualify for a loan to purchase car, qualify soon after after a chapter 7 discharge. It’s not uncommon to have a much better credit store within a year or two after discharge. Basically, if you are having credit problems, bankruptcy may be the answer to having great credit.
If you are in Modesto or surrounding areas, our bankruptcy office can give you guidance on how to get the bankruptcy process started.
CHAPTER 13 BANKRUPTCY
Pay Over Time
The basic idea of a chapter 13 bankruptcy is to pay what you can over a 3 or 5 year period. Now, why would anyone want to do that if they could simply file a chapter 7 and get rid of their debt without paying anything? People generally file chapter 13s for 3 reasons: 1. They don’t qualify for a chapter 7 because they make too much money; 2. They want to discharge their 2nd mortgage; 3. They are behind one their 1st mortgage and they must keep their home.
Keeping your property
Most people who file a chapter 13 bankruptcy keep all of their property. If you have any unexempt property that you would lose if you filed a chapter 7, then you must propose a chapter 13 plan that will pay at least what your creditors would have received if you were to file a chapter 7 bankruptcy. The trustee gets 10% of whatever you put into the plan. This is why it’s always a good idea to be current on your 1st mortgage before filing the chapter 13. If you are late on your payments, then your home must be placed into your chapter 13 repayment plan. For illustrative purposes, let’s say you pay $2,000 a month for your mortgage. If you are late on your 1st mortgage at the time of filing then you must pay an additional $200 a month to the trustee. So it makes sense to be current on your first mortgage at all times.
Priority vs. Non Priority Debts
Many debtors pay less than 100% of their debts in a chapter 13 bankruptcy. Priority debts like child support, spousal support and most taxes, must be paid in full whether you file a 7 or a 13. Credit cards, medical bills and some 2nd mortgages are not given priority in a chapter 13 and some might be discharged outright.
Missing Chapter 13 payments
Once your chapter 13 bankruptcy plan is confirmed, then you pay the trustee and the trustee pays your creditors. If you don’t make your payments the trustee’s office will issue an order to show cause and put the matter in front of a judge for dismissal. In other words, you must keep current on your payments.
Our bankruptcy office in Modesto can help you reduce or eliminate your debt
For more information regarding halting creditors in bankruptcy, please contact our office in Modesto today for a free consultation!