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When Bankruptcy Is Not an Option

Tuesday, January 31st, 2012

“It’s a common misconception that all debts can be erased with chapter 7 bankruptcy, but this isn’t the case,” says Bert Briones, an Irvine bankruptcy attorney . “Some debts are “non-dischargeable debts,” and cannot be eliminated by filing for chapter 7, regardless of the circumstance.”

These debts include criminal fines (like court fees or penalties), and back taxes. You may also not attempt to discharge any debts incurred as a result of criminal activity. For example, if you were charged with negligent homicide, you cannot attempt to use chapter 7 bankruptcy to discharge any debts related to the victim’s death, even if they are not court fees or fines.

Debts incurred due to fraud or false information will not be considered dischargeable. Fraudulent debts are those that you rang up knowingly before filing for bankruptcy. For example, if you obtained a new credit card, charged it to the limit purchasing items subject to bankruptcy exemption, and then filed for bankruptcy less than ninety days later, that debt will not be discharged. Similarly, if you lied on a credit card application in order to obtain the card, any debt incurred on it won’t be eligible for chapter 7.

Any debts that weren’t listed on your original bankruptcy filing also will not be discharged. When you file for bankruptcy, it is your responsibility to list all of your dischargeable debt. Any that you neglect to mention will not be considered at that time.

Alimony or child support is also not dischargeable, however divorce settlements may be if it is mutually agreed upon by your former spouse.

Lastly, you also cannot use chapter 7 to discharge debts that you racked up paying for non-dischargeable debts. If you took out a loan or cash advance in order to pay for a fine relating to a criminal charge, for example, you are not eligible to claim that loan in your bankruptcy filing.

If your debts fall under these criteria, don’t worry. Even if chapter 7 isn’t an option for you, you might still be eligible to file for chapter 13 bankruptcy, instead, since it operates a little bit differently. Contact a good bankruptcy attorney in order to go over your complete list of debts, so you can determine whether or not you are a candidate for chapter 7 or chapter 13 bankruptcy.

If you have questions regarding Chapter 7, Chapter 11, or Chapter 13 bankruptcy, lien stripping, wage garnishment, cram down, foreclosure, asset protection, or related issues, please call Red Hill Law Group PC, to schedule a no-charge face-to-face or phone consultation with an experienced Orange County bankruptcy lawyer.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Creditor, Debt relief, Financial Planning, Orange County California, Personal Finance
Posted in Bankruptcy, Bankruptcy Alternatives, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Creditor Harassment, Debt Settlement / Debt Negotiation | No Comments »

Should I File Bankruptcy?

Wednesday, January 11th, 2012

“Bankruptcy is useful when someone’s financial obligations exceed their assets. Filing for bankruptcy has some negative connotations for a lot of people, but it’s really just a legitimate way for a person with a poor credit history to get a new chance to improve it,”says Bert Briones, an Irvine bankruptcy attorney . “Bankruptcy allows these people to eliminate or repay their debts, by restructuring their debts and allowing them to go on honoring their financial obligations under the protection of bankruptcy law.”

Though declaring bankruptcy is extremely useful for people who have wound up in over their heads when it comes to overdue bills and loan balances, it isn’t always suitable for every situation, and the decision of whether or not to declare bankruptcy isn’t an easy one. In general, it’s a good idea for a person to file for bankruptcy when they have assets that creditors can attempt to seize. This includes things like real estate, a car that’s worth over a certain value, or a job where employees’ wages can be garnished.

It is not usually necessary for someone to file for bankruptcy when they don’t meet these criteria, since the worst most creditors will be able to do is keep calling and sending letters. People very rarely end up in jail just for owing money, and creditors can’t attempt to seize your household goods, furniture, or other owned items that don’t count as assets.

Filing for bankruptcy prevents creditors from continuing to harass you, and restructures your debts so you can pay them off. Certain kinds of debts may be eliminated entirely. This will negatively impact your credit score, usually for five or ten years before the bankruptcy filing is removed from your credit history. Fortunately, most people who need to file for bankruptcy have credit scores that can’t really get much worse, and being able to reduce or eliminate their debts can actually end up making their credit better than it was before the declaration of bankruptcy.

Though bankruptcy has a long-term, negative overall impact on your credit score, it can still be a good decision for you if you have things creditors can take from you. Bankruptcy will keep them from hounding you, and give you some legal protection while you repay your remaining debts. By declaring bankruptcy, you’ll enable yourself to get a fresh start financially, and go on to build a stronger credit history for yourself.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Debt, Financial Planning, Personal Finance
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Creditor Harassment | No Comments »

Poor Credit Scores and Bankruptcy

Wednesday, January 4th, 2012

“A credit score is a shorthand reflection of the information on your credit report, sort of a “grade” you earn for doing things that impact your credit history. Paying bills on time, and doing other things that build your credit will give you a good credit score, while late payments and unpaid balances will give you a poor one,” says Bert Briones, an Irvine bankruptcy attorney .

In most situations, a credit score of less than 400 is considered poor, but some institutions will even consider a score of 500-600 less than desirable.

With a poor credit score, you are less likely to be approved for things like lines of credit and loans. You may even have trouble getting things like phone lines, cable, or other utilities. Some businesses may require customers with poor credit scores to pay a large initial deposit before giving them service. Others may refuse service entirely. You will have a very hard time purchasing a home, car, or anything else that requires a loan.

People who owe more money than they have in assets may wish to declare bankruptcy. This raises questions about how bankruptcy will impact their credit scores. Fortunately, in most cases, the news isn’t bad for them-by the time someone declares bankruptcy, there’s usually nowhere their credit score can go but up. In addition to that, the most widely used credit score, the FICO score, is calculated based on how someone matches up to other people in their demographic.

One of these demographics is reserved for bankruptcy filers, so people who have declared bankruptcy won’t be compared to people with good credit histories, only those who have also declared bankruptcy. As a result, filing bankruptcy may actually end up being a viable way to help improve your credit score, though it will still be virtually impossible to get a perfect score as long as bankruptcy is still present on your credit report.

After filing bankruptcy, there are other ways to help improve your credit score even more. The biggest one is to avoid the mistakes that caused you to declare bankruptcy in the first place. Obtain a credit card designed for people with poor credit, maintain a balance on it, and make more than the minimum payment each month. Pay all of your utility bills and mortgage payments on time. Over time, you’ll be able to rebuild your credit, and achieve a decent credit score.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

View our educational video series:

http://www.redhilllawgroup.com/orangecountybankruptcyattorney/

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Creditor, Debit card, Debt relief, Personal Finance, United States
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Creditor Harassment | No Comments »

What Are Some Major Causes of Excessive Debt?

Thursday, October 27th, 2011

“Many people are not aware of the many causes of debt that need to be avoided in the future,” says Bert Briones, a bankruptcy attorney with Red Hill Law Group PC, an Irvine, CA bankruptcy law firm.

Here are some major causes of debt that people are facing:

Poor Money Management

A monthly spending plan is very important. Without one you have no idea where your money is going. You may be spending hundreds of dollars unnecessarily each month and end up having to charge purchases on which you should have spent that money.

You will be surprised at how powerful you will feel when you are making thoughtful decisions about where and when to spend your money.

Underemployment

Are you underemployed and you have the mindset that it is only temporary? Do not give yourself a false sense of relief. Take your income and align your expenses with it. Later, you can think about spending a bit more after some stability and longevity with your income.

Medical Expenses

High deductibles, coinsurance, coverage gaps, etc., can cause a major hit to your savings. If your doctor accepts credit cards, it is not for your convenience. They want to get paid immediately. This becomes less risky for your medical provider, but can also create a huge problem with your financial situation.

Family Communication

Keep communication open between you and your spouse or significant other, as well as your children. Ensure that your financial situation and spending goals are agreed upon. Both of you need to be aware of all open credit accounts and keep each other informed about spending. Some folks find out about accounts that they never knew existed. Don’t let this happen to you.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Creditor, Financial Planning, Personal Finance
Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Debt Settlement / Debt Negotiation | No Comments »

How to Build, Maintain, and Protect Your Credit

Wednesday, October 5th, 2011

“There are several ways to build, maintain, and protect your credit and it is crucial for managing your financial situation,” says Bert Briones, Principal Attorney for Red Hill Law Group, PC, an Irvine, CA bankruptcy law firm.

A low FICO score and/or a subpar credit history could result in a loan denial and higher interest rates on credit cards, auto loans, and mortgages.

Your first action should be to obtain a copy of your credit report and check it for accuracy. One free credit report per year is allowed from Experian, TransUnion, and Equifax, by going to www.annualcreditreport.com.

Thoroughly check your report to ensure the correctness, including verification of each creditor and disputing any errors quickly.

How Can I Build Strong Credit?

Pay your bills on time. Use an “autopay” system if that would help you
Do not open lines of credit that you do not need
Keep credit card accounts open that you have had for a long time
Pay off debt rather than transfer balances to lower-rate credit cards
Keep revolving credit balances as low as possible

How Can I Protect My Credit?

Protect your personal information at all times
Do not carry your Social Security card with you
Shred your mail before discarding it
Avoid using a credit card for identification

How Can I Improve or Repair My Credit?

Pay your bills on time. Your credit score will be affected positively when your bills are paid in a timely manner, long-term
Monitor your credit report a few times a year to ensure the accuracy of the information
Get current on accounts where you are behind. Collection accounts will affect your credit report negatively

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Debit card, Debt, Financial Planning, Personal Finance
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What You Need to Know About Debt Collectors

Thursday, July 28th, 2011

“If you’re behind in paying your bills, a debt collector may be contacting you,” says Bert Briones, an Irvine, CA bankruptcy attorney with Red Hill Law Group, PC.

The Fair Debt Collection Practices Act (FDCPA) is enforced by the Federal Trade Commission to help protect consumers from collector abuse. This includes unfair and deceptive practices by a debt collector, who is someone who regularly collects debts owed to others. This may include attorneys, collection agencies, and companies that buy old debts then try to collect on them.

The FDCPA covers personal, not business debt, and includes such things as credit cards, medical, auto, and your mortgage. A debt collector cannot call you before 8:00 in the morning or after 9:00 at night, and they are not allowed to contact you at your place of business if they are told not to do so, verbally, or in writing.

Harassment, false statements, and other various activities are also off-limits for debt collectors. These include using threats of violence, using profanity, or falsely claiming to be who they are not, among others.

If you suspect that a debt collector has violated a rule under the FDCPA, contact the Federal Trade Commission (www.ftc.gov), or your state’s Attorney General’s Office.

We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.

Download our Free E-Book, “Seven Bankruptcy Mistakes That Will Keep You Chained to Your Debt” here:

http://bankruptcyattorneyirvinesite.com/

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Tags: Bankruptcy, Chapter 13 Title 11 United States Code, Chapter 7 Title 11 United States Code, Credit card, Debt relief, Debt settlement, Financial Planning, Orange County, Personal Finance
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How Does Bankruptcy Affect My Credit?

Tuesday, June 28th, 2011

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Debt Relief Law Group Top-Three Debt Settlements for April, 2011

Wednesday, May 18th, 2011

Debt Relief Law Group, a division of Red Hill Law Group PC ,an Orange County bankruptcy law firm, is proud to announce its top-three debt settlements for April, 2011:

Current Balance Settlement Amount %

$19,711 $7,020 36%

$13,376 $4,014 30%

$10,341 $3,100 30%

Often times, our clients are able to avoid bankruptcy by entering into a repayment program negotiated by the Red Hill Law Group bankruptcy alternatives team. Our bankruptcy alternatives team will work with our clients’ creditors in order to reduce original debt balances by up to 80%, coinciding with a manageable repayment plan spanning over an average of fifteen months.

Initially, our team will conduct a personal evaluation of your exact situation, including what debts are present, and your ability to repay a percentage of the debts. Following your evaluation, our team of negotiating specialists will approach your debtors to get the highest reduction possible. Often times, this entails several rounds of proposals until an agreed-upon program is reached.

Entering into a debt settlement program is not easy; it will require you to stick with the program, but you will receive continued support from our debt settlement team every step of the way. Your program will be closely monitored during the entire process, and thereafter as long as you need us.

Banks continue to settle! Don’t let anyone tell you something differently.

Please call us or use our contact form to schedule a no-charge attorney consultation, via phone or face-to-face. Evening and weekend appointments are available:

877-343-3289

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Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Client Help, Creditor Harassment, Debt Settlement / Debt Negotiation | No Comments »

What is Involved With Filing Bankruptcy?

Thursday, April 14th, 2011

“Making a decision to file for bankruptcy should not be done lightly,” says Bert Briones, an Irvine, CA bankruptcy attorney with Red Hill Law Group, PC. “You must sit down and carefully go through all of your options, debts, payback periods, and amounts.”

If you can pay off your debts in a reasonable time, it is often to your advantage to just deal with it for another three, six, or nine months and pay them off.

If you are leaning toward bankruptcy, before you make the final decision, you should sit down with an attorney and let him or her analyze your situation and give you their advice on the best route to go for you, not for your creditors.

Often times, bankruptcy choices involve legal technicalities that you will most certainly not be aware of; this is when you need the expertise of an attorney. Also, choosing which chapter to use is usually best made in conjunction with your attorney. They will certainly know much more about it and the legal problems and barriers than you will.

Once the decision has been made, then comes the collection of all the information that will be necessary for a clean and complete bankruptcy filing. This information will include bills, statements, letters (both nice ones and unpleasant ones), and any notices you have received.

You will usually also need to compile your paystubs for the last six months (more if possible) and dig up your tax returns for the past three years. This information will be required by the Bankruptcy Court in order to make an informed judgment on your behalf.

An attorney will also ensure that all of your information is put into the correct legal forms for the court to deal with. These forms can be confusing and challenging, but they will not be that way to your lawyer.

In addition, your attorney will confirm that all of the bankruptcy paperwork is properly filed in the right format, in the right office, and by the proper date. Bankruptcy courts are not known for wanting to help a petitioner straighten out all of the paperwork, forms, and documentation.

Then, there will be the matter of the Bankruptcy Hearing. In a Chapter 7 or Chapter 13, there is only one hearing required and it is normally a breeze as long as you are represented properly. Facing it yourself can be a very intimidating, confusing endeavor.

Please call Red Hill Law Group with any questions or to schedule a free face-to-face or phone consultation with an experienced personal finance/bankruptcy attorney. We can be reached at 877-343-3289, or please use our contact form and you will be contacted within the next business day.