Archive for the ‘Debt Settlement / Debt Negotiation’ Category

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

What is a “Discharged Debt”?

Wednesday, November 2nd, 2011

“You often hear about filing a bankruptcy case and discharging debt, but what does this really mean?”, says Bert Briones, Principal Attorney at Red Hill Law Group PC, an Irvine, CA Bankruptcy law firm.

The term “discharging debt” means that the debtor’s personal liability for the discharged debts is removed.  A discharged debt is essentially eliminated.  A debtor receives his debt discharge order from the judge at the conclusion of the case. 

Once a debtor has been discharged, creditors may not take any collection action against the debtor for the discharged debts.

Dischargeable Debts

It is important to understand that not all debts are dischargeable.  Most unsecured debts (those not secured by collateral) are dischargeable.  However, the Bankruptcy Code excludes specific debts from discharge, depending on the chapter under which the debtor filed.

What Debts Are Typically Not Dischargeable?

Chapter 7 is one of the most common types of bankruptcy filed by consumers.  Under the Bankruptcy Code, there are nineteen different types of debts excluded from discharge.  Below is a list of some of the more common non-dischargeable debts under Chapter 7:

-  child support

-  alimony (spousal support)

-  most student loans

-  some tax debt

-  government fines

-  fines for injury caused by drunk driving

-  debts resulting from intentional property damage

-  debts the debtor did not include on the bankruptcy petition

The other type of bankruptcy commonly filed by consumers is a Chapter 13.  A Chapter 13 is less restrictive concerning the types of debts that may be discharged. Debts that may be discharged under Chapter 13 but not Chapter 7 include:

-  property-settlement debt from divorce or separation proceedings

-  debts resulting from intentional property damage

-  debts incurred to pay otherwise non-dischargeable tax obligations

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 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.

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

http://bankruptcyattorneyirvinesite.com

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Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7, Credit Scores, Debt Settlement / Debt Negotiation | 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.

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 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.

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

http://bankruptcyattorneyirvinesite.com

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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

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 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.

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

http://bankruptcyattorneyirvinesite.com

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

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.

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 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.

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

http://bankruptcyattorneyirvinesite.com/

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

How Does Bankruptcy Affect My Credit?

Tuesday, June 28th, 2011

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

Red Hill Law Group, PC Announces Enhanced Internet Presence Through New Video

Thursday, June 23rd, 2011

Read the full press release below:

http://www.onlineprnews.com/news/149620-1308780981-red-hill-law-group-pc-announces-enhanced-internet-presence-through-new-video-educational-series.html

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Posted in Bankruptcy, Bankruptcy Alternatives, Chapter 11, Chapter 13, Chapter 7, Credit Scores, Debt Settlement / Debt Negotiation | No Comments »

What is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Friday, June 17th, 2011

“Trying to figure out whether to file Chapter 7 or Chapter 13 can be difficult,” says Bert Briones, an Irvine, CA bankruptcy attorney at Red Hill Law Group, PC.  “Making the wrong decision can be disastrous to your particular situation.”

A Chapter 7 bankruptcy is often called a “straight bankruptcy” or just “bankruptcy”.  A Chapter 13 is sometimes termed a “wage earners” plan.

Important features of a Chapter 7 bankruptcy include:

  • Quick results, usually 3 – 4 months to complete
  • If you pass the “means test“, you can still file Chapter 7 even if your income is higher than the average
  • You have to give up any non-exempt property, and depending on your case, that can vary
  • You can keep your exempt property (varies by state)
  • You will not have to make monthly payments to a trustee
  • You may get to keep your house and car as long as you pay your loans on time

Important Features of a Chapter 13 bankruptcy include:

  • A home foreclosure can be stopped through an “automatic stay“
  • You must have a steady income
  • A monthly payment plan for up to five years is paid to a trustee
  • A possible lien strip may be done, eliminating a second mortgage on a home
  • Repay some or all of your debts
  • If your income is higher than average, a Chapter 13 filing is more probable than a Chapter 7

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 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.

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

http://bankruptcyattorneyirvinesite.com/

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Three Alternatives When a Chapter 13 Plan Becomes Difficult

Thursday, June 9th, 2011

Are you having trouble making your Chapter 13 monthly payment?  “If you find you cannot make the monthly payment in a confirmed Chapter 13 plan, there are choices for you,” says Bert Briones, Principal Attorney at Red Hill Law Group, PC, and Irvine, CA bankruptcy law office.

Financial Hardship

A hardship discharge may be an option if there has been a decrease in income without an indication of improvement.  All debts, except for those that would have been non-dischargeable under Chapter 7 are discharged.  In addition, the debtor will have to prove that the plan cannot be completed due to unforeseen occurrences, and that the creditors have received as much repayment as would have been received if filed under Chapter 7.

Modification

The debtor is allowed to modify the terms of the Chapter 13 plan according to the Bankruptcy Code, or even apply for a discharge before completing the payments.  Because of the flexibility of Chapter 13, the time span of the plan may be shortened or lengthened (to not more than 5 years) and/or the plan payments may be increased or reduced.  The flexibility of Chapter 13 can be beneficial for those people who have experienced an unplanned expense.

Conversion

Converting a Chapter 13 to Chapter 7 can be helpful if the debtor is now willing to surrender a home that the he or she was previously trying to keep while in Chapter 13.  Protection against creditors is still in effect as well.

Be proactive and do not wait for a motion for case dismissal!  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 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.

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

http://bankruptcyattorneyirvinesite.com/

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

Alternatives to Chapter 7 Bankruptcy

Wednesday, May 25th, 2011

“There are alternatives to filing Chapter 7 bankruptcy,” says Bert Briones, an Orange County, CA bankruptcy/personal finance attorney with Red Hill Law Group, PC.

Chapter 11 Bankruptcy

A Chapter 11 bankruptcy filing may be an alternative for debtors who may prefer to remain in business and avoid liquidation.  Under Chapter 11 of the Bankruptcy Code, the debtor may request a debt adjustment by extending repayment terms and/or reducing the amount of debt.  A more comprehensive reorganization plan may also be sought by the debtor.

Chapter 13 Bankruptcy

A Chapter 13 filing may be an option to explore for debtors who have a steady income and are seeking an adjustment of debts.  A Chapter 13 is often termed a “wage earners” plan and is a powerful tool that enables the debtor to protect property in times of financial hardship.  Once a Chapter 13 petition has been filed, the debtor has the opportunity to save a home from foreclosure.  A Chapter 13 repayment plan covers a timespan of three to five years.

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 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.

Watch our Video:

What is Chapter 13 Bankruptcy?

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Posted in Bankruptcy, Bankruptcy Alternatives, Chapter 11, Chapter 13, Chapter 7, Debt Settlement / Debt Negotiation | No Comments »

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