Posts Tagged ‘Creditor’

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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 »

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.

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, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Scores, Creditor Harassment | No Comments »

How Bankruptcy Protects You

Saturday, December 31st, 2011

“One of the biggest benefits to filing for bankruptcy is the fact that the debtor gains certain protections under bankruptcy law. This can help protect a person’s car, house, paycheck, and even their sanity,” says Bert Briones, an Irvine bankruptcy attorney. 

Filing for bankruptcy protects a person’s assets by keeping creditors from being able to seize them. Chapter 13 bankruptcy does this by restructuring debt and creating a three-to-five-year-long repayment agreement that both debtor and creditors must adhere to.

Chapter 7 bankruptcy does this by eliminating debt by selling off some assets in order to pay it off. Though chapter 7 causes debtors to lose some of their assets, it protects their other ones, like their homes. 

In certain situations, some creditors can garnish a person’s wages in order to repay their debt. Though this usually doesn’t impact things like welfare or social security payments, some debtors may need to take extra steps to protect these forms of income, as well. Filing for bankruptcy can stop wage garnishment in its tracks, allowing debtors to keep their entire paychecks instead of losing them to creditors. 

Once a person files for bankruptcy, creditors are subject to a restraining order that prevents them from continually harassing that person. Though there are laws that determine what creditors are and are not allowed to do or say when contacting debtors, a lot of them don’t abide by these laws very well, and many debtors are still subject to undue harassment from unscrupulous collection agencies.

Filing for bankruptcy makes it contempt of a federal restraining order for creditors to continue to contact the filer. This makes it a very attractive option for people whose daily lives are being negatively impacted by the amount of phone calls and letters they receive from their creditors. 

When it comes down to it, bankruptcy helps both debtors and creditors. It helps creditors by getting them their money, and helps debtors by protecting them from harassment, wage garnishment, and having their assets seized. Though the decision to file for bankruptcy is a serious one that has long term impact on a debtor’s credit history, it is ultimately beneficial for the people who have a lot to lose.

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, Chapter 11, Chapter 13, Chapter 7, Creditor Harassment | No Comments »

5 Tips to Avoid Foreclosure

Thursday, November 17th, 2011

“Foreclosures seem to be an epidemic spreading across our country,” says Bert Briones,  of Red Hill Law Group PC, an Irvine, CA bankruptcy law firm, “and there are five important tips for keeping your home out of foreclosure.”

Don’t Ignore Your Mortgage Problem

If you are struggling to pay your mortgage, or have already missed payments, you should immediately contact your lender and work with them to resolve the problem.  The sooner you contact the lender, the more options that will be available to you. 

Be Prepared 

Before you talk to your lender, review your mortgage loan documents, your budget, and your income.  Knowing exactly where you stand financially is vital to negotiating an amount you can afford.  It may be wise to have an attorney assist you in your negotiations.

Know Your Options 

You should educate yourself, or have your attorney educate you, on what your options might be.  Figure out whether you need a short-term solution or a more permanent option.  It is possible the best option may be to sell your home. 

Make a Plan and Stick to it 

If you negotiate a new mortgage payment, be sure to pay it.  This may require you to eliminate optional expenses (like eating out or cable TV), but prioritizing your bills is essential.  You want to protect your credit score by making timely payments.

Beware of Foreclosure Rescue Scams 

Scam artists are popping up everywhere to provide “foreclosure counseling” services.  Before you work with anyone, do your research to confirm that they are legitimate.

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 | 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 »

5 Steps to a Higher Credit Score After Bankruptcy

Thursday, September 22nd, 2011

“If you do a nice job managing your credit after bankruptcy, a relatively strong FICO score is possible,” says Bert Briones, Principal Attorney at Red Hill Law Group, PC, an Irvine, CA bankruptcy law firm.

Step One – Save Money While Rebuilding Credit

Having liquidity shows lenders that you can manage money. Over time, your FICO score should strengthen and additional loans for higher amounts should become available.  Many lenders, especially online, specialize in working with borrowers with a history of bankruptcy, which may result in lower interest rates than a local bank.

Step Two – Check Your Credit Reports

Upon receipt of your bankruptcy discharge, ensure that you have everything removed from your credit report that was listed in the bankruptcy.  For a Chapter 7 bankruptcy, the accounts listed on your credit report should have no balance.  If the information has not been updated, write a letter to both the creditor and credit reporting company to clear it up. 

Step Three – Keep Your Expenses and Debt Low

Keep your debt/income ratio as low as possible, as it can be a sign of how risky you are.  The lower the ratio of debt to your income, the better credit risk you should be.

Step Four – Make Your Payments on Time

Post-bankruptcy, all of your bills must be paid on time.  Lenders will want to see a history of at least two years of payments made on time, and the longer you pay your bills on time, the more your credit score will improve.

Step Five – Use Secured Credit Cards

Slowly rebuild your credit by using a secured credit card (or even more than one).  The secured credit card will have a credit line equal to the deposit made to the issuer. 

A 30% balance on the card is a fair balance to maintain, while paying off everything over this amount through on-time monthly payments.  This will help show creditors that you can manage credit.

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 | No Comments »

What Property Do I Get to Keep After Filing Bankruptcy?

Tuesday, July 19th, 2011

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Posted in Bankruptcy, Chapter 13, Chapter 7 | 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.

 For a Free Bankruptcy Guide, please use the link below:

http://orangecountybankruptcysite.com/

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

How Can I Avoid a Credit Repair Scam?

Tuesday, March 15th, 2011

Have you recently seen or heard a radio, television, or Internet advertisement featuring credit repair services that sound too good to be true?  A simple phone call and a promise is often all is takes to guarantee “easy credit repair”, “but be warned,” says Bert Briones, an Orange County, CA bankruptcy/personal finance attorney.

Consumers desperate for help are being targeted by these services to help eliminate bad credit “overnight”.  As a result, a high fee structure, coupled with a minimal or no positive result is often the case.

Identifying scams is not easy, but here are some ideas to help you weed-out disreputable companies:

  • The credit repair company requires a full payment up front, in order for services to begin
  • You are told to dispute all information on your credit report in writing, regardless of its accuracy
  • You are guaranteed to have  all credit information removed from your credit report, despite the information being true
  • You are instructed not to contact the credit reporting agencies because the credit repair company will do it for you

Do not be an unsuspecting consumer.  Completing any of the above actions may get you in serious trouble.  In addition, withholding truthful information on a credit application is a crime due to misrepresentation. 

Time and patience will help you more than anything else, as credit repair is not an easy task.  If you choose to seek out assistance from an outside party, it is advisable to ensure that the service is legitimate and has the experience you need and strong references to prove it.

If you have questions regarding credit repair, debt settlement, or bankruptcy, please call Red Hill Law Group, PC directly at 877-343-3289, or use our contact form and you will be contacted within the next business day.

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Posted in Bankruptcy, Bankruptcy Alternatives, Chapter 11, Chapter 13, Chapter 7, Client Help, Credit Reform Act, Credit Scores, Creditor Harassment, Debt Settlement / Debt Negotiation | 1 Comment »

The Seven Most Common Bankruptcy Mistakes

Monday, February 21st, 2011

“The actions you take leading up to bankruptcy can drastically affect your journey through the bankruptcy process” says Bert Briones, Principal Attorney of Red Hill Law Group PC, an Orange County, CA bankruptcy law firm.  “You definitely want to pay attention to these seven potential trouble spots.”

The credit card run-up mistake:
The best thing to do is to not use your credit cards once you have decided to file for bankruptcy. Consumer debts that you incur for luxury goods and services owed to a single creditor in excess of $600 within 90 days of filing are presumed to be non-dischargeable and may be found to be due and owing! Even cash advances of more than $875 within 70 days of filing are presumed to be non-dischargeable and may also be found to be due and owing.

The repay a family member mistake:
When it comes to repaying debts, you cannot treat a family member any better than you would an ordinary creditor. As a matter of fact, a bankruptcy trustee can reclaim any amount repaid to a family member within one year of filing.

The transfer property out of your name mistake:
A bankruptcy trustee can go so far as to undo a transfer of property that previously belonged to you. This surprising event can occur if the transfer took place within four years of the filing with the intent to hinder, delay, or defraud a creditor.

The liquidate your retirement account mistake:
Your retirement accounts are generally protected. You can eliminate your debt and keep whatever you have in an ERISA qualified account, free and clear. Too many individuals empty their retirement accounts in a desperate attempt to pay down their credit card debt.

The line of credit/second mortgage to pay off debt mistake:
Don’t take a loan against your real estate in an attempt to reduce the equity. You can often file bankruptcy and not lose this valuable asset. If you take out a second mortgage to pay credit card debt, you may be putting your home at risk.

The failure to appear at court proceedings mistake:
If there is a collection case pending against you in state or federal court, don’t assume that you can avoid the court process simply because you have decided to file bankruptcy. Until your bankruptcy case is actually filed, a collection case can continue.

The failure to tell your attorney the truth, the whole truth, and nothing but the truth mistake:
Your attorney can only provide advice that is based upon information provided by you. Failure to notify your attorney about your assets can lead to the loss of those assets, denial of your bankruptcy case, fines, imprisonment, or all of the above.

Red Hill Law Group PC is available to answer all of your questions regarding bankruptcy and alternatives to bankruptcy.  Please call us at 949-468-0915 or use our contact form.

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

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