Posts Tagged ‘Financial Planning’

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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 »

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.

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 »

Poor Credit Scores and Bankruptcy

Monday, November 28th, 2011

“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,” says Bert Briones, an Irvine bankruptcy attorney.

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. 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, Bankruptcy Alternatives, Chapter 11, Chapter 13, Chapter 7 | 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 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 »

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 »

How is my Spouse Affected if I File Bankruptcy?

Monday, September 12th, 2011

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Posted in Bankruptcy, Chapter 11, Chapter 13, Chapter 7 | 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 »

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