California Bankruptcy Lawyer Blog

San Jose Bankruptcy Lawyer Talks About PACER

The US Bankruptcy Court is considered a Federal Court. This is different from a State Court because the Bankruptcy Court is not controlled by State law but is controlled by Federal Law. Federal Law is the law of the nation and, generally speaking, applies for every person in the US uniformly. Of course, the United States is very large and it is an incredible challenge to track all Bankruptcy cases across the US. For example, if Joe the Debtor files for bankruptcy in his home state of Iowa but how does Wyoming know that? Well, the Federal government has utilized the power of the internet and created a internet/web based case tracking system called P.A.C.E.R.(Public Access to Court Electronic Records.)

PACER allows the public to search for cases across the nation, state, county, or district. PACER will allow people to view files that have been submitted to court, find upcoming hearings, read about the outcomes of past hearings, and apply for email notification of future actions. (some restrictions apply). The files available on PACER can be read, saved, or printed from the remote computer.

PACER is a powerful tool for information because a person does not need to go to a courthouse or hire somebody to look for information, they can do it themselves. Furthermore, PACER is available 24 hours a day/7 days a week. Therefore, people can get their information after hours or on the weekends. PACER is a strong step towards a transparent government.

However, PACER is not free. PACER does charge about $0.07 per page. Generally, a page is 54 lines of data. This includes charges to examine a docket (history of actions) of a case. Search results are billed by the page as well. PACER will usually try to collect when the user reaches $10.00 worth of transactions which can accrue very quickly if the user is doing open ended searches for names like “Smith” or “Jackson.” The government will take credit cards as a form of payment for the user’s convenience. The user can get started at pacer.psc.uscourts.gov

If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have experienced bankruptcy attorneys in San Mateo, Fremont, Salinas, Sacramento and San Jose who can answer your questions about chapter 7 bankruptcy, chapter 11 bankruptcy, chapter 13 bankruptcy, lien stripping, debt, etc.

Sacramento Bankruptcy Attorney Discusses 2005 Bankruptcy Law Revisions

On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) went into effect. This legislation was the biggest reform to the bankruptcy laws since 1978. The legislation was enacted after years of lobbying efforts by banks and lending institutions and was intended to prevent abuses of the bankruptcy laws. The changes to Chapter 7 were extensive.

The most noteworthy change brought by the 2005 BAPCPA occurred within 11 U.S.C. § 707(b). The amendments effectively subject more debtors who make above a certain income, as calculated by the Code, above the debtor’s state’s median income to an income based test. This test is referred to as the “means test.” The means test provide for a finding of abuse if the debtor’s income is higher than a specified portion of their debts. If a presumption of abuse is found under the means tests, it may only be rebutted in the case of “special circumstances.” Debtors whose income is below the state’s median income are not subject to the means test. Notably, the Code calculated income may be higher or lower than the debtor’s actual income at the time of filing for bankruptcy. This has led some commentators to refer to the bankruptcy code’s “current monthly income” as “presumed income.” If the debtor’s debts are not primarily consumer debt, then the means test is inapplicable.

Another major change to the law enacted by BAPCPA deals with eligibility. §109(h) provides that a debtor will no longer be eligible to file under either chapter 7 or chapter 13 unless within 180 days prior to filing the debtor receives an individual or group briefing from a nonprofit budge and credit counseling agency approved by the United States trustee or bankruptcy administrator. The new legislation also requires that all individual debtors in either chapter 7 or chapter 13 complete an instructional course concerning personal financial management. If a chapter 7 debtor does not complete the course, this constitutes grounds for denial of discharge.

If you have questions regarding bankruptcy and credit issues, please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have bankruptcy attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.

Fremont Bankruptcy Attorney Talks about Credit Counseling

For those who don't know, the bankruptcy laws changed in 2005. One of the changes was the requirement for two debtor education classes. These classes are mandatory for the debtor’s bankruptcy to be completed. In fact, failure to take the classes results in automatic denial of a bankruptcy petition. The timing of the classes is also critical. One class must be taken before the bankruptcy is filed and the second must be taken after filing but before the bankruptcy process is completed. Failure to meet those timelines will also result in a dismissal of the bankruptcy petition.

The classes themselves are extreme informative in nature. The first class describes what a bankruptcy is about. It will give useful information such as when a debtor can file again or what debts are eligible. The second class contain helpful advice on how mange future debt. These classes were to place a learning requirement to bankruptcy and educate debtors to prevent future bankruptcies. (although in reality it has been a reason many self represented debtors have been denied bankruptcy)

The classes are not that expensive (usually under 50 dollars) and are available online. Just make sure to have a valid email address and the email address or fax number for the bankruptcy attorney so the certificate of completion can be sent. If you have missed a deadline please see an attorney right away

If you have a question regarding bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. We have attorneys in San Mateo, Fremont, Salinas, Sacramento and San Jose.

San Jose Bankruptcy Attorney Talks About Non-Dischargeable Debts

Any person in Bankruptcy or researching bankruptcy has probably discovered that Bankruptcy is not the scary life ending event that has been portrayed in the media. In fact, they have probably discovered that Bankruptcy is a government approved way to discharge (legal term for get rid of completely) most of their debts. For example, a debtor may expect that their $50,000.00 credit card debt will be wiped away completely without any expectation to ever repay that money. Ever. Given the finality and ease of bankruptcy (if you have an attorney) it is easy to see why the creditor fuel media tries to give bankruptcy a bad image.

However, tougher new bankruptcy laws have made certain debts non-dischargeable. What that means is that certain debts will survive the bankruptcy and the Debtors will still owe them. While the list is not that extensive, a little common sense will show that these are the kind of debts that the public, as a whole, would not want a debtor to just do away with.

Some examples of non-dischargeable debts are certain taxes and fines. The government will not “reward” a person for failing to pay their income taxes because it encourages cheating the government. Debts created through fraud, false information to a creditor, or malicious injury. If a Debtor lied to get the money or meant to hurt somebody, the government will not provide that debtor with a pass for the money they received. This includes injury due to drunk driving. Alimony and child support survive a bankruptcy because that money is meant to support an exspouse or the Debtor’s children. If the Debtor did not pay the money, then the State may have to pay through welfare which is not good for anybody. Therefore no pass for the Debtor.

While the examples above make sense from a social standpoint, there are a few odd exceptions. One example is student loans. Due to skewed politics, the 2005 change in bankruptcy laws prevents the discharge of all student loans. The true oddity is that the US encourages people to go to college as a means to get ahead in life but disallow the discharge of student loans if the “getting ahead” failed. Student loans are also extremely easy to obtain as a Student does not need a job or employment history (which is needed for all other loans) but there is no relief if a student debtor who has never held a job realizes that they cannot make ends meet. Finally, Student Loans are usually acquired when a person is extremely young so they can best take advantage of the “fresh start” promise of a bankruptcy which is now denied and the Student Debtor must look forward to 30 years of bad credit, collections, or lawsuits. Isn’t college great?

If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. We specialize in Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 13 bankruptcy, lien stripping, etc. Call today for your free consultation. We have attorneys in San Mateo, Fremont, Salinas, Sacramento and San Jose.

San Jose Attorney Talks About Lien Stripping

Debtors that are in serious financial trouble may have or will soon have several liens placed on them. A lien is a recorded document that states that the Debtor owes the creditor a certain amount of money. Once recorded, the lien will attach to any real property owned by the Debtor in the County it was recorded. By recording this obligation, the creditor reserves the right to collect their money if the Debtors ever sells the property before the Debtor gets the money. This lien is very similar to a First Deed of Trust or Second Deed of Trust that a traditional mortgage lender might file before they loan out money.

The creation of a lien is a very powerful tool for the creditors. Specifically, this lien may survive the Debtor’s bankruptcy. This means that the Debtor may discharge the debt during bankruptcy but if the Debtor ever sells property, the lien will still be paid because it is attached to the property and not to the Debtor.

However, all is not lost to the Debtor if a lien is created. The Debtor may be able to eliminate the lien all together if they file a bankruptcy as quickly as possible. There is a small window of opportunity to remove a lien completely if certain timing conditions are met.

If the window is missed, the Debtor may be able to remove the lien from a specific piece of property through a process called Lien Stripping. Basically, to strip a lien, the Debtor will have to show the court that the real property has no equity to repay the lien after valid claims are paid. An example of a valid claim is the first mortgage which is tied directly to the property. If the property has no equity at all after the first is paid then the lien can never be paid by the Debtor and should be stripped from the property.

It may be even possible, under the right conditions, that a second mortgage can be stripped from the property. If this is possible then the Debtors may be able to absolve themselves of over $100,000.00 of debt.

If you have a question regarding lien stripping please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.

Fremont Bankruptcy Attorney Discusses Building Credit After Filing for Bankruptcy

In light of the credit crunch and the wave of foreclosures that have swept the country, buying a house after bankruptcy has become a lot more difficult. At the very least, lenders will generally not offer a home loan for someone who has filed bankruptcy in the last 2 years. Getting a loan after that will largely depend on the size of the down payment you can make and whether your income is verifiable. That being said, even then the loan you will qualify for will likely have high interest rates and monthly payment. This being the case, maintaining on time payments and perfect credit history after bankruptcy is extremely important. Even the slightest sign of consistently delinquent payments, overuse of credit, or having too much debt and your eligibility for a mortgage loan will be thrown into question. Unfortunately, the sub-prime mortgage crisis has made life after bankruptcy even more difficult.

If you have already filed, there is no reason to dwell on the credit impact. Instead, you should start focusing on the ways that you can start improving it. Despite what you may have heard, removing a bankruptcy from your credit is unlikely (unless of course you filed Chapter 7 more than 10 years ago and it should be off your credit report anyway). Bankruptcy is intended to give you a fresh start, but from a credit standpoint, it will take time for you to rebound.

Here are a few tips to improve your credit score after filing for bankruptcy: First, always make on time payments to your creditors. Getting the credit in order to do this may be more difficult, however, getting secured credit cards or gas cards are easy ways to get credit again after declaring. Second, don't max out your credit lines. This is a simple way for potential lenders to see if you have a problem abusing credit---if you are using the full line it is a huge warning sign that you may be a big spender. Third, don't apply for too much credit. In the same light as the above, applying for several credit cards or loans at once is a warning sign you may be abusing your credit.

If you have other questions regarding bankruptcy and credit issues, please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.

Sacramento Bankruptcy Attorney Discusses Chapter 13 Bankruptcy

When faced with a Chapter 11 bankruptcy or a Chapter 13 bankruptcy there are some questions that have to do with liens. Liens can be stripped off of the debtor's assets in Chapter 11 or Chapter 13 when there is not enough equity in the asset. This is determined after deducting senior liens from the property's current market value, to secure the unsecured in whole or in part, where the lien exceeds the value of the debtor's property. Section 506 of the Bankruptcy Code acknowledges that a lien is only a secured claim to the extent there is value in the asset to which it attaches. To the extent that the claim exceeds the value of the collateral, that portion of the claim is unsecured. In Chapter 11 or Chapter 13, even voluntary liens, such as mortgages and security interests, can be stripped down to the value of the collateral, with the exception of voluntary liens secured only by the debtor's residence.

Lien stripping happens a lot with vehicles where there will be a reduction of car loan liens to the present value of the car. Thus a lender holding a $12,000 claim secured by a car now worth $10,000 has a secured claim of $10,000 and a unsecured claim for $2,000. Two thousand dollars of the lien may be stripped off the car in a reorganization. The plan must provide for payment in full of the secured portion of the debt; the unsecured portion can be paid little or nothing along with other unsecured claims.

If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.

San Jose Bankruptcy Attorney Discusses Automatic Stays

When you file for bankruptcy you receive e an “Automatic Stay.” An automatic stay is an injunction where creditors have to stop trying to collect debts from you. The automatic stay is to protect and buy you time against pressing debts, while you are awaiting the finalization of your bankruptcy discharge. This means, that upon filing for bankruptcy, the automatic stay will come into effect and provide assistance to you in the following areas: Creditors can no longer harass you with non stop phone calls, creditors can no longer send you harassing letters in the mail, any foreclosures on your home will be stopped, any creditor lawsuits will be stopped, repossession on your property will be stopped, you can stop your utilities, water, gas or electric from being shut down for 20 extra days, stop any wage garnishment, child support or alimony.s
The automatic stay will remain in effect until the debtor receives a discharge or if a judge lifts the stay due to the request of a creditor.

The automatic stay can provide relief for a lot of your financial stresses. This is especially important during the time you are awaiting your bankruptcy finalization and you receive discharge. Also you have the ease of mind that anyone, like creditors, who knowingly violate the automatic stay, will be liable for damages caused by their violations.

If you or someone you know has questions about bankruptcy, please contact Sagaria Law. Our team of bankruptcy attorneys can answer any such questions you may have and assist you through the process. We represent clients from Santa Clara County, Alameda County, San Mateo County, Sacramento and surrounding areas. Contact our office today to schedule your free consultation to speak with one of our attorneys at 1-800-941-6730 or visit www.sagarialaw.com.