California Bankruptcy Lawyer Blog

A San Jose bankruptcy attorney provides an Overview of the Goal of Bankruptcy Laws:

Bankruptcy laws provide individuals with the opportunity to experience reasonable relief from debt. It also provides creditors with a fair method of payment if the debtor has assets or disposable income available for repayment.

Bankruptcy law gives debtors the opportunity to file for Chapter 7 bankruptcy once every eight (8) years and to file for Chapter 13 bankruptcy once every four (4) years. Filing for bankruptcy is essentially the debtor notifying the federal courts that he or she is unable to repay their debts in the amount that is owed.

An Overview of How to Qualify for Bankruptcy:
Bankruptcy law establishes certain requirements that must be met in order for a person to file for either Chapter 7 or Chapter 13 bankruptcy. In order to qualify for a Chapter 7 bankruptcy, the debtor’s income must be equal to or below the state’s median income level. If this income limit is met, then the debtor likely qualifies for a Chapter 7 bankruptcy.

If the debtor’s income is too high, or if they own assets that they want to keep (but would be liquidated if they filed for a Chapter 7 bankruptcy), then the debtor is likely to file a Chapter 13 bankruptcy. In order to qualify for a Chapter 13 bankruptcy, the debtor must propose a feasible Chapter 13 plan. That means, the debtor must have enough income available to fund a Chapter 13 Plan.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer answers whether bankruptcy will help with credit card debt...

The short answer as to whether a Bay Area consumer in debt needs debt couseling before bankrutpcy is: YES! But before you cringe, realize two things:

Debt Counseling before bankrutpcy can only help in the future of your financial success (and that applies to anyone, even those that file bankruptcy due to unforseen circumstances rather than poor money management).

Debt Counseling before bankruptcy is an integral component of the bankuptcy filing process.
debtor education and credit counseling are the two debt counseling courses that bankruptcy filers must complete prior to their bankruptcy being discharged. But don't let the fear of debt counseling stop you from looking into bankrutpcy as an option for you. The courses are easily acessible and can be taken online, over the phone or in person. A responsible bankruptcy firm, such as Sagaria Law can provide resources for debt counseling and walk you through the process. We even have computer stations at our offices so that you may take the debt counseling courses right here.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer asks, then answers: Will bankruptcy help with credit card debt?

Absolutely bankruptcy can assist with credit card debt. Most bankruptcy filers actually file bankruptcy due to their credit card debt - it got out of control and they could not meet their obgligatiosn with their income (or in some cases lost their jobs and couldn't pay their creditors and thus got more and more behind). Most Credit card debt, which is also known as unsecured debt, is usually discharged through bankruptcy.

It should also be noted that in bankruptcy, credit card debt is the final debt type to get repaid, if it gets repaid at all. Because it is not secured by any piece of property or collateral, credit card debt is considered more dangerous than other types of debt. Credit card debt will likely be discharged at the end of a bankruptcy allowing the individual a fresh start towards their financial future.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer defines Unsecured Debt...

Unsecured debt is the opposite of Secured Debt with regard to acquiring a loan from a loan or banking institution. Unsecured debt mean there is no collateral or assets attached to the loan, thus making this type of loan scenario more risky for the lender. A result of obtaining a loan that is an unsecured debt is that the loan is more expensive because of the high risk it carries (for the lender). This means the percentage rate of the unsecured debt is higher than with a secured debt .

An example of the opposite of an unsecured debt, which would be a secured debt, is a loan secured by an asset such as a house.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney discusses California Creditor Harassment Law

Creditors can be annoying. They can often be very mean. They can also be silenced…but the means of doing so requires an understanding of California creditor harassment law. There is a national version of such a law and a state version. The California creditor harassment law is known as the Rosenthal Act; it is a local variation of the National Fair Debt Collections Practices Act. Both are very similar. The California creditor harassment law (Rosenthal) is codified in the California Civil Code at Section 1788.

The California creditor harassment law says specifically that creditors cannot use or threaten physical violence; creditors cannot say or imply that failure to pay a debt is criminal (except for the extreme case where it would be true, such as if you committed fraud, for instance; but not paying a typical debt is in no way criminal); creditors cannot be obscene or profane or refuse to tell you who they are collecting on behalf of (i.e., which credit company is their client); they cannot repeatedly call you just to make your phone ring to annoy you; they cannot pretend to be an attorney; they cannot do lots of things. The law is there to help you. There are certain things you can do to avail yourself of the benefits of the California creditor harassment law, although much of the inappropriate conduct is always now in effect, whether you proactively take the steps outlined or not. Of course, the two best ways to avoid implication of the California creditor harassment law are to pay your debts in full (which is, frankly, impossible) or retain counsel. The California creditor harassment law and its national companion (the FFDCPA) provide for an attorney to substitute for you, such that all calls that might go to you, go to your lawyer instead. Of course, the lawyer will wisely invoke the elements of the California creditor harassment law and demand that the creditor discontinue contact. This should provide you significant relief…and the freedom to start answering your phone again.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney explains the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005 was enacted in April 2005 and applies to cases filed on or after October 17, 2005. It involved significant changes to the United States Bankruptcy Code with the goal to prevent abuse of the system and make it more difficult to file for bankruptcy, especially under Chapter 7. Among other requirements, under the law, consumers who plan to file for bankruptcy protection must obtain credit counseling from an approved organization within 180 days before filing. During the course of the bankruptcy process, they must complete a debtor education course in order to obtain a discharge.

Perhaps the most significant change enacted by BAPCPA was the restriction on the number of debtors that could file for Chapter 7 bankruptcy which subjects some debtors to a means test. Upon calculation of the debtor’s income and comparison to the median income of the state in which the debtor resides, debtors whose income is above the median income must pass a means test. Another important change enacted by BAPCPA was the allowance for dismissal or conversion of a Chapter 7 case upon a finding of abuse by an individual debtor with primarily consumer debt. Abuse may be found where there is an unrebutted presumption of abuse arising under the means test or through a finding of bad faith, based upon a determination of the totality of the circumstances.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney answers: Can a debtor pre-petition disclaim an inheritance?

Debtors father passed away 8 months prior to her filing for bankruptcy. She executed a disclaimer before she filed. Trustee tried to claim a fraudulent transfer. Such disclaimers generally relate back to the time the interest originally passed (the father’s death), and the property is deemed never to have belonged to the disclaiming party, which means it cannot be reached by her creditors.

The disclaimer was not a fraudulent transfer and the key factor is that disclaimer was done before the bankruptcy and therefore never became property of the estate. If bankruptcy had been filed and then the disclaimer was made it would have been different outcome. So, prepetition disclaimers on estate property are effective.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer reviews third quarter bankruptcy findings

According to the American Bankruptcy Institute (ABI) March 2010 bankruptcy numbers are at their highest: a staggering 149,268. This data via the National Bankruptcy Research Center (NBKRC) compares its height to 2005’s Bankruptcy Code overhaul by Congress. This is a 34% increase from February 2010 and a 23% rise from March of 09. Other interesting tidbits are that 25% were Chapter 13 filings. Chapter 7 bankruptcy filings – aka the “Fresh Start” for debtors looking to alleviate their debt and get a second chance, occurred for three out of four debtors who filed bankruptcy in March.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on Annie Leibovitz and bankruptcy...

Even San Jose bankruptcy attorneys are familiar with Annie Leibovitz. She is an American celebrity photographer most famous for the photo shoot she had with John Lennon just five hours before he was killed. Throughout her career she has photographed many celebrities and is renowned in the world of photography. Leibovitz popped back in the headlines when she took the first official photo of the First Family. The photo was released by the White House on October 23rd.

Despite her lifelong success, Leibovitz may be forced to file bankruptcy. After taking out a loan in 2008 due to financial trouble, Leibovitz now owes $24 million to Art Capital Group. In addition to offering several properties as collateral, she offered copyrights to all of the photography work she has ever done or will do. In July of 2009 Art Capital sued Leibovitz, though eventually the two parties came to an agreement, and Leibovitz bought herself some time.

Whether or not the famed photographer will be able to catch up financially and pay off her loan with Art Capital is yet to be seen. If she cannot make her payments then she will most likely need to review bankruptcy as an option. In the end a bankruptcy may even help her be rid of her financial troubles so she can have a fresh start and focus on her photography.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on the bankruptcy of National Heritage Foundation

Generally, in our Bay Area bankruptcy practice, when we hear of bankruptcy in the news we think of a major company such as GM filing bankruptcy. In this instance, however, the non-profit organization National Heritage Foundation has filed for bankruptcy protection. While bankruptcy normally seeks to eliminate debts to creditors and banks, the National Heritage Foundation wiped out $25 million of debts not to lenders, but to charitable donors.

These donors had charitable gift annuities with the National Heritage Foundation. Charitable gift annuities are a common practice here in Fremont and all over the country. A charitable gift annuity is where a person donates a fixed amount of money to the non-profit organization, and then the donor or another person of their choosing is paid a fixed monthly amount for the rest of their life as a return. Many people have found this an excellent use of their money because they want to support a charitable organization, and it also creates a fixed income while having tax and risk advantages over other investment options.

While we do not know of anyone in San Jose who was affected, Maurice and Theresa Townsley of Monterey, California had donated $1.2 Million to the non-profit.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy lawyer has more on unemployment...

In light of today’s Labor Department announcement that the US added approximately 200,000 jobs, a report from payroll processor ADP, states all those jobs are government jobs - and mostly temporary ones from the Census Department.

It is said that the private sector lost approximately 23,000 jobs in March.

ADP further reported the following: small business job loss at 12,000, medium business job loss at 4,000 employees, and large business dropped 7,000 workers.

Meanwhile, service-sector jobs gained 28,000 employees, and there was a 9,000 job loss by factory companies; all in March.

On March 18th, Obama signed the jobs bill giving private-sector employers a break on payroll taxes for the remainder of 2010 if they employ the unemployed. Judging by the above stats, it remains just as important to retain employees as it is to hire new ones.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on the debt level of Nicholas Cage...

In my San Jose bankruptcy office, I note bankruptcies in the news, as well as bankruptcy candidates. You may have read that Nicholas Cage owes the IRS $6.6 million in income taxes. How could this happen to someone who is as successful as he is? Cage is certainly not having trouble finding work – according to the IMDB he was in 4 films in 2009 alone and has 4 more coming up in 2010. It is tough to see why he is having trouble paying his taxes, but it shows that it can happen to anyone.

What should the Hollywood celebrity do? Does he need to go bankrupt? How about others in his position? Can bankruptcy help them eliminate debts to the IRS?

Cage isn’t the only one struggling to pay his taxes. In our current economic climate, many people are having difficulty keeping up with all of their debts, including taxes. The good news is that while many of us think of bankruptcy as being for debts such as credit cards and auto loans, taxes are often dischargeable in a bankruptcy.

Whether or not your taxes can be discharged depends on various factors. When the taxes were due to be filed and when they were actually filed are two of the major factors involved in determining whether or not the taxes can be discharged, though the courts will also look at other aspects of your situation, such as whether or not you intentionally evaded the IRS.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on filing bankruptcy twice...

San Jose bankruptcy attorneys are often asked this question, and you may have wondered yourself (whether you are considering filing bankruptcy or not): Can a person file bankruptcy more than once? The answer is absolutely! Donald Trump filed bankruptcy twice, and so can you. Many people who have filed bankruptcy in the past find themselves having trouble paying their debts due to unemployment, slow business, or one of the many other factors being affected by the current economic climate. Bankruptcy laws are accommodating to this, and allow you to file bankruptcy again. What form your Bankruptcy takes will depend on when you last filed along with your financial situation.

In regards to the receiving discharges between chapter 7 and chapter 13 cases, the following rules are generally applicable: If you filed a chapter 7 bankruptcy in the past, you can file for chapter 7 bankruptcy again 8 years after the date of discharge. If you filed for chapter 13, you generally must wait 6 years before you can file for chapter 7 unless you show that you paid all permitted unsecured claims in full in your previous chapter 13 or that you made payments under the plan in the previous chapter 13 totaling at least 70% of the permitted unsecured claims and the plan was proposed in good faith and represented your best efforts.

If you filed a chapter 13 before, you can file another chapter 13 in just 2 years after your original chapter 13 filing, or if it has been 6 years since your original chapter 13 filing you can file a chapter 7 bankruptcy, as long as you qualify.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on keeping your automobile when filing bankruptcy...

Bay Area consumers in debt often ask San Jose bankruptcy attorneys this question when considering bankrupty: What about my car?

While you may be considering bankruptcy in order to eliminate your debts, you are likely to have a debt or two that you want to keep. If your car is financed, it is likely you want to keep it since you need a vehicle and may not be able to get a car loan immediately after bankruptcy. Fortunately this is something the bankruptcy courts understand, so there are ways to keep your car when filing bankruptcy.

One way of doing this is to reaffirm the loan with the lender, which they will usually give you the option of doing. It is in their best interest for you to reaffirm the loan rather than surrendering the vehicle and discharging the debt. In fact, most debts (including credit cards) can be reaffirmed in a bankruptcy if the creditor chooses to grant this option.

Through bankruptcy law you also may qualify for car loan redemption. With car loan redemption you can actually reduce the balance of your car loan to the fair market value of the vehicle, which can be a big discount for those who are upside-down in their vehicle. To determine if you qualify for car loan redemption and to have all of your bankruptcy questions answered, it is best to contact a bankruptcy attorney. Our firm offers free consultations, so if you are near one of our offices feel free to contact us for your free consultation.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on whether back taxes are dischargeable in bankruptcy...

Tax season is upon us, this we know. I especially notice in my San Jose bankruptcy law office that around this time people are reminded not only of taxes due, but back taxes due.

In our current economic climate, many people are having difficulty keeping up with all of their debts. While many of us think of bankruptcy as being for debts such as credit cards and auto loans, a significant number of people are also having trouble with back taxes. Forunately for these people, taxes are often dischargable in a bankruptcy.

Whether or not your taxes can be discharged in bankruptcy depends on various factors. When the taxes were due to be filed and when they were actually filed are two of the major factors involved in determining whether or not the taxes can be discharged, though the courts will also look at other aspects of your situation, such as whether or not you intentionally evaded the IRS. To learn more, an experienced bankruptcy attorney can assist you.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on this bankruptcy news regarding student loan debt...

A unanimous Supreme Court decision ruled in favor of a man who wanted his student loans dismissed through bankruptcy without having to prove that paying the money back would cause an "undue hardship." Generally, student loans are nondischargable unless a debtor can show "undue hardship" with regard to that debt in his/her bankruptcy filing.

It should be noted, however, that Clarence Thomas stated that the bankruptcy judge was wrong to approve Francisco Espinosa's bankruptcy plan in 1993, but the lender did not object at the time. Thus, the judge's error was not serious enough to undo the agreement.

The case itself involved a dispute over $4,582 in interest on Espinosa's four student loans. The case is United Student Aid Funds v. Espinosa, 08-1134.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on the issue of senior citizens filing bankruptcy...

Bankruptcy and the elderly (senior citizens) is not a new topic, especially for this San Jose bankruptcy attorney, but one that is gaining increasing notoriety as more and more senior citizens need to seek protection and relief with the bankruptcy laws. It may seem odd to seek a “fresh start” in bankruptcy during one’s later years, but it is certainly nothing to ignore or dismiss without analyzing your options.

According to of “The News Journal”, Bankruptcy filings among people 55 and older have risen sharply, as older Americans struggle[d] with higher medical bills and stagnant incomes, according to an AARP Study.

Writes Haber: “in 1991, people 55 and over represented just 8.2 percent of bankruptcy filers, according to the analysis by researchers at Harvard Law School, the University of Michigan and Ohio University.

That figure jumped to 22.3 percent by 2007, with the fastest increases among people 75 and older (up 566.7 percent) and those ages 65 to 74 (a 177.8 percent increase), the study found. Filings rose 150.8 percent among those between the ages of 55 and 64.”According to the article, the combination of fixed incomes and higher bills has pushed many seniors to the brink financially, says Elizabeth Warren, a professor at Harvard Law School and one of the above-referenced study’s authors.

While we don’t want to think about having to file a bankruptcy so late in one’s life, it can often be very effective, with a minimum of hassle to the debtor. For example, unless one intends to acquire many new assets or loans in the future, the effect on one’s credit rating would be essentially meaningless.

Moreover, many elderly people who have social security as their sole source of income, and who have little in the way of assets, may be judgment-proof and not need to file a bankruptcy at all (although even in those cases, the relief from the creditor phone calls can be sufficient reason alone).

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on bankruptcy and student loans...

Many students are constantly asking San Jose bankruptcy attorneys whether or not their student loan debts will be dischargeable in bankruptcy. The answer to that is a little complicated. For bankruptcy cases filed prior to October 17, 2005, if the program under which a student loan was issued, insured, administered was a for-profit, private (non-government) entity, the loan/debt may have been discharged. However, if the program itself, such as LAL, GSL, etc. received nonprofit funding by participation of nonprofit entities, the loan is not dischargeable in bankruptcy.

For bankruptcy cases filed after October 17, 2005, the only way a student loan is dischargeable is if the debtor can prove “undue hardship” as that term is interpreted by the courts in whatever district the case is filed in. It is a difficult standard to meet, and the vast majority of student loan debts are not dischargeable.

For cases filed prior to October 7, 1998, student loans were dischargeable if they were in repayment status for a certain period of time.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on chapter 13 bankruptcy

I was asked today in my San Jose bankruptcy law office by of my new clients how much attorney’s fees would be collected in a Chapter 13 bankruptcy case. This question required a little bit of a complicated answer especially for a chapter 13 bankruptcy case.

Let’s say that the base bankruptcy attorney’s fee is $4,000 for a regular, non-business debtor Chapter 13 case, plus the $274 filing fee and necessary credit counseling courses. In most cases, that is NOT how much you have to pay to your attorney before filing your case. Why not? Because part of the attorneys fees can be taken from your monthly plan payments that you will have to make anyway in your Chapter 13 case. How much can be taken through your plan payments? That depends on 1. What your monthly plan payment is, which is determined by the complex means test analysis; 2. Whether by making the additional payments for attorneys fees, it would render you unable to pay certain necessary debts which need to be paid 100% in your plan (such as taxes, or mortgage arrears, etc.).

For example, if the means test is showing that your monthly plan payment is $200 per month for 36 months, and you are filing the bankruptcy case in order to repay $7,200 of past due amounts on your mortgage (arrears), then you do not have any more income available to pay your attorneys fees through your plan. If you added another $3,000 of attorneys fees, it would raise your monthly payment by approximately $100 per month. (Plus, most attorneys aren’t going to wait that many months to be paid their fees).

This was just a quick example, but it illustrates why it is necessary to have a complete consultation with a bankruptcy attorney before they can give you an accurate fee quote and let you know how much you’ll have to pay up front to file a Chapter 13 case for you.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

A San Jose bankruptcy attorney comments on fraudulent home mortgages...

Bay Area residents and San Jose bankruptcy attorneys may or may not be surprsed that, according to First American CoreLogic, one in every 200 residential loans funded last year involved fraud nationwide. That equates to about $14 billion in fraud.

Although a shocking number to be sure, apparently this reflects a decline over the past three years and, according to First American, an approximate decrease of 25% since its third quarter '07 peak.

Among many factors, one end result is banks having to buy back millions in loan fraud from investors, which inturn means lenders getting more on the ball where curtailing mortgage fraud is concerend. A note not to be overlooked is a fact that during the boom, standards were lower as such many loans were made sans applicant info verification.

A recent article quoted Tim Grace, SVP of fraud analytics at First American CoreLogic, as stating “In 2010, 2011, and 2012 you won’t see nearly the amount of [fraud] reports that you’re seeing today.” Let's hope for the best, South Bay.

If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys.  After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you.  Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down,  stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs.  Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.