Blog | EH Law Group

REAFFIRM OR NOT TO REAFFIRM

Wed, 04 Dec 2024 19:54:19 GMT

While in the active bankruptcy, Debtors are given the opportunity to enter into a reaffirmation agreement for property with secured liens (most common for vehicle liens). The agreement is a new financial agreement and if granted by the Judge, would no longer be a dischargeable debt. There are several factors for evaluation.

1. Does the vehicle have equity or is it under water?

2. Does the car payment impose an undue hardship upon the debtor now or could it in the foreseeable future?

3. Is the debtor current on payments?

4. Will the Judge grant the reaffirmation agreement?

Ford is one of the most aggressive creditors to insist upon the filing of the reaffirmation and has been known to repossess vehicles if there is non-compliance. Many reaffirmation agreements are neither granted nor denied by the court and as long as the Debtor remains current the creditor cannot repossess the vehicle.ontent of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

CHAPTER 13 109(E) DEBT LIMITS

Wed, 04 Dec 2024 19:54:19 GMT

The 109(e) limits for a consumer chapter 13 case are $336,900 for unsecured debts and $1,010,650 for secured debts. These debt limits are reasonable if a Debtor has one or two properties but with the California home prices as high as they are, a chapter 13 case may be out of the question for certain consumer debtors. The determination of what constitutes as secured debt is an ongoing contested matter as some Trustees take the stance that the debt is only secured as to the market value of the property. For instance, if the market value of the home is $1,000,000 but the lien is $1,200,000 one could argue that the extent of the security is only as to the market value, therefore making the $200,000 unsecured. If there are two liens attached to the property and the first exceeds the market value of the home, the second lien can be avoided through the bankruptcy but if the lien is considered secured until the lien is avoided, the Debtor would not qualify for a chapter 13 bankruptcy at the time of filing as the total secured amount exceeds the debt limit.

Three Ways to Avoid Getting Your Chapter 13 Case Dismissed

Wed, 04 Dec 2024 19:54:19 GMT

Sometimes our clients feel so much relief from the bankruptcy filing that they neglect to follow the court ordered rules in a chapter 13 case.

1. Debtors must make their monthly plan payments to the Trustee in a timely manner.

2. If the Debtor has not filed their tax returns by the date of filing, they have 45 days to file the return(s) and submit proof to the Trustee.

3. If the Trustee’s objections are not resolved after continued pre-hearing conferences and the Trustee’s objections are well taken, the case will most likely be dismissed.

The dismissal of a case does not negate the bankruptcy filing on the Debtor’s credit report and does not provide for a discharge of debts.

Our San Francisco Bankruptcy Attorney Discusses Benefits of Chapter 13 Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy can be a hard decision to make due to the complexity of each individuals situation. Many people tend to shy away from the Chapter 13 bankruptcy because they do not know all the benefits that it can offer, which are many. A Chapter 13 bankruptcy is a repayment plan over 5 years based on disposable income. Therefore the amount of unsecured debt that you pay back could be pennies on the dollar. To make it easier, I have outlined some of the benefits of a Chapter 13 bankruptcy below.

1. Paying Back Pennies On the Dollar: The amount of credit card or unsecured debt that a debtor would be paying back in a Chapter 13 plan could be pennies on the dollar. This is because the amount paid back is determined by the % of disposable income the debtor has after expenses have been deducted. After such expenses as income taxes, mortgage, car payments, health insurance and retirement contributions, most debtors have very little left over to pay the creditor. Therefore, the amount put into the Ch. 13 plan could be very small and at no interest. This beats a consolidation company or debt settlement agency taking $500/mo to negotiate debt down since you would most likely be paying more to the settlement than the Ch. 13.

2. Stripping a Second Mortgage Off the Property: Homes are becoming increasingly hard to maintain. Nowadays it is not uncommon for a homeowner to have two or even three mortgages tied to their properties. In a Chapter 13 bankruptcy, if your house is underwater (you owe the lender more than what it is worth out on the market), you can do what’s called a “lien strip”. Essentially, a lien strip is just removing the second mortgage off the property leaving only the first mortgage to be paid. With this option in a chapter 13 bankruptcy, you could be losing hundreds of thousands of dollars, never to repaid again.

3. Stopping Foreclosures: A Chapter 13 bankruptcy can also help you to stop foreclosures on any homes with such notices. This bankruptcy also allows the debtor to catch up on the arrears that are owed in the Chapter 13 plan instead of coming up with the thousands of dollars in one day to save their homes.

4. Lowering Monthly Payments: You can also lower your monthly payments on student loans or car loans when you enter into a Chapter 13 bankruptcy. Any outstanding loans that you may have can be put into the chapter 13 plan to be paid off in five years regardless of what you have agreed with the lender. The interest is nominal and it spreads the payments out to make them more manageable. Your car payments can even be cut in half to give you the breathing room that you need to keep up with your daily expenses.

A Chapter 13 bankruptcy can help many debtors out there, so don’t be afraid to call an attorney to discuss these options. If you wish to discuss your situation, please do not hesitate to contact any one of our offices. We look forward to speaking with you soon!

Galileo Recent Settlement Options

Wed, 04 Dec 2024 19:54:19 GMT

Parents who signed up for Galileo Summer Camps recently got an email or letter giving them (3) Options regarding their prepaid camp funds. Here is a summary:

Option 1: 110% Credit. If you elect Option 1, you will receive a credit equal to one hundred and ten percent (110%) of your Claim Amount (the “Credit”), which you can apply towards (a) any “online” camp programs (the “Online Programs”) offered by Galileo beginning this summer, or (b) any other Galileo product or products, whether such products are the Online Programs or live-camp programs (when camps reopen). The Credit is valid for five (5) years, until May 31, 2025, and you may transfer the Credit to other parties, including relatives and friends. The Online Programs offered by Galileo will include both week-long camps and one-hour to 90-minute classes, both of which will be led by Galileo instructors.

Option 2: 50% Discount Coupon. If you elect Option 2, you will receive a fifty percent (50%) off, unlimited-use “coupon” (the “Coupon”) on any Galileo product or products, including, but not limited to, Online Programs or live camp programs (when camps reopen). The Coupon is valid for five (5) years, until May 31, 2025. You may use the Coupon for any child[ren] in your family, and you may use the Coupon as many times as you like and for as many Galileo products as you like within the five-year period. For example, under Option 2, you could use the 50% discount coupon to generate substantial savings over the next five years regardless of how much you spent on a Galileo camp in 2020.

Option 3: Continue to participate in the bankruptcy proceedings which may or may not result in a refund of some amount.

If you need help navigating the Galileo Bankruptcy or understanding your options, my office is here to help. We have created a dedicated email address galileobk@ehsulaw.com for your questions.

San Francisco Bankruptcy Attorney Discusses Second Mortgages and Lien Strips

Wed, 04 Dec 2024 19:54:19 GMT

Buying property has always been a good investment, up until it wasn’t. Growing up, we always hear that property investment was a more safe and valuable investment than any other kind. Afterall, why pay the high rents every month to a landlord when you can be paying yourself and owning your own home. That was the case up until the early 2000’s when the mortgage industry started to take a large downward dip. All of those bad loans that were so easy to obtain and were making so many people rich were now catching up to the homeowners. Loans that were given with huge interest rates were coming due and the homeowners were unable to pay. Home prices started to fall drastically; and the huge cash windfall people thought they were going to have when they sold their homes turned into a giant wind tunnel sucking them down into financial ruin.

Many of these homeowners took out second mortgages and equity lines of credit to help them survive. What many of these people do not know is that if you are in a similar situation that is described above, you may be able to get rid of your second mortgage completely in a Chapter 13 bankruptcy. In order to qualify for a Chapter 13 “lien strip” you need to show that your house is underwater as to the first mortgage (meaning: that the first mortgage is more than the value of the house). Therefore, if you meet the Ch. 13 bankruptcy requirements and your house is underwater, the second mortgage can be stripped from the property completely. Once you have completed your five year Ch. 13 repayment plan, the whole second mortgage is wiped and you are no longer liable for the debt. The theory behind this is that in a hypothetical scenario, if the house were to foreclose and go through regular foreclosure proceedings, the first mortgage would take the house as the security leaving the second mortgage unpaid anyways. The second mortgage then would be considered an unsecured debt that would be dischargeable in bankruptcy.

If you have a second mortgage that you think would qualify for a lien strip please speak with an attorney. If you have questions about bankruptcy or lien strips please give EH Law Group a call us or visit our website at www.ehlawgroup.com . Our San Francisco bankruptcy attorneys, San Jose bankruptcy attorneys or San Mateo bankruptcy attorneys will be able to assist you. We will discuss your situation and assess what the best option is for you. We look forward to speaking with you soon!

Our San Francisco Bankruptcy Attorney Talks About New Loan Modification Law

Wed, 04 Dec 2024 19:54:19 GMT

If you are a person that has been struggling with getting a loan modification in San Francisco or San Jose, do not feel beaten, because as of June 1, 2010 the new HAMP laws came into effect helping many homeowners with modifying their loans. Typically, when negotiating with a loan service provider, many debtors feel bullied and helpless. This is because the loan providers hold all the cards when it comes to your modification. You are at their mercy because they can say yes or no to the modification, it seems, at their whim. As of June 1, 2010 however, many debtors will apply for a loan modification and find that they will be granted a loan modification and will be given a 90 day window to make the proposed modification payments. This is due to the new HAMP modifications that was passed earlier in the year. The law allows for a debtor who applies for a loan modification be given a chance at paying the proposed modification for 90 days, after which the lender can consider keeping the modification permanent. Another benefit of the new HAMP modification is that debtors who are currently in Chapter 7 or 13 bankruptcies will not be denied consideration for HAMP if the debtor’s bankruptcy attorney or bankruptcy trustee submits a request to the servicer. Therefore, even debtors who are in bankruptcy will not need to worry that they will not be able to participate in starting a loan modification due to the bankruptcy automatic stay.

If you want more information about our firm, please do not hesitate to contact us. Our bankruptcy attorneys can provide you with information and get you on the road to a fresh start. We have offices in San Jose and San Francisco. We look forward to meeting with you soon!

Tips for Selecting the Right Bankruptcy Attorney

Wed, 04 Dec 2024 19:54:19 GMT

The decision to file for bankruptcy can be a difficult choice, so don’t make it more difficult by hiring the wrong bankruptcy attorney. Here are some tips to consider when selecting an attorney.

1. Do not wait until the last minute! If you have a foreclosure, wage garnishment or an emergency deadline you will want to hire an attorney as soon as possible.

2. If you know someone who has filed for bankruptcy, ask them about their experience with their attorney. At the very least you may be able to find out which attorneys not to hire.

3. Ask for referrals from professionals that you know such as your accountant or another attorney. Our firm receives referrals from family law attorneys, CPA’s, bankruptcy Trustees and bankruptcy attorneys.

4. Attend your local 341 meetings and see how attorneys interact with the Trustee and their clients. Take note if the cases are concluded or resolved.

The Dangers of Overspending for The Holidays in San Mateo

Wed, 04 Dec 2024 19:54:19 GMT

As the holidays approach, many Americans feel obligated to spend more and buy more. This is a dangerous practice that can lead to financial problems in the future. In this blog post, we will discuss some of the dangers of overspending for the holidays in San Mateo and how you can avoid them!

The Dangers of Overspending for The Holidays in San Mateo

A recent study by Affirm pointed out that 7 out of 10 Americans typically overspend during the holidays. And, nearly half of American consumers plan to spend more this year to make up for missed celebrations due to the pandemic.

This points to the undisputed fact that overspending is likely this holiday season, but can be avoided. Just being aware of reasons that cause a person to overspend on holidays is a start. Here are some of them:

Stressful daily lives have made us a society looking for short-term gratification. Having a Christmas tree packed with beautiful gifts underneath makes us feel good and fulfilled. At least in the short term!

Wealth inequality can also cause a person to overspend on the holidays because they feel pressure from their peers. This is when being “behind” in gifts can lead someone into spending more than usual just so that they can catch up with what others are doing this holiday season.

In some cases, even if you set out to spend a certain amount of money on gifts, you might find yourself spending more than planned. This is because we live in an extremely consumer-driven society and holiday sales are everywhere we look!

If overspending is such a likely risk, how do you deal with it? One of the best things to do is to make yourself intimately aware of your financial situation. Knowing where you stand, financially, can help you make more informed decisions, allowing you to plan a holiday that better suits your bank account.

Long-Term Consequences Of Overspending

Overspending has long-term consequences that can go beyond the financial. Overspending leads to stress, which leads to poorer health and relationships. It also reduces your ability to save for emergencies or retirement. The mental costs are just as important when you consider if spending more is worth it in the short term.

Excessive overspending can leave you with a large amount of debt and this in turn leads to the following possible consequences:

Diminished borrowing power in the future

Lower credit score

Reduced buying power

Bankruptcy, which is the most severe consequence with serious ramifications for you and your family for years to come

How to Avoid Overspending These Holidays

With the holidays around the corner, you might be wondering what to do this time to make sure you don’t overspend. Here is a short list of some of the best things to do to make sure you enjoy your holidays without having to suffer for them in the longer run:

Know Your Financial Situation: Make yourself thoroughly aware of how much money you have and what the necessary expenditure is, thereby getting a clear picture of the finances available to you.
Set A Budget: Based on your assessment of your financial situation, decide on a practical budget for your holiday. Knowing the overall total limit of what you cannot exceed will help you better divide your expenses across your holiday activities.
Get A Clear Picture Of Your Expenses: Identify all the expenses you will be incurring on your holiday. Build a list of the people you will buy for and spend time researching the best gift for them that you can afford.
Look Up Deals: To ensure you get the most value-for-money experience, find promotions and deals for the items you plan to purchase. That can help reduce the strain on your expenditure while allowing you to give the best present possible.
Track Your Spending: Keep meticulous records on all aspects of your spending. Seeing the numbers can help guide you toward thoughtful spending and eliminate the big bill at the end of the holiday season.
Use Your Credit Card Cautiously: Credit cards are the biggest contributors to overspending. Try to use them conservatively, use travel cards, or hard cash specifically reserved for spending on the holiday.

If Facing Bankruptcy, Why Choose Us

While we hope our tips on avoiding overspending on holidays help you stay financially safe and solvent these holidays, the ugly reality is that sometimes there is no escaping the very severe circumstance of bankruptcy.

It is an emotionally, financially, and personally challenging experience, one we are sure nobody wants to go through. However, if and when faced with bankruptcy, the one thing that can make the whole difference of what your experience is like, is the people you hire for the job.

With us, you get several key benefits:

We are well-versed in both the Chapter 7 and Chapter 13 bankruptcy, which are the most common types of bankruptcy filed. Our expertise in both Chapters means we are well-equipped to inform you on which one is the right option for your particular situation and can then file it for you.

Our experienced team of professionals delivers quality service, customized to your needs. We take the burden and responsibility of filing for bankruptcy completely off of you to allow you to focus on yourself. By working with our trained staff, you can rest assured that all the steps, documents, and requirements are properly taken care of and your case is dealt with as much efficiency and effectiveness as possible.

We understand how challenging a time this may be for you, which is why we endeavor to make this process as hassle-free, smooth, and easy for you as possible.

We have the online reviews and testimonials to back our claim of offering superior quality of service to our clients.

We offer quality, customized service at some of the most affordable rates in the market.

We wish all the best this holiday season. But, if you find you need the help of professionals to consider your financial situation, then do not hesitate to contact us. The sooner you get in touch with us, the sooner we can relieve you of this burden…and we promise to stay with you every step of the way until we have delivered the desired results to you.

San Jose Bankruptcy Attorney Discusses Creditor Lawsuits

Wed, 04 Dec 2024 19:54:19 GMT

There has been a large wave of debtors who have been sued by the creditors in the last few years. The situation is one that many are familiar with. You, the debtor, have surmounting debt from use of credit cards, personal loans, payday loans, or have borrowed money from a friend that you are unable to pay off. So, you just stop paying and the debt continues to rise and rise until it is impossible to pay back even if you were on a payment plan for the rest of your life. Then one day, you happen to receive a Summons stating that you are being sued by one, two, three or all of your creditors for the debt owed. As a bankruptcy attorney in the San Francisco Bay Area, I know that this is a common occurrence. I also know that this causes a lot of stress on a person to be summoned to court for a lawsuit on a debt that they know they owe. Whether or not you show up to the hearing or write a response is mostly futile in these situations since the creditor only needs to show that you owe the money–which you do. The creditor will inevitably obtain a judgment, which is basically just a court order that allows the creditor to collect money from you indefinitely. Some of the ways that they can obtain this money is by a wage garnishment, levy your bank account, or put liens against your property or social security number so that in the future if you ever own any of these assets, they can attach to them in the future. It does get to be very unpleasant.

A bankruptcy, however, can get rid of the lawsuit as well as the debt. Once the bankruptcy has been filed, the creditor is no longer able to continue to pursue you in court and the lawsuit stops. Then when the bankruptcy is completed the debt is gone and so is the lawsuit. That is two birds in one fell swoop. If you have a situation like this please contact The Law Office of Eddy Hsu and we will be able to give you a free consultation to discuss the best options for you. We have offices in San Jose, San Mateo, and San Francisco. We look forward to speaking with you soon!

The Pros and Cons of Chapter 7 Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Chapter 7 Bankruptcy is often seen as a “do or die” choice for individuals and businesses that have found themselves in an unfortunate financial situation.

The reality is that anybody can recover from a bankruptcy filing. After a bankruptcy, a person can still get credit cards, car loans, and even home loans. It’s important to know the basics of Chapter 7 Bankruptcy and how it works.

Though the best solution to most people’s money problems is to avoid them in the first place, sometimes things happen that leave you with no other choice but to file for bankruptcy.

You may be discouraged to find that filing for bankruptcy can have some serious consequences that you never intended.

Moreover, the stress figuring out what to do with your life after bankruptcy is much less difficult than figuring out how to tell your friends and family that you are in a financial situation that has gotten so bad that you needed to file for bankruptcy.

Thankfully, there are a lot of things you can do to minimize the drawbacks of bankruptcy. Including keeping your bankruptcy to yourself.

Upsides of Filing Chapter 7 Bankruptcy

The most obvious upside of filing chapter 7 bankruptcy is that it stops creditors from garnishing your wages or repossessing your car or furniture. But it doesn’t just stop there.

You can discharge (get rid of) most of your debts including credit cards, medical bills, personal loans, and some back taxes. You can also keep your car, assuming you can make the payments.

Following are some other upsides of Chapter & bankruptcy.

Immediate Relief from Creditors Trying to Collect from You

Filing Chapter 7 Bankruptcy is a way to get relief from collectors and secure a fresh financial start.

Under bankruptcy law, your creditors cannot call you or send threatening letters. This includes threatening to notify employers or family members.

In Chapter 7, your unsecured debt (like credit card bills and medical bills) gets wiped out, and you keep some of your assets (like your car).

Moreover, your assets will be protected, and you won’t have to worry about losing your car or your retirement.

Bankruptcy Discharge

As a result of Chapter 7 bankruptcy, you will receive a discharge of debt. This will take care of unsecured debt and help recover with your finances.

An individual bankruptcy cancels his or her debts incurred in unprotected transactions, such as credit card debt, medical debt, and other loans.

A bankruptcy discharge releases you from the legal obligation to pay certain debts, but it doesn’t wipe out your obligation to pay secured debts, like the mortgage on your house or car loan payments.

However, it may be possible to persuade your secured creditors to accept a settlement for the amount owed, instead of repossessing your property.

There Is a Good Chance You Can Keep Your Car and Other Belongings

If you file Chapter 7 Bankruptcy, there is a good chance you can keep your car and other belongings. This is because vehicle exemptions are based on your state’s exemption amounts.

Each state has different exemption requirement amounts. You can also exempt certain belongings, but make sure to know your state’s exemptions before you do this.

There are also many different rules that go along with Chapter 7 Bankruptcy. It is vital that you are educated on your state’s bankruptcy rules.

If You Have Filed for Bankruptcy, Missing Monthly Payments and Negative Marks Stop Affecting Your Credit Score

When a bankruptcy is discharged, all of the negative marks on your credit report will be removed, including late payments, foreclosures, and tax liens, as long as they occurred fewer than ten years before the bankruptcy filing date.

If you are considering filing for bankruptcy, you can expect to see a dramatic improvement in your credit score if the bankruptcy is discharged in less than ten years.

Unlike other debt solutions, Chapter 7 eliminates your debts completely, instead of merely reducing them. When you file Chapter 7, you receive a clean financial slate with no negative marks on your credit report.

Improved Access to Credit and Banking

Filing bankruptcy is a scary process, but the relief of not having to pay your debts can be empowering. It can help alleviate one’s biggest fear, that of being denied access to credit and banking. This doesn’t have to be the case.

Bankruptcy doesn’t have to reduce your access to credit and banking. Instead, it can improve your access to banking and credit.

In a bankruptcy, you can legally wipe out your unsecured debt, such as credit card bills and medical bills.

In a nutshell, it’s a process that has the potential to improve your credit score, bank and credit union access, and overall financial health.

Cons of Filing Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a legal procedure that allows people with exceptionally large debts to erase those debts without having to pay some or all of them back.

However, the biggest cons to filing for Chapter 7 Bankruptcy are the lasting negative effects it can have on many areas of your life.

If You Have Good Credit, It Will Likely Take a Temporary Hit

The good news is that if you have an excellent credit score, you still won’t have to deal with a “hit” to your credit score for long.

Any bankruptcy filing will stay on your credit report for up to 10 years. If you want to soften the hit to your score, you’ll need to begin repairing your credit score. For example, you can take out a personal loan or open a new credit card to build up your score after you file for bankruptcy.

Chapter 7 bankruptcy is a type of bankruptcy that does not wipe out all debt, for example student loans will survive the bankruptcy. A Chapter 7 is also known as a “liquidation bankruptcy” because it involves selling assets to pay off creditors. There are certain things you can keep, including your car and other property, and your retirement accounts. You will not be able to qualify for a mortgage for at least two years, however, and you’ll need to file a chapter 7 bankruptcy means test.

You Will Still Owe Back Taxes When Filing Chapter 7 Bankruptcy

When you file for Chapter 7 Bankruptcy, you get rid of most unsecured debts like credit cards, medical bills, personal loans, and payday loans.

But, what if you owe money to the IRS, or to your state? People often confuse bankruptcy for being a “get out of debt free card,” but that is not the case.

If you owe back taxes, you may still be required to pay them after a bankruptcy filing. Some states allow you to discharge certain taxes, but California does not. As well, if you need to pay child support, it is your responsibility. You will need an experienced attorney to get specific debts analyzed.

It can be hard for people to understand that just because they are filing bankruptcy, it doesn’t mean all their bills will instantly be erased. While most of their unsecured debt will be erased, they will still have to deal with secured debts such as their mortgage or car loan.

You May Lose Certain Types of Property

Chapter 7 bankruptcy is often a good option for those who have a lot of debt and few assets.

A few assets, like a car, require additional paperwork to keep.

The process is called “reaffirmation,” and if you file for Chapter 7 you must fill out a reaffirmation agreement that states that you are voluntarily keeping the property. If you do decide to reaffirm, you must abide by the terms of the agreement and pay back the debt as you promised.

It’s important to know the type of bankruptcy you want and what property may be lost when filing. Chapter 7 bankruptcies are best for those who can’t afford to pay off their debts because they don’t have many assets or a lot of income, while Chapter 13 is often better if you’re behind on your payments but would like time in order to make amends with creditors by turning some money over now rather than having everything taken from them later.

You Can’t File Chapter 7 if You Make Too Much Money

If your family’s monthly income is less than the median income for a similar sized family in California, then you are eligible for Chapter 7 bankruptcy.

If your monthly income is higher than a family of the same size, you may still be able to file Chapter 13 bankruptcy. Chapter 13 bankruptcy is a chance to start over with a clean slate and reorganized bills.

Any type of bankruptcy filing is serious and will have a long-lasting effect on your credit score. It is important to speak with a qualified attorney before making any decisions about which type of bankruptcy best suits your needs.

Contact Eh Law Group for Expert Bankruptcy Advice

When you need legal bankruptcy advice, contact EH Law Group. If you are considering filing for bankruptcy, it is important to understand the process and what a Bankruptcy Code can mean for your financial future. The Bankruptcy Code can be very complicated. Because of this, there are many misconceptions about bankruptcy and the rules that apply.

When you need legal bankruptcy advice, contact the EH Law Group. We are experts in Chapter 7 and Chapter 13 bankruptcy law. Our team of experienced bankruptcy attorneys can answer your questions and guide you through the process to help minimize stress while maximizing opportunities for a fresh start.

Mortgage Modifications: Beware

Wed, 04 Dec 2024 19:54:19 GMT

I had a client express their frustration with their mortgage lender with a theme all too familiar to me. They requested a mortgage modification to reduce their interest rate and monthly payments but the lender advised them that they would need to be at least three months in default for their application to be considered. The lender would not accept monthly payments thereafter unless the default amount was paid in full and along came the Notice of Default. 90 days went by and here they are filing a chapter 13 bankruptcy to stop the foreclosure sale.

Bankruptcy May Not Be Fun, but Our Firm Makes It Easy

Wed, 04 Dec 2024 19:54:19 GMT

Although bankruptcy may not be fun, we make it easy. The most difficult step in filing for chapter 7 bankruptcy is making the decision to contact an Attorney. Many of our clients did not realize that they could keep their personal belongings and in most cases their home and vehicle. A chapter 7 bankruptcy discharges the Debtor’s personal liability for most unsecured debts and gives the Debtor an opportunity to surrender secured property that is under water.

The means test determines whether a Debtor will qualify for a chapter 7 bankruptcy. The test consists of a formula accounting the Debtor’s 6 month average income and the Debtor’s ongoing qualified expenses. Debtors who make more than the median income for their household size can still qualify for a chapter 7 case if they have enough qualified deductions to offset their income. The current median incomes for California are as follows:

• 1 person = $47,969
• 2 person = $64,647
• 3 person = $70,638
• 4 person = $79,194
• 5 person = $86,094
• 6 person = $92,994
• 7 person = $99,894
• 8 person = $106,794

Qualified deductions include mortgage payments, car payments, taxes, spousal support, child care, charitable contributions, health insurance and union dues. A Debtor cannot deduct expenses that are associated with secured property that is being surrendered.
A chapter 7 is considered the easiest bankruptcy chapter as the case timeline is approximately 90 days from the date of filing.

San Mateo Bankruptcy Attorney Discusses Galileo Proof of Claim

Wed, 04 Dec 2024 19:54:19 GMT

Are you a parent who paid a large summer camp deposit only to find out that Galileo has filed for bankruptcy? If so, then you are probably wondering if you can get a refund or are you stuck with the credit/coupon option that you recently received. If you want any chance to get a refund, then you must file a Proof of Claim.

The deadline to file a Proof of Claim in the Galileo bankruptcy filing is September 8, 2020. If a Creditor (i.e. parent who wants a refund) misses that deadline, then the Creditor may lose many valuable rights including voting on any reorganization plan or even receiving repayment for the debt owed to the Creditor. Therefore, it is very important for a Creditor to file a proof of claim.

The bankruptcy court hearing the Galileo bankruptcy has tried to make it convenient to file proof of claim electronically. There is a direct link from the court website . The proof of claim form itself is 2 pages long and requires just enough information to determine who to pay, how much is owed and general basis for the claim. Creditors should also attach some proof of the debt, i.e. a contract or invoice.

Proof of claims are routinely filed but can get complicated if challenged. If you are worried about filing your own proof of claim, then my office is available to help parents who are feeling lost.

San Francisco Bankruptcy Attorney Discusses Toni Braxton’s Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy affects millions of people in the U.S. every year and many of those people are familiar faces that we have seen before. Willie Nelson, Debbie Reynolds, Mark Twain, Rembrandt, and Mike Tyson are just a few of the famous people that have filed for bankruptcy in the past. Toni Braxton, who has filed for bankruptcy twice in the last 15 years, has made headlines again with her most recent case.

The trustee who is in charge of her 2010 bankruptcy case is accusing her of bankruptcy fraud. They are saying that Toni illegally transferred funds to her ex-husband in an attempt to avoid paying back creditors. The total amount transferred was $53,490. This might not seem like a large amount of money when you are in debt somewhere between $10 to $50 million dollars but to the trustee and your creditors this is money that should have been going directly to them. The trustee is now suing her ex-husband to collect the money that was transferred to him. Toni is proclaiming her innocence by saying that she did not know that transferring the money was illegal because it was going to pay for personal and business expenses. If there is a fraud in the transferring of money then the debt does not get discharged in the bankruptcy.

If you have questions about bankruptcy please give EH Law Group a call us or visit our website at www.ehlawgroup.com . Our San Francisco bankruptcy lawyers, San Jose bankruptcy lawyers or San Mateo bankruptcy lawyers will be able to assist you. We will discuss your situation and assess what the best option is for you. We look forward to speaking with you soon!

San Jose Bankruptcy Attorney Discusses Wage Garnishments

Wed, 04 Dec 2024 19:54:19 GMT

You never thought they would take it this far, but they did. You realize that they can find you anywhere and at anytime and take what you have worked so hard for. This isn’t the plot of the next Saw movie, this is a creditor who is taking 25% of your wages every pay period who you never thought would be able to find you. Many debtors are going through this very stressful situation. What happens is the creditor files a lawsuit against you for the debt owed and they obtain a judgment for the debt. Once they obtain the judgment, the creditor is able to request a wage garnishment which will most likely be granted by the court. The wage garnishment is then sent to your Human Resources department where your employer is obligated by law to follow the judgment and withhold up to 25% of your earnings every pay period pre-tax. For most people, 25% of their earnings is debilitating chunk of money to lose every month, not to mention taxes, healthcare and retirement withholdings as well. But what most people do not know is that this process is much more stressful than it has to be and can be gone immediately at the filing of a bankruptcy.

A wage garnishment is stopped immediately once you file a bankruptcy. In fact, any lawsuits that have been filed against you will stop immediately after filing a bankruptcy. This means that once you file, you have the protection of the “automatic stay” and the creditor can no longer take money from your wages. Depending on if you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, the entire debt could be discharged and you will no longer be liable for the debt and no creditors will be able to reach your hard earned money. If this is happening to you, we would encourage you to call a bankruptcy attorney to discuss your situation and see how to stop it before you see your thousands of dollars disappear every month.

If you have questions about bankruptcy please give EH Law Group a call us or visit our website at www.ehlawgroup.com . Our San Francisco bankruptcy attorneys, San Jose bankruptcy attorneys or San Mateo bankruptcy attorneys will be able to assist you. We will discuss your situation and assess what the best option is for you. We look forward to speaking with you soon!

Chapter 13 Bankruptcy Lawyer

Wed, 04 Dec 2024 19:54:19 GMT

If you are struggling with your finances, you may need to seek out Chapter 13 bankruptcy lawyer.

With the help of a trained legal team, you can formalize a payment plan that allows you to repay back your debts through monthly payments without the risk of being evicted from your house or losing your car.

With a reasonable plan that has no interest charges, you will gain control of your financial life and enjoy peace of mind without losing your properties or possessions.

How a Chapter 13 Bankruptcy Lawyer Can Help

Chapter 13 bankruptcy can be a solution for many debtor situations such as experiencing a sudden loss of income due to a personal injury, falling behind on mortgage or alimony payments or other tax debts. You can make payments 60 months to repay your debts or just to have them discharged. That is five years with no interest or late fees. You do not have to lose your property or assets to a trustee to be sold and your money will be distributed to your creditors without any additional financial or legal consequences.

Chapter 13 bankruptcy is not for everyone. It is a complex process, but can provide long-term debt relief. If you find yourself in a financial situation with no apparent remedy, it’s time to contact the professional Chapter 13 bankruptcy lawyers at the EH Law Group.

Why File a Chapter 13 Bankruptcy Case?

There are several options one must consider before they file for bankruptcy. If you have limited assets then consider a Chapter 7 liquidation. If you meet the eligibility requirements then you may not have to pay back any debt.

Or, you can choose to reorganize your assets under Chapter 13 bankruptcy. The Chapter 13 bankruptcy process can be the best solution for individuals for the following reasons:

You can still apply for Chapter 13 bankruptcy if your request for a Chapter 7 case was denied previously.

Due to the flexibility of repayment plans, Chapter 13 bankruptcy can help you live your life without the continuous stress about your finances and overdue payments.

Under Chapter 13, you can save your home from foreclosure.

You can reschedule secured debts and pay them over an extended period. You can set new payment plans for a car that is older than 2.5 years old.

It is an excellent way to repay unsecured debts like medical bills and credit card payments.

You will be able to pay past-due legal expenses like child support and income tax without getting into legal trouble.

In some cases, you might be able to include the attorney’s fees in your Chapter 13 repayment plan.

How Does Chapter 13 Bankruptcy Work?

At EH Law Group, you will find a team of seasoned lawyers who will examine the case and go through your finances to suggest the best bankruptcy petition plan. If you do not qualify for a Chapter 13 bankruptcy, our legal counsel will recommend other options that may work for you.

The next step is to prepare the legal documents related to your case. A qualified member of our team will be responsible for reviewing your documents and will guide you to complete an online credit counseling class, as required by the Bankruptcy Code.

After that, our team will act as your agent with the bankruptcy trustee after drafting your petition and filing it on your behalf. We will support you through the process of your hearing until your bankruptcy case is approved.

At EH Law Group, we will provide you with the needed legal and emotional support involved with a Chapter 13 bankruptcy case. We are trained to answer your questions and provide clarification regarding how your bankruptcy case will proceed. Our bankruptcy attorneys will help you find a good way to repay your overdue debts without giving up any of your properties, so you and your family can enjoy stability.

Contact us today for your free initial consultation to discuss your financial situation. Our practice area covers the San Mateo and San Francisco areas. We look forward to providing the help and support you need.

San Mateo Bankruptcy Attorney Discusses Divorce and Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

We’ve all heard the old adage, “when it rains it pours” and it is never more true than when a couple files for divorce and then must also file for bankruptcy. Divorces can be costly especially if both the parties are not in agreement as to how to divide their assets and liabilities. Kelly Rutherfor, an actress on the hit show “Gossip Girl” just filed for bankruptcy following an extremely contentious divorce and custody battle. In her case, she had a son that she shared 50/50 custody with, however, because her husband lives in a foreign country and cannot come back to the States the children live with him and she must go overseas to visit them. She has been fighting to get physical custody of them to no avail. Rutherford is filing for Ch. 7 bankruptcy claiming over 2 million dollars in debts and only around $23,000.00 in assets. One of the biggest debts that she owes is to her divorce/family law attorney.

It is no surprise that many Americans have the same problem. Either the divorce will set the couple back financially or the couple’s grim finances have caused them to get divorced. It could be very beneficial for both parties to file bankruptcy before the divorce because there will no longer any debts to divide among the couple; an issue that can be a hot button during settlement negotiations. In California, all debts acquired during marriage are considered community property to be divided among both parties equally no matter what name the debt is under. Therefore, if the couple files for bankruptcy before the divorce proceedings, they can alleviate this very contentious issue leaving them to settle the divorce more amicably.

Our San Mateo Bankruptcy Attorney Discusses Galileo Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

On May 6, 2020, Galileo Learning, Inc. filed for Chapter 11 Bankruptcy. For parents in the Bay Area, that meant all camps including summer camps were cancelled. Lucky parents were given a sad email about how Galileo could not give everybody a refund but could get credit or a coupon for discount for future services. Other parents got a form notice of the bankruptcy with terms line Proof of Claim or 341 meeting .

Are you one of those parents? Regardless of what you received, your hard earned money is gone. Your next choices are limited. While some parents are trying to dispute credit card charges, the outcomes are dismal. The Bankruptcy case is rolling on and whether you lost $300 or $3,000 need to watch those bankruptcy deadlines!

If you need help navigating the Galileo Bankruptcy or understanding your options, my office is here to help. We have created a dedicated email address galileobk@ehsulaw.com for your questions.

httpssss:// www.sfchronicle.com/bayarea/article/Popular-Bay-Area-kids-summer-camp-files-for-15254284.php

Our San Jose Bankruptcy Attorney Discusses Short Sales and Foreclosures

Wed, 04 Dec 2024 19:54:19 GMT

It’s a very difficult decision that many San Jose and Bay Area residents have to make: to have your house go into a short sale or foreclosure. First, a short sale can prove to be difficult because the lender must agree with the value and then grant the short sale to go through before the debtor can sell their property. This can be a very timely process and may end with no sale at all. If the sale does go through, since the house is sold for less than what is owed, the debtor is taxed on the deficiency (the difference between the value sold and the value owed to the lender). Therefore, after a short sale, many debtors are left with thousands of dollars in taxes that they are unable to pay.

If the debtor decides to let the house foreclose, the first lender will take the house as the security and the debtor is no longer liable for any deficiencies even if the house is sold at auction for less. If the house is underwater and there is a second mortgage on the property, then the second mortgage becomes an unsecured creditor and collect the full amount in the second mortgage just like a credit card debt. However, a bankruptcy can discharge the full second mortgage along with any other credit cards debts and unsecured debts that the you may have. This is an option that many debtors can benefit from since it clears away all debt associated with the foreclosed home as well as the rest of the unsecured debts.

If you have any questions on short sales, foreclosures or bankruptcy, do not hesitate to contact the Law Office of Eddy Hsu and we can schedule and appointment to discuss your situation in more detail.

The Time to Save Is Now

Wed, 04 Dec 2024 19:54:19 GMT

Let’s face it; we are not getting any younger and that means we have less time to save for the future. If your working career is consumed with repaying your debts, how will you save for your retirement or your children’s college fund? It is time to face the music, get out of debt and start saving. A chapter 7 bankruptcy discharges or wipes away most unsecured debts such as credit cards and medical bills and provides for a financial fresh start. Begin your New Year by seeking advice from a bankruptcy lawyer and become financially independent.

Our San Jose Bankruptcy Attorney Discusses Bankruptcy and Stopping Foreclosure

Wed, 04 Dec 2024 19:54:19 GMT

One home in every 111 homes in the U.S. is currently facing foreclosure. About a million home foreclosures have been pushed back from previous years to be foreclosed on permanently in 2012. This means that the influx of foreclosures will cause the market to push back its recovery for another year. If you are one of these the millions of homes that are facing foreclosure, there is a way to save the home and give you the time that you need in order to get your affairs together. The idea of being kicked out of the beloved home that you have lived and loved for many years may be very daunting for most people. But a bankruptcy can help to stop the foreclosure and also help to get your life back in order. If you receive a foreclosure notice, a bankruptcy is the best way to stop the foreclosure. Once you file a bankruptcy, the debtor gets the protection of an “automatic stay”. This means that the debtor’s estate is stayed and no creditors or lenders can foreclose or collect money from the debtor. A bankruptcy can also let the debtor catch up on the arrears that they have on the house and even strip the second mortgage off the property.

If you house is in foreclosure, please give The Law Office of Eddy Hsu a call and we will be able to discuss the options that you have to save your house. If We look forward to speaking with you soon!

San Mateo Bankruptcy Attorney Discusses Stockton Chapter 9 Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

In June of this year, Stockton, California became the largest city in the U.S. to file for bankruptcy. After failing talks with creditors, Stockton became a Chapter 9 debtor. Bob Dies, the city manager of Stockton, blamed the bankruptcy filing on the 1996 decision to give firefighters full healthcare in retirement. At the time of this decision they thought that this would be cheaper than a pay raise. In following years more people demanded the same healthcare and they obliged. Since then, Stockton has been on a spending spree. They have raised pensions, put numerous amounts of money into their downtown area, and the housing market saw a huge decline in 2009. Now, sixteen years later they are finding themselves in the middle of a Chapter 9 bankruptcy with millions of dollars owed in debts.

A Chapter 9 bankruptcy provides municipalities with protection from creditors while it is trying to work out a plan to adjust the debts. Chapter 9 is different from other types of bankruptcy because it does not allow for liquidation of assets. Under the protection of a Chapter 9 case, municipalities will be able to extend timelines to repay debts, debt refinancing, and the reduction of interest on existing loans. A Chapter 9 requires a plan to show how you will re-pay your debts. Deciding which type of bankruptcy will work best for needs can be extremely time consuming and very difficult. Having the help of an attorney can make this process seem very easy and stress free. If you have found yourself in a financial situation that you would like to get out of please contact EH Law Group now at any of our locations in San Mateo, San Francisco or San Jose.

San Francisco Bankruptcy Attorney Discusses Supreme Court Ruling on DOMA and Effects on Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Today the Supreme Court struck down an important part of the Defense of Marriage Act. The Defense of Marriage Act by the federal government defines marriage as only between a man and a woman which means that only marriages between men and women get federal government benefits. Now, those benefits extend to same-sex marriages as well. One federal benefit that gay married persons can enjoy is filing for bankruptcy together. Prior to this, all gay married couples who share a household, income, assets and debts would have to file for bankruptcy separately. This meant two fees, two petitions, two 341 hearings. The petitions would have to be matched with individual information even though their lives were a couple. This effected most greatly the types of bankruptcy that gay couples could file. Since the type of bankruptcy a person can file is based on the household income, a gay couple may have to split their incomes in two when determining bankruptcy. There are times when one of the higher earning partners was forced into a Chapter 13 bankruptcy when they could file for a Chapter 7 bankruptcy if they could claim their partner who had a lower income. Because, the couple had to also file their taxes separately there was no way to show that the couple were of the same household to permit them to file for Chapter 7. There were cases that were the opposite as well, where the couple wanted to file for Chapter 13, but had to file for Chapter 7 based on the individual income. Hopefully, now that bankruptcy is is a right given to all couples, same-sex married couples will seek out more information about bankruptcy and the financial benefits it can give.

San Jose Bankruptcy Attorney Discusses Another Foreclosure Wave

Wed, 04 Dec 2024 19:54:19 GMT

It has been apparent that foreclosure notices are springing up more frequently in every neighborhood in the Bay Area. But the worse has yet to come. Zillow expects the resurgence in foreclosures this year, combined with excess inventory of unsold, bank-owned homes will contribute to a 3.7 percent national decline in prices before the market hits bottom in 2013 and stays there until 2016.

“The hangover from this crisis will far outlast the party of the boom years,” said Zillow chief economist Stan Humphries.

Getting through the remaining foreclosures and dealing with the resulting flood of homes on the market in the wake of the bank settlement is a necessary part of the healing process for the U.S. housing market, he added.

According to leading broker dealer Amherst Securities, some 9.5 million homes are still at risk of default and in February it said it expected to see the uptick in foreclosures start to hit in March and April.

There is other evidence that many of the foreclosures that did not happen in 2011 will happen this year.

A January report by the Neighborhood Economic Development Advocacy Project in New York found that in the first half of 2011 the number of 90-day pre-foreclosure notices in New York City outnumbered court foreclosure actions by a ratio of 14 to one, indicating that while proceedings were initiated against many homeowners, they were left incomplete.

“Now the banks have a settlement, foreclosure numbers for 2012 are going to be high,” said NEDAP co-director Josh Zinner.

So if you have a foreclosure or a notice of trustee sale for the coming year please give The Law Office of Eddy Hsu a call and we will be able to help you to stop the foreclosure sale and keep your house. We look forward to meeting with you!

California Homestead Exemptions Increase in 2010

Wed, 04 Dec 2024 19:54:19 GMT

Effective January 1, 2010 the California homestead exemption will increase and it is about time. A single person will be allowed $75,000; a married couple $100,000 and elderly or disabled persons $175,000. Although this is a welcome adjustment, some of our clients still have equity in excess of the exemption and depending on the amount of non-exempt equity, the Trustee may not determine there to be enough equity to liquidate and distribute to creditors. The Trustee is entitled to a percentage of the money recovered and if no funds are left for the benefit of creditors thereafter the trustee will abandon the asset to the creditor.

How Long Does Bankruptcy Appear on a Credit Report?

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy, of course, is a frightening concept to most people. It seems like an admission of failure or even a scar on your personal integrity, but it can have many benefits. Most bankruptcies result from unexpected events, such as an illness or disability that requires medical expenses that you cannot fully meet.

In short, bankruptcy is not necessarily a negative event or a stigma. The law is designed to give filers a fresh start in life, clear of debts that had become overwhelming.

If you’re contemplating or already entering into bankruptcy protection, your credit has probably already taken a pretty big hit from late, partial, and/or missed payments. Filing for bankruptcy will place a notation on your credit report, but it will also mark the start of a fresh beginning.

The question is: How long does the bankruptcy filing affect one’s credit score? Your credit score, of course, determines your ability to make purchases in life that require long-term commitments, such as buying a car or a home, even home furnishings and appliances.

The answer depends on which type of bankruptcy you file, Chapter 13 or Chapter 7. In either case, the mark on your credit score will last for years, but that doesn’t mean you can’t recover good credit long before the notation is removed.

For all your questions and concerns about bankruptcy in or around San Mateo, California, contact the EH Law Group . We have a combination of more than 30 years of experience in helping individuals and families navigate the bankruptcy system to obtain a fresh start in life. We stand ready to help you.

We have offices in both San Mateo and San Francisco, and we help clients in surrounding areas, including South San Francisco, Daly City, Oakland, and Santa Clara County.

Chapter 7 Bankruptcy

The federal bankruptcy code divides into chapters, and Chapter 7 is known as the liquidation option. Now, that sounds pretty scary, as if they’re going to come and take everything you have and sell it to pay off creditors. That’s far from the truth in California. The Golden State protects specific possessions and assets from liquidation, partially or fully. For instance, you can be spared up to $600,000 in home equity depending on the home values in your neighborhood.

Also, under federal bankruptcy law, some of your income sources are protected, such as Social Security, workers’ compensation, Veterans’ benefits, and disability payments. In other words, these sources can’t be attached to pay for debts owed, and they don’t usually count toward the income means test for filing for Chapter 7. The income threshold for Chapter 7 – how much you can earn before you don’t qualify – changes often but currently stands at $69,660 a year for a single filer and $113,615 for a family of four.

When you file for Chapter 7 or Chapter 13 (described next), you will be given an automatic stay, which prevents creditors and bill collectors from contacting you or attempting to seize your assets through court actions. At the same time, however, your bankruptcy filing will appear on your credit report for ten years under a Chapter 7 petition. As we will explain, that does not necessarily mean you cannot obtain credit and improve your score soon after filing.

Chapter 13 Bankruptcy

Chapter 13 is known as the wage-earners plan. Under this option, you calculate your disposable income – what’s left after meeting the essential costs of life – and come up with a repayment plan to cover your debts, at least partially. Then you make a monthly payment for three to five years to honor your obligations as best you can.

Of course, if you have secured debts for cars or homes, they will have to be honored as originally agreed upon unless you can get a refinancing agreement. The good news is that if you’re behind in your mortgage or car payments, you can include the arrears amount in your reorganization plan, but you will also have to continue to honor the original monthly payment plan if not modified.

A Chapter 13 filing will stay on your credit report for seven years, but again, that doesn’t mean you can’t begin rebuilding your credit and start fresh long before that period of time.

Rebuilding Your Credit

Chapter 7 bankruptcy ends within a few months, then you will be discharged from your unsecured obligations. Secured obligations such as home and car loans must be honored if you wish to retain those possessions.

Once you are discharged, and sometimes even before, you will be offered credit cards and auto loans from institutions that know you cannot file bankruptcy again anytime soon, but you have to check out the terms. Often, the interest rate can be high, and there may be other fees or conditions.

You can also seek out a secured line of credit, by which a credit union or bank loans you a small sum, perhaps $1,000, and you make monthly payments while the loan stays in an untouchable account. When you’ve made all the payments, the money is yours, but the main point is if you adhere to the payment schedule, you can improve your credit score to obtain further credit opportunities.

A Chapter 13 bankruptcy is a little different in that you must make payments for three to five years before being granted a discharge. Also, if you seek credit during the repayment period, you will usually have to obtain permission from the court. Nonetheless, you may still receive offers in the mail, but if all your disposable income is going toward the repayment plan, a new credit arrangement can be difficult. That’s one reason most people opt for Chapter 7 if they can.

Rely on Dependable Legal Guidance

If you live in or near San Mateo or San Francisco, California, reach out to us at the EH Law Group for trusted bankruptcy counsel. We can assess your situation and advise you of the best path going forward. In addition, we stand ready to help you rebuild your credit as you move toward a fresh start in life.

Repairing Your Credit After Filing for Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

According to the American Bankruptcy Institute (ABI), bankruptcy filings in January of 2023 were up by 19 percent nationwide over 2022. Chapter 7 filings were up from 15,177 to 16,606, and Chapter 13 filings were up from 10,741 to 14,105.

The primary difference between the two is that Chapter 7 is known as the liquidation option and Chapter 13 is the “wage-earner’s plan” because it involves paying back part of the debt. Another major difference is the time it takes before you can be discharged from your obligations. A Chapter 7 may take only a few months, while a Chapter 13 will take three years minimum or up to five years.

Of course, the other major difference is the fallout on your credit score and credit availability after filing for bankruptcy. The filings will remain on your credit report for years, but that doesn’t mean you can’t rebuild your credit and move forward in life much sooner than that.

If you’re considering bankruptcy or have already completed the process in or around San Mateo, California, contact the bankruptcy attorneys at EH Law Group. We not only will help you undertake the bankruptcy process to clear your debt obligations, but we also will explain how to rebuild your credit once the process has begun with the filing appearing on your credit report.

We also proudly serve clients throughout the surrounding area, including San Francisco – where we also have an office – as well as Santa Clara County, Oakland, Daly City, and South San Francisco.

How Long Does a Bankruptcy Stay on Your Credit Report?

Once you file, your bankruptcy petition will show up on your credit report, so the starting date for your credit notation on the major credit bureaus – TransUnion, Equifax, and Experience – is the filing date, not the discharge date. This is important because a Chapter 13 discharge can take three to five years, while Chapter 7 takes only months, generally speaking.

A Chapter 7 filing is considered the more serious of the two, as it involves the potential liquidation of personal assets to satisfy creditors, though California does offer generous exemptions, especially when it comes to home equity.

In any case, a Chapter 13 filing will stay on your record for seven years, and a Chapter 7 for 10 years, though that doesn’t mean you can’t begin to restore your credit almost immediately after discharge and sometimes before. In Chapter 13, if you want to take on new credit – for instance, trade in your old car and get a new one – you may have to get bankruptcy court approval if you have not yet been discharged.

Does That Mean I Can’t Do Anything Requiring Credit for 7 to 10 Years?

Not really. Practically speaking, many government-backed mortgage/home-buying programs will allow you to purchase a home a year or two after filing Chapter 13. A Chapter 7 filing can take longer, maybe two to four years.

You can often purchase a car within months of filing either Chapter 7 or Chapter 13. You may even get offers in the mail, but you will need to check the terms being offered. The interest rates will likely be higher because you’ll be viewed as a greater credit risk.

What Steps Can I Take to Rebuild My Credit?

Even though the bankruptcy will stay on your credit report for 7 or 10 years, your score should actually start improving long before that, unless you fall into the same bad habits that forced you into bankruptcy before, although most filers simply fall victim to changing economic times (lose their job, run up huge unexpected medical bills, or otherwise are forced to take on credit they wouldn’t have otherwise). Here are some practical steps to take:

Join a credit union and take out a credit-builder loan: If you can do this – maybe you already belong to a credit union – the institution will loan you a small amount, usually $1,000 or less, and place it in a special account that you can’t tap until you pay off the loan. As you make monthly payments, that will help improve your credit score, but make sure your payments are made on time in the full monthly amount.

Get a secured credit card: Credit unions and some banks offer secured credit cards, meaning you give them a sum of money and they give you a credit card in that amount. They keep the money, of course, but if you use your card wisely and make timely, full payments each month, it will help with your credit score.

Consider credit card offers sent to you: Just like auto dealers and auto loan companies will probably send you offers in the mail, so too will credit card companies. In both instances, you need to check the terms regarding interest rates, potential monthly fees for the credit card, down payment requirements, and so on. The offers are likely to have risk protections built in.

Again, however, if you take out a credit card or purchase a vehicle, you need to make sure your payments are made in full on a timely basis. Delinquency and skipped or partial payments can send your credit score plunging again.

Diligent and Detailed Legal Guidance

Wherever you are in the Greater San Francisco Bay Area, contact the bankruptcy attorneys at EH Law Group. Bankruptcy can sound like a scary proposition, but it really does offer you a fresh financial start in life.

If your debt is overwhelming you, reach out immediately. We will review your situation with you and help you navigate the bankruptcy system to put your debts behind you and move forward.

If you’ve already been discharged and want help in repairing your credit, we will be happy to answer your questions and provide concrete guidance to restore your credit and enjoy life to the fullest. Whatever the circumstances, you can rely on our knowledge, experience, and resources.

How Bankruptcy Affects Your Spouse

Wed, 04 Dec 2024 19:54:19 GMT

Statistics show that people filing for bankruptcy protection in California file for chapter 7 bankruptcy 80 percent of the time and for Chapter 13 bankruptcy 20 percent of the time. There are major differences in both types of filings, and determining which bankruptcy to file depends on specific circumstances, such as having a spouse.

A common question is whether one spouse who has accumulated most of the outstanding debt files for bankruptcy on their own or file jointly. California is a community property state, meaning that everything acquired during a marriage – including debt – belongs to both spouses. But if the debt warranting the bankruptcy filing is in one spouse’s name, should that be an individual or joint filing?

If your debts are overwhelming you in or around San Mateo, California, and you need to seek bankruptcy relief, contact the attorneys at the EH Law Group . We will assess your situation and advise whether an individual or joint filing is the most beneficial option. With our combined three decades of experience in helping individuals and couples navigate the bankruptcy system for a fresh start in life, we will help you achieve that fresh start.

With offices in San Mateo and San Francisco, we help clients throughout the Greater San Francisco Bay Area, including South San Francisco, Oakland, Daly City, and Santa Clara County, California.

Community Property in California

California is one of 10 states nationwide that observes the standard of community property, meaning that everything acquired during the time of marriage is jointly held or owed since debts are considered community property as well. There are exceptions for property or assets that are acquired through inheritance or as a gift.

In addition, anything acquired before marriage is considered separate property, but even in this case, that property can become commingled. For instance, if you own a rental unit before marriage, but after marriage, you use joint assets to maintain the property – you use your spouse’s income to help in the upkeep – the property can become jointly held, at least to some percentage.

The community property standard is vital when it comes to bankruptcy since creditors can hold both parties liable if one spouse in debt files for bankruptcy. It’s possible that the creditors could go after the other spouse even if one spouse is discharged from debts through bankruptcy.

Filing for Bankruptcy as an Individual When Married: Pros and Cons

With California’s community property standard in mind, what if one spouse runs up huge debts in their name only and files for bankruptcy protection as an individual?

If you file for a Chapter 13 reorganization plan, then community property will not be affected, as long as the assets are included in your repayment plan. If you file a Chapter 7 liquidation plan, the bankruptcy trustee will attempt to partition or divide the community property so it doesn't affect the other spouse.

California’s exemptions for personal property and other assets will also figure into the equation so that the non-filing spouse can be protected. For instance, depending on where you live, your home’s equity can be exempted up to $600,000.

When all is said and done, assuming that joint assets aren’t subject to any seizure or sale, the bankruptcy will affect only the filing spouse’s credit score and creditworthiness, which will stay on that person’s report for seven to ten years, depending on whether it was a Chapter 13 or Chapter 7 filing, respectively. The other spouse will have a clear and unaffected credit report. With one spouse having good credit, it can be easier to move forward.

Filing for Bankruptcy as a Couple: Pros and Cons

One of the prime benefits of filing jointly, assuming both have debts they need to discharge, is that both spouses will gain a fresh start, but on the other hand, if one spouse has a clean credit history, the bankruptcy will cloud that person’s creditworthiness and credit score. Another benefit is cost. The filing fee for two is the same as for one. In some cases, the exemptions can be doubled to cover assets belonging to each spouse.

Factors to Consider

Potentially the deciding factor is which spouse is more exposed to debt issues and how a bankruptcy filing may affect the other spouse who has a positive credit history. Exemptions available are certainly a factor, so it’s a good idea to confer with an experienced bankruptcy attorney to weigh all your options. You certainly don’t want your spouse to have their credit damaged because of your mistakes or misfortune.

Compassionate Legal Assistance

If you're in or around San Mateo or San Francisco, California, and feeling overwhelmed by debt, contact the bankruptcy attorneys at the EH Law Group immediately. We will evaluate your situation and present your legal options to you. If you file for bankruptcy, we will guide and assist you every step of the way until you achieve the fresh start in life you deserve.

When Is Filing Bankruptcy a Good Option?

Wed, 04 Dec 2024 19:54:19 GMT

Nobody looks forward to the day when they have to file for bankruptcy, but in most cases, this will be the best decision to help get your finances back in order. Recently, the amount of bankruptcies in California has actually dropped with the number of filings in the Northern District steadily declining over the last five years, from a high of 8,656 in 2018 to 3,902 in 2022, according to the US Bankruptcy Court. Still, it may be the right choice for you, and it can be hard to know just when to start this process.

One common question we get from clients is, “When should I consider filing for bankruptcy?” The answer will be different for everyone, and the best way to evaluate your specific situation is to meet with an experienced bankruptcy attorney .

If you’re in the San Francisco, Santa Clara County, Oakland, Daly City, South San Francisco, or San Mateo, California area, contact us at the EH Law Group to schedule a consultation. We have everything necessary to focus on your best interests.

Assess Your Current Financial Situation

The first step in this process is to thoroughly assess your current financial situation and look at all your options for debt relief. You’ll need to make a detailed inventory of all your money coming in and the money you owe. This should list all earned income and any other sources of income you currently have, as well as all your regular debt obligations. This could include rent or mortgage, utilities, tuition, car payments, credit card debt, student loan debt, personal loan debt, child support, alimony, or medical debt. You should have a clear understanding of exactly how much debt you have and how much you can reasonably be expected to pay each month.

One requirement of declaring bankruptcy is proving you are unable to meet your debt obligations, and this must be presented with detailed documentation. Another question you should ask yourself is how often creditors are contacting you about your debt. The longer and more often they’re calling you, the more likely it is you should file for bankruptcy.

Understand Your Bankruptcy Options

For individuals, there are two main options for filing: chapter 7 bankruptcy and chapter 13 bankruptcy.

Chapter 7 is also referred to as “liquidation bankruptcy” because it requires you to liquidate your non-exempt assets to pay off debts before any other debt can be discharged. However, the vast majority of chapter 7 filers won’t have many assets that require liquidation. To qualify, your income must be below the median income of a household your size, and most consumer debt will be discharged, such as medical bills, credit card debt, past due rent, personal loans, or past due utilities.

Chapter 13 is also called a “wage earners plan” because it’s intended for those who earn more than the average median household income and those who can afford to pay back some of their debts. This type of bankruptcy also allows individuals to keep their assets and instead set up a three to five-year repayment plan that they must adhere to. To discharge debt with this plan, you must stay current on all your payments and pay them in full. After this, any remaining dischargeable debt will be wiped out. Like chapter 7, eligible debt can include student loans, credit cards, medical bills, past due rent and utilities, or personal loans.

Know Which Debts Won’t Be Forgiven

Regardless of which chapter you choose to file, there’s some debt that is not dischargeable, even after you sell off assets or complete a repayment plan. One of the biggest is any debts involved in family law, such as child support or alimony. Two other large categories of non-dischargeable debt are student loans and most taxes. In some cases, you may be able to discharge certain income taxes that are over three years old and meet other criteria under the bankruptcy code.

Consider Your Assets That Could Be Affected

The major consideration when choosing between chapter 7 and chapter 13 is which assets could be affected by liquidation. In general, for a chapter 7 filing, you’ll have to sell off (liquidate) any non-exempt assets before a judge will approve your bankruptcy claim. However, you’ll be able to keep any essential assets which often include a vehicle that you use to get to and from work or school and your home. In some cases, though, these won’t be exempt.

For example, if you own your home and have considerable equity, you may be forced to sell. Or, if you own multiple cars or your main vehicle is considered a “luxury” car, you may not be able to keep it. In most cases, you’ll be able to keep your pension and retirement funds, but you should always consult with an attorney first about this.

Know Your Options

For more help deciding whether or not filing for bankruptcy is a good idea for you, contact our team at the EH Law Group in San Mateo, California, to learn about your options. We have the resources, knowledge, and experience to lead you toward the correct path.

The Difference Between Chapter 7 and Chapter 13

Wed, 04 Dec 2024 19:54:19 GMT

Although most people are familiar with the basics of what filing for bankruptcy means, they may not adequately understand the difference between chapter 7 bankruptcy and chapter 13 bankruptcy. According to the US Bankruptcy Court, there were 2,378 chapter 7 filings and 1,382 chapter 13 filings in the Northern District of California in 2022, which includes those living in the Bay Area. These are two of the most common options available to individuals, but how do you decide which is right for you? To speak with bankruptcy attorneys in your region, contact our knowledgeable team at the EH Law Group. From our offices in San Mateo, California, we’re proud to serve those throughout the surrounding area, including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Chapter 7 Bankruptcy

The majority of individual filers will opt for chapter 7 bankruptcy. This type of filing is also referred to as “liquidation bankruptcy” because the filer is required to sell off (liquidate) any non-exempt assets to pay off debt before any other debt can be discharged. That said, in most cases, chapter 7 filers won’t have any assets that are eligible for liquidation and can most often proceed straight to the filing.

There are certain criteria you’ll need to meet to file under this chapter, and one of the most important pertains to your income. To qualify, you must meet the “means test.” This means that your current monthly income must be less than or equal to the average median income of a same-size household in your state. For example, if you’re in a household of three, your average gross income will be compared to other three-person households in California. Your disposable income will also be evaluated to see if you have enough left over after your allowable expenses to establish a repayment plan. If it’s deemed that your income is too high or that you have an adequate amount of disposable income, you’ll likely have to file for schedule 13 instead of 7.

Chapter 7 is an ideal choice for those who don’t have a lot of income (though you can still qualify with steady employment), who don’t have a lot of disposable income, and who don’t have a lot of assets. If this is the case for you, it’s likely that you’ll be able to proceed with chapter 7 without losing your assets. It’s worth noting that while filing for bankruptcy can provide substantial debt relief, there are some debts that cannot be discharged, such as alimony, child support, student loans, and most taxes.

Chapter 13 Bankruptcy

Those who wish to discharge debt but are concerned that their income may preclude them from qualifying for chapter 7 may want to consider chapter 13. Chapter 13 is sometimes called the “wage earners” plan because it’s ideal for those who make too much money to qualify for chapter 7 but still need financial relief. With this type of bankruptcy, the individual will work with their attorney and the courts to establish a repayment plan to pay off their debts that typically lasts three to five years. At the end of this repayment period, any eligible debt that has not been paid off can then be discharged. This option is also a good idea for those who want to protect their assets (for example, if they have considerable equity in their home or own more than one car that they want to keep) since you won’t be required to liquidate any assets.

However, in order to have your debts eventually discharged, you must stay current on all payments, paying them on time and in full. If you don’t do this, you’ll be at risk of losing assets. Like chapter 7, only consumer debt can be discharged this way, meaning debts like medical bills, personal loans, past rent, past due utilities, or credit card debt are all eligible.

Getting the Legal Guidance You Need

While there’s no specific law that states you have to work with a bankruptcy attorney when filing, most people find hiring a lawyer to be a necessary step. Your attorney can help evaluate your specific situation and advise you on which type of bankruptcy makes the most sense for you. They may also be able to help those who are right on the line qualify for chapter 7 by reallocating certain expenses or assets so that you meet the income requirements. In almost all cases, individuals report that they end up saving more of their money and getting through the bankruptcy process faster when working with an attorney compared with attempting it on their own.

Understand Which Option Is Best for You

If you’re experiencing financial troubles and want to know more about your choices between chapter 7 and chapter 13 bankruptcy, contact us at the EH Law Group . We proudly serve those in and around San Mateo, California. Our team has everything necessary to assist your specific situation and help you look toward a brighter future.

My Mortgage Forbearance Ended. Now What?

Wed, 04 Dec 2024 19:54:19 GMT

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided $2 trillion in federal funds to help Americans through the pandemic when the country faced lockdowns, and people’s income paused.

Part of that act also allowed homeowners behind on mortgages to pause their monthly payments to weather the transition. Some private mortgage lenders also participated in the program.

The extensions granted from the CARES Act were for 18 months, meaning most of them have expired or will soon, and for many, there are up to 18 months of back payments to be repaid. The question is: What happens when the extension ends? Depending on the lender and the borrower’s financial situation, various options exist.

If you’re a homeowner in or around San Francisco or San Mateo, California, whose forbearance period has ended and you’re struggling to catch up and wondering what your options are, contact the attorneys at the EH Law Group .

You may need to consider ways to get rid of other debts that make paying your mortgage challenging. We can advise you of your options under bankruptcy protection. From our offices in San Francisco and San Mateo, California, we proudly serve clients in all surrounding areas, including Santa Clara County, Oakland, Daly City, and throughout South San Francisco.

Understanding Mortgage Forbearance

The CARES Act provided relief during the Covid-19 pandemic for homeowners to pause their mortgage payments if their loans were backed by federal programs, including the FHA, VA, Fannie Mae, Freddie Mac, the USDA, and the like. Taking advantage of the program was not without its risks and consequences.

One consequence, according to the credit reporting agency Experian, is that those who took advantage of the payment pause saw up to a 100-point drop in their credit score. This makes it harder to get loans or credit going forward. The main consequence, of course, is that the paused payments have to be repaid.

My Options Now That Forbearance Has Ended

Forbearance, of course, doesn’t mean the payments are forgiven. You will have to repay what was paused during the pandemic.

Your options for repaying what was paused should have been explained to you when you took advantage of the program. Some lenders may have asked for a lump-sum payment once the forbearance period ends, but others had a steady repayment plan to cover the lapsed payments. Under a repayment plan, you resume normal monthly mortgage payments plus extra to make up for what was missed.

You can also work with your lender to get a deferral, by which you resume the monthly payment you owed before forbearance, while the amount due from the paused period is simply added to the end of your loan. This, of course, means the loan will take longer to repay.

You can also consider a loan modification, essentially a refinancing of everything that’s owed – principal and paused payments. In light of rising interest rates to combat inflation, however, this can be a costly proposition.

Your original loan may have been in the low single digits, but now average rates have almost doubled from the golden years of a loose money supply. You may be able to stretch out the repayment period to keep the monthly amount affordable, however.

You also can sell your house if you simply cannot meet the monthly obligation once the repayment part is added on. This, of course, means you’ll have to leave your home and find somewhere else to live, not a pleasant prospect, but it may be better than having your home foreclosed and seeing your credit score take a huge hit.

New Rule to Help Avoid Foreclosure

The Consumer Financial Protection Bureau (CFPB) has issued a rule to help struggling homeowners avoid foreclosure. The rule requires lenders to follow three steps before proceeding with a foreclosure:

The first step is that the loan servicer must review a loss mitigation application submitted by the borrower. The application shows the borrower’s financial and household information.

The second step is that the loan servicer must follow state and local laws to verify if the home has been abandoned before going forward with a foreclosure.

The third step requires the lender to make a diligent effort to contact the homeowner before proceeding to foreclose. Foreclosure is permitted if the borrower is at least four months behind in their payments and has been unreachable for more than 90 days.

There is also the option of reducing your unsecured debt through a bankruptcy filing, which might clear up enough cash to continue to make your mortgage payment. A Chapter 13 filing, for instance, allows you to pay off your unsecured creditors over a three- to five-year period with your disposable income – what’s left after meeting all your living expenses, including your home and car. This means your unsecured debt load will go down to only what’s affordable.

Contact EH Law Group for Support

If you have questions or concerns about your mortgage now that forbearance has ended, or is ending, contact us at the EH Law Group . Our team has the resources, knowledge, and skill to direct you toward the correct path. We have offices in San Francisco and San Mateo to serve clients in all surrounding communities of California.

Dispelling Bankruptcy Myths

Wed, 04 Dec 2024 19:54:19 GMT

The word “bankruptcy” can send chills down people’s spines, with thoughts of losing everything and permanent financial ruin. When it comes to bankruptcy, there are many misconceptions about the process.

The truth is bankruptcy is encoded in federal and state law and provides people with a means to create a fresh financial start. In most cases, it does not mean anything near the loss of everything. In fact, a bankruptcy petitioner can keep everything while reducing and ultimately discharging unsecured credit obligations.

If you find yourself in a credit bind in or around San Mateo or San Francisco, California, contact us at the EH Law Group. We are bankruptcy attorneys who will review your financial situation, present your options, and guide you through the bankruptcy system until you have a deserved fresh start in life.

We proudly serve clients from our offices in San Francisco and San Mateo, including Santa Clara County, Oakland, Daly City, and South San Francisco, California.

How Bankruptcy Works: Myth and Reality

In 2022, California led the nation in bankruptcy filings with 31,702, which was actually way down from 2011 when the Golden State saw more than 240,000 filings. Nationwide, Chapter 7 filings outnumber Chapter 13 filings, largely because Chapter 7 is over in a matter of months, while Chapter 7 can take three to five years before the petitioner is given a discharge.

Chapter 7 is the “liquidation” option, which means that the bankruptcy court can seize some of your assets and sell them to satisfy creditors. California, however, offers generous exemptions, so you can often keep your home even when you have great equity in it. Your vehicle may also fall under the exemption limit, and if it’s leased, you can keep it as long as you make the payment.

Chapter 13 is the “wage-earners plan.” For Chapter 7, you have to pass an income means test adjusted for the size of your household. If your income is too high for Chapter 7, you will have to use Chapter 13, which uses your disposable income to pay back unsecured creditors. You can keep your house and car as long as you continue to pay for them fully.

Disposal income is what is left over after living expenses. You then use that disposable income to make monthly payments to the bankruptcy trustee assigned to you for three to five years. The trustee will pay your unsecured creditors, but obviously at a reduced level. You will be discharged at the end of the repayment period.

Common Misconceptions About Bankruptcy

Over the years, we’ve encountered the following misconceptions/myths about bankruptcy:

"Bankruptcy permanently ruins your credit": While your bankruptcy filing stays on your credit report for seven years with a Chapter 13 filing and ten years with a Chapter 7 filing, once you’re discharged you can start rebuilding your credit. In many circumstances, credit card companies will send you offerings, but watch out for annual fees and high-interest rates. You can also often purchase a car almost immediately, and a home purchase – depending on your filing type – can be accomplished in a matter of months or at most, two years.

"Bankruptcy discharges all debts": Bankruptcy does allow you to discharge almost all unsecured debts, except for spousal or child support payments, most student loans, and most past-due taxes. Secured debts are not discharged, but the automatic stay given by the bankruptcy court once you file allows you to work with your lender to restructure your loan or refinance it so you can keep your real property, such as a car or home.

"You lose all your possessions": As mentioned earlier, in a Chapter 13 filing, you can keep whatever you can pay for when it comes to real property. You can pay off your unsecured obligations through your disposable income. In a Chapter 7 filing, you may be exposed to having assets sold off to satisfy creditors, but California offers generous exemptions. As for homes, a lot depends on in which county you reside. Check with us about exemptions if you’re considering Chapter 7.

"You can only file for bankruptcy once": Not true. You can file multiple times, but there are time limits between filings. If you are discharged from Chapter 7, you have to wait eight years to file Chapter 7 again, but if you want to do Chapter 13, the wait is only four years. If you file a Chapter 13, you can file for another Chapter 13 in two years after discharge from the first one.

"Bankruptcy doesn’t stop creditor harassment": When you file for bankruptcy, your creditors, secured and unsecured, will be issued an “automatic stay,” which means they cannot contact you or try to collect on your debts while the bankruptcy process proceeds. However, secured creditors can petition to have the stay lifted, and they can repossess your car or foreclose on your home if you are behind in payments. The stay will give you time to work with your lenders to make good on everything or to refinance and move forward.

"Debt consolidation is a better option": We’ve all seen TV and online ads touting debt consolidation. What the ads don’t mention is the company working on consolidating your debts is going to ask for a nice up-front fee and then charge you a monthly maintenance amount. Chapter 13 is almost always a better option as it only touches your disposable income rather than setting an arbitrary monthly sum that you may not be able to meet.

You Can Rely on Us

Bankruptcy is a clear path to a financial fresh start. Reach out to us at the EH Law Group to discuss your personal situation and which option – Chapter 13 or Chapter 7 – is best for you. We will help you through all phases of the process until you obtain a new lease on life. We proudly serve clients in neighboring communities from our offices in San Francisco and San Mateo, California.

What Not to Do Before Filing for Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy can be a frightening word. Many people equate it with losing everything and never being able to get credit again to buy a car or home. For the most part, those fears are unfounded.

Depending on the type of bankruptcy you file—Chapter 13 or Chapter 7—you’d be surprised at how many assets you can retain and how your financial future may actually be better than you initially thought. A fresh start is indeed possible under bankruptcy, offering you and your loved ones a clean slate with which to begin life anew.

Like every other decision in life, however, a bankruptcy filing requires some forethought and planning. Depending on your circumstances, you may not want to rush into a bankruptcy petition. In other circumstances, you may want to act quickly. There are also actions you should most definitely avoid before you attempt to file for bankruptcy.

If debt is overwhelming you in or around San Mateo, California, contact our bankruptcy attorneys at EH Law Group . We will analyze your financial situation and advise you of your best options going forward. We can help you navigate the bankruptcy process from start to finish so that you can seek a fresh financial start.

In addition to San Mateo, we proudly serve clients throughout San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco. Set up a consultation today.

What NOT to Do Before Filing for Bankruptcy Protection

Our clients often wonder what concrete actions they can take—and what actions they should not take—before filing for bankruptcy. Here are some actions that may negatively impact your chance at a brighter financial future:

Using Retirement Savings To Pay Off Debts

Many of your assets are protected from creditor seizure during bankruptcy. Your retirement savings, Social Security, many public benefits, and even worker’s compensation and unemployment insurance cannot be touched. Your real assets are also protected under California’s generous exemptions for cars, homes, tools of the trade, and more.

What this means is that you should not tap into your retirement savings to pay your bills. Similarly, you should not take out a second mortgage to get rid of debt. Consult with your attorney for a solid strategy instead.

Taking On Any New Debt

Don’t get a personal loan (or second mortgage) to pay off debts unless the payment is manageable and will relieve you of all your obligations in a decent period of time. However, this is rarely the case. When you’re in debt, getting a personal loan is probably going to include elevated interest rates and onerous terms if you’re late. Generally speaking, debts that occurred within 90 days of your bankruptcy filing will not be included for discharge unless they were for emergencies. In other words, you can’t go on a shopping spree for jewelry and clothes.

Moving or Hiding Assets

You may concoct a plan to “sell” a car to a friend until your bankruptcy is concluded and then get it back for free or with little or no payment, but this can be considered bankruptcy fraud. Your petition can be dismissed and you yourself are subject to prosecution.

Ignoring Taxes Due

Taxes are generally not dischargeable in bankruptcy, and your filing will have to be accompanied by your latest tax return documents. Make sure your taxes are all current.

Misrepresenting Your Personal Assets Or Other Information

It may be tempting to not include assets you have or income sources that you enjoy when filing for bankruptcy, but like the “selling the car” scenario, this can only come back to haunt you.

Selectively Paying Debts

Don’t juggle obligations, such as paying some, ignoring others, or paying less than the minimum. When it comes to unsecured obligations, you’re likely better off simply stopping paying all of them until you file for bankruptcy. The bankruptcy filing will give you what is called an “automatic stay,” which means creditors and bill collectors have to stop contacting you and attempting to collect. Keep in mind that secured creditors for cars and homes, however, can seek a removal of the automatic stay to pursue repossession or foreclosure, so you need to act quickly to try to refinance or get better terms.

Trying to File for Bankruptcy Alone

Bankruptcy filings across the nation are on the rise in 2023. In fact, the American Bankruptcy Institute (ABI) reports that all filings in May 2023 were up 23 percent from May 2022 and stood at 38,669 vs. 31,330 in 2022. Although filing for bankruptcy may be an increasingly popular choice for average consumers, this doesn’t mean that you should attempt the process all on your own. The best advice for pursuing bankruptcy has always been—and will always be—to consult with an experienced legal team.

Remember, a bankruptcy filing is not a slam dunk. You need to submit many documents, including debt obligations, credit report statements, income proof, and tax filings to even get the process going. In addition, in either Chapter 13 or Chapter 7 bankruptcy , you will have to attend a meeting with creditors, who can challenge your petition. An experienced bankruptcy attorney can help you navigate all these requirements and then exercise your rights when any challenges or obstacles come forth.

Questions? Contact Our Bankruptcy Attorneys

You may be unsure if bankruptcy is your best option, but you should at least seek a professional evaluation and guidance. You may spend weeks or even months being hounded by creditors and bill collectors when you can stop it all with a bankruptcy petition. You’ll be able to emerge with a fresh financial start, your unsecured creditors no longer on your case.

If you're in San Mateo or anywhere else in California, contact the bankruptcy attorneys at EH Law Group. We will analyze your situation and advise you of your best option going forward, and then guide you through the bankruptcy process to obtain a new lease on life.

Understanding the Rights and Limitations of Creditors

Wed, 04 Dec 2024 19:54:19 GMT

According to the Federal Reserve Bank of New York, Americans’ total credit card balance stood at $986 billion in the first quarter of 2023, the highest level since they began tracking in 1999.

Given these statistics—and taking rising rates of inflation into account—it’s not unusual for individuals and families to suddenly be worried about meeting their credit card and other debt obligations. Some people may already be just barely making minimum payments or juggling payments among creditors to keep the phone calls and collection efforts at bay.

Creditors and bill collectors, of course, are subject to restrictions set by both federal and state legislation. You do have resources to limit their efforts via phone, text, and email—but ultimately, these creditors have recourse to come after your income and assets. Depending on how deep in debt you are, bankruptcy might be an option to help you get rid of unsecured debt obligations and get a fresh start in life.

For all your financial and debt questions and concerns in or around San Mateo, California, contact the legal team at EH Law Group . We can meet with you, discuss your financial situation, and then advise you of your best legal options going forward. Our team proudly serves clients throughout the surrounding area including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Laws Concerning Consumer Rights

Both California and the U.S. federal government have enacted legislation that protects the rights of consumers, while at the same time placing restrictions on creditors and bill collectors. These rights include:

THE FAIR DEBT COLLECTION PRACTICES ACT (FDCPA): This federal legislation makes it illegal for debt collectors to use abusive, unfair, or deceptive practices when trying to collect on a debt. The FDCPA applies to credit card debt, car loans, medical bills, student loans, mortgages, and other household debt. It does not apply to business loans.

THE FAIR CREDIT REPORTING ACT (FCRA): This federal legislation concerns your rights about those agencies that collect, use, or distribute information on your credit history or rating. There are the three big agencies—Equifax, TransUnion, and Experian—but there are also others that track check writing histories, medical records, and rental history records. Under FCRA, anyone denying you credit based on a credit report must inform you. FCRA also gives you the right to get a copy of any credit report in your name.

CALIFORNIA CONSUMER PROTECTIONS: The California Consumer Financial Protection Law gives the Department of Financial Protection & Innovation (DFPI) new powers to oversee debt collectors, debt-relief companies, credit reporting agencies, consumer credit repair companies, and others. The new law created a Consumer Financial Protection Division.

Collecting Debts: What’s Allowed and What Isn’t

The FDCPA issued guidelines on how and when debt collectors can contact you, including these provisions:

No contact before 8 a.m. or after 9 p.m. unless you agree to it

No contacting you at work if you tell them that you can’t receive such calls at work

No contact by email or text message if you ask them to stop

No more than seven calls within a seven-day period, or within seven days after talking with you by phone about a particular debt

No private messaging on social media if you ask them to stop

Note that debt collectors can contact you by phone, text, email, and social media unless you ask them to stop. The best way to do this is by sending a letter by certified mail, keeping a copy for yourself. Once the debt collector receives the letter, they can only confirm that they will cease contacting you. They cannot try to collect on the debt by the means you asked them not to use.

Of course, the creditor or debt collector does have legal options to force you to pay up. The primary means for this is to file a lawsuit against you. If you are served notice of a lawsuit, you must respond to it promptly, or the plaintiff suing you can get the court to issue a summary judgment. If that happens, they can garnish your wages or even place a lien on your home.

Bankruptcy’s Effect on Debt Collections

Once you file for bankruptcy, the court will issue what is called an “automatic stay.” This order forces creditors to cease contacting you and to stop all collection efforts. While this stay will pertain throughout your bankruptcy period, it is possible for secured creditors—cars and homes—to get the stay lifted to proceed with repossession or foreclosure. But it also gives you a window to try to renegotiate or refinance.

Contact Us for Reliable Legal Counsel

If you are facing growing or overwhelming debt obligations—or your phone is ringing off the hook with collection calls—it’s time to examine your options. If you’re in or around San Mateo, reach out to our attorneys at EH Law Group . We have helped countless others in your situation achieve a fresh financial start. We can help you, too.

Can I File for Bankruptcy if I Lost My Job?

Wed, 04 Dec 2024 19:54:19 GMT

According to data from the U.S. Bureau of Labor Statistics , about 16.8 million individuals lost their jobs in 2022. Losing a job can have a devastating effect on your financial and emotional health. When experiencing financial anguish after a job loss, filing for bankruptcy is an option to achieve debt relief. Fortunately, bankruptcy can help discharge some of your unsecured debts. However, your bankruptcy options will be limited since you have no source of income.

With over 30 years of combined experience, we have the resources to help individuals who are unemployed in bankruptcy-related matters. Our highly-skilled California bankruptcy attorneys will look at your financial situation and inform you about the different unemployed bankruptcy options that might be available to you. We proudly serve clients across San Mateo, San Francisco, Daly City, Oakland, South San Francisco, and Santa Clara County, California.

Impact of Job Loss on Bankruptcy

Job loss or unemployment is among the most common reasons to file for bankruptcy. In California, a person who is unemployed may be eligible to file for Chapter 7 bankruptcy. You will have to take the bankruptcy means test in order to qualify. Conversely, you may face different challenges if you’re seeking protection under Chapter 13 while unemployed.

Filing for Bankruptcy While Unemployed

As mentioned earlier, your eligibility for bankruptcy while unemployed and your chances of a successful petition will depend on the chapter you’re filing for.

Filing for Chapter 7 Bankruptcy While Unemployed

Chapter 7 bankruptcy helps individuals and business owners wipe out their general unsecured debts and achieve a fresh financial start. Essentially, you do not have to be employed to file for Chapter 7. Rather, the bankruptcy trustee will collect and sell your non-exempt assets and pay back some or all of your creditors with the net proceeds from the sale.

In order to be eligible for Chapter 7, you must complete the bankruptcy means test to show that:

your current monthly income is lower than the median income for your household size in your state, or

your disposable income is very low and may not be sufficient enough to repay your unpaid debts.

Since you’re unemployed, proving that you’re unable to pay your debts and bills will be quite easy. An experienced California Chapter 7 bankruptcy attorney can help determine your eligibility and direct you through the process.

Filing for Chapter 13 Bankruptcy While Unemployed

Chapter 13 is available to individuals who earn a reasonable income but are overwhelmed with debts. It involves proposing a structured repayment plan to settle your debts using your future income. However, since you’re unemployed and with no income, it may be difficult to show the court that you can meet up with the required monthly payments under your Chapter 13 repayment plan.

Although, you may be eligible to receive unemployment benefits following the job loss. Nonetheless, any income through unemployment benefits will barely be enough to cover your bills, mortgages, rent, and other living expenses. Hence, it is extremely difficult to qualify for Chapter 13.

You may face various challenges if you lose your job while amidst a Chapter 13 repayment plan. However, if you have income from rental, retirement benefits, Social Security funds, or other revenue-generating ventures, you may still qualify for Chapter 13. A skilled Chapter 13 bankruptcy attorney can evaluate your case or explore your other alternatives to bankruptcy.

Alternatives to Bankruptcy

Here are some other available alternatives to bankruptcy when you’re unemployed:

Debt settlement – This allows you to settle your outstanding debts for less than the actual amount you owe by proposing a huge lump-sum payment to your creditor.

Debt consolidation – This involves combining several debts, liabilities, loans, credit card debts, and other expenses into a single larger debt and taking out a new loan to repay your existing debts.

Debt management plan – A debt management agency can negotiate with each creditor on your behalf to reduce your payments and roll them into one.

Others: Other alternatives to bankruptcy include:

Forbearance

Deferment

Refinancing

A reliable attorney can tell you about the benefits and drawbacks of each bankruptcy alternative and determine the right debt relief option for you.

Turn to Us for Trusted Advocacy

Understanding your unemployed bankruptcy options and determining your eligibility is crucial when facing financial distress after a job loss. At EH Law Group, our attorneys are poised and ready to advise and guide consumers through the challenging procedures involved in filing for bankruptcy when unemployed.

As your legal team, we can examine your financial condition, determine if Chapter 7 or Chapter 13 is best for you, or explore your other debt-relief alternatives to help you achieve the financial relief you deserve.

Contact EH Law Group today to arrange a one-on-one consultation with practiced bankruptcy lawyers. We proudly serve clients across San Mateo, San Francisco, Daly City, Oakland, South San Francisco, and Santa Clara County, California.

Preparing for Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy is among the promising options for individuals, families, and businesses going through financial distress to seek debt relief or a financial fresh start. However, filing for bankruptcy in California usually involves several complicated procedures. For this reason, it is important to understand your options and make adequate preparation before you file to avoid potential denials and other irrevocable errors.

At EH Law Group , we enjoy walking our clients through the entire bankruptcy process. Our seasoned California bankruptcy attorneys can help you determine whether bankruptcy is right for you, determine your eligibility, and advise you on how to prepare. We're proud to serve clients across San Mateo, San Francisco, Daly City, Oakland, South San Francisco, and Santa Clara County, California.

What to Do to Prepare for Filing Bankruptcy

If you have consulted with your attorney and decided to file for bankruptcy, the following are important tips:

Gather Your Financial Documents

Collect and document all financial records, including bank statements, credit reports, and details about ongoing lawsuits and court cases against you. Also, document your proof of income for the past six months and tax returns for the last two years.

File Necessary Tax Returns

It is vital to ensure that you have filed the necessary tax returns prior to your bankruptcy petition. Generally, filing for bankruptcy will not cancel your taxes. The bankruptcy court still expects you to be up to date with filing your tax returns. If not, the court could throw out your case.

Pay Off Necessary Bills

You have to continue paying for your necessary bills, such as your home loan, car payments, electricity bills, and utility. This will help avoid potential issues when you file your bankruptcy petition.

Stop Automatic Payments

Also, it is crucial to terminate all automatic payments, monthly subscriptions, and deductions to your bank account, credit cards, and post-dated checks. This will allow you to have enough funds to cover your essential living expenses and other crucial financial needs.

Document Debt Information Accurately

Also, you'll have to provide accurate documentation of your property, assets, income, debts, and liabilities. If the bankruptcy court notices any inaccurate information, your case might be thrown out.

Take Your Credit Counseling Course

Lastly, ensure that you take the required credit counseling and debtor education courses before and after filing your bankruptcy petition. If not, the court may deny your bankruptcy petition or discharge.

It is vital that you take these steps as soon as possible and prepare for your bankruptcy case accordingly. With this, you can expect a seamless and successful bankruptcy petition or discharge.

What Not to Do Prior to Filing

The following are some things you need to avoid before you file your bankruptcy petition:

Don't Use Protected Assets

Even in bankruptcy, you may still be able to keep your exempt assets, including your primary car, primary home, clothing, and household furnishings. Since the bankruptcy trustee won't sell these assets, you don't have to sell them either.

Don't Pay Dischargeable Debts

In addition, filing for bankruptcy will eliminate most of your general unsecured debts, such as credit card debts, medical bills, and personal loans. Therefore, you don't need to pay your dischargeable debts.

Don't Pay Debts with Retirement Funds

Also, your retirement accounts and assets are protected in bankruptcy. Hence, you don't have to pay your debts using your retirement funds. Moreover, paying debts with your retirement savings can reduce the amount you will have left when you retire.

Don't Move or Transfer Assets and Funds

However, it is a violation of the bankruptcy code to hide, sell, or transfer assets and money to friends, family members, or close relatives for safekeeping prior to filing bankruptcy. Doing this may cause the court to deny your bankruptcy discharge.

Don't Acquire New Debt

Also, avoid new debts between 70 and 90 days prior to filing your bankruptcy case. If the court discharges such debts, the creditor may file an "adversary proceeding," claiming that you acquired the debt without planning to pay it back.

Don't Wait For Creditors to Win a Court Judgment

Lastly, act fast and do not wait until a creditor wins a judgment before you file your bankruptcy petition. If the court issues a money judgment against you, you may find yourself in debt misery.

How Legal Counsel Can Help

According to The American Bankruptcy Institute , in California, there were 30,973 total bankruptcy filings in 2023. These individuals didn't go through bankruptcy alone, and neither should you. With more than 30 years of combined experience, our attorneys at EH Law Group can direct you through the complex procedures of preparing and filing for bankruptcy.

As your legal team, we can review your financial status, analyze your available debt relief options, and determine if bankruptcy is right for you. Also, we will help file your bankruptcy petition, represent you diligently during the court proceedings, create a strategic plan to protect your assets, settle your debts, and improve your finances.

When You're Ready to Talk to an Attorney, Talk to Us

Are you considering filing for bankruptcy? Contact us at EH Law Group today to set up a case evaluation with trusted bankruptcy lawyers . Our dedicated attorneys have the reliable advocacy and assistance you need to make intelligent decisions when preparing for bankruptcy. We're proud to serve clients across San Mateo, San Francisco, Daly City, Oakland, South San Francisco, and Santa Clara County, California.

5 Signs That You Are Living Beyond Your Means

Wed, 04 Dec 2024 19:54:19 GMT

Today, many Americans now have access to credit cards, personal loans, and payday loans. While these tools can be a lifesaver during emergencies, many people end up overspending without thinking about what they can actually afford. Unfortunately, living beyond your means can make you rack up debts and put you into financial instability.

According to a new CNBC Your Money Financial Confidence Survey , nearly 58% of all Americans are currently living paycheck to paycheck. If you're concerned about the disparity between your income and expenses, consulting with a practiced  California bankruptcy attorney  may be beneficial to get experienced financial advice.

At EH Law Group , we're committed to offering reliable advocacy and personalized legal counsel to clients in debt relief and bankruptcy-related matters. Our dedicated legal team can assess your unique financial situation, determine whether you are living beyond your means, and offer you some insightful tips to help control your spending. We're proud to serve clients across San Mateo, Oakland, Daly City, South San Francisco, and Santa Clara County, California.

5 Signs That You’re Living Beyond Your Means

A person may be said to be living beyond their means if they are spending more money than they are actually earning. Essentially, many people are able to live beyond their means by relying on personal loans, prior savings, and credit cards. Here are some signs that you may be living beyond your means:

You Are Not Contributing to Savings or Retirement

One of the obvious signs of living beyond your means is your failure to  save out of your income or contribute to retirement savings. Unfortunately, not having any savings can put you into financial hardship anytime you experience life's financial curveballs. An unexpected  job loss , medical problem, or emergency situation can disrupt every aspect of your life, including your family.

You Are Making Minimum Payments on Debts

Generally, the credit provider expects you to make minimum payments on time in order to maintain good standing. Unknown to you, your interest charges will cause more debts to accumulate in your account. In the long run, you will be trapped in a debt cycle. This will ultimately hurt your credit rating.

Your Credit Score Is Dropping

Furthermore, your credit score will keep dropping if you fail to pay your bills on time or incur a lot of expenses. This shows that you're living above your means and unable to repay your debts. However, lenders will check your credit rating to determine whether you're creditworthy and if you'll repay the loan before approving your credit application. If you have a poor or bad credit score, getting future loans will be extremely difficult or almost impossible.

You Exceed Your Budget Regularly

Having a budget is a good financial habit that allows you to monitor your spending decisions. This is why it is often advisable to make and follow a budget. If you fail to create a budget, you may be unable to track your expenses or even put any money aside as savings. Likewise, if you exceed your budget regularly, it will only be a matter of time before you experience financial hardship.

You've Been Hit With Overdraft Fees

However, when you don't have a sufficient amount in your account to cover your debit card payment, you may be charged an overdraft fee. Repeated charges for overdraft fees may be an indication that you're living beyond your means. This might be a great time to monitor your spending and improve your financial habits.

An experienced attorney can examine your unique financial circumstances to determine if you're living beyond your means and educate you about the next steps to take to improve your situation. Reach out today and get our support .

What You Can Do

If you are concerned that you may be living beyond your means, you should take the following steps where possible:

Look for spending patterns that may exceed your budget.

Set a budget and stick with it.

Determine where you can cut back on your expenses and spending.

Eliminate any additional or needless expenses.

Make certain lifestyle changes. For instance, spend less and save more.

Make saving part of your income or putting into your retirement accounts a priority.

Consolidate any loans, if possible.

Pay down your debts.

Get a side hustle or seek additional sources of income.

Live below your means.

Set financial objectives for future success.

Consider filing for bankruptcy or speaking with an attorney to understand your options.

A knowledgeable attorney can determine the right steps to help take charge of your finances and help you make informed decisions.

Ready to Take Back Control?

When feeling overburdened with debts or concerned that you're living above your means, getting knowledgeable financial advice is crucial to take back control of your finances. With over 30 years of combined experience, we have the diligence and expertise to advise and guide clients in their financial matters. As your legal counsel, we can craft a solid plan to improve your financial situation or explore your other possible options to achieve debt relief, including  filing for bankruptcy .

Contact us at EH Law Group today  to schedule a simple consultation with reliable bankruptcy lawyers. Our dedicated legal team can offer you the brilliant advocacy and personalized legal counsel you need to make intelligent decisions about your finances. We're proud to serve clients across San Mateo, Oakland, Daly City, South San Francisco, and Santa Clara County, California.

Paying Your Bills When You’ve Been Laid Off

Wed, 04 Dec 2024 19:54:19 GMT

It’s an unfortunate reality that employers can lay off workers for all sorts of reasons. And in an uncertain economy, you never know when you might be among them. More than 52,000 California employees were laid off during the first six months of 2023 alone—most of them in the southern part of the state.

Along with feeling lost and unstable in your career, the financial hardships of being laid off can be devastating. Unemployment benefits may help, but many don’t come close to what you were making before. If you were having a difficult time making ends meet before you lost your job, your situation can quickly turn bleak. But you don’t have to navigate these trying times alone.

If you are unemployed and dealing with debt, not knowing what strategies you could use to relieve your financial situation only compounds the stress you’re already feeling. Why not find out what your options are so you can confront it head-on? If you live in San Mateo, California, or in the surrounding areas, our legal team at EH Law Group can help you explore your options for financial security.

I Was Laid Off. How Am I Going to Pay My Bills?

Paying bills without a job will not be an easy task unless you have set aside a significant financial cushion. Unfortunately, few people have one they can dip into in an emergency. Even if they have savings set aside, it probably won’t last very long. If you have money in a retirement fund, such as a 401k, you don’t want to draw from it—you will pay penalties for early withdrawals, owe taxes on anything other than contributions to a Roth IRA, and deplete the value of the long-term earnings you were hoping to use in retirement.

Unemployment Benefits

There are, however, some other steps you can take to help, beginning with unemployment. Most California employers pay into an unemployment insurance fund for the benefit of their employees. If you quit your job without cause, you won’t qualify for benefits, but if you are laid off or fired through no fault of your own, you can apply for unemployment benefits. There are other requirements, including minimum earnings prior to being laid off, being physically able and available to work right away, and being totally or partially unemployed.

You should know, however, that unemployment likely will not pay you what you were earning while on the job. Weekly benefits typically range from $40 to $450. So, although unemployment will help, it likely won’t be enough to cover your lifestyle.

Budgeting Strategies

The first thing you should do—whether you live with a partner or by yourself—is to reorganize your budget .

If you reside with a working partner or spouse, you may be able to lean on their income until you find new employment. But that’s not a crutch you want to take advantage of—while your partner will likely be happy to help support you both, many households rely on dual incomes. And the last thing you want to do is risk creating any tension between you and your loved ones. Regardless, collaborate with your partner on how your finances will be allocated for the foreseeable future.

As someone who lives alone, you will need to firmly set your financial priorities during this time. Your rent or mortgage, groceries, utilities, and other living necessities will be top priorities in your reduced budget. If you don’t have good options for public transportation (which can be important when searching for a new job), you should also prioritize your car payments and fuel costs. The less necessary expenses, such as buying new clothes, electronics, travel, and entertainment, will have to take a backseat until the gateway to more income opens up.

Unemployment is an ideal time to tap into your emergency savings fund . But like unemployment benefits, your savings may not be enough. I you have access to credit cards , you can use them if you simply have no other way to pay for necessities. You will want to avoid taking a cash advance on them since interest rates on those transactions get pretty steep. Our advice would be to use them sparingly. What you spend will begin earning interest right away, and you are adding to debt and monthly payments you will need to continue making.

How Should I Deal With My Debt Payments While I’m Without a Job?

Especially if you have earned a good credit score, you will want to protect it. Paying debts, such as credit cards, personal loans, mortgages, and auto loans—even while unemployed—will be crucial.

Try to make at least the minimum payments on credit cards and other debts and make them on time. Contact your creditors about your situation. They may be willing to help in ways including waiving interest for a period, reducing minimum monthly payments amounts, or even postponing monthly payments by agreeing to pay a lump sum on a designated future date.

Of course, this strategy can be tricky. If you are unable to find new employment with sufficient income to fulfill the obligations of any agreements you negotiate with your creditors, you could end up in a worse financial situation. This is why it might be worth your time to consult with a financial counselor who can assess your situation and discuss the pros and the cons of your available options.

Should I Talk to a Bankruptcy Attorney If I’ve Been Laid Off?

Bankruptcy is a last resort for those who have found themselves in untenable financial situations for whatever reason, including after being laid off. However, you should know that exploring bankruptcy as an option might be a smart choice if you don’t think you can keep up with your debt while you’re unemployed. It may keep a bad situation from deteriorating further.

Our bankruptcy attorneys at EH Law Group are also financial advisors. As your legal counsel, we will review your entire financial situation and give you options that go beyond bankruptcy if they work best for you. In the end, you may not need to file for bankruptcy. Hiring a bankruptcy attorney will help you find out.

Take Charge of Your Finances

Our team at EH Law Group works with clients who have been laid off, lost their jobs, or otherwise found themselves in financial crises. We don’t pass on this important work to others in the firm. We work directly with you, every step of the way, whether you file for bankruptcy relief or not.

If you have been laid off without a substantial emergency fund to fall back on, don’t wait for your financial situation to get worse. Call EH Law Group in San Mateo, California, now to set up a meeting. We are ready to help.

Can I File for Bankruptcy More Than Once?

Wed, 04 Dec 2024 19:54:19 GMT

When overwhelmed with debts, bankruptcy is among the possible options to achieve relief or get a fresh financial start. However, you won't automatically become immune to financial challenges, even after filing for bankruptcy once and receiving your discharge. A medical emergency, job loss, or economic setback can throw you into another financial hardship. When considering filing for bankruptcy again, consulting with a seasoned California bankruptcy attorney  might be beneficial.

At EH Law Group , we're ready and poised to advise and guide clients through the complicated procedures involved in filing for bankruptcy more than once. Our reliable legal team can assess your unique financial situation, explore your available debt relief options, and determine if you can refile for bankruptcy. We're proud to serve clients across San Mateo, South San Francisco, Daly City, Oakland, San Francisco, and Santa Clara County, California.

Can I File More Than Once?

Yes. In the state of California, consumers are absolutely permitted and eligible to file for bankruptcy more than once. Essentially, there are no statutes or rules specifying the maximum number of times an individual or entity can petition for bankruptcy. However, there are certain rules and considerations governing a consumer's eligibility to refile or file for another bankruptcy.

For example, if you want to file for bankruptcy to prevent creditors  from contacting you or collecting outstanding debts, the court may deny your bankruptcy petition. Also, depending on the chapter of bankruptcy you're filing, there is a required waiting period after your last petition before you can file a new one.

What's more, if the bankruptcy court previously denied your discharge due to certain reasons, such as not taking the mandatory financial courses, trying to defraud, or violating a court order, you may be unable to refile. An experienced lawyer can examine all of the facts of your case and advise you about the right chapter of bankruptcy to refile under.

Filing Under the Same Bankruptcy Chapter

A crucial factor to always consider when filing for another bankruptcy is the waiting period. Here's the required waiting period before you can refile under the same chapter:

Chapter 7 to Chapter 7

If you first filed your petition under Chapter 7, you may need to wait for at least eight years before refiling under Chapter 7.

Chapter 13 to Chapter 13

If you first filed your petition under Chapter 13, you only need to wait for up to two years before refiling under Chapter 13.

Filing Under Different Chapters

Here's the required waiting time before you can refile under different chapters:

Chapter 7 to Chapter 13

If you filed your first petition under Chapter 7, you will need to wait for four years before you can refile for another bankruptcy under Chapter 13.

Chapter 13 to Chapter 7

If you filed your first petition under Chapter 13, you may need to wait for up to six years before you can refile another bankruptcy under Chapter 7. However, the waiting period may be reduced to one year if you have completely satisfied your unsecured creditors or no less than 70% of unsecured claims.

Refiling Bankruptcy After a Dismissal

According to the American Bankruptcy Institute , there were 30,973 total business and non-business bankruptcy filings in California in 2022. Refiling for bankruptcy after a prior dismissal can involve several issues, depending on how your original petition was dismissed.

Dismissed Without Prejudice

Furthermore, if the bankruptcy court dismissed your case without prejudice, you can refile bankruptcy at any time or almost immediately. You will need to correct the errors, provide the omitted documentation, and complete the necessary steps that were overlooked in your original filing. Once done, you should be successful on the second attempt.

Dismissed With Prejudice

In contrast, if your original bankruptcy petition was dismissed with prejudice, refiling may be quite difficult. For example, the bankruptcy court may dismiss your petition if you violated court orders, intentionally delayed paying creditors, or failed to maintain good financial standing . If this is your case, you may need to get in touch with an experienced bankruptcy attorney to explore your other available options or determine the next steps to take.

Understand Your Rights during Financial Difficulties

Getting detailed guidance is imperative to understand your options when considering filing for bankruptcy again. At EH Law Group, we have the diligence and knowledge to advise and guide clients in bankruptcy-related matters. Our trusted legal team can assess your eligibility to file for another bankruptcy, determine the right chapter for you, and guide you through the legal procedures involved.

Contact us at EH Law Group today  to schedule a simple consultation with knowledgeable bankruptcy lawyers. Our dedicated attorneys can offer you the trusted advocacy and detailed legal counsel you need to make informed decisions when filing for another bankruptcy. We're proud to serve clients across San Mateo, South San Francisco, Daly City, Oakland, San Francisco, and Santa Clara County, California.

What You Need to Know About Bankruptcy and Divorce

Wed, 04 Dec 2024 19:54:19 GMT

According to a recent report, more than 3.7 million families in California don’t make enough income to meet their basic needs. As a result, many couples in California facing financial distress often turn to bankruptcy to achieve relief. However, if you're trying to end your marriage, it can be extremely stressful to deal with both bankruptcy and divorce together. If you want to know how bankruptcy and divorce affect one another, consulting with a knowledgeable California bankruptcy attorney is extremely beneficial.

With more than 30 years of combined experience, we have the diligence and expertise to advise and guide clients in bankruptcy-related matters involving divorce. Our reliable legal team can assess your conditions, inform you about the benefits of filing jointly or separately, and help you decide which one should come first, between bankruptcy and divorce. We're proud to serve clients across San Mateo, Oakland, San Francisco, Daly City, Santa Clara County, and South San Francisco, California.

Filing Separately

In the state of California, married couples are allowed to file their bankruptcy case separately or at the same time as separate entities. Here are some benefits of filing for bankruptcy individually in California:

It eliminates some of the general unsecured debts of the indebted spouse.

It allows you to protect more assets and property.

The non-filing spouse can retain their good credit score.

The separate property of the non-filing spouse is protected in bankruptcy.

Filing Jointly

Couples who are lawfully married may be eligible to file their bankruptcy case jointly. Here are some benefits of filing joint bankruptcy in California:

The couples only need to file a single bankruptcy petition. Hence, filing for bankruptcy will be more convenient and efficient.

Couples will be able to streamline the whole bankruptcy proceedings.

It eliminates the general unsecured debts of both parties.

Filing jointly can help save attorney fees and court costs.

It helps reduce the number of divorce issues both the couples and the court will need to deal with.

It is important to note that filing a joint bankruptcy in California may harm the credit score of both spouses. Also, if one of the spouses recently filed for bankruptcy, both parties may not be able to file jointly. If it is only the indebted spouse who is seeking debt relief, filing for bankruptcy separately may be the ideal option. A dedicated attorney can analyze your case to help decide whether you should file jointly or separately, as well as whether to file for divorce or bankruptcy first.

Which to File First

When deciding which to file first between bankruptcy and divorce, here are essential elements to consider:

Marital Debts

During property division in a contested divorce, the California court will divide marital assets and debts equally between both parties. However, you may be able to eliminate some of your qualifying marital debts if you file for bankruptcy before your divorce.

Separate or Joint Filing

Also, filing joint bankruptcy allows you to retain more assets, save attorney fees and court costs, reduce paperwork, and streamline the whole bankruptcy process. You can only enjoy all the benefits of filing jointly if you file for bankruptcy prior to divorce.

Your Joint Income

To be eligible for Chapter 7, you must pass the bankruptcy means test – or your income must be less than California's median income for your household size. If your joint income is higher, you may need to file for divorce before bankruptcy.

Asset Division

Fortunately, filing for bankruptcy can help wipe out some qualifying debts, depending on the chapter you're filing under. This will even make the division of marital assets and debts in a divorce easier. Also, you can keep your exempt assets in bankruptcy, including your primary home, vehicle, clothing, household appliances, and furniture pieces.

However, California doesn't allow you to double the amount of exemptions. Therefore, if most of your assets fall under the exempt assets category, filing separately after assets division and divorce may be the right call.

Discharge of Debt

Sometimes, identifying and distributing marital debts can be quite difficult during divorce. If the indebted spouse is unable to repay their debts, creditors may go after the assets of the non-filing spouse.

Unfortunately, you may be unable to get your money back from your estranged partner if you help them settle their debts. You may need to take legal action to recover your money, and this may result in possible hostilities and grudges.

Due to this, you should file your bankruptcy petition jointly with your estranged spouse before getting a divorce. This will help wipe out some of your qualifying marital debts and avoid potential issues.

You Have Options—Learn About Them With an Attorney's Guidance

Dealing with marital dissolution and financial hardship at the same time can be difficult and unsettling. Regardless, you're not alone. At EH Law Group, our attorneys are ready and poised to support and guide clients through the complexities of bankruptcy when divorce is involved. Whether you're filing your bankruptcy jointly or separately, before or after your divorce, our reliable legal team can guide you through the procedures involved and help you navigate intelligent decisions.

Contact us at EH Law Group today to schedule a simple consultation with practiced bankruptcy lawyers. We can offer you the comprehensive and knowledgeable guidance you need to make well-informed decisions in your bankruptcy and divorce matters. We're proud to serve clients across San Mateo, Oakland, San Francisco, Daly City, Santa Clara County, and South San Francisco, California.

Medical Debt and Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Dealing with medical debt can be overwhelming. It's a burden that many Americans face, and it's important to know you're not alone. At EH Law Group, we're here to guide you through your options, including filing for bankruptcy.

We believe that everyone deserves a fresh start, especially when it comes to overwhelming medical debt. Our dedicated team, led by experienced attorneys Eddy Hsu , Grace Ho , and Tina Phan , is here for you every step of the way. If you're ready to take control of your finances, contact us at our office in San Mateo, California, today, and schedule a free consultation.

Will Bankruptcy Discharge Medical Debt?

Yes, declaring bankruptcy can provide relief from overwhelming medical debt. Astonishingly, research studies have revealed that a staggering 66.5% of bankruptcies in America are directly linked to medical expenses , establishing medical debt as the primary cause of financial insolvency in the nation. This phenomenon may be attributed to the exorbitant costs of healthcare and the loss of income due to time away from work.

Does Medical Debt Affect My Credit Score?

Unfortunately, yes. When medical bills go unpaid, they can be reported as delinquent accounts on your credit report. This, in turn, can have a negative impact on your credit score, making it more challenging to secure credit in the future. It's crucial to address unpaid medical bills promptly to avoid potential long-term consequences and maintain a healthy credit profile. One avenue for reclaiming control of your finances is to file for bankruptcy.

Bankruptcy Chapters That Help With Medical Debt

When it comes to bankruptcy, there are two chapters that can assist with medical debt: Chapter 7 and Chapter 13.

Chapter 7

Chapter 7 bankruptcy is a liquidation bankruptcy that can discharge unsecured debts, including medical bills. To qualify, you'll need to pass the means test, which compares your income to the median income in your state. If you meet the requirements, Chapter 7 can provide a fresh start by eliminating medical debt.

Chapter 13

On the other hand, Chapter 13 bankruptcy is a reorganization bankruptcy. It allows you to create a repayment plan to catch up on past-due debts, including medical bills. This chapter is suitable if you have a regular income and can afford to make monthly payments. Chapter 13 helps you manage your medical debt while keeping your assets.

Remember, filing for bankruptcy doesn't mean failure. It's simply a tool for a better financial future. So, if you're facing overwhelming medical debt, don't hesitate to reach out to us. We're here to help.

Pros & Cons of Filing for Medical Debt Bankruptcy

Like most major decisions in life, filing for medical debt bankruptcy comes with its fair share of benefits and disadvantages.

Pros:

Discharge of medical debt : Bankruptcy can reduce or even eliminate your medical debt.

Protection from creditors : Once you file for bankruptcy, an automatic stay prevents creditors from taking collection actions against you.

Opportunity for a fresh start : Bankruptcy can give you a chance to rebuild your financial life anew.

Cons:

Impact on credit score : Filing for bankruptcy will negatively impact your credit score and can linger on your credit report for up to 10 years.

Potential loss of assets : Depending on the bankruptcy chapter you file, you may have to liquidate certain assets to repay creditors.

Difficulty obtaining credit : After filing, it may be challenging to obtain credit, and if you do, it might come with higher interest rates.

Alternatives to Bankruptcy for Medical Debt

While bankruptcy can provide relief from medical debt, it's not always the best option for everyone. Some alternatives to filing for bankruptcy include:

Negotiating with healthcare providers : You may be able to negotiate a lower bill or payment plan directly with your healthcare provider.

Applying for financial assistance : Many hospitals and medical facilities offer financial assistance programs for low-income individuals.

Seeking credit counseling : A credit counselor can help you create a budget and negotiate with creditors on your behalf.

Settling the debt : You may be able to settle your medical debt for less than the full amount owed by negotiating a lump-sum payment.

At EH Law Group, we want to help you find your ideal path forward. If you're struggling with medical debt, our team of experienced attorneys can guide you in exploring all your options and making an informed decision. Contact us today to schedule a free consultation .

What to Ask Yourself Before Filling for Medical Bankruptcy

Before you decide to file for medical bankruptcy, consider these questions:

Is my medical debt overwhelming and unmanageable?

Have I explored other options, like negotiating with healthcare providers or seeking financial assistance programs?

Do I qualify for Chapter 7 or Chapter 13 bankruptcy?

Am I ready to accept the potential consequences of filing for bankruptcy, such as the impact on my credit score?

Have I consulted with a bankruptcy attorney to understand the process and explore alternatives?

It's important to remember that filing for bankruptcy is a significant step with long-lasting implications, thus careful evaluation is essential. Know that our bankruptcy attorneys are here to help you move forward with your decision, providing guidance and support every step of the way.

Legal Guidance When You Need It Most

If you're contemplating filing for medical debt bankruptcy, it's crucial to seek legal guidance. At EH Law Group , we have over 30 years of combined experience. We'll assess your situation, explain your options, and guide you through the bankruptcy process. We're here to protect your rights and help you make informed decisions about your financial future.

Our law firm is based in San Mateo, California, and serves clients throughout the surrounding area including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Will I Lose My Retirement Accounts if I File for Bankruptcy?

Wed, 04 Dec 2024 19:54:19 GMT

The thought of filing for bankruptcy can be unsettling, to say the least. It's a decision that carries significant weight, and it's natural to worry about the potential impact on your financial future. Most importantly, you might be wondering what will happen to your retirement accounts. After all, these are funds you've worked tirelessly to accumulate over the years, intending to secure a comfortable post-retirement life.

At EH Law Group, we're here to ease your concerns. Our empathetic attorneys are well-versed in the nuances of bankruptcy law, particularly as it pertains to your retirement accounts. We have over 30 years of combined experience, and we're committed to providing you with the detailed attention you deserve.

As a local practice serving San Mateo, California , and the surrounding areas, we're deeply familiar with the unique financial challenges our community faces. We don't just work here; we live here too. And we're committed to using our knowledge to help our neighbors navigate their unique situations.

In this blog post, we'll delve into some key points about bankruptcy and retirement accounts. We'll discuss which retirement accounts are typically protected in bankruptcy, situations in which they might not be, and how retirement benefits being paid as income can affect things. We hope this information will provide some clarity and reassurance. Remember, we're here for you every step of the way.

Retirement Accounts That Are Protected in Bankruptcy

The average age of individuals filing for bankruptcy is 40.9 , a period in their lives when they usually have already accumulated a significant retirement fund. So it makes sense that one of the most common concerns we hear from our clients considering bankruptcy is whether they'll lose their hard-earned savings.

Here's some reassuring news: in both Chapter 7 and Chapter 13 bankruptcies, most retirement accounts—like your 401(k), 403(b), profit-sharing and money purchase plans, and defined-benefit plans—are generally safe. These are considered exempt assets and are not accessible to creditors.

You definitely should not dip into your retirement savings to pay your debts before filing for bankruptcy. Doing so could result in the loss of both that money and other assets. Generally, when you file for bankruptcy and appropriately identify your savings as exempt, they will be protected from debt collectors.

The types of retirement accounts typically shielded from creditors include qualified employer-sponsored plans, such as your 401(k) or a pension plan. Also, Individual Retirement Accounts (IRAs) are generally protected in bankruptcy, up to a certain limit. So, breathe a sigh of relief knowing that the nest egg you've been diligently building over the years will likely be safe.

Are There Situations in Which Retirement Accounts May Not Be Protected?

While it's comforting to know that many retirement accounts are protected in bankruptcy, it's important to understand that there can be exceptions. In some cases, retirement accounts may not be fully shielded from creditors.

One instance is when your IRA exceeds the set protection limit. As of the date of this writing, IRAs (both traditional and Roth) are protected in bankruptcy up to a total value of about $1,512,350 per person. Any amount exceeding this limit is not shielded and can be accessed by creditors. This cap is adjusted every three years for inflation.

Also, retirement funds that have been withdrawn prematurely or that are being paid out as income are generally not protected in bankruptcy. This means that if you've taken a lump-sum distribution from your retirement account, or if you're receiving regular payments from the account, these funds could potentially be accessible to creditors. It's worth noting that this doesn't apply to all types of retirement income, so it's important to consult with an experienced bankruptcy attorney to understand exactly how your specific situation might be impacted.

Furthermore, if you've engaged in fraudulent activity or improper conduct regarding your retirement savings, such as intentionally transferring funds into your retirement account to shield them from creditors, those funds could be seized. It's crucial to approach bankruptcy proceedings with full transparency and under professional guidance.

Finally, not all types of retirement accounts are protected. For instance, funds stored in simple savings accounts, investment accounts, and certain types of annuities may not enjoy the same level of protection as qualified employer plans or IRAs. It's crucial to be aware of these distinctions when considering bankruptcy and planning for your financial future. Always seek professional advice to ensure you're making informed decisions about your retirement savings and bankruptcy.

Retirement Benefits Being Paid as Income

Another aspect we'd like to highlight is about retirement benefits being paid as income. While the retirement account itself may be exempt, the income you receive from that account might not be entirely protected.

For example, if you're receiving regular distributions from your retirement account as income, the bankruptcy court may require a portion of that income to be used to repay creditors. The specific amount will depend on various factors, including your income, expenses, and the type of bankruptcy filing.

Consult an Experienced Bankruptcy Attorney

Navigating the bankruptcy process can be daunting, but you don't have to face it alone. At EH Law Group, we're here to help. Our attorneys, Eddy Hsu , Grace Ho , and Tina Phan , are dedicated to giving you the detailed attention you deserve. Located in San Mateo, California, we serve clients throughout the surrounding areas, including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco. Don't hesitate to reach out to us with any questions. We respond quickly, and your financial well-being is our priority.

Will Bankruptcy Affect My Immigration Status or That of a Relative

Wed, 04 Dec 2024 19:54:19 GMT

At EH Law Group, we understand that your financial well-being is a priority in your life. We also know that filing for bankruptcy is not a decision you take lightly, and the process can often feel overwhelming.

One of the concerns that often arises when considering bankruptcy is how it might impact your immigration status. Before we dive into the details, it's important to note that bankruptcy is available to anyone residing in the United States, regardless of their citizenship status .

No matter where you’re at in your debt relief journey, we’re here to guide you every step of the way. Our team of bankruptcy attorneys offers over 30 years of combined experience in helping citizens and immigrants navigate the ins and outs of bankruptcy laws. We're based in San Mateo, California, and are proud to serve clients throughout the surrounding areas. Contact us today to schedule a free consultation and start exploring your options for financial freedom.

Do I Have to Be a U.S. Citizen to File for Bankruptcy?

The simple answer is no, you do not have to be a U.S. citizen to file for bankruptcy. U.S. Bankruptcy laws allow anyone residing in the United States to file for bankruptcy, regardless of their citizenship status. Rest assured, filing for bankruptcy won't affect your ability to stay in the U.S., apply for citizenship, or obtain a visa or green card. The U.S. Citizenship and Immigration Services (USCIS) is more concerned with you having good moral character than indebtedness when considering applications.

Whether you're a U.S. citizen, permanent resident, temporary resident, or undocumented immigrant, you have the right to file for bankruptcy. This means that you can seek financial relief through bankruptcy without worrying about your citizenship or immigration status being affected.

Understanding “Good Moral Character”

When seeking U.S. citizenship, the USCIS carefully evaluates your moral character, taking into account various factors such as criminal history, honesty, and financial responsibility. While bankruptcy may show that you have accumulated debt, it does not necessarily reflect poorly on your moral character. In fact, filing for bankruptcy can actually demonstrate your willingness to take responsibility for your debts and work towards a better financial future.

More examples of good moral character could be:

volunteering in your community,

paying taxes, or

being actively involved in your children's education.

Filing for bankruptcy does not automatically disqualify you from having good moral character, and it should not prevent you from seeking citizenship or obtaining a visa or green card.

Ultimately, what USCIS officers prioritize is your tax payment history, rather than your financial status. It is important to note that filing for bankruptcy does not automatically classify individuals as a public charge under federal immigration law. This distinction is significant because the USCIS holds the authority to reject visa applications from individuals who may potentially rely on public benefits such as food stamps.

Filing for Bankruptcy as an Immigrant

The Administrative Office of the U.S. Courts has reported that bankruptcy filings reached a total of 418,724 in the fiscal year ending in June 2023 , marking a 10% increase from the previous year's 380,634 cases. So if you're seeking a fresh financial start, please understand that you're not alone.

Whether you're an undocumented immigrant or a U.S. citizen who's thinking about filing for bankruptcy, it's crucial to understand the two main types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 , also known as liquidation bankruptcy, allows you to wipe out most of your debts, but you may have to sell some of your assets to pay back creditors. Chapter 13 , on the other hand, is a reorganization bankruptcy that enables you to keep your assets but requires you to follow a three to five-year repayment plan. The type of bankruptcy you choose largely depends on your financial situation and long-term goals.

Additionally, understand that bankruptcy will impact your credit score, and this can affect your ability to secure loans or credit cards in the future. However, with responsible financial habits, it's possible to rebuild your credit over time. Also, you should know that not all debts can be discharged in bankruptcy. Financial matters like as student loans, child support, and certain tax obligations typically cannot be eliminated through bankruptcy.

Possible Identification Numbers to Use

According to federal law, filing for bankruptcy does not require you to have U.S. citizenship. However, it is necessary to have either a Social Security number (SSN) or an Individual Tax Identification Number (ITIN) to proceed with the filing.

While SSNs are typically issued to U.S. citizens, permanent residents, and temporary residents, having an SSN is not mandatory for bankruptcy. An ITIN, which is commonly issued to non-citizens, can fulfill the minimum requirement for personal identification. Rest assured, many immigrants possess an ITIN, and it serves as a valid option for pursuing bankruptcy.

When filing for bankruptcy, there are several identification numbers that you might need to provide for tax purposes. These include:

SSN (Social Security Number) - This is used for citizens, natural-born, foreign-born, and naturalized individuals.

ITIN (Individual Tax Identification Number) - A nine-digit number used to identify individuals by the IRS for tax purposes. It is assigned to individuals who need a taxpayer identification number but are not eligible for SSNs.

EIN (Employer Identification Number) - A nine-digit number used by the IRS to identify business organizations like corporations or LLCs.

TIN (Tax Identification Number) - Used by the IRS for businesses. The only significant difference between an EIN and a TIN is that the IRS only assigns TINs to companies with employees.

So, if you're not a U.S. citizen, don't let the fear of bankruptcy affecting your immigration status hold you back from seeking financial relief. Remember, bankruptcy laws can be complex, and the decisions you make can have lasting impacts. It’s recommended to consult with a bankruptcy attorney to understand all your options and their respective consequences.

Debt Relief Alternatives

Before filing for bankruptcy, it's important to consider other debt-relief alternatives that may be more suitable for your situation. Some alternatives to bankruptcy include:

Debt Settlement - A negotiation process that allows you to pay off your debt for less than the full amount. This option can lower your overall debt and, consequently, improve your credit score.

Credit Counseling - A financial management program where a counselor works with you to create a debt repayment plan and offers guidance on managing your finances.

Debt Consolidation - A process that combines all your debts into one loan with a lower interest rate. This option can make it easier to manage your debts and may even save you money in the long run.

Negotiating with Creditors - In some cases, creditors may be willing to work out a repayment plan with you directly. It never hurts to ask and see if there are any potential options available.

Each of these alternatives has its pros and cons, and it's important to thoroughly explore all your options before making a decision.

We're Here to Answer Your Questions

At EH Law Group , we're not just experienced, we're compassionate and responsive. We don't pass on any work — everything is done by our attorneys who are dedicated to giving you detailed attention. Contact us today if you have any further questions about the inner workings of bankruptcy and immigration, or if you'd like to discuss your situation in further detail. Our law firm is based in San Mateo, California, and we're proud to serve clients throughout San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Will Bankruptcy Discharge My Tax Debt?

Wed, 04 Dec 2024 19:54:19 GMT

We often hear from individuals facing financial distress and overwhelming debts, wondering if bankruptcy can discharge their tax debt. It's a common concern and one we're going to explore today. Read on to understand the impact of bankruptcy on tax debt, providing detailed information on the types of taxes that are dischargeable in different types of bankruptcy cases. You'll gain a clearer understanding of your options and how we at EH Law Group can help.

If you're seeking legal assistance on any debt relief matters, don't hesitate to contact our law firm in San Mateo, California. We'll be happy to sit down and discuss your situation and options during a free initial consultation.

Are Taxes Treated as Dischargeable Debt in Bankruptcies?

Bankruptcy can provide much-needed relief from various types of debt, but it's important to note that taxes are generally not considered dischargeable debt. Tax debt is typically categorized as "non-dischargeable priority debt," which means it cannot be eliminated through bankruptcy. Additionally, the term "priority" implies that tax debt is often given higher priority for repayment.

However, it's worth exploring the possibility of discharging some of your tax debt through bankruptcy. Since each case is unique, it's advisable to seek guidance from a knowledgeable bankruptcy attorney who can assess which tax debts may qualify as "dischargeable" in your specific situation.

We want you to know that there are options available to address your tax debt, and consulting with a skilled attorney will help you navigate the complexities and determine the best course of action in your bankruptcy case.

What Taxes Are Nondischargeable?

Unfortunately, not all tax debts can be discharged through bankruptcy. Taxes other than income taxes, such as payroll taxes or fraud penalties, aren't eligible for discharge through bankruptcy. Additionally, if the IRS has already put a lien on your property, the lien will remain even after bankruptcy. You'll need to pay off the tax lien before selling or transferring the property.

Bankruptcy can be a powerful tool for dealing with tax debt, but it's not a one-size-fits-all solution. We encourage you to seek our legal advice to understand all your options and make an informed decision. Our attorneys at EH Law Group are here to help you regain your financial stability and peace of mind.

Taxes in Chapter 7 Bankruptcy

Let's begin with Chapter 7 bankruptcy, also known as liquidation bankruptcy. This type of bankruptcy is the most common, accounting for 239,125 filings out of the 418,724 bankruptcy cases seen between June 2022 and June 2023.

Chapter 7 bankruptcy allows for the discharge of certain types of debts, including some tax debts. However, it's crucial to understand that not all tax debts can be wiped clean under Chapter 7.

In Chapter 7 bankruptcy, income taxes can be discharged if they meet a few specific conditions. These conditions include:

the taxes being income taxes;

you have not committed fraud or willful evasion;

your debt being at least three years old;

you filing a tax return; and

the IRS assessing the income tax debt at least 240 days before filing for bankruptcy.

Taxes in Chapter 13 Bankruptcy

Chapter 13 bankruptcy has strict requirements for discharging tax debt. If some or all of your tax debts are considered “non-dischargeable,” and you file for Chapter 13 bankruptcy, you will generally have to pay them in full over the course of your repayment plan.

In most cases, the following types of tax debt are considered non-dischargeable and priority, which means a debtor will have to pay them back after filing for Chapter 13 bankruptcy:

income tax debts that do not meet “dischargeable” and “non-priority” requirements;

property taxes incurred within 12 months before the bankruptcy filing date;

payroll taxes and other taxes you had an obligation to withhold/collect;

some excise taxes; and

any penalties that can be treated as “non-dischargeable” tax debts.

Although the tax debts mentioned earlier may not be completely eliminated, filing for Chapter 13 bankruptcy offers an opportunity to gradually pay them off over a period of three to five years. It's important to note that, similar to Chapter 7 bankruptcy, you may be able to discharge income tax debt when filing for bankruptcy under Chapter 13 if it meets the requirements mentioned in the section above.

Taxes in Chapter 11 Bankruptcy

Unlike Chapter 7 bankruptcy, Chapter 11 does not offer as many options for discharging tax debt, whether in part or in full. However, Chapter 11 bankruptcy does provide a similar opportunity to eliminate debts through a repayment plan, much like Chapter 13. The key distinction is that Chapter 11 is designed for businesses and individuals who don't meet the eligibility criteria for Chapter 13.

The dischargeability of tax debt and the extent to which it can be eliminated in Chapter 11 bankruptcy depend on various factors. That's why it's important to collaborate with a knowledgeable bankruptcy attorney who can guide you through the process and explore your options for resolving tax debt.

Rest assured, we understand the challenges you may be facing, and we're here to provide you with the information and support you need to make informed decisions about addressing your tax debt.

How a Bankruptcy Attorney Can Help

Sifting through the complexities of bankruptcy and understanding the dischargeability of tax debts can be challenging. That's where we come in. At EH Law Group, our attorneys don't just pass your work onto others; we handle everything ourselves. We're responsive and experienced, and we pay attention to every detail.

We can assess your financial situation, determine the dischargeability of your tax debts, guide you through the bankruptcy process, and help create a repayment plan that addresses your specific needs. We have over 30 years of combined experience and are dedicated to providing detailed guidance for residents of San Mateo and surrounding areas, including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Why an Attorney Is Important When Filing for Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

We understand that the decision to file for bankruptcy is often a difficult one, fraught with stress and uncertainty. It's not just about the money; it's about the impact on your life, your family, and your future. We're here to reassure you that there's a way forward. Our team is dedicated to helping you regain control of your financial situation and move towards a brighter future.

At EH Law Group , we empathize with the challenges you're facing and are here to provide you with the guidance and support you need. Located in San Mateo, California, EH Law Group serves clients throughout the Bay Area, including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco. Our responsive and skilled attorneys have over 30 years of combined experience, and with EH Law Group, you don't have to worry about your case being handed off to inexperienced individuals. We're committed to giving every client detailed attention and guiding them through each step of the bankruptcy process.

Brief Overview of the Bankruptcy Process

The bankruptcy process begins with gathering all necessary financial information, such as your income, expenses, assets, and debts. This data helps determine your eligibility for bankruptcy and shapes the creation of a repayment plan if required. Two common types of bankruptcy are Chapter 7 , which discharges unsecured debts like credit cards and medical bills, and Chapter 13 , which allows you to catch up on secured debts. Navigating these options can be complex, but with expert legal guidance, you can make informed decisions that best suit your situation.

Reasons You Need an Attorney Through the Bankruptcy Process

Navigating the bankruptcy process alone can be overwhelming and fraught with potential mistakes. An attorney's assistance in this journey is not a mere luxury but a necessity. Here's why it's crucial to have a seasoned attorney by your side through the bankruptcy process.

Experience and Guidance

Bankruptcy laws are complex, and understanding them requires specialized knowledge. Experienced attorneys are familiar with the complexities and nuances of bankruptcy law, and this knowledge proves invaluable in ensuring that your filing is accurate, complete, and compliant with all legal requirements.

They are adept at handling unexpected issues that may arise during the process, which someone unfamiliar with bankruptcy law might find challenging to resolve. An experienced bankruptcy attorney can guide you through the intricacies of Chapter 7 or Chapter 13 bankruptcy filing, helping you understand the implications of each and assisting you in making the choice that best suits your unique financial situation. They can also help protect your assets and negotiate with creditors, leveraging their expertise to secure the most favorable outcome for you. In essence, an attorney's experience provides the guidance and assurance you need to navigate the bankruptcy process effectively, which can significantly alleviate the stress of this difficult time.

Personalized Attention and Advocacy

ersonalized attention and advocacy are crucial during the bankruptcy process due to the unique financial situations faced by each individual. Unlike a one-size-fits-all approach, personalized attention ensures that every aspect of your financial situation is taken into consideration. This includes your income, expenses, assets, debts, and your personal and financial goals. It allows your attorney to develop a strategic, customized plan that will effectively address your specific needs.

On the other hand, advocacy plays a significant role in representing your best interests during the proceedings. Your attorney acts as your staunch advocate, fighting for your rights, negotiating with creditors, and making sure your voice is heard. This can be especially beneficial when dealing with aggressive creditors or navigating complex legal issues. Therefore, personalized attention and advocacy not only give you the best chance at a successful bankruptcy filing but also provide peace of mind during this challenging process.

Avoiding Costly Mistakes

The path to bankruptcy is fraught with potential errors that could cost you dearly. Here are some common mistakes and why they can be detrimental:

Failing to Disclose All Assets and Debts : Full disclosure is mandatory in bankruptcy filings. Concealing assets or debts may lead to case dismissal, fines, or even criminal charges. It's crucial to be transparent to ensure a fair and legal proceeding.

Inaccurate Valuation of Assets : Accurately valuing your assets is critical. Overvaluation might lead to unnecessary repayments, while undervaluation could result in loss of property. Professional guidance can ensure correct assessments.

Errors in The Repayment Plan : Mistakes in the repayment plan in a Chapter 13 bankruptcy can lead to rejection by the court or creditors. An attorney can help create a plan that meets legal requirements and is within your means to comply with.

Neglecting to Attend Mandatory Meetings or Meet Deadlines : Failing to attend the '341 meeting' (creditors' meeting) or missing filing deadlines could lead to case dismissal. Attorneys help you stay on top of these important obligations.

Incorrectly Exempting Property : Bankruptcy law allows certain property exemptions, but errors in claiming these can result in the loss of the exempted property. Expert advice can prevent such losses.

Avoiding these errors can make your bankruptcy process smoother and more successful. With the help of seasoned attorneys like those at EH Law Group, you can navigate these potential pitfalls effectively, ensuring your financial recovery journey is as painless as possible.

Dealing With Tax Debt and Protecting Retirement Accounts

Dealing with tax debt and protecting retirement accounts when declaring bankruptcy can be a convoluted process filled with potential pitfalls. An attorney can help in numerous ways:

Addressing Tax Debt: Bankruptcy laws concerning tax debts are complex. Whether your tax debt is dischargeable or not depends on multiple factors such as the type of tax owed, how old the debt is, and whether a tax return was filed. An experienced attorney can analyze your tax obligations, help determine which debts can be discharged, and guide you in creating a plan to manage those that cannot.

Protecting Retirement Accounts: Retirement accounts are generally protected in bankruptcy under federal law. However, not all retirement accounts qualify for this protection, and there can be exceptions. An attorney can help you understand which of your retirement assets are exempt from bankruptcy proceedings. They can guide you on how to declare these assets correctly, ensuring you don't unintentionally lose this crucial protection.

In essence, an attorney can provide the necessary legal expertise to navigate these often misunderstood areas of bankruptcy law. They can make sure you are making informed decisions, maximizing your benefits, and protecting your long-term financial health.

Take Control of Your Financial Future With EH Law Group

Our attorneys will assess your financial situation, evaluate your eligibility, and determine the best course of action, thereby increasing the likelihood of a successful filing. Facing financial distress can be daunting, but you don't have to face it alone. EH Law Group is here to provide you with expert legal representation and support during the bankruptcy process. Let us guide you through the process and provide you with the personalized attention and advocacy you deserve.

Hiding Assets in Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy is designed to give individuals and businesses a fresh start by discharging their debts. However, some people might be tempted to hide assets to protect them from being used to repay their creditors. This is not only unethical but also illegal.

We understand that your assets are important to you. They represent your hard work, your accomplishments, and your security. It's natural to want to protect them. But hiding assets during bankruptcy is risky, and the consequences can be severe.

As a team of empathetic attorneys at EH Law Group , we understand the financial difficulties you may be going through. Filing for bankruptcy is never an easy decision, and the process can be complex and stressful, but know that we are here to guide you every step of the way and help you navigate the complexities of bankruptcy, including the issue of asset concealment.

What Does Hiding Assets in Bankruptcy Mean?

When we talk about hiding assets in bankruptcy, we're referring to the act of intentionally concealing or failing to disclose certain assets during the bankruptcy process. This might involve transferring assets to family members or friends, creating fake debts, or undervaluing your assets. The intention behind these actions is often to retain ownership or control over valuable property.

The motivation to hide assets often comes from a place of fear and desperation. However, it's vital to understand that these actions are illegal and can have serious repercussions. As experienced bankruptcy attorneys, we strongly advise against this course of action.

Common Assets People Try to Hide

The most commonly concealed assets during bankruptcy include cash, real estate, personal property, and financial investments. Cash may be hidden in homes or with trusted individuals. Real estate assets, like secondary homes or rental properties, might be transferred into someone else's name, while personal property such as jewelry, artwork, or valuable collections may be undervalued or not reported at all. Financial investments such as stocks, bonds, or retirement accounts can also be concealed by not disclosing them or by quickly liquidating them.

The reasons behind hiding assets are multifaceted. Often, individuals fear losing their possessions which they regard as significant marks of their lifelong achievements. They may also be anxious about their future financial security, causing them to want to protect certain assets from being used to pay off their debts. Some do it out of a misguided belief that they can outsmart the system, while others might be simply following ill-advised counsel. However, it's important to remember that the risks associated with hiding assets far outweigh any perceived benefits.

How Can You Get Caught Hiding Assets?

It's not easy to hide assets during bankruptcy. The bankruptcy system is designed to be rigorous and thorough, and various mechanisms are in place to catch people who try to conceal their assets.

When you file for bankruptcy, you're required to submit detailed, scrupulous financial documents that depict your financial standing. These include bank statements, tax returns, and records of any major financial transactions. Additionally, you'll be questioned under oath about your financial affairs by a bankruptcy trustee.

Bankruptcy trustees are skilled investigators who are experienced in uncovering asset concealment. They have at their disposal an array of tools and resources to trace hidden assets. For instance, they can scrutinize your financial records, compare your reported income and expenses to your lifestyle, or even hire forensic accountants if needed.

Also, remember that creditors have a vested interest in your bankruptcy. They're often familiar with your financial situation and will be on the lookout for any discrepancies in your reported assets. If they suspect any foul play, they can raise objections and trigger investigations.

Lastly, the act of bankruptcy itself is a public process. If any acquaintances, friends, or family members are aware of your undisclosed assets, they can report their knowledge to the bankruptcy court.

Trying to conceal your assets during bankruptcy is a risky move that can land you in hot water. Transparency and honesty are your best allies in the bankruptcy process.

Consequences of Hiding Assets in Bankruptcy

If your actions to conceal assets in bankruptcy are discovered, the results can be catastrophic. Following are the potential consequences you might have to face:

Case Dismissal : Your bankruptcy case may be dismissed outright, meaning the protection you sought from creditors through bankruptcy could evaporate. All the efforts you made will be nullified, and you'll be back to square one, still bearing the burden of your debts.

Criminal Charges for Bankruptcy Fraud : Hiding assets in bankruptcy is viewed as a serious crime, and you may face criminal charges for bankruptcy fraud. This involves a legal proceeding where you'll be prosecuted, bringing additional stress and complications to your life.

Financial Penalties : If convicted of bankruptcy fraud, you could be subject to substantial monetary penalties. These fines can add to your financial woes and further complicate your path to financial recovery.

Imprisonment : In severe cases, bankruptcy fraud can result in imprisonment. Losing your freedom is a devastating consequence that can significantly impact your life and that of your family.

Debt Reinstatement : The debts that were previously discharged during the bankruptcy process can be reinstated. This means that you are back to being legally obliged to pay off all of your debts.

Loss of Financial Fresh Start Opportunity : The ultimate goal of filing for bankruptcy is to provide a fresh start by relieving the burden of insurmountable debts. If you're caught hiding assets, you may lose this opportunity, indefinitely extending your financial distress.

Facing accusations of hiding assets in bankruptcy is a serious matter. However, having an experienced bankruptcy attorney to guide you through the legal maze can be invaluable. We at EH Law Group are committed to helping you navigate these difficult circumstances and advocating for your rights.

Are There Bankruptcy Options That Will Protect Certain Assets?

Yes, there are bankruptcy options that can help protect certain assets:

Chapter 7 Bankruptcy : Also known as liquidation bankruptcy, Chapter 7 allows you to discharge most of your unsecured debts while the bankruptcy trustee sells your nonexempt assets to repay your creditors. However, exemption laws allow you to keep certain assets. These exemptions can cover a certain amount of equity in your home (homestead exemption), your car, personal belongings, retirement savings, and potentially more. The specific exemptions available vary by state.

Chapter 13 Bankruptcy : Unlike Chapter 7, Chapter 13 bankruptcy doesn't involve selling your assets . Instead, you repay your debts over a 3 to 5-year period through a repayment plan. This option is often preferred by those who have significant equity in their home or other assets that they want to keep. Under this plan, as long as you stick to the terms of the repayment plan, you're able to keep all of your assets.

It's important to remember that the protection of assets in bankruptcy is a complex issue, and the best course of action depends on your specific circumstances. A seasoned bankruptcy attorney can provide you with advice tailored to your situation.

Don't Navigate Bankruptcy Alone: Let EH Law Group Guide You

At EH Law Group, we're committed to providing you with the highest level of legal representation and support throughout the bankruptcy process. Our experienced attorneys, Eddy Hsu, Grace Ho , and Tina Phan , have a deep understanding of the complexities involved in bankruptcy and can guide you toward the best solutions for your unique circumstances.

If you're facing financial difficulties and have concerns about hiding assets in bankruptcy, we encourage you to reach out to us today. Our compassionate team is here to listen, provide personalized advice, and help you make informed decisions about your financial future. Don't face this challenging situation alone – let us be your trusted legal partner.

Contact us now to schedule a consultation and take the first step towards a brighter financial future. Remember, we're here to guide you every step of the way.

Documents You Will Need to Submit to File for Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

Bankruptcy: it's a word that carries a weight of worry and stress for many. But as we venture into this topic, let's remember one thing—bankruptcy isn't a dead end. It's a legal tool designed to give individuals a fresh start when they're overwhelmed by debt. In this article, we'll explore the crucial documents you'll need to submit when filing for bankruptcy. We'll unpack each one in detail, providing you with a thorough understanding of what you need and why it's important.

We understand how daunting bankruptcy proceedings can be. With extensive experience handling bankruptcy cases, our team at EH Law Group is well-versed in debt settlement strategies, dealing with creditor harassment, and navigating foreclosure issues . Our goal? To empower you with knowledge, provide steadfast support, and help you stride confidently towards a better financial future.

Things You'll Need to File for Bankruptcy

If you're considering filing for bankruptcy, it's natural to feel overwhelmed. But don't worry, we're here to guide you through it. Let's delve into the types of documents you'll need to gather and submit when you decide to file for bankruptcy:

Basic Information

The first set of documents you'll need to pull together is your basic information. It sounds simple, but it's critical to get this step right. The court needs to know who you are, where you live, and how to get in touch with you. Your full name, current address, Social Security number, and contact details must be accurate and up-to-date. This information helps the court identify you as the petitioner and enables them to communicate with you throughout the bankruptcy process.

Financial Records

Next, as you proceed, one crucial step is to gather your financial records meticulously. This task may require some additional effort, but it is equally important. The court relies on these records to gain a comprehensive understanding of your financial situation, enabling them to assess your eligibility for bankruptcy relief accurately. It is vital to provide documents such as bank statements, pay stubs, tax returns, and any other relevant documentation of income sources.

These records play a pivotal role in establishing your income, expenses, assets, and liabilities— all of which are crucial factors in any bankruptcy proceedings. By paying meticulous attention to detail in this step, you can ensure a thorough and accurate representation of your financial situation to the court.

Legal Records

In addition to your financial records, it is important to submit all relevant legal documents related to your bankruptcy case. This includes any records related to divorce proceedings, child support orders, court judgments, or pending lawsuits. These documents are crucial as they provide the court with a comprehensive understanding of your legal obligations and help assess any potential claims against you. By including these documents, you ensure that the court has a thorough understanding of your situation and can make informed decisions regarding your bankruptcy case.

Proof of Credit Counseling

Before you can file for bankruptcy, you're required to undergo credit counseling from an approved agency. You'll need to provide proof that you've completed this counseling, typically in the form of a certificate or a statement from the counseling agency. This requirement is designed to ensure that you've explored all possible alternatives and understand the implications of your decision to file for bankruptcy.

How an Attorney Can Assist

Remember, bankruptcy is a legal process that offers individuals a fresh start. By providing the required documents, you're taking the first step toward financial relief, but you don't have to walk that road alone.

Navigating the bankruptcy process can be complex and overwhelming, which is why it's highly recommended to seek the assistance of an experienced bankruptcy attorney . Here at EH Law Group, we're committed to guiding you through the entire process. We'll help you gather the necessary documents and ensure that your bankruptcy petition is accurate and complete. Our team can provide valuable advice on the best course of action based on your specific financial situation. We understand that each case is unique, and we're here to provide personalized guidance tailored to your needs .

Seek Legal Counsel Today

Filing for bankruptcy requires submitting various documents that provide a comprehensive overview of your financial situation. These include basic information, financial records, legal records, and proof of credit counseling. Working with a knowledgeable bankruptcy attorney, like those at EH Law Group , can greatly simplify the process and increase your chances of a successful outcome. We're proud to serve clients across San Mateo, Oakland, San Francisco, Daly City, Santa Clara County, and South San Francisco, California.

Offer in Compromise Eligibility

Wed, 04 Dec 2024 19:54:19 GMT

Life can take unexpected twists and turns, leading many of us down a road of financial uncertainty. It's during these challenging times that the concept of an Offer in Compromise (OIC) becomes a beacon of hope. An OIC is a special agreement between a taxpayer and the IRS, allowing the taxpayer to settle their tax debts for less than the full amount they owe. But while it may sound simple, navigating this process can be anything but. That's where the knowledge of a seasoned law group becomes invaluable.

At EH Law Group, we're not just attorneys—we're your allies. With years of experience under our belts, we understand the ins and outs of the OIC process. Our team has been guiding clients in San Mateo, California , and surrounding areas through the intricacies of tax laws since 2006. We don't just provide legal advice; we offer a lifeline when you're feeling overwhelmed by mounting tax debts. We're here to help you explore your options, understand your eligibility for an Offer in Compromise, and complete the application process.

What Is an Offer in Compromise?

An Offer in Compromise is essentially a lifeline thrown by the IRS to individuals drowning in tax debt. It's a program that allows folks to settle their tax liabilities for less than the full amount owed. Sounds like a dream come true, right? Well, it can be. But it's also a complex process that requires careful navigation.

That's where we come in. Our experienced attorneys at EH Law Group, located in San Mateo, California, are well-versed in all things OIC. We provide assistance to clients throughout the surrounding areas, including San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

Payment Options for Offer in Compromise

So, how do you pay for an Offer in Compromise?

There are two primary options: a lump sum cash offer or a periodic payment offer.

The lump sum cash offer is pretty straightforward. You pay the settlement amount in full within 90 days of the IRS accepting your offer. It's a great option if you have access to a significant amount of cash or can borrow the necessary funds.

On the other hand, a periodic payment offer allows you to make monthly installment payments over a period of up to 24 months. The first payment must be submitted with the offer, and subsequent payments must be made while the IRS is evaluating the offer. This option provides more flexibility, especially for those who can't afford to pay the settlement amount in one go.

Eligibility for Offer in Compromise

Before you get too excited about the possibility of an Offer in Compromise, it's important to understand that not everyone qualifies. The Internal Revenue Service (IRS) has stringent eligibility criteria in place.

They carefully assess factors such as your income, expenses, asset equity, and future earning potential. In general, you may be eligible for an Offer in Compromise if you can provide compelling evidence demonstrating that you are genuinely unable to pay your tax debt in full or that doing so would lead to significant financial hardship. It's crucial to thoroughly evaluate your financial situation and consult with a tax professional to determine if pursuing an Offer in Compromise is the right option for you.

The Process of Offer in Compromise

The OIC process all starts with submitting a completed Form 656, Offer in Compromise, along with the required documentation and application fee. Then, the IRS reviews your offer and may request additional information or documentation.

It's crucial to provide accurate and complete information to avoid delays or rejection of the offer. Once the IRS accepts the offer, you must stick to the agreed-upon payment terms and fulfill all your tax obligations moving forward.

Why You Should Get Legal Support for Offer in Compromise

Understanding what an Offer in Compromise is no easy task. That's why it's highly recommended to seek legal support. Our seasoned attorneys at EH Law Group are here to guide you every step of the way. We'll help determine if an OIC is the right option for your specific situation, assist in preparing the necessary documentation, negotiate with the IRS on your behalf, and ensure compliance with all requirements.

With our experience, you can increase your chances of a successful OIC and achieve the best possible outcome. So, why not reach out today and take your first steps toward financial relief? One phone call can drastically change the quality of your life in the short- and long-term.

Can I Continue to Pay Into a Retirement Account Under Chapter 13?

Wed, 04 Dec 2024 19:54:19 GMT

One of the questions we often hear at EH Law Group is whether it's possible to continue making voluntary contributions to retirement accounts during a Chapter 13 bankruptcy. The answer isn't as straightforward as you might think. In fact, courts across the country don't always agree on this issue.

Some courts view these contributions as reasonably necessary expenses. They understand that planning for your future is important and that continuing to contribute to your retirement account can provide some financial stability in your later years.

Other courts, however, see things differently. They don't consider these contributions to be essential expenses, which means they could potentially impact the amount you're required to repay your creditors.

Retirement Contributions Reduce Payments to Creditors

Chapter 13 bankruptcy involves repaying creditors over a three to five-year period based on your disposable income—the money left after deducting your necessary living expenses.

When you contribute to a retirement account, that's less disposable income available to repay creditors, and they may argue that those funds should be directed towards your debts. Consequently, if a court doesn’t consider retirement contributions a necessary expense, your payments to creditors might increase, which can tighten your budget even further.

Consulting with a bankruptcy attorney to navigate this complex issue is, therefore, essential to make informed decisions that align with your long-term financial stability.

When Is Retirement Considered a Necessary Expense?

A necessary expense under bankruptcy law typically refers to costs that are considered essential for maintaining a basic standard of living while undergoing the bankruptcy process. These expenses include food, shelter, utilities, transportation costs, and critical healthcare needs.

Courts determine which expenses are deemed necessary by evaluating whether they are reasonable and whether the individual cannot maintain a minimal lifestyle without them.

In the case of retirement contributions, the court has to consider whether these expenses are crucial to supporting the long-term welfare of the filer and whether foregoing them would present significant challenges post-bankruptcy.

For instance, if you're approaching retirement age, the court might view retirement contributions as a necessary expense because they're essential for supporting your financial needs during retirement. Conversely, if you're still young and have many working years ahead of you, the court may be more likely to consider these contributions as optional expenses.

Is Bankruptcy the Right Path for You?

Deciding whether or not to file for bankruptcy is a deeply personal and complex decision, and it might not be the right path for everyone, especially for individuals who are primarily focused on their retirement savings.

For these individuals, the restrictions on retirement contributions during Chapter 13 proceedings could significantly disrupt their long-term financial planning. Those who have a considerable amount of time before retirement may find themselves at a crossroads—choosing between immediate debt relief and the stability of their future.

Furthermore, bankruptcy can also impact credit scores, limiting the ability to secure future loans which may be necessary for unexpected life events or even retirement plans. Credit considerations and the restrictions imposed on retirement savings speak to the importance of consulting with financial advisors and bankruptcy attorneys to explore all available options. That way, you can craft a strategic, personalized plan that supports both current financial rehabilitation and future financial goals.

Bankruptcy is often used as a last resort, so if you have other options available, it's crucial to explore them before making a decision. Our attorneys at EH Law Group can help you no matter where you're at in the process.

Will I Lose My Retirement Savings if I File for Bankruptcy?

The good news is that retirement accounts are typically protected during bankruptcy proceedings . This means that even if you file for bankruptcy, your retirement savings will likely remain untouched.

However, as mentioned earlier, the amount of disposable income available to contribute towards your retirement account may be affected by the Chapter 13 repayment plan. Therefore, it's essential to consult with a bankruptcy attorney to understand the potential impact on your retirement savings before making any decisions.

Secure Trustworthy Legal Counsel

Deciding to file for bankruptcy isn't a decision to be taken lightly. It can have far-reaching implications for your financial future. That's why it's crucial to consult with a knowledgeable bankruptcy attorney in your area before filing your case. At EH Law Group, we're well-versed in the specific rules and practices of our bankruptcy jurisdiction in the Bay Area.

Our attorneys bring over 30 years of combined experience to the table and have helped countless Bay Area residents navigate their way through Chapter 7 and Chapter 13 bankruptcy cases.

Remember, bankruptcy isn't a sign of failure—it's a legal tool designed to give overwhelmed individuals a fresh start. Whether you're dealing with creditor harassment or foreclosure , or just need help settling your debts, we're here for you.

Modifying a Repayment Plan Under Chapter 13

Wed, 04 Dec 2024 19:54:19 GMT

Life is full of surprises, and you never know when the plot of your personal story will take an unexpected turn. While some plot twists are welcome and wonderful, others are more challenging and can have a significant impact on your financial situation.

Events like serious injuries, job losses, medical emergencies, or other unpredictables can make it difficult to keep up with your financial goals. This can be especially frustrating after you've been putting in the time and effort to get your finances in order through bankruptcy or other debt-relief programs.

Thankfully, it's entirely possible to modify your Chapter 13 payment plan. But before we dive into the specifics, let's briefly review what Chapter 13 bankruptcy is and how it works.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often referred to as a wage earner's plan, allows individuals with a regular income to develop a plan to repay all or part of their debts. While it's the less popular personal bankruptcy choice than Chapter 7, those who are eligible for Chapter 13 may find it more favorable for a variety of reasons.

One of the foremost benefits of Chapter 13 is the ability to save one's home from foreclosure. It also offers individuals the opportunity to reschedule secured debts and propose a repayment plan that makes installments to creditors over three to five years. It essentially acts as a consolidated loan, offering a structured path to financial recovery.

Reasons to Modify Your Chapter 13 Plan

Reasons to seek modification of a Chapter 13 repayment plan are as varied as the borrowers themselves. Understanding the legitimate grounds for modification is crucial for a debtor considering adjusting their payment structure. Let's explore some of the common scenarios that warrant payment plan updates:

Pay Cut or Decrease in Income

This could be due to a job loss, a reduction in salary, or fewer opportunities for overtime work. A lowered income may affect your ability to meet the initially agreed-upon payment amount, necessitating a plan modification to accurately reflect your current financial abilities and ensure payments remain manageable.

Increase in Living Expenses

An increase in living expenses, such as increased insurance rates, necessary home repairs, or a spike in utility costs, can also be grounds for altering your repayment plan. These expenses may not have been anticipated when you first formulated your payment strategy, and without modification, they could place undue strain on your budget, making it challenging to adhere to the original plan.

Additional Debts

In some cases, debtors incur new debt after the confirmation of a Chapter 13 plan due to unforeseen circumstances such as emergency spending. These additional debts could potentially be integrated into the existing repayment plan; however, this requires the approval of the court and, in some instances, creditors. Adjusting the plan to include these debts can ensure that all obligations are managed in a unified and sustainable manner.

Job Loss

When stable employment is no longer a given, the terms of a Chapter 13 repayment plan may become impractical or impossible to meet. Individuals in such a situation must be proactive and file for a plan modification to address the reduced income. Through this process, payments can potentially be lowered, thereby relieving the stress of trying to meet financial obligations without a reliable paycheck.

Illness or Injury

Medical emergencies can be costly, and if a debtor or their dependent becomes ill or injured, it could result in significant medical expenses. In fact, medical debt is the main reason many people file for bankruptcy in the first place. When these types of unforeseen hardships occur, they can significantly impact one's financial stability and ability to maintain the existing Chapter 13 payment plan. Modifying the repayment plan to account for these expenses can help alleviate some of the financial burden.

How to Modify Your Chapter 13 Plan

To modify your Chapter 13 plan, the process typically involves the following steps:

Contact Your Attorney - The first step should always be to consult with your bankruptcy attorney. They will provide you with the guidance you need and help you understand the feasibility of a plan modification based on your current circumstances.
Review Your Budget - Reassess your income and expenses to determine how they have changed since you first filed. Accurate financial information is paramount in creating a modified plan that is both manageable and acceptable to the bankruptcy court.
Prepare a Revised Plan - With your attorney’s assistance, draft a revised Chapter 13 plan. The updated plan should reflect your new financial reality and show the court how you intend to manage the plan payments moving forward.
File a Motion to Modify - Once the revised plan is prepared, your attorney will file a motion to modify the plan with the bankruptcy court. Notice of this motion must be provided to all of your creditors, who will have the opportunity to object to the proposed changes.
Attend a Hearing - The court will schedule a hearing to consider the motion. You may be required to attend this hearing and be prepared to explain the reasons for the modification and how the changes will allow you to successfully complete the plan.
Creditor Objections - Creditors have the right to object to the modification . Your attorney will negotiate with objecting creditors to try to reach an agreement on the terms of the modified plan.
Court Approval - If no objections are filed, the court will normally grant the motion. The judge will make the final determination on whether the proposed plan modification is approved. Factors considered include the justification of the change in circumstances, the fairness to creditors, and your ability to complete the modified plan.

Remember, the process and requirements may vary based on local laws and the specifics of your case, so this overview should only be used as a starting point. Contacting a knowledgeable attorney who's experienced in handling Chapter 13 bankruptcy will be crucial in successfully modifying your repayment plan.

What if a Modification Doesn't Help Me?

Sometimes, even with a modified plan, financial burdens may remain too heavy to bear. When a modification isn't enough to offset the challenges you're facing, you might need to consider alternative options. These can include converting your Chapter 13 bankruptcy to a Chapter 7 bankruptcy , which can lead to a discharge of certain unsecured debts. However, this isn't a step to be taken lightly – converting to Chapter 7 may result in the liquidation of some of your assets.

Another possibility might be to seek a hardship discharge under Chapter 13. This route is only available under specific conditions, such as when circumstances beyond your control, excluding misconduct or mismanagement, prevent you from completing your plan, and when creditors have already received at least as much as they would have under a Chapter 7 liquidation.

Finally, if neither option is viable, you may find it necessary to dismiss your Chapter 13 case and deal with your debts outside of bankruptcy. This could mean negotiating directly with creditors or exploring other debt settlement options.

However, it's important to note that dismissing your case will remove the protections that bankruptcy provides, which could open you up to collections, lawsuits, or foreclosure.

In any case, your decisions and actions need to be carefully considered. That's why the counsel of a bankruptcy attorney is invaluable. They can provide tailored advice based on the specifics of your situation and help you find the best possible outcome for you.

What if I Can’t Fulfill the Repayment Plan Under Chapter 13?

Wed, 04 Dec 2024 19:54:19 GMT

Life is unpredictable, and sometimes despite our best efforts and intentions, we find ourselves grappling with financial hardships that can derail even the most meticulously planned budget. For individuals who are under a Chapter 13 bankruptcy repayment plan, the fear of not being able to meet the agreed-upon payments is a source of stressful uncertainty. If you find yourself in this situation, rest assured that all is not lost if you find yourself unable to keep up with Chapter 13 payments. From modifying your plan to converting to Chapter 7 bankruptcy, you may have options available.

Understanding Chapter 13 Bankruptcy

Chapter 13, commonly known as 'wage earner’s plan', allows individuals with a regular income to develop a plan to repay all or part of their debts. It typically spans three to five years and is suited for debtors who wish to keep certain secured assets, such as a car or a house, provided they can afford to pay for these assets over time.

Common Reasons for Failure to Meet Repayment Plan

It's not unusual for individuals with a payment plan under Chapter 13 bankruptcy to encounter difficulties fulfilling their repayment commitments. Here are some of the key factors that often lead to these financial roadblocks:

Unexpected Income Reductions . Whether through job loss, cutbacks, or reduced work hours, a sudden drop in income can derail one's ability to stick to the agreed-upon repayment plan.

Health-Related Financial Shocks . Medical emergencies can impose significant unexpected expenses, straining one's budget and jeopardizing the repayment structure, especially without adequate health coverage.

Life Alterations . Events such as divorce, the death of a close family member, or damage from natural disasters can not only take a toll emotionally but also financially, affecting one’s capacity to comply with the repayment schedule.

Recognizing these potential hurdles is the first step toward addressing them. Don't hesitate to reach out for help if you find yourself in financial distress. It could be the wisest move you make to get out of the situation you're in.

Steps to Take if You Can't Fulfill the Repayment Plan

The first and most crucial step if you anticipate difficulty with your Chapter 13 payments is to contact your bankruptcy attorney immediately. They are your most reliable resource for understanding and navigating the next steps you need to take.

Once you contact your attorney, take a comprehensive look at your financial situation to understand the scope and nature of the changes that are affecting your ability to meet the repayment plan. This self-assessment will help your attorney in devising the best strategy moving forward and can also be insightful for you in terms of future financial planning.

Legal Options Available

Exploring the legal avenues available to you is smart when facing difficulties in fulfilling your Chapter 13 repayment plan commitments. Some of your options include modifications, being granted a hardship discharge, and converting to Chapter 7 bankruptcy.

Modification of the Repayment Plan

You must show a significant and lasting change in circumstances since the origination of the repayment plan. This can be a reduction in income, an increase in expenses due to unforeseen hardship, or a co-debtor's unexpected financial problems.

You will need to file a motion with the bankruptcy court and provide evidence of the hardship. This could include pay stubs, unemployment benefits, medical bills, or any other relevant financial documentation.

The court could approve a new, adjusted repayment plan based on the evidence provided. The new plan is designed to reflect your current financial situation and is typically not longer than the original plan, although it can lower monthly payments to an affordable level.

Hardship Discharge

A hardship discharge is a court-ordered release from your Chapter 13 plan if the initial plan was impossible to complete due to circumstances beyond your control. To be eligible, you must have already paid out as much under your plan as your creditors would have received had you filed for Chapter 7 bankruptcy.

Similar to the process for a modified repayment plan, you’ll need to file a motion with the court, demonstrating that a serious and permanent change in your financial ability has occurred, making it impracticable for you to complete the plan.

While a regular discharge effectively eliminates the remaining eligible debts, a hardship discharge does this while the case is ongoing and before the completion of payments in the original plan.

Conversion to Chapter 7 Bankruptcy

To convert your Chapter 13 bankruptcy to a Chapter 7, you must be eligible for Chapter 7 and not have received a discharge in a Chapter 7 case filed within the last eight years or a Chapter 13 case filed within the last six years. Some of the pros of converting include a faster process and potentially greater discharge of debts. However, Chapter 7 typically doesn't allow you to keep property that you're still paying for under your Chapter 13 plan.

When you convert to Chapter 7, the assets in your Chapter 13 plan may need to be surrendered to the bankruptcy trustee for liquidation to satisfy your debts. Your dischargeable debts will be eliminated, provided they are not affected by the conversion rules.

Consequences of Failing to Act

If you fail to take proactive steps to address your repayment challenges, your bankruptcy trustee or creditors may seek a dismissal of your case. This can have severe financial and legal implications, leaving you more vulnerable to creditor actions and negating any protections granted under the bankruptcy filing.

Preventive Measures and Financial Management

When facing difficulties in meeting your Chapter 13 repayment plan, it’s crucial to adopt preventive measures and fine-tune your financial management strategies. Here are actionable steps to consider:

Timely Communication : Contact your attorney and the bankruptcy court promptly to discuss any potential repayment issues. Open and honest dialogue can help in finding feasible solutions and demonstrate your commitment to resolving the problem.

Budget Development : Craft a budget that accurately reflects your financial status post-hardship. Prioritize necessary expenses and reduce non-essential spending. Adhering to this budget can convey to the court and your creditors that you're making a genuine effort.

Financial Goals Reassessment : Review and adjust your long-term financial plans to accommodate the changes in your circumstances. Setting realistic goals can aid in navigating through the current financial challenge and preparing a solid ground for future stability.

Incorporating these steps not only aids in navigating through the immediate crisis but also sets a foundational framework for lasting financial health and resilience.

Make the Choice That's Right for You

Facing financial difficulties in the midst of Chapter 13 bankruptcy can be daunting, but it does not spell automatic failure. By understanding your legal options, seeking immediate counsel, and taking proactive steps, you can work toward achieving the fresh financial start that is the goal of any bankruptcy filing. EH Law Group stands by your side through every turn in the bankruptcy process, offering compassionate and experienced legal support. Remember, legal actions can have complex repercussions, so work with a skilled bankruptcy attorney who can guide you to the best possible outcome in your unique situation.

How Will Bankruptcy Affect Me in the Workplace?

Wed, 04 Dec 2024 19:54:19 GMT

The decision to declare bankruptcy is not one taken lightly, especially when considering its potential repercussions on your job. Whether you're considering filing for bankruptcy or have already begun the process, understanding its implications in your profession is important.

In most cases, bankruptcy will not affect your current employment status. And, your employer cannot reduce your salary, demote you, or take away your responsibilities. However, it is possible that future jobs could be denied due to filing for bankruptcy. Because of this, it's important to know what your rights are.

The Bankruptcy Act caters to your protection, discerning the turmoil bankruptcy can cause in an individual's life, both personal and professional. Employees are insulated against discriminatory action in the workplace due to a bankruptcy filing. But what does this really mean for you and your job?

Bankruptcy Overview

Bankruptcy encompasses three key chapters (7, 11, and 13), each with a particular focus on the associated filing party, whether an individual, company, or farmer. Chapter 7 involves liquidation, Chapter 11 is about reorganization for businesses, and Chapter 13 crafts a repayment plan for individuals earning a regular income.

For employees, bankruptcy laws exist to shield them against adverse repercussions such as termination, demotion, or a reduction in compensation if their employer finds out about their bankruptcy. This protection extends to job candidates, impeding discrimination in the hiring process.

Effect of Filing for Bankruptcy in Employment

The process of filing for bankruptcy is not a standalone event, but multiple steps that can ripple into various aspects of life, especially work. The reasons for bankruptcy filings can range from unforeseen medical costs to economic downturns affecting businesses. But as an employee, engaging in this process demands careful navigation to minimize workplace disruption.

Understand the potential impacts:

Job Security: The law generally prevents employers from firing someone solely due to a bankruptcy filing. However, exceptions exist for certain circumstances, such as the employee's inability to perform their job duties due to financial distress.

Promotion and Pay: Eligibility for career advancements may not be immediately impacted, but long-term reviews and risk assessments by employers can influence future prospects.

Certifications and Clearances: Certain professional credentials and security clearances may be reviewed or affected, leading to a re-evaluation of job suitability.

The job search nears even more treacherous terrain with a bankruptcy history. Should you disclose this information? The advice herein is as much about timing as it is about tact. Be prepared for scrutiny in sectors where credit checks are commonplace, and leverage your learning to frame your narrative in a positive light.

Disclosure Dilemma on Job Applications

The mandate to disclose bankruptcy on job applications is contestable. While some applications explicitly request this information, others pose it at your discretion. In either case, your handling of the response can sway employer perception significantly.

Employer Credit Checks: Forewarned Is Forearmed

In industries like finance, government, and security, employer credit checks are common practice. Being aware of this can empower job seekers in these fields to take proactive steps in managing their financial history, potentially influencing hiring decisions in their favor.

While maintaining privacy, openly discussing your journey post-bankruptcy and showcasing improved financial management skills can help rebuild trust with employers.

Privacy and Disclosure in the Workplace

Your financial affairs are inherently personal, but in certain situations, workplace disclosures might be warranted or necessary. Some of these situations include when they are conducting pre-employment background checks, which could include credit history; and in some cases, coworkers and superiors may become privy to your bankruptcy filing if it is included in court records or public notices. Understanding the bounds of privacy and the role of employers in this context is vital.

Earning Trust Back

Post-bankruptcy, demonstrating financial responsibility becomes crucial in regaining professional trust. Consistent actions that reflect fiscal prudence not only signal growth but also resilience in adversity.

Exiting bankruptcy isn't the end; it marks the beginning of a journey toward financial recovery and professional rejuvenation. It's a period to sharpen your financial literacy, enhance your professional skills, and chart a career path that transcends past challenges.

Bankruptcy's Long-Term Career Impact

The impact of bankruptcy on a career isn't immediate or uniform; it evolves over time based on decisions made post-bankruptcy. Taking a long-term view helps in assessing its implications and navigating future opportunities effectively.

Reach out to EH Law Group if you need assistance with anything related to bankruptcy. While the impact of bankruptcy on one's career may seem daunting, it's essential to recognize that it doesn't define your professional journey indefinitely. By focusing on rebuilding trust through responsible financial behavior, investing in ongoing skill development, and maintaining integrity in the workplace, individuals can navigate the challenges of bankruptcy and emerge stronger, ultimately shaping a resilient and promising professional future.

Joint Accounts and Bankruptcy

Wed, 04 Dec 2024 19:54:19 GMT

A joint bank account is an account shared by two or more individuals, typically used by couples, business partners, or family members. Both parties have access to the funds in the account and can make deposits or withdrawals independently. While joint accounts offer convenience and shared financial management, they also come with complexities, especially when one party faces financial difficulties or decides to file for bankruptcy.

If you're considering filing for bankruptcy, understanding the implications for joint accounts is essential. The prospect of bankruptcy can be overwhelming, but with the right guidance, it can also be a strategic step toward financial freedom.

At EH Law Group, we bring decades of experience to help you through this challenging process with empathy and precision. We are here to ensure you are informed and supported every step of the way.

How Bankruptcy Affects Joint Accounts

When you file for bankruptcy, the impact on your joint accounts depends on several factors, including the type of bankruptcy filed and the relationship between the account holders. Here’s a closer look:

Chapter 7 Bankruptcy

In a Chapter 7 bankruptcy , also known as liquidation bankruptcy, non-exempt assets are sold to repay creditors. Joint accounts may be considered part of these assets, and your share of the funds could be at risk. However, the bankruptcy trustee will only have access to your portion of the account, not your co-holder’s share.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves restructuring your debts and creating a repayment plan over three to five years. With a Chapter 13 filing, you generally retain more control over your assets, including joint accounts. However, it’s essential to maintain transparency and include all assets in your bankruptcy filings to avoid legal complications.

Options and Strategies for Protecting Joint Accounts

Protecting your joint accounts during bankruptcy requires strategic planning and thorough understanding of bankruptcy laws. Here are some options and strategies:

Separate Your Finances

Before filing for bankruptcy, it's wise to separate your finances from your co-holder. This means opening individual accounts and transferring your share of the joint account funds into your own name. This strategy can help protect the co-holder's portion of the funds from being included in the bankruptcy estate.

Understand Exemptions

Bankruptcy exemptions allow you to protect certain assets from being liquidated in Chapter 7 bankruptcy. Understanding these exemptions and how they apply to joint accounts can help you protect your funds. California offers specific exemptions under state law, so consulting with an experienced bankruptcy attorney can provide clarity and direction.

Maintain Detailed Records

Keep thorough records of all transactions related to your joint accounts. This documentation can prove invaluable in demonstrating which portion of the funds belongs to you and which belongs to the co-holder, helping to safeguard their share.

Considerations for Couples

For couples, filing for bankruptcy requires careful consideration and open communication. Here’s some advice for approaching this topic:

Assess Your Financial Situation Together

Evaluate your joint financial situation and determine the best course of action for both parties. Sometimes, filing jointly can be more beneficial, allowing you to discharge shared debts and protect joint assets more effectively.

Communicate Openly

Transparency is key. Discuss your financial challenges and goals openly with your partner. Understanding each other’s perspectives can help you make informed decisions that benefit both parties.

Seek Professional Guidance

Consulting with a knowledgeable bankruptcy attorney is wise. An attorney can provide personalized advice based on your unique circumstances, helping you protect your assets and achieve the best possible outcome.

Examples of Joint Accounts in Bankruptcy

Example scenarios can offer valuable insights into how bankruptcy affects joint accounts. Here are a few:

Scenario 1: Married Couple With Joint Checking Account

John and Jane, a married couple, share a joint checking account. John decides to file for Chapter 7 bankruptcy. By separating their finances beforehand and keeping detailed records, they demonstrate that half of the funds belong to Jane and are therefore protected from the bankruptcy estate.

Scenario 2: Business Partners With Joint Savings Account

Business partners Mike and Sarah have a joint savings account for their business. Mike files for Chapter 13 bankruptcy. By including the joint account in his repayment plan and maintaining transparency, they ensure that their business operations remain unaffected while addressing Mike’s personal financial challenges.

Scenario 3: Parent and Adult Child With Joint Account

Susan, a parent, shares a joint account with her adult child, Emily. When Emily faces financial difficulties and considers bankruptcy, they consult with an attorney who advises them to separate their finances. This proactive step helps protect Susan's funds from being included in Emily’s bankruptcy estate.

Reach Out to Our Team for Assistance

Filing for bankruptcy is a significant decision that requires careful consideration, especially when joint accounts are involved. By understanding the legal and financial implications, protecting your assets, and seeking professional guidance, you can navigate this process with confidence.

If you’re considering bankruptcy and concerned about the impact on your joint accounts, don’t try to figure it out alone. Reach out to EH Law Group today to schedule a consultation. Let us help you understand your options and guide you toward a brighter financial future.

With over 30 years of combined experience , our attorneys, Eddy Hsu and Grace Ho , bring expertise, empathy, and individualized attention to each case. We serve clients throughout San Mateo, San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco.

How Bankruptcy Affects Tax Returns

Wed, 04 Dec 2024 19:54:19 GMT

With financial uncertainty on the rise, many individuals are considering bankruptcy to manage mounting debts. However, the implications of bankruptcy extend beyond immediate debt relief; it also affects various aspects of your personal finances, including your tax returns.

At EH Law Group , our experienced bankruptcy attorneys in San Mateo and San Francisco, California, are here to guide you through this involved process and ensure you understand how bankruptcy impacts your tax situation.

Understanding Bankruptcy

Before diving into the specifics of how bankruptcy affects tax returns, it's essential to have a clear understanding of what bankruptcy entails. Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court.

There are several types of bankruptcy. For individuals, the most common are Chapter 7 and Chapter 13 .

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, also known as "liquidation bankruptcy," involves the sale of a debtor's non-exempt assets by a trustee to pay off creditors. This type usually takes about four to six months to complete and primarily discharges unsecured debts such as credit card balances and medical bills.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often referred to as the "wage earner's plan," allows individuals to keep their property and repay their debts over three to five years through a court-approved repayment plan. This type of bankruptcy is suitable for people with a regular income who want to catch up on missed mortgage or car loan payments while discharging unsecured debts.

Bankruptcy and Tax Returns

One of the most significant concerns for individuals considering bankruptcy is its impact on tax returns. Here, we explore the direct effects of bankruptcy on tax-related matters, including the discharge of tax debts, the timing of filing, and the treatment of tax refunds.

Discharge of Tax Debts

Not all tax debts can be discharged in bankruptcy. Specific conditions must be met for tax liabilities to be eligible for discharge:

Type of tax: Only federal income tax debts can be discharged.

Age of the debt: The tax debt must be at least three years old.

Filing requirements: The taxpayer must have filed a tax return for the debt at least two years before filing for bankruptcy.

Assessment date: The IRS must have assessed the tax debt at least 240 days before the bankruptcy filing.

If these conditions are met, Chapter 7 bankruptcy can discharge qualifying tax debts, whereas Chapter 13 allows for the inclusion of tax debts in the repayment plan, making it easier to manage tax obligations.

Timing of Filing

The timing of your bankruptcy filing can significantly impact your tax return:

Pre-petition debt: Any tax debt incurred before filing for bankruptcy is considered pre-petition debt and may be included in the bankruptcy case.

Post-petition debt: Tax debts incurred after filing are not included in the bankruptcy case and must be paid separately.

It's wise to strategically time your bankruptcy filing to maximize the benefits and minimize complications related to your tax situation.

Treatment of Tax Refunds

Tax refunds can be a contentious issue in bankruptcy. Here's how they are generally treated:

Chapter 7 bankruptcy: Tax refunds due for the period before filing are considered part of the bankruptcy estate and may be used to pay creditors. However, refunds for post-filing periods are typically not affected.

Chapter 13 bankruptcy: Tax refunds are usually considered disposable income and must be paid into the repayment plan, unless otherwise specified by the court.

In both cases, it's essential to disclose all expected tax refunds to your bankruptcy attorney to avoid potential issues.

Tips for Filing Taxes During Bankruptcy

Approaching tax return filings during bankruptcy can be challenging. Here are some practical tips to help you stay compliant and maximize available benefits:

File all required returns: Ensure all past and current tax returns are filed promptly. Failure to do so can delay your bankruptcy case and complicate matters.

Consult with a tax professional: Working with a tax professional with experience in bankruptcy can help you understand the nuances of tax filings during the bankruptcy process.

Keep detailed records: Maintain thorough records of all income, expenses, and tax filings. Accurate documentation is important for both your bankruptcy case and tax return preparation.

Communicate with your bankruptcy attorney: Regularly update your bankruptcy attorney on any changes in your financial situation, including tax-related matters, to ensure your case proceeds smoothly.

Post-Bankruptcy Tax Considerations

Emerging from bankruptcy is just the beginning of your financial recovery. Managing tax obligations post-bankruptcy is essential to rebuilding your credit and avoiding future financial challenges:

Rebuilding credit: Pay your taxes on time and in full to demonstrate financial responsibility, which can help rebuild your credit score.

Avoid future tax issues: Create a budget and stick to it to prevent falling behind on tax payments and accumulating new tax debts.

Seek professional advice: Continue working with a tax professional, financial advisor, and bankruptcy attorney to manage your finances effectively and make informed decisions.

Allow Our Bankruptcy Attorneys to Help

At EH Law Group, we understand bankruptcy and its impact on your tax situation. By strategically managing your tax obligations during and after bankruptcy, you can maximize the benefits of the process and set yourself up for long-term financial stability.

Our empathetic attorneys are dedicated to helping Bay Area residents make it through the bankruptcy process and achieve financial relief. Offering over 3 decades of combined experience, Eddy Hsu and Grace Ho offer personalized guidance and support to ensure you make informed decisions and move toward a brighter financial future.

If you're considering bankruptcy and need experienced legal advice on how it will affect your tax returns, reach out to our attorneys at EH Law Group today to schedule a consultation.

For more information and to get started on your path to financial freedom, visit our offices in San Mateo or San Francisco, California, or contact us online. We proudly serve clients throughout Santa Clara County, Oakland, Daly City, and South San Francisco.

Does Bankruptcy Affect Social Security Income?

Wed, 04 Dec 2024 19:54:19 GMT

Making the decision to file for bankruptcy is never easy, especially for those who rely on Social Security income as their primary or sole source of financial support.

Understanding how bankruptcy impacts this income is important for anyone in this situation. Many individuals worry about whether their benefits will be affected or if they might lose their financial lifeline. It's important to know that Social Security income is generally protected in bankruptcy.

However, working through the legalities of bankruptcy while ensuring your Social Security benefits remain untouched requires careful consideration and planning. Seeking legal guidance and gaining a thorough understanding of your rights and options can help you make informed decisions and safeguard your financial stability during challenging times.

At EH Law Group , we specialize in helping individuals with the nuances of bankruptcy law, ensuring that their rights and benefits are protected throughout the process. In this post, we'll dive into the relationship between bankruptcy and Social Security income, offering insights and practical advice to help you approach these topics with confidence.

The Relationship Between Bankruptcy and Social Security Income

Eligibility and Amount

One of the most pressing concerns for individuals considering bankruptcy is whether their Social Security income will be affected. This is a significant worry since Social Security benefits often constitute a major portion of the income for many retirees and disabled individuals.

The good news is that Social Security income is generally protected under federal law. According to the Social Security Act, Social Security benefits cannot be garnished or levied by creditors, except for certain debts like child support, alimony, and federal taxes. This means that filing for bankruptcy will not alter your eligibility for Social Security benefits or the amount you receive.

Additionally, it's important to understand that Social Security income is usually considered exempt property in bankruptcy cases. This exemption provides a crucial safeguard for individuals who rely heavily on these benefits.

However, it's always advisable to consult with a bankruptcy attorney to ensure that you're fully aware of your rights and protections. By being informed and prepared, you can make better decisions and safeguard your financial security during the bankruptcy process.

Protection Under Federal Law

When you file for bankruptcy, the automatic stay that goes into effect immediately halts most collection actions against you, including attempts to garnish your Social Security income. Furthermore, under Section 207 of the Social Security Act, Social Security benefits are shielded from being assigned, transferred, or subject to any legal process, including bankruptcy.

However, it's important to note that while Social Security income is protected, it doesn't automatically mean that all of your financial woes are resolved. The way your Social Security benefits are handled during bankruptcy can vary depending on factors such as the type of bankruptcy filed ( Chapter 7 or Chapter 13 ) and the specific circumstances of your case.

Handling Bankruptcy While Protecting Social Security Income

Navigating bankruptcy while protecting your Social Security income requires careful planning and understanding of the law. Here are some key steps to consider:

Separate bank accounts : To ensure your Social Security income is easily identifiable and protected, consider having it deposited into a separate bank account that is not commingled with other funds.
Consult an attorney : Engaging an experienced bankruptcy attorney can make a significant difference in safeguarding your social security income. At EH Law Group, we help clients throughout San Mateo, San Francisco, Santa Clara County, Oakland, Daly City, and South San Francisco. Our attorneys can provide personalized advice and develop a strategy tailored to your unique situation.
Understand exemption laws : Each state has its own set of exemptions that can protect certain assets during bankruptcy. In California, for example, you may be able to use the state's wildcard exemption to protect additional funds in your bank account, including Social Security income.

Financial Planning

Beyond the legal considerations, effective financial planning is fundamental to seeing bankruptcy through successfully:

Budgeting: Create a detailed budget that accounts for your Social Security income and essential expenses. This will help you manage your finances more effectively during and after the bankruptcy process.

Debt management: Identify and prioritize the debts that need immediate attention. For instance, debts related to child support, alimony, and federal taxes should be addressed promptly, as they are not dischargeable in bankruptcy.

Emergency fund: If possible, set aside a small emergency fund to cover unexpected expenses. This can provide a safety net and reduce financial stress during the bankruptcy process.

Rely on Our Experienced Guidance

Filing for bankruptcy can be an intimidating experience, but it doesn't have to jeopardize your Social Security income. By understanding the protections afforded by federal law and taking proactive steps to safeguard your benefits, you can tackle the bankruptcy process with confidence.

At EH Law Group, we are committed to helping individuals in San Mateo and surrounding areas achieve financial stability while protecting their rights and benefits. If you're considering bankruptcy and want to ensure your Social Security income is protected, contact us today to schedule a consultation. Let us help you secure a brighter financial future.