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Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for April 8th, 2014 Puerto Rico Hires Bankruptcy Lawyers Coldwater Creek bankruptcy filing expected soon James River Files Bankruptcy After Price Drops Idle Mines
William Barry Blythe, 67, of Murrieta, California is charged with one count of bankruptcy fraud and submitting a false tax return. Blythe carried out a homeowner scheme that included creating multiple fake trust accounts that claimed to hold the title of homeowner properties. In doing so, he claimed to take ownership of the mortgages but […]
Chicago Bankruptcy City violations in Chicago, incurred after filing for a Chicago bankruptcy are not eliminated. One such example is where someone who surrenders a home in foreclosure yet owes city violations and then files chapter 7, the debt to the city is not wiped out. You would think that once you give up a+ Read MoreThe post What Happens To City Violations After Filing For a Chicago Bankruptcy? appeared first on David M. Siegel.
Recent good news for families contemplating filing Chapter 7 Bankruptcy in Fresno and throughout California! Beginning April 1, 2014, more families in California will be able to get a fresh start by filing a Chapter 7 bankruptcy.
One obstacle to filing a Chapter 7 bankruptcy case is the "means test". Most individuals whose debts are consumer debt (not business debt) have to "pass" the bankruptcy means test. The bankruptcy "means test" determines whether your income is low enough for you to file Chapter 7 bankruptcy. It is a "test" designed to keep debtors with higher disposable incomes from filing for Chapter 7 bankruptcy. High income filers who fail the means test may use Chapter 13 bankruptcy -- a chapter in bankruptcy that requires debtors to repay a portion of their debts.
The amount a household earns is just one factor. A family that does not make much money will surely pass the means test. However, households that have good paying jobs can also pass the test. The size of the household and the amount of monthly recurring expenses play an important role as well. A family of 7 can have yearly income exceeding $100,000 and still qualify under the means test. Having a lot of expenses, such as paying child support, making a large house mortgage, or having a car payment can help pass the means test. Here is a simple analysis to determine if your household can pass the means test:
Step One: Is Your Income More Than the Median?Below is the newest median yearly income for a households in California:
This median yearly income chart just became effective last week. It was released by the Justice Department. The Justice Department changes the thresholds approximately twice per year. It last changed in November of 2013. The changes resulted in fewer families qualifying for Chapter 7 bankruptcy. I wrote about the changes in a a blog article last November. If you are reading this article after October of 2014, there is a good chance this information is no longer good. Click the link to find the most up to date information.
First, identify how people are in your household. If you are single, current maximum household income is $48,498. If there are 4 people in you household, the amount you are allowed to make is $76,211. If you have more than 4, add $8,100 for each household member.
If your household income is less than the chart states, you pass. Period. You're done. You do not need to complete the rest of the means test. You can file for Chapter 7. No need to do the the second step analysis.
Step Two: Analyze Monthly Expenses
For those whose household income exceeds the state median, the means test computations get significantly more complex. You can still pass the means test, but it will require detailed analysis of your household's monthly expenses. You must determine whether you have enough income left over (called "disposable income"), after paying your "allowed" monthly expenses, to pay off at least a portion of your unsecured debts (such as credit card bills). If your disposable income adds up to more than a certain amount, you fail the means test and cannot file for Chapter 7 bankruptcy. You may be required to file for Chapter 13 bankruptcy.
Attorney Ken Jorgensen is located in Clovis, California. He handles personal, property and business disputes, including bankruptcy and eviction cases. You can find out more about Ken on Facebook, or at his websites, www.fresnolawgroup.com and www.fresnobankruptcylawgroup.com. He can be reached at [email protected] or by telephone at 1-559-324-1882.
Photo Credit: "happy puppy" by Robert Couse Baker at Flickr
Before she came to talk to me about bankruptcy, Ana was scammed out of $200 by Recovery Services. “Recovery Services” called Ana from 855-633-3603 in January and told her she was in trouble for non-payment of a “check” in connection with a pay day loan. The sheriff would bring her papers day after tomorrow unless […]The post Recovery Services at 855-633-3603 Scams Ana appeared first on Robert Weed.
Homeowners very often wind up filing for bankruptcy. Before filing, homeowners wonder whether or not they will be able to keep their house through the bankruptcy process. For most homeowners, there is not sufficient equity in the property which would cause them to lose the property. In other words, the property has no administrative value+ Read MoreThe post Filing Bankruptcy And Protecting Your Home appeared first on David M. Siegel.
While Oksana Grigorieva claims she’s strapped for cash, the bankruptcy trustee overseeing her case claims her monthly expenses are not adding up. Grigorieva, a Russian singer known as the mother of Mel Gibson’s child, filed for bankruptcy recently but the trustee may have found deficiencies related to her debts and expenses that are raising concerns […]
The Bankruptcy Law Office of Robert Weed led all attorneys in Virginia Chapter 7 bankruptcy case filings in 2013. That fact was announced just recently by 722 Redemption Funding, a company that finances cars for people in or just out of chapter 7 bankruptcy. You can see their full report here. For most people […]The post Virginia Chapter 7 Bankruptcy appeared first on Robert Weed.
You can stop your mortgage foreclosure by filing a chapter 13 bankruptcy under most circumstances. Chapter 13 will give you an opportunity to apply for a mortgage modification while under the protection of the Bankruptcy Court.
A chapter 13 bankruptcy must be filed before the foreclosure sale takes place if desire to save your real property. Under chapter 13 you are required to present a plan of reorganization.
Mortgage Modification
In Chapter 13 you are able to use the Bankruptcy Court's new "LMM" program - Loss Mitigation Mediation. You and the mortgage company are able to communicate over a special internet portal so documents do not get lost.
WipeOut "Under-Water" Second Mortgages
Under chapter 13 bankruptcy, you can avoid or wipe-out your second mortgage if it is wholly "under-water." (305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases.
Beyond experience, what should you look for in a bankruptcy lawyer?
When I first started practicing bankruptcy law, my clients didn’t seem to know what to expect of me.
They told me stories of meeting with other bankruptcy attorneys in their quest to get some help, and what they’d experienced.
First there was the story of the attorney who had put his desk on a thick concrete slab so he could look down on his clients.
Then there was the one another the lawyer who stared at his computer screen the entire time, never looking at the person sitting in front of him.
And the attorney who spent half the time on the phone with other clients.
That’s just not acceptable, and I can’t believe that these three people are still practicing bankruptcy law (they are – I see them in court on a regular basis).
Here’s what you should expect from your bankruptcy lawyer:
- Full attention. Whether you’re on the phone with your attorney or sitting in their office, you should get 100% of that person’s attention. Period. No other phone calls, no email checking, no diversions whatsoever.
- Patience. Chances are pretty good that you’ve never been through this before, so it’s natural to have questions. Sometimes, a lot of questions. Often, the same questions arise repeatedly. If your lawyer rushes you out the door, it’s a good idea to look elsewhere.
- Plain English. This is your financial life on the line, not mine. Therefore, you get to make the decisions – all of them. I can make recommendations, but I’m not going to put myself in the driver’s seat when it comes to choosing a course of action. In order for you to be able to make an educated and rational decision about your case, you’ve got to fully understand what’s going on. Unless you’re a lawyer, that means your attorney should always talk using language you can understand rather than legalese.
- Reliability. If I tell you that I’m going to have your bankruptcy court papers ready for your signature on Tuesday, you can rest assured that they will be ready on Tuesday. Not Wednesday, and not Friday. And if I say I’ll meet you in court at 9:00am, I’ll be there at 9:00am (probably even a few minutes early). Though things come up that may make me change the timeframe, those are the exceptions rather than the rule.
- Responsiveness. If you call or email your attorney, you should get a response. You may not get your lawyer on the phone when you call (you’ll seldom get me to pick up the phone when it rings because I’m working on another client’s matter, and that requires my full attention just the same way that you do) but you should get an answer in a reliable amount of time. I handle this by scheduling return phone calls, but other lawyers may deal with it differently.
- Experience. Does your bankruptcy lawyer reply to every query with, “it depends”? Do they sit with a bankruptcy manual open in front of them all the time, flipping through pages whenever you talk? Though no bankruptcy lawyer can have a ready answer to every problem, the one you choose should be conversant in how bankruptcy operates and the impact it will have on your financial world. Even a relatively new practitioner should have a mentor or supportive network of other attorneys ready to help out with thorny issues.
Hiring a bankruptcy attorney is no simple task. There are dozens in most areas, and at first blush it’s hard to distinguish among them. But take the time to talk with a few to make sure you’re getting the best fit for your needs.
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