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For many California residents, filing for bankruptcy is a lifesaver. When someone eliminates most of their debt through Chapter 7 or reorganizes their debt, while maybe saving their home, by filing for Chapter 13, they remove a significant financial burden. However, bankruptcy is not a “get out of jail” free card. In the case of […]
The post Can I Go On Vacation While In Chapter 13 Bankruptcy In California? appeared first on The Bankruptcy Group, P.C..
There is a good deal of misinformation concerning bankruptcy. People hear different myths and bits of incorrect facts about bankruptcy from friends, family members, and co-workers. Unfortunately, over the years, many of these misconceptions have wormed their way into the public consciousness. One question that has come up lately regards the average monthly payment required […]
The post What is the Average Monthly Payment for Chapter 7 Bankruptcy in California? appeared first on The Bankruptcy Group, P.C..
If you owe a debt that is only in your name, you might believe that it is solely your responsibility and not your spouse’s. If your creditor decides to sue you, your wages could be subject to a wage garnishment. However, California is a community property state. Therefore, if a creditor has a judgment against […]
The post Can Creditors Garnish Both Spouses’ Wages in California? appeared first on The Bankruptcy Group, P.C..
The answer to whether or not you are able to keep your furniture when you file for bankruptcy in California is “it depends.” Some of the factors that will influence what happens to your furniture include the chapter of bankruptcy filed, the exemptions you pick, and the value of your furniture. However, in most cases, […]
The post Do I Keep My Furniture if I File for Bankruptcy in California? appeared first on The Bankruptcy Group, P.C..
Having an overwhelming amount of debt is extremely stressful and managing it alone is not easy. Before you consider filing bankruptcy, it is important to understand basic bankruptcy laws, how to file, and how the bankruptcy process works. You should seek help from our Washington & Oregon bankruptcy attorneys to assist you throughout the entire bankruptcy proceeding.
Bankruptcy is a legal proceeding that enables debtors to repay their debts. Filing bankruptcy gives you options on how to pay your debts to your creditors. There are different types of bankruptcy that you may choose from and your eligibility to file bankruptcy will be based on your monthly income, living expenses, and the types of debts that you owe. You should also pass the bankruptcy means test for you to be qualified to file for bankruptcy.
If you are considering bankruptcy, you should know the types of debt that are dischargeable such as unsecured debts, including credit card bills and medical bills. In contrast, non-dischargeable debts include secured debt, child support, alimony, tax debt, and student loan debt.
Also, you must decide on what bankruptcy option would be best for you. If you want to keep your properties while paying your debt, Chapter 13 bankruptcy could be the best option for you.
Filing for bankruptcy Chapter 13 or reorganization bankruptcy restructures the debt by enabling you to pay back creditors (in part or in full) over three to five years. The repayment plan is overseen by a bankruptcy trustee assigned by the bankruptcy court.
The responsibilities of a trustee in bankruptcy include the following:
- Evaluating the bankruptcy petition as well as the proposed payment plan
The proposed debt repayment plan lays out how you will be making payments to pay back your debts. It is the bankruptcy trustee’s responsibility to ensure that the repayment plan is fair and equitable to the creditors.
The trustee begins by evaluating the official bankruptcy forms at the start of the bankruptcy case and checking the details by comparing the statistics given on the official bankruptcy forms to the documentation that you will provide (right after the bankruptcy filing).
Your wages, monthly expenditures, assets, and debts are all listed on the bankruptcy petition. To validate an individual’s financial records, the bankruptcy trustee can use your tax returns, paycheck, bank statements, and other things you will be asked to provide for your bankruptcy case.
- Organizing the meeting of creditors
A debtor will be required to attend a creditors’ meeting which is overseen by the trustee around a month after you declare bankruptcy. Debtors will be questioned under oath regarding the facts on their submitted bankruptcy paperwork, schedule, and other related documentation.
You should expect to be questioned about your wages, properties, and any other important details about your bankruptcy petition. The creditors may ask questions as well.
If, for instance, further paperwork is needed, the trustee may postpone the creditors’ meeting to a later date. Otherwise, he or she would call the meeting to a close.
- Take part in the confirmation hearing
If a creditor or the trustee finds a flaw in your proposed debt repayment plan, they may object to its approval. You will have a limited amount of time to resolve the problem or draft a response to their opposition to the proposal. The bankruptcy trustee will be the one to testify at the hearing and inform the judge whether the proposal is realistic and has met all the requirements. The judge will make the final decision whether to validate or deny the proposal.
- Managing the debt repayment plan in bankruptcy filings
You should start making monthly payments to the trustee (following your payment plan) within thirty days of filing bankruptcy under Chapter 13. The repayment plan stays proposed until the bankruptcy court approves it and the bankruptcy trustee keeps the funds to be distributed to the creditors. Once the court approves the proposed repayment plan, the trustee will start distributing the funds to the creditors in compliance with the terms of the agreement.
The reorganization plan takes up to 3 to 5 years to complete. Until you complete the payment plan, the bankruptcy trustee will continue to receive your payments and distribute them to your creditors. The trustee must assess every proof of claim from creditors and keep track of all the funds collected and how much has been charged to every creditor.
- Objecting to inappropriate creditor claims
Within 70 days of the date of filing, lenders who wish to collect Chapter 13 funds should file a proof of claim with the court. The sum owed to the creditor is stated in the proof of claim, which often contains documents in the form of a contract.
Creditor claims are checked by the bankruptcy trustee, who may object to any claims that are wrongly filed or lack adequate paperwork. Other parties may also raise objections if there are any improper claims.
If you are struggling with debt and financial problems, consulting a trusted bankruptcy attorney is important, especially before you file for bankruptcy. Washington & Oregon bankruptcy attorneys are credible and experienced in handling bankruptcy cases. With their assistance, you may be able to prevent any legal issues during the bankruptcy process. By filing for bankruptcy, you will be allowed to rebuild your financial future.
Have a fresh start with your finances. Call our Washington & Oregon bankruptcy attorneys at Northwest Debt Relief Law Firm for a free consultation.
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The post Bankruptcy Chapter 13: What are the responsibilities of a Trustee? appeared first on Vancouver Bankruptcy Attorney | Northwest Debt Relief Law Firm.
CFPB Submits 2020 Report to Congress on the Administration of the Fair Debt Collection Practices Act
Report highlights commitment to protect consumers during the COVID-19 Pandemic
The Consumer Financial Protection Bureau (CFPB) released the 2020 annual report to Congress on the administration of the Fair Debt Collection Practices Act (FDCPA). The report highlights efforts by the CFPB and the Federal Trade Commission (FTC) to protect consumers, particularly those who have suffered profound financial impacts due to the COVID-19 pandemic. The CFPB and the FTC, along with state and federal partners, accomplished much toward stopping unlawful debt collection practices and continuing its vigorous law enforcement, consumer education and public outreach, and policy initiatives.
In 2020, the CFPB engaged in four public enforcement actions, arising from alleged FDCPA violations. The CFPB resolved two of these cases. The two judgments ordered nearly $15.2 million in consumer redress and $80,000 in civil money penalties. Two cases remain in active litigation. Among other highlights, the report notes the following CFPB accomplishments:
- Identified several issues that raise the risk of consumer harm during the COVID-19 pandemic through its supervisory Prioritized Assessments;
- Published content to help consumers financially navigate the COVID-19 pandemic, including on debt collection, that has been accessed by users approximately 4.3 million times;
- Provided consumer debt collection educational materials – In 2020, “Ask CFPB,” an interactive online consumer education tool logged 1.9 million page views and/or downloads in English and 220,000 in Spanish for its debt collection questions;
- Released a report highlighting service members’ complaint data from 2019;
- Published information about debt collection activity during the pandemic for student loans; and,
- Published results of a quantitative online survey of over 8,000 respondents to test several versions of disclosures to support the understanding of time-barred debt and revival that informed the CFPB’s final rules on debt collection.
CFPB & FTC protect consumers from unfair, deceptive, and abusive debt collection practices
The CFPB and the FTC share authority to enforce the FDCPA, and continue to work closely to coordinate efforts to protect consumers from unfair, deceptive, and abusive debt collection practices. The two agencies reauthorized a permanent memorandum of understanding on February 2019 that facilitates consultation in rulemaking, enables coordination in enforcement, sharing of supervisory information and consumer complaints, and collaboration on consumer education.
The report is available here.
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.
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The CFPB and FTC are back (in other words, they now have political power to do something given the 2021 change in administration). Anyone can be caught in a scam (yes – I mean anyone). We all think it will happen to someone else, but …..
We are all just trying to survive, and, hopefully thrive. Quality education is the way to do both. Never rely on the Internet for advice – there is more bad advice than good. Always seek advice from at least two people who are experienced in the area you need help. Once armed with good information, then use your common sense to decide what is best for you.
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- FDAA Cheated Consumers, Sued for Fraud & Misleading Clients
- Richard S. Berry aka Why Pay a Lawyer – Indicted by the Feds for Fraud, Bribery
- Collection Fraud – You Cannot be Arrested for Not Paying Your Credit Card
- Avoid COVID Mortgage Relief Scams
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The post Stopping Unlawful Debt Collection Practices, CFPB 2020 Report appeared first on Diane L. Drain - Phoenix Arizona Bankruptcy Attorney.
" Thank you so much. What a journey. It was a pleasure to have you as my attorney!! Thank you thank you thank you. Best, Susan"
A Chapter 13 bankruptcy is a reorganization of your debt. The main component of a Chapter 13 bankruptcy is a bankruptcy plan. Your plan will propose what creditors will be paid and how much. One of the first questions anyone filing for Chapter 13 has is, “how much will my monthly plan payment be?” Unfortunately, […]
The post What is the Average Monthly Payment for Chapter 13 in California? appeared first on The Bankruptcy Group, P.C..
Stimulus money is finally being delivered to families in need across the country! You NEED to know the following before utilizing your funds when you are also filing for bankruptcy:
Why Do You Need to Protect Your Stimulus Funds?
Your creditors know you are receiving these funds. It is likely they will expedite collection actions that can get them access to YOUR MONEY as soon as possible.
Why You Shouldn’t Spend Your Stimulus Funds.
Your ability to file your bankruptcy case and discharge your debt may be negatively impacted if you spend your stimulus funds prior to filing your case. In addition, paying family or friends owed debts may delay your filing or cause issues with your bankruptcy trustee which can be avoided through a strategic planning session with Allmand law.
How Can You Protect Your Stimulus Funds?
Contact Us Today so that we can have a strategic planning session and ensure your case gets filed as soon as possible and your stimulus funds are protected.
How Much Will You Get?
If you’re eligible for a third stimulus check (not everyone qualifies for one), the “base amount” for your payment is $1,400. If you’re married and file a joint tax return, the base amount jumps to $2,800. Then, for each dependent in your family, the IRS will tack on an additional $1,400.
Haven’t received your stimulus funds yet?
Check your status with the IRS here: https://sa.www4.irs.gov/irfof-wmsp/login
Are you curious when you will receive your tax refund?
Check here for your Tax Refund Status: https://sa.www4.irs.gov/irfof/lang/en/irfofgetstatus.jsp
The post Stimulus Funds and Bankruptcy appeared first on Allmand Law Firm, PLLC.
In accordance with a bill recently passed by the House, the Chapter 11, Subchapter V Debt Increase from $2,700,00 to $7,500,000 has been extended for another year to March 27, 2022. It was scheduled to expire on March 27, 2021.
Now, the bill heads to the Senate where it is expected to pass.
If you have any questions regarding Subchapter v please contact Jim Shenwick 212 541 6224 [email protected]
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Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.