If you are considering filing a Chapter 7 or Chapter 13, one of your main goals is to receive a discharge of your debt. When you receive your discharge order from the bankruptcy court, it means that you are no longer legally obligated to pay all of the debts included in the discharge. In most cases, the majority if not all of the debt included in your bankruptcy filing can be discharged. Thus, your discharged debt is cancelled! For many people, this saves them from repaying thousands of dollars to creditors and it is often referred to as a financial “fresh start.” When you file a personal bankruptcy, it is essential that you make a full financial disclosure in order to obtain the most comprehensive discharge available. The law requires a debtor to disclose all of his or her debts, creditors, sources of income and expenses. A list of every party that you owe money to is created and it is commonly referred to as…Read More
If you are drowning in student loan debt, you are not alone! Our country is facing an overwhelming amount of student loan debt. Most people are aware that it is difficult to discharge student loan debt in bankruptcy. It is important to understand that it may be difficult, but not impossible! According to Section 523(a)(8) of the Bankruptcy Code, a debtor must be able to prove an “undue hardship” on the debtor or his/her dependents will result from repaying the student loans. There is no clear definition of what constitutes an undue hardship, but the standard is strictly enforced by the bankruptcy courts. In general, an undue hardship means that it is not reasonable to expect the debtor to ever have the ability to repay the student loan debt. Most courts believe that there should be a certain level of hardship experienced by the debtor when repaying the debt. As a result, discharge of student loan debt usually only occurs in extreme cases. The good…Read More
When you are planning to file a Chapter 7 or Chapter 13 case, you are likely looking for every way possible to cut costs and save money. If you are considering representing yourself in your bankruptcy filing, please read our blog titled “Why you Need an Attorney to File Bankruptcy.” Filing any form of legal action (and particularly a bankruptcy case) without legal counsel can be overwhelming and costly. Another way people think they can save money is by using a bankruptcy petition preparer to file their case. As the name indicates, a petition preparer is somebody who assists you with drafting and filing your initial bankruptcy pleadings. They use all of the financial information you provide to them to prepare your petition. Once your bankruptcy petition has been drafted, however, you are on your own. A petition preparer is not an attorney. He or she cannot give you legal advice, which means many of your questions will go unanswered. A petition preparer cannot represent you in…Read More
Many clients come to our office hoping to discharge or eliminate a specific debt. While filing a personal bankruptcy can allow you to discharge the majority of your unsecured debt, there are certain types of debt that are non-dischargeable. One type of debt that is excluded by law from being eligible for discharge is one arising from the “death or personal injury caused by the debtor’s operation of a motor vehicle, vessel, or aircraft if such operation was unlawful because the debtor was intoxicated from using alcohol, a drug, or another substance.” 11 U.S.C. §523(a)(9). For example, if you were in a car accident and the court found you guilty of driving under the influence of drugs or alcohol (DUI) and you owe a debt to the victim in the crash, the debt cannot be discharged. Generally speaking, the law does not permit you to discharge awards of restitution, fines, or penalties that have been imposed by a court of law. Pursuant to Section 523 of…Read More
Most people who are struggling to make ends meet think they cannot afford to hire a bankruptcy attorney. However, if you are planning to file your Chapter 7 or Chapter 13 case pro se (without a lawyer), you should be aware that it may cost you more than you realize. Most individuals who represent themselves in a Chapter 7 or Chapter 13 filing quickly realize it is very difficult. Attorneys must attend years of school and receive training before they are allowed to represent you in court. The bankruptcy laws and rules of the court can be confusing. If you are not familiar with the applicable laws and rules, it is very easy to make costly mistakes. Although the Internet is full of “self-help” websites and there are a variety of do-it-yourself books, these types of sources are limited to providing you with general guidance. Nothing can replace a local attorney who has practiced before the judge or trustee handling your case and understands how to efficiently…Read More
If you are like millions of other people and Facbook, Instagram or Twitter are a part of your daily routine, it is important to understand how social media can impact your personal bankruptcy case. Social media is no longer being used solely be teenagers. Adults and businesses (including your creditors) use networking sites to learn details about others. Thus, if you are considering filing a Chapter 7 or Chapter 13 bankruptcy, you should carefully consider how your posts that could be read by the trustee or your creditors could cause damage in your filing. Below are a few examples of how your posts and pictures could negatively impact your ability to obtain relief from your debt in bankruptcy: All debtors are required under the law to make comprehensive financial disclosures. This includes submitting a list of everything you own. Thus, post a picture of the new motorcycle you just bought that was not listed in your bankruptcy pleadings can raise questions in your case. All…Read More
If you are considering filing for bankruptcy, you should be aware that it will have a negative impact on your credit score. However, for many people their credit score is already damaged by late payments and defaults, so the impact of a bankruptcy filing is not that drastic. A Chapter 7 or Chapter 13 filing does not permanently destroy your credit rating. In fact, with time and dedication, you can rebuild your credit score. If you are interested in restoring your credit rating, you should start work as soon as you receive your discharge order. Below are a few of the factors the credit reporting bureaus consider when calculating your credit rating: Your payment history is an indication of how you handle finances. Thus, it is important that you review your credit report every year to verify that it is accurate. If you discover any mistakes, you should immediately seek to have your report corrected. In order to improve your credit score, you must establish…Read More
Although filing bankruptcy is becoming a more common and accepted thing, many people still worry about who will find out they filed a Chapter 7 or Chapter 13 case. All bankruptcy filings are a matter of public record, so it is possible for anyone who is searching to find out about your case. However, the reality is that most of the people you know will never be aware of your filing unless they are your creditor or you tell them about it yourself. There are certain parties that will receive notice of your case from the bankruptcy court. These parties are all of the people you owe money to, including loans from a friend or relative. It is important that you do not attempt to pay-off the loan you owe to a friend or family member just before your bankruptcy petition date to prevent them from receiving notice of your case. This is considered a “preferential payment” and the trustee will likely take action to…Read More
If you are planning to file for bankruptcy relief and you own a home, you are probably wondering what will happen to your real estate in your case. Bankruptcy law provides protections for certain types of assets, including your home. These laws are commonly referred to as “exemptions” and they remove the exempt asset from being included in your bankruptcy estate. To learn more about exemptions, please contact the legal team at The Law Office of Diane Anderson. You might be surprised to learn that your real property can actually be positively impacted by your bankruptcy filing. Consider the following: Lien Stripping If you have more than one mortgage on your home, you may be able to take advantage of a very powerful tool called “lien stripping.” If you owe more on your first mortgage than your home is worth, you are “underwater” on your home. This means that there is insufficient value to support the second or third mortgages. As a result, a Chapter 13…Read More
Most people who are appointed to serve as the personal representative of a loved one’s estate have no experience handling a probate action or how to administer assets. If you are feeling lost and not sure what your duties and obligations are, it is important to seek the advice and guidance of an experienced estate planning attorney. The duties and obligations of a California personal representative are numerous. The following are examples of some of the tasks you may be required to perform in administering your loved one’s estate: Reading of the Last Will and Testament Comply with the decedent’s instructions for burial or cremation Do what is necessary to protect assets of the estate – this may include notifying financial institutions, insurance companies and other entities of your loved one’s death File a probate action with the court Take a comprehensive inventory of the assets in the estate Have the estate assets appraised Provide the required notifications to beneficiaries, heirs and creditors If creditors…Read More