Archive for the ‘Uncategorized’ Category
August 20, 2010
Bank Levy – You Can Get Your Money Back By Filing For Bankruptcy
Bank Levy – You Can Get Your Money Back By Filing For Bankruptcy
Santos is a student in Los Angeles who has been out of work for nearly a year. Last year both of his cars were repossessed in addition to a boat. The cars that were repossessed were financed and Santos thought he no longer had to worry about that debt. Just recently he has learned that the finance company he used to buy the cars now has a levy on his bank account. Since Santos is out of work, his wife Rose is the only one with any income. As they were already struggling with bills, the bank levy has resulted in thousands in overdraft fees.
Santos first considered debt consolidation. After searching online he found a debt consolidation company in Los Angeles that guaranteed he would be debt free in no time. Debt consolidation is not for everyone, since the amount owed is reduced and payments are made by a 3rd party, this negatively impacts your credit score sometimes to the point where it is seen by creditors as the same as bankruptcy. Therefore you get all of the burden of bankruptcy without the benefit of no longer paying the unsecured debt. In addition, you should be aware that there are many debt consolidation companies that are illegitimate and want to scam you. Unlike bankruptcy attorneys, to become a debt consolidation company there is no requirement for certification or training, which puts few barriers to crooks setting up a debt consolidation company. Even if the debt consolidation went smoothly there may be unforeseen future events that may force you to eventually declare bankruptcy anyway, but only after you’ve spent thousands paying the debt consolidation service fees and unsecured debts that could have been discharged earlier. To compound the problem, any debt that is forgiven by the lender will be considered income on your tax return that you will have to pay taxes on, while in bankruptcy debts discharged are not treated as income.
He then came to his senses and found a bankruptcy attorney in Los Angeles. Their expenses were already exceeding their income so they were eligible for a chapter 7 bankruptcy. Filing for bankruptcy allows you to recover any funds taken from you through bank levies or wage garnishments up to 10 days before filing. Therefore in these situations it is in your best interest to file quickly. Since Santos and Rose filed quickly, they were not only able to discharge there credit card debts and overdraft penalties they could also recover the funds that were taken from their account through the bank levy.
Tags: Assets, bank, bank levy, Bankruptcy, Bankruptcy Attorney, Bankruptcy Attorney In Los Angeles, bankruptcy laws, collection agencies, debt consolidation, debt settlement, discharge, file for bankruptcy, Los Angeles, los angeles bankruptcy attorney, repossessions, unsecured debt, wage garnishments
Posted in California Attorney, Chapter 7 Bankruptcy, Chapter 7 Bankruptcy / Chapter 13 Bankruptcy, Creditors, Law, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer, Uncategorized | No Comments »
July 9, 2010
Chapter 7 Bankruptcy – Case Example
Susan runs a dance studio in Los Angeles but due to the recent economic decline she has had far fewer clients. Susan could no longer afford to pay for her expenses and her credit card bills are piling up. While most of the debt was in the name of her dance studio, which is a corporation, they were personally secured by her. Therefore, if she had the corporation file for bankruptcy she would still be responsible for the debt. Susan has reached her breaking point as there is only 1 week until her house is put up for sale by her lender. Susan found a Bankruptcy attorney in Los Angeles near her studio.
Generally, filing for bankruptcy stops all of your creditors from collecting even before the bankruptcy is granted. Once a bankruptcy petition is filed, any garnishment of wages, levies on bank accounts and lawsuits stop. Even if a bankruptcy is filed 1 minute before the sale of your home and it is sold anyway, the transaction can be reversed and you will continue to own your home. However the best course of action is to avoid this hassle and contact a bankruptcy attorney before this happens.
Creditors take notice once there is a stay and may be more willing to negotiate. This may be helpful on secured debts such as a mortgage but not as much with unsecured debts like credit cards. Negotiating with credit card bills may be a trap for the unprepared, as the reduction in the amount you owe turns into income you must pay taxes on. In addition, you may find that not all of your creditors will be willing to negotiate and you will in the end still file for bankruptcy but only after paying more money to creditors than you would have otherwise.
A chapter 7 bankruptcy allows all of your unsecured debts like credit cards to be discharged. A chapter 13 allows you to keep more of your property (i.e., home in foreclosure, automobile, etc…) and puts the debts on a 3-5 year payment plan based on the amount of excess income after paying expenses, but the amount of unsecured debt cannot exceed 300,000.
Susan’s attorney felt that a chapter 7 bankruptcy was the right choice because although the mortgage on her home in Los Angeles was upside down her unsecured debt was too high for a chapter 13 and her current income did not exceed her expenses. Susan’s attorney helped her through the process of a chapter 7 bankruptcy.
Susan now had a fresh start and was able to keep living in her home and running her dance studio. While many believe bankruptcy eliminates any future ability to get credit Susan was able to get new credit cards shortly after receiving her discharge
Bankruptcy Attorney in Los Angeles | Bankruptcy Attorneys in Los Angeles
Bankruptcy Lawyer in Los Angeles | Bankruptcy Lawyers in Los Angeles
Tags: Bankruptcy, Bankruptcy Attorney, Bankruptcy Attorney In Los Angeles, bankruptcy attorneys, Chapter 13, Chapter 7, Credit Card, Debt, los angeles bankruptcy attorney
Posted in Chapter 7 Bankruptcy / Chapter 13 Bankruptcy, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer, Uncategorized | No Comments »
