Law Office of James Keenan
Help when you need it
Personal service since 1995
For those filing bankruptcy in Sacramento, credit card debt is commonly one of the biggest forms of debt eliminated through a bankruptcy discharge. If you have credit card debt you are considering eliminating through a bankruptcy, you are not alone!
Yes. If you are making payments on a car loan and file for bankruptcy you can keep your car. You have to keep making your payments and, if you don’t, you can’t keep your car even if you filed bankruptcy.
The terms of your loan (how much you pay, how long you pay, etc.) are not normally changed just because your file bankruptcy. But know your car finance company cannot take your car if you are making your payments just because your file bankruptcy.
If you need an evening or weekend appointment to meet for a free bankruptcy consultation, that can be arranged. Call me today at (916) 448-6923 to see what your debt relief and bankruptcy options are.
In addition to the information provided in my website, it may be helpful for some considering bankruptcy, as well as those in an active bankruptcy, to access the court’s website. Bankruptcy is part of the federal court system which, for Sacramento, is in the Eastern District of California.
Click here for the court’s website.
Payday loans are the devil! Interest rates for such loans usually exceed 450% and, no, this is not a typo. If the postdated check you wrote for $350 you gave in exchange for the $300 you received is not honored, watch out. It will cost you! Often this results in the need to get another payday loan to cover the last one. Robbing Peter to pay Paul is not the answer.
Bankruptcy can eliminate payday loans. They are normally unsecured debts that can be eliminated in a bankruptcy discharge.
Linked here is an article from the Wall Street Journal illustrating the inequity of payday loans.
As is reflected throughout this site, bankruptcy is often a far better option than living with debt. It is better for your credit, financial standing and peace of mind. This CNBC video may help in your decision whether to file for bankruptcy.
Sacramento bankruptcy filings cover a broad area from the Oregon boarder to Fresno County, from the San Francisco Bay to Lake Tahoe. It’s a big area. Click here for a link to the district map for the Eastern District of California, the court covering Sacramento and the large surrounding area for bankruptcy filings.
All areas of Sacramento county are included within this filing district including, but not limited to, Arden Arcade, Carmichael, North Highlands, Rio Linda, Citrus Heights, Folsom, Orangevale, Rancho Cordova, Elk Grove and Rancho Murieta.
Selecting the best bankruptcy lawyer to overcome your personal debt problems can be complex. Who is the best attorney for you is the question to be asked and answered in the process. Whether you narrow your potential choices through Google, Yahoo, Facebook, Twitter or some other search strategy or referral, whoever you choose must be right for you. And only through personal interaction and communication with a prospective attorney can this be accomplished.
Ask questions, discuss your situation and be comfortable in your choice. The attorney-client connection is a relationship that must be right for you.
No. If a debt is forgiven or otherwise cancelled outside the bankruptcy context, that amount can be considered income on your taxes. Often people receive a 1099 (1099-C) for the amount of debt that is cancelled and must pay taxes on that amount.
Here is what a 1099 looks like for cancellation of debt income:
But if you file bankruptcy, the debt is discharged and, according to the IRS, cannot be considered income.
Declaring bankruptcy is not always complex or confusing, especially with the aid of an attorney. But the process is a bit more in depth than this "The Office" video makes out!
Chapter 13 bankruptcy,in Sacramento and elsewhere, is a form of filing where you propose to repay at least a portion of your debt. All of your debt, though, need not be repaid. Often only a small percentage of your debt is repaid through a Chapter 13 bankruptcy. The rest is discharged, or eliminated. What you pay and what you don’t are fundamental facts in formulating your Chapter 13 repayment plan. Just understand that even if you file for Chapter 13 bankruptcy, you don’t necessarily have to pay all your debt back. See for yourself.
One of the greatest movies ever, It’s a Wonderful Life, drove it’s production company into bankruptcy after the film’s initial financial failure. Frank Capra, the creator of this cinematic classic, rebounded and found future fortune from the timeless tale this movie told.
If you face financial stress, remember that it can be overcome and, as Clarence said, “remember, George: no man is a failure who has friends.”
May your Christmas and holidays be blessed!
Debt in your name is discharged through bankruptcy, even if you may not have charged or approved of the transactions. Often this arises in cases of stolen identity or separated spouses. No matter the cause, bankruptcy will eliminate your debt that came about without your consent.
It is always a good idea to check your credit. Here is a video to help you do that.
Bankruptcy is an option to deal with holiday debt. Often filing bankruptcy is the best alternative. Factors to consider whether bankruptcy is your best option include the amount of debt you owe, what your assets and property are worth and the amount of income you earn.
As always, consultations to consider your bankruptcy options are free. If you are even considering filing bankruptcy, free advice to deal with your debt is always worth the price!
Yes. Credit card debt written off by the bank does not mean the debt is done. Credit card debt that is written off is a way the credit card company can remove the debt they are owed as an asset from their books. It doesn’t mean you no longer owe that debt. You do.
Typically debt that credit card companies write off is then sold to collection companies at a fraction of the dollar amount owed. That collection company can then collect that debt from you. Collection companies are often more aggressive in their efforts to collect the debt than the originating credit card company you initially owed the debt. They are not lenders, they are collectors.
Even if you avoid collection efforts from collection companies, the credit card company that wrote off the debt can still do you damage. As discussed in earlier posts, the debt credit card companies write off can be considered forgiven. Though forgiven debt can still be collected upon by another company or collector, the credit card company can send you a 1099 for the forgiven debt they wrote off. This means you must pay taxes on the amount of that forgiven debt.
Bankruptcy is a cleaner fix. Debt that is discharged in a bankruptcy is eliminated forever. No one else can collect on that debt and the amount discharged is not considered income for tax purposes.
Get a fresh financial start for the upcoming new year! Bankruptcy can be a valuable tool to eliminate your debt. Learn more by scheduling a free consultation. Here are some bankruptcy basics courtesy of the federal court system.
If your new year’s resolution for 2016 is to eliminate your debt, bankruptcy may be the answer. Credit card debt, lines of credit, medical bills, car repossessions, mortgages and income taxes are all forms of debt that can be eliminated through a bankruptcy filing.
Learn more by scheduling a free consultation today.
Did you know that bankruptcy may allow you to eliminate your second mortgage (also known as a home equity line of credit)? If your home is worth less than what you owe on your first mortgage, a Chapter 13 bankruptcy filing can “strip” the second mortgage, meaning the loan will be discharged and the debt eliminated!
An “automatic stay” is legalese for the barrier between you and your creditors when you file for bankruptcy. It is the protective shield that prevents your creditors from collecting from you after you file for bankruptcy. Phone calls, letters, lawsuits, garnishments, levies and foreclosures are all barred once the automatic stay goes into effect upon the filing of a bankruptcy. Powerful legal tool!
Don’t worry! Bankruptcy covers all debt accumulated before a bankruptcy is filed. Though you must list all the creditors you know, debts or creditors you aren’t aware of when you file bankruptcy are still considered part of your bankruptcy and discharge as long as the debt arose before you filed bankruptcy. Often creditors sell their debt to collection companies and they, in turn, sell it to other collection companies, and so on, and so on . . . Soon you don’t know who’s out there trying to come after you. Just know that XYZ Collecton Co., who bought your debt from ABC Collection Co., can’t try to collect from you because you failed to list them as a creditor in your bankruptcy case since you never knew they even existed.