Sacramento Bankruptcy & Debt Relief Attorney

Sacramento bankruptcy: Chapter 13 filing facts

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.

It’s a wonderful life (even if your finances aren’t)

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!

Bankruptcy and stolen identity debt

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.

Sacramento bankruptcy: dealing with holiday debt

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!

Sacramento bankruptcy: is written-off credit card debt still collectable?

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.

Bankruptcy filing for fresh financial start for 2016

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.

Sacramento Bankruptcy: 2016 resolution to eliminate debt

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.

Second Mortgage/Home Equity Line of Credit?

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!

Automatic Stay: What is It?

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 Know Who All Your Creditors Are?

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.

Improved Credit

Did you know bankruptcy can improve your credit? It can. Credit scores certainly consider a bankruptcy filing but, even more so, your credit is evaluated by your existing debt. By eliminating your debt through bankruptcy, your credit score can actually improve!