Credit Cards after bankruptcy:

Credit cards are available to the recently bankrupt. They may be more expensive than before, and available with lower limits, but it will be offered. I suggest obtaining a secured credit card and using it cautiously to rebuild your credit.

Buying a house after filing bankruptcy:

Studies show that 18-24 months after a bankruptcy discharge, many bankruptcy debtors can qualify for a loan on the same terms as if they had not filed bankruptcy. The lender will likely be much more interested in your down payment, the stability of your income, and the relationship between the loan payments and your monthly income than your past financial troubles.

Is your credit record ruined by filing bankruptcy?

The circumstances that lead you to file bankruptcy are likely just as harmful to your credit record as your bankruptcy filing. In fact, bankruptcy will improve your debt to income ratio, which can be helpful in obtaining credit in the future.

Contact Sacramento Bankruptcy Attorney Tonya J. Hernandez to determine the best solution to your debt problems today at 916-923-2800 or Thernandez@bowmanandassoc.com.

From our second full-service office location in Folsom we help clients across Northern California with legal cases involving Employment Law, Family Law, Bankruptcy, Personal Injury, Criminal Defense and more. Come visit us!

• Can you really afford the mortgage payments? Your mortgage payments should total about 25 to 30% of your income.
• Is your interest rate scheduled to adjust? It may be that you can afford your payments now but maybe not once your payments adjust.
• Do you have negative equity in your home? If you owe $300,000.00, but your home is only worth $150,000 now, you have negative equity. You are essentially renting your home as you are not building equity, and it may be a good idea to let the home go.
• Is this where you want to live for the indefinite future? If not, perhaps you should use your financial problems to reevaluate where you want to live. Take advantage of the fresh start that can be offered by bankruptcy.

A too-big house payment can, at the very least, leave you with too little money for other goals: retirement, vacations, college funds for the kids.  Bankruptcy might help you save your home, but it can also give you a fresh start if you your mortgage payments are just too large.

Contact Sacramento Bankruptcy Attorney Tonya J. Hernandez to determine the best solution to your debt problems today at 916-923-2800 or Thernandez@bowmanandassoc.com.

Undoubtedly, this will be devastating financially to those employees affected. Bankruptcy may be the answer. Bankruptcy can wipe out your credit card debts, giving you more room in your budget to pay the mortgage and car payments.

Contact Sacramento Bankruptcy Attorney Tonya J. Hernandez to determine the best solution to your debt problems today at 916-923-2800 or Thernandez@bowmanandassoc.com.

Contact Sacramento Bankruptcy Attorney Tonya J. Hernandez to determine the best solution to your debt problems today at 916-923-2800 or Thernandez@bowmanandassoc.com.

Back in October, Giudice and her husband, Joe, filed for Chapter 7 with the U.S. Bankruptcy Court in Newark, N.J., People reports.

According to the documents, the two owe nearly $11 million to creditors against their annual household income of $79,000, due to unpaid mortgages, hefty credit card bills and renovation obligations.

“While this is a personal matter, I realize that certain aspects of my private life will always be subject to scrutiny and distortion,” Giudice told the magazine in a statement.

“What is true is that due to the economy, most of my husband’s real estate ventures failed despite his hard work and effort. As a result, we looked to the Bankruptcy Court for a ‘fresh start.’”

The free-spending mother of four is often filmed showering her daughters with lavish shopping sprees and parties, and was once shown holding a stack of cash while furnishing her $1.7 million mansion in Towaca, N.J.

The Sacramento Bankruptcy Attorneys of Bowman & Associates have helped clients across California. If you or someone you know has legal questions regarding Chapter 7, contact our experienced Sacramento Bankruptcy Law Firm today for your free consultation.

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ADVANTAGES

Chapter 13 has a variety of advantages over other bankruptcy schema, such as the liquidation offered by a chapter 7 bankruptcy. Most notably, debtors filing a Chapter 13 bankruptcy are able to avoid foreclosure and keep their homes. In addition, chapter 13 allows the qualified debtor to reschedule his secured debts (meaning those backed by collateral.) In addition, debtors under Chapter 13 do not have to interact directly with creditors; instead, a trustee is appointed to that purpose.

ELIGIBILITY

Individuals, even if self-employed, are eligible for Chapter 13 bankruptcy so long as their unsecured debts are less than $360,475 and secured debts are less than approximately $1.08 million. These amounts are based on the consumer price index and are adjusted accordingly.

FILING A CHAPTER 13 BANKRUPTCY

Filing a Chapter 13 bankruptcy begins with the debtor paying a variety of fees and submitting an array of documents to the bankruptcy court; documents required include the following:

• List of assets and liabilities (including property);
• Income statement;
• Statement of financial affairs;
• List of any leases, contracts, or obligations held;
• Certificate of credit counseling;
• Debt repayment plan developed through the credit counseling agency;
• Evidence of monthly income;
• Proof of any expected increases in income;
• Most recent tax return;
• List of any interest the debtor has in federal or state education loans;
• A list of all creditors, including the amount and nature of their claims; and
• A detailed list of the debtor’s monthly expenses

WHAT HAPPENS NEXT

Immediately upon the filing of a Chapter 13 bankruptcy, the debtor is appointed a trustee. This trustee is responsible for the administration of the case. He evaluates the case and is charged with collecting payments from the debtor and disbursing them to his creditors. In this way, a Chapter 13 bankruptcy is very similar to a debt consolidation loan; at no point does the debtor have contact with his creditors. Further, the filing of the Chapter 13 bankruptcy immediately stays any collection action from a creditor.

The Sacramento Bankruptcy Attorneys of Bowman & Associates help clients across Northern California. If you or someone you know has legal questions, contact our experienced California Bankruptcy Law Firm today for your free initial consultation.

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I have seen many clients who have fallen victim to unscrupulous debt settlement companies. One couple that I met had diligently paid a debt settlement company for over a year. The company had promised to consolidate their $80,000.00 debt into smaller monthly payments. They were in shock when they discovered that they were being sued by several creditors and that the debt settlement company had made off with their money. I filed a personal bankruptcy to them to get them out of the horrible predicament that the debt settlement company had left them in.

If you are looking to settle your debt, feel confident knowing that the Northern California Debt Settlement Attorneys at Bowman and Associates are members in good standing with the State Bar of California. We can also advise you as to whether a bankruptcy may be the best option for you. Contact Sacramento Bankruptcy Attorney Tonya J. Hernandez to determine the best solution to your debt problems today at 916-923-2800 or Thernandez@bowmanandassoc.com.

1 – What They Accomplish

These 2 types of bankruptcies will allow you to accomplish 2 different things. With Chapter 7, you will be able to eliminate much of the debt that you have completely. This is like wiping your slate clean and starting over. With Chapter 13, you are going through a reorganization and coming up with a repayment plan for your creditors.

2 – Property You Get to Keep

With Chapter 7, a bankruptcy trustee can take part of your property to liquidate for your creditors. With Chapter 13, you get to keep all of your property and repay your creditors with your income. With Chapter 7, you will typically be able to keep the equity in your house, retirement benefits, your car, and other personal property.

3 – Qualifications

Each type of bankruptcy has its own qualifications. For Chapter 13, you have to have less than $1,010,650 of secured debt and less than $336,900 in unsecured debt. With Chapter 7, you have to make less money than the median income in your state or you have to have a less than a certain amount of discretionary income according to the courts.

The Sacramento Bankruptcy Attorneys of Bowman & Associates help clients across Northern California. If you or someone you know has legal questions, contact our experienced Sacramento Bankruptcy Law Firm for your free initial consultation.

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Last Resort

Filing for personal bankruptcy should be a decision of the last resort, something you do only after you exhausted all of your other options. Those options include negotiating with your creditors, completing debt counseling and restructuring your debt. Still, after doing what you can on your part, you may have no choice: file for bankruptcy and reap the consequences of having your credit trashed.

Personal bankruptcy will stay on your credit record for ten years. You may be able to buy another home, a car or receive other credit well before that time, but there is a certain stigma associated with bankruptcy you need to be aware of.

Bankruptcy Code

In 2005, the US Bankruptcy Code was as per the Bankruptcy Abuse Prevention and Consumer Protection Act, an amendment to the code credited with tightening bankruptcy filing rules. Prior to that time it was easier for consumers to file for personal bankruptcy and walk away from their debt. The act requires consumers to receive counseling and take other measures before a judge rules on their case.

Of utmost importance is having legal representation as you work on your bankruptcy filing. Your attorney should be well versed in bankruptcy law, have handled many cases in the past (get references) and is able to answer your questions and outline a course of action for you. The National Association of Consumer Bankruptcy Attorneys at nacba.org is one place to visit to search for personal bankruptcy attorneys in your area.

Which Chapter?

When meeting with your attorney, you’ll discuss two options: Chapter 7 bankruptcy, which liquidates your assets or Chapter 13 bankruptcy, which is a repayment plan. Your attorney will help you with a means test which will determine if you can go the Chapter 7 route or whether you’ll have to file under Chapter 13.

Find out from your attorney how much he charges for his service. Some will want a flat fee while others may charge by the hour or based on your outstanding debt. Your attorney will advise you on how to handle creditors and when you’ll meet with them per bankruptcy code requirements and discuss every step to be taken including when your debts are discharged.

Keep in mind that not all debts are removed when filing bankruptcy including certain tax payments and student loan debt.

The Sacramento Bankruptcy Attorneys of Bowman & Associates help clients across Northern California. If you or someone you know has legal questions, contact our skilled Sacramento Bankruptcy Law Firm for your free initial consultation.

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