Last updated 2 months ago
If you are struggling with the decision to file for bankruptcy, you are not alone. The attorneys of Golden State Law Group are dedicated to helping our clients successfully move past the stress and despair that financial difficulties cause. For many people, declaring Chapter 7 or Chapter 13 bankruptcy may be the best legal remedy. Read through these common misperceptions about bankruptcy to find out if you may be a good candidate.
Myth 1: I won’t qualify for bankruptcy. False. Anyone can qualify for bankruptcy, but only an experienced bankruptcy lawyer can help you determine whether your best option is a Chapter 7 or Chapter 13 filing. While a Chapter 7 is simpler, quicker, and allows you to discharge all debts, a Chapter 13 may be in your best interest if you have a reliable stream of income.
Myth 2: It’s impossible to succeed after bankruptcy. False. Did you know that Abraham Lincoln, Walt Disney, and Henry Ford all declared bankruptcy? Successful CEOs, bankers, and presidents have successfully recovered from their overwhelming financial situations. Remember, bankruptcy was designed by policymakers as a legal solution for debtors who need a fresh start.
Myth 3: I will never recover my credit. False. After your bankruptcy, creditors will evaluate your financial history based upon your behavior after your filing. While a bankruptcy may stay on your credit report for up to 10 years, many people recover their credit within only two years.
Myth 4: Creditors will still harass me. False. After you file for bankruptcy, your creditors are legally obligated to speak to your bankruptcy lawyer. If you continue to receive letters or phone calls, simply forward them to your attorney.
Do you need an affordable bankruptcy attorney who offers reasonable payment plans? The bankruptcy lawyers at the Golden State Law Group of San Diego has helped thousands of California clients successfully find their way out of debt. Our attorneys have unblemished records, and our flawless BBB rating speaks for itself. Call (619) 234-3333 today to find out what makes us different.
Last updated 2 months ago
If you have unpaid tax debt, your first instinct may be to simply hide from your government creditors. Unfortunately, the IRS and most state taxing authorities have overwhelming legal power, and you will eventually be held accountable for both your debt and a wide range of penalties. Contact a lawyer to help you negotiate your debts to a reasonable level, and review some of the adverse effects of maintaining unpaid tax debt:
Penalties If you owe the government money for unpaid taxes, you are in good company. Millions of Americans, including federal employees, have unpaid tax debt. Whether you owe money to the IRS because you inadvertently claimed too many exemptions on your employee withholding form, failed to file a tax return, or intentionally under-reported your income, consumers face stiff penalties for unpaid tax debt. While the formal penalty is 0.5% of the tax owed for each month, you are also responsible for an interest rate of about four percent each year.
Threatening Letters Once the IRS realizes that you owe taxes, they will initiate the government’s automated collection system and will send various threatening notices. At this stage, you will most likely receive several written letters advising you of the initial amount owed and apprising you of all penalties and interest as they are assessed. If you have not responded after several months, the IRS can place a tax levy on your account and seize your property.
Wage Garnishment Depending on your situation, the IRS may implement various forms of levies, but the most common is wage garnishment. The IRS will contact your employer to demand that he take out a portion of each paycheck and remit payment to the IRS on your behalf. The IRS may also seize your home or car and freeze your bank accounts.
The bankruptcy lawyers at Golden State Law Group of San Diego know that financial difficulties can seem overwhelming. If you are struggling to pay your tax debt, call an attorney today at (619) 234-3333 to stop wage garnishments and threatening letters immediately.
Last updated 3 months ago
Dealing with debt and see no way out? The bankruptcy attorneys at Golden State Law Group can help. Visit these websites to learn more.
This New York Times article follows several individuals who have been fighting an uphill battle to prove that they pass the undue hardship test.
Visit the Federal Student Aid site to learn more about federal student loan forgiveness, cancellation, and discharge.
This PDF details the local rules of the United States Bankruptcy Court for the Southern District of California.
The Federal Trade Commission provides information for consumers trying to cope with debt.
For further information, visit our website or call us at (619) 234-3333.
Last updated 3 months ago
If you are facing mounting debt, you are likely considering debt settlement or bankruptcy. Though these options may be ideal for you to get a fresh financial start, you should visit the following sites and consult with a debt relief attorney before making any decisions.
To learn more about the types of bankruptcy filings available, visit the federal courts website.
Debt settlement is a good option for some people, but is not right for everyone. This MSN article discusses when debt settlement makes sense.
Student loans are not impossible to discharge, but the debtor must prove that it would be an undue hardship to repay the debt.
In 2005, the bankruptcy law was amended to make it more difficult to discharge private student loans. Sallie Mae is one of the lenders that was affected, and addresses how bankruptcy treats student loans in this article.
For further information on debt negotiation and bankruptcy, call us at Golden State Law Group at (619) 234-3333.
Last updated 3 months ago
Many individuals see bankruptcy as the last resort when they are facing insurmountable debt. Unfortunately, many of those who are in dire financial straits are unable to file for bankruptcy. Continue reading to learn more about common reasons why consumers are unable to declare bankruptcy and possible alternatives for these individuals:
Too Much or Too Little Income If you file for Chapter 7 or Chapter 13 bankruptcy, your income will come under scrutiny. To file for Chapter 7, you must satisfy a “means test,” which means your income must be less than the median California income. To file for Chapter 13 bankruptcy, you must have sufficient income to make regular payments to your creditors as part of a court-approved repayment plan.
Too Much or Too Little Debt If you have too much or too little debt, you will be ineligible to file for Chapter 13 bankruptcy. You cannot have secured debts of more than $1,081,400, and your unsecured debts must be less than $360,475.
Recent Dismissal You cannot file for Chapter 7 bankruptcy if you have had a bankruptcy case dismissed within the previous 180 days. Common reasons for dismissal include violating a court order, requesting a dismissal after a creditor seeks relief from the automatic stay, and bankruptcy fraud.
Previous Discharge You are ineligible to file for Chapter 7 bankruptcy if you have had your debts discharged under Chapter 7 in the last eight years or under Chapter 13 within the last six. This is to prevent individuals from abusing the bankruptcy laws.
Available Options If you are ineligible to file for bankruptcy, debt negotiation may be your best option. Debt negotiation can allow you to settle your interest, late fees, and balance for a portion of what you owe.
The bankruptcy and debt relief attorneys at the Golden State Law Group can help you explore all of your available options and decide what is best for your situation. For honest and affordable services, call our San Diego office at (619) 234-3333.