In order for you to sell your property or to refinance, the title to your house must be clean. This means that your creditor hasn’t filed a public record notice called a lien on your property. If a creditor does file a lien with the county records office or with a state agency, this petition indicates to the public that you are behind on your payments. Creditors often file liens on real estate property to encourage debtors to pay the sums of money that they owe.
If you choose to file a bankruptcy petition, you can eliminate the liens on your house or other owned property. Under some bankruptcy petitions, you will be able to eliminate certain kinds of liens on your exempt property without owing your creditor any sums of money. In other cases, you will need to pay a portion of the lien or the current replacement market value of your property in order to successfully remove this petition from your records.
To find out more about removing a lien through bankruptcy, consult Golden State Law Group of San Diego. You can reach our experienced bankruptcy attorneys at (858) 240-2480.
There is a common misconception that bad spending habits and a lavish lifestyle are the main contributing factors toward an individual’s need to file bankruptcy. In reality, many Americans who file for bankruptcy are faced with overwhelming medical bills. These individuals generally experience difficult financial times when a family member suffers a serious, debilitating illness.
Gaps in insurance coverage According to a 2009 American Journal of Medicine study reported by CNN, 78% of surveyed individuals who went bankrupt due to medical expenses had health insurance. Individuals who were covered by health insurance were forced to file bankruptcy because there were gaps in their co-payments or because their insurance didn’t cover the medical services they needed.
Loss of income In many cases, an individual must take time off of work in order to recover from an illness or to treat a family member who is suffering from a sudden illness. Not only can this lead to loss in income or earning capacity, but it can also affect private insurance coverage. Many of those surveyed lost the private insurance coverage offered by their employers after they could no longer work because of the illness.
Out of pocket expenses The 2009 bankruptcy report also found that 62.1% of bankruptcy petitioners were spending approximately 10% of their pretax income on medical bills or else had to mortgage their homes in order to cover the costs. The report found that the average out-of-pocket expenses for a medically bankrupt family were $17,943. For those who lacked medical insurance, the out-of-pocket medical expenses averaged $26,971.
The affordable bankruptcy attorneys at Golden State Law Group of San Diego can help you understand the process of filing for bankruptcy in the state of California. Our firm has a flawless BBB rating and our attorneys have unblemished records. Call (858) 240-2480 to schedule an appointment.
Following the creation of a bankruptcy estate, the United States Trustee Program appoints an individual to oversee the bankruptcy process. This individual is known as the trustee, and he or she is able to manage the bankruptcy estate and make important decisions concerning this legal proceeding. The trustee begins his or her duty by first calculating the value of the bankruptcy estate.
After the trustee determines out how much the bankruptcy estate is worth, he or she will conduct a meeting between the creditors and the debtor. As this video explains, this meeting lets the trustee, debtor, and creditors determine what kinds of debt can be eliminated and which property should be liquefied.
Golden State Law Group offers bankruptcy petitioners affordable legal representation. To learn how our debt relief attorneys can help you with your financial difficulties, call us at (858) 240-2480.
For a growing number of Americans over the age of 65, mounting medical bills and a lack of cost-of-living adjustment for Social Security has led to serious financial problems. As seniors are forced to pay an increasing amount of money to cover their medical expenses on a reduced income, filing for bankruptcy may become their best debt relief option. Luckily for these individuals, there are some important assets and accounts that are unaffected by the bankruptcy process.
Retirement accounts One of the biggest concerns for seniors who are considering filing for bankruptcy is whether filing such a petition will affect their monthly income. The bankruptcy process actually protects any money that petitioners have saved in their retirement accounts up to a value of $1.1 million. Because bankruptcy discharges unsecured debt, it means that seniors who file can still use their retirement savings while gaining relief from credit card debt.
Property you own outright Because credit card debt and medical bills are considered unsecured debt, seniors who file for bankruptcy will either be relieved from paying them or will only be required to pay back a portion of this debt. In many states, there are also homestead exemption laws, which will protect a senior’s home equity up to a set value in that state. This means that seniors who file for bankruptcy can still pass a portion of their estate on to their heirs.
Social Security Similar to retirement accounts, Social Security is unaffected by bankruptcy up to a value of $1.1 million. This means that seniors who file for bankruptcy will still be able to rely on their retirement savings and Social Security income for day-to-day expenses.
If you’re considering filing for bankruptcy, contact Golden State Law Group of San Diego at (858) 240-2480. Because we understand that this is a stressful financial time, our attorneys offer affordable bankruptcy services. We also work with our clients to create manageable payment plans.
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