San Francisco Bankruptcy Attorney Blog

A San Francisco bankruptcy attorney discuss foreclosure...

What is foreclosure?
A foreclosure happens when the lender retakes possession of the home, which was the collateral for the mortgage. Generally this occurs when the borrower has defaulted on the loan and is unable to work out an agreement with the lender. To protect its interest, the lender will retake the home and try to sell it to cover the outstanding balance.

Can I stop a foreclosure?
There are several ways to stop a foreclosure. One is to pay the default amount – generally equal to the number of missed payments plus some late fees. Some lenders will not accept the default amount and require the entire loan balance due in order to remain in the home. If paying off those balances is not a viable option, declaring bankruptcy can prevent a foreclosure. When an individual files for bankruptcy an automatic stay goes into effect, preventing the sale of a home or the bank taking repossession of the home.

Can I remain the home after it has been foreclosed?
That generally depends on what the lenders plans are and whether it was sold at the trustee sale. It is often possible to prolong the amount of time you can remain in a home after defaulting on your mortgage but it is difficult if the bank gets the Sheriff involved. Going through an unlawful detainer process is not simple and can make finding a new place to live difficult.

What if I cannot afford my home but don’t want a foreclosure?
You should ask you lender if they do a “cash for keys” exchange. That is basically just letting the lender know you cannot afford to remain in the home but want to leave without any issues. If you surrender your keys to the lender they will often pay you to help cover certain moving expenses. This is done to protect the lenders interest in the property.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney on: What is chapter 13 bankruptcy?

Who can file for chapter 13? Chapter 13 bankruptcy is a type of bankruptcy where some or all of an individuals outstanding debts are repaid over the course of three to five years. Most people choose chapter 13 if they either make more than is allowed under chapter 7 or want to repay arrears on secured property. Chapter 13 also allows debtors to repay taxes and other debts owed to government agencies.

How is chapter 13 different than chapter 7? Chapter 7 bankruptcy is known as liquidation bankruptcy, where all of the debtors property they are not able to exempt is sold and repaid to creditors. The entire process is about three months and the debtor does not develop any type of repayment plan. Chapter 13 is different in the sense that the debtor can generally keep all of their property and instead uses income or other constant source of money to repay creditors. A monthly payment is made each month and at the end of the plan the debtor receives a discharge.

Why would someone want to file under chapter 13? Chapter 13s are beneficial to those who owe a lot of tax debt or are behind on their secured mortgage payments and just need time to catch up. An ideal chapter 13 debtor is someone with a constant income who will be able to not only make the regular monthly payments on their secured property, but also a little bit more to account for the past due amount and administrative fees associated with chapter 13 administration. It is generally not suggested that someone file chapter 13 if they cannot keep current on their secured property and afford to pay the administration costs.

Are unsecured creditors repaid in chapter 13? It depends. Often debtors make too much money to file under chapter 7 and so there is repayment to unsecured creditors over the course of the plan. Most chapter 13 cases result in only a percentage repayment, although some individuals make enough to fully repay all debts. Chapter 13 can still be a good option even if there is 100 percent repayment because the interest rates are lower and the debts are paid off in five years.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses: What happens at the meeting of creditors?

What is the meeting of creditors?
Section 341 of the Bankruptcy Code allows for the individual filing for bankruptcy to be asked questions by the trustee and creditors. The meeting gives interested parties an opportunity to question the debtor about the circumstances that led to the filing of bankruptcy and any specific questions related to outstanding balances the debtor is seeking to have discharged.

Is my appearance necessary? Yes. It is required that the debtor appear at the 341 hearing and be examined by the trustee and any creditors. Although it is possible to have the meeting postponed, it needs to be conducted in order for a debtor to receive a discharge.

How long is the meeting?
For most debtors the trustee only asks a few questions relating to the information contained in the petition. Creditors rarely show up so most debtors will not have to worry about being confronted and questioned about certain debts. In chapter 13 cases the trustee will inquire as to whether the planned monthly payments are going to pose a hardship.

What happens when the meeting is concluded?After the trustee has completed the examination they will file a report with the court indicating what happened. In a chapter 7 case, if there are no assets available to sell, the trustee enters a no asset report. In chapter 13 cases the trustee will conclude the meeting and make a determination as to whether to recommend the chapter 13 plan for confirmation or if more work is needed in order to develop a feasible plan.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney responds to: What Can A Loan Modification Do For Me?

Loan modifications are changes to the contractual terms of your mortgage. Generally the changes result in either some of the outstanding balance being reduced or a reducing in your monthly payments. Whatever the change, loan modifications are designed to help those who otherwise are having a difficult time meeting their monthly mortgage obligation.

There are some drawbacks associated with the loan modification process. Generally lenders will not modify the terms of an existing agreement unless the borrower can show the mortgage is causing a hardship for the household. The most common “requirement” is that the borrower not be current on their mortgage payments. Those who are current and up to date with the payments have a much more difficult time modifying the terms of the agreement.

Lenders will typically set up a borrower on a trial period in order to test how the new monthly payments will work. If the borrower successfully makes it through the trial period the lender may choose to make the modified terms permanent. Often this includes building whatever arrears have accumulated back into the payment terms.

Advantages of obtaining a loan modification mean that you often are no longer considered in default with your mortgage because any default amount is built back into the new payments. This can potentially help those who would otherwise need to file a chapter 13 bankruptcy in order to save their home. A loan modification will generally allow those thinking of bankruptcy to proceed under chapter 7 to discharge debts instead of working out a repayment plan with respect to mortgages.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorneydiscusses bankruptcy and foreclosure...

Filing a bankruptcy petition prior to the sale of a foreclosed home stops the foreclosure process. Bankruptcy and foreclosure are closely related in the sense many individuals look to bankruptcy to help discharge debts and stop adverse actions against them. When the bankruptcy petition is filed a stay automatically goes into effect.

The stay prevents lawsuits, garnishments, and other actions from being filed against debtors while under the protection of the bankruptcy court. The automatic stay is an important tool for individuals who want to stop a foreclosure. The stay not only allows individuals to remain in their homes during bankruptcy but also allows them to rearrange their finances in order to work out a feasible repayment plan.

Lenders, however, can petition the court to have the stay lifted as applied to them. The stay is generally lifted if the individual communicates to the bank that there is no intention to remain in the property or that the property is to be surrendered during or after the bankruptcy. The bank often wants to retake possession of the home in order to protect its interest in the property.

The automatic stay goes into effect regardless of what chapter bankruptcy is filed. It is important for those filing for bankruptcy to understand that it is still possible to lose property when the bankruptcy petition is filed. As mentioned above, creditors will often ask the court to lift the stay if the property is not essential to the debtors reorganization or if payments are not made after the petition is filed.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney speaks on Bankruptcy and Credit Card Debt

Those pondering whether to file bankruptcy generally want to know what happens to credit card debt if bankruptcy is filed and upon discharge of a successful bankruptcy petition. Credit card debt is unsecured, meaning there is no collateral or other asset securing the loan amount. Depending on the type of bankruptcy filed, one of several things can happen – the entire debt is discharged, partial repayment is made, or full repayment is made but at 0% interest.

In chapter 7 bankruptcy, the unsecured credit card debt is eliminated upon discharge. The trustee overseeing the chapter 7 bankruptcy will collect all nonexempt assets, if available, to sell on behalf of the creditors. Whatever money is collected, less the trustee fee, is distributed to the unsecured creditors. A majority of the chapter 7 cases filed are no-asset cases, meaning nothing is sold by the trustee and unsecured creditors receive no repayment.

In a chapter 13 bankruptcy case, the amount the creditors are repaid generally depends on the financial situation of the debtor. Often a chapter 13 case is filed in order to allow a debtor to catch up on missed mortgage or car payments and there is not enough leftover income to repay any unsecured debt. At the end of the repayment plan the unsecured debt is discharged.

Post-discharge can be a difficult time for many debtors when it comes to trying to obtain credit. There are several steps that can be taken in order to boost credit scores and have a more positive credit history. The easiest thing to do is obtain a secured credit card. Although you pay the balance ahead of time, the secured credit card does help establish your post-discharge credit history and will help increase your credit score. It also demonstrates to lenders that you are financially responsible and a good candidate for loans and other types of credit.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 or (1800) 941-6730 for a free consultation or visit www.sagarialaw.com and request a free face to face appointment in a Sagaria Law office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Client Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses: Can My Business File Bankruptcy?

Can a business file bankruptcy?

Yes. The bankruptcy code provides relief not just for individuals and couples but also for businesses. Business can file under either chapter 7 or chapter 11, depending on what the goals of the business are. Filing under chapter 7 generally means that the business wants to liquidate whatever assets it has and close its doors, while filing under chapter 11 allows the business to remain open and continue its operations.

Which chapter is better?

That generally depends on what the goals of the business are. Often individuals who own businesses want to cease operations and have bankruptcy end all outstanding obligations. In that case a chapter 7 filing would be best suited to achieve those goals. It is important to understand that sometimes a personal bankruptcy is needed in order to extinguish all liability, as many smaller business loans and lines of credit are personally guaranteed and the only way to completely remove all obligation to pay is to file personally and include all business debts. If the business would like to remain open and simply reorganize its economic structure, then a chapter 11 filing is better tailored to meet those goals.

Does a business filing under chapter 7 receive a discharge?
No. A business does not receive a discharge in bankruptcy. Instead, its debts are written off and the business ceases doing business in the state. If the debts are not personally tied to anyone then the outstanding loans die with the business.

What about sole proprietorships?

A sole proprietorship is essentially an extension of the individual who started the business, therefore making all debts of the business debts of the individual. In those cases it is best for the individual to file a personal bankruptcy in order to be relieved of any obligation to pay the debts.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney on Bankruptcy Fraud

Lying on your bankruptcy petition or incurring debt with the intention of filing bankruptcy can often lead to certain debts being excepted from discharge. While this is not a concern for most people who file for bankruptcy, bankruptcy fraud is actively investigated by the F.B.I. so it is important to be completely honest when submitting information to your bankruptcy attorney and to ensure that the information contained in your petition is true and accurate.

Filing for bankruptcy and not disclosing significant assets can lead to the trustee (as well as creditors) objecting to the discharge of all debts listed in your petition. The purpose of your bankruptcy petition is not only to give notice to all of your creditors, but is also to represent an accurate portrayal of your financial situation (by way of real and personal property that you own).

Aside from omitting assets, other behavior can also inhibit obtaining a discharge. Transferring funds to a friend or relative can also lead to the trustee avoiding those transactions and asking for the money back. In addition, transferring title of property out of your name is generally not allowed. There are, however, certain transfers that are acceptable. For example, putting money into your retirement account or prepaying a mortgage obligation are acceptable ways of preparing for bankruptcy.

The most important thing for debtors to remember is that the more honest you are about your assets and financial situation, the more problem free the bankruptcy process will be.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney comments on Involuntary Bankruptcy and Credit Counseling

When the bankruptcy code was amended in 2005 one of the new provisions added by Congress was the requirement that all those planning on filing bankruptcy had to first complete a certified credit counseling course. This pre-filing requirement is mandatory for those who wish to file for bankruptcy. There is a question of whether involuntary proceedings against a debtor require the same compliance with the law.

Several courts have addressed the issue of involuntary bankruptcy and credit counseling completion. It would be rather difficult to comply with the requirement that the course be taken 180 days prior to filing when the petition is an involuntary one, because the debtor is not filing the petition; it is a creditor instead. It seems to be the consensus that the requirements do not apply to those debtors who are involuntary brought into bankruptcy.

Involuntary bankruptcy and credit counseling requirements would frustrate the purpose behind the credit counseling purpose initially sought when Congress made the changes. The purpose behind the credit counseling requirement is to allow the debtor to make an informed choice about whether to file. In an involuntary proceeding, the debtor is not making a voluntary choice and therefore requiring the course prior to the filing of an involuntary petition would not be in line with the goals Congress had in mind when the code was amended.

Therefore, creative debtors in an involuntary action cannot dismiss the bankruptcy for failure to comply with the credit counseling requirement. Involuntary bankruptcy actions are not subject to the credit counseling requirements.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney provides an Overview of Bankruptcy Exit Plans

Overview of Bankruptcy Exit Plans

The goal of bankruptcy is to allow the person (or business) filing to either discharge as much debt as possible or restructure the debt to allow for either partial or full repayment. This bankruptcy exit plan is important, regardless of which chapter the petition is filed under.

In chapter 7 the bankruptcy exit plan is simply to discharge as much debt as possible and emerge only with what property you intend to keep. The bankruptcy exit plan is usually to discharge credit card debt and obligations on personal loans, while continuing to make payments on secured debt (usually on a house or car).

In chapter 13, the bankruptcy exit plan is usually to allow time for the debtor to catch up on mortgage arrears and other missed payments on secured debts. Generally there is little to no payout to unsecured creditors. However, it is often advantageous to file under chapter 13 even if the repayment to unsecured creditors will be in full because there is a very low interest rate and the plan is only for five years.

A chapter 13 bankruptcy exit plan can also allow for past due taxes and domestic support obligations to be paid through the plan. This allows debtors to not have to worry about those debts surviving chapter 7 and allow them to structure their expenses accordingly.

Whatever the bankruptcy exit plan, it is important to first understand what type of debt you want discharged and what your intentions are with the secured property you hold.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney explains the bankruptcy questions:

What is a loan modification?

A loan modification is an agreement which changes the terms of an existing contract. Loan modifications are common with home mortgage agreements and generally are sought when the borrow is unable to keep up with the normal monthly mortgage payments. A loan modification allows the borrow to obtain a lower monthly payment – generally by having the lender either adjust the interest rate or extend the term of the loan. This modification will usually allow arrears to be eliminated and built back into the terms of the new loan.

How can a chapter 11 loan modification do for my plan?

In chapter 11 bankruptcy, the debtor generally wants to restructure their finances in order to keep their property from being foreclosed and repay at least some of their financial obligations. Obtaining a chapter 11 loan modification is often beneficial because it allows the debtor to make lesser payments and agree upon more favorable terms with respect to the mortgage repayment.

What if I do not receive a loan modification?

If you do not receive a chapter 11 loan modification you can still try to restructure your financial obligations in order to remain under chapter 11 protection. However, if you based success of your plan on a loan modification then a determination will need to be made as to whether it is advisable to remain in chapter 11 or whether it is better to convert to another chapter. While a chapter 11 loan modification is helpful in relieving some financial stress that is often associated with mortgage payments, it is possible to develop other repayment strategies in order to come up with a successful plan.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankrutpcy attorney blogs on Who Can Exit Bankruptcy?

What does bankruptcy do?

Most people file in order to obtain a discharge of all debts that they owe to creditors. The discharge is what allows you to move forward and not have to repay any creditor for previous balances and other financial obligations. That is the main goal when people want to exit bankruptcy.

Who can receive a discharge?

All individuals and couples who file for bankruptcy will receive a discharge and exit bankruptcy not owing anything, assuming that there is nothing fraudulent about the filing or the case is not dismissed prior to obtaining a discharge. There are also certain debts that are not automatically discharged, such as student loans and domestic support obligations. In addition, some people file simply to catch up on past due mortgage and have no other debt that they wish to have discharged, so they will exit bankruptcy without receiving a discharge.

How long does the process take?

That depends on what chapter bankruptcy you file. If you file under chapter 7, the process generally takes about 90 days, depending on whether there are any creditor objections or if any creditor disputes the discharge of a debt. Under chapter 13 it takes between 3-5 years to exit bankruptcy with a discharge, depending on the length of the repayment plant.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney on Bankruptcy, Creditors, and Debt

One reason why people turn to bankruptcy to ease financial difficulties is because bankruptcy deals with creditors and debt effectively. Unlike debt consolidation or debt settlement, which is not guaranteed to get rid of any debt, bankruptcy provides for methods of either completely discharging all debts or restructuring finances in order to allow for more effective repayment.

When looking at creditors and debt it is important to determine what kind of debt you have and what your plan is with your property – mainly your home or car. Certain debts, such as tax debts, are more difficult to discharge. However, repayment options are available which limit the amount of penalties and interest assessed. With respect to your secured debt, if you want to keep it, make sure you are current on the payments (if doing a chapter 7) or are able to become current while also repaying the arrears (under a chapter 13).

When it comes to unsecured debt, bankruptcy provides relief in the sense that all chapter 7s and most chapter 13s provide for debt discharge. And even those who earn enough to repay all of their unsecured debt under a chapter 13 will do so without having to pay any interest rates. When a discharge is obtained, you are no longer responsible for any unpaid amount and creditors cannot harass you for repayment.

Whatever type of debt you have, and whatever your financial situation, pursuing bankruptcy might provide you with the best option in order to emerge from your current obligations in good shape and not be continually stressed with minimum monthly payments or threats of foreclosure.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney comments on Creditor Harassment and Bankruptcy

Almost everyone who is behind on credit card payments knows how annoying the calls from creditors demanding payments can be. However, not everyone knows that it is possible to make these calls stop, and in certain circumstances, actually sue the creditor for violating the law if the contact continues. Creditor harassment is annoying and difficult to deal with. The following tips will help an individual deal with harassing creditors and hopefully find some peace and quiet, especially during the stressful time prior to filing bankruptcy.

If you have retained a bankruptcy attorney but have not yet filed a petition, it is possible to stop creditor harassment. Creditor harassment and bankruptcy are common in the sense that creditors want to know when they will be paid while the individual is preparing for bankruptcy and has likely stopped all card payments. It is important to inform the creditors that you have retained an attorney and they are no longer allowed to contact you.

It is important to realize, however, that simply informing a creditor that you have retained an attorney will not put a stop to the debt collection effort, as the creditor can file a lawsuit against you in court to try and collect the outstanding debt. When dealing with creditor harassment and bankruptcy options, it is important to monitor any civil suits against you in order to make sure no judgments are entered.

If creditors are still harassing you after you inform them you have retained an attorney it is important to let your attorney know so the appropriate steps can be taken to penalize the creditor. If the creditor harassment continues even after you have filed your bankruptcy petition, it is also advised that you inform the trustee assigned to your case, as they too can use certain methods to ensure contacts stops.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy lawyer discusses the difficulty of bankruptcy law

Where is the bankruptcy code found?
The Bankruptcy Code is Federal law and is found in title 11 of the United States code. Within the title are all the various chapters of bankruptcy in addition to the general provisions and definitions governing application of the code.

Is bankruptcy law complicated? Generally, yes. While it varies chapter by chapter, an individual or businesses filing for bankruptcy will need to know the proper procedure for submitting a petition to the court and how to list and notice all potential creditors. In addition, individuals must know the proper section of the code to cite with respect to exempting personal property, otherwise there is a risk such property could be sold.

Aside from exempting property, what else is complicated?
While it varies case by case, bankruptcy law is complicated in the sense that there are various motions that must be filed with the court in order to either have something done or prevent something from being done. In addition, creditors often file motions with the court in order to have the automatic stay lifted. Knowledge of those laws and procedures is necessary in order to defend against such motions.

Can I represent myself in filing bankruptcy?Yes. There is no requirement that you must be represented by a lawyer, however, most individuals are not aware of all the various aspects of bankruptcy law. In addition, a failure to property list assets and debts may result in certain debts not being discharged. In a chapter 13 repayment plan there is the risk that the plan will not be confirmed based on the lack of understanding of what is required by the court.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

Bankrutpcy Fraude FAQ

What is bankruptcy fraud?Bankruptcy fraud is when a debtor files for bankruptcy with the intent of hiding assets or concealing funds which could otherwise be used to repay creditors. While uncommon, the FBI actively investigates bankruptcy fraud and does prosecute those who engage in bankruptcy fraud.

Can I transfer or convert some of my assets to protect them from creditors? That depends. The bankruptcy code allows for potential debtors to plan for bankruptcy by making contributions towards retirement accounts or contributing funds towards household expenses or mortgage payments. The bankruptcy code, however, does not allow for a debtor to transfer bank account funds to another individual or make large payments to individuals just prior to filing.

Can I sell my home prior to filing bankruptcy and keep the proceeds?Yes. However, in order to protect the left over proceeds you must reinvest the funds in a new home. This is known as the homestead exemption and California law allows you to protect up to $100,000 of proceeds so long as those proceeds are applied to another homestead within six months of the sale.

What happens if a creditor challenges the discharge of a certain debt?If a creditor objects to the listing of a certain debt and believes it was incurred under fraudulent purposes, it can file a motion with the court and have a hearing on whether the debt should be discharged. The creditor must prove that at the time the loan or money was borrowed or spent that the debtor intended to never repay the loan.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney asks:

Can filing for bankruptcy stop a foreclosure?
Yes. Filing a bankruptcy petition stops foreclosure proceedings and any other adverse action against the individual who files. This means if you have a foreclosure day set on your home you can stop the sale by filing for bankruptcy.

Is my home protected so long as I am in bankruptcy?
That depends. It is still possible for a foreclosure after bankruptcy to occur if the mortgage holder applies for a relief from the automatic stay that went into effect upon the filing of the petition. The lender will generally apply from relief if mortgage payments are delinquent or if there is no intention in keeping the property post-bankruptcy.

If I want to keep my home, what can I do to avoid a foreclosure after bankruptcy?
Generally it is encouraged that an individual who files be current on all monthly payments for property which they intend to keep – such as a home or car. If an individual is filing bankruptcy to stop a foreclosure and wants an opportunity to repay the delinquent amount, post-petition payments of the mortgage amount are needed to indicate to the lender you intend on keeping the property. Otherwise, a foreclosure after bankruptcy is possible.

In a chapter 13 plan, if I miss a few monthly mortgage payments, what can happen?
If you miss your regular mortgage payments the bank can apply for a relief from the automatic stay and explain to the court that normal payments have not been made and they wish to foreclose on the home. In that circumstance a foreclosure after bankruptcy is possible because the required payments to prevent foreclosure have not been made and the lender wants to protect its interest in the property.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!