Fong Law Group

Should I File for Bankruptcy FAQ

Bankruptcy can give you relief from a financial crisis. But you cannot decide on filing bankruptcy without adequate information. Before filing bankruptcy in California, you might want to know the options, discharges, and impact on your financial life. In the following, we will address all your queries.

Should I File Under Chapter 7 or Chapter 13?

There will be some specific requirements for both these chapters. You can file bankruptcy under Chapter 7 when your monthly expenses are more than your monthly income. You can consider Chapter 7 if you earn less than the median income. Also, it can be a suitable choice when you do not have a lot of things to keep. Chapter 7 might discharge most of your debts. But you cannot expect that it will eliminate all your debts. Besides, you can file bankruptcy under Chapter 13 if your monthly expenses are more than your monthly income. However, Chapter 13 involves creating a repayment plan. You will have to repay some loans within sixty months.

When Can a Judge Dismiss Bankruptcy Petitions?

When your monthly income is more than your monthly expenses, a judge can dismiss your Chapter 7 bankruptcy petition. However, you can consider Chapter 13 bankruptcy in that condition. You can hire experienced lawyers from Fong Law Group to know your current status. Experienced legal professionals can offer you the best help based on your financial condition. The Fong Law Group provides legal services to Monterey Park California, and surrounding areas.

 Will Creditors Stop Calling After Filing Bankruptcy?

Yes, your creditors will stop calling you once you file bankruptcy. They will have to follow the legal process. Hence, they will not harass you anymore. Also, it will stop debt collection lawsuits, foreclosures, and utility shutoffs. But it might be temporary, and you can talk to your lawyer to find a better solution.

Can All The Collection Efforts Stop After Filing Bankruptcy?

Yes, the creditors will have to stop all the collection efforts. Once you file bankruptcy, the bankruptcy court will notify your listed creditors. It will not take more than a week. Hence, your creditors will stop calling you within a week. However, if they do not stop bothering you, you can reach out to the lawyers of Fong Law Group. The experienced lawyers will act immediately to end such actions.

 Will Bankruptcy Impact My Credit Report?

Yes, it will impact your credit report. But it will not remain on your credit report forever. The maximum period is ten years. However, you can improve your credit score within this period by avoiding late payments. Also, you can check your credit report to find any errors, and you can talk to the credit bureau to fix them. Yes, you can gradually improve your credit score. You can win the trust of lenders again as well.

Do you want more help? Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Get Rid of Lawsuit Judgments?

Judgements are court decrees that state you owe the creditors money. If you do not pay the bills on time, the creditors may seek to take your private possessions or take your salary to settle the debt. You can contact Fong Law Group if you live in Monterey Park California and surrounding areas to go over your options to prevent or stop a judgement.

Is It Possible to File for Bankruptcy If You Have Judgments?

Because a judgment may have such a negative impact on the credit score, many individuals question if there is a method to get it cleared up. Many professionals would advise you to file for lawsuits, but does it clear all of your debts?

You will be free of all obligations or debts owed to creditors if you file for bankruptcy. However, if a judgement has been entered and a mortgage has been charged, bankruptcy would not be able to eliminate the lien.

You can get some claims on the property dismissed by asking the lawyer to file a petition with the court. However, it is preferable to cope with bankruptcy lawsuits before they become a lien on the property.

Most Bankruptcy Lawsuits will be Discharged If You File for Bankruptcy

Unpaid debts account for the most court judgments against bankruptcy creditors. The lender can sue you for the violation if you don't repay the personal loans, hospital expenses, or other secured loans. If the lender gets a judgment, they have the option of garnishing your earnings or seizing your property to pay the debt, depending on what type of debt it is.

Fortunately, declaring bankruptcy can halt the seizure and eliminate the debt repayment obligations. If a dispute is still ongoing, an automatic stay imposed by the bankruptcy may prohibit it from proceeding. Even though the case ended in a judgment, if the debt is eligible for dismissal, bankruptcy will remove the liability. However, if the judgment is for a non-dischargeable liability, bankruptcy may not be able to discharge it.

Bankruptcy Judgements

If a lender has issued you with bankruptcy lawsuits but it hasn't come to judgement yet, contact a bankruptcy lawyer as soon as possible. Bankruptcy may be able to stop the lawsuit and immediately eliminate the loan, sparing you effort and money.

Is this a Non dischargeable Bankruptcy Judgment?

Start by evaluating whether the liability is Non dischargeable while considering if bankruptcy will erase a judgment. The following are examples of non-dischargeable debts:

• Loans for students (with exceptions)
• Obligations for child benefit or spousal assistance
• Fines, royalties, court expenses, and other payments payable to government agencies
• Driving while inebriated results in mortality

Don't think you're out of the woods if the decision isn't in the Non dischargeable group. Other forms of debts, like liabilities tied to fraud, may be non-dischargeable when the collector objects.

Is it Possible to Prevent a Judgment Levy in Bankruptcy?

If the borrower's claim is still linked to the assets, like your home, getting a bankruptcy clearance will provide little relief. If the mortgage is still in place, the lender will have the option of selling the property once the bankruptcy process is completed or waiting till you sell it to claim its portion.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

While the bulk of taxes are unavoidable in bankruptcy, some are. Fong Law Group can review your situation to see whether the tax bill can be forgiven. Though complicated, applying for Chapter 7 bankruptcy and determining if your obligations are dischargeable may help you get rid of some unpaid taxes.

Bankruptcy and IRS

There is a distinction between tax debt and liens. Tax debt is money owed to the state or the IRS. A lienholder is a judicial judgment that is lodged against the assets to fulfill a tax debt owed to the state and federal government. If you file for bankruptcy and complete all of the requirements, earlier tax levies will not be removed.

The amount will be dismissed, but not erased, from your duty to pay it back. So, the IRS can't seize your assets or bank accounts.

But, if you declared bankruptcy before a lien was issued, the lien may stay on the land. If you wish to sell the home in the future, you'll need to settle the lien first.

Automatic Stay

A device known as the automatic stay halts most legal processes and prevents lenders from pursuing collection methods once you apply for bankruptcy. It ensures lenders can't charge you, seize your wages, charge you, or contact you to recover the money you owe. The IRS is also subject to the auto-stay. The IRS can't issue you collecting debt notifications, garnish the income or savings balance, or even credit the tax refund when an effective system is in effect.

Debt Accrued after Declaring Bankruptcy is Not Subject to the Automatic Stay

The auto-stay protects you against creditors who are attempting to recover the debt that you accrued before filing bankruptcy. The automatic stay doesn't preclude creditors from attempting to collect the debt you acquired after filing for bankruptcy, known as "post-petition debt." The automatic stay will not prohibit the IRS from seeking to recover if you acquired tax liability after declaring Chapter 7 or 13 bankruptcies.

What Occurs to a Tax Liability That Isn't Dischargeable?

If you reside in Monterey Park California and surrounding areas, contact Fong Law Group for more information on the case.

If you declare bankruptcy, your tax liabilities are addressed differently.

• Chapter 7 bankruptcy. Excluding the obligatory stay, bankruptcy proceedings have little impact on non-dischargeable tax debts. The bankruptcy matter will be closed by the court clerk when the bankruptcy judge approves the dismissal. The IRS would be allowed to continue collection operations if the bankruptcy filing does not dismiss the IRS tax liability.
• Chapter 13 bankruptcy. You may employ a Chapter 13 repayment plan to deal with non-dischargeable debt. You'll suggest a 3- to 5 year payment plan for the IRS obligation (together with other bills). Your previous unpaid IRS obligation will still be discharged, and the non-dischargeable bill will be fully paid.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Five Things You Should Know Before Filing Bankruptcy

When you are undergoing financial stress, it's natural to do what it takes for alleviating the anxiety and pressure of the situation. Right from rent to mortgage to other regular payments, you can feel dreaded to release yourself from the debt.

On average, around 1.2 million Americans are compelled to file bankruptcy for various reasons like medical expenses, marital issues, and severe poverty. So before you consider filing bankruptcy, here goes the top 5 things to consider.

1. Bankruptcy can have an impact on the outcome

It's highly likely that you will either file Chapter 13 or Chapter 7 bankruptcy. And even though there are other kinds of bankruptcy, you may not be eligible to benefit from those.

In Chapter 7 of Bankruptcy, all your assets will be liquidated while the debts will be discharged. This implies that when the bankruptcy will come to an end, you are likely to be left with no debts unless you owned any assets that weren't eligible for discharging.

On the flip side, in Chapter 13, the debts will be reorganized in such a way that it becomes a pay plan. As a result, you are not compelled to liquidate the assets.

2. Bankruptcy can have a positive effect on the credit

Even though you are worried about the credit ranking delay that may be brought about by filing bankruptcy, it will remain in the records for some time. After that, you can actually improve your credit score. As the dischargeable debts get cancelled, you can move forward with a clean financial slate and start rebuilding the credit profile positively.

3. Getting an automated stay against creditors

When you file for bankruptcy, the court will surely issue a sty order against all debt collecting activities. Even though your debt is not suspended, it will definitely delay the proceedings until the case comes to an end or the stay has been lifted.

4. Bankruptcy is a safe and easy option

Contrary to popular belief, a bankruptcy is a relatively easier and fast process to get you rid of the unworthy financial situation. In most cases, you are likely to be awarded an automatic discharge within 9 months. Moreover, when you don't have any non-exempt assets or extra income, bankruptcy filing is surely the most cost-effective option.

5. You can keep a part of your property

When you are filing bankruptcy, you will be able to keep a small amount of the property as an exemption. These are assets that you can shield from liquidation. In most cases, exempt properties include pension, household belongings, motor vehicles, furnishing and other things as per your individual situation.

It's worth noting that these are also the primary causes why you should consider working closely with a bankruptcy lawyer. He is proficient and skillful enough to support you through the challenges and make sure that the case goes as it has been planned. If you are facing such an undesirable situation, contact us today and settle it with the best backup you can think of.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Eliminate Enough of Your Debt

Bankruptcy is a viable lifeline for those who are immersing in debt. Consumers often file petitions for releasing them from debt. And fortunately, in most cases, the petition is granted. But the real concern is that whether filing bankruptcy can relieve the situation.

Understanding bankruptcy

Bankruptcy refers to a court proceeding where the jury and the court trustee will examine the situation, concerning the assets along with the liabilities of people and partnerships with a debt that have become too overwhelming to be repaid.

Thankfully, bankruptcy laws were drafted to offer a second opportunity to people so that they can start over once again after facing a complete collapse of funds. No matter whether the bankruptcy and debt are results of poor decisions or misfortune, lawmakers can consider it a second chance which is vital for a fallback in this capitalist economy. If you are still hesitant about this option being able to eliminate debt then you can consider giving yourself a second chance.

Can bankruptcy eliminate debt?

Well, bankruptcy may not be able to eliminate all of the debt. For instance, non-dischargeable debts are so essential that they might not be discharged when you file bankruptcy. When all your debts are falling into this category, it may not be suitable for you to plea for bankruptcy.

These may include domestic financial support such as funds for children and alimony, debts incurred from false pretenses or fraud, priority tax debts. Other non-dischargeable debts include obligations stemming from personal injury caused by bad decisions like drunk driving. It may not be suited for student loans also unless you are able to prove that the undue hardship exception is applicable in your case.

In some cases, filing for Chapter 13 bankruptcy can offer an affordable means of reorganizing and repaying non-dischargeable debts by following a repayment plan of 3 to 5 years. There is a maximum debt cap with respect to Chapter 13 bankruptcy.

When to consider filing for bankruptcy?

Before you file for bankruptcy, it's important to educate yourself on how it works. It comprises a thorough process that all businesses and individuals should be ready to follow. When you are facing severe debt issues, filing for bankruptcy can be a strong way of remedying the situation.

This is because it can stop most of the fund-collecting actions such as wage garnishment, telephone calls, and even lawsuits in some cases. It can rule out enough of your debt including medical bills, credit card balance, personal loans, and a lot more.

Conclusion

Bankruptcy allows people in debt to wipe off certain monetary obligations and think of a fresh start. The two primary variants of bankruptcy lawsuits, Chapter 13 and Chapter 7 offer their own share of benefits in debt management. Even though it may not be able to relieve you from all kinds of debt, when you have a reputed and knowledgeable lawyer by your side, he can prevent a creditor from repossessing the property that cannot afford any more along with tax debts and debt stemming from fraud cases. This means, if you are in such a merciless situation, it's imperative to have a lawyer help you through the process.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Student Loan Programs: 4 Questions to Ask Before Refinancing Your Student Loan

Majority of student loan lenders offer some of the best loans you could find. The interest is usually fairly low, and the loans are pretty simple to get. To their credit, student loan lenders are some of the fairest in the country. 

Student Loan Lenders:

• Allow you to go into forbearance when your financial situation becomes unmanageable;
• They will work out fair payment plans with you; and 
• Their interest rates are manageable if you're not experiencing financial difficulty

Those student loans, on the other hand, will not go away no matter what. Even if you are unable to obtain a good job as a result of the education they provided, you must repay your student debts. They'll continue to accrue interest even if they're in forbearance. Student loan refinancing and debt consolidation organizations, on the other hand, are finally giving borrowers new hope.

By asking the appropriate questions, you may find the right student loan option for your debt consolidation. We have put together some questions you should ask when considering the right student loan program.

First and foremost, you should inquire as to what you would need to perform in order to be qualified for loan forgiveness. You can get some or all of your student debt forgiven if you work in specific industries, such as education, public service, or the military. Consult your agent to determine if a vocation you're interested in falls into one of these categories, and if so, you may be eligible for forgiveness. A government program is also available.

Do they accept payments on a biweekly basis? It's extremely uncommon that you'll come across a company that does not accept automatic bill payment. In addition, most lenders will give you a.25 percent interest rate reduction if you sign up for automated bill pay. However, you will not be able to make bi-weekly payments with everyone. Some companies will allow you set up automatic payments once a month and accept a check or money order at any time during the month. However, keep in mind the following:

1. Bi-weekly payments equal out to about 26 more payments a year,
2. You're paying the same amount of money, but making more frequent payments, so you pay less interest and you're shaving off years of repayment time

What are your financial goals in the long run? Before you sign up with a company, be sure you understand exactly what you'll be paying each month and for how long. You may decide that you don't want to pay off your student loan debt for another ten years, or that your payments are too large to manage due to upcoming personal commitments.

Remember that interest rates can add up quickly, so listen to your agent's advice but don't let him or her pick your answer for you. Before you choose the best option for you, make sure you consider all of your options for changing payment plans, refinancing, and pre-paying.

Are you able to refinance your home? If you've gained a better job or have a more manageable budget, many firms may allow you to refinance rather than consolidate. Refinancing your loans can save you over $11,000, so it's the best option for many people if they qualify.

If you find you are unable to refinance your loans due to job loss, an injury or any other reason, call Fong Law Group at (626) 289-8299 for a free consolidation. You can depend on Fong Law Group to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.

Three Steps to Improving Your Credit Report after Going through Financial Debt

There are three procedures to follow while trying to get your credit report back on track. Because many debt relief organizations are just not competent, it is critical to contact a Fong Law Group attorney to handle this for you. Because effective debt settlement may also include legal expertise and experience, having a bankruptcy attorney on your side increases your chances of a successful resolution.

Stronger credit management will require you to:

1. Refute incorrect information. If you uncover anything on your credit report that you believe is incorrect, you should dispute it with the credit reporting companies directly. They must either verify disputed information or remove it from your credit report within a reasonable amount of time.
2. Work out a payment plan for the remaining debt. You'll talk to your creditors and try to come up with a plan to pay off a portion of your debt in one lump sum or over time with a payment plan. You should also request that any true negative information be deleted at this time. If the creditors are resistant, having an attorney there during the negotiation process is extremely beneficial; the lawyer may be able to uncover some faults on the creditors' end that you may use as a "bargaining chip."
3. Establish a good credit history. There is no legal way to improve your credit by eliminating negative information that you couldn't resolve with your creditor. It's critical to start building good credit after you've settled your present debt. You must demonstrate that you have the current ability to pay bills and that you have paid other accounts on time since your previous issues.

Remember, the credit agencies actually want to lend you money. You just need to show them that you are capable of paying them back.

At Fong Law Group, our experience allows us to provide advice to help you protect your assets, avoid wage garnishments, etc.  Fong Law Group will give you insight into the special provisions of the California bankruptcy code, ensuring your decisions have the minimal impact on your financial future. We will evaluate your circumstances, and help you choose the best option for your unique situation.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Debt Defense

Debt Defense

Contact a Fong Law Group Bankruptcy Lawyer

You may have gotten into debt on your own, but you don't need to get out of it on your own. Fong Law Group is Board Certified in California Consumer Bankruptcy Law by the California Board of Legal Specialization; we have years of experience in helping residents of the Monterey Park and surrounding areas get out of debt, and start fresh.

RETAIN US         

1. After you retain us, we will sit down with you, and analyze your debt, and determine your property exemptions. We will make sure you are eligible, and figure out the best options for you.

CASE DEFENDED              

2. Once retained, we will get papers filed, and let your creditors know you have retained us which most of the time stops the harassing phone calls and wage garnishments. We will file your answer with the Court to prevent any further default judgments. We will appear for you at any Court hearings and handle any motions that are filed.

CASE RESOLUTION         

3. The vast majority of our collection lawsuits that we fight are either dismissed by the creditor or dismissed during bankruptcy by the courts depending on the type of bankruptcy filed. The resolution of your case depends on a variety of factors including: The Court; The Creditor, The Creditor Attorney/Law Firm, and the Documents that the Plaintiff is prepared to show the Court.

A variety of options are available for bankruptcy in California. Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

What is the Bankruptcy Means Test?

The Means Test is an income qualification tool used to determine if you are allowed to file a Chapter 7 bankruptcy or if you must file a Chapter 13 bankruptcy. Individuals with more than a certain income must file a Chapter 13 bankruptcy. A Means Test can determine who can file for Chapter 7 bankruptcy.

The Formula

The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 — or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system. (Those who fail the means test are left with a Chapter 13 repayment plan as their only bankruptcy option.)

The bankruptcy means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7.

Test 1 - "Median Income"

This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, if your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2.

Test 2 - "Disposable Income"

This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years: for example (this example is just an example, each county and state is different);

• If you can pay at least $10,000 ($167 per month), you can't file for Chapter 7.
• If you can pay at least $6,000 ($100 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7.
• If your disposable income is less than $100 per month, you can file for Chapter 7.

Certain deductions are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living. Depending on which county you live in California, the amounts may change but the method of calculation will not.

In addition, to these standard deductions, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments.

 

Are You Ready?

Contact Fong Law Group today for a free consultation at (626) 289-8299, and we will help determine which type of bankruptcy you qualify for.

Wage Garnishment

What Is Wage Garnishment?

Wage garnishment is when you owe a debtor and you have not paid your bill, so they go to the courts to sue and place a wage garnishment on your wages to collect their money.

How Does a Wage Garnishment Work?

Most creditors cannot garnish your wages without first suing you in court and getting a money judgment. Upon suing you, and getting a judgment, the creditor can then get an order to garnish your wages from the court. (There are a few exceptions, for example, for student loans, taxes, and child support.)The sheriff then forwards the order to your employer, who then holds back a portion of your wages each pay period and sends that amount to the creditor. There is however limits to how much the employer can garnish from your paycheck each month. And you may be able to protect even more using exemptions.

Preventing Wage Garnishment

Hiring a Fong Law Group attorney does not consequentially trigger an automatic stay, nor does it stop a creditor from garnishing your wages. Once you receive notice that your wages are about to be garnished, you can contact an attorney at Fong Law Group and we can assist you in filing for bankruptcy quickly, before your wages are actually garnished. Filing quickly, with the assistance of an attorney, will put your automatic stay in place before your creditors get a chance to take your wages.

Hiring a Fong Law Group Attorney

When you hire Fong Law Group to file bankruptcy for you, we may choose to send a letter of representation to your creditors, identifying us as your attorney. While such a letter does not automatically stop garnishment proceedings, your creditors may choose to stop garnishment because of your pending bankruptcy case since they know garnishment must stop once your case is filed.

Voluntary Halt to Garnishment

When your creditor receives a letter of representation from Fong Law Group, particularly if the letter states that you are about to file bankruptcy, the creditor may decide against pursuing a garnishment order since it more than likely may end up costing him/her more than it is worth. By the time the creditor considers paying court costs and attorney fees, the creditor may decide the hassle and cost of garnishment is too much when balanced against the low chance that the creditor will get paid. However, this is the creditor’s choice, and the only thing that guarantees a halt to garnishment is an automatic stay from a bankruptcy filing.

If you are facing a wage garnishment, contact Fong Law Group today for a free consultation at (626) 289-8299.