Fong Law Group

Will I Lose My Home If I File Chapter 7 Bankruptcy?

You may not lose the property if you apply for Chapter 7 bankruptcy provided you don't have considerable home value and the payment is due. Most of the users who claim Chapter 7 bankruptcy are allowed to have their possessions. If you are struggling financially, though, you may choose to take a different approach to bankruptcy, like declaring Chapter 13 bankruptcy.

If you're considering Chapter 7 bankruptcy and seem to be concerned about losing your home in Monterey Park, California and surrounding areas, It is best to call a lawyer at Fong Law Group so we can assist you, and point you in the right direction for the options that are available for you.

Home and Bankruptcy

If you're behind with the payments, Chapter 7 will not assist you to retain your house. If you're behind on your payments or on the verge of losing your home, Chapter 7 won't help you. So, until you can work out a deal with the lender separate from the bankruptcy, you're likely to lose the home. When this happens, there are other options such as Chapter 13 bankruptcy; this is why it is best to call an attorney that can discuss all your options so you can keep your house.  

Will My House Be Sold by a Bankruptcy Trustee?

If you do not have equity in the home as collateral or can exclude (protect) the property utilizing the homestead claim, you can protect the house in Chapter 7 bankruptcy. The trustee designated to handle the case will not sell it since there will be no money to give to the debt holders if there is no available equity.

However, this does not indicate that you will be able to maintain the house. Whenever you declare bankruptcy, you should be current on all payments, and you should be able to keep current in the future. You fear losing the home to foreclosure if you don't during a Chapter 7. If you are behind on payments, a Chapter 13 might be the right option for you, this is why it is essential to speak with a lawyer so they can advise you. 

Does Bankruptcy Chapter 7 Assist with Foreclosure?

Although Chapter 7 bankruptcy may offer temporary protection from foreclosure, it will not assist you in keeping your house. It lacks a means for paying off debts or effectively stopping the foreclosure process.

Consider the below mentioned methods:

• Before filing for bankruptcy, try to work out a deal with the lender. If you are behind in your mortgage payments, you may be able to negotiate a settlement with your borrower, informally or via a more official mortgage work, in which the creditor offers to renegotiate the repayment schedule by restructuring or altering the loan. If you pursue this route, make sure you finish the mortgage modification process before filing chapter 7 bankruptcies. Otherwise, any continuing conversations will almost certainly be disrupted by the bankruptcy. (In Foreclosure, you will discover data on lender negotiations and home loans.) 
• Take Chapter 13 bankruptcy as an example. In this, you may save the house if you have not paid the installments and now have sufficient money to keep pace on the loan arrearage with time. The automatic stay once you file bankruptcy stops the lender from proceeding with foreclosure procedures after you file bankruptcy.

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.

Reasons to Consider Filing for Bankruptcy

Considering bankruptcy is not really a desperate move; rather it's the second chance all of us deserve for rebuilding our finances. Many people believe it to be the last resort that's only to be tapped when you have tried all the available debt alternatives but fail to come out of the maze.

Top reasons why bankruptcy can be the solution to your crisis

If you take a look at the picture from a distance, you will see that bankruptcy gets cleared up and gradually fades away. That's the primary reason why bankruptcy laws are drafted so that you get another scope in your life, a fresh start. If you are going through a harrowing financial situation, it's time to consider filing bankruptcy for the following reasons.

Unmanageable medical expense

In 2019, the American Journal of Public Health published a report that stated that around 66.5 percent of bankruptcy cases in the US stemmed from medical problems. It included the inability to pay high bills or loss of duration from work. Even when most people are equipped with health insurance, copays and job loss is affecting the finances of Americans.

When you are afflicted by serious injury or some rare disease, or health issues, it can result in excessive medical bills which won't take much time in wiping off your savings. Once all the funds have been exhausted, filing bankruptcy can be the only way out left, and the only way to give you peace again by getting rid of your debt.

Loss of jobs

No matter whether it's due to resignation or termination or layoff, a complete stoppage to the income can be extremely overwhelming. While some people are fortunate enough to get severance packs, in most cases you are likely to receive a pink slip on the work desk without any prior notice.

Without an exigency fund from where you can draw money and having to depend on the credit card alone can be a disastrous experience. Many people do not have enough savings for emergency situations that can help them buffer a job loss or similar financial problems. Those who are not able to gain employment cannot recover from the pecuniary crisis. Filing bankruptcy can help curb the negative impact of the situation.

Excessive use of credit

It's no secret that some people have no control over their expenses. Installment debt, credit card bills along with other loan repayments can subsequently go out of control till the borrower comes to a position from where they are not able to make the minimum payment.

When you cannot get access to required funds from friends or other members of your family, then considering bankruptcy can be your best bet. If you take a look at the prevailing statistics, you will see that debt consolidation often fails owing to several reasons. It's true that home-equity loans can help in some instances, but as soon as it is exhausted, you can face foreclosure on your home. Needless to say, a bankruptcy lawsuit can save the day for you.

With the help of an experienced and adept lawyer, you can file a bankruptcy lawsuit that can help you stop repossession, foreclosure, and wage garnishment. Wait no further. If you're going through a similar situation, talk to a bankruptcy lawyer today.

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.

What Are Advantages of Filing Bankruptcy?

Filing bankruptcy offers a solution to businesses and individuals to get rid of the financial difficulties if they cannot pay their debts. Thus, they can begin rebuilding the credits, thereby living life in a financially stable and positive way.

Though it will have an impact on the finances of the individual for several years to come, it comes with its own set of pros owing to which people prefer to file bankruptcy. There are a wide array of advantages of bankruptcy in Monterey Park, California, and surrounding areas:

Automated stay against the creditors

As you file bankruptcy, the court will release a stay against all kinds of debt collection activities against you. Though it will not cancel all the debts, it will be useful in suspending all kinds of debt collection proceedings till the bankruptcy case gets completed.

Hence, you do not need to lose your night's sleep over dreaded collection calls, letters, and emails from the debt collectors, property repossession, home mortgage foreclosures, wage garnishments, lawsuits upon the debts.

Helps in clearing a lot of debt

Another reason why a wide assortment of people prefers to declare bankruptcy is because they lend a helping hand in discharging unsecured and eligible debts, so you will be capable of managing the loans on a wide scale. So, you are going to have extra relief and time from the debt collection team to clear the utility payments, mortgage, and other debts without causing too many hurdles.

In addition, it allows you to fold the car payments into the repayment plan. Hence, you can be ensured that your property is not going into repossession. The best part is that you will get another chance to make your current payments and get rid of the debts completely.

Freedom from different debts

Through bankruptcy, you will be capable of wiping out a variety of debts, such as medical bills, credit card debts, civil judgments, personal loans, past-due utility bills, past-due rent, business debts, and certain tax debts.

Few of the debts, which cannot be erased even after filing bankruptcy, are the child support and the latest tax debts. Although it is not possible to discharge a few of the troublesome debts, it will give you the opportunity to repay the rest easily.

Gives you a new fresh start

After those dreadful calls from the debt collector, a vast assortment of clients looks for a fresh financial start. Hence, they will have the opportunity to live life without the need to worry about debt after filing bankruptcy. Hence, you do not need to worry or fear every time your phone rings, or you open the email. It also gives the option to recognize the financial affairs so that you can rebuild the credit.

In a nutshell, bankruptcy gives you peace of mind so that you can manage your finances effectively. According to bankruptcy law, the person filing bankruptcy will receive credit education. Hence, they can look back at the history and reset the credit and financial course. If you are successful in reaping benefits from bankruptcy, you will be capable of handling the finances in a more secure way than before. You can reach out to Fong Law Group in Monterey Park California and surrounding areas if you want to file bankruptcy.

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.

When is Bankruptcy the Best Option?

Bankruptcy can assist you in becoming debt-free, but it is not the best solution for everyone. It's critical to comprehend how it will affect your day-to-day existence and to consider your options.

Collection calls, litigation, and wage garnishments are all stopped when you declare bankruptcy. It eliminates debt. And, contrary to popular belief, bankruptcy can improve your credit score.

When is Bankruptcy the Best Option?

Bankruptcy, according to credit reporting agencies and experts, is indeed considered one of the absolute worst things you could do to the credit rating. Nothing else, including foreclosures, charge-offs, repossessions, and collections, could lower the credit scores as quickly and dramatically as a bankruptcy. However, bankruptcy when faced with mounting debt that cannot be eliminated is also considered the quickest way to improve your credit score.

If you meet all of the following criteria, the bankruptcy option might be good for you:

• You can't see how you'll be able to pay off its debts.
• If you don't have numerous valuable possessions and the property has little or no equity, it's doubtful that the performance will change.
• You don't have to have a certain amount of debt to qualify. When your unsecured debts exceed the value of the possessions, bankruptcy may be an option for you. Credit cards, shop cards, and personal loans are examples of unsecured indebtedness.

How much and how quickly can credit scores improve?

Researchers discovered that filers' Equifax credit scores plummeted in the 18 months preceding filing bankruptcy then consistently rose afterward from filing for bankruptcy, depending on data from either Equifax credit bureau.

The following are some of the findings:

On Equifax's 280 to 850 scales, the average credit score for anyone who filed Chapter 7, the most prevalent kind of bankruptcy, in 2010 was 538.2. (Scores in the mid-600s and down are regarded below average.) The filers' mean score was 620.3 even by the time their lawsuits were dismissed during bankruptcy, which was generally within 6 months.

Chapter 13 bankruptcy, on the other hand, necessitates a three- to a five-year repayment plan, which is what most people fail to finish. Those that did finish, and received a discharge, on the other hand, saw their scores improve from 535.2 to 610.8 and up, according to the researchers.

Much lower benefits were seen in a recent study by FICO, the firm that invented the most popular credit score. According to Ethan Dornhelm, senior director of FICO's scoring and analytics department, median credit scores for persons who filed for bankruptcy from October 2009 to October 2010 increased from the 550s before filing to the 560s and above thereafter. (The majority of FICO scores range from 300 to 850.)

After two years, 28 percent of bankruptcy filers had 620 or higher credit scores. After four years, 48 percent had scores of 620 or higher.

The FICO study, on the other hand, made no distinction between Chapter 7 as well as Chapter 13, or between persons who were discharged and those who were not. Those who haven't paid off their debts may be skewing the outcomes. In other words, persons who filed for bankruptcy and were successful may have made more money than the median data show.

Conclusion

Right after a bankruptcy, it might be hard to obtain credit. Individuals who have finished bankruptcy, on the other hand, and were discharged, are much more likely to be granted fresh credit lines after 12 months as compared to those who were 120 days or more delinquent at the very same time, however, did not file, according to Nosal's research.

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.

Do I Have Enough Debt to File for Bankruptcy?

To apply for bankruptcy relief, you do not need to have a certain amount of debt. Whereas the amount of the debt is essential, there are much more crucial aspects to consider when deciding whether or not bankruptcy is already in your best interests.

 

Factors Which Will Assist You In Deciding Whether Or Not To File For Bankruptcy

One of the most crucial decisions you'll have to undertake in your financial future is whether or not to file for bankruptcy. Note that, aside from either the sorts of debt you have accumulated, when you will apply for bankruptcy is mostly determined by the circumstances.

The following are some of the things to think about while filing for bankruptcy:

Unsecured debts: If your debts are primarily unsecured, you can petition for bankruptcy. The level of debt doesn't matter when filing bankruptcy since there is no minimum debt. Credit card debt, medical costs, cash advance (payday) loans are instances of unsecured debts.

Secured debts: Whether you are overdue on a mortgage or auto payment, bankruptcy might be the best option for you. You'll be able to keep your home and have 3-5 years to make up the missed payments, sometimes at a much lower interest rate.

Employment situation: If you are unemployed as well as having difficulties making the payments, you may be able to file for bankruptcy and have some of the unsecured debts discharged. You could either stay current on the secured debts or use a Chapter 13 bankruptcy to catch up on such payments. Similarly, when you are employed but still unable to meet the debt obligations, required to file for Chapter 7 or Chapter 13 bankruptcy can allow you to keep the assets (house as well as car) while also freeing up cash to pay them off by preventing or minimizing payments on medical bills, credit cards, and other unsecured debts.

Paying bankruptcy legal expenses: To receive a debt discharge, you must pay court costs like the attorney fees, filing fee, as well as education classes. Note that filing bankruptcy will not wipe out any of these expenses. Nevertheless, these expenses are insignificant when compared to the money saved on prospective debt payments, which continue to rise due to interest plus late fees.

When Should You File For Bankruptcy Under Chapter 7 and Chapter 13?

Requirements for filing history: The length of time you must serve is determined by the kind of bankruptcy you choose and the conditions of the earlier dismissal.

Minimum monthly income: To be eligible for Chapter 7 bankruptcy, you must satisfy the Chapter 7 Means Test, which compares your income to other families of similar size in the state.

Other debt criteria that be acceptable: Payday loans, as well as credit card bills, are examples of unsecured obligations that can be dismissed in bankruptcy. Whenever you are "underwater," you could also discharge debts from such a car or residence that you no longer want.

Conclusion

In order to file bankruptcy, debtors don't need to have a certain amount of debt. Whether to declare bankruptcy and whether it is the best option for you largely is based on the 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.

What Debt Can’t Be Discharged When Filing for Bankruptcy

People who are drowning in debt can file for bankruptcy and get a fresh start either via liquidation (Chapter 7) or through reorganization (Chapter 13). Some debts could be discharged by the bankruptcy court for both circumstances. The creditor could no further take action against the debtor, like seeking to collect the debt or seizing any collateral, that once obligation has been dismissed. Nevertheless, not all debts could be dismissed, and some are extremely tough to discharge.

Debts never released in a Bankruptcy discharge

While the purpose of both Chapter 7 as well as Chapter 13 bankruptcy is to get rid of your debts therefore you could get on with the life, not that all debts are dischargeable.

• Child support as well as alimony.
• Tax liens, for example, are unpaid taxes. Certain state, federal, and municipal taxes, on the other hand, might well be dischargeable when they trace back several years.
• Debts incurred as a result of the intentional and malicious harm done to some other person or their property.
• Debts’ arising from the debtor’s operating a vehicle whilst inebriated or impaired by certain substances, resulting in personal injury or death.
• Debts that you didn't include in the bankruptcy petition.

You should continue to owe any condominium or corporate association fees, as well as any other obligations which were not discharged in a previous bankruptcy when you apply for Chapter 7. By reaffirming your auto loan and continue making payments, you may typically keep your car. Likewise, though if you owe money on the property, you could generally keep this if you filing bankruptcy as long as you maintain making payments but don't have more value as compared to state and federal bankruptcy regulations allow.

If you owe money on taxes or student loans, you could be capable of working out a repayment plan without declaring bankruptcy.

Tough to Discharge Debt obligations in a Bankruptcy

Student loans are extremely difficult to dismiss in bankruptcy; you could only do this if you could show that you or your dependents have suffered excessive hardship, including as unable to sustain a minimum standard of living.

A court may dismiss a portion of the student loan debt, however, not all of it, in some instances. If student loans are a big factor in your decision to file for bankruptcy, talk to the loan servicer initially to see if you can work out a repayment plan which works for you.

Income tax bills could be discharged without the need for a special exemption, which may only be acquired by filing a bankruptcy petition and stating why you are entitled to relief.

When it comes to federal taxes, the Internal Revenue Service (IRS) can provide options to persons that are unable to repay what they owe. Your IRS might still set up a payment plan, often known as an installment agreement, which allows you to pay your bills with time.

Conclusion

It's important to remember that your creditors may be able to prevent certain debts from becoming discharged. They can also seek the court to lift the automatic stay, which prohibits them from continuing their collection efforts. As a result, the discharge procedure does not always run as smoothly or swiftly as debtors would like.

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.