Fong Law Group

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.

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.

Student Loan Debt

The rule that student loans are not dischargeable in bankruptcy has an important exception. The most common reason for receiving a “hardship” discharge of student loans is a serious physical or mental condition. We have a lot of expertise with scenarios like these. We will gladly give you our professional opinion on whether or not you have a case.

If you do not qualify for the hardship discharge available for some student loans, we may be able to recommend additional options. We can often teach you how to get a subsidized student loan forgiven without filing bankruptcy if you have a major condition. We've also come up with solutions for dealing with private student loan debt.

Student loans are likely to be the most difficult issue in a consumer bankruptcy case. We would be delighted to speak with you about any student debt issues you have and are concerned about. The Public Service Loan Forgiveness (PSLF) program has a tool you can use to submit a form to see if you are qualify. We have included some helpful links below to assist you.

Resources for Student Loan Forgiveness

Student Loan Forgiveness

Public Service Loan Forgiveness

Complete the Public Service Loan Forgiveness (PSLF) Form with the PSLF Help Tool

If you find you are not eligible for student loan forgiveness, we would love the opportunity to discuss with you what your options are and how we can assist you. 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.

Collection Defense

Collection Defense

 

Judgment Collection Defense Law Basics:

Sometimes consumers have difficulty paying on legal judgments levied upon them from a court of law or as part of a settlement. Individuals who have been sued in court and lost may often wind up owing thousands of dollars, or more to the plaintiff or creditor.

Judgements and Bankruptcy

Just because there is a court judgment against an individual does not, however, mean that the individual actually has enough money to cover payment of the judgment. Sometimes these plaintiffs will accept a payment for less than the entire judgment and settle the debt, thereby avoiding a bankruptcy. Those that will not work with you, can majority of the time be eliminated through bankruptcy as long as it is not a secured debt. 

Determining the Best Course of Action

Fong Law Group can answer your important questions about judgments, collections and bankruptcy law in California. We will be able to evaluate each form of debt that you have to determine the best course of action. You may need to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, but we are here to help you through this difficult time and get you back on the road to recovery and a fresh start.

Contact Fong Law Group

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 get back on your feet, and having a fresh start

Debt Relief and Bankruptcy

Are You Struggling and Stressed Because You Have Too Much Debt?

 

Perhaps you have missed a mortgage or car payment or simply cannot keep up with credit card bills. You may be receiving threatening collection calls or facing a lawsuit, and are afraid every time your phone rings. You are far from alone. Solid, hardworking people throughout the country have these same problems.

We live in times that we are offered credit everywhere, whether it is with credit cards, home loans, car loans, gas cards and store credit cards, making it very easy to get buried in debt. While we are opening up credit in all these places, sometimes bad things happen to good people, and we lose a job, are injured, or just over extend ourselves.

Many people have enough money to make monthly payments on these debts at the time they incur them. Sometimes, though, the random incidents in life get in the way. When you live paycheck to paycheck, one shift in your everyday life can have a severe impact on your finances. Suddenly, the bills you could just barely keep up with have become impossible burdens.

If you are in a situation where you are in need of debt relief, contact Fong Law Group. We have experience with all forms of debt, including:

• Credit Card Debt
• Foreclosures
• Student Loans
• Unpaid Taxes
• Vehicle Loans
• Wage Garnishment

Determining the Best Course of Action

We will be able to evaluate each form of debt that you have to determine the best course of action. You may need to file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, but we are here to help you through this difficult time and get you back on the road to recovery and a fresh start.

If you are facing overwhelming debt and harassing telephone calls from debtors, contact Fong Law Group today for a free consultation at (626) 289-8299.

The Bankruptcy Process

The Bankruptcy Process

Deciding whether to file for bankruptcy is a major decision, which should not be taken lightly. It must be made with a clear understanding of the steps you will need to take, what will happen and the obligations you will have. At the Fong Law Group, we take great care to explain the bankruptcy process to each client we serve.

Your Lawyer Will Answer All Your Questions about Filing for Bankruptcy

The bankruptcy process will begin with a thorough analysis of your overall financial situation. We will help you determine whether you should file a Chapter 7 or Chapter 13 bankruptcy filing. While some aspects of the process are similar, the type of protection you choose will outline many steps that must be taken.

Key points to consider include:

Once you hire Fong Law Group to file your case and represent you, you can direct all collection calls to our office and gain some immediate relief from your stress.

If you have an immediate need to stop a foreclosure, wage garnishment or another severe action against you, we can move quickly to do so once we have the necessary documents and information.

It is critical that you are truthful in the financial information you provide, including disclosing all your debts, and that you attend all court hearings unless your attorney tells you otherwise.

Chapter 7 bankruptcy is often a fairly straightforward process that can be wrapped up within a few months, resulting in a discharge (forgiveness) of all unsecured debts. If you file Chapter 13, you will be required to meet all the terms of the repayment plan approved by the trustee — over a period of three to five years. Your bankruptcy attorney will remain responsive to your needs and questions every step of the way.

Fong Law Group Will Be by Your Side

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.

To schedule your free consultation, contact Fong Law Group today for a free consultation at (626) 289-8299.