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Posts Tagged ‘los angeles chapter 13’

What if I don’t qualify for bankruptcy?

Wednesday, October 27th, 2010

Bankruptcy laws are very specific and there are some people in need of relief that don’t fall into the parameters.  They may have too much cash, have received an inheritance or have too much equity in a home but at the same time have overwhelming business or personal debts.

Doan Law Firm can help those clients negotiate their debt down to pennies on the dollar.  We have a team of professional negotiators able to whittle down the debt to the lowest possible amount.  In addition, our negotiators have a special inducement for the creditors – we are California’s largest family of bankruptcy attorneys and we stand ready to file a bankruptcy in which the creditor will receive nothing.  Pennies on the dollar today is much better than nothing tomorrow.  Even the most thick-headed creditor understands that new math.

Can I keep my house in bankruptcy? Another exciting installment of “Ask Doan Law Firm” (Part 1).

Wednesday, September 29th, 2010

Q:  Can I keep my house in bankruptcy?

A:  As with most bankruptcy questions, the answer is a hearty, “it depends”.  Let’s narrow it down a bit.

The day you file a Chapter 7 bankruptcy, you receive an automatic stay.  The automatic stay prevents any creditor from taking any action against you.  This means your mortgage company, cannot foreclose no matter where they were in the process.  In your bankruptcy petition (paperwork) you indicate if you plan to surrender the home or keep it.  In bankruptcy, the general rule is if you keep the asset you keep the debt.

If you are current on your mortgage payments, you can continue to make those payments and take the house through the bankruptcy, paying all the way.  If you are not current, you need a plan that will get you current.  The key is usually in the automatic stay.  As we mentioned, when you file, every one of your creditors must stop all collection action.  You won’t be paying your credit cards and wage garnishments and bank levies will stop.  That can give you just the breathing room you need to catch-up your home.  Some clients borrow the back amount from a family member or friend.  If the house makes sense once you jettison all the other debt, it can be a good idea to borrow to catch up the back payments.

The reason you need a plan for bringing your house current and a time frame on the plan is that the bank can potentially file a Motion for Relief from Stay.  When you file bankruptcy, the bank has two options, (i) wait for the bankruptcy to be complete and proceed with the foreclosure; or (ii) file a Motion for Relief from Stay asking the court to allow them to proceed with the foreclosure.  There’s no way to predict which path the bank will take.  On one hand, if you’re not going to bring the house current, the bank wants the property.  On the other hand, it will take about 2 months for the court to hear a Motion for Relief from Stay and the bank knows the bankruptcy will be complete in about 6 months.  A Motion for Relief from Stay costs the bank attorney and filing fees, so they may decide to wait.

Another important thing to note at this juncture is that if you keep the asset (house) and keep the debt (mortgage), you keep the debt as it is.  The bankruptcy court doesn’t have the power to modify a home loan.  There’s been some discussion among the powers-that-be about grating the court that power, but for now they don’t have it.  If you keep the house, it will be with the current mortgage.  You do still, however, have the right to continue to engage in any loan modification discussions with the bank.

In the next post we will look at keeping your home in a Chapter 13 bankruptcy.

The 48 Year Credit Card Hamster Wheel

Monday, August 23rd, 2010

Many clients come into our office exhausted.  They’ve been running on a hamster wheel trying to keep their credit cards happy with a minimum payment each month.  They’ve pulled money from every possible source, extra jobs, kids’ college funds, their 401k, and even other credit cards.

Despite running for years, they’ve gained no traction.  They are in fact further behind than when they started and they’re saying “uncle”.  Only a farfetched lotto win will bring the upturn they need because it takes 48 YEARS to pay off a $15,000 credit card paying the minimum monthly payment!  Imagine you’re 30, part of a young family, ferrying kids to soccer practice.  You will be writing the very same check as you bounce your grandchildren on your knee.

It’s our desire to help people get on the upswing without years of heartache and struggle.  See how bankruptcy can rid you of your financial concrete boots.

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    Laguna Hills Bankruptcy
    25401 Cabot Rd.
    Suite 113
    Laguna Hills, CA 92653
    Call 888-362-6529

    Santa Ana Bankruptcy
    930 West Seventeenth St.
    Suite C
    Santa Ana, CA 92706
    Call 714-795-3536

    Corona Bankruptcy
    1411 Rimpau Ave.
    Suite 108
    Corona, CA 92879
    Call 909-708-4597

    Moreno Valley Bankruptcy
    24490 Sunnymead Blvd.
    Suite 101
    Moreno Valley, CA 92553
    Call 951-579-4756

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    444 Airport Blvd.
    Suite 109
    Watsonville, CA 95076
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    Oceanside Bankruptcy
    1930 S Coast Hwy
    Suite 206
    Oceanside, CA 92054
    Call 760-450-3333

    Chula Vista Bankruptcy
    333 H Street
    Suite 5000
    Chula Vista, CA 91910
    Call 619-500-6535

    Escondido Bankruptcy
    320 East 2nd Ave.
    Suite 108
    Escondido, CA 92025
    Call 760-746-4476

    La Mesa Bankruptcy
    4817 Palm Ave.
    Suite I
    La Mesa, CA 91942
    Call 619-462-362

    San Diego Bankruptcy
    185 West F St
    Suite 100
    San Diego, CA 92101
    Call 619-234-3626