Bankruptcy under the New Law

Under the new bankruptcy law that came into effect on October 17, 2005, there are several factors that will influence which chapter you will file under: Chapter 7 bankruptcy or Chapter 13 bankruptcy in San Diego.

First, according to the new law, you will need to complete an approved Financial Counseling course six months prior to the case filing.

Dissolution of marriage, or divorce proceeding is initiated by the filing of a Petition by one party. The Petition for Dissolution of marriage is then served to the responding party. The party originally filing the Petition is known as the "Petitioner" and the other party is known as the "Respondent". Following receipt of the Petition, the Respondent has 30 days (unless Petitioner´s attorney grants additional time) in which to file his or her responding statement to the facts. After that time, the case may be set for a Court hearing.

The Living Trust, as it is commonly called is, in fact, an Inter Vivos Trust which means the trust will exist only during the lifetime of the Trust Maker (Trustor). There is an exception to this lifetime provision when the trust is continued after the death of the Trustor for the benefit of one or more beneficiaries (heirs) by reason of age or other conditions. There are two types of Living Trust, "Revocable" and "Irrevocable". A Revocable Living Trust is one that can be revoked at any time by the Trustor. The Irrevocable Living Trust is one that cannot be revoked without written consent of the beneficiaries.

In order to prepare the consumer bankruptcy papers, the client should bring the following documents:

A list of all creditors, including addresses, account / loan numbers, and the amounts and description of each debt;

Obtaining a copy of your credit report is helpful;

For each secured debt, such as a car loan or home mortgage, copy of the latest statement showing the balance due on the debt;

A copy of the DMV registration or recorded trust deed and proof of insurance for each secured debt; Income tax returns for the last two years, including W-2, 1099, and K-1 information;

Deciding between Hiring a lawyer, paying a preparer or seeking debt consolidation

If you are considering the help of a debt consolidation service, your credit is already poor, so why not take advantage of the bankruptcy laws that were created to protect individuals in your exact situation and seek debt relief under the law. There are many negative myths about bankruptcy, such as the inability to receive credit cards for eight years and poor marks on your credit record. The truth of the matter is that you already have a poor credit rating if you are considering debt consolidation and pretending that it does not exist is not going to help you solve the problem. You need to be honest with yourself and make a commitment to mend your credit record and regain control of your finances.

A lender may initiate the foreclosure process when a borrower defaults on a loan, such as by missing a mortgage payment. However, a slight delay may not justify acceleration and foreclosure by the lender. Hence, in practice, lenders generally wait a few months after a missed payment before starting the foreclosure process. Generally the following process begins once a borrower is 2 3 months behind on their payments.

The Means Test: The biggest misconception about the 2005 bankruptcy law changes is that people who make more than the state median income no longer qualify for bankruptcy. This is not true. Above median debtors are now required to complete the "Means Test" to see if the formula indicates that they might have discretionary income available to repay some or all of their debts in a Chapter 13 bankruptcy case. Many above median debtors still qualify for Chapter 7 bankruptcy, and those who don´t may have other options, including Chapter 13 bankruptcy, that will protect them from their creditors. I specialize in getting people whose income is greater than the means test approved for a Chapter 7.

341 Meeting – First Meeting of Creditors

Absolute Priority – The order of payment to the different classes of creditors mandated by the Bankruptcy Code. In theory, claims with higher priority are paid in full before other claims receive anything. Junior creditors and shareholders are paid after senior creditors. Specifically, the usual order is: first, administrative claims; second, statutory priority claims such as tax claims, rent claims, consumer deposits, and unpaid wages and benefits from before the filing; third, secured creditor's claims; fourth, unsecured creditor's claims; and fifth, equity claims.

Adequate Protection – The right of a party with an interest in the debtor's property (such as a secured creditor) to assurance that its interest will not be diminished during the bankruptcy proceedings.

We are a debt relief agency.