By Jeff Curl

With the continuing economic turbulence, underwater properties and struggles to keep homes show no signs of slowing.    As of May 2010, California had 412,605 foreclosure sales on the market.  Judging by the clients walking through the doors, it’s not getting better anytime soon.

My job is to help clients keep their homes and belongings, and get rid of the debt.  For clients with homes, I have lost count of how many clients that are attempting to obtain a loan modification.  Many have given up by the time they get to me.  After Bank of America or Wells Fargo loses their paperwork for the fifth time, they just can’t go through the process again.  Or my favorite is where the bank gives the homeowner a “trial period” where the homeowner pays the agreed amount in a Continue Reading »

The truth of the matter is that there is nothing that a debt settlement company will be able to do for you that you probably could not do yourself. In order to settle your debt, you need cash. I frequently meet with clients who does not have any disposable cash that insist on settling their debts. Before you spent what little cash reserve you have, or liquidate your assets, sit down and plan out an exit strategy. Ask yourself, “how much debt do I have?” and “how much can I possibly save to get out of debt?”

NYT article by: By RON LIEBER
Published: June 4, 2010

If you run up big credit card bills buying a new home theater system and can’t pay it off after a few years, bankruptcy judges can get rid of the debt. They may even erase loans from a casino.

Read more.

By Jeff Curl

I have seen my fair share of clients that spent many hours researching bankruptcy before coming in for a consultation.  They come across the numerous articles and blogs about something called the “means test.”  Sometimes they even find online means test calculators where they attempt to plug in their own numbers, but they are not sure if they did it right. 

Let me stop you right there.  I was at a conference recently where I sat in a room with over 1,000 other bankruptcy attorneys.  Judges, trustees and experienced attorneys discussed (and disagreed about) the means test for several hours.  It’s far more complicated than it looks.  The laws constantly change as to what can be deducted as an expense, and what must count as income.  Moreover, local custom and practice varies greatly.  Doing your own online calculation may Continue Reading »

By Jeff Curl

Occasionally I get the call from a client that forgot to list a creditor in his or her bankruptcy.  They received the discharge, but want to know if they are now responsible for the omitted debt.  This raises a few issues.

Was the Debt Dischargeable?

It first depends upon the type of debt.  Debts in bankruptcy are either dischargeable (you can get rid of it) or nondischargeable (you’re stuck with it).  Typical dischargeable debts include medical bills and credit cards.  Typical nondischargeable debts include student loans, child support and recent taxes.  If the debt omitted was something you could not discharge in the first place like student loans, you are stuck with it no matter what.

Was it a Chapter 7 “No Asset” Case?

But what if it was dischargeable?  What if you forgot about the $8,000 credit card you have not used for a year or two?  Continue Reading »

By: Jeena Cho

The Means Test was a new rule passed with the 2005 Bankruptcy Amendment requiring that all above median debtors complete and “pass” the test. It was supposed to prevent abuse of the bankruptcy system by making it more difficult for people to qualify and file Chapter 7 bankruptcy. The principal idea being if you make above the median income for your state, you should be required to repay some of your debt in a Chapter 13 bankruptcy.

For a single person without dependents (household of 1), the median income in California is $47,969. Everything is obviously much more expensive in the Bay Area and many people make much more than the median income. Now, you may be thinking to yourself, I make more than that so I have to file for Chapter 13 bankruptcy. Well, not always. If you make above the median income, it just means Continue Reading »

Finding the right bankruptcy attorney for you is not an easy process. In the last several months, I have taken phone calls from 2 debtors that hired out-of-area attorneys only to be abandoned in the middle of complex Chapter 13 bankruptcy cases. Both paid lots of money up front only to be left without an attorney at important moments in their cases. The following suggestions might help you select the right bankruptcy attorney for you.

Choose a member of the National Association of Consumer Bankruptcy Attorneys. NACBA is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy. Although being a member of NACBA does not automatically make someone a good bankruptcy attorney, I know how committed the organization is to making its members better attorneys and I have met a number a great fellow bankruptcy Continue Reading »

Should I reaffirm?

It’s more important now than ever to remember to “Pay yourself first.”

By: Jeena Cho

Have you been meaning to call for an appointment but afraid to? You might be wondering, what happens at a meeting with a bankruptcy attorney? Well, for one thing, I promise you, it won’t hurt a bit, and you might even feel better.

When you call our office, Chris, our receptionist will schedule a time for you to meet with either myself or my partner Jeff Curl. It will usually be about 1-2 weeks out.

We send you a two-page questionnaire to fill out and send to us before the meeting. It asks for basic information: amount of debt, amount of income, and assets/liabilities.

The meetings generally last from 45 minutes to 1 hour. Either Jeff or I will meet you personally. We don’t believe a paralegal can assess your situation as competently as an attorney can.

We do the following at the consultation: Listen, Ask, Answer, and Analyze.

Listen

Go ahead, Continue Reading »