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 »

By: Jeena Cho

If you have fallen behind on your car payments and can’t afford to make up the missed payments, Chapter 13 may be a solution to keeping your car. Contrary to popular belief, bankruptcy is about restructuring your debt and helping you keep those secured property you can afford to keep.

Let’s take an example:
Suppose your monthly payment on a car is $500 and there is 30 payments left on it.
You are 3 months behind on your payment.
Current interest rate of 8%.

By filing for Chapter 13, we can restructure the debt as follows:

Stretch out the payments to 60 months, hence reducing the monthly payments.
Reduce the interest rate to approximately 4-5%.
Make up the missed payments over the course of 60 months.

By filing for Chapter 13, it’s possible to reduce the monthly payment to less than $250 per month over 60 months, hence (hopefully) making the vehicle affordable.

If you Continue Reading »

Many student loan lenders prey on students who are probably too young to understand the consequences of borrowing from the future.

By: Jeena Cho

When I was in law school, they opened a Starbucks in the student union. Instantly, I was addicted. Every break between classes, I would wonder over and order a venti soy Mocha Frappuccino. It was just the “cool” thing to do. After about a month of this bad behavior, I noticed two things. 1. I didn’t have money for groceries and 2. I was craving more Frappuccino. Initially, I thought someone had stolen money out of my account because the bank balance was much lower than where it should have been. After a little investigation, I was horrified at the fact that I had wasted my precious grocery money at Starbucks! Even at 2 cups a day at $4.75, that’s $285 a month!

I spent the next month tracking every dime I spent. Not just money I spent on Starbucks but on food, eating out, entertainment, clothing, Continue Reading »

by Brandi Bernazzani

Have you always wanted to be a saver but could never find the extra money?

If that describes you or your family, you are the RULE and not the exception in America.  Most people pay their major bills first and then spend as they need to and want to.  For the most part, unless people are in the habit of saving, they spend what’s in their account and sometimes more, regardless of how much they make.

If the idea of savings makes you cringe you’ve got to put a plan in place that automates the savings and removes the money from “your fingers” before you get a chance to find it a new home.

Here’s the solution in 3 easy steps:

1. Go to the web and find a reputable online savings account that offers these benefits and set up a new account:

a.      No fees to open or maintain an account
b.      Continue Reading »

By: Jeena Cho

One of the most compelling reason to file for bankruptcy is if you cannot afford to pay your monthly living expenses and your debt. There comes a point where a person has so much debt that no amount of budgeting or living on beans & rice will make a bit of a difference.

If you are reading this blog, you probably already know about the two different bankruptcy (Chapter 7 and Chapter 13). Many people think they don’t qualify for Chapter 7 bankruptcy because their income is too high. That is true but not always. It’s possible that an above median income earner can pass the Means Test due to payments on secured property, or high medical costs. If majority of your debt is non-consumer (meaning business related) you don’t have to pass the Means Test at all.

If the client does not qualify Continue Reading »

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. I can’t tell you the number of people that tell me they had no idea he or she had so much debt. Everyone, and I mean everyone should know how much debt he or she has. If you don’t know, make a list of Continue Reading »

By: Jeena Cho

Good people are good because they’ve come to wisdom through failure. William Saroyan (1908 – 1981)

Upon the conclusion of the winter Olympics this year, what really caught my attention were the stories of the athletes. My favorite stories are those athletes that failed before but came back to win. Everyone loves the underdog that comes back to win.

If there was one message I wish I can convey to every person contemplating bankruptcy, it is this: You are NOT a failure simply because you filed for bankruptcy. Just like the athlete that bounced back to win the gold after a severe injury, illness, drug addiction or scandal so can you. We meet on average 16 – 20 clients per week. Assuming 50 weeks, that’s over 800 people per year. This doesn’t count the phone calls and emails we get from people in financial distress. So I know a Continue Reading »

by: Jeena Cho

We’ve received several emails and calls regarding Mann Braken’s bankruptcy. Most common question being, “I was sued by Mann Bracken and they have filed for bankruptcy. What happens to my case?” First, it’s important to realize Mann Bracken was the law firm representing the plaintiff in your case. So, it’s not Mann Bracken suing you, but Discover, Chase, Bank of America, etc. Mann Bracken as the law firm has filed for bankruptcy, but the plaintiff in your case still has the claim against you. The law suit won’t be dismissed simply because Mann Bracken cease to exist. Most likely, the plaintiff in your case will get new counsel and the law suit will continue.

If you do have a pending case, it’s important to get legal representation in your case. We suggest you contact a lawyer regarding your particular law suit.

By: Jeena Cho

Tax season is right around the corner and this is a common question regarding tax refund. If you live in California and can use California exemption, chances are, you can keep your tax refund. The amount of property you can keep through bankruptcy is governed by exemption laws. Some states have its own exemptions (including California). Other states use the Federal exemption.

In California, clients have the option of using either the 703 or 704 exemption. 703 exemptions are great for clients without equity in their home. 703 has what is known as “wild card” of $21,825 that can be applied towards any property of the debtor. This includes potential refund from either the IRS or Franchise Tax Board (FTB). Certain items have its own separate exemptions, hence you do not need to use your Wild Card to protect it.

Let’s take an example. Suppose Jane has Continue Reading »