Jeena and Jeff speak with financial advisor, Brandi Bernazzani. Brandi explains the “debt diet” and how to lose debt. Jeena talks about killing her addiction to Starbucks. Other topics include – how to start saving, responsibly using credit card (or freezing it), and money saving tips.

You can contact Brandi by calling (415) 664-5884
or email her: bbernazzani{at}buildingaroadmap.com

Click to play:

Disclaimer: Unfortunately, it is impossible to give legal information over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.

By: Jeena Cho, San Francisco Bankruptcy Attorney

If your are at risk for losing your home due to missed mortgage payment, Chapter 13 may be a way to save your home. In a Chapter 13, you are given up to 60 months to “make-up” the arrearages (missed payments) on your home. Let’s take a simple example. Suppose your monthly mortgage payment is $3,000 and you have missed 6 months of payment. Assuming you qualify for Chapter 13 bankruptcy, you will be given up to 60 months to repay the $24,000 ($3,000 x 6).

There are some practical considerations – namely “feasibility.” In non-lawyer speak, that’s simply asking “can you afford the monthly payment?” Going back to our example, if you cannot afford the  approximately $400 per month ($24,000/60 months), you cannot file for Chapter 13.

Another benefit to Chapter 13 is that we can “strip” or remove the second mortgage on your home assuming the fair market value of your home is worth less than the first mortgage.

For example:
1st mortgage – $500,000
2nd mortgage – $200,000
Fair market value (FMV) – $350,000

Since the FMV of $35,000 is less than the first mortgage, we can “strip” the second mortgage of $200,000. Assuming you complete your Chapter 13 plan, you will be left with just your first mortgage upon completion. Remember, your second mortgage will not be stripped unless you make every single Chapter 13 payment.

Disclaimer: Unfortunately, it is impossible to give legal advice over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.

Written by San Francisco Bankruptcy Lawyer, Jeena Cho

I meet with many people that remain in the denial stage for a long time and hoping that something will change. Maybe he will get a big bonus, or win the lotto, or will find a better paying job. Oftentimes, the client will go on for months or years, hoping that the situation will magically change. Of course, most often, it does not. In the meantime, the client is burning through his precious resources to stay afloat.

It’s similar to a tooth decay. I have for years avoided going to the dentist. I had tooth aches but I just thought “Oh, it’s nothing. I’m fine.” (Denial.) When the pain became unbearable, I finally went to the dentist. As expected, the news was not good. I needed several fillings but (good news was) I did not need a root canal… yet. I was angry – at myself, and at the dentist.

At that moment, I had a choice. Go and fix the problem, once-and-for-all, or continue to live in denial and face a more painful and costly root canal down the line. Of course, had I gone to the dentist sooner, I may have been able to avoid some of the cavities as well.

Similarly, financial problems don’t get better by itself. You must be proactive and deal with it in order for it to get better. So, don’t delay. Take action today.

By: Jeena Cho, Bankruptcy Lawyer

When you hire a bankruptcy lawyer, you are not just hiring someone to fill out the bankruptcy forms. If you wanted someone to simply fill out the forms, you can hire a document preparer for a couple hundred dollars. What you are paying for is the attorney’s knowledge about the bankruptcy law.

So, what goes into planning for a bankruptcy? Why hire an attorney for your bankruptcy?

Here are few items to consider.

1. Timing. As with most things in life, timing is everything. Many potential problems with bankruptcy can be avoided by properly timing the bankruptcy. Just as an example, I review my client’s most recent credit card statements to see if there are any red flag items. If there is, I may recommend waiting.
2. Exemption. Exemption govern the property you can keep through bankruptcy. If you have “non-exempt” property, we may consider Chapter 13 to keep those assets. Sometimes, it may be possible to convert the non-exempt property into exempt property. There are certain property that is not considered property of the estate, for example, certain retirement funds, college education fund, etc.
3. Calculate the Means Test. The Means Test is not as straight forward or simple as it may seem. There are additional deductions not reflected on the test that needs to be taken into consideration. For example, older vehicles may have an additional $200 deducted. If more than 50% of your total debt was incurred for a business, you may not have to pass the Means Test at all.
4. Help if things go wrong. My job, first and foremost is to review your case to advise you of any pitfalls or potential problems with your case. Of course, if at all possible, we want to avoid problems to begin with. But, should your case go sideways, your attorney will be there to advise you on a best course of action. Some potential issues include a Motion to Dismiss by the United States Trustee. In general, it’s much more difficult to hire an attorney once there is a problem with your case.
5. Having an advocate. It’s comforting to have someone on your side when you’re going through a difficult experience. Someone to go to when you have a question or concern. Someone to be on your side – to be your advocate.

For more information on how to choose a bankruptcy attorney, see Choosing The Right Bankruptcy Attorney.

Disclaimer: Unfortunately, it is impossible to give legal advice over the internet, no matter how well researched or written. Before relying on any information I give, contact a lawyer to discuss your particular situation. I am a San Francisco bankruptcy attorney. The information given is based on California law.

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, 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, tell us your story. What happened that led you to this point? Tell us the obvious, but also tell us about you. What do you do? What do you enjoy? What are you passionate about? I listen to people all day long and I love it.

Ask

I’ll ask you questions so that I can assess your situation and make sure I did not miss any important details.

Answer

Of course, you’ll have questions for me. I will do my best to answer all of your questions. Sometimes, a referral may be in order. I only practice bankruptcy law. I can’t help with tax, real estate, family law, immigration, etc. I have good people I can refer you to.

Analyze

The next step is for me to analyze your situation to determine if bankruptcy is an appropriate solution for you. We will also discuss other alternatives (if any). Just as it would be unethical for a doctor to recommend an unnecessary surgery, it would be unethical for me to recommend bankruptcy unless I believed it was in your best interest. We build our practice based on trust, and by exceeding your expectations so that you will refer your friends and family.

One other important thing to add is that the meetings are privileged - meaning whatever you tell me can never leave the room.

Disclaimer: We are San Francisco bankruptcy attorneys. Unless you have hired JC Law Group as your attorney, there is no attorney-client relationship. This article is not intended to be legal advice. Please consult with a San Francisco bankruptcy attorney about your particular situation.