Yes, there are only three reasons and all of them guaranteed to benefit you.  Besides, when you are able to locate your financial information before you begin your bankruptcy petition, now you’ve saved all the easy work as the last step!

First of all, complete financial information means an assurance of accuracy.  Although your attorney will be present with you as you go through the short hearing process, you must supply all the documents to back up your petition.  When your case is presented accurately it will maximize the protections that are available for you.

Second, you won’t have surprises or disappointments.  You don’t have to endure any “bad things happening to good people.”  To knowingly withhold or fail to provide books, documents, records, and papers relating to your property or financial affairs is not allowed under the bankruptcy rules.

Third and last – this organizing project makes you more prepared for future financial projects.  Yes, this is another gift that keeps on giving.  Once your debts are discharged in bankruptcy, you have a set of basic financials that will help you present books and records in other settings.  This is going to save you time and money in any future financial transactions, from accounting for loans, for business, real estate, and school, to budgeting for savings, taxes, vacations.  This will be a big benefit for the self-employed, but being organized can help anyone at any time.

Here are the five main categories of information needed for your bankruptcy filing:

1. List of debts along with how to contact creditors.
2. List of what you own (assets) with information as to its worth.  (You will get help to determine an asset’s value) This list will include both real estate and vehicles, as well as intangibles (insurance policies) as well as tangible property (like household items).
3. Your income for the past 6 months:  this would include pay stubs or, if you are self-employed, profit and loss statements.
4. Your monthly expenses (A list of common expenses is readily available at your local bankruptcy website)
5. Your tax returns filed for the past at least 3 years (4 years for Chapter 13 cases).

No need to be overwhelmed by what looks at first to be complex and burdensome, too time consuming to begin.  An experienced bankruptcy attorney will be able to answer your questions and explain how to complete any forms, as well as describe the process in detail.

Our law office in Sacramento focuses on Chapter 7 or Chapter 13 bankruptcy for debt relief.  We invite you to call or email to discuss your individual circumstances.  Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com.

Although bankruptcy filings were down five percent nationally from February of 2012, they were still 19 percent higher than January 2012, according to the report released on March 7, 2012.  Business bankruptcy filings increased 3 percent, while personal bankruptcy filings went up by over 20 percent.

According to the report, 3.73 of every 1,000 Americans filed bankruptcy in February  In California, that number was 5.28 of every 1,000 residents.  The only states that had higher percentages were Tennesee, Nevada, Georgia and Alabama, respectively.  Our law office in Sacramento, CA noticed the spike in filings in February as well.

Although many reports suggest that both employment rates and home prices are steadily rising, a representative for the American Bankruptcy Institute stated in a press release that unemployment coupled with the stagnant housing market led to the increase.  There are real indications that our economy is improving, but these numbers prove that many Americans, particularly Californians, are still struggling to overcome their debt.  I believe the increase in filings also reflects how many debtors tried their hardest to avoid filing bankruptcy, but ultimately realized that in these times it is not a battle they could win.

As an Attorney I have also noticed that many people put off bankruptcy and then wish that they’d done it all along.  They spend their savings, borrow from their 401ks, lose their cars and homes, and have their wages attached.  They put off paying things that are not dischargeable in bankruptcy like student loans and fines trying to pay off their other bills, and then end up with penalties and interest that can double and even triple the original balance.

I respect that many people want to wait to file bankruptcy until there is no other option, but I also have seen firsthand how devastating it can be to realize that the payments and efforts put in ultimately were wasted.  I have seen how the banks refuse to work with their clients and frequently significantly raise interest rates, fees and penalties.  There is nothing wrong with exercising your legal right to file bankruptcy and take the first steps towards financial freedom.

If you are one of the many Californians who is considering filing bankruptcy, it is important to retain an Attorney with the experience and legal knowledge to help you obtain a successful discharge and a fresh financial start.  Please contact The Ranchod Law Group in Sacramento and San Francisco at 916-313-9069 or via email at info@california-bankruptcyattorney.com.

First, if you have not had any medical issues I urge that you go out and purchase health insurance.  If you already have medical bills what are you supposed to do when medical bills pile up and you don’t see any way to ever pay them off?  Is bankruptcy an option to deal with insurmountable medical debt?

The high cost of medical care, lack of health insurance, unexpected illness and disability and chronic medical conditions have caused many Americans to fall deeply into debt.  Even if you  have always been the type of person who paid their bills on time and didn’t make unnecessary purchases, no one is immune from the financial nightmare that even one unexpected illness or injury can cause.

More than a million people file for bankruptcy every year, and national statistics show that more than half of them have experienced some kind of serious health issue.  A study by Harvard University researchers on medical bankruptcy found that 62% of all personal bankruptcies filed in 2007 were the result of medical problems.  Even more surprising was that 78% of those filers had medical insurance at the start of their illness or other medical problem.  60.3% of the 78% had private health insurance, not Medicare or Medicaid.

What happens to these medical debts when a bankruptcy is filed?

The answer is that it is treated the same as other “unsecured debt”, which is debt that does not have any collateral attached to it, such as most credit card bills and personal loans.  When someone files a Chapter 7 their unsecured debts are 100% wiped out, or “discharged”(some unsecured debts are not discharged such as student loans).  This includes all medical bills.  If a Chapter 13 is filed, all unsecured creditors are repaid the same percentage of the debt, which is determined by your income and other factors, and the remaining balances are discharged.

It is important to tell your Attorney about all of your pre-filing medical bills, even if you have not yet received the bill or know what the amount you owe will be, so that they are notified of the filing.  Although Chapter 7 bankruptcy is usually considered “all inclusive”, there are some cases where the debt is not dischargeable if the creditor was not notified.  It also costs money to add creditors to the Petition once the case is filed.

Hundreds of thousands of people file bankruptcy each year due to insurmountable medical bills.  There is nothing to be ashamed of if you are considering filing as well.  The Federal Government recognizes the financial hardships many Americans face at one time or another, which is why bankruptcy is an option.

If you are considering filing bankruptcy due to medical bills or other reasons, it is important to retain an Attorney who can use their experience and legal knowledge so you can obtain a successful discharge and a fresh financial start.  Please contact The Ranchod Law Group in Sacramento at 916-313-9069 or via email at info@california-bankruptcyattorney.com

First of all, not all financial problems require a bankruptcy solution.  Many dips into the “valleys” of life, where challenges first appear as insurmountable, are quickly and easily handled by just more knowledge about what to do.  Knowledge is indeed power, power to overcome difficulties as a result of knowing about courses of action that will predictably lead to reliable solutions.

Predictable results:  that’s what a legal procedure is all about – given the facts of the case, the ability to foretell the outcome of the matter.  The Bankruptcy Code has made rules for obtaining debt relief which already take into account issues of fairness.   These rules will be applied to everyone equally in recognition of the fact that financial difficulties can happen to anyone.  Bankruptcy is not a moral issue as far as the Bankruptcy Code is applied.  Anyone who qualifies for bankruptcy relief, can count on receiving the discharge of debt available under the rules.

Reliable Solutions: Anything reliable will give the same result over the course of repeated trials.  The two solutions offered to individuals with overwhelming consumer debt [debts owed as a result of purchasing goods that are consumable and/or do not increase in value] will take different periods of time to arrive at debt solution.  Why would anyone choose the slow and steady course of a Chapter 13 over a relatively quick course of a Chapter 7 bankruptcy?  The answers can be explained best in regard to your situation, but in either case you can count on obtaining a much-needed financial “fresh start” upon successful completion of your case.

Here’s the bottom line fact:  finding out that you qualify for a bankruptcy solution means you can count on it to be predictable and reliable whether you choose to file Chapter 7 which liquidates debt (with restrictions) or a Chapter 13 which sets up an affordable payment plan (with less restrictions as to assets retained or income limits).

Our law firm focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

When I hear about some of the tactics used by collection agencies today, the descriptions are going beyond just being aggressive, bothersome, or irksome – they often border on unethical and unfair practices.  After all, the economic situation that touches us all has certainly spilled over to make a vast increase in delinquencies in debt repayment.

Debt collection is just another job with the goal to obtain money as payment now.

Debt collectors are people too — people with jobs and pay increases linked to their success as collectors.  As you might imagine, some of these collection techniques include an over-abundance of phone calls, letters that contain scare tactics, even threats — all with the goal to wear you down so you agree to pay them something in order to stop, at least temporarily, the barrage of pressure and intimidation.

Here are the simple facts:  Many of these debt collection methods are not legal and you do not have to be helplessly enduring them as though being in debt excuses others to treat you disrespectfully.  Being in debt is not a crime and you do not deserve punishment.

Here’s the basic outline of your rights from the FTC, a government website dedicated to consumer protection.  Some of the FAQ answered here are:  (1) What practices are off limits for debt collectors? (2) Do I have any recourse if I think a debt collector has violated the law? (3) Where do I report a debt collector for an alleged violation?

Although there are types of debt collection techniques that are not legal, the majority of them still are.  Even the types that are illegal are still often used because it can be very hard to get anything done about it.  These kinds of debt collectors thrive off the fact that we are all very busy and it is hard to find the time to report them even if you do know the proper channels.

If you are facing debt collectors, garnishments, freezes on your bank accounts, or foreclosures on your house, we can assist you in doing what is needed to stop these procedures.  Our caring staff is experienced in getting you through this difficult time and devoted to see the goal reached:  you — back on your feet financially.

By contacting our law firm, we can help you determine your options and action plans in light of your income, assets, and the nature of your debts.  This analysis will enable you to best use the provisions under a Chapter 7 or Chapter 13 bankruptcy to achieve your financial goals.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

As someone listens to why people seek debt relief through filing a Chapter 7 or Chapter 13 bankruptcy, I think I have a few clues.  When it comes to a financial crisis and what to do about it, our upset feelings frequently get in the way of acting.

Rather than face our painful feelings and plan a way to solve our financial distress, we prefer to wait and see, maybe hoping it will go away.  We even develop expectations based on wishful thinking.

Here are three wishes commonly hoped for by those who face financial problems due to debt overload:

1. Hoping your creditors will become your buddies.  Sure, they are willing to lower interest or spread out monthly payments over more years, or even settle for a considerably lower lump sum payment.  And, of course, whatever deal you make with them is aimed at delaying you from filing bankruptcy.  Your credit card issuer, your mortgage lender, your banker – all are in business to make a profit.  And they are in business only if they make a profit!

2. Hoping your conscience will change its tune of disapproval.  You’re not going to get rid of your programming – you’ll always hear the disapproving voice of conscience that tells you about “bad” and “good” behavior.  Debt was good when you needed it; now it’s bad when you cannot pay it.  Bankruptcy as a debt relief tool is bad when you don’t need it, but is a breath of fresh air when you are suffocating in bills to pay.

3. Hoping the lottery will come through to your rescue “just in time”!  This siren call of a possible way out just over the horizon is one of the hardest temptations to overcome.  Waiting for things to get better does actually work . . . eventually.  But in the meantime, things can get worse, much worse.

Find out how a Chapter 7 or a Chapter 13 bankruptcy might be the right tool to deal with unmanageable debt.  And find out how you can use this tool to deal with your specific financial emergency.

Our law firm focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

But my clients wouldn’t even come to me if they felt their financial situation was “under control.”

No, my clients come to me because they feel stressed, to say the least.  The majority are facing the pressing problem of creditor communication which can easily be described as “harassment.”  Some households receive calls made by robotic call centers, others get threatening letters, or even knocks on the door from a process server.

Maybe creditor contact is limited to phone calls.  That’s not a little thing – to be regularly called (whether you answer or not) is a big distraction to anyone thinking how to move ahead and go on to more pressing concerns relating to your job, family, school – any plans for the future.  Fortunately, change is a fact of life.  Being stuck in money problems will not last forever, that is for certain.

But then there’s the other extreme, the one where everyone (me, my staff, the client) wish we had known about the situation sooner.  There is a point past which we cannot turn the clock back or recover assets exempt from creditor claims which could have been retained, but now are lost.

Here’s the bottom line:  financial problems don’t come as part of your life plan.  If we could, smart people would get “debt insurance” when they had money to pay for it and then relax and let their insurance company pay their bills whenever they were financially strapped.  No one would be stressed by job loss, business slow-down, medical interruptions, an increase in prices (food, gas, you-name-it) that throws their budget into chaos.

So where are you on the timeline of desperation: just sick and tired of going nowhere with a plan to get your finances back on course and in control – or terribly desperate to fix this worn out machine that’s taking your debt overwhelm from bad to worse?

The Ranchod Law Group focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

What to do if you experience overwhelming “Time Debt” which needs relief right away

This running around has to stop.  Being overwhelmed by urgency may be appropriate when we face something urgent, but eventually it creates a diminishing effectiveness and has to stop.  The federal government has recognized overwhelming debt as a legitimate situation requiring debt relief and provides it through a Chapter 7 or Chapter 13 bankruptcy.  These legal procedures will give breathing space (the automatic stay) which provides time to think how you’re going to increase income and decrease expenses by working “smarter, not harder.”

Thus, financial debt relief includes time debt relief.

A fresh start affects both financial and time management

Another name for the legal procedure known as bankruptcy is a “fresh start.”  When this opportunity for debt forgiveness is taken seriously, one’s overall lifestyle will contain a healthy, balanced plan for time and money management.

It doesn’t happen automatically.  The process takes effort and education.  But it is a choice that goes beyond immediate relief and can continue beyond the discharge of debt allowable by the Bankruptcy Code.  How and if this will happen is up to anyone who is “sick and tired of being sick and tired.”

The Ranchod Law Group focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

If you could somehow stop dealing with ongoing, overwhelming debt , you’d have more money, and more productive time, to move forward with life, making one’s daily efforts count towards creating a future instead of paying for a past.

From the perspective of best use of your time and resources, a fresh start can be a productive and wise decision. Filing for A Chapter 7 and Chapter 13 bankruptcy can provide you with a fresh start by eliminating many types of debt.

Of course, bankruptcy is a serious action with consequences that you should evaluate prior to filing bankruptcy. And consumer bankruptcy, whether a Chapter 7 liquidation or a Chapter 13 payment plan, doesn’t wipe out all types of debt. But it does place you in control of more of your money.

And you can make different plans for your future, both in terms of time and money, when you consider the facts and understand your unique debt circumstances and what a fresh start could mean to you.
Financial Freedom Law focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com

Problem:  Not enough money to pay bills.

It was described as looming “insolvency” – the headline from the LA Times gave the specifics as: “Stockton council weighs plan to forestall city’s insolvency.”

There’s always the option of filing for bankruptcy protection, but first they sort out who and how much they are able to pay.  The next step is to develop a plan for priority payments.

One fact that has become obvious — budget cuts do eventually trickle down.  Cities are not receiving the money from federal and state sources that they used to, as evidenced by these headlines:

“Unable to pay their bills, states, cities, towns and villages scramble to stay afloat”

and

“Unpaid State Bills Shift Burden to Local Governments”

Both of these headlines were from 2010 articles and came from the northeast.

Now it’s 2012 and a major California city is feeling the same fallout.

What is the likely immediate effect on the people of Stockton?

More budget cuts.  Less services that have been there to help out people already on a tight personal budget.

If you will be one of those who will feel this effect of budget cuts, now may be the time to evaluate your resources, forge a plan for debt reduction, and add a plan for income increase as well.

The Ranchod Law Group focuses on Chapter 7 and Chapter 13 debt relief and invites anyone who is spending too much time dealing with creditors, and not enough time dealing with the next steps to financial recovery, to call or email to discuss your individual circumstances.

Please contact our Sacramento office at 916-313-9069 or via email at info@california-bankruptcyattorney.com