It often happens, especially in today's economy, that a business fails. The tragic death of a company is mourned every day by someone. The only thing worse than losing your business is having your bankruptcy law firm close it's doors. Many owner/operators of law offices are forced to shut down every day in today's economy. We have recently seen the end of some bigger law offices here in San Diego. Where does that leave you, the client?
Lately, we have received some calls from people who's Attorney is no longer working and their cases have fallen through the cracks. We are here to pick up the pieces. Our three attorneys are always available to answer your questions. We may be a smaller office, but out business is built on a strong foundation. The Law Offices of Chang & Diamond has been in business for over a decade and we are not going anywhere. We will not let any case be ignored.
Call us today if you need help --we can get your case back on track.
www.thebklawyers.com or call at 619-233-6300 We're here to help, give us a call.
Thursday, August 26, 2010
Thursday, August 19, 2010
The Potential Downside to Loan Modifications
Here is the tragic story of clients #8938. This lovely couple had filed Chapter 13 bankruptcy since January 2009. They had successfully paid every month for about 16 months while they were working on a loan modification for their first mortgage.
"Finally!" they thought as the bank offered them a modification. The final step was to get the Trustee's permission (an Authority to Incur New Debt must be signed off by the Trustee in order to get a loan modification). The Law Offices of Chang & Diamond, APC looked at all of the numbers and noticed that this was not in the best interests of our clients.
By taking this offered Loan Modification Clients #8938 were losing 3 ways.
1. Their Chapter 13 plan was curing (paying off) all of the money that they were behind before the bankruptcy. By adding that amount to the end of the loan, as proposed, they would spend the next 30 years paying interest on that amount. Not good!
2. When their monthly mortgage payment would be lower as proposed in the Loan Modification the Trustee would see that they had more disposable income every month. Our clients thought that they could keep this money. That is not the case. All disposable income is dedicated to your creditors while in a Chapter 13 bankruptcy. They were saving nearly $1,000 every month. This money now went to the creditors that were not going to get anything before that money was available. Their monthly plan payment (the payment that is paid to the Trustee every month while in a Chapter 13 bankruptcy) went up --not good!
3. Lastly, when we took the mortgage arrears (the past due) out of the Plan Payment they now had EVEN MORE money to pay to creditors that were previously not receiving any money. Not good!
The Attorney's at Chang & Diamond stressed to our clients not to sign the Loan Modification paperwork, unfortunately our clients signed anyways. Months later though our clients agree that the loan modification was not the best idea. What had started out as a manageable plan payment had become a burden.
We estimated the total loss for clients #8938 at over $75,000 by taking the offered loan modification. Sadly, our clients had worked for over 16 months to get a loan modification and were not willing to let it go. They signed the loan documents and we were forced to amend their plan.
I wish there was a happier ending to this story. Please talk to an Attorney about the possible negative effects of filing bankruptcy.
Please call Chang & Diamond, APC for information on Chapter 13 bankruptcy and how that can help you save your home --even without a loan modification.
"Finally!" they thought as the bank offered them a modification. The final step was to get the Trustee's permission (an Authority to Incur New Debt must be signed off by the Trustee in order to get a loan modification). The Law Offices of Chang & Diamond, APC looked at all of the numbers and noticed that this was not in the best interests of our clients.
By taking this offered Loan Modification Clients #8938 were losing 3 ways.
1. Their Chapter 13 plan was curing (paying off) all of the money that they were behind before the bankruptcy. By adding that amount to the end of the loan, as proposed, they would spend the next 30 years paying interest on that amount. Not good!
2. When their monthly mortgage payment would be lower as proposed in the Loan Modification the Trustee would see that they had more disposable income every month. Our clients thought that they could keep this money. That is not the case. All disposable income is dedicated to your creditors while in a Chapter 13 bankruptcy. They were saving nearly $1,000 every month. This money now went to the creditors that were not going to get anything before that money was available. Their monthly plan payment (the payment that is paid to the Trustee every month while in a Chapter 13 bankruptcy) went up --not good!
3. Lastly, when we took the mortgage arrears (the past due) out of the Plan Payment they now had EVEN MORE money to pay to creditors that were previously not receiving any money. Not good!
The Attorney's at Chang & Diamond stressed to our clients not to sign the Loan Modification paperwork, unfortunately our clients signed anyways. Months later though our clients agree that the loan modification was not the best idea. What had started out as a manageable plan payment had become a burden.
We estimated the total loss for clients #8938 at over $75,000 by taking the offered loan modification. Sadly, our clients had worked for over 16 months to get a loan modification and were not willing to let it go. They signed the loan documents and we were forced to amend their plan.
I wish there was a happier ending to this story. Please talk to an Attorney about the possible negative effects of filing bankruptcy.
Please call Chang & Diamond, APC for information on Chapter 13 bankruptcy and how that can help you save your home --even without a loan modification.
Discharge or Non Dischargable --That is the Question!
Taxes
"The only thing certain is death and taxes" -Ben Franklin.
It often happens that for one reason or another you owe back taxes. The IRS can be relentless in their pursuit for payment. It may seem like filing for Bankruptcy would get the tax man off your back, but this is not necessarily the case. The Franchise Tax Board and the Internal Revenue Service really don't like to lose money.
How you can tell if your tax debt is likely to be discharged with a Chapter 7 bankruptcy? Here is a good rule of thumb. If you tax debt is more than 4 years old and was filed accurately and on time then those debts might be dischargable. The final say is still given to the IRS or Franchise Tax Board. In conclusion, some tax debt is sometimes dischargable -sometimes.
The Cost of an Education
Student loans are never dischargable. If a loan was granted for the purposes of education then currently that debt can not be discharged. Under any circumstance. I say currently because our good President Obama has put in motion some changes that may help the next group of broke -but educated- post graduates. The Wall Street Journal recently reported that student loan debt has now surpassed credit card debt. One can only hope that soon a person struggling for financial freedom will be able to discharge these debts also.
Support Payments
Child Support and Spousal Support are never discharged with bankruptcy. Unless you can prove that you do not owe those debts, they are yours to pay. The law specifically states that all debts "to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child..." will not be discharged in bankruptcy.
Since there are so many questions about what is dischargable and what is not, it is always best to consult a Bankruptcy Attorney. If you would like more information please feel free to drop in or call us. We are available Monday through Friday from 8:30 - 5:00, and we have Saturday morning hours at some of our offices. Call today at 619-233-6300 for a free consultation.
"The only thing certain is death and taxes" -Ben Franklin.
It often happens that for one reason or another you owe back taxes. The IRS can be relentless in their pursuit for payment. It may seem like filing for Bankruptcy would get the tax man off your back, but this is not necessarily the case. The Franchise Tax Board and the Internal Revenue Service really don't like to lose money.
How you can tell if your tax debt is likely to be discharged with a Chapter 7 bankruptcy? Here is a good rule of thumb. If you tax debt is more than 4 years old and was filed accurately and on time then those debts might be dischargable. The final say is still given to the IRS or Franchise Tax Board. In conclusion, some tax debt is sometimes dischargable -sometimes.
The Cost of an Education
Student loans are never dischargable. If a loan was granted for the purposes of education then currently that debt can not be discharged. Under any circumstance. I say currently because our good President Obama has put in motion some changes that may help the next group of broke -but educated- post graduates. The Wall Street Journal recently reported that student loan debt has now surpassed credit card debt. One can only hope that soon a person struggling for financial freedom will be able to discharge these debts also.
Support Payments
Child Support and Spousal Support are never discharged with bankruptcy. Unless you can prove that you do not owe those debts, they are yours to pay. The law specifically states that all debts "to a spouse, former spouse, or child of the debtor, for alimony to, maintenance for, or support of such spouse or child..." will not be discharged in bankruptcy.
Since there are so many questions about what is dischargable and what is not, it is always best to consult a Bankruptcy Attorney. If you would like more information please feel free to drop in or call us. We are available Monday through Friday from 8:30 - 5:00, and we have Saturday morning hours at some of our offices. Call today at 619-233-6300 for a free consultation.
Thursday, August 5, 2010
"I'm so broke I can't even afford bankruptcy!"
At Chang and Diamond we understand the situation you are in.
Many people call us every day with the same thoughts and fears about hiring an Attorney to file Bankruptcy. On a daily basis we hear clients expressing that "If I could afford to pay anyone, I wouldn't be in this situation. How can I afford to hire an Attorney to file Bankruptcy?"
Our Attorneys have been helping people get out of debt since 1998, so we understand the financial stresses that get a person to the point of bankruptcy. Unlike other offices, the Law Offices of Chang & Diamond works with clients to come up with a payment plan that works for everyone.
Sure other offices may say that they will accept payments, but what sets the Law Offices of Chang & Diamond apart from other bankruptcy Attorneys is that WE BEGIN WORKING ON YOUR CASE AS SOON AS WE ARE RETAINED! With a payment plan in place, we do all work necessary to prepare and file your bankruptcy petition.
We offer a free consultation to discuss bankruptcy and inform you of your options. Please call or drop in today.
We look forward to working with you to give you a fresh start.
Many people call us every day with the same thoughts and fears about hiring an Attorney to file Bankruptcy. On a daily basis we hear clients expressing that "If I could afford to pay anyone, I wouldn't be in this situation. How can I afford to hire an Attorney to file Bankruptcy?"
Our Attorneys have been helping people get out of debt since 1998, so we understand the financial stresses that get a person to the point of bankruptcy. Unlike other offices, the Law Offices of Chang & Diamond works with clients to come up with a payment plan that works for everyone.
Sure other offices may say that they will accept payments, but what sets the Law Offices of Chang & Diamond apart from other bankruptcy Attorneys is that WE BEGIN WORKING ON YOUR CASE AS SOON AS WE ARE RETAINED! With a payment plan in place, we do all work necessary to prepare and file your bankruptcy petition.
We offer a free consultation to discuss bankruptcy and inform you of your options. Please call or drop in today.
We look forward to working with you to give you a fresh start.
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