Kostopoulos Bankruptcy Law

Category: Bankruptcy

Can I file Bankruptcy while in the Military?

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Those in the military have the same right as any to file for bankruptcy relief and actually enjoy certain benefits over civilian debtors. On the other hand, filing for bankruptcy can also affect your security clearance in some situations.

Service members are offered federal protection in civil actions thanks to the Service-member’s Civil Relief Act, or SCRA. This act allows courts the right to put a stay or postpone bankruptcy and non-bankruptcy proceedings being taken against military personnel while they are on active duty. These protections are separate from the automatic stay normally provided by bankruptcies.

Exemptions from Means Testing

Normally, those looking to qualify for Chapter 7 bankruptcy need to pass a means test in order to disqualify those debtors who have enough disposable income to repay part of their debts from filing for bankruptcy. Disabled veterans, however, who have debts which were incurred mainly while on active duty, are not required to complete such a means test to qualify for Chapter 7.

Furthermore, National Guard members and reserve units of the armed forces who were called up for at least 90 days after September 11, 2001 are also excluded form a Chapter 7 means test while on active duty and for 540 days afterwards. Those who qualify must still complete the means test form no more than 14 days after the beginning of the 540-day exclusion period.

While your security clearance will not be affected automatically by filing for bankruptcy, it can factor into a decision regarding your clearance along with your job performance and relationships with superiors and coworkers.

Clearance decisions are made on a case by case basis but having a considerable amount of debt can be seen as a negative to your superiors. You should inquire into how your clearance may be affected before you even file for bankruptcy.

Kostopoulos Bankruptcy Law, our Oakland bankruptcy lawyers help clients in financial distress make important and positive decision to help manage their debt. If you are in the military currently or a veteran, speak with our firm for legal counsel!

Can I Buy a Vehicle After Filing for Chapter 13 Bankruptcy?

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After filing for bankruptcy, it almost feels like all big purchases are off limits. After all, your finances just underwent an intense amount of scrutiny and passed through the ringer, so to speak. While bankruptcy can make it more difficult to purchase items such as a car or a home, it’s certainly not impossible.

Can I Get an Auto Loan with an Open Chapter 13 Case?

Those who are looking to purchase a new car with an active Chapter 13 case are able to get a car loan under certain conditions.

There are two options to purchasing a vehicle after Chapter 13:

  • Wait for your bankruptcy discharge which doesn’t occur until the end of your repayment plan
  • Request permission from your trustee to take out a car loan before your discharge

The first option may take longer, but the second one can be infinitely more difficult. Many lenders are hesitant to give you a car loan if they know you just filed for bankruptcy and there are companies just looking to scam you out of your money.

Tips to Getting a Car Loan While in a Chapter 13

  • Plan and budget. Make sure that a monthly car payment is within your budget and won’t affect your ability to pay your payment plan. Stick to a reasonable vehicle that is affordable.
  • Review the options at your own bank first. If they’re unwilling to lend to you, it’s time to do your research. An attorney can simplify the process for you and may be able to recommend a trusted lender. You should also research your options thoroughly before signing any papers; the last thing you want is more financial trouble.
  • Be aware of guaranteed loans despite credit scores, wire transfer requests, and requests for fees right when you sign up. You can also check with the Better Business Bureau for further verification.
  • Get approval from the court. After you have a car loan lender, it’s time to obtain approval from the bankruptcy court. They will assess your bankruptcy income, the amount of the loan you’re applying for, and whether you have the means to pay that loan back over time. The motion you file with the court will go further into detail regarding your loan and the car you wish to purchase.

Getting a Car Loan After Your Bankruptcy Is Done

In some cases, it may make sense to wait until after your bankruptcy is complete to get a new car. By waiting, you can use this time to rebuild your credit and save up for a down payment, which can likely qualify you for better auto loan terms.

We’re Here to Guide you

Life after bankruptcy can be intimidating, especially when you have plans to commit to a large purchase. Kostopoulos Bankruptcy Law has the resources to make this process as seamless as possible. Not only have we been named as one of the Top 100 Firms by the Debt Education and Certification Foundation, we offer legal counsel in English, Vietnamese, Spanish, and Greek.

Call our Oakland bankruptcy lawyers today to receive award-winning legal counsel while purchasing your post-bankruptcy vehicle!

How Fast Does Bankruptcy Work?

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Once you’ve made the decision to file for bankruptcy, it is common to just want to get the entire process over with. But with so many varying opinions, is there any way to know how long it actually takes? There’s no doubt that every case is different and the timeframes vary from person to person. Regardless, the following information can at least give you the barebones of what to expect from start to finish.

How Long Does Chapter 7 Bankruptcy Take?

Chapter 7 bankruptcy can take as little as three months, but may last up to six months depending on the way that you file. In a limited asset case, creditors have nothing to follow up on and everything is said and done in roughly four months. For asset-based filing, the entire process may take longer because there is more to process.

How Long Does Chapter 13 Bankruptcy Take?

Chapter 13 bankruptcy on average lasts 3-5 years. This is due to the repayment plan each individual is required to complete before your debt is discharged. However, the quicker you’re able to repay your debt, the faster you can say goodbye to bankruptcy.

How Long Will an Emergency Bankruptcy Take?

Emergency bankruptcy is exactly what it sounds like: an option for people who want an automatic stay with haste. Not everyone can file, but for those who are interested, the necessary documents must be filled out within 14 days or your case may be dismissed. It’s much quicker than either Chapter 7 or Chapter 13 and is beneficial if you need an automatic stay immediately.

Talk to an Experienced Attorney

No matter what chapter you’re hoping to file for, Kostopoulos Bankruptcy Law wants to meet your needs along the way. Get in touch with our Oakland bankruptcy attorney for representation you can count on!

Liquidation vs. Adjustment: How Chapter 13 & Chapter 7 Bankruptcy Differ

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Filing for bankruptcy is a serious step. Before you make the decision, you should know what option is best for you. By understanding the differences between Chapter 7 and Chapter 13, you can make an informed choice before filing for bankruptcy.

Not only does the chapter you select influence your immediate financial situation, but it can also effect you in the future. For this reason, it is helpful to know how the two main consumer chapters differ.

What are the main differences?

Chapter 7 is frequently referred to as liquidation bankruptcy, as property will be sold to cover debts. To qualify for Chapter 7 bankruptcy, an individual must be below a certain level of income. Choosing Chapter 7 is basically like scrapping everything and starting over. While you may be able to qualify for certain exemptions for your property, a good portion of it will be liquidated in order to pay off any undischarged debt. In order to have your debts paid off, you must essentially give your bankruptcy trustee permission to sell any non-exempt property and distribute the proceeds to creditors.

In contrast, Chapter 13 is much more focused on readjusting or reorganizing debts and payment plans, rather than paying them off with personal property. You will file a repayment plan in order to pay off either all or a portion of your debts over a designated time period.

How much debt you must pay off will depend on a few factors, such as:

  • Your income or salary
  • The amount of secured and unsecured debts involved
  • How much property or assets you own

You won’t have to liquidate any property in this type of bankruptcy plan, which means individuals can often avoid foreclosure and keep their homes when filing Chapter 13.

Take Steps Towards Financial Freedom

If you have questions about which chapter of bankruptcy is right for your financial situation or would like to learn more, be sure to contact Kostopoulos Bankruptcy Law today for counsel. We are Certified Bankruptcy Specialists and have assisted thousands of clients in the past!

Financial freedom is just a phone call away. Get in touch with our legal team today to discuss your case.

What Type of Debt Can Be Discharged Through Bankruptcy?

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If you have found yourself struggling under a mountain of debt and are unable to keep up with your financial obligations, you may be wondering whether bankruptcy is right for you. Our firm has represented clients in more than 6,000 bankruptcy filings and we have helped countless individuals in and around the San Francisco become debt free. The Debt Education and Certification Foundation (DECAF) has named us as one of the Top 100 Firms and we are one of only a few firms that has a board certified bankruptcy specialist as part of their legal team. We understand how devastating it can be to find yourself on the edge of financial ruin, with creditors harassing you non-stop, in fear that you will lose your home to foreclosure and with no viable solution in sight. During your initial consultation we will be able review your financial situation, analyze your debt and advise you as to whether you qualify to file for bankruptcy protection.

If you qualify to file for a Chapter 7 bankruptcy, you will be able to discharge the majority of your unsecured debt. Medical debt, credit card debt, personal loans, revolving lines of credit, certain student loans, auto accident claims, personally-guaranteed business debt, past due rent, and past due taxes that are more than 3 years old, are the most common types of debt discharged through Chapter 7. With this type of bankruptcy, our San Francisco bankruptcy attorney will work diligently to help maximize your exemptions to improve your chances of keeping the property and assets you value most.

There are instances in which filing for Chapter 13 bankruptcy may be a more practical option. There are also certain debts which can be discharged in Chapter 13, but not Chapter 7. These include marital debts stemming from a divorce or settlement agreement, court fees, debts resulting from loans taken from a retirement plan, HOA or Co-op fees incurred after filing for bankruptcy and more. In a Chapter 13 bankruptcy you will be required to pay priority debts such as child support, alimony and recent taxes, however other unsecured debt that will not necessarily get paid off as part of your Chapter 13 repayment plan, will be discharged upon completion of your bankruptcy proceedings. If you want to find out which of your debts may be eligible for discharge, call Kostopoulos Bankruptcy Law today.

The Most Common Reasons to File for Bankruptcy California Bankruptcy

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If you are wondering whether bankruptcy may be right for you, we advise you discuss the matter with a certified bankruptcy specialist. Kostopoulos Bankruptcy Law is one of only a few San Francisco law firms that have a bankruptcy specialist on their legal team who has been certified by the American Board of Certification. Having represented clients in more than 6,000 bankruptcy cases, we have the expertise necessary to answer your bankruptcy-related questions and help you navigate through the bankruptcy process.

Continue reading “The Most Common Reasons to File for Bankruptcy California Bankruptcy”

Bankruptcy Exemptions in the State of California

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California’s unique approach to bankruptcy allows residents to choose state-specific exemptions instead of federal ones. These exemptions play a crucial role in protecting your assets during the bankruptcy process.

Continue reading “Bankruptcy Exemptions in the State of California”

Overview on Debt Settlement

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There is no question that the emotional and psychological effects of debt can be devastating and impact numerous aspects of a debtor’s life. Debt can affect your ability to have a nice dinner with friends to your ability to go on a much needed vacation or pay for everyday living expenses. Having too much debt can take the joy out of living.

Given the economic downturn that has impacted millions of Americans and homeowners, especially in the sunshine states such as California, Nevada, Arizona and Florida, it’s not surprising that so many debtors are considering their bankruptcy options or their alternatives to bankruptcy. One such alternative to the traditional bankruptcy is called “debt settlement.”

One of the greatest things about the financial industry is that virtually everything is negotiable. Even if you think an interest rate or a price is set in stone, sometimes getting a discount or a reduction in fees comes down to knowing when and who to ask for it.

Debt settlement is the process of offering a large, one-time payment towards an existing debt in exchange for the forgiveness of the remaining balance. For example, if you owe $30,000 on a hospital bill and we approach the hospital and offer a one-time payment of $20,000. In return for this one-time payment, the hospital agrees to forgive the remaining $10,000.

Why would a hospital be willing to accept a $10,000 loss? Hospitals frequently provide medical services that they are never paid for, especially when the patients are uninsured or cannot afford to pay their bill. The hospital is trying to protect their bottom line, which is a key fact to remember during negotiations. Since creditors such as hospitals or credit card companies represent unsecured loans, there is no “collateral” for them to seize in order to help repay an unpaid balance.

Getting a creditor to accept a settlement on a balance may seem too good to be true, but it’s possible. Lenders don’t generally like to advertise settlement, but if you’re quickly falling behind on your payments and heading towards bankruptcy, your lender may be willing to take whatever they can get, giving you one last opportunity to get back on your feet.

If you are considering debt settlement as an alternative to bankruptcy, it’s important to discuss this option with a qualified professional from Kostopoulos Bankruptcy Law. Not only are there specific procedures that encourage a successful debt settlement, if handled improperly, the creditor may accept a payment yet continue to collect on the remaining debt, which would defeat the purpose of debt settlement.

Contact us today to discuss debt settlement as well as all other viable debt relief options that can put you on the track to a financial fresh start!

Welcome to Our Bankruptcy Blog for Oakland!

Posted on by Kostopoulos Bankruptcy Law

Are you facing a financial hardship? Do you feel overwhelmed by debt? If so, working with Kostopoulos Law Group — Kostopoulos Bankruptcy Law can help! Our team is comprised of caring, experienced and understanding legal professionals who stand ready to ensure that you receive a favorable outcome for your case. We have 10 years of experience handling a variety of bankruptcy-related issues and we may be able to help you as well. If you have been contemplating bankruptcy, we encourage you to work with our team!

Recently, we launched our new user-friendly website, and to correspond with the site, we proudly announce the launch of this new blog. This blog will be updated periodically to provide information and up-to-date content for Oakland residents regarding bankruptcy and our own case results. Check back soon, and in the meantime, contact Kostopoulos Law Group — Kostopoulos Bankruptcy Law and tell us your story. We may be able to help!