Bankruptcy is an option during tough times. If you’re deep in debt due a loss of employment, emergency repairs, or a divorce, you can file for Chapter 7 bankruptcy to receive a discharge of debts, if approved by the court. With a Chapter 13 bankruptcy case, some debt may be discharged while you’ll receive help […]
Debt Archives
Does Bankruptcy Clear My Tax Debt?
Bankruptcy can provide you with a way out of tax debt. But when it comes to the IRS, being cleared of unpaid tax debt is more complicated than a court-approved discharge of, for example, credit card debt. Filing for bankruptcy can reduce or eliminate federal and state tax debt, as well as back taxes owed […]
By Doing Nothing, Does a Creditor Violate the Automatic Stay in Bankruptcy?
Under Section 362 of the U.S. Bankruptcy Code, an automatic stay prevents creditors from collecting debts from a debtor. An automatic stay halts all actions, including repossessions, foreclosures, and phone calls, and is enforced by the bankruptcy court. Once collection actions are halted by the court, whether a creditor does nothing and still violates the […]
Top 9 Questions Couples & Partners Ask About Bankruptcy
The decision to file for bankruptcy is never an easy one. For married couples and those thinking about marrying their loved one, filing for bankruptcy can be even more complicated. Debt collection, foreclosure, and wage garnishment become not only personal problems, but your partner’s as well. To reduce the stress, here are answers to common […]
How Debt Affects Mental and Physical Health?
Studies have shown debt has a negative impact on mental and physical health. The health effects of financial distress are the same whether you live in poverty or earn a high income and reside in an upscale neighborhood. And, when you fall into financial distress, your employer is unlikely to provide more than a slight […]
How to Prepare for Chapter 7 Bankruptcy Meeting of Creditors
With most bankruptcy proceedings, it is an inevitability that you’ll have to meet with an attorney, a bankruptcy trustee and possibly creditors at some point in the process. When either individuals or businesses file for Chapter 7 bankruptcy the court will schedule a Creditors Meeting. Otherwise known as a 341 hearing, a Creditors Meeting is […]
Questions to Ask Your Loan Modification Lawyer
There are all sorts of loans. Car loans, student loans, small business loans…the list goes on. But the one that individuals seek the most assistance with is a home loan. Falling behind on mortgage payments isn’t all that uncommon. Sadly, homeowners still feel a sense of shame when they default on their mortgage and tend […]
New Year. No Debt! Is Bankruptcy a Good New Year’s Resolution?
Consumer debt surpassed $4 trillion in December 2018, according to the Federal Reserve. This includes revolving credit card debt, which now stands at over $1 trillion.1 At the end of 2018 alone, more than $41 billion in outstanding credit card balances was added. And, according to data from Experian, the average American has a credit […]
How Much Does it Cost to File Bankruptcy?
What Is a Charge-off?
At OakTree Law, our Los Angeles bankruptcy attorneys assist clients with various financial matters. If you think having high credit card debt or missing a credit card payment is bad, having a charge-off on your credit report is worse. A charge-off occurs when you’ve missed several months of credit card payments. The creditor has essentially […]