Articles Posted in Bankruptcy

Many people are under the mistaken belief that you can only keep one car in bankruptcy. While the bankruptcy code in California only give you an exemption for one car at $3550 this does not mean that you can only keep one car. I have had clients with 8 cars that have filed chapter 7 and kept them all. Because california has a wildcard exemption for 23,500 its not a question of how many cars but how much value in your cars that you can exempt. Many people have financed cars with no equity in them as they owe the banks more than the cars are worth. Under that analysis you can have as many cars as you have financed as its of no value to the estate since its your equity position in the car that the trustee cares about and not the cars that are overly financed. The wildcard exemption can be pieced and parceled however you like so if you have a car worth 10k we would use the 3500 for the car exemption and the 6500 for a wildcard exemption which would still leave 17k on the wildcard. We could then exempt 2000 dollars that you have in the bank which would leave 15k on the wild card. You could have 5 cars worth 3k a piece and then that would use all the exemption amount. So you can see by my examples its not a matter of how many cars but what the values are and if we can protect everything with the wild card exemption as well as the car exemption. Call my office if you have further questions as to what you can keep in bankruptcy.

This is a very busy time for my bankruptcy practice as many of my clients are using their tax refund to pay the bankruptcy fee that they have needed to do for a while. Having a big lump sum of cash come into your account when you have had financial issues can be a big help and rather than spending it to pay down creditors or for other personal reasons, bankruptcy might be the right decision and a good place to park that money. My fees typically start at $1000 for attorney fees for simple cases. Filing fees and pulling your credit to populate my software is $330 and the two credit counseling fees that I recommend to people and which are mandated by the bankruptcy code will end up costing you $31. So for a simple case $1367 is the total out of pocket cost for your bankruptcy. Many times people tax refunds are suffice to cover this and you can move on with your fresh start and get your financial future on track in 2012. When you are living pay check to pay check and can barely find the income to pay creditors then bankruptcy is most likely your best decision that you can make. Call my office if you are in the situation and we can discuss options to help you move forward with a chapter 7 bankruptcy.

When doing google searches about Palm Springs Bankruptcy attorney’s I seem to find more and more attorneys who are paying to advertise via the web in Palm Springs regarding bankruptcy service but do not live or practice in Palm Springs. Many of these law firms use virtual offices and have a paralegal show up once a week to do the intake process. I don’t have any issues about taking cases out of town and actually do practice in all four federal districts doing chapter 7’s in all four but 13’s only in the Northern and central District, but I do recommend that if you are going to hire an attorney for something as intimate and potentially consequential as bankruptcy that you are dealing with an attorney and not a mass marketing mill that strives to take your money with little consequence to what happens with your case. Many attorney need paralegals to do the day to day work such as correspondence, drafting letters, filing cases, entering data etc. I have heard more and more from clients who have gotten their cases dismissed that there was a lack of communication between the paralegals and the attorney managing their cases which sometimes has gotten their case dismissed. I have had at least 3 cases in the last month from people in palm springs who have filed bankruptcy with attorneys who are an hour or more drive and have had communication break downs which lead to case dismissals and in one case a house which was sold at auction because an attorney didn’t file an response for a motion for relief from automatic stay. Make sure that whoever you decide to use in your bankruptcy that they have your best interest at hand. There is some money to be made in bankruptcy these days with as many cases as we are seeing, but my belief is that if you want to make this a lasting practice you have to take a very individual approach with each client which I strive to do, even as I get busier. Call my office at 760-459-2438 and you will speak with me directly. I live and work in Palm Springs and plan on staying in bankruptcy for the long haul and you will see that in my personal service and attentiveness that I take on your case. Although we will get out of this recession and tough economic times, there will always be failed businesses, divorce, medical issues and the standard things that cause people to file bankruptcy. The mills will fade and the sole practitioner who is serious about bankruptcy will rise to the top and that is how I am building my practice.

The general rule in bankruptcy is that the most recent tax return needs to be turned into the trustee one week before the 341 hearings. Failing to do so can get your case dismissed or if you are lucky the trustee will give you a few days to do it and continue your case. If you comply with the tax return requirement then they will remove the continued date off calender and everything moves forward to you getting a discharge. That is if you file your 2nd credit counseling class along with the B23 certificate where you swear that you took the class and put the certificate number etc. These are some of the things that pro se(clients that represent themselves) forget to do and end up getting their cases dismissed. Looking up the local rules on the bankruptcy court website can help but the more prudent aproach in my opinion is to hire someone to do it for you. As a riverside county bankruptcy attorney I do this every day and make sure that everything is done correctly. Today I was in court for 3 cases and one one of them my client gave me a declaration that they were not required to file tax returns for the previous two years because they made under the 9k IRS limit which allow you to not file. I have dealt with this before with clients just making social security income or low income enough to not file. What I have typically done is just file a declaration claiming them exempt from returns. Today the trustee told me that I was in his opinion still required to mail the most recently filed return which was for 2008. I will do that tomorrow and the case will move forward smoothly. Even a seasoned practitioner can be challenged and he might be right. I find it hard to believe that the trustee would be interested in the income my client made three years ago as its irrelevant to the current bankruptcy case but if that is what he wants then I’ll be faxing that to this office tomorrow. Typically I have my clients file tax returns before we file. I might go back to that.

The actual costs to file bankruptcy in Riverside County or anywhere for that matter is $299 for a chapter 7 and $274 for a chapter 13. There are also two classes that are now required by the bankruptcy code and some providers charge up to $50 dollars but I have found two that are reasonable and that you can do for $5 and $15 for the second class. I charge people $30 for an individual and 50 for a joint couple to pull their credit reports which then downloads all creditors into my software. Essentially then for me there are $350 dollars in fees that go out of my pocket to file a case on behalf of my clients. Most bankruptcy attorneys start the fees at $1500 for a chapter 7 and that is just for attorney fees so many are $1850 or more in order to file. I try to start around $1200 for a basic case but if its really simple and not a lot of assets to protect, financing on cars, saving a house from foreclosure etc then I’ve been known to charge $1000 dollars. A typical case for me is 12-15 hours of work and then I have my own cost of running a business so I’m about as reasonable as they come for a qualified bankruptcy attorney. I do all the work myself occasionally using virtual paralegals for data entry and gathering of documents when I get too busy, but I pride myself on having a personal relationship with my clients throughout the whole process. I see the type of work that the bankruptcy mills churn out and they charge as much as I do and there clients only meet there attorney for 30 minutes and then show up at the hearing. Bankruptcy work needs someone that you feel comfortable with and that answers the right questions and best protects you to help you move forward with your fresh start. I vary my prices on a sliding scale and understand what people are going through in this economy and what a personal decision this is so please call my office to find out what chapter to file or if bankruptcy is right for you.