Law Offices of Gary Brenner

Visit These Links To Get More Valuable Information About Bankruptcy

There is always more to learn about bankruptcy and the way it will affect your life, so take a look at these resources to educate yourself about the topics discussed in our recent blog posts. If you’d like to discuss your financial situation with a bankruptcy attorney, call (650) 348-2044 to reach the Law Offices of Gary Brenner in San Francisco.

• After bankruptcy, you may want to consider getting a secured credit card to begin improving your credit score.

• SmartMoney.com can tell you why bankruptcy may actually improve your credit score.

• In this article, you’ll meet a couple who declared bankruptcy but are still in financial trouble because of their student loans; you’ll also learn about possible legislation that may make these loans dischargeable.

• Do you know how your credit score is calculated? Find out from FICO.

• You can get more information about debt discharge from the U.S. Courts.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

Enjoy This Memorial Day Quote:

“True heroism is remarkably sober, very undramatic. It is not the urge to surpass all others at whatever cost, but the urge to serve others at whatever cost.” -Arthur Ashe

Understanding the Difference between Secured and Unsecured Debt

When you’re considering bankruptcy, it is vital to remember that the process differentiates when it comes to settling secured and unsecured debts. To find out about what these debts are and how they are dealt with in bankruptcy, read on.

What are secured and unsecured debts?

Unsecured debts are obligations that are not tied to property, like credit card and medical bills. Secured debts, on the other hand, are backed by real property, like a home mortgage or a car loan.

How are these debts dealt with in Chapter 7 bankruptcy?

Chapter 7 bankruptcy begins by liquidating a bankruptcy filer’s personal property in order to pay unsecured debts. After this, the debtor receives a debt discharge, or a release from responsibility for these debts. Though most unsecured debts can be discharged, a few cannot; student loans, alimony, child support, and recent income taxes will survive bankruptcy. A Chapter 7 filer can also be released from responsibility for his secured debts, but he must forfeit the property. Some debtors opt to work out agreements with their lenders to reaffirm the debt, or continue to pay it according to its original terms, after bankruptcy.

How are debts dealt with in Chapter 13 bankruptcy?

Chapter 13 does not involve any liquidation of property. Instead, a bankruptcy trustee arranges a plan under which the bankruptcy filer will pay his unsecured debts over three to five years. After this, those debts will be discharged—with the same exceptions as Chapter 7. Secured debts are not discharged and secured property does not have to be forfeited. Instead, the trustee arranges for the debtor to make up any payments he missed while staying current with new payments. This allows a debtor to keep his home and avoid foreclosure.

Bankruptcy offers an opportunity to free yourself from unsecured debt while having the option of holding on to your secured debts, like your home and car. To discuss your options for a financial fresh start, contact the Law Offices of Gary Brenner in San Francisco today. Call (650) 348-2044 to schedule a free consultation in our office.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. 

What are Some Examples of Non-Dischargeable Debt?

If you’re considering bankruptcy, it is important to educate yourself as much as possible about its regulations and ramifications. In this podcast, which include segments from the book Begin Again, you’ll learn about debts that are not dischargeable through bankruptcy.

Though many debts can be wiped out in the bankruptcy process, there are several important exceptions. For example, student loans, alimony and child support payments, federal and state taxes, and money owed due to court settlements cannot usually be discharged. For more information about this important topic, check out this podcast.

http://itunes.apple.com/us/podcast/begin-again-with-bankruptcy/id317967828

Though this podcast is a great way to get some background information about bankruptcy, it is no substitute for a face-to-face consultation with a bankruptcy attorney who can evaluate your situation and advise you on the best course of action. Count on the Law Offices of Gary Brenner to provide expert legal guidance about bankruptcy. Call our office at (650) 348-2044 today.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.

How Will Bankruptcy Affect My Credit?

Your credit score is one of the most important indicators of your financial situation, and lenders take it into account when deciding whether to grant a loan. If you’re filing for bankruptcy, you need to be aware of the ways in which it will affect your credit score.

Your credit score will drop.

Bankruptcy will be a negative mark on your credit report and will cause your credit score to drop. Though this is undesirable, it may not be as dire as it sounds. If you’ve been struggling with financial troubles, your credit score probably isn’t perfect because of missed or late payments. Taking this into account, bankruptcy’s effect on your score won’t be as profound as it would be if your credit was perfect.

Banks will be less willing to offer you loans.

With a bankruptcy on your credit report, you will find it difficult to qualify for loans or a credit card. If you are eligible for credit, your interest rates will be higher than other borrowers’. Despite this, with good financial habits and hard work, you may be able to get a large loan—perhaps even a mortgage—with a bankruptcy on your credit report.

Bankruptcy will offer a fresh start.

After a bankruptcy, you will be released from responsibility for many of your debts. This is a great time to start new financial habits. If you make all payments on time and use credit carefully, you can raise your credit score above what it was before bankruptcy. In a Chapter 13 bankruptcy plan, you will make monthly payments to a trustee; if you make these payments on time, you will improve your credit score. Chapter 7 bankruptcy will fall off your credit report in 10 years, and Chapter 13 will disappear in seven,  leaving you with an improved credit score and no indication that you declared bankruptcy.

If you’re in debt and having trouble making your payments, Chapter 7 or Chapter 13 bankruptcy can give you a new start. To discuss your options, call (650) 348-2044 to reach the Law Offices of Gary Brenner in San Francisco today.

Disclaimer:

The materials available at this website are for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney to obtain advice with respect to any particular issue or problem. Use and access to this website or any of the links contained within the site do not create an attorney-client relationship. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney.