Filing a bankruptcy case is not like filing a divorce case or a lawsuit. That's because those kinds of cases are often filed in state court. State court cases are filed in county court houses. So finding your courthouse is as simple as knowing what county you live in. Most people know their county and so they have little trouble finding their court for state court legal actions. Sacramento residents for example can file their legal items in the Sacramento County Court.
Did you know that bankruptcy courts are federal courts? Federal are not as numerous as state courts. They are located within districts. If you have studies election law then you might be familiar with districts. Districts are drawn based on population and geography. Some residents though are unfortunately sitting near the outskirts of their district. This could mean that they have to travel over a hundred miles to visit their local federal judge in some situations. Needless to say residents that live far away from their federal courts do not have the same access to debt relief. However, if an attorney represents them in their case, the attorney can attend most of the hearings on their behalf.
So when it comes to filing bankruptcy for Sacramento residents it is quit convenient. The Eastern District Bankruptcy Court is located in downtown Sacramento at 501 I Street. Most residents can travel there to pursue their case in a matter of minutes. The local transit system and Amtrak train also have stops nearby. How about Californias that dont live in Sacramento? Maybe they live in a smaller city like Woodland or Vacaville. For them Sacramento is not much closer than San Francisco. It turns out that the Easter District includes residents of southern locations like Modesto and Stockton. It also includes residents all the way to Vallejo.
Filing bankruptcy in the right federal court is the first step to gaining an advantage over your debts. So make sure to correctly identify your local district court with the help of a Roseville Bankruptcy Attorney. Getting advice from an advocate in the area can really shorten your preparation and activity time.
Student Loans have long been a rising challenge for college graduates in the Unites States. The cost of eduction has steadily increased during the last half century. In fact, higher education tuition is one of the fastest increasing costs for young Americans. The rise of small private schools was supposed to offer convenient and affordable options for those hungry for an education. Unfortunately, a number of significant online universities have closed their doors recently. The students that were attending these schools were left with two major problems. First, these students were left with large amounts of student loan debt. Second, they were unable to obtain high paying jobs to pay off their student loans.
The United States Government began looking at this problem during Barack Obama's presidency. The best solution from our representatives at the time was to allow these unfortunate borrowers forgiveness for their student loans. Normally, student loans are not dischargeable in bankruptcy unless the debtor can prove an undue hardship that would make it nearly impossible to attempt to pay back the student loans. Most people fall short of meeting this standard and are thus left with the burden of large school loans when they have insufficient income to pay. So when the government came up with a debt relief solution for students who attended schools that went out of business many were relieved. Nevertheless, these policies still have yet to be implemented. Many are growing frustrated with Betsy DeVos because she is in charge of implementing these changes. Apparently she is contemplating changes to the new policies. Her modification could ease losses for those that backed these loans. Doing so would be a major reversal from the prior administration's position.
Students can still obtain relief from other debts like credit cards and pay day loans. Bankruptcy is a long used remedy for those in over their head. For students, bankruptcy can make their remaining student loans more affordable once other debts are reduced. If you are facing student loans with unaffordable payments consider looking into ways to reduce your other debts. The first step is to start communication with a debt relief attorney in Sacramento, CA.
Some debtors look forward to tax time because that is the time that they receive large tax refunds from the IRS. Instead of receiving their fair share of monthly earnings, these taxpayers believe that their savings would be better off in the hands of government. Meanwhile many of these same workers are struggling to pay their monthly expenses. In a chapter 13 bankruptcy, tax refunds are factored into determining how much a debtor can afford to pay creditors. Essentially, tax refunds are considered disposable income unless some further explanation is provided to the chapter 13 trustee. The problem is that the loss of these hard earned funds can offset the whole point of a reorganization, to give the debtor a fresh start.
Monthly Earnings Should be Available on an Immediate Basis in Bankruptcy
Taxpayers that are overwithholding can still make adjustments to their withholdings in the middle of the year. Doing so will make more wages available to a debtor for household expenses and other necessary costs of living. In turn a debtor's annual tax refunds will be much lower. And if the amount of the annual refund is less than $1,000-$2,000, most trustees will consider allowing a debtor to keep the funds. Overall this kind of change makes keeping up with monthly chapter 13 payments and monthly living expenses easier.
Chapter 13 Bankruptcy Encourages Debtors to Track Spending
In a sort of renaissance style chapter 13 participants need to reexamine their spending habits. Many begin this makeover for the first time in their lives and are glad that they finally do it. That is because you can't possible meet all of your obligations if you don't know what you are spending your money on. Once you start checking in on the categories that are costing you the most you can take control of your wealth building ability. Paying down debt and making sure that you have money available for health care, car and home maintenance, and clothing, can go a long way to keeping you on a steady financial path. Budgeting during bankruptcy is something that an Elk Grove Bankruptcy Attorney can help a debtor prepare for.
Filing Tax Returns on Time in Chapter 13 Bankruptcy
Since the IRS needs to ensure that you are not falling behind while you are in chapter 13 its a good idea to timely file returns. Otherwise your debt problem can be compounded by further debt. The taxing authorities do not have to wait on seeking payment from debtors that incur post petition tax debt. By reviewing and filing taxes early in the year, a debtor has the opportunity to plan and pay for any extra taxes that are due.
Student Loans in Bankruptcy
There are several payments that are not dischargeable in bankruptcy such as child support and alimony. Student loans are also among payments that are not typically discharged in a bankruptcy case. That does not mean it is impossible, merely difficult.
In order to have your loan discharged you must prove that the debt imposes a hardship on you and your dependents after filing for Chapter 7 or Chapter 13 bankruptcy. To prove such a hardship, the person must prove a mental, physical, or medical hardships. If the loan company does not challenge the hardship then your debt will be discharge.
It is important to know that even when your loan is discharged, your co-signers are responsible for the remaining balance and interest.
For those who are having a difficult time discharging their debt, the assistance of a bankruptcy attorney can help you during this time. Residents of the Sacramento area can look to the experience attorneys at Liviakis Law Firm. We can aid you through the entire process, contact us today at 916.459.2364
Rebuilding Credit Post-Bankruptcy
Bankruptcy offers a huge relief for those dealing with massive amounts of debt. While bankruptcy has allowed you to wipe the slate clean, a lower credit is the price that is paid. If your credit was not in good shape before your filing for bankruptcy then it is imperative to rebuild it as soon as possible.
If you are lucky enough to have kept your home post-bankruptcy. Paying your mortgage on time can actually help you increase your credit score.
Paying your bills on time is also important. This shows your lenders that you have learned from previous fiscal mistakes and are making the effort to not fall into your old habits.
Once you are on a better financial track, look into a credit card. While you may not qualify for an unsecured card, credit card companies may be open to giving you a secured card. A secured card works by depositing money with a bank in order to use a credit card. The limit on the card is usually the same amount deposited in the bank. You have to pay back the amount you spend every month but once the card becomes unsecured, you get your deposit back.
Creditors will not see the card as a secured card but as a regular credit card which means it helps you rebuild your credit.
For more information or assistance with your bankruptcy case, residents of Sacramento can look to Liviakis Law Firm. Contact us at 916.459.2364 for your free consultation.