Fishback Law CorporationFishback Law Corporation2026-06-09T07:42:01Zhttps://www.fishbacklawgroup.com/feed/atom/WordPress/wp-content/uploads/sites/1603529/2020/06/cropped-favion-32x32.jpgOn Behalf of Fishback Law Corporation<![CDATA[What is a bankruptcy certificate?]]>https://www.fishbacklawgroup.com/?p=474042022-05-18T01:49:56Z2022-05-18T01:49:56ZWhat is a bankruptcy certificate?
A bankruptcy certificate is a document you receive that states that you have successfully completed credit counseling and an educational course on managing debt. Credit counseling and debt management educational courses are required when you plan on filing for bankruptcy. Only after you receive the certificate is it possible to proceed with the bankruptcy case.
Only certain agencies are permitted to issue bankruptcy certificates to consumers. This means that you should only receive credit counseling from companies approved by the U.S. Trustee Program as only those are the only ones authorized to issue a bankruptcy certificate.
After you have completed credit counseling and receive a bankruptcy certificate, you enroll in a debt education course. Once you complete that, you will receive another bankruptcy certificate that proves you meet the requirements to file for bankruptcy.
How does a bankruptcy certificate work?
When you have chosen bankruptcy as the route you wish to go to alleviate your debt, you will meet with a credit counselor to see whether bankruptcy is, indeed, the best option. The credit counselor will review all of your financial documents to assess your debt and the reasons behind it. After completing the counseling, you are given a bankruptcy certificate that’s good for 180 days. The certificate is included in your bankruptcy petition.
The debtor education course is to teach you how to better manage your finances. Once you have completed the course, you receive a second bankruptcy certificate that must be filed with the bankruptcy court.]]>On Behalf of Fishback Law Corporation<![CDATA[Dealing with credit card debt]]>https://www.fishbacklawgroup.com/?p=474022022-05-05T05:20:37Z2022-05-04T05:19:17ZApproaches to pay down credit card debt
Generally, it might be good to cut back on credit card usage when the balances become too costly. Continually using the cards would, essentially, replace payments with more borrowing. Unfortunately, those struggling financially might not have a choice when their funds are limited.
Paying more than the minimum monthly balance and possibly applying the snowball strategy of paying off one card through increasing the monthly payment and then moving on to the next card could lead to a way out. Again, this process requires someone to have the additional funds to make the strategy possible.
Other options, such as debt settlement and consolidation strategies, could move a debtor toward eliminating credit card debt. These steps might take time and require a commitment to revamping overall budgets. Unless the debtor gets their budget under control, credit card payment strategies may become challenging.
Bankruptcy as a plan
Filing for bankruptcy might be the only way for someone buried under massive debt to address credit card balances and other obligations. Those whose debts exceed their assets could explore Chapter 7 or Chapter 13 protections.
Those who pass the means test for Chapter 7 bankruptcy may find their credit card debt entirely discharged. Chapter 13 involves following a three-year to a five-year payment plan, although credit card debt could also become discharged under this process.]]>On Behalf of Fishback Law Corporation<![CDATA[What are the steps of the foreclosure process in California?]]>https://www.fishbacklawgroup.com/?p=473962022-04-20T00:32:52Z2022-04-20T00:32:52ZMissing a payment
A missed payment is the first step of the foreclosure process. However, this doesn't necessarily mean you're going to lose your home. If you contact your lender before missing a mortgage payment, they are usually willing to accept a late payment. Always try to negotiate in advance of a missed payment because it gives you more peace of mind and could prevent the lender from initiating a formal foreclosure. If you have already missed one or more payments, still contact your lender as soon as possible. You may be able to work it out with them.
Notice of default
California law requires that lenders send a 30-day notice when they are going to start the foreclosure process. They can then officially start the process by mailing a notice of default (NOD) through certified mail. By law, they usually have to give you at least three months to cure the default and reinstate your mortgage.
End of the cure period
At the end of the period allotted for you to cure the default, your lender can schedule the foreclosure of your home. Before the period ends, you should attempt to negotiate a deal as soon as possible if you're unable to catch up on payments on time. You could receive free foreclosure counseling from U.S. Department of Housing and Urban
Development (HUD) certified housing counselors for additional assistance.
Notice of sale
If the cure period ends without you curing the default, then the state puts a notice of sale sign on your home. Notice of the foreclosure sale will also appear in a newspaper of general circulation in your city.
Foreclosure sale
The actual foreclosure sale is the last stage of the foreclosure process. Lenders accept the sale proceeds as payment in full.
The foreclosure process in California offers you several opportunities to prevent foreclosure by working out a payment plan with the lender. You should take action to stop a foreclosure as soon as possible because lenders are more likely to negotiate early on.]]>On Behalf of Fishback Law Corporation<![CDATA[What you need to know about wage garnishment in bankruptcy]]>https://www.fishbacklawgroup.com/?p=473922022-04-06T06:30:40Z2022-04-06T06:30:40ZWhat is wage garnishment?
Wage garnishment takes place when the court orders a person’s employer to withhold a portion of their paycheck to send that money directly to a party that is owed a debt. Garnishment normally takes place until the debt is paid in full.
What debts are subject to wage garnishment?
Certain types of debt are subject to wage garnishment. Those debts are the same ones that are not protected when a person files for bankruptcy. These debts are considered non-dischargeable debts. They include the following:
Child support
Alimony
Certain back taxes
What are the limits on wage garnishment?
Even if a creditor gains a judgment from the court to garnish a person’s wages, there are limits on what they can take. Federal law prohibits more than 25% of a person’s disposable income or the amount a person’s income exceeds 30 times the minimum wage to be taken, whichever is less.
How can you avoid wage garnishment?
It’s possible for a person to avoid wage garnishment by staying on top of their debts. Although that’s not always possible, a person can help their cause by contacting their creditors. Sometimes, creditors are willing to work with the individual to find a way for the debt to be paid. They are often open to repayment plans and might even forgive interest to make it easier to repay.]]>On Behalf of Fishback Law Corporation<![CDATA[What are some problems with debt relief companies?]]>https://www.fishbacklawgroup.com/?p=473212022-03-23T01:54:22Z2022-03-23T01:54:22ZWhat is debt reduction?
Debt reduction usually looks like a simple solution with a third party helping. Debt reduction services promise to clean up debt messes and work with creditors. Debt relief is either settlement or consolidation. Many people turn to debt relief because they prefer to avoid bankruptcy. Debt settlement companies use the fees to negotiate with creditors, but the fees are more than the creditors would charge. Debt consolidation companies combine all debts into one place but don't reduce debt. There's nothing stopping people from calling their creditors and negotiating for themselves.
Does debt reduction affect credit scores?
People often use credit counseling or debt management and try to avoid bankruptcy. Debt reduction doesn't impact a person's credit score. Someone settling a debt for less than the original amount will hurt their credit score. Remember that credit scores aren't as important as they seem. A credit score doesn't show how well a person manages money or how much money they have. A credit score's main job is to track a person's debt.
Does debt reduction work?
Many people think debt reduction is a reliable way to eliminate debt. Debt reduction services will keep people in debt longer. The quick fix is only a temporary solution to debt. A company can lower the monthly payments, but the loan is usually the same price. A simple two-year loan could end up taking six years to pay off. Lower monthly payments can amount to thousands of dollars in extra fees.
There are ways a person can pull themselves out of debt without a third party. The first thing to do is start an emergency fund and keep adding to it. Try to have at least $1,000 aside for emergencies. Next, begin paying off excess debt with the emergency funds. People who pay more than the monthly minimum can reduce the number of payments.]]>On Behalf of Fishback Law Corporation<![CDATA[The debt limit for Chapter 13 bankruptcy]]>https://www.fishbacklawgroup.com/?p=472202022-03-10T04:13:07Z2022-03-10T04:13:07ZDebt caps for Chapter 13 filers
Federal statutes establish the debt limits for Chapter 13 bankruptcy filers. Anyone filing for Chapter 13 bankruptcy on or after April 1, 2019, must accept a debt cap of $419,275 for unsecured debts that are both noncontingent and liquidated. Regarding secured noncontingent and liquidated debt, $1,257,850 reflects the debt limit.
Under federal law, the debt limits face revisions every three years based on the Consumer Price Index. April 1, 2022, is the date for the next review.
Other bankruptcy options available
Although someone might not qualify for chapter 13 bankruptcy based on the debt limit statutes, options could exist to file for Chapter 7 bankruptcy. Chapter 11 bankruptcy might be an option for others. Chapter 7 could be more appealing to some filers since the process involves liquidating assets to pay off debt while achieving a discharge from unsecured debt. Such a path may lead to a fresh start.
Still, debtors might wish Chapter 13 bankruptcy was an available option. The law is the law, and the bankruptcy court will follow statutes to make legal determinations. Therefore, the debt limit will guide a bankruptcy court judge’s decisions.]]>On Behalf of Fishback Law Corporation<![CDATA[Is it possible to refinance after bankruptcy?]]>https://www.fishbacklawgroup.com/?p=472162022-02-24T05:24:10Z2022-02-24T05:24:10ZAttempts to refinance after bankruptcy
Refinancing a mortgage might be a top option among those exiting bankruptcy as higher interest rates could cause financial strain. It's normal to expect some hurdles when refinancing after bankruptcy, but overcoming those stumbling blocks is possible.
Ultimately, a bankruptcy will fall off a credit history in time, but a former filer may wish to refinance far sooner. Likely, it may take some time before some lenders choose to work with someone who filed for bankruptcy.
Lenders may be more willing to work with someone who filed for Chapter 13 since this type of bankruptcy involves payment plans. Chapter 7, also known as liquidation bankruptcy, could make lenders more concerned when reviewing applications. However, would-be refinancers might wish to move forward seeking a lender and not feel discouraged.
Exploring bankruptcy options
Filing for bankruptcy might not be someone's first choice to deal with excessive debt. However, when meeting payment obligations proves impossible and financial struggles make life difficult, the bankruptcy courts could provide solutions.
Significant differences exist between Chapter 7 and Chapter 13 bankruptcy, and Chapter 7 requires passing a means test to qualify. Would-be filers should review their options before taking steps to seek bankruptcy protection.]]>On Behalf of Fishback Law Corporation<![CDATA[Filing bankruptcy after a divorce can help you get a fresh start]]>https://www.fishbacklawgroup.com/?p=472132022-02-09T03:17:39Z2022-02-09T03:17:39ZWhat does filing bankruptcy entail?
Have you been left with excessive debt after getting a divorce? Making credit card or loan payments and putting food on the table simultaneously can be challenging. If you're in this position, you may want to file bankruptcy. This action forgives the debts you're having trouble paying and offers creditors a way to obtain some measure of repayment based on your current assets. Three choices are available:
- Chapter 7: Eliminates your debt
- Chapter 11: Offers business restructuring
- Chapter 13: Gives you a debt repayment plan
It should be noted, you can't include student loans in bankruptcy in most cases.
Making the decision to file bankruptcy
While filing bankruptcy can eliminate your debt, there is a negative side. Doing so will be indicated on your credit report for ten years. However, it will drop off eventually, and it gives you a chance to start fresh without an overbearing number of payments.
Immediately after you file bankruptcy, your credit scores will likely plummet. However, the good news is that it probably won't stay this way forever. Once those debts are wiped out, your scores should move higher as they won't be listed on your credit report.
Weighing the pros and cons is essential if you are thinking about filing bankruptcy after getting divorced. In the short term, your credit scores will be damaged, but in the future, you won't be overwhelmed financially and can move on with your life.]]>On Behalf of Fishback Law Corporation<![CDATA[Not all debts receive bankruptcy discharges]]>https://www.fishbacklawgroup.com/?p=472112022-01-25T23:16:21Z2022-01-25T23:16:21ZChapter 7 bankruptcy and remaining debts
Chapter 7 bankruptcy is called liquidation bankruptcy since the process involves selling off certain assets and using the proceeds to pay creditors. Afterward, the court discharges the eligible remaining debt. Bankruptcy filers have no obligation to pay debts that received a discharge.
Credit cards and other unsecured debts typically receive a discharge. However, federal and state taxes would not likely receive any releases. Student loan obligation relief requires proof of undue hardships. Some may feel surprised that the bankruptcy court would not eliminate all debts, but the court must follow federal statutes. And yes, some debts fall under exclusions to bankruptcy rules.
Other debts that remain during bankruptcy
A closer look may reveal that the exclusions make sense. Someone who owes money due to fraud does not deserve a release from the obligations, and the law does not allow any. Chapter 7 rules won't free someone ordered to pay government fines nor alleviate wrongful death judgments from drunk driving accidents.
The average person doesn't likely have to deal with punitive debts, but many go through divorces. Spousal maintenance and child support are not subject to bankruptcy discharges. However, the debtor may go to family court and attempt to modify the order.
While several categories of debts do not undergo discharges, bankruptcy does provide various protections. For example, collection actions and evictions may stop when bankruptcy proceedings commence. So, the process could have other benefits to the debtors.]]>On Behalf of Fishback Law Corporation<![CDATA[What is wage garnishment, and how can you stop it?]]>https://www.fishbacklawgroup.com/?p=472082022-01-13T01:58:28Z2022-01-13T01:58:28ZWhat is wage garnishment?
Wage garnishment is a tool used by creditors to collect debt from people who owe them. Garnishment works by automatically deducting money from your paycheck to satisfy a debt. With each payment through garnishment, the amount is added to your total debt to reduce the balance that’s owed.
How does wage garnishment happen?
Your wages are garnished only after a creditor sues you for nonpayment of debt. The debt could be from a credit card company or a bank. If the creditor wins the case and gets a judgment against you for nonpayment, they could ask the court to garnish your wages so they can be paid back. The wage garnishment order goes to your employer, which is why some of your wages are deducted to go toward the debt.
In addition to credit card debt or loan debt, you can have your wages garnished to satisfy other nonpayment debt. Garnishment can occur when you owe taxes, alimony, child support payments or student loans.
How can you stop wage garnishment?
One of the best ways to stop wage garnishment is by filing for bankruptcy. However, there are other methods available if you prefer not to file bankruptcy.
Once a creditor gets a judgment against you, you’re entitled to receive a demand letter warning you of the garnishment. You have the right to respond to it and can negotiate a payment plan with the creditor.
Credit counseling is another option available to stop garnishment. You can meet with a counselor who can help you create a debt management plan. If the creditors agree, they may forgo the garnishment.
You can make an exemption claim with the state that proves the garnishment would be an economic hardship, it can prevent the wage garnishment from happening.
You can also object to garnishment in writing and request a hearing with the court.]]>