THE MEANS TEST; CALL 559-320-7029 TO ANSWER ALL YOUR BANKRUPTCY ISSUES.

THE MEANS TEST IN BANKRUPTCY You may have read that the new bankruptcy law imposes a "means test" on who can file for Chapter 7 bankruptcy. You might think this new test will prevent you from filing. But, chances are, you're wrong. Most people considering bankruptcy have no trouble passing the bankruptcy means test. Indeed, some lawyers think more people will qualify for Chapter 7 under this test than under the old law, where judges had no fixed formula. Use this calculator find out where you stand. THE FORMULA The law now uses a standard mathematical formula to determine whether you can file for Chapter 7 — or, to put it in legal terms, whether filing for Chapter 7 would be an 'abuse' of the bankruptcy system. (Those who fail the means test, are left with a Chapter 13 repayment plan as their only bankruptcy option.) The bankruptcy means test is actually a two-part test and you only need to pass one of them to qualify for Chapter 7. Test 1. "Median Income" This is a very simple test that compares your average household income for the past six calendar months to the median income for your state, If your income is below the median, you qualify for Chapter 7. If it is above the median, you must pass Test 2. Test 2. "Disposable Income" This test deducts expenses from your income to determine how much you can pay your unsecured creditors over the next five years: for example if you lived in Harris county; If you can pay at least $10,000 ($167 per month), you can't file for Chapter 7. If you can pay at least $6,000 ($100 per month) and that is at least 25% of what you currently owe your unsecured creditors, you can't file for Chapter 7. If your disposable income is less than $100 per month, you can file for Chapter 7. Certain deductions are standard allowances based on the number of vehicles you operate, the number of people in your household, and the cost of living in Harris County. Depending on which county you live in the amounts may change but the method of calculation will not. In addition, to these standard deductions, you can also deduct the full amount of certain actual expenses such as mortgage and vehicle loan payments.

WORKER COMPENSATIOIN BASICS

Abraham Lincoln 16th President of the United States Benedict Arnold Betrayed colonists to British John James Audubon Illustrated Birds of America P.T. Barnum The Great American circus owner John Barrymore Actor; Romeo & Juliet Lionel Bart British composer - lyricist - playwright (1972) Kim Basinger Oscar - winning actress (1993) Frank Baum Wizard of Oz author Barbara Bel Geddes Actor; Miss Elle on Dallas Melvin Belli Famous Lawyer known as 'The King of Torts' Bunny Berigan Jazz trumpeter great George Best Manchester United soccer Jay Black rock star, lead member of "Jay and the Americans" (1986) John Wayne Bobbitt Penectomy survivor Peter Bogdanovich American Filmographer Bjorn Borg Pro tennis player Lorraine Bracco Oscar - nominated actress (1999) Matthew Brady portrait / US Civil War photographer (1872) Toni Braxton rock star (1998) Louise Brooks Actor; Pandora’s Box Sylvia Browne Afraid to accept Randi’s $1million challenge Lenny Bruce Comic; Multiply obscene comic Buffalo Bill Wild West showman Gary Burghoff Radar O’Reilly in MASH Anita Bryant singer, 1958 Miss America 2nd runner up (1997) Crazy Cabbie Radio personality on the Howard Stern menagerie Tia Carrere Actor; Wayne’s World Nell Carter Actor; Housekeeper on Gimme a Break Raymond Carver Author; Will You Please Be Quiet, Please? Miguel de Cervantes Novelist; Don Quixote George Clinton rock star (1984) (note: this is not the composer George S. Clinton) Samuel L. Clemens ("Mark Twain") best - selling American author - humorist (1894) Natalie Cole singer Gary Coleman actor (1999) Concrete Blonde rock group John Connally Former Texas Governor, wounded in 1963 Kennedy assassination in Dallas (1987) Francis Ford Coppola Oscar - winning film writer - director - producer (1999) Cathy Lee Crosby Actress - American Author (1992) David Crosby singer / songwriter Aleister Crowley Wickedest man in the world Vic Damone singer (1971) Dorothy Dandridge Oscar- nominated actress singer (1963) Darren Day Music Theater Star Daniel Defoe Author; Robinson Crusoe Lee De Forest Oscar-winning film/sound synchronization pioneer, producer (1937) Dino De Laurentis Oscar - winning film producer (1988) John DeLorean Automobile designer and entrepreneur Clarissa Dickson Wright Star of “Two Fat Ladies” TV cooking show fame (2003) Walt Disney Oscar - winning film producer, animation & theme park pioneer (1923) Henry Dunant Red Cross founder William C. Durant Founder of General Motor Eddy "the eagle" Edwards Great Britain's first Olympic ski jumper (1991) Chris Eubank Former World Champion Boxer (2005) Keith Famie Survivor II: The Australian Outback contestant, chef-restauranter, American Author (1996/97) Freddy Fender Musician; Before the Next Teardrop Falls Stephin Fetchit Actor; Professional black stereotype Eddie Fisher Singer; crooner dumped by Liz Taylor Mick Fleetwood rock star, lead member of "Fleetwood Mac" (1984) Heidi Fleiss Clothing line founder; American author Henry Ford Automobile manufacturer William Fox Co-Founder of 20th Century Fox Film Corporation (1936) Red Foxx actor – entertainer R. Buckminster Fuller Architect-futurist-invented the geodesic dome Zsa Zsa Gabor Cop-slapping Gabor sister Marvin Gaye singer (1970s) Andy Gibb rock star (1987) Gary Glitter Rock and Roll Part 2 Bernhard Goetz Subway vigilante criminal Charles Goodyear 19th century American inventor, who discovered how to vulcanize rubber Ulysses S. Grant 18th US President; Civil War general, best-selling American Author, face is pictured on the US fifty dollar bill ( 1884 after leaving office) Elizabeth Ward Gracen actress; model; Miss America 1982 (1999) Paulo Gucci 1993 Bob Guccione publisher and founder of Penthouse magazine (2003) Johannes Gutenberg Inventor of movable type Tony Gwynn Batted .394 in 1994 for the Padres Merle Haggard country music star (1993) Corey Haim actor (1997) Frans Hals Dutch portraitist Dorothy Hamill Olympic gold-medal ice-skater (1996) M.C. Hammer rock star (1996) George Frideric Handel Messiah composer Richard Harris Oscar-nominated actor-producer-director Isaac Hayes Oscar-winning songwriter - composer - musician -singer (1976) H.J. Heinz Founder of Heinz Ketchup Margaux Hemingway Troubled actress OD’d on klonopin Sherman Hemsley actor (2002) Ty Herndon Country music star caught in cruisy park Milton Snavely Hershey founder of Hershey’s chocolate Kent Hovind Creation Science huckster Steve Howe MLB pitcher E. Howard Hunt Coordinated Watergate break-in Nelson Bunker Hunt Tried to corner the silver market Ron Isley Rhythm-and blues singer (mid late 1990s) La Toya Jackson rock star (1995) Don Johnson actor-producer Eli Jacobs Former Baltimore Orioles owner Janice - Marie Johnson rock star/disco diva (1980s) Al Jolson Miami Vice, Nash Bridges George Jones Country singer Grace Jones Singer Entertainer 1992 Kacey Jones country music star, musical humorist Clay Jordan Survivor V: Thailand contestant; restauranter (2001) Chaka Kahn rock star Charles Keating Morality crusader, white-collar swindler Buster Keaton Actor, The General Bernard Kerik NYC Police Commissioner, 2000-2001 Margot Kidder Lois Lane in Superman movie Larry King talk-show host, best selling American author (1978) Robert Kiyosaki Rich Dad, Poor Dad author Marion “Suge” Knight Death Row Records Rap Producer 2006 Bowie Kuhn former US baseball commissioner Gary Kurtz Oscar-nominated film producer Veronica Lake actress (1951) Lorenzo Lamas actor (2004) Cyndi Lauper rock star (1983) Anton LaVey Founder of the Church of Satan Stan Lee Comic book industry pioneer , co-creator "Spider Man," "The Incredible Hulk," "The X-Men" etc (2001) Jerry Lewis comic Jerry Lee Lewis famous Rock n’ Roll star Horace Liveright Publisher of the Modern Library series Meat Loaf rock star (1983) Joe Louis Boxer 1956 Ashley MacIsaac musician fiddler (2000) Jackie Mason comedian – entertainer Henry Mayhew Punch journalist Mindy McCready Country Music star , American author George McGovern politician 1991 William McKinley 25th US President 1897-1901 Tom Metzger white supremacist Marvin Mitchelson celebrity divorce lawyer Melba Moore Singer - Actress Debelah Morgan Singer -Songwriter - Producer (2000) Lorrie Morgan Country music star, American Author Robert Morris Politician who financed Revolutionary War Levi P. Morton Vice President under Benjamin Harrison Motor City Five/MCS rock group of the 1960s (1970) John Nash British Regency architect Willie Nelson singer-songwriter-actor, American Author (1990) Wayne Newton singer-actor - entertainer (1992) Harry Nilsson singer/songwriter; Me and My Arrow F. Donald Nixon Nixon’s brother Immanuel Nobel father of manufacturers - philanthropist Alfred Nobel , who founded the Nobel Prize (twice - 1833/year Alfred was born, 1856/ when Alfred was 23) Mary Nolan actress (1931) Emperor Norton Emperor of the United States and protector of Mexico Ted Nugent Rock Star Kate O’Brien The Land of Spices novelist Thomas Paine Common Sense activist Johnny Paycheck country music star (1976) Tom Petty rock star (1979) Gaylord Perry baseball player Philip II King of Spain, 1556-1598 Buddy Post Lottery millionaire Susan Powter exercise/fitness expert, talk show host, best selling American Author (1995) Burt Prelutsky American television writer; screenwriter (1997) Randy Quaid actor Lynn Redgrave actress Rembrandt painter Tommy Rettig actor; Jeff Miller in Lassie Burt Reynolds Oscar-nominated actor - director , American Author (1995) Debbie Reynolds Oscar nominated actress-singer, American Author (1997) Mickey Rooney Oscar nominated actor, American Author (1962) Rick Ross Activist; cult expert, deprogrammer Run DMC Rap Group in 1993 Harry Saltzman film producer (James Bond movies) (1975) Derek Sanderson Hockey Player Ray Sawyer rock star, member of "Dr. Hook and the Medicine Show" (1973) Oskar Schindler activist who saved over 1000 Jews from the Nazis Shenandoah country music band (1991) Billy Sims Detroit Lions RB Tom Sizemore Heat, Robbery Homicide Division actor Anna Nicole Smith Model-Actress, 1993 Playboy magazine "Playmate of the Year"(1996) Dee Snider frontman for Twisted Sister, musician Phoebe Snow Jazz vocalist Lynne Spears American author, mother of rock star Britney Spears (1998, filed with husband James prior to Britney's stardom) Leon Spinks boxer Sheryl Swoopes Three-time WNBA MVP J. Fife Symington Governor of Arizona (1995, while still in office) Lawrence Taylor NFL hall of famer Randall Terry Operation Rescue founder Nikola Tesla Invented alternating current Donald Trump billionaire entrepreneur TLC rock group (1995) Mark Twain Huckleberry Finn author Mike Tyson boxer (2003) Johnny Unitas legendary Hall of Fame football quarterback John Whitehead Ain’t No Stoppin’ Us Now, musician Oscar Wilde acclaimed poet and author James Wilson U.S. Supreme Court Justice 1789-1798 Tammy Wynette country music star (1988) Florenz Ziegfeld actor, the Ziegfeld Follies Remember that all these high profile people some who could be considered well off all filed for bankruptcy protection. If someone that well off can get into financial trouble it can happen to anyone. These notable people took advantage of their constitutional right to use bankruptcy to address their financial problems and were given a chance to get a fresh financial start and get their financial affairs back on track. Bankruptcy can be an option for Debt Relief and can put you back in control of your finances. Don’t loose everything. Get help today.

COVID AND WORKERS COMPENSATION

CALL 559-320-7029 TO ANSWER ALL YOUR BANKRUPTCY ISSUES. Fresno Bee: Many Valley Homeowners Abandoning Mortgages The Fresno Bee had a nice feature article on May 8 entitled More Valley homeowners abandon mortgages. I commented on the morality of strategically defaulting here, but this Fresno Bee article addresses more of the practical issues involved and the author seems to do a good job of answering all of the common questions. One question answered is the hit on one’s credit score from a foreclosure. This is what the article said on that: Like any foreclosure, a strategic default leaves a scar on a borrower’s credit history. Credit counselor Dees — whose housing counseling program is underwritten by an assortment of federal grants and grants from banking organizations and other industries — said many of his clients are frustrated after their bank has denied a plea for help, especially after so much news about bank bailouts and government programs to modify loans. “One of the first things we explain is that you’re not hurting the bank by walking away,” Dees said. “You’re only putting yourself in a worse situation.” While still a red flag, either a short sale — in which a bank agrees to let the owner sell the home for less than the balance owed — or a deed in lieu of foreclosure “look more favorable on a credit report,” Dees said. “It’s much better to work with the lender to get it sold the right way.” Maddux and White suggest that the effects of foreclosure are overblown. “The perception is grossly misrepresented,” said Maddux. “The damage isn’t as bad as people think — it’s about 100 [to 125] points on a credit score.” White said most people “can expect to recover from the negative impact of foreclosure on their credit score within a few years.” By renting for far less, they can apply the rest of their mortgage payment to get ahead on other bills, he said. With the number of people defaulting, I had assumed the credit impact could not be that bad, but I had not yet seen someone take a guess as to what the average hit was.

WORK COMP BASICS

Chapter 7 is designed as an orderly, court-supervised procedure by which a trustee collects the assets of the debtor’s estate, reduces them to cash, and makes distributions to creditors, subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. ( Because there is usually little or no nonexempt property in most chapter 7 cases, there may not be an actual liquidation of the debtor’s assets. These cases are called “no-asset cases.” Usually a debtors with assets that they wish to keep and that are not covered by exemptions file chapter 13 bankruptcy. A creditor holding an unsecured claim will get a distribution from the bankruptcy estate only if the case is an asset case and the creditor files a proof of claim with the bankruptcy court. In most chapter 7 cases, the debtor receives a discharge that releases the debtor from personal liability for certain dischargeable debts. The debtor normally If you are a homeowner, you may be able to keep your home if it fall within an homestead exemption. If you are a renter, then other exemptions apply so you may keep items of personal value to you. This will be determined once you have a consulation with one of our attorneys.

REDEMPTION; HOW WORKERS COMP RESETS YOUR LIFE

When you file a bankruptcy case, you are required to value all of your vehicles. When your vehicle is worth less that what you owe on it, it is possible to do a redemption. Redeeming the loan is when you get the court to assist you in forcing the lender to accept the current fair market value of the vehicle as payment in full on the loan you owe. For example, if you have a vehicle worth $6,000 and you owe $10,000 on your loan, a redemption would allow you to pay $6,000 up front to the lender, and the court would discharge the remaining $4,000 you owe in the bankruptcy.

The main pro of redemption is that you can save a LOT of money because you are only paying the amount that your vehicle is actually worth.

The down side is that most clients do not usually have a large amount of cash to pay up front, and redemptions do not permit payment plans. Most clients get a redemption loan - this is a hard money loan from a new lender, often at a very high interest rate. It is important to make sure that the redemption loan is affordable, because that new loan will not be included in the
bankruptcy. A good bankruptcy attorney can help you negotiate a redemption loan that can save you thousands of dollars and decrease your monthly vehicle payment - plus, you get to keep the vehicle!

You may have a relative who will loan you the money or even buy the vehicle and sell it back to you.

Redemptions require you and your attorney to attend a special court appearance where you must prove the fair market value of the vehicle you are redeeming. Often your lender will contest the value we list, so having attorney representation is very important.

To learn more about redemption or to set up a free consultation with our bay area bankruptcy attorney, please call.

Read more: http://www.articlesbase.com/bankruptcy-articles/redemption-how-bankruptcy-can-dramatically-reduce-your-monthly-vehicle-payment-2663844.html#ixzz0rW9xjib0
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CAN I RETRAIN WITH WORKERS COMPENSATION

The more equity in your home the more beneficial it is to the lender to foreclose. While foreclosure makes the lender whole, it may be a financial disaster for you. Your home is gone, your equity is gone, your credit is negatively affected, and you incur the costs of moving. You should always try to avoid foreclosure even if it means selling your house. There are ways to avoid foreclosure like contacting your lender as soon as you realize you have a problem. Lenders may be able to assist you in lowering your payments. Be sure to prioritize your spending and you may be able to reduce your monthly expenditures – by putting a membership on hold. If you are behind on your home mortgage filing for bankruptcy may allow you to keep your home. Free Consultation Walking away from a home that is worth less than the mortgage debt is not simply a financial decision, it is a moral dilemma. University of Arizona associate professor of law Brent T. White argues in a paper entitled “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis” that Americans who own homes that have depreciated far below the amount owed would be better off walking away and renting. In this paper recently featured by the Wall Street Journal Online, Mr. White says homeowners are kept in these “upside-down” homes by feelings of fear, shame, and guilt that are encouraged by politicians and bankers. Free Consultation No one wants to walk away from a family home, but one should consider the financial consequences of staying. You should compare rents in your area. If they are substantially lower, then renting may suit you better. however, the tax write off from a mortgage should figure in the calculation. Depending on your tax bracket, you house payment may be written off upt to 30%. If you have a first trust deed, in California they cannot get a deficiency. Further, there is pending legislation to extend this second mortgages on your home. Call the Jolley Smith Law Office if you want to discuss this issues. 559-320-7028

HOME PROGRAMS

Explore Loan Workout Solutions with Your Lender First and foremost, if you can keep your mortgage current, do so. But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which option may be available. Some options may not apply to your loan if it is not insured by FHA. If your problem is temporary - call your lender to discuss these possibilities: • Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option. • Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund. • Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up. If it appears that your situation is long-term or will permanently affect your ability to bring your account current - call your lender to discuss options: • Mortgage modification: If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways: oAdding the missed payments to the existing loan balance. o Changing the interest rate, including making an adjustable rate into a fixed rate. o Extending the number of years you have to repay. • Partial Claim: If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan. You qualify for an FHA partial claim if: o Your loan is between 4 and 12 months delinquent. o You are able to begin making full mortgage payments again. When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and is due when you pay off the first mortgage or when you sell the property.

WHAT WORKERS COMPENSATION CAN DO FOR YOU

What Bankruptcy Can and Cannot Do Bankruptcy is a powerful tool for debtors, but some kinds of debts can't be wiped out in bankruptcy. Bankruptcy is good at wiping out credit card debt, but you may have trouble eliminating some other kinds of debts, including child support, alimony, most tax debts, student loans, and secured debts. What Bankruptcy Can Do If you are facing serious debt problems, bankruptcy may offer a powerful remedy. Here are some of the things filing for bankruptcy can do: Wipe out credit card debt and other unsecured debts. Why shouldn't I reaffirm my credit card debts in bankruptcy? Bankruptcy is very good at wiping out credit card debt. Unless you have a special "secured" credit card, your credit card balance is an unsecured debt -- that is, the creditor does not have a lien on any of your property and cannot repossess any items if you fail to pay the debt. This is precisely the kind of debt that bankruptcy is designed to eliminate. Besides credit card debt, you may have other unsecured debts, and bankruptcy can wipe these out as well. If you file for Chapter 13 rather than Chapter 7, you may have to pay back some portion of your unsecured debts. However, any unsecured debts that remain once your repayment plan is complete will be discharged. Stop creditor harassment and collection activities. Bankruptcy can stop creditor harassment, but if the "harassment"' is simply phone calls and letters, there are simpler ways to stop it; see What to Do If a Bill Collector Crosses the Line. If the harassment is more serious -- for instance, if the creditor is about to repossess your car or foreclose your mortgage -- bankruptcy can help; see How Bankruptcy Stops Your Creditors: The Automatic Stay. Eliminate certain kinds of liens. A lien is a creditor's right to take some or all of your property and will survive bankruptcy unless you invoke certain procedures during your bankruptcy case.

YOU CAN SAVE JOB

You may want to keep your car in bankruptcy. Most attorneys will advise against it because after discharge, you make get in to financial trouble and will not have any protection against repossession and collection efforts of your lender. In some cases, you may have to sign a reaffirmation agreement with the lender. Statement of Intention In your papers, you have to state your intention as to whether you want to surrender your car, reaffirm the debt or redeem the vehicle. By doing nothing and not stating your intention, or simply “riding through” – and continuing to pay the car after bankruptcy generally is not available as an option. You have to act on your statement of intention promptly – within 45 days. The reaffirmation agreement You must file a reaffirmation agreement and contract to pay the loan after the discharge. If you don’t pay the debt in the future, you’re still liable personally for it. You have to be up to date with payments to reaffirm. Otherwise, you’ll lose the car and still be liable on the debt. You need to be able to afford the loan. Maybe you can maybe you can’t. Your lawyer must also attest to your ability to pay. Some lawyers just won’t do this. Some lawyers are successful in negotiating a better deal for you as a condition to entering into a reaffirmation agreement. You may have to pay an extra fee for this. Discuss it with your attorney The reaffirmation hearing If your lawyer doesn’t sign off on a reaffirmation agreement, you will be called to court on a Reaffirmation Hearing. Don’t be afraid of this. The judge will ask you if you can afford to pay for the car. You’ll explain whether you need the car, whether it’s the best deal you can get and how you can afford it. If all is in order, you can reaffirm before your discharge. When to file a reaffirmation agreement A reaffirmation agreement must be signed before discharge. So doesn’t dilly dally on this point? And if you don’t sign a reaffirmation agreement, the car lender will get an order saying the automatic stay and then try to repossess your car. Laws vary from state to state but in Illinois, your bankruptcy is ground for repossession absent reaf