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Bankruptcy Lawsuits Wage Garnishment

San Jose Bankruptcy Attorney Discusses Wage Garnishments

You never thought they would take it this far, but they did.  You realize that they can find you anywhere and at anytime and take what you have worked so hard for.  This isn’t the plot of the next Saw movie, this is a creditor who is taking 25% of your wages every pay period who you never thought would be able to find you.  Many debtors are going through this very stressful situation.  What happens is the creditor files a lawsuit against you for the debt owed and they obtain a judgment for the debt.  Once they obtain the judgment, the creditor is able to request a wage garnishment which will most likely be granted by the court.  The wage garnishment is then sent to your Human Resources department where your employer is obligated by law to follow the judgment and withhold up to 25% of your earnings every pay period pre-tax.  For most people, 25% of their earnings is debilitating chunk of money to lose every month, not to mention taxes, healthcare and retirement withholdings as well.  But what most people do not know is that this process is much more stressful than it has to be and can be gone immediately at the filing of a bankruptcy.

A wage garnishment is stopped immediately once you file a bankruptcy.  In fact, any lawsuits that have been filed against you will stop immediately after filing a bankruptcy.  This means that once you file, you have the protection of the “automatic stay” and the creditor can no longer take money from your wages.  Depending on if you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, the entire debt could be discharged and you will no longer be liable for the debt and no creditors will be able to reach your hard earned money.  If this is happening to you, we would encourage you to call a bankruptcy attorney to discuss your situation and see how to stop it before you see your thousands of dollars disappear every month.

If you have questions about bankruptcy please give EH Law Group a call at (415) 230-5388 or visit our website at www.ehlawgroup.com.  Our San Francisco bankruptcy attorneys, San Jose bankruptcy attorneys or San Mateo bankruptcy attorneys will be able to assist you.  We will discuss your situation and assess what the best option is for you.  We look forward to speaking with you soon!

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Bankruptcy Divorce

San Mateo Bankruptcy Attorney Discusses Divorce and Bankruptcy

We’ve all heard the old addage, “when it rains it pours” and it is never more true than when a couple files for divorce and then must also file for bankruptcy.  Divorces can be costly especially if both the parties are not in agreement as to how to divide their assets and liabilities.  Kelly Rutherfor, an actress on the hit show “Gossip Girl” just filed for bankruptcy following an extremely contentious divorce and custody battle.  In her case, she had a son that she shared 50/50 custody with, however, because her husband lives in a foreign country and cannot come back to the States the children live with him and she must go overseas to visit them.  She has been fighting to get physical custody of them to no avail.  Rutherford is filing for Ch. 7 bankruptcy claiming over 2 million dollars in debts and only around $23,000.00 in assets.  One of the biggest debts that she owes is to her divorce/family law attorney.

It is no surprise that many Americans have the same problem.  Either the divorce will set the couple back financially or the couple’s grim finances have caused them to get divorced.  It could be very beneficial for both parties to file bankruptcy before the divorce because there will no longer any debts to divide among the couple; an issue that can be a hot button during settlement negotiations.  In California, all debts acquired during marriage are considered community property to be divided among both parties equally no matter what name the debt is under.  Therefore, if the couple files for bankruptcy before the divorce proceedings, they can alleviate this very contentious issue leaving them to settle the divorce more amicably.

If you have questions about bankruptcy please give EH Law Group a call at (415) 230-5388 or visit our website at www.ehlawgroup.com.  Our San Francisco bankruptcy attorneys, San Jose bankruptcy attorneys or San Mateo bankruptcy attorneys will be able to assist you.  We will discuss your situation and assess what the best option is for you.  We look forward to speaking with you soon!

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Bankruptcy

San Francisco Bankruptcy Attorney Discusses Toni Braxton’s Bankruptcy

Bankruptcy affects millions of people in the U.S. every year and many of those people are familiar faces that we have seen before.  Willie Nelson, Debbie Reynolds, Mark Twain, Rembrandt, and Mike Tyson are just a few of the famous people that have filed for bankruptcy in the past.  Toni Braxton, who has filed for bankruptcy twice in the last 15 years, has made headlines again with her most recent case.

The trustee who is in charge of her 2010 bankruptcy case is accusing her of bankruptcy fraud.  They are saying that Toni illegally transferred funds to her ex-husband in an attempt to avoid paying back creditors.  The total amount transferred was $53,490.  This might not seem like a large amount of money when you are in debt somewhere between $10 to $50 million dollars but to the trustee and your creditors this is money that should have been going directly to them.   The trustee is now suing her ex-husband to collect the money that was transferred to him.  Toni is proclaiming her innocence by saying that she did not know that transferring the money was illegal because it was going to pay for personal and business expenses.   If there is a fraud in the transferring of money then the debt does not get discharged in the bankruptcy.

If you have questions about bankruptcy please give EH Law Group a call at (415) 230-5388 or visit our website at www.ehlawgroup.com.  Our San Francisco bankruptcy lawyers, San Jose bankruptcy lawyers or San Mateo bankruptcy lawyers will be able to assist you.  We will discuss your situation and assess what the best option is for you.  We look forward to speaking with you soon!

 

Categories
Loan Modification

Our San Francisco Bankruptcy Attorney Talks About New Loan Modification Law

If you are a person that has been struggling with getting a loan modification in San Francisco or San Jose, do not feel beaten, because as of June 1, 2010 the new HAMP laws came into effect helping many homeowners with modifying their loans.  Typically, when negotiating with a loan service provider, many debtors feel bullied and helpless.  This is because the loan providers hold all the cards when it comes to your modification.  You are at their mercy because they can say yes or no to the modification, it seems, at their whim.  As of June 1, 2010 however, many debtors will apply for a loan modification and find that they will be granted a loan modification and will be given a 90 day window to make the proposed modification payments.  This is due to the new HAMP modifications that was passed earlier in the year.  The law allows for a debtor who applies for a loan modification be given a chance at paying the proposed modification for 90 days, after which the lender can consider keeping the modification permanent.  Another benefit of the new HAMP modification is that debtors who are currently in Chapter 7 or 13 bankruptcies will not be denied consideration for HAMP if the debtor’s bankruptcy attorney or bankruptcy trustee submits a request to the servicer.  Therefore, even debtors who are in bankruptcy will not need to worry that they will not be able to participate in starting a loan modification due to the bankruptcy automatic stay.

If you want more information about our firm, please do not hesitate to contact us.  Our bankruptcy attorneys can provide you with information and get you on the road to a fresh start.  We have offices in San Jose and San Francisco.  We look forward to meeting with you soon!