Bankruptcy & Foreclosure

Do you hesitate to file bankruptcy even if you are facing foreclosure because you are concerned about your credit?  Are you more concerned about your credit or the stigma of filing bankruptcy than about saving your home?  Don’t laugh; I actually had a case like that. Marge (not her real name) filed chapter 13 bankruptcy […]

Bankruptcy Will Not Ruin Your Credit

Filing bankruptcy will probably not ruin your credit, contrary to popular opinion.  In fact, filing bankruptcy can actually fix your credit in addition to its main benefits of getting rid of your debts and protecting you from creditors. First, if you are behind on your bills, your credit is not your biggest problem.  Not paying […]

Coronavirus Pandemic And Bankruptcy

If you can’t pay your debts because of the coronavirus pandemic, bankruptcy might be the solution for you. You can eliminate your credit card and other general unsecured debts with a chapter 7 bankruptcy, almost always without paying anything for those debts. Many people have lost income and even their jobs because of the pandemic.  […]

Coronavirus Stimulus Checks Are Protected From Garnishment

Coronavirus stimulus checks are protected from garnishment in California.  On April 23, 2020 Governor Gavin Newsom issued an executive order exempting the coronavirus stimulus checks from garnishments and levies.  This means that if you have a garnishment and/or bank levy order because of a judgement against you, that creditor may not intercept your stimulus check […]

Eliminate 2d & 3d Mortgages With Bankruptcy

You may be able to eliminate 2d & 3d mortgages with bankruptcy!  This is called “stripping” the junior lien or liens, and it changes them from secured debts to unsecured ones that can be discharged in bankruptcy without losing your home.  The junior mortgage must be completely “underwater” in order to do strip it, so […]

Unemployment Benefits Available For Self-Employed People

There are now unemployment benefits available for self-employed people in California.  If you earn 1099 wages, which means that you are a contractor, a business-owner, or are self-employed, you may now apply for unemployment benefits under a new program called Pandemic Unemployment Assistance.  You may apply for those benefits here.  Previously, you had to be […]

A Little Help For Chapter 13 Bankruptcy Debtors

There is a little help for chapter 13 bankruptcy debtors in the major stimulus package known as the CARES Act of 2020.  If you cannot afford to make your chapter 13 plan payments in full because you lost income due to the coronavirus, you may change those payments to as little as $50 per month […]

Should You File Bankruptcy Now?

Should you file bankruptcy now if you have lost all or part of your income because of the coronavirus pandemic and can’t pay your debts? If you have gotten over your head in debt because you lost income due to the coronavirus, bankruptcy might be the solution for you. You could eliminate many debts with […]

Additional Financial Relief During The Pandemic

The government has provided some additional financial relief during the pandemic in addition to some mortgage forbearances, and temporary foreclosure and eviction moratoriums (see my previous blogs here for information on that relief). This relief will help some people a little, though there should be a lot more of this. California and federal income taxes […]

Help Making Mortgage Payments

If you need help making mortgage payments because of the coronavirus, the recent bailout bill provides some help, see my previous post.  But beware, you might have to repay money very soon that you were allowed to not pay during a forbearance (suspension on payments).  At least one mortgage servicer said that for people who […]