Bankruptcy may seem like a drastic choice, especially when considering its repercussions on credit scores. However, bankruptcy is often the best option for people burdened by unmanageable debts. It’s a way to start over and rebuild, paving the path towards a more secure financial future.

Bankruptcy offers two main options for individuals – Chapter 7 and Chapter 13. Chapter 7, also known as liquidation bankruptcy, entails the sale of a debtor’s non-exempt assets by a bankruptcy trustee. The proceeds are then used to pay off creditors. This option completely wipes out unsecured debts and provides an opportunity to start a fresh financial chapter.

Chapter 13, on the other hand, is a reorganization bankruptcy. It allows individuals with a regular income to develop a plan to repay all or part of their debts over a three-to-five-year period. This option safeguards individuals from foreclosure on their homes, catch up on missed car or mortgage payments, and pay back taxes.

Engaging an El Dorado CA Bankruptcy Lawyer can guide you through the complexities of the bankruptcy laws, and decipher which option is most suitable for you. They can provide advice on asset protection, debt relief options, dealing with creditors, and provide representation in court if needed.

Beginning on a new financial journey post filing for bankruptcy can be overwhelming. It is critical to adopt certain habits to prevent falling back into the debt trap. Establishing a budget and sticking to it, creating an emergency fund, and living below your means are valuable skills that can cushion you against unforeseen future financial crises.

Another beneficial strategy is to focus on rebuilding your credit. This may involve timely payment of bills, regular checks on your credit report, and opening a secured credit card or credit builder loan, which can help you gradually rebuild your credit over time.

With the right assistance by your side, you can resolve your current issues effectively and forge ahead towards a financially secure future. Reclaim control over your financial matters with a reliable bankruptcy lawyer and gradually regain your financial health.

For further assistance with bankruptcy in El Dorado County, you may reach out to Liviakis Law Firm at 916 459 2364. Whether it’s filing for bankruptcy or strategizing for a future free of financial worries, our legal team offers comprehensive services tailored to your circumstances.

Firstly, it’s important to understand that a Chapter 13 plan modification is not a one-size-fits-all process. It requires a thorough review of the debtor’s current financial situation. Here are several pieces of information that a debtor may need to provide:

Income and Expense Changes

If the debtor’s income has decreased or expenses have increased, they will need to provide detailed information about these changes. This includes pay stubs, bank statements, and receipts. Moreover, if there’s a change in employment status, the debtor needs to provide proof of unemployment or new employment.

Changes in Assets

If the debtor has acquired new assets or if the value of current assets has changed, this information must be disclosed. The debtor should provide documents such as property appraisals, vehicle titles, or bank statements.

Changes in Liabilities

Any changes in existing debts or the acquisition of new debts also need to be reported. This could include new loans, changes in mortgage payments, or an increase in credit card debt. The debtor should provide the necessary paperwork to illustrate these changes.

Once all the necessary information has been gathered, the debtor should consult with their bankruptcy attorney to discuss the potential impacts of the modification. The attorney will guide the debtor through the process, ensuring that all legal procedures are correctly followed, and that the debtor’s best interests are protected.

At Liviakis Law Firm, we understand that dealing with debt can be overwhelming. If you’re considering modifying your Chapter 13 plan and need legal advice, don’t hesitate to reach out to a qualified bankruptcy lawyer to provide the guidance you need to navigate through your financial challenges.

Understanding the relationship between inflation and bankruptcy is crucial in today’s volatile financial climate. As inflation rates rise, one might wonder if there is a corresponding increase in bankruptcy filings. Let’s delve into this issue and shed some light on this complex correlation.

Understanding Inflation

Inflation refers to the gradual increase in the overall prices of goods and services over a certain period. This process effectively reduces the purchasing power of money, meaning consumers are able to buy less with the same amount of money. Higher inflation rates can have a significant impact on people’s ability to meet their financial obligations, potentially leading to an increase in bankruptcy filings.

The Impact of Inflation on Bankruptcy

Inflation can indirectly impact the number of bankruptcy filings. When inflation rates are high, costs of living increase while wages may not keep pace. This scenario can place a significant financial strain on individuals and businesses, causing them to accrue more debt to keep up with rising costs. Over time, the burden of this debt can become unmanageable, leading to bankruptcy.

Bankruptcy: A Brief Overview

Bankruptcy is a legal process that provides individuals or businesses unable to pay their debts with an opportunity to seek relief from some or all of their debts. While it can offer a fresh financial start, bankruptcy also has severe consequences, including a significant impact on credit score and future borrowing capability.

Is There a Direct Correlation?

While it seems logical to assume a direct correlation between inflation rates and bankruptcy filings, the relationship is not as straightforward as it appears. Other factors such as unemployment rates, changes in bankruptcy laws, and individual financial management also play significant roles in bankruptcy filings. Therefore, while inflation can contribute to financial stress leading to bankruptcy, it is not the sole determinant.

Conclusion

In conclusion, while inflation can contribute to an increase in bankruptcy filings, it is one of many factors at play. If you find yourself struggling with debt and considering bankruptcy, it’s essential to seek professional advice. A bankruptcy lawyer can provide a sound legal strategy for debtors dealing with high inflation. At Liviakis Law Firm, we are dedicated to helping our clients navigate these complex financial situations. Give us a call at 916 459 2364 to explore your options.

Born and raised in Northern California, Mik Liviakis always knew he wanted to make a difference in the lives of the people in his community. After earning his undergraduate degree, he pursued his dream of becoming a lawyer at the University of Pacific, McGeorge School of Law. Upon graduating, he soon took up the cause of helping individuals and businesses navigate the often complex and confusing world of bankruptcy law.

From the onset, Liviakis was uniquely aware of the emotional toll financial difficulties can have on individuals and businesses. With a commitment to provide compassionate and comprehensive legal advice, he established Liviakis Law Firm. The firm’s primary goal has always been to help clients regain financial stability and start anew, free from the burden of unmanageable debt.

Liviakis Law Firm has since grown into one of the most respected bankruptcy law firms in Northern California. This is largely due to Mik Liviakis’ dedication to his clients and his unwavering commitment to providing high-quality legal services. Liviakis’ approach to bankruptcy law is both proactive and personalized. He understands that no two cases are the same, and as such, he tailors his legal advice to meet the unique needs of each client.

Mik Liviakis believes in staying current with the latest developments in bankruptcy law. He regularly attends seminars and legal education courses to keep abreast of new bankruptcy laws and regulations. This commitment to continuous learning enables him to provide his clients with informed and up-to-date legal advice.

Being a leading bankruptcy attorney in Northern California is not just about having a comprehensive understanding of the law. It’s also about having the ability to empathize with clients, to understand their fears and concerns, and to guide them through the bankruptcy process with confidence and assurance. It’s about helping clients regain control of their financial future. And that’s what Mik Liviakis does best.

In conclusion, Mik Liviakis’ journey to becoming a remarkable bankruptcy attorney is a testament to his dedication, hard work, and commitment to his clients. His unique approach to bankruptcy law, coupled with his unwavering commitment to his clients, has made Liviakis Law Firm a trusted name in Northern California.

For support navigating bankruptcy law, reach out to Liviakis Law Firm at 916 459 2364.

Bankruptcy law, like most legal fields, is complex and requires a thorough understanding of various federal and state laws. It’s not something that can be effectively handled without professional help. That’s why it’s crucial to find an attorney who has a deep understanding of bankruptcy law and a proven track record of helping clients navigate through the process.

One of the reasons it can be hard to find a suitable Sacramento bankruptcy attorney is the abundance of options. There are numerous law firms and solo practitioners in the area, each claiming to be the right choice. This abundance can be overwhelming, making it difficult for individuals to make an informed decision.

Another challenge is understanding the specific needs of your case. Not all bankruptcy cases are alike. Some may involve personal bankruptcy while others may involve business bankruptcy. Different attorneys may have more experience with one type of bankruptcy over the other. Therefore, it’s important to find an attorney who has experience handling cases similar to yours.

Cost is another factor that can make the search for a good Sacramento bankruptcy attorney challenging. Legal services can be expensive, and individuals facing bankruptcy are, by definition, in a precarious financial situation. However, it’s important to remember that while cost is a factor, it should not be the only consideration. It’s often said that you get what you pay for, and this can certainly hold true when it comes to legal representation.

Finally, finding an attorney who you feel comfortable with and who you trust can be a challenge. Filing for bankruptcy is a stressful process, and having an attorney who you feel understands you and your situation can make the process much smoother.

To simplify your search, consider Liviakis Law Firm. Their team of attorneys are dedicated to providing personalized attention to each client, guiding them through the bankruptcy process with empathy and professionalism. They understand the complexities of bankruptcy law and strive to provide the highest quality legal representation to their clients. Contact Liviakis Law Firm today at 916 459 2364 to discuss your bankruptcy needs.

One of the primary ways the Presidential Election could impact bankruptcy options is through changes in banking and financial regulations. Depending on the perspective of the administration, regulations might either tighten or loosen. A tighter regulatory environment could make it harder for individuals and businesses to file for bankruptcy by imposing stricter eligibility requirements. On the other hand, a more lenient policy might make the process more accessible, but it could also risk potential abuses.

Another way the Presidential Election could influence bankruptcy options is by changing the bankruptcy code. The bankruptcy code is a federal law, and amendments to it must be passed by Congress and signed by the President. Therefore, the priorities of the administration in power could affect the ease with which individuals and businesses can discharge their debts. They could also impact the rights of creditors and the protections available to debtors.

For instance, an administration that prioritizes consumer protection might push for amendments that provide more protections for individuals in bankruptcy, such as expanding the types of debts that can be discharged or increasing the exemptions that allow debtors to protect certain assets from creditors. Conversely, an administration more focused on business interests might advocate for changes that make it easier for businesses to restructure their debts and continue operations.

The Presidential Election could also affect bankruptcy options through its impact on the economy. Economic conditions can influence the number of bankruptcies. For example, a healthy economy might reduce the number of bankruptcy filings, while a struggling economy might increase them. Therefore, the economic policies of the administration in power can indirectly impact bankruptcy options.

While it’s impossible to predict exactly how the Presidential Election will affect bankruptcy options, it’s clear that it can have a significant impact. If you are considering bankruptcy, it’s important to stay informed about potential changes and understand how they might affect your situation. At Liviakis Law Firm, we’re here to help you navigate these complex issues. You can reach us at (916) 459-2364 for more information.

Create a Budget

Creating a budget is the first step in tackling debt. It helps you understand how much money you have coming in and going out each month so that you can determine where adjustments need to be made in order to free up funds for repayment. To create an effective budget, track your income and expenses over the course of one month—including any additional sources of income (like side hustles) or non-monthly expenses (like car insurance). Once you have tracked all of your spending for one month, create a plan for how you will use those funds most effectively.

Pay More Than The Minimum Balance

If you have credit card or loan payments due each month, it’s important to pay more than the minimum balance due if possible. This will help reduce the amount of interest accruing on your account and shorten the life of the loan or credit card balance. If paying more than the minimum isn’t doable right now due to other financial obligations, consider making smaller payments multiple times per month instead of just once per month. Doing this will reduce your overall principal balance faster and decrease the amount of interest accrued over time.

Take Advantage Of Debt Snowball

The “debt snowball” strategy involves paying down debts from smallest balance to largest balance rather than from highest interest rate to lowest interest rate—which is known as “debt avalanche” method. Paying off smaller balances first gives you a sense of accomplishment as well as momentum; this can encourage motivation as opposed to becoming overwhelmed by larger balances due later on down the line. Additionally, if utilizing both strategies together works best for your current situation—paying extra on high-interest accounts while still working toward paying off lower balances—that may be an option as well!

Paying off debt isn’t easy but it can be done with careful planning and dedication! By following these tips, creating a budget that works for you, paying more than just minimum payments when possible and taking advantage of debt snowball/avalanche approaches – you will be able get back control of your finances in 2023! For any questions about debt relief and finding financial freedom in 2023, contact our team of expert Sacramento bankruptcy lawyers today. Happy New Year!

When the money supply increases, each unit of currency buys fewer goods and services, leading to inflation. When the production of goods and services decreases, the prices of those goods and services increase, leading to inflation. Given the problems with the supply chain and workforce, many Americans are feeling the effects of inflation in their everyday lives and wallets.

Rising Costs, Sinking Values

Inflation isn’t the only growing concern in recent weeks. Many economists are now concerned about the rising chances of a full recession. A recession is a period of time where there is a general decline in economic activity. This can be caused by many factors, such as a decrease in consumer spending, an increase in taxes, or a decrease in government spending.

Inflation can be a cause of recession, as increased prices lead to lower spending and demand in the economy. Recessions can last for a few months or a few years, and they can have a major impact on the economy. During a recession, unemployment typically increases, as businesses lay off workers to cut costs. Inflation may also decline during a recession, as businesses cut prices to attract customers.
As economists and the government scramble to combat the rising inflation and looming chances of a recession, many are left wondering how bad things may negatively impact their lives.

If you are experiencing problems with debt, have recently lost your source of income, or have property facing repossession or foreclosure; contact an Elk Grove bankruptcy attorney today. Our team of experts can help you prepare for the recession financially, protect your property, and resolve your debts to better prepare for the uncertainty ahead.

Getting out of debt can seem overwhelming if you have ever been in deep water with debt. There are several options for getting out of debt, each with its own benefits and risks. It is important to understand that not all debt relief solutions are the same. Some debt relief solutions may not be effective for resolving certain debts or may even put you at risk of debt collection.

The bankruptcy process can be a viable option for debt relief in most situations, often with more benefits than risks. An advantage of the process is the immediate halt to collections and foreclosures during the debt resolution phase. However, the bankruptcy process can be complicated for most people, especially if the case involves to jointly owned debts and assets.

Joint Debts and Assets

A jointly owned debt is a debt in which more than one person is listed as the responsible party. These debts are common among married couples, families, and parents with their children. Mortgages are the most common jointly owned debt. Mortgages are rarely the sole responsibility of just one spouse. Other common joint debts include car loans, credit cards, and some lines of credit. Problems can arise when one member of the couple seeks bankruptcy protection.

In the event that one spouse files for divorce in California, jointly held debts may become the sole responsibility of the spouse who did not file. Creditors can legally transfer repayment obligations to non-filing partners if one of the partners files for bankruptcy. In these cases, the non-filing partner may be subject to collections and garnishments by the creditor.

The term “jointly held assets” refers to assets that are legally owned by two or more parties. If one or more of the partners files for bankruptcy, the creditors and bankruptcy court may be able to claim the asset. Assets held jointly by two or more persons may be seized by creditors and the bankruptcy court if one of the partners files for bankruptcy. When an individual files for bankruptcy, the assets of their spouse, family member, friend, and investor could all be at risk. Filing for Chapter 13 may be a better solution to avoid problems with jointly held debt liability or assets.

As a lawyer helping individuals and families find debt relief, I suggest to anyone filing for bankruptcy on their own as a member of a legal partnership to consult with a Modesto bankruptcy lawyer for guidance.

The end of another turbulent economic year brings record levels of debt burdens and difficulties earning an income. The start of a new year presents an opportunity for many Americans to learn from past mistakes and set goals to improve in the upcoming months.

Here are a few strategies for boosting your budgeting and financial planning for 2022:

Develop a budget – To develop an outline of a budget and stick to it, people these days tend to use financial apps or online services. Find an app or use your online banking app to set custom spending alerts and set goals for saving and alerts when spending is too high.

Boost your savings – It can be difficult to think about saving when you are struggling to pay your bills. However, saving money doesn’t just protect you when an unexpected expense happens, it actually can build your financial profile. Automating a transfer from your checking to your savings following payday is the best way to make sure you don’t lose off on savings. This will keep you saving each month, even if it’s a small amount, towards a larger goal.

Cut the cards – Try to avoid using your savings at all costs for anything other than planned purchases or emergency repairs. It is never a good idea to use your savings to cover credit card or debt payments. This only creates more debt to an existing financial burden.

Pay more than minimum – The best way to manage your debts is to pay them off as soon as possible. Rather than paying the minimum payment each month, set aside a desired amount above the minimum and pay it each month. This allows you to pay the monthly interest, while also paying down a larger portion of the total balance; rather than just spinning your wheels paying the minimum fees of mostly interest.

Make adjustments – Making adjustments to your financial plan based on performance is one of the most crucial aspects of financial planning, and is often overlooked. If a part of your financial plan isn’t working for you, maybe you’re saving too much and not paying down your credit card balances. Evaluate the specifics plan and make a thoughtful choice about what is working and what is not working. Then you can make informed adjustments to the plan.

If you are experiencing financial hardship, or are worried about your growing debt burdens, contact our team of Modesto bankruptcy attorneys today.

The supply of holiday-related items and gifts is expected to be at its lowest in over a decade this season. While supply-chain officials work to alleviate the back log of goods stuck in the shipping ports, many people are bracing for added costs to their typical holiday items. Many consumers are beginning to report record high prices on gift purchases this season.

Although the average consumer cannot do anything about the supply and demand trends we are experiencing, they can take steps to manage their spending this holiday season. Here are a few tips for saving money this holiday season:

1. Plan your budget – This may seem like a simple strategy taught by your grandparents, but it works. Research shows that consumers who routinely track their spending, review their income and payments often, and plan for bigger purchases in their budget are more likely to stick to it.
2. Save or set aside spending budget – Part of budgeting requires that you be able to predict when some larger purchases may occur, and begin saving money for that larger purchase to avoid spending too much in too short of a time. Additionally, consumers that consistently save money each month also spend less and adhere to their budget more closely than those who do not save money. An easy way to save money each month, is by creating an automatic draft of a portion of your paycheck into your savings account.
3. Pay in cash – In budgeting for larger purchases or holiday spending, it can be tempting to lean on credit cards. However, consumers that pay in cash not only save the added costs of interest fees; but, they also spend less overall and make smarter purchases with the cash. Using credit cards can facilitate an “out of sight, out of mind” mindset that leads to more purchases.
4. Purchase small – The holidays tend to sneak up quickly each year, leading to a lot of large purchases at all once. If possible, budget for some purchases earlier in the year to spread out the costs across months to avoid overspending or using credit cards.

For more information about financial management or questions about debt relief, contact a Sacramento bankruptcy lawyer at 916-459-2364.

Many people are scrambling to buy gifts for loved ones this holiday season as a backlog of shipping containers at the ports threatens delivery before end of December deadlines. Although most people worry they won’t receive their items in time, many others are also concerned about the possibility of high prices for those items.

Costs Of Goods

Currently, vehicle and home sale prices are soaring to record levels. Financial experts are expecting that consumers will face more financial costs as a result of the supply chain breakdown. As the demand rises with the continued increase in demand, manufacturers are likely to raise prices to wholesalers to take advantage. This increase in cost often trickles directly down into the wallet of the individual consumer as everyone races to take their cut of the larger profit margins.

Competition For Goods

As the shipping and transfer of goods continue to meet a backlog, supply remains low, and demand continues to rise. As demand rises, competition among product manufacturers grows. This provides an opportunity for smaller companies to take a bigger stake in the market share. However, larger corporations have moved to reducing inventory on lower profitability items; only stocking shelves with the items that are easy to obtain and have the highest profit margins. Again, the added cost will be loaded onto the consumer.

Seasonal Surge May Feed Inflation

Economists are concerned that the current backlog in shipping and receiving of goods will further feed inflation. As industry leaders work to stabilize the economy and slow the rate of inflation, the continued surge in demand and low supply that is expected through the end of the year will only serve to keep the inflation train on its tracks for the foreseeable first quarter of 2022.

For more information about financial management or questions about debt relief, contact an Elk Grove bankruptcy lawyer at 916-459-2364.

For many Americans, finances are tight and the unknown of the coming months is frightening. Many families are facing not only financial hardship, but are also at risk of eviction and bankruptcy from high medical expenses and limited income. Fortunately, there are some options to eliminate medical debt.

Bankruptcy Options

In a Chapter 7 bankruptcy, you can get rid of your hospital bills but it might require surrendering your property to the trustee. If you have no property or it’s not worth much, then your creditors wont be paid but instead they will be discharged. If you have a great deal of medical debt, surrendering your property might not be a realistic option. If you have significant medical debt, it may be worthwhile to consider a Chapter 13 bankruptcy. Under a Chapter 13 bankruptcy, you can use a portion of your future income to pay toward your debts. This allows you to keep your property and eventually have the upaid portion of your medical debt discharged.

What if I’m behind on my payments?

If you have missed payments on your medical debt, then you will need to make arrangements to address the missed payments. If you have missed payments, it is a good idea to contact your health care provider and explain the situation. Your health care provider may have an alternative payment plan or may be willing to accept a smaller payment. Some health care providers will agree to accept payments on your debt if you are in a Chapter 13 bankruptcy. This is because a Chapter 13 bankruptcy can restructure your debt and allow you to pay the debt back in installments. If you are negotiating a settlement on your medical debt, you may be able to get a better deal by negotiating a settlement instead of filing bankruptcy.

What if I still have a balance after bankruptcy?

If your medical debt is discharged in bankruptcy, then your debt will no longer be legally enforceable. However, if you acquired more medical debt after you filed bankruptcy then you may still owe money to your health care providers. It is important to understand that the discharge in bankruptcy will not automatically erase the debt the you incurred after filing, only from before filing. If you have not paid the debt by the time your bankruptcy case is closed, then you may be responsible for paying it yourself. It is important to remember that the mere fact that a debt is discharged in bankruptcy means that you should ensure that each creditor is respecting your discharge and not continuing to bill you. If you have a debt that is discharged in bankruptcy, you are not required to pay it.

For more information about how bankruptcy can eliminate medical debt or other forms of debt causing financial hardship, contact our Roseville bankruptcy attorney office today.

Summer vacation is just around the corner, and the season is expected to be booming this year. While more people traveling this summer is great for the economy, it isn’t great for the consumer who is likely to be victim of above average hotel and airfare fees. If you are planning a trip this summer, here are a few money management tips to help you stick to your budget.

Book Early

Hotel rates are usually higher in peak seasons such as the summer and holidays. If you have your heart set on a particular destination and hotel, try booking it early; you may be able to save a good deal of money. If you book your airfare early, you’ll probably get a good deal too.

Plan Ahead

Don’t wait until the last minute to book your airfare. If you wait too long, you may have to pay a lot more. It’s a good idea to book a round trip ticket just in case you want to stay longer or extend your stay.

Pack Light or Carry On

Don’t pack more than you need. If you pack too much, you’ll spend a lot more on baggage fees.

Avoid Convenience Fees

If you have to withdraw cash from an ATM, check the fee structure before you do. Make sure that the ATM you’re using is free. Check the fee for using a credit card at restaurants, and make sure that you don’t run up more fees than you can afford.

Leave Your Credit Cards at Home

The last thing you need is a card that is maxed out and an overdraft fee. Leave most of your credit cards at home, and only take the one you need. The summer is a great time to get away and enjoy yourself. You may even save some money if you follow some of these tips.

As the easing of regulations related to COVID-19 accelerate, the clocks of financial relief are running out of time. On March 13, 2020, the White House declared a state of emergency; an act that would lead to unprecedented legislative orders to assist Americans. Now more than a year later, many provisions for relief and assistance are drawing to a close; leaving millions at risk of further financial hardship.

Too Soon or Too Late?

The state of emergency triggered financial disaster relief fund availability to states. States were able to allocate those funds to local communities to benefit citizens. Federal unemployment benefits were widely expanded, and moratoriums enacted to prevent foreclosure and evictions during turbulent times.

Earlier this month, federal unemployment benefits were extended through September 4, 2021. Fannie Mae and Freddie Mac are extending the single-family foreclosure and real estate owned evictions. However, those are set to expire as early as June 30, 2021. Although this grace period may soon run out, homeowners and renters still have time to take advantage of the moratorium while working towards a financial plan to get caught up. For example, family homeowners may also be eligible for an additional three month forbearance plan, that would further defer payments for 90 days.

If you are facing or already experiencing a notice of foreclosure or eviction, contact our Citrus Heights bankruptcy attorney law office today. We can help you stop foreclosure while working to develop a debt relief plan that works for you.

The majority of Americans have experienced some financial challenges this year. Many hardworking people have lost their jobs, have had to cash out retirement and asset funds to make ends meet, or had to seek government assistance. Many more have simply had to rely on credit cards and other risky financial habits to get by. Whether you have experienced severe financial distress, or are simply looking to start the New Year off on a path to financial freedom; there are some quick and easy ways to improve your financial outlook for 2021.

Analyze

The first step towards improving your financial situation is to analyze and assess where you currently are in your financial goals. Begin by examining the monthly, or weekly, costs for essential expenses such as housing, utilities, food, clothing, medical care, and debt payments. Next review the expenses for non-essential expenses. Compare the percentage of your income spent on essential versus non-essential expenses. Further, calculate the overall percentage of income-to-expenses.

Develop

Once you have taken a deeper look into the details of your financial situation, you need to develop a plan. Your plan should consist of a few key components, starting with a savings/emergency fund. Yes, you should still be saving for emergencies even when money is tight. In addition to your emergency fund, your plan should also focus on eliminating unnecessary expenses from your monthly spending budget. This will help lower your income-to-expense ratio. Finally, outline a strict plan for your debt payments. If you cannot afford to pay more than the minimum payment, look for ways to maximize your monthly payments by transferring the balance to a zero interest card or request a lower interest rate from your current company.

Establish

Many times, people fail at financial recovery because they do not put their plan into practice. Like a New Year’s resolution for any goal; financial health should take the same priority and discipline as other areas of health in your life. Be sure to take the plan you have developed and put it into action each and every day. Build yourself small rewards for your discipline in getting back on solid financial footing, this keeps you motivated to continue your consistent efforts.

If you are experiencing trouble with your finances, are worried about your debt payments, or are already being harassed by creditors; contact an office of compassionate Sacramento bankruptcy lawyers today at 916-459-2364.

Unemployment claims have reached record highs above levels ever seen in history. States are reporting unemployment claims upwards of 900,000 a week. As many people are desperately seeking assistance to make ends meet, many feel relieved by the news this week that an extension to, and addition of new, unemployment benefits may soon be available.

Unemployment Benefit Considerations

While unemployment benefits serve a great need for our citizens, they do not always come without a cost. In fact, there are silent consequences looming around the corner for beneficiaries of unemployment benefits that everyone should know about.

First, unemployment benefits are taxable. By law, unemployment compensation is taxable and must be reported on a tax return; this also includes the benefits provided under the Coronavirus Aid Relief and Economic Security (CARES) Act.

Therefore, it is suggested a beneficiary of unemployment compensation should withhold taxes at each benefit check to avoid owing those taxes at the time of filing. If taxes have not been withheld, the beneficiary should begin planning for their tax liability bill and begin working to have payment for the liability, or secure a payment option with the IRS.

Another consideration of unemployment benefits is how they are handled for individuals experiencing financial insolvency. Unlike other forms of debt, tax debts are higher priority and have fewer options for assistance if paying the debts is not possible. Generally, income tax debt is not eligible for a debt discharge in bankruptcy.

Whether you are facing financial hardship over the loss of a job or income, are currently receiving or in need of unemployment benefits, or have concerns about your tax debts; contact one of our Sacramento bankruptcy lawyers today.

In 2019, the domestic box office hit the second highest record for profitability; bringing in some $11.4 billion. Prior to March of this year, many predicted that the profitability in 2020 would achieve a similar record. However, the entertainment and nightlife industries have taken one of the largest blows to profitability due to the pandemic.

As the world’s largest cinema chain, AMC has struggled to maintain any level of profitability this year. AMC company shares have decreased by 60%; 30% of which has plummeted in the last week alone. However, it isn’t solely the consequences of a sudden health crisis that brought the financial insolvency AMC is currently experiencing. Prior to this year, AMC was already struggling to resolve some $5 billion in existing debt. As 2020 draws to a close, AMC has filed for bankruptcy in hopes of reorganizing debts and maintaining operations.

Last week, in efforts to resolve growing debt burdens and better position themselves for financial recovery, AMC agreed to accept a $100 million investment by Mudrick Captial Management. This investment is outlined to help the cinema chain survive the financial impact of the pandemic. However, the company reportedly still needs $750 million in liquid assets to fund employee retirements through the year 2021.

Therefore, many industry experts agree that AMC could survive the current economic climate if they are granted debt relief through a Chapter 11 bankruptcy. There is hope afloat for AMC and cinema fans, as the reorganization sought by AMC executives is aimed at protecting one of American’s favorite past times.

As the year 2020 continues to witness a sharp decline in economic growth, businesses all over the U.S. are filing for bankruptcy. This mainly includes the brick-and-mortar retail sector businesses that have succumbed to the economic meltdown due to operational difficulties and financial stress. As a result, quite a few retail companies have petitioned for bankruptcy, including household names such as J.C. Penny and J. Crew, Pier 1.

RTW Retailwinds

The most recent addition to the list of companies filing for bankruptcy was RTW Retailwinds, the fashion retailer’s parent company New York & Co. This is likely to result in the shutting down of business operations across 400 locations. However, the management of New York & Co does not plan to shut down the business entirely, but rather spin out portions of its business to repay creditors. In the bankruptcy petition, the retail giant declared assets worth $412 million and liabilities worth $396 million.

Sur La Table

Sur La Table has been in the kitchenware business for slightly over five decades. However, the privately held kitchenware retailer could not survive through the economic slowdown. In a recent move, Sur La Table filed for bankruptcy under Chapter 11. According to a report, Sur La Table plans to shutter down half of its operations, which is roughly about 60 stores in the U.S. The Seattle-based kitchenware retailer is currently negotiating a 70-store deal with the Fortress Investment Group.

Muji USA

Muji USA, the Japanese home goods chain, filed for bankruptcy protection under Chapter 11 with $64 of million debt. The minimalist home goods supplier plans to close non-revenue generating stores and renegotiate its leases.

After analyzing some of the top retailers that have filed for bankruptcy, two significant problems stand out. First off, these companies relied more on their brick-and-mortar business model, and secondly, they did not have a reliable disaster management plan in place. This made it impossible for them to adapt their operational model quickly.

If you are in that tight spot and are running into debt, you still have a handful of options. Depending on your assets and liabilities and your ability to repay your debt in the next five years, you can file for liquidation under Chapter 7 of the Bankruptcy Code or reorganization under Chapter 13.

Contact a Sacramento bankruptcy attorney to find out how you can get financial relief.

Budgetel Inn in Modesto California filed for Chapter 7 bankruptcy this past week. United Resorts LLC operates the nearly 100 room Budgetel Inn and hopes to liquidate its assets to pay off the motels debts. According to the court documents filed, United Resorts debt includes $61,439 in lease payments, $99,534 to California Department of Industrial Relations and $160,000 that United Resorts CEO and President loaned the motel for renovations, capital improvements, and other expenses.

One day after filing bankruptcy, tenants were informed that the motel was closing and they were to vacate the premises by that afternoon. This short notice came as a surprise to many, as most were waiting on refunds for rent that they already paid. Approximately half the people that stayed at the Budgetel Inn stay as long-term guests consisting mainly of homeless and low-income families. The motel has since ceased business activities, and the main office doors are padlocked shut.

Unfortunately, businesses that fail to pursue debt relief efforts early enough in their financial struggle may succumb to the results of their delay. While the motel could have restructured their debts in a Chapter 11 “reorganization bankruptcy”, they fell short leaving them with minimal options. Now in an attempt to resolve their financial liabilities, the motel will pursue a Chapter 7 “liquidation bankruptcy”. Here, a court-appointed trustee will sell off the debtor’s assets and distribute the funds to creditors and agencies the debtor owes money too.

For those left out in the cold, there are local agencies that can help. St. Vincent De Paul Ministry has arranged temporary lodging at other Modesto motels for 57 people including families with children, disabled adults, and senior citizens. The single tenants were advised to go to Beard Brook Park where the city allowed the homeless to set up a tent city. Social service workers also arrived at the Budgetel to provide assistance to the tenants.

If you find yourself in the circumstances beyond your control and you are struggling to pay your debt, don’t wait! There are many options to help you get out of debt and back on the path to financial freedom. Contact a Sacramento bankruptcy attorney to find out what choices you may have to get debt relief.