Bankruptcy – Page 4 – Law Offices of Michael J. Primus

Chapter 13 can save your business

April 24, 2019 by primuswebadmin

Small business is the backbone of our economy. In 2014, according to U.S. Census Bureau data, firms with less than 20 employees made up 89% of all businesses and employed nearly half of the U.S. workforce. Small businesses operate in a myriad of industries and are as diverse as the customers they serve. Despite their diversity, small businesses share many common elements. From customer service to accounts receivable t0 personnel, a small business owner wears many hats. Most business owners start with industry skill and work to develop business acumen. Even a veteran small business owner will need to make quick decisions with limited and imperfect information – essentially an educated guess. Will a particular ad produce? Will a potential employee become a company leader? With so many risks, things are bound to go wrong. Usually the business can survive and even thrive when most things go well but what happens when several things go sour at once? Business reorganization can be the solution.

Chapter 13 is a personal reorganization available to a small business operated as sole proprietorship. Chapter 13 stops threatening phone calls, dunning letters and even lawsuits. Chapter 13 can stop tax collectors, break a lease, stop evictions and so much more. One common misconception is that chapter 13 requires full payment of all debts. Nothing could be further from the truth. Another misconception is that chapter 13 relies on negotiation with creditors and will fail if even one creditor does not agree to the plan. In most cases, the bankruptcy judge approves a chapter 13 with no input from creditors whatsoever. The bankruptcy laws are designed to give a business some breathing room and a chance to establish payment plans for certain critical debts and obtain forgiveness of other debts. The law strives to offer much needed help to cash-strapped small businesses. Often people ask if they can just file bankruptcy for their business and if the business is a sole proprietorship then business affairs and the owner’s personal affairs are one-in-the-same which means any bankruptcy will necessarily be a personal bankruptcy and will reflect as a bankruptcy on the owner’s credit.

At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free consultation. We have offices in Walnut Creek, Antioch, and Hercules.

Can Bankruptcy Stop A Wage Garnishment? Yes!

November 30, 2018 by Michael Primus

Bankruptcy attorney Michael Primus says, “The single most common triggering event for a personal bankruptcy is a wage garnishment.” A wage garnishment is a court order requiring money to be taken directly out of a person’s paycheck and paid to a creditor. In Contra Costa County, many people live paycheck to paycheck and need every nickel. Fortunately, bankruptcy can stop a garnishment. So, whether you live in Antioch, Brentwood, Oakley, Martinez, Concord, Richmond, or Hercules, you have rights!

Filing personal bankruptcy, whether Chapter 7 or Chapter 13, gives a person immediate protection from most creditors. This protection is called the Automatic Stay and it stops foreclosures, collection lawsuits, wage garnishments (except for child support or alimony), and certain other collection activities.

When one of my Contra Costa County bankruptcy clients is having their wages garnished, the same day my office files a bankruptcy we immediately send fax notifications. We inform the creditor and the sheriff of the bankruptcy, and let them know the garnishment must stop immediately! We demand prompt compliance with the law. Ideally, not another dollar would be garnished from our client’s paychecks.

Unfortunately, stopping a wage garnishment can take a few days. Many employers are reluctant to comply until they confirm with the sheriff’s office that the wage garnishment must be stopped. The sheriffs’ offices, like so many public services, are understaffed. Therefore it may take a couple days for the sheriff’s office to communicate with the employer. Polite and persistent is the key to getting results with the sheriff’s office. The creditor is ultimately responsible for the garnishment and must return any money garnished after bankruptcy.

At the Law Office of Michael Primus, we have helped hundreds of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa County and have been sued or are having your wages garnished due to a civil judgment, bankruptcy can help.

Call now for a free in office consultation regarding bankruptcy. Offices in Walnut Creek, Antioch and Hercules.

Can I get my contractor’s license back?

March 14, 2018 by primuswebadmin

Construction, like all business, has risks and rewards. Most licensed contractors do good work and complete jobs even if unexpected events mean the job is no longer profitable. When a job goes bad, really bad, the contractor’s license can be in jeopardy. The purpose of a contractor’s license is twofold: first, to establish a standard of competence and second, to create a system of accountability.

Two of the biggest problems contractors encounter are difficult customers and injury. Unfortunately, if you work with the public you soon learn some customers have unrealistic expectations. In fact, some are never satisfied. Construction requires the use of heavy equipment, power tools, lifting, cutting, and climbing. The truth be told, even the most skilled craftsman is at risk for injury. Needless to say, a serious injury can leave the contractor unable to complete a job on schedule.

A contractor’s license can be suspended for failure to pay a construction related judgment or settlement. That means if a contractor is sued by a customer the stakes are high. Unless the contractor wins the suit, he or she must be prepared to either pay the claim or agree to make payments to satisfy the claim. If a contractor is injured and unable to work construction, things get behind and customers get upset. At the same time, contractors are people with personal bills to pay. This is where bankruptcy can come in.

The bankruptcy laws are the laws society provides to allow the honest but unfortunate person to have most debts forgiven. This means a bankruptcy can forgive a non-governmental construction related judgment assuming the job was bid in good faith and the contractor intended to do the work when the money was paid. That’s not all, bankruptcy can forgive some types of governmental debts and can establish a payment plan for governmental debts that are not forgiven. Bankruptcy can forgive (or establish a payment plan) for most debts so you can reinstate your contractor’s license quick and get back to work. Bankruptcy can also help get your driver’s license back.

If you are a contractor with construction related claims, lawsuits or judgments you are unable to pay, bankruptcy may be your best option. At the Law Office of Michael Primus we have helped thousands of clients get out of debt, stop wage garnishments, and start fresh through bankruptcy. If you live in Contra Costa, Alameda or Solano counties and have debt problems, contact us for a free in-office consultation. We have offices in Walnut Creek, Antioch, and Hercules.

References

Thomas 355 B.R. 166 (NDCA 2006)

Bertuccio 414 B.R. 604 (NDCA 2006)

Rebuilding Credit After Bankruptcy

March 6, 2018 by primuswebadmin

Most people take good credit for granted, that is, until some life event changes things. Financial adversity is never welcomed, but it is, nonetheless, a part of life. The notion of rebuilding credit assumes your underlying financial problems have been resolved leaving bad credit but not unpaid debt. The remaining question: how does one rebuild good credit? In this post, I present several tips to help you.

The first tip is to become an authorized user on a family member’s credit card. Of course, this needs to be a credit card that is being used and paid in a timely manner. An authorized user is not contractually liable for charges on the account and is not required to qualify but will get some credit report benefit when timely payments are made. Naturally, this requires the cooperation of a family member. Note: the family member is not required to actually give you the physical card nor are you expected to use it.

The second tip is to get two or three low-limit credit cards in your name. You might think you will not qualify to get a credit card due to your credit but usually that’s not true. In fact, most people receive preapprovals shortly after resolving their debts, even if they filed bankruptcy. Once you get a card (or two or three) it’s critical that all payments be made on time. More than just making payments, the key here is to utilize about 20% of your available credit. For example, if the card has a $500 limit, you should charge about $100 per month and pay it off. The idea is not to max out the card, even a low limit card.

The third tip is to get a copy of your credit report and carefully look for errors. A Federal Trade Commission study concluded that 20% of credit reports contain errors, but other studies have found errors in up to 80% of credit reports. The law gives you the right to dispute inaccurate information in your credit report. The Federal Trade Commission has excellent resources to assist consumers in correcting inaccurate information on a credit report.

Conversely, you should not bother with payday loans. Typically, payday loans will not be reported on your credit report which means they are of no use in rebuilding your credit. Similarly, paying cash for purchases does nothing to demonstrate your ability to manage debt and repay loans in a timely manner. This may seem counter-intuitive but you really need to take and repay loans to rebuild your credit.

In conclusion, you can expect to have good to excellent credit in 12 to 24 months after bankruptcy if you apply these tips.

Resources:

www.ftc.gov

www.experian.com

Is it immoral to file bankruptcy?

February 28, 2018 by primuswebadmin

You are in debt. Too much debt. Month after month things grind along but the debt remains. Maybe some of your debts have been sold to aggressive debt collectors. Along with the debt came other problems like depression, marital problems, or worse. Something needs to change. You’ve looked online and found debt relief services with big promises that just seem fishy. Maybe you found the scam alert from the Federal Trade Commission about these companies. At some point you consider bankruptcy, but you don’t want to file bankruptcy. It’s bad for your credit, and it feels like stealing. People often tell me, “I wasn’t raised this way.” My usual reply is, “your current financial situation is not your identity as a person.” At this point, we need to discuss the reason we, as a society, have bankruptcy. The purpose of bankruptcy is to give people a second chance. Second chances benefit individuals and society in many ways.

Innovation

Second chances fuel innovation. What would the world be like without Disneyland? You might be surprised to learn Walt Disney’s first company, Laugh-O-Grams, went bankrupt in 1922. Walt Disney’s financial struggles continued and he was nearly bankrupt in 1937 prior to the release of Snow White and the Seven Dwarfs. Of course, Walt Disney found immense success when he opened Disneyland in 1955 and the rest, as they say, is history. But Walt Disney is far from the only example. Milton Hershey filed bankruptcy for his business in 1882 and again in 1886 before forming the Hershey Chocolate Company. Henry Ford filed bankruptcy in 1903 before forming the Ford Motor Company. And the list goes on.

Marital Issues

As a married man, I can tell you that marriage is not easy. Financial problems put stress on a marriage. Maybe that stress is buried deep waiting to erupt, or maybe it’s at the heart of every argument. Most people do not want to get divorced but at some point they realize the fighting and anger has to stop. Divorce does not eliminate debts problems, it usually makes things worse because you are required to pay court fees, attorney fees, and take time off work to go to court. Bankruptcy has saved many marriages, and it might save yours.

Medical Issues

The cost of medical care has been increasing in the U.S. for the past 40 years. Studies have shown medical bills are a triggering event for bankruptcy. Medical care is expensive for those with good health insurance and crazy expensive for those without insurance. Medical issues can be intertwined with debt problems in several ways. A catastrophic illness can leave you unable to work causing a reduction in income. Medical bills alone can be the financial problem. Worse yet, a reduction in income can be coupled with unexpected medical bills. Finally, the stress of existing debt may cause depression or other health problems.

In conclusion, bankruptcy is not immoral if you are unable to pay your bills. In many cases a second chance is the best thing for you as well as society.

What will my credit report show after bankruptcy?

July 12, 2017 by primuswebadmin

The idea of bankruptcy scares people, primarily because of the credit ramifications. Often people wonder what will show on their credit report after bankruptcy. Some people assume bankruptcy will remove everything except the bankruptcy. Others are unsure what will show but assume it will be horrible.

Credit reports are intended to be an accurate chronology of financial events, before and after bankruptcy. Most people assume their credit reports will be accurate, but that is rarely the case. The credit reporting laws do not require lenders to report anything. It is true, lenders are not required to report your payment history. Most major banks like Bank of America, Wells Fargo, Chase and Citibank routinely report to the credit reporting agencies, but most payday lenders and small businesses do not. This means your credit report may omit substantial information.

After a bankruptcy is discharged, your debts are forgiven and there is nothing due or late to report. Often, accounts discharged in bankruptcy will be reported as “discharged,” but the law does not require it. Unfortunately, the pre-bankruptcy late payments, collections and other problems will remain on your credit report. They say time heals all wounds, and that is true for credit reports. Most marks, good or bad, are removed after 7 years.

Most people realize good credit is a history of on-time payments, and bad credit is a history of missed or late payments. Paying cash for purchases may be a wise financial decision, but it will not demonstrate your ability to repay loans. If, for example, you take new credit cards after bankruptcy you can begin to establish a history of paying debts on time. The way you use and pay revolving debt, like credit cards, accounts for 40% of your credit score making it the largest factor in a credit score. Payment history accounts for 35% of your credit score making it very important too.

Once a lender decides to report to the credit reporting agencies, the law requires all reporting to be truthful and accurate. The law gives consumers the right to dispute any mark that is not truthful and accurate. Disputing marks on a credit report must be done in writing, so there is no point in calling the credit reporting agencies. Written disputes can be submitted by mail or online.

In summary, a credit report should accurately reflect financial events before and after bankruptcy. After bankruptcy, you have the chance to begin anew.

Chapter 13 can save your business

Can Bankruptcy Stop A Wage Garnishment? Yes!

Can I get my contractor’s license back?

References

Rebuilding Credit After Bankruptcy

Is it immoral to file bankruptcy?

What will my credit report show after bankruptcy?

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.

Get Started with a Free 30-Min Consultation

Office Locations

925-934-0500

925-706-9200

510-741-1800

References

Bankruptcy, Not The End But A New Beginning. We are a debt relief agency. We help people file for bankruptcy. We provide Flexible Payment Options.

Get Started with a Free 30-Min Consultation

Office Locations

Bankruptcy, Not The End But A New Beginning.
We are a debt relief agency.
We help people file for bankruptcy.
We provide Flexible Payment Options.