About David Nelson

I love to get people out of trouble and out of debt. In Temecula and Murrieta Call 951-200-3613 for a consultation. Connect with me on Google Plus.
Bankruptcy Attorney David Nelson on Google+

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Here are my most recent posts

Fair Debt Collection Practices Act ~ FDCPA

Can a creditor call you once you refuse in writing to pay?

You’ve written to the collection agent and told him not to call you anymore, what can you do if they call you anyway?

What if a creditor threatens to sue you?

The creditor has already missed the statute of limitations, can they continue to call you anyway?

How late can a creditor call you?



I feel like the fool on the hill shouting and no one can hear me.

I love our country and its social programs, and I wish we could pay for them.

HERE IS SOMEONE WHO AGREES WITH ME, You’ll want to have a look at what this guy has to say because if he’s right, your world is about to dramatically change forever in every way.

If our country were like a family, it would have an income of $22K/yr and expenses of $38K/yr. If we cut out the wars, we’re still in the hole because before we started borrowing the $16K/yr difference from China we were already borrowing from our retirement funds, (or social security trust funds).

Have you known anyone who borrowed from their 401k to save their house? I see it almost daily. And the wars cost our family less than the $16K/yr so we’d still be negative.

Here’s the kicker, our little family has $140K in credit card debt to the bank of China, and several other major banks around the world.

If it was a client of mine I’d say file bankruptcy; but only after you have found a way to cut your budget so that your expenses are less than your income first.

Once you file a bankruptcy what happens to your credit, no one will lend to you anymore. That’s about to happen. We can’t file as a country but our creditors have noticed we’re printing play money to pay the debts. That causes the value of the money we make our payments with to drop. If our hypothetical family printed counterfeit money as their “income from home”, then they’d all go to federal prison. Our president does it and people want to reelect him?

In any case, creditors are figuring out our country’s diabolical plan and they’re now moving to charge us more interest and in a short time, they’ll cut us off. Like a bartender kicking a drunk out the door.

The extra printed money means that if our family’s creditors expected to receive a $100/mo payment, well guess what, now they’re getting $89/mo. But we’re telling our creditors to look at the paper the money’s printed on and that the paper says $100. But they know better. Meanwhile the value of the money is still dropping because we keep printing more.

A country’s currency has a fixed value based on imports/exports/GDP and the like, but it’s relatively fixed. It’s like having a bowl of peanuts. The bowlful is worth $100 no matter how many nuts are in the bowl. 100 peanuts and each is worth a dollar. Add 100 more peanuts and the value of each drops down to 50cents. We’re constantly adding more peanuts.

Eventually they’re going to treat us as though we’ve filed a bankruptcy and stop lending us money.

Then the reserve currency status is going to go away. Basically it means that when a country buys oil it must first buy dollars and then use the dollars to buy oil. We just print more in the US. But when we have to turn around and buy Euros or Yuan to buy our oil, our price for gas in the US is going to equalize to European prices or something like about $6 to $8/gallon.

Buy Gold

A lot of people say buy gold, but if you do and anything like what I’ve described happens, then the US government will do something like what it did in 1933, historical fact I’m not making this up; the US Gov made it illegal to own more than 5 oz of gold. They didn’t buy it from you they just took it. They literally went bank to banks and emptied out safe deposit boxes.

This is coming my friend. It’s happening all around us right now.

The US Gov’s credit rating is already slipping, it’s already been downgraded. We couldn’t pay off all that debt if we wanted to. When China stops lending us money, even if the wars are over, we won’t have the money to pay for most of the social services that the government is paying for. Anyone whose parents are on social security is going to be moving in with them because it’s going to be cut, maybe by a 4th, half?

They didn’t kick 4% of the prison population out for good behavior, they just can’t afford to house those prisoners anymore.

The least bad thing that will happen, and perhaps the best we can hope for, is that they will start charging us a much higher interest rate which will drastically increase our government’s monthly/weekly operating expenses.

Have you had any friends whose mortgages adjusted up 1% or 2% ? Their mortgage payments went up from $1200 to $1400 or $1600 or even up to $1800/mo. In my experience my client’s monthly payments we up an average of about $300/mo per percentage point increased.

The Bankruptcy Minute

I heard from Attorney Lorene Mies who runs the Bankruptcy Minute ads.

Bankruptcy and Tax Refunds

Tax Refunds and Bankruptcy

Soon you’ll have your tax refunds. Many of you have expressed an interest in paying me with your tax refunds once you get them. That’s great. I’m all for it. However, keep in mind who has sued you? Sometimes a remedy that your creditors have is to attach your tax refunds before you even get them. For instance if you owe a tax from a prior year or if you owe a social security overpayment or a student loan on which you have defaulted.

Bankruptcy Estate

In a chapter 7, keep in mind also that a tax refund is part of the bankruptcy estate until you have proven that you have an exemption statute that protects it for you. Things that are exempt are the things that you get to keep. If you cannot protect/exempt it, then you will lose it. Most of the time you probably can protect it and keep it. Anything that you cannot protect or exempt for yourself is part of the bankruptcy estate. The Bankruptcy Trustee’s job is to administer that estate and sell that portion of your property off to pay your creditors. Most of the time, there is nothing for the Bankruptcy Trustee to sell.

If you get it before you file your case and you spend it, then you already got to keep it. However, if you’re going to have any of it left over when you file or if you’re going to receive it after you file, you MUST tell me about it, and it must be listed as an asset in your bankruptcy petition.

Federal Prison

If you don’t tell me about any asset that you own, or have a right to, even if you don’t have possession of it right now, that’s called concealing an asset. Assets also include things you might get, or you might not, such as winning a lawsuit that you’ve filed against your neighbor because his tree busted up your driveway. You might get a few thousand dollars or you might lose and get nothing but a ticked off neighbor.

Fill out the Questionnaire carefully and when you get to the question about tax refunds, don’t just forget about it or pretend it will be forgotten. It won’t. The bankruptcy trustee assigned to your case will remember to ask you if you will get one or if you have recently gotten one.

Penalty of Perjury

You must answer the questions put to you at the hearing under the penalty of perjury and you must be honest. If not, you could be facing up to 5 years in the Federal Prison or up to $500,000 in fines. Usually what happens is they confiscate the object you’ve hidden, or forgotten about accidentally on purpose and then fine you a few thousand and put you away for a couple to a few months. So, there’s no tax refund big enough to make that worth it, and as I said, almost all of the time you can keep it.

Tax Refunds and Chapter 13

You will lose your tax refunds in chapter 13. Maybe you can time the filing of the chapter 13 in order to collect the next one coming but you must in most cases, pledge all of the subsequent tax refunds to your bankruptcy payment plan for the duration of the plan which will be 3 to 5 years. Your Bankruptcy Trustee assigned to your case to use them to pay your creditors.

If you want to total your bankruptcy


From their website:

“PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network.” (Emphasis Added).

I’d call it an Enough-Said moment.

But I still have this to add, at the bottom of their website it says that you can “connect with a local attorney, it’s free.” How can it possibly be free if it’s advertising? It’s not. They charge the attorneys in their network per lead. The attorney pays for the leads even if you file with someone else. That’s a lot of advertising. It’s expensive too.

LoanMart-Car Title Loans | 800loanmart.com


Keep Your Car, if you pay the usurious interest rates on time foreverDo you need some quick money fast? If you’re robbing Peter to pay Paul, don’t bother. You don’t create debt to pay debt. It doesn’t work. Never works. Just ask anyone who was refinancing houses to buy houses in the last 10 years. How did that work out? Well it didn’t.

You see, it’s like this, for some reason people think that bankruptcy is bad. But if you’re willing to go to LoanMart and get a Car Title Loan against a car that’s already paid for, you’re already bankrupt and you just don’t know it yet. It bugs me to no end how many people will spend all their savings, then their CDs, then their IRAs to try to keep a home when the home is upside down by half and if somehow they could figure out how to pay the payments long term, they’ll never have any equity in their lifetimes again. Why do it?

You can file a bankruptcy and keep your IRA, keep your 401k, and probably keep most of your savings!

A friend of mine did this in the early 90s, her home had been worth $500K and was down to 250K. She let it go. A while later, she was able to buy another house again. Almost the same model, she picked a house in the same neighborhood for $270K. It was about 2 years later and prices were going back up.

Short time later she met an old friend, he’d been her next door neighbor to the house that she had short sold. Thankfully he’d been able to “save” his house and still owned it. Yes, he’d weathered through the short recession, however, he still had a mortgage of $500K. My friend’s house now had a mortgage $270K.

Car Title Loans

The best thing about a car title loan if you have to get one, you can bankrupt it later if your circumstances don’t improve. Your interest rates will be usurious by any standards and frankly it would serve them right. But there is a problem with it, you’d have to give them the car or make a deal with them to pay the loan off through a Reaffirmation Agreement. Interest rates, principals and length of contract can all be renegotiated at that time, but only if the lender agrees to it. What if they don’t? You lose your car.

Pre-Bankruptcy Credit Counseling

Before you can file your case, you must submit yourself to credit counseling. It’s called Pre-Bankruptcy Credit Counseling or Pre-Filing Credit Counseling.

How to get Credit Reports?


If you walk in with 3 credit reports that are a mile long each, I’m going to get your credit reports from my service, download them directly into my software and charge you for it. For a married couple for 3 a source report it is $53 and single $33 at this writing.

But don’t worry about that because my attorney’s fees are downright affordable compared to everyone else.

Free Credit Report

A great way to know how many creditors you have is to go to AnnualCreditReport.com to get your free annual credit reports. Make sure that you check mark all three credit reports on the page that asks which ones you want. Last I saw if you tried to check one at a time, it wouldn’t let you go back again unless you cleared your cookies first.

Also FreeCreditReport.com is a good place to go. They charge for a credit rating monitoring service but then allow you to get a free credit report with all three merged reports, once you have that, go back immediately and cancel the service before they charge you. You may have noticed that their link doesn’t work, they recently wrote to me and asked me to delink this post, I guess they didn’t like it that I was telling people to cancel their worthless service.

Bankruptcy Documentation

Supporting Documentation To properly evaluate your case I require the following:
(If you can’t get it all together prior to our initial free consultation, show up anyway with whatever you can find)

0. Spousal Waiver
If you are married and if you are going to file an individual case, then you must both of you sign a Spousal Waiver. Click to download, it should be self evident where to put the names of the spouses.

Which Chapter in Bankruptcy is Right For Me?

Chapter 7 vs Chapter 13

Automatic Stay

The moment that you file your case, whether in chapter 7 or chapter 13, a temporary restraining order is issued by the bankruptcy court prohibiting collections of any type with a few exceptions. Exceptions include things like child and spousal support and certain types of government debts.

Chapter 7

A chapter 7 bankruptcy, also called a straight bankruptcy, and also called a liquidation bankruptcy is the one that most people are thinking of and talking about when they discuss bankruptcy. Over in about 4 months, this is it’s primary advantage, you’re in and you’re out again.

In a chapter 7, you’re allowed to keep only so much property. Whatever you own over and above what you get to keep, the bankruptcy trustee takes away from you, liquidates or sells it, and uses the proceeds to pay your creditors a pro rata or proportional share of the funds based on the percentages of the total debt that’s owing from you to your creditors. Suffice it so say that if you owe $100,000 and the Trustee is able to collect $25,000 from your property, then your creditors will get about 25% of the debts that you owe them.

Most of you will keep everything you own and your creditors will get nothing.

Any portion of the debt left over after the trustee administers your case, whether it’s 95% of the balance or 100% of the balance that’s unpaid, that portion is discharged by the bankruptcy.

So in a small nutshell a Chapter 7 is a bankruptcy where the bankruptcy trustee may take property away from you (if there’s any to take) and when it’s over, your consumer debts are discharged or in other words, you receive a court order which is a permanent injunction prohibiting collections.

Remember that there are exceptions to the discharge. Certain kinds of debts are exempt from the discharge and will remain a personal obligation for you to have to pay once your case is over. Child Support, Spousal Support, Student Loans, Recent Income Taxes, and a number of things which are similar in nature are not discharged. You will still have to pay your mortgage if you want to keep your house, you will have to pay for your car if you want to keep your car as well. For more details (but only if you’re in California) and to discuss specific debts, call me 858 452 4500.

You must qualify for a chapter 7 by showing that your income is sufficiently low or that certain expenses are sufficiently high or both. This test is called the Means Test.

Chapter 13

With Chapter 13 you get to keep everything. If you would have lost it in the chapter 7, you can still keep it in the chapter 13 as long as you pay the bankruptcy trustee for it instead of giving it to him and letting him sell it. A chapter 13 case is a bankruptcy with a payment plan. Payment plans last from 3 to 5 years.

If you file in Riverside, the Trustee is Riverside has produced a Chapter 13 Handbook to help guide you through your case. Read it. It is specifically for the Riverside cases, and much of the information is tailored specifically and applies only to Riverside. If you file in Santa Ana, LA, San Diego or San Francisco, ask if there is a different handbook. There may be by then.

The payment is determined by your income and expenses. If you don’t qualify for a chapter 7, then your payment is determined by what the means test states you have to pay.

There are other reasons you might file a chapter 13 instead of a chapter 7, in a chapter 13, you are able to propose a payment plan that allows you to catch up unpaid payments on your home and thus at the end of the payment plan, you are current on your first mortgage again. If you have a 2nd mortgage and your home’s value is lower than the balance on the first mortgage, then you may qualify to have the 2nd mortgage removed from your home.


$799 Bankruptcy

Sometimes you can find it.

Most of the time however, like what I’ve encountered here in Southern Riverside area of California, usually, it’s a bait and switch. They claim that you’ll get a cheap bankruptcy and when you get there, or when you call, it turns out that it gets you the most minimal bankruptcy ever, and probably you won’t even meet an attorney. When I occasionally charge only $700 plus the filing fee, it’s because the client is a widow or a cancer patient and when I do charge so little, guess what? You won’t meet a paralegal, I still go to the hearing with you, and unless I’m sick or on vacation, I’ll be the attorney at your hearing, and you’ll meet me when you get to the office, and I will be the one who types your bankruptcy.

Before we get started, Disclaimer: Nothing in this article may be mistaken as legal advice. Attorney David Nelson, is licensed only in California, and this article is intended only for readers in California. This article is for entertainment, educational, extra-curricular, and medical purposes only. If you decide to rely on this, heaven help you.

I’ve called similar cheap ads before, and other bankruptcy attorneys I know have called similar ads. Here’s what we’ve found:

Most of the cheap bankruptcy guys don’t go to the hearing with you unless you pay them more. Even then they probably don’t go themselves but hire a pinch hitter attorney to go for them and that guy won’t have read your file, and doesn’t know you or your case. At least in Riverside the pinch hitters are good attorneys who take good notes, but they can’t fight for you on the spot because they have so little knowledge of the case, the file or you. In fact, often you’ll find that the first phone call you’ve made was to a paralegal and he has an attorney who “supervises” him. If that’s the case, run the other direction. In that situation, if you want to meet with an attorney, you can, but only if you pay them more. If your income approaches the median income for your jurisdiction, it will cost you more. If they have to do the whole means test calculation for you at the consultation, it will cost you a lot more. If you have a house, it will cost you more. If you owe any taxes even property taxes, it will cost you more. If you have more than 10 or 15 creditors/accounts/collection agents/attorneys who must be listed in your bankruptcy petition, it will cost you more. If there is a judgment against you, and your bank accounts have been levied, it will cost you more. If your wages are about to be garnished or are being garnished, it will cost you more. If you have a car or a refrigerator that must or might need to be reaffirmed, it will cost you more. If the attorney or his paralegal fart while you’re in the office, that’s a value added perk and it will cost you more.

Most of us who have called this or similar ads have found that by the time the average bankruptcy client’s consultation is over, it will cost the retail price of $2000 or more to go bankrupt, plus the filing fee. Incidentally, the filing fee currently for a chapter 7 bankruptcy is $306 at this writing.

Even worse, many unscrupulous or lazy attorneys (and I haven’t heard or seen that the $799.com guys do this) will try to

upsell a chapter 13 bankruptcy

to you with a payment plan where the attorney makes at least $3500 to $4500 per case. Lovely isn’t it?

Bankruptcy attorneys who don’t do the careful analysis will advise a chapter 13 because your income is “too high.”

You require a careful analysis of your income and expenses in order to know if you really qualify for a chapter 7 or not. There are a lot of frequently overlooked factors or factors that require a lot of documentation. Some attorneys just don’t know what they are, especially if they were doing divorces a year ago and decided to get into the bankruptcy boom. I’ve been doing bankruptcy since 1994. Some attorneys are just too lazy to amass the required documentation in order to prove your case for you. Of course, some just want more money per case.

Will everyone do this? Of course not, will the cheap bankruptcy guys do this to you? I haven’t head that they do and I believe that most won’t based on what I’ve heard and the calls I’ve made, just that by the time you get done, they’re charging you retail for your discounted bankruptcy. Possibly some of them have changed their ways since I and my colleagues telephoned to ask about prices, I don’t know. In fact, I’m writing in the hope that it will spawn a reformation in the practice of the bait and switch statewide.

The firms that will more likely try to get you into a chapter 13 are the big ones. Several names on the door that sort of thing. Trust me, if you go in for a bankruptcy consultation to a Victorian building on the outside of downtown and the lawyer(s) have several support staff and a few new Mercedes in the lot, guess who’s paying for all that? Are they better at bankruptcy than me? Nope. Better looking, yes, and they’ll charge you more for that too. They are better at marketing, their websites cost them mega-bucks per year in upkeep and they pay huge rents and payrolls and their personal expenses are more than many of you make in a month or a quarter.

Don’t get me wrong, if you make a good bit more money than the average bear, then you have a higher than average probability of having to do a chapter 13. That’s what it’s for, if your income is significantly above the median, you might not be able to avoid a 13, but I’ve also seen cases where the income was a good bit over the median which qualified for a chapter 7. Did they qualify because I’m some bankruptcy wizard or a debt vampire who suck the vacuum of your finances away? No. Those clients qualified because once the analysis was done and the documentation gathered to prove the analysis, they did in fact qualify for a chapter 7.

Congress hasn’t left any wiggle room in the Means Test.

Means Test

Either you have passed your means test and you qualify for a chapter 7 or you didn’t. What the right attorney brings to the table is the analysis, not a way to fudge the numbers and make you qualify but the proper analysis based on the right reasons that show that you do qualify when you in fact already do.

Because every case is different, you must get the right consultation. Yes, even at chez moi it will cost you more than the average 7 but it will still be less than a firm with several names on the door. Possibly less than the guys with the cheap bankruptcy advertising.

Discharging Taxes

When discharging taxes, the right attorney can make all the difference. Especially if you call early. See this article. If you owe a lot of taxes, and I’m not talking about property taxes, but the board of equalization taxes, federal income taxes, self employment taxes and the like. And if you do, expect to pay more if you want your attorney to tell you that you have a high probability of discharging them in a bankruptcy.

Because Friends Don’t Let Friends Pay Credit Cards From Savings

Why Bankruptcy? Because Friends Don’t Let Friends Pay Credit Cards From Savings
Legal Notice: You are not my client, this is not legal advice, it’s a bunch of codswallop and hogwash, rely on it at your own peril, nor does reading this article make you my client. If you rely on this information and use it in your case and it goes badly for you, tough noogies.

So you’ve lost your job, broken your leg, gotten a divorce or someone has died.

You find out that on top of the $20K in credit card bills that you knew about, there’s another $30K that you didn’t.

I’ve heard all of this before.

Let this be a lesson to you, if you are letting your spouse do all of the finances, stop, wake up and smell the plastic. Go into the bills and read each one. If English is not your strong suit, bring a friend. Chances are, if only one spouse is ever doing all the accounting then that person may have bad things hiding in that pile of papers that he or she refers to affectionately as the bills.

No, it’s probably not a girlfriend or boyfriend, could be but probably not, but it could be a gambling problem or worse. And it could just be that after 15 years of spending $200 more per month than you earn, the total balances on all credit cards is now $36,000 higher than you thought. ($200 x 12months) x 15 yrs = $36,000. Of course it will be a bit smaller because of monthly payments or it could be a lot higher if some cards were used to pay other cards which usually happens after a few years of living that way.

I once had a client whose spouse had a gambling problem, that spouse had a friend who was a notary, who also had a gambling problem. They were partners in crime. While the innocent spouse was out to sea double entendre intended with the Navy, the stateside spouse and the in-cahoots-notary got together and created a 2nd mortgage and pulled all the equity out of the house and gambled it away while the innocent spouse was gone. Needless to say the innocent spouse also asked me if I do divorces, I don’t.

Face it, if you’re letting your spouse handle all of your finances, then guess what, eventually you’re going to end up alone and living la vida broke-a because you’ve only got a 50-50 chance of not getting divorced, but the other half end in death and either way, one or both of you ends up alone. I cannot begin to tell you how many widows and widowers I’ve met with who had no idea that the life insurance hadn’t been paid, had no idea that the cash value in the life insurance had been withdrawn and spent on girls, guns, boys, gambling, drugs, alcohol, and good times. More often, it’s like I stated in the first place, you’ve been living on $100 to $200 less per month and paying that difference with credit cards for the last 15 years, and I’ve seen that go on for 25 years as well. You’ve been just living a bit above your means, or your income.

So, you’re broke and alone and you realize that you’re not completely destitute, there’s some savings socked away somewhere.

Let’s say you find you’re left with $50K in debts on credit cards and unsecured loans, such as signature loans.

You’ve got $100K in your 401k plan, $20K in cash in the bank, some clothes, some furniture (no antiques or heirlooms), one 12 year old Honda Accord with a big rumple in the fender, you’ve got wedding rings that are 20 years old and you only paid $1000 for them back then (retail), your home is worth $200K and you’ve got a loan on it for $150K. And that’s all you’ve got.

You don’t have a job, you’re alone and you’re 50 years old, and you if you could get a job, you have no currently usable skills. Your only income is your dead spouse’s retirement which pays $1500/mo. What should you do? Please realize I can’t fit every scenario into one blog article. If you have specific questions you’ll have to call.

Most of your friends, Suze Orman and that buckets of money guy will probably tell you to pay off the credit cards with the cash and then tap into the 401k or pull some equity out of the house. Some of the financial pundits will get a little cheeky and say you should offer each credit card 30% or 40% and try to settle them for an average of about 35cents on the dollar. That way you could use the cash, not tap into the 401k or the house and still have a little left over. While it’s not a bad solution, remember that you still only have an income of about $1500/mo and your mortgage probably comes to about between $800/mo to $1200/mo depending on when it was refinanced last and many other factors. Even if your mortgage is low, how do you live on only $700/mo. It can be done but that’s a different article coming soon.

Why pay them even 35% when you could pay them 0%? After paying your bankruptcy attorney approximately $1500 in attorneys fees and the $300 filing fee for the case, you’ve only paid out about 3.5% of the total balances on the cards and loans. In CALIFORNIA you can keep the 401k, you can keep the equity in the house, you can keep the $20K in cash, you can keep the clothes and furniture, you can keep the little bit of jewelry, and yes, you can keep the old beater car. Is 3.5% better than 35%? No brainer.

In other words, you keep everything except the cost of filing the case. If any of the credit cards comes forward and says that that debt was created via fraud, you can say that it wasn’t your fraud, the missing spouse did it. And yes, even if the card is in your name, if it was identity theft, (your spouse stole your identity to create a card in your name), that’s not you committing fraud, it was your spouse. So sue him or her.

Bottom line, you’ve still got your 401k, your cash savings which must guard with your life because you don’t have a job. If you only spend $500/mo of it, it will last you 40 months on top of the $1500/mo in income that you do have in our little example above. You can see that if you can’t find a job in the next 40 months, then at least you had that much breathing room. If you paid out a 3rd of your savings to pay off credit cards then you’d have a year less than 40 months to find the next job. How much of a cushion is enough? With 40 months you could go back to school and finish a degree.

Sure they’ll tell you that employers are looking at your credit scores, and some do, but not if you have no interesting skills other than how to raise a family. I’ve got friends older than me who are working at Home Depot now. Great way to supplement the income but after years of raising a family there’s no other jobs they can do. I’m pretty sure credit was not an issue.

I’ll tell you about identity theft in another article.

For now, just realize that if you can keep all of your savings and file bankruptcy, why would you ever, ever do what the financial pundits tell you and pay off credit cards with savings when you don’t have a job? Anyone telling you to do that must have a freaking hole in their head. DON’T DO IT. Just Say NO. If you are not in California, go to the attorney of your choice and ask what you could keep if you filed a bankruptcy in that state. Also, if you live in Arizona, move to El Centro or the nearest California City closest to you and commute to work if you have a job or whatever you commute to and then file. That way you won’t be an Arizona resident when you file and, while you won’t get to keep $20K in cash like you would if you were from California, it will at least be substantially more than what Arizona will allow you to keep when you file.

How to Discharge Income Taxes in Bankruptcy

Before we get started, Disclaimer: Nothing in this article may be mistaken as legal advice. Attorney David Nelson, is licensed only in California, and this article is intended only for readers in California. This article is for entertainment, educational, extra-curricular, and medical purposes only.

Cash for Keys

If you lose your home to Foreclosure . . .

If you cannot afford to pay for your home, if you cannot eventually get a loan modification, if a Chapter 13 just won’t work for you, then you will lose your home.

Rebuilding Credit After Bankruptcy


If you or anyone you know has ever file bankruptcy than for them to get back on their feet [fast] they MUST know…

How to Rebuild Credit After Bankruptcy Copyright 2011 / All Rights Reserved

See the video article here:

In this article we’re going to cover what I believe to be the best strategy for rebuilding credit after bankruptcy.

If you stick to some basic rules and follow some very basic steps you may be surprised to find that you can have a very healthy credit score within a relatively short amount of time after your bankruptcy. Before we get into the method itself, let’s talk a little about why it works. This “credit after bankruptcy” strategy works because of a special aspect of the credit scoring system known as “scorecards”.

In credit scoring, a “score card” categorizes and scores consumers based on their credit performance compared to others in their same category. It’s kind of like the credit world’s equivalent of “grading on a curve”, but this “grading curve” can hurt you just as much as it can help you.

Both FICO and the newer Vantage score use scorecards, so the general discussion here should apply to both. A scorecard might, for example, look at patterns for consumers who have filed bankruptcy. Statistics might show that if a consumer has late payments within a few months of bankruptcy, hey are highly likely to have even worse credit problems in the future. Statistics might also show that consumers who keep their credit clean after bankruptcy for at least a year or two are much less likely to default on loans.

This means that consumers on the bankruptcy scorecard who have late payments popping up within a year or two of their bankruptcy will likely see their score drop even more and will have an extremely difficult time bringing it up from there. Why? Because it looks like they haven’t learned their lesson, and

Bankruptcy Means Test Basics

Bankruptcy Means Test Basics


Bankruptcy Means Test is the Chapter 7 Qualification Test. However, if you do not qualify for a 7, it is also used to determine the amount of your chapter 13 plan payment. Additionally, it determines the duration of you chapter 13 plan.

If your income is above the median income your chapter 13 payment plan must last for 5 years.

Reaffirmation Agreements


A Reaffirmation Agreement is a new promissory note to keep paying on an old contract for the purchase of goods where the lender can repossess or foreclose the goods.

Bankruptcy Attorney David Nelson


I have been a Bankruptcy Attorney since the very beginning. Having graduated in the top 15% of my class I passed bar the first time and in June of 1994 I opened my law office.

Chapter 13 2nd Mortgage Lien Stripping

Chapter 13 2nd Mortgage Lien Stripping

You may be able to strip your 2nd mortgage or home equity line of credit, Heloc, off of your home in a Chapter 13.

Debt Freedom and Retirement

Debt Freedom is Required for Retirement

If you’re like most of us, you’re planning to retire on your 401k or other similar Retirement plan. And you’re wondering if Walmart and McDonalds will have too many “senior” team members when you get there.

Chapter 7 and Your 2nd Mortgage

Updated on June 13th, 2018.

While it is true that you may be able to strip these off of your home in a Chapter 13, in a Chapter 7, you may still be able to effectively ignore it (for a while) and keep your home.