eviction ban salinas bankruptcy

The Eviction Ban Will End - What Happens Next?

If you’re renting an apartment or a house, you may have benefited from the eviction ban issued by the Centers for Disease Control and/or the State of California.  But remember, the eviction ban did not require landlords to forgive your past due rent; you still owe the back rent.

eviction ban salinas bankruptcy

The Eviction Ban Will End

As of now, the eviction ban in California will expire at the end of September.  So what happens when you receive a demand from your landlord for the unpaid rent?  The good news is that you may qualify for the CA COVID-19 Rent Relief Program.  The Program helps income-eligible households with rent and utilities, both for past due (dating back to April 1, 2020) and future payments.  Both tenants and landlords may apply so if your landlord is demanding past due rent, you should ask if they applied for the Program.  If not, you should do so as soon as possible.  You will need to provide either a copy of your 2020 tax return, a 2020 W2 (or 1099G if you were unemployed), or current pay stubs.  If you are also seeking assistance with unpaid utility bills, you will need to provide copies of invoices issued after April 1, 2020.

Can Unpaid Rent Be Included In A Bankruptcy?

If you don’t qualify for relief, bankruptcy may be an option to consider, especially if you have other past-due bills.  Bankruptcy will allow you to discharge unpaid rent along with other debts like credit cards and medical bills.  But keep in mind, if you choose to discharge the unpaid rent obligation, your landlord will likely seek to evict you once the bankruptcy has been completed.

Schedule A Free Consultation

At Guenther Miller Law Group, we have been helping people resolve their financial issues for over 35 years.  We have helped thousands of people.  Let us help you.  Please call us today at 831/783-3440 to schedule a free consultation to discuss your bankruptcy options.

It's time for a fresh start!

auto inflation bankruptcy

How Will Used Auto Prices Affect Bankruptcy?

auto inflation bankruptcyAccording to research firm J.D. Power, the average price of a preowned vehicle in the U.S. has exceeded $25,000 for the first time ever.

A Global Computer Chip Shortage

The climb began last year and experts do not see the trend ending any time soon. A global computer chip shortage has strained new-car inventories, leading more to shop the pre-owned market — leading to shrinking supplies and more demand.

At the same time, the average price for a new model climbed to $37,572 in April, up about 7 percent from a year earlier.

How does all this affect someone proceeding through bankruptcy?

Well, what normally is a depreciable asset has been appreciating, and current consumers are finding they have more equity in their vehicles.  But what happens if you cannot afford to make your payments on that appreciating asset?  Bankruptcy may be an option.

There are two main types of bankruptcy: Chapter 7, which liquidates some of your assets, and Chapter 13, which focuses on repaying debts. What happens to your car in bankruptcy depends both on the type of bankruptcy you file and how much equity you have in your vehicle.

Chapter 7 Bankruptcy

Under Chapter 7 bankruptcy, you can keep the car as long as you continue making the regular monthly payments to the lender.  In some cases, you can redeem the car, i.e., pay the lender what the car is worth.  (This only works if the value of the car is much less than the loan balance.) You can also try asking the lender to enter into a reaffirmation agreement and to include the missed payments in the new payment arrangement. However, your lender is under no obligation to modify your payment when you're behind.

Chapter 13 Bankruptcy

For most people who are behind on their car payments, Chapter 13 is the better option. In Chapter 13, you can rewrite the car loan to lower the interest rate and possibly lower the payments.

In some cases, you can reduce the amount you have to repay based on the current value of your car.  That's where the rising values for used cars can hurt you.  For example, if your car was worth $10,000 and you owed $15,000, you could file a Chapter 13 and offer to pay back $10,000 (the value of the car).  But today, that same car might be worth closer to $14,000.  If that's the case, you could still "save" $1,000 by offering to pay the loan through Chapter 13.  But as they say in the fine print, "your savings may vary."

To make sure, your best bet, if you are behind on your car payments, is to call us before your car is repossessed!

Find out where you stand and receive a detailed bankruptcy plan during these tumultuous times. Call Guenther Miller Law Group at 831-783-3440.