Yep, you read it right. It is possible to have too much debt to file bankruptcy. Well, chapter 13 bankruptcy. While there is no limit on the amount of debt you can have in Chapter 7 bankruptcy, there are debt limits in Chapter 13 bankruptcy. 11 U.S.C. 109(e) provides that “[o]nly an individual with regular [...]
In the Central District of California where I practice the chapter 13 bankruptcy trustees commonly require the debtor to turnover any tax refunds received during the plan period, usually for the first 3-years. I recently had a case where the debtor’s only debts were mortgage arrears and student loans. Based on her disposable monthly income [...]
It I had a nickel for every time I heard someone say this. That’s right, I’d be a millionaire. Let’s break it down. Firstly, when someone with debt like a credit card debt files bankruptcy, the debt isn’t “bankrupt”, the person filing bankruptcy is! Now that we’re speaking the same language, the Bankruptcy Code is [...]
Lenders often require that someone other than the borrow sign a guarantee as a condition of making a loan. The person who is primarily obligated on the loan is called the primary obligor; the person signing the guarantee is called the guarantor. Loan guarantees are common in the context of business financing where the loan [...]
Filing bankruptcy is not something most people want to do. However, as with many things, making the decision to file bankruptcy is often the most difficult part. So how do you decide whether filing bankruptcy is the right choice for you? Here are the top three things you should do before deciding to file bankruptcy. [...]
In life they say, nothing is forever. And sometimes those moments of significant change in ones life – a job loss, an accident, a baby – occur during bankruptcy. Chapter 13 bankruptcy is a repayment plan requiring payment of certain debts based on a debtor’s “disposable monthly income”. But what happens if your financial situation [...]
With the decline in the residential housing market and property values often being much less than the amounts owed on the mortgages they secure, many people begun taking a closer look at the powerful tools available in Chapter 13 bankruptcy to save their homes from foreclosure. What many people don’t know, however, is that there [...]
It’s official! The median income has actually gone up here in California. As of May 1, 2012, the median income for a one-person household is $49,188.00, up from $48,814.00. For a comprehensive table reflecting median income figures for all 50 states as of May 1, 2012 visit the U.S. Department of Justice website by clicking [...]
One of the most powerful features of Chapter 13 Bankruptcy is lien stripping. A “lien” includes any charge against or interest in property to secure payment of a debt or performance of an obligation. This articles focuses on the stripping of mortgage liens in Chapter 13 Bankruptcy. Many people who file Chapter 13 Bankruptcy do [...]
If you filed bankruptcy and received a discharge within the last 8 years, you may not be eligible for another discharge. Eligibility to receive a subsequent discharge depends on the type of case perviously filed, the current case and the number of years that have lapsed between the filings. If a debtor has received a [...]
