Los Angeles Bankruptcy Attorney » Bankruptcy Help

Discharge of debt

admin — Tue, 14 Dec 2010 05:15:41 +0000

One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for:

* most taxes;
* child support;
* alimony;
* most student loans;
* court fines and criminal restitution; and
* personal injury caused by driving drunk or under the influence of drugs.

The discharge only applies to debts that arose before the date you filed. Also, if the judge finds that you received money or property by fraud, that debt may not be discharged.

You can only receive a chapter 7 discharge once every eight years. Other rules may apply if you previously received a discharge in a chapter 13 case. No one can make you pay a debt that has been discharged, but you can voluntarily pay any debt you wish to pay. You do not have to sign a reaffirmation agreement or any other kind of document to do this so be careful.

Bankruptcy Terminology

admin — Tue, 13 Jul 2010 17:36:11 +0000

In Bankruptcy, a “case” refers to the bankruptcy action commenced by filing a bankruptcy petition, and “proceeding” refers to a specific matter, such as an adversary proceeding, that arises within the bankruptcy case.

The “debtor” is the party that either filed a voluntary bankruptcy petition or that had an involuntary petition filed against it.

The trustee, if any, must be distinguished from the US Trustee, who is a presence in every bankruptcy case. Generally, several United State Trustees work in each district office, and each bankruptcy case is assigned to an individual trustee. The United States Trustee has specific duties in bankruptcy cases under his or her watch – essentially these duties amount to an oversight function.

Bankruptcy Discharge

admin — Thu, 18 Feb 2010 04:38:04 +0000

I know many of you want to know – what does discharge mean to me? In the world of bankruptcy getting a discharge means that the court is discharging your debts. That means that your creditors can no longer go after you for your debts. At least those that were discharged.

Means Test

admin — Sun, 03 Jan 2010 21:52:49 +0000

Chapter 7 is the bankruptcy relief most often sought. On filing, all assets pass to an estate administered by a trustee, who liquidates all nonexempt assets of value. Creditors can file claims against the assets and the claims are paid in accordance with the Code.

If you are an individual, you can get a discharge of all debts, other than debts declared nondischargeable under 11 USC Section 523, unless a creditor can establish a basis under 11 USC Section 727 to deny your discharge.

Your eligibility for Chapter 7 relief is governed primarily by the “means test” and the credit counseling and other requirements of 11 USC Section 109. The credit education provision require that an individual receive a briefing on available credit counseling opportunities and assistance in performing a budget analysis from an approved, non-profit budget and credit counseling agency during the 180 days before filing for bankruptcy.

You must also complete a instructional personal financial management course before discharge is granted.

The means test is applicable to people with primarily consumer debt. The test is set forth in Bankruptcy Code Section 707(b). Under it, a person may not proceed under Chapter 7 if an objective formula-based analsis of the person’s income and expenses indicates that they will be able to repay some or all of what they owe to unsecured creditors.

If you have desires to retain nonexempt assets then you have to consider Chapter 13.

When to file bankruptcy

admin — Sun, 03 Jan 2010 01:28:30 +0000

Timing is frequently an important consideration with respect to the filing of a bankruptcy case. When you have made a transfer to or for the benefit of an insider, you may wish to wait until the one year preference period or the two year statute of limitation has expired.

When you owe state or federal income taxes, you may wish to wait until the three year nondischargeability period has passed.

If you are under considerable pressure from creditors, however, you may not be able to wait. Nevertheless, you should know about the following:

- An inheritance likely to be received witin the 180 day period following the filing of the petition will become property of the estate. In such circumstances, you may be able to take steps to disclaim the inheritance or suggest to the benefactor that the bequest be left to another party, such as your kids.

Automatic Stay

admin — Thu, 17 Dec 2009 18:17:31 +0000

Once you file your application for bankruptcy, an automatic stay is place on your case. What this means is that none of your creditors are able to proceed with any collection attempts against you. This also ensures that all your creditors are place in the same equal position so that no one can do anything to the determent of the others.

If any creditors proceeds with any action despite the stay, their actions are automatically void by the law. You do not need to take any action. They can also face possible legal consequences if the creditor takes action knowing you have filed you application.

For example, say you are rental space in the local mall for your business. You file for bankruptcy and your landlord proves forward to lock you out. The landlord can be found liable for your lost of business during the period that you were locked out of your business – preventing you from operating your business.

Big Step

admin — Wed, 25 Nov 2009 04:50:07 +0000

Filing for bankruptcy is a big step. One that will follow up around for seven to ten years, depending on the route that you take.

If you file for Chapter 7 , most of your unsecured debts are written off within 90 days of filing. The bankruptcy will stay on your credit report for 10 years. While debts will be forgiven, you’ll have to sell some of your property, with the proceeds distributed to your creditors. In most cases, this means you’ll lose your home (if you own it), as well as any expensive items such as art and jewelry, and pricey consumer electronics.

Chapter 13, on the other hand, is a repayment plan: You set up a three- or five-year schedule with your creditors. Chapter 13 bankruptcy remains on your credit report for seven years. With this type of bankruptcy, you get to keep all of your property, including your home.

You might be a candidate for Chapter 7 if you have no assets to lose, like a house or a car, and if after you pay for your basic monthly expenses you have no money left to pay off debts. Chapter 7 essentially wipes the slate clean, but you’d most likely lose any valuable possessions.

Filing For Bankruptcy

admin — Thu, 12 Nov 2009 17:52:57 +0000

BANKRUPTCY

Due to today’s economic climate, the threat of having to file for bankruptcy has become an unkind reality for many people who never thought that they would find themselves in that unenviable position. In 2005 laws were passed in order to dissuade bankruptcy filings, however, after a brief decline those same filings are now at or beyond pre-2005 levels. If you now find yourself to be among those needing assistance with their financial situation please call the Law Offices of Sakaida & Bui.

The Law Offices of Sakaida & Bui can help you through an uneasy process. Afterall, our sole mission is to provide assistance in a difficult time. Our knowledgeable attorneys can advise you not only if filing for bankruptcy is right for you, but what type of would be most effective in your particular case. We will walk you through the process step by step and ensure that you have all the information and support that you need to allow you to get the fresh start that you deserve. Call our office today and take the first step towards a new financial future.