Los Angeles Bankruptcy Attorney » Chapter 13

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.

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.

Chapter 13 vs Chapter 7

admin — Thu, 22 Oct 2009 21:42:48 +0000

You should consider a Chapter 13 plan if you can work out a way to pay off part of your debts over a period of time and still afford the reasonable costs of living.

The law says you can use a Chapter 13 plan if you have a steady income. This means you work for wages, own a small business or receive pension, social security or other benefits. You also must owe less than approximately $750,000 in secured debts, such as a mortgage, and less than approximately $250,000 in other debts.

If you qualify for Chapter 13, you and your lawyer must work out a plan for the court to approve. The plan must show how you intend to pay all or part of your debts. Certain debts must be paid in full. These include secured debts, federal or state income taxes that you have incurred in the past three years, and the court, trustee and attorney fees involved in setting up and carrying out the plan.