Alternatives to Business Bankruptcy

Bankruptcy
Alternatives to Business Bankruptcy

I rarely recommend taking a failing business through bankruptcy. There’s usually a solution that costs less and gives the business owner more control over the winding-down of operations than bankruptcy. I most often propose a combination of (1) closing the failing business and walking away, (2) personal bankruptcy for business owners with personal guarantees on business debt, and (3) creating a new corporation for business operations the owner plans to continue pursuing. Read more »
July 11, 2025

Car Lenders and Customers Who File Bankruptcy

Bankruptcy
Car Lenders and Customers Who File Bankruptcy

What happens to cars in bankruptcy? Or cars with notes? After all, almost everyone filing bankruptcy has a car. And cars are usually one of the larger assets a debtor owns. The answer depends on what a car is worth, whether it’s been paid off, and whether the car lender requires a Reaffirmation Agreement. Read more »
November 20, 2024

A Brief History of Bankruptcy in America

Bankruptcy, Bankruptcy Procedure, Did You Know?, Lawyering, Trustee
A Brief History of Bankruptcy in America

My clients often ask me in fits of frustration: how did bankruptcy get to be like this? And I then have the chance to tell them about the storied history of bankruptcy! Usually, they ask this question out of rage at the sheer number of documents they’re asked to produce, but I take it as an opportunity to share the joys of tax law (that is not sarcasm, I love what I do).
But I figured we can all benefit from learning something about the history of bankruptcy. So, I wanted to share with you all some of the greatest developments. What follows is a brief history laid out by the major laws that we’ve created surrounding bankruptcy.

My Time at Faucher Law by Paris

Bankruptcy, Bankruptcy Aftermath, Business, Did You Know?, John's Favorites & Recommendations, Lawyering, Life Lessons
My Time at Faucher Law by Paris

Before I started at Faucher Law, I was finishing up my MSA (master of science in accounting) at San Diego State University. When I used to tell people about my accounting background, they asked if I liked tax, and my answer was always NO! Now here I am, half a year later, switching my answer: I kind of love tax! Listed below are the most surprising things I have learned at my time at Faucher Law and how they have changed my perspective on tax and bankruptcy. Read more »
February 12, 2024

Should I Cash In Retirement Accounts to Pay off IRS or Credit Card Debt? 

Bankruptcy, Did You Know?, Pre-Bankruptcy Planning
Should I Cash In Retirement Accounts to Pay off IRS or Credit Card Debt? 

In a word: NO!!! Please: NO! You should never sacrifice your financial security in retirement to pay current debt. Most importantly, bankruptcy allows you to erase credit card and (most) tax debt and keep your retirement accounts. So why would anyone cash in retirement accounts they will need in the future to pay off today’s debts, if today’s debts can be discharged in bankruptcy? Because most people don’t know better.  Read more »
November 14, 2023

California Bankruptcy Trustees’ Document Portals Ranked

Bankruptcy
California Bankruptcy Trustees’ Document Portals Ranked

California Bankruptcy Trustees document portals should be ranked. And I’m doing so here, in the first annual Faucher Law ranking of bankruptcy document portals! The Bankruptcy Trustee overseeing a chapter 7 bankruptcy always requires several kinds of documents substantiating the bankruptcy petition to be submitted. This is done via web portals. But not all portals were created equal: some are easy to use and some are downright terrible. Thus, the “need” for a portal assessment. Read more »
October 27, 2023

Are You A Consumer or A Non-Consumer Debtor?

Abuse, Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning
Are You A Consumer or A Non-Consumer Debtor?

When filing a Chapter 7 bankruptcy in California, it’s important to know if you’re a consumer or a non-consumer debtor. If you’re a consumer debtor, then you need to meet the Means Test, an income threshold you cannot go above and still qualify for a chapter 7. If you’re a non-consumer debtor, then you do not need to meet the Means Test; how much you earn may, but won’t necessarily, disqualify you from filing for Chapter 7. So what? Most everyone would prefer a chapter 7 to be free and clear of their debts without going through years of repayment first. Read more »
October 27, 2023