You decided to declare personal bankruptcy. You’ve given the information about your debts, assets and finances to your bankruptcy attorney. S/he just filed your petition with the Bankruptcy Court. Now what? What happens after a Chapter 7 Bankruptcy is filed? Read more>>
When it’s time for bankruptcy planning, my clients in LA, Ventura and Santa Barbara counties often go “Huh?” It’s not obvious that filing bankruptcy should involve timing and strategy. But a good bankruptcy does. Why? To minimize assets the Bankruptcy Trustee may take. Here’s why pre-bankruptcy filing planning matters. Read more>>
For individuals (rather than businesses), there are two types of bankruptcy. Chapter 7 bankruptcy allows debtors to wipe out most existing debt, but there are strict income thresholds to qualify. Chapter 13 bankruptcy is a debt repayment agreement for higher-income people, that may or may not result in some of their debt being discharged at the end of the five year repayment plan. This blog overviews the basics of Chapter 7 personal bankruptcy. Read more>>
California increased the home equity people going through bankruptcy could keep in 2020: from $175,000 to $600,000, specifically so debtors wouldn’t lose their house in bankruptcy. It mostly works. Except with houses that have IRS tax liens on them.Read more>>
Debtor’s often have Notice of Federal Tax Lien outstanding at the time they file bankruptcy. How are these handled? Broadly, a properly-noticed lien survives bankruptcy. It continues to attach to any property Read more »
I don’t take credit cards. I don’t think it’s ethical, and here’s why Read more »
Tax debt is dischargeable in bankruptcy. However, unlike many other nondischargeable debts (fraud, malicious tort, etc.), tax debt may actually remain in force with no further word from the court. Huh? The IRS or the FTB could come back five years after the discharge and start collecting on taxes Read more »
In chapter 7 bankruptcy, everything you own and owe is briefly transferred to a bankruptcy Trustee, who can then use your assets to pay your debts. If you have more debts than assets, then those debts are “discharged” or wiped out (there are exceptions for some debts… Read more »
Since the fall, I have seen a big uptick in desperate people calling me for tax or bankruptcy help. What kind of desperation? These people have been either on the IRS’s radar, or been having debt problems, for many years and then the crisis hits: the IRS puts a lien on a house, or a creditor gets a default judgment and the sheriff Read more »
It’s possible to discharge (have tax debt wiped out) most federal taxes in bankruptcy. There are exceptions, however. Many of the times when taxes aren’t dischargeable in bankruptcy are very Read more »
