How To Prepare for the Questions at a Chapter 7 Bankruptcy Meeting of Creditors

Bankruptcy, Bankruptcy Procedure
How To Prepare for the Questions at a Chapter 7 Bankruptcy Meeting of Creditors

Many of my clients want to know how to prepare for the Chapter 7 Bankruptcy Trustee’s likely questions during their 341 Meeting of Creditors. After all, this is the occasion on which the Trustee assigned to evaluate their chapter 7 bankruptcy can ask anything about the debtor’s income, debts, assets, expenses, and recent financial transactions. The Trustee can also demand back-up bank statements and other documentation. The sheer scope of possible questions can be intimidating, particularly given that the 341 Hearing is also a formal, sworn court appearance. Read more »
May 29, 2026

Paying For A Chapter 7 Bankruptcy

Bankruptcy, Bankruptcy Procedure
Paying For A Chapter 7 Bankruptcy

I almost always charge flat fees for chapter 7 bankruptcies, rather than charging by the hour. The fee covers all meetings, phone calls and strategizing with the client on when to file and how to minimize the chance of the Bankruptcy Trustee taking any assets, preparing the bankruptcy Petition that is filed with the Bankruptcy Court, the Court filing fee, coaching for and appearance at the 341 Meeting of Creditors, and all associated and follow up paperwork through the discharge of the client’s debts. My office also fields calls from creditors (usually credit cards), while we are waiting or preparing to file the bankruptcy. Read more »
April 8, 2026

How Public Is the Information in a Bankruptcy?

Bankruptcy, Bankruptcy Aftermath, Bankruptcy Procedure
How Public Is the Information in a Bankruptcy?

Many clients worry about how public the information in a bankruptcy will be: who gets or can see the information in their personal chapter 7 bankruptcy? After all, when a person files bankruptcy, they are filing a 50-plus-page Petition that lays bare *all* of their income, assets, debts and financial transactions for the past 1-3 years. Since all bankruptcies are legal filings with the US Bankruptcy Court, they are public documents and, by definition, accessible to anyone. In reality, however, very few people have their bankruptcy found or seen by anyone other than the creditors listed in their bankruptcy Petition. Read more »
February 17, 2027

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.

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

What Happens to California Homes with IRS Liens in Bankruptcy?

Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning, Tax Liens
What Happens to California Homes with IRS Liens in Bankruptcy?

Many debtors in California file chapter 7 bankruptcy with a home that has an IRS tax lien on it. What happens in these cases? If the IRS has a federal tax lien on real property in California prior to a bankruptcy being filed, then that lien will survive bankruptcy. In other words, debtors cannot use bankruptcy to escape an existing federal tax lien on a California property, despite the fact that California bankruptcy law allows chapter 7 filers to take up to $678,000 in equity in a primary residence through bankruptcy. Read more »
June 14, 2023

How Long Does A Chapter 7 Bankruptcy Take in Thousand Oaks?

Asset Protection, Bankruptcy, Bankruptcy Procedure, Pre-Bankruptcy Planning
How Long Does A Chapter 7 Bankruptcy Take in Thousand Oaks?

My clients often ask: how long does a Chapter 7 bankruptcy take? The short answer: it depends. It depends on how quickly the client organizes their information and documents; it depends on whether it makes sense to postpone filing to protect some assets that would be otherwise taken; and it depends on the Bankruptcy Trustee. I rarely have a bankruptcy take less than 4 months or longer than 8 months. The average is 5-6 months. Read more »
April 5, 2023