Many people are concerned that filing for personal bankruptcy means losing everything they own. After all, in a chapter 7 bankruptcy, everything you own and owe is legally transferred to Read more »
Bankruptcy Procedure
Considering Bankruptcy? Tip 1 – Speak To Someone Sooner Rather Than Later
Readers of my Newsletter already know that, since Covid began, I have seen a steep decline in bankruptcy clients . Seems counterintuitive, no? After all, many prominent retailers and large corporations have already filed Chapter Read more »
How To Defend Against a Bankruptcy Preference
What is a Preference in Bankruptcy? In bankruptcy, a debtor gives up legal control of most assets to a Bankruptcy Trustee, who can use those assets to pay the debtor’s Read more »
Homestead Exemption Increased; Now Easier to File Chapter 7 Personal Bankruptcy
California just became a much more debtor-friendly state. Specifically, most people filing chapter 7 personal bankruptcy no longer risk losing a house in which they have substantial equity. On September 18th, Governor Read more »
Why Are 2020 Bankruptcies Down, Not Up?
Bankruptcy filings have declined nationwide this year – a counterintuitive trend given the economic gut punch from the Covid-19 pandemic. In the Central District of California, which includes much of Los Angeles, Ventura and Santa Barbara counties, there have been only 18,381 bankruptcy filings so far this year. Read more »
Small Business Chapter 11 Bankruptcies Faster and More Affordable!
Sadly, the economic slowdown caused by Covid-19 is making many small business owners consider bankruptcy. Indeed, the Small Business Association estimates 40% of the US’s 30 million small businesses will fold within a year. Read more »
What Happens to Liens in Bankruptcy?
A lien is a creditor’s legal right to a debtor’s specific property to satisfy a debt. The most common lien is a home mortgage. The homeowner borrows money from a bank to buy a house and signs a deed of trust which allows the bank to foreclose if the homeowner stops paying the mortgage. Read more »
Reaffirming Debt in Bankruptcy
In bankruptcy, all of a debtor’s debts and assets are brought into the case. The debtor does not choose which assets are used to pay debts, or which creditors get stiffed or get paid. Read more »
Bankruptcy Basics: How Does Bankruptcy Work?
The word “bankruptcy” comes from the Italian words for broken bench — banca rotta. In the middle ages, a failing craftsman would bring his work bench to an authority in the town square, who would break it and in so doing, relieve the craftsman of his debts. Bankruptcy is more modern-looking today. Read more »
Do I Qualify for Chapter 7 Bankruptcy? The Means Test Knows
Sometimes you hear that someone makes too much money to file bankruptcy. Anyone can file bankruptcy, but courts will dismiss a bankruptcy case for abuse or bad faith – when you have too many assets to legitimately use bankruptcy to get rid of debt. Read more »