Why are bankruptcies increasing? The trend is clear both nationwide and in California (the two track each other closely): after having declined every year since 2010, the high-water mark of Great Recession bankruptcy filings, bankruptcies are going up again. Read more »
October 6, 2023
Most of my clients are surprised when I tell them their credit score may go up when they file bankruptcy. In fact, one of the Top Three Fears of Bankruptcy I hear from clients is the negative impact it’ll have on their credit scores. This is the case especially for renters since so many property management firms and landlords check a potential tenant’s credit score before renting. Read more »
July 28, 2023
As many of you may know, I hold a Certificate of Specialization in Bankruptcy Law and in a Certificate of Specialization in Tax Law from the State Bar of California. You probably also don’t see many California attorneys advertising this. That’s because fewer than five percent of lawyers in California have taken the exam and continuing legal education courses necessary to obtain this certificate. Read more »
July 7, 2023
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
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
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>>
February 21, 2023
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>>
January 27, 2023
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>>
November 11, 2022
For many people, going through bankruptcy turns out to be the one of the best things they’ve ever done. So much so, it makes them blissful to recount why…. Read more>>
September 9, 2022
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>>
August 10, 2022
