In my Bankruptcy Alphabet, F is for First meeting of creditors. Lots of rumors exist about the that meeting; it produces unwarranted anxiety that is avoidable if you understand what’s up. Let’s check it out. The first meeting of creditors is often the only time a debtor has to appear in public in connection with […]
Discharged Debts Don’t Bar Chapter 20 Lien Strip
Underwater liens that linger after an earlier bankruptcy don’t count in Chapter 13. At least, they don’t count against the unsecured debt limit that restricts entry into Chapter 13, says the 9th Circuit Bankruptcy Appellate Panel in Free. Great news for homeowners for whom Chapter 13 was not initially available because they exceeded the debt limits. […]
Means Test & Taxes: Look Backward Or Forward
One of the mysteries of the universe (well, sorta) was answered for me by my least favorite authority. The United States Trustee wanted to adjust the taxes incurred on the bankruptcy means test form to be taxes as they were projected to be in the future. Fine by me. My position has always been that current […]
Bankruptcy Alphabet: S is for Strip
S is for Strip in my Bankruptcy Alphabet. Bankruptcy lawyers delight in stripping liens from people’s homes. In any chapter of bankruptcy, a debtor can void judgment liens that have attached to assets that would otherwise be exempt. In Chapter 13, tax liens and other statutory liens can be stripped off the asset if there […]
Keep Your Tax Refund Despite Filing Bankruptcy
Usually, we’re touting pre bankruptcy planning: know what’s exempt, what debts will survive bankruptcy, and arrange your affairs to lose as little as possible to a bankruptcy trustee. There’s one bit of tax and bankruptcy planning that you can do after you file bankruptcy. That’s despite the fact that bankruptcy is generally a snapshot of […]
Tugging On Superman’s Cape
When a Chapter 13 trustee complains that the means test is not easy to administer when only one spouse files, should I be sympathetic? After all, Chapter 13 confirmation is often a negotiation on disputed issues between the trustee and debtor’s counsel. Here’s what I said recently at ConsiderChapter13.org on that issue. Come on, Madame […]
Terminate Cell Phone Penalties in Bankruptcy
I’m accustomed to advising those on the verge of filing bankruptcy about big ticket debts like mortgages, student loans, and back taxes. I was surprised when a client, resigned to letting her house go to foreclosure after the bankruptcy, was absolutely delighted to know that she could free herself from her unhappy relationship with Verizon Wireless […]
The Most Important Bankruptcy Decision Of 2013
A bankruptcy case nominally about travel trailers, ATV’s, and a car for a an adult child gets my vote as the most important bankruptcy decision of 2013 for Californians. When the 9th Circuit decided Welsh, it told us, and Chapter 13 trustees, that you take your Chapter 13 debtors as you find them. If you […]
The Living Trust: Can You Trust It To Protect You?
Today’s post comes from Los Angeles area bankruptcy lawyer Mark Markus. The Revocable Living Trust. Everyone’s got one, but few can tell you what it does for them. And those who can tell you, often have it wrong. People create these trusts, stick their home, bank accounts, and other assets in them and move on. […]
Bankruptcy Exemption Bill Changes More Than Dollar Amounts
An odd quirk in California’s bankruptcy exemptions was eliminated when the exclusion for pain and suffering damages was deleted by the legislature. Before January, 2013, someone filing bankruptcy could exempt money recovered for a personal injury up to $17,425. But no part of any recovery for pain and suffering associated with that injury was exempt. […]
