Chapter 7 Bankruptcy
Often referred to as “straight bankruptcy,” Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a Chapter 7 case is filed, all of the debtor’s property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered “exempt” is retained by the debtor; conversely, property that is “nonexempt” is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. It is important to note that as a practical matter, most people are able to shed their unsecured debts through Chapter 7 with out losing any property. A typical Chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the bankruptcy court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy.
What is a Fraudulent Transfer in Bankruptcy?
Last updated Jan. 30, 2018. A fraudulent transfer can basically be defined as transferring property out of your name to delay or defraud a creditor. If you “sell” a home worth $1 million to your Uncle Joe for just $1 dollar because a creditor is breathing down your neck, you’ve likely triggered state and federal…Read more
Posted by: Walter Metzen
Bankruptcy Attorneys Need To Know
Tell Your Bankruptcy Attorney Everything! Have you ever used the expression ‘on a need to know basis’? Well as a bankruptcy attorney, I am on a need to know…………everything basis. Clients come to my office for help with financial problems. They are understandably very open about their debts and how they were incurred. What debtors…Read more
Converting From Chapter 7 to Chapter 13 Bankruptcy
Converting to Chapter 13 Bankruptcy It is possible to switch from Chapter 7 to Chapter 13 bankruptcy after you’ve already filed? Yes, assuming you’re acting in good faith. For example, converting your case might make sense if you have fallen behind on mortgage payments, and risk losing your home to foreclosure. Chapter 7 bankruptcy is…Read more
Are there limits to how much or how little debt a debtor can owe in bankruptcy? Sometimes.
Last updated March 30, 2018. If you’re thinking of filing for bankruptcy, you may be wondering: “Is this even possible? Do I have too much debt?” Remember, for the general consumer case, there are two choices for bankruptcy: a Chapter 7 “straight” bankruptcy or a Chapter 13 “reorganization” payment plan. For Chapter 7, there is no limit to the…Read more
Posted by: Rob Cohen
Income Taxes Cannot be Included in Bankruptcy, Right?
Including Income Taxes in Bankruptcy Wrong, income taxes must be included in bankruptcy regardless of whether they’re capable of being eliminated. Because all debts and assets must be disclosed when you file for bankruptcy, back taxes are a debt owing and are automatically included upon the filing of the bankruptcy petition. They are “included” when…Read more
Posted by: Rob Cohen
What Documents Do I Need to Bring When I First Meet with My Bankruptcy Attorney?
Last updated Feb. 28, 2018. Filing for bankruptcy isn’t always easy. One of the biggest burdens under the “new” bankruptcy law that was forced upon debtors and their attorneys in 2005 was the requirement to produce volumes and volumes of documents. In addition to the formal schedules and statement of affairs, you’ll need to get together…Read more