California Bankruptcy Legal Questions

Eligibility to file bankruptcy varies depending on which Chapter you are filing and many other factors.   Income is certainly one factor.  In order to be eligible for a Chapter 7 case you must "pass" the means test and also the current income/expense test.   As far as your assets, you must include all your assets and all your debts in any bankruptcy case.  Whether those assets would be at risk depends again on which Chapter you are filing, how much equity is in them, what exemptions you have under applicable law, and other factors.   The only way to determine your options, eligibility, risks and benefits is to have a consultation with an experienced bankruptcy attorney in your state.  Most bankruptcy attorneys offer free initial consultations as do I.... Read More

As long as the accident was not caused by you being intoxicated while driving a motor vehicle, the debt should be dischargeable in bankruptcy. Whether bankruptcy is your best option or not can only be determined after having a comprehensive consultation with a bankruptcy attorney. You should take advantage of free initial consultations offered by most attorneys.... Read More

I'm not clear on how you add something that you already listed.  Since it is already there, you do not need to add it. Even if you had not listed it, you would not need to "add" it.  See my article on this topic here:  https://www.bklaw.com/bankruptcy-blog/2018/07/forget-to-list-a-debt-in-my-bankruptcy-case/... Read More

If the house is your principal residence, there is no way to force the lender to accept anything other than the current contract terms.  Even if it is not your principal residence, the lender has the right to do what is known as "an 1111(b) election" to require the full amount of the loan to be paid, although you can usually stretch it out over a longer term and reduce the monthly payments somewhat. Leasing just before filing bankruptcy might work to change the character of the property from  principal residence to rental.  But that is going to ultimately be up to the Judge in your case.   Chapter 11 is very complex and involved, but the bottom line is that it is all about negotiations with the creditors.  If you can get your creditors to agree to whatever you are proposing, then you can usually confirm a Plan of Reorganization.   Be sure you hire an experienced bankruptcy attorney if you proceed.... Read More

Your facts are not very clear, but if you are a creditor secured by the vehicle and the debtor is behind on payments, you must get permission from the bankruptcy court to repossess it under applicable nonbankruptcy law.  You need to file a Motion For Relief From Automatic Stay to do so.  ... Read More

That depends on which Chapter of bankruptcy you filed, which you have not disclosed here. If you filed a Chapter 7 case, it should not matter at all. However, if you are in an active Chapter 13 or Chapter 11 case, there can be big repercussions depending on your spouse's income and expenses.  Primarily what can happen is that you will be responsible for any increase in your household disposable income from the date you got married forward, so you may end up with a large amount you need to pay at the end of your case in order to obtain your discharge. You should discuss this with your bankruptcy attorney immediately as they are in the best position to advise you on how to proceed, after reviewing all the relevant facts specific to your case.... Read More

If you had a 100% plan and all filed claims have been paid in full, you should contact the Trustee to start the closing process and get your discharge (if eligible).  Any surplus remaining will be returned to you, or your attorney, depending on the local bankruptcy rules for the district where your case was filed.... Read More

How did you get a Chapter 13 case confirmed with no income?  Your attorney is in the best position to answer your question on this, so you should ask them.  But my thought is that you should be able to use the 401k as you wish, but you need to understand that if you are below retirement age, you will likely end up having to pay taxes and penalties on the early withdrawal, and if those are not timely paid, it can cause problems in your Chapter 13 case as well (i.e. dismissal of the case for not paying postpetition expenses). Ultimately the answer depends on multiple factors, including the terms of your confirmed plan, your current budget, and your expected budget, as well as your debt classifications and other things, which is why your attorney is the best person to advise you on this.... Read More

You can convert your case to Chapter 7 at any time assuming it wasn't previously converted.  However, it may not be in your best interest to  do so if you have non-exempt assets or other transfer issues which a Ch. 7 Trustee might be interested in. But you may be able to modify (i.e. lower) your plan payment based on new circumstances, or even seek a "hardship discharge" in Ch. 13, but those depend on a lot of different factors. If you are not presently represented by an attorney, you have almost no chance of succeeding in a Ch. 13 case anyway.  You need to hire an experienced bankruptcy to review your case and advise you on your best options.  ... Read More

Transferring the property to a Trust would be a fraudulent transfer which can be recovered by creditors or a bankruptcy trustee for up to 8 years from the date of transfer. You can sell the property and buy a new home, but assuming California's exemption laws apply in your case (depends on where you have lived the past 2 years), the maximum homestead you would have is $175,000 if you are over 65 or disabled.  Otherwise it would be $75,000.  Either way it's  way less than $900,000 so there's no way you would be able to protect that much in a Chapter 7 case.  Your only other bankruptcy option would be to do a 100% repayment plan in a Chapter 11 case, assuming you end up owing $765,000 from the deficiency.... Read More

I'm sure you can file bankruptcy.  The question is which Chapter you would be eligible for, and that depends on a number of different factors, including your gross income received in the previous 6 months, your current income and expenses, value of your assets, amount of debts, and other factors. Bankruptcy is not a simple process, but an experienced bankruptcy attorney can determine your eligiblity and discuss your options with you by merely scheduling a consultation with one in your state.   I suggest taking advantage of that. To schedule an appointment with me simply click here and follow the instructions for submitting your information and scheduling an appointment.    ... Read More

There are different bankruptcy options that may help you, depending on when the loan was taken out, how much is owed, the value of the vehicle, and which chapter you are eligible for.   In a Ch. 13 you can always payoff the vehicle over 60 months at a lower interest rate than you are paying now.   I suggest having a consultation with an experienced bankruptcy attorney in your area to learn about your options.  ... Read More

You can discharge student loans in bankruptcy if you are able to prove, after a trial, that repaying them would constitute an "undue hardship" as that term is defined by the courts in your circuit.  It is a very difficult burden to meet and requires you to file a separate complaint and go through a trial separate from your bankruptcy case, so it is not cheap if you are using an attorney. But in your case, if your college closed while you were in attendance, you can seek a non-bankruptcy discharge.  See https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/closed-school for more information.... Read More

You pay for what you get in bankruptcy, like anything else in life.  Tax discharge analysis is a sub-speciality within the specialty of bankruptcy so you need to make sure you hire an attorney who understands all the nuances of that. Attorneys' fees vary widely.  Depending on their experience level and abilites, you may find fees ranging from $750 to over $4,000 for a Chapter 7 case.  My articles below on what to look for in a bankruptcy attorney and bankruptcy costs and fees may be illuminating to you. What To Look For When Hiring A Bankruptcy Attorney   Low Cost Bankruptcy Attorneys   Bankruptcy Costs and Fees... Read More

When you say your lawyer "failed to include" judgment liens, I'm not sure what you mean.  If you mean they were not listed on your bankruptcy papers, that is not your lawyer's fault, unless you provided the lien information to them and they did not put them on the final papers that were filed.  Although even in that instance, you presumably reviewed the final papers before they were filed with the court, so I doubt you would have a good cause of action against them for malpractice if you signed the documents without the liens/debt being listed. If instead what you mean is that the liens were listed but your lawyer did not seek to have them avoided (i.e. removed) by filing the appropriate motion with the court, that is a separate issue altogether and whether it is negligence will depend on what your written agreement with the attorney provided.   In the Central District of California attorneys are required to list exactly what their representation includes and excludes, and in most cases something like a lien avoidance motion would not be included in the basic filing fees.  Your retainer agreement with the attorney would determine whether he/she was responsible for filing any motions to avoid liens. All that having been said, if your liens were avoidable on the date you filed your bankruptcy case, you can still seek to reopen your bankruptcy case to have them avoided now.  But it is a mathematical requirement, so the numbers must show you can do it.  You would need an appriasal of your property as of the date your case was filed, the amount owed all mortgages and other liens against the property, and the amount exempted on Schedule "C".  With that information an experienced bankruptcy attorney can determine if the lien(s) are avoidable. I suggest scheduling a consult with an experienced bankruptcy attorney in the district where your case was filed.... Read More

That depends on the local rules of the court in your jurisdiction as well as how quickly the clerk's office notices and processes the dismissal.  In the Central District of California you have 14 days from the petition filing date to file all the required missing documents and schedules.  If you do not, your case will be dismissed at some point thereafter.  It could happen the next day, or it could happen a week from then.  I would go ahead and try to file the documents and hope the case didn't get dismissed.  If your case was dismissed, there are ramifications for future filed cases, including a reduction in time you get protection of the automatic stay. Best thing to do of course would be to hire an experienced bankruptcy attorney to represent you. Good luck!... Read More

I'm not sure what your question is, but if you are interested in possibly filing a bankruptcy case to deal with the debts you owe, you should schedule a consultation with a bankruptcy attorney to go over your options. I am available should you be so interested and you can schedule an appointment by going to https://www.bklaw.com/consultmain/  ... Read More

There is no limit to the number of times you can file bankruptcy.  There are, however, limits on when you can receive a discharge of debts in bankruptcy depending on how long it has been since your last case filing, which chapter it was, and other factors. For a complete breakdown of the timelines see https://www.bklaw.com/bankruptcy-blog/2012/11/time-between-filing-bankruptcy/... Read More

If you file for your corporation, your only option to stay in business is to do a Chapter 11 case.  Corporations cannot file Chapter 13.  Whether you would file for your corporation or yourself personally depends on who has liability on the debts, and other factors. You need to have a consultation with an experienced bankruptcy attorney in your area to go over your options. I am available if you are in the Greater Los Angeles Area.... Read More