Bankruptcy Legal Questions

You should contact your father-in-law's attorney first.  Then you should contact father-in-law or loan company.  I am presuming that you have no document giving you permission to hold a "private lien sale."  If the title to the car is in your father-in-law, then he's responsible for handling.  Basically, it's whoever's name is on the title to the car.... Read More

Mr. Coachman, Yes, generally speaking, one spouse may file for bankruptcy without the other being forced to file.  However, the court will likely review the income and assets of both spouses, especially when determing whether the spouse who is filing can qualify under any applicable means test. Also, keep in mind that debts and obligations that were guaranteed by the non-filing spouse will likely not go away. Therefore, if you co-signed for your spouse's loan and they file bankrupty, they may have the debt forgiven by the bankruptcy court, but you would still be liable for the payments. The same goes for any other obligations the non-filing spouse committed to pay in conjunction with the spouse who is filing bankruptcy.  ... Read More

You need an experienced bankruptcy attorney who knows how the local trustees opperate and how your case should be presented. Hopefully you have not filed without suitable counsel.  This is a very advanced area of law for a lay person to try and take on by themselves. The answer to your question is not simple. It depends. Please feel free to reach out and contact us.  I would be happy to speak further on this with you.  Good luck. 203.870.6700... Read More

Qualifying for bankruptcy has nothing to do with equity in your property.   Your choice of which Chapter of bankruptcy to file might be affected by that, however. You have approximately $140,000 of equity in your property based on the facts you provided.  Assuming you have resided in that property in California for more than the last 2 years prior to filing a bankruptcy case, California's exemption laws would apply in your case.   California has a homestead exemption of $100,000 for a married couple.  If you are over 65 or disabled or over 55 years old and have joint annual income below $35,000, then you have a $175,000 homestead exemption.   If you only qualify for the $100,000 exemption, then your home would be potentially at risk of being sold by a bankruptcy trustee in a Chapter 7 case although after factoring in costs of sale, a Chapter 7 Trustee might decide not to sell the property.  However, you could avoid the risk altogether by filing a Chapter 13 case and paying out the amount of the excess equity (minus estimated costs of sale) which would actually be zero when you factor in those costs.   So you could possibly do a very minimal Chapter 13 payment of maybe $100 per month for 36 to 60 months to deal with the debt. Whether Chapter 13 or 7 makes sense for you depends on what other assets you have, your total debt, and your budget (as defined by the United States Bankruptcy Code). The only way to determine what your best option is, is to have a consultation with an experienced bankruptcy attorney in your area.      ... Read More

The short answer to your question is that yes you can use your retirement funds to buy a car, but I will go through the legal explanation below. Technically, the Trustee has until 30 days after they conclude the Meeting of Creditors (341a Meeting) to object to any exemptions that you have.   So assuming you properly listed the IRA and exempted it, and the Trustee concluded the Meeting of Creditors after your meeting a week ago (which is usually the case, unless the Trustee requested additional information or intends to pursue any assets that you have), then you may use your IRA funds any time after that 30 day period if the Trustee does not file an objection to your exemption by that time. Generally speaking, retirement accounts are exempt and Trustees do not typically object to them unless they are very high amounts (like over a million dollars), so it is likely fairly low risk that there would be any issue with you using the funds now.   But of course if the Trustee did successfully object to your exemption, you might have to turn over the retirement funds to the Trustee.   But again, that is a very unlikely scenario. What your attorney was likely telling you was that it is not a good idea to use your IRA to buy a car, regardless of the bankruptcy case.   If you take an early distribution on your retirement, you will both pay a penalty for the early withdrawal (if you are below the age at which the IRS allows withdrawal) AND that withdrawal will be considered income on which you will have to pay taxes.    So overall, since retirement funds in general are protected and to be used for retirement, plus the costs for early withdrawal, it is usually a bad idea to use them for anything other than retirement.    That being said, as you mention, you do need a vehicle and sometimes you need to use retirement for these things.  Just be aware of the costs of doing so.      ... Read More

Good morning  Im sorry to hear about your financial situation. Depening on which city you reside, you should seek out lcoal counsel. If you reside in Houston area, our office offers a free consultation to go over your options If so, please feel free to contact me Peter Kim, Attorney... Read More

Bankruptcy is certainly an option.  Whether or not it is your best option depends on a number of different factors.  You should have a consultation with a bankruptcy attorney in your state to see what you're eligible for and analyze all your different options. I offer free initial phone consultations.  https://www.bklaw.com/consultmain/  ... Read More

His income will not be considered for what is called the "Means Test" and will not effect your filing staus as far as your eligibility goes for you are not married.  However, if his extra income effects any of the catagories of expenses you list in Schedule J, it could.   For instance, if he were to pay more to your portion of the rent (which I presume you currently split), or if he were to pay any other expsenes on your behalf, it would lower the amount you claim you pay for that expense and, consequentlly, change your income to debt ratio.  If his new contributions changes the numbers so much that you are now solvent, that is, having an excess of income at the end of the month after you paying for your listed expenses, you will no longer be elegible to file a Chapter 7 bankruptcy, presuing that is the chapter you are filing under.... Read More

Good morning Yes you can flie a chp7. As long as you are current on your mortgage and if your only source of income is social security, you will be eligible to file a chp7 case.  Pertaining to your wife's asset, depending on what they are, they can be protected, but it depends If you reside in the Houston area, then you can give a call to our office for a free consultation  Peter Kim, Attorney... Read More

Good morning   Yes, you can file a chp13 bankruptcy with your only income being Social Security. However, the important question to ask is if chp 13 or chp7 would be best for you. If your current on your mortgage payments, then you could file a chp7 to eliminate your unsecured debts (ie credit card, loans, etc)  If your behind on your mortgage, the  chp13 would be the type of bankrutpcy that you would be looking into. In a chp13, you will make the ongoing mortgage plus the mortgage arrears to get yourself current. All your unsecured debts would still be wiped away. The chp13 is a 3-5 year plan where the mortgage arrears would be divided by the 3 or up to 5 years period of time.  I apologize for the general response, but if you want more specific answers, please feel free to contact me if you reside in or around the Houston area (since we only practice in the Houston area) Peter Kim, Attorney... Read More

This seems to be a question for your Chapter 13 attorney.  Your question does not say whether the vehicle is titled in your name or not.  If the vehicle is not an asset in your bankruptcy case and you are just making payments, then your monthly budget will have to be adjusted if the car payment goes away.  If your name is on the title and the vehicle is an asset in your bankruptcy case, you will need to file paperwork in your bankrutcy case showing the removal of the vehicle as an asset and the change in the monthly budget.... Read More

Yes, unemployment income is generally considered income for bankruptcy purposes.  The stimulus payment is more complicated.  If you have already hired an attorney, you should speak with your attorney about these questions.  If you have not yet hired an attorney, you should speak with one in your geographic area.... Read More

Your question is a bit vague.  Are you asking how much the court filing fee is for bankruptcy, or how much attorneys fees are?  The answer to both depends on which Chapter under which you file and the facts and circumstances in your case. I recommend having a consultation with a bankruptcy attorney in your area.  Most offer free initial consultations at which you can get all your questions answered, including the costs.    ... Read More

Yes, you can file individually without your spouse, but your spouse's income/expenses will factor into the eligibility analysis and her assets and debts will also need to be listed.   Whether and to what extent she would be affected by anything will depend on the exact numbers involved.    You need to have a comprehensive consultation with an experienced bankruptcy attorney in your State to go over everything with you and determine what risks and benefits there are.  ... Read More

The answer depends on whether you received a discharge in your prior case, which Chapter under which you filed, and which Chapter under which you seek to file now. There are different time periods that have to run depending on the above. For specifics on the different options and time periods for filing bankruptcy, see https://www.bklaw.com/bankruptcy-blog/2012/11/time-between-filing-bankruptcy/... Read More

If you already "inherited" the living trust, then you are now the owner of the Trust corpus, so there is nothing to revoke.   You need to have a consultation with an experienced bankruptcy attorney in your area to go over all th relevant information and advise you on your options.   Without knowing your income, expenses, value of your assets, amount of your debts, and other specific information (including the terms, conditions and elements of the Trust), there's no way to advise you on any of this. If you live in the Los Angeles Area and would like a free phone consultation, I'm happy to assist.  To do so please visit https://www.bklaw.com/consultmain/ to submit your information and schedule an appointment. ... Read More

There is a collections statute of limitations on tax debt which I believe is 10 years, but I'm not sure from when that date runs.  You should discuss that with a tax attorney or tax resolution specialist. As far as bankruptcy goes, the taxes may be dischargeable depending on the dates of the taxes, when the returns were filed for each year, and when they were assessed. If you would like a free consultation to go over your eligibility and options, go to https://www.bklaw.com/consultmain/ to submit your information and schedule an appointment.  I'm happy to advise you.  ... Read More

That is something that will depend on the facts of your case and jurisdiction where your case would be filed. If you are trying to stop a foreclosure and catch up on past due payments, most likely you are looking at a Chapter 13 case.  In a Chapter 13, part of your attorney's fees can be taken from the monthly payments you will be required to make, so it really depends on what those payments will be to determine how much you would have to pay prior to filing your case. The only way to find out is to schedule a consultation with a qualified bankruptcy attorney in your area.   If you live in the Greater Los Angeles Area (other than Riverside/San Bernardino) I am happy to give you a consultation to go over your eligibility, options and questions.  Click here to prepare for and schedule an appointment.... Read More

In a Chapter 13, a judgment lienholder must be paid in full with interest during your plan term, unless you are able to avoid (remove) the lien. Judgment liens can be removed if certain criteria are met, which depends on the value of the property, amount of other liens against the property, and amount of your homestead exemption. Chapter 13 is very complicated and your questions indicate that you badly need an attorney to represent you. If you are in the Greater Los Angeles Area and would like a free consultation to go over everything, please visit https://www.bklaw.com/consultmain/  ... Read More

Whether taxes are dischargeable in bankruptcy depends on a number of factors and requires an analysis of tax transcripts by an experienced bankruptcy attorney. The requirements can be seen on my webpage at https://www.bklaw.com/bankruptcy-taxes/ If your wife joins in your filing and you both receive a discharge of the debts, and the tax debts qualify for discharge, then there will be no more obligation to pay on the taxes for either one of you.  It has nothing to do with whether or not she is earning income. I recommend scheduling a consultation to go over your situation in detail.    ... Read More

You are not responsible for anothers persons debt, even if married unless you are a co-debtor on the debt. There are circumstances where the debt could become an issue, like if you bought a house in both of your names and the unpaid creditors put liens against your property. By him filing bankruptcy now this should not be an issue.... Read More