Bankruptcy Legal Questions

I'm not clear on what you mean by the word "claim".   If you mean "list", then yes you must list all your debts and all your assets in any bankruptcy case. If instead you mean "discharge", then student loans are not presently dischargeable in bankruptcy unless you prove, after a trial, "undue hardship" as that term is defined by the courts in your jurisdiction.  It is a tough standard to meet. There is a new bill pending now in Congress to make student loans dischargeable under certain circumstances.   Whether and when that bill will become a law is obviously uncertain at this point.  ... Read More

When a Chapter 7 case is filed, the bankruptcy trustee becomes the owner--at least temporarily--of everything the party filing the Chapter 7 case (the "debtor") owns.   Your son presumably owns 100% of the S-Corp.  That interest would be an asset of his Chapter 7 bankruptcy estate.  Whether the corporate assets would therefore be at risk depends on their value, and what exemptions he has under applicable law relating to his case.   For more on exemptions see https://www.bklaw.com/bankruptcy-exemptions.... Read More

The best solution can only be determined after a comprehensive consultation with an experienced bankruptcy attorney in your area.  They can go over both your bankruptcy and non-bankruptcy options and, based on the facts of your situation, advise you on the benefits and costs of each, so you can decide the best solution for you.  ... Read More

You are under no legal obligation to provide any of that information or documentation.  However, doing so does not create any obligations to you.  Your boyfriend is required by the bankruptcy court to disclose the amounts you contribute towards the household expenses.  This should NOT require disclosure of your income or require you to sign any documents.  This may be some specific requirement they have in Washington of which I'm not aware.    It's not going to hurt you to provide the documents, but I do not think your boyfriend is required to provide all that. Make sure he's using a qualified and experienced bankruptcy attorney in his case.    ... Read More

1.  There is no limit to the number of times you can file a bankruptcy case.  The issue is whether you can receive a discharge of debts in the particular chapter under which you are filing.  And that depends on which chapter your prior case(s) was filed under, how long ago it was filed, and whether you received a discharge. For a detailed explanation of all the timelines and requirements, see https://www.bklaw.com/bankruptcy-blog/2012/11/time-between-filing-bankruptcy/   2.  There are many differences between Chapter 7 and 13.  The main difference is that in Chapter 7 you do not make payments to your creditors and the Trustee will liquidate (i.e. sell) any non-exempt assets you have.  In a Chapter 13, you get to keep all your assets, but you must pay your creditors over time at least what they would receive in a Chapter 7 and not less than your disposable income shows you have the ability to pay.    There are many other differences and requirements, which is why God invented bankruptcy attorneys.  You should avail yourself of the knowledge of one in your area to go over the specifics of your situation and advise you on your eligibility and options.... Read More

There nowhere near enough information to advise you or answer your question.   Which bankruptcy chapter did you file before?  Did you receive a discharge? What do you mean "the house was not on" your prior bankruptcy case?  Failure to list assets is bankruptcy fraud which is a jailable offense.   You might be able to file a Chapter 13 case now to deal with any arrearages to the foreclosing lender and try to keep your house. Bottom line is that you need to consult with an experienced bankruptcy attorney in your area.  Preferably one that just does bankruptcy--not short sales.... Read More

If you are asking whether an authorized user is liable for the primary signatore's obligations on a credit card, the answer depends on the laws of whatever state governs the contract and, most likely, whether the authorized user signed the cardholder agreement.  In most cases if they did not sign the agreement, then they are only liable for the actual charges they made on the card (where they signed for the charges).... Read More

Assets are not "touched" in a Chapter 13 case, but you will need to repay at least the amount of non-exempt value of your assets to your creditors.  Exemptions are protections you have under state law law for values in assets.  Which state's exemption law applies in your case depends on where you lived in the 2 1/2 years prior to filing your case.   A consultation with an experienced bankruptcy attorney in your area will enable you to determine what amounts you would have to pay in a Chapter 13 case.... Read More

You are asking about what a trustee will take into consideration and this implies that you have already filed a Chapter 7 case. Trustees don't have anything to do with determining issues relating to your budget or the means test, which I think (although it is not clear) is what you are inquiring about. Just because your income for the 6 calendar months prior to filing is above the median income does not mean you won't qualify for a Chapter 7 case.  It's a very complicated analysis with numerous different factors being taken into consideration. If you are married, you must include all income, expenses, assets and debts of you and your spouse regardless of whether they are joining in the filing.  I'm not sure what you mean by "go down the drain", but your husband can continue his self-employment after the case is filed.  The key is going to be what assets he has from his business now (i.e. rights to residuals, copyrights, royalties, receivables, etc.) and whether those can be protected (which will depend on a number of factors, including the value of all your other assets, which state's exemption laws apply in your case and more). Bankruptcy is a very complicated area of law and your questions can only be answered after obtaining all the relevant information.   The bottom line is you need to have a consultation with an experienced bankruptcy attorney to go over all the relevant information (income, expenses, assets, debts) to determine what you are eligible for and which option is best. ... Read More

You can dismiss a Chapter 13 case at any time.  Of course you have to file the correct forms to dismiss the case and comply with the rules of your local bankruptcy court.    Most likely your case will be dismissed automatically if you do not go to the 341a meeting, but I advise against dismissing that way because there could be repercussions, including a prohibition on re-filing later.  A lot depends on how the courts in your district handle these things.   Hopefully you hired an attorney to represent you on this.... Read More

Very sorry to hear about all your issues.  It sounds like bankruptcy would be  very good option to eliminate your debts and start to rebuild your credit and eliminate the pressure you have from your creditors. You should have a consultation with an experienced bankruptcy attorney in your area.... Read More

I'm not sure how much "deep debt" is, but you may want to look into filing a Chapter 13 case to deal with it.  Whether it makes sense and how much you would need to pay to your creditors depends on the facts of your situation (your budget, amount of your debts and assets, etc.).  Chapter 13 will offer you the lowest cost way to deal with the debt. If you reside in the Greater Los Angeles Area (other than Riverside/San Bernardino Counties) I am happy to give you a free consultation.... Read More

Chapter 13  should eliminate all income tax debt because you will be required to pay any priority taxes 100% in the Chapter 13 and any nonpriority taxes would be discharged (assuming you complete all the required plan payments). Priority taxes are essentially those which are owed for years in which the tax returns were last due to be filed more then 3 years prior to filing the bankruptcy case or assessed within 240-days prior to the case being filed, or that are still assessable after the case is filed.  There are certain events which extend these time periods, such as having an open offer in compromise.  ... Read More

This needs to be handled very carefully and you need to hire experienced bankruptcy counsel to represent you. Most likely given that it has been over 4 years since you transferred the title to your mother, there will not be an issue with the vehicle.  But some bankruptcy trustees look  back 8 years on these types of things.  There are ways to "clean" this so it is not a problem, but it is too sensitive to provide legal advice in this forum without first having a comprehensive consultation.  ... Read More