San Francisco Bankruptcy Attorney Blog

A San Francisco Bankruptcy Attorney lists Five Things to Know About Business Formation and Bankruptcy...

The current economic affairs are affecting more than just individuals unable to meet their debt obligations. Large and small business alike are also suffering and turning to bankruptcy in order to emerge with a viable option for keeping the doors open. Business formation and bankruptcy is becoming increasingly common in California and across the nation. Although chapter 11 is the most common chapter in which business file under, it is not the only available option. Chapter 11, however, is the only chapter which allows for business to reorganize its debts and business structure.

Business formation and bankruptcy will allow the business to remain in operation. While bankruptcy will often require new accounts to be opened in order to separate pre-filing debts against post-filing expenses, it is possible to continue with buying and selling in the normal course of business.

Employees are not automatically fired. Businesses thinking about business formation and bankruptcy do not have to cut payroll employees in order to be successful. Part of remaining open during the reorganization process means retaining employees to perform the day to day tasks of the business.

Businesses can also reduce the amount of debt owed and stretch out payments in order to make obligations easier to meet. Restructuring businesses finances in bankruptcy often allows for the outstanding balances to be repaid at a reduced rate over an extended period of time. For example, in General Motors chapter 11 filing, part of its plan was to phase out several unsuccessful departments, using the money from liquidation to repay creditors.

Business formation and bankruptcy also allows for restructuring. To use the General Motors example again, GM split into a “new GM” and an “old GM” and dealt with its assets and liabilities according to whether departments were going to remain in business or whether the programs were going to be eliminated.

Last, as with all bankruptcy filings, businesses also are entitled to the automatic stay that goes into effect when the bankruptcy petition is filed. This is important because it allows business owners some breathing room when dealing with creditors attempting to collect on outstanding debts. The stay stops all current lawsuits and prohibits the filling of new lawsuits or other action until the bankruptcy is complete.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney addresses how to handle harassing creditors

Almost everyone who is behind on credit card payments knows how annoying the calls from creditors demanding payments can be. However, not everyone knows that it is possible to make these calls stop, and in certain circumstances, actually sue the creditor for violating the law if the contact continues. Harassing creditors are annoying and difficult to deal with. The following tips will help an individual deal with harassing creditors and hopefully find some peace and quiet.

When you are first contacted by a collector try to get as much information about the debt as possible. Often mistakes are made about who actually owes a debt so you want to make sure the debt is yours. If you cannot work out a resolution regarding the debt and wish for the debt collector to stop making contact with you, send them a letter stating you wish all contact regarding the debt to stop. Make a copy of the letter and sent it certified mail with a return receipt to have proof the letter was sent and received. Upon receipt of the letter the harassing creditor is not allowed to contact you anymore.

While sending the letter does require that the harassing creditor stop contacting you, it does not mean that the debt is extinguished. The collector may still file a lawsuit and collect on any judgment entered against you. Debt collectors are also not allowed to use threats of violence or arrest to try and coerce you into making payments. Harassing creditors are also not allowed to make false statements or threaten legal action without actually intending to carry out with the statement.

If harassing creditors are still contacting you after sending a letter requesting them to stop, or they are making threats or otherwise violating the law, it is possible to sue the creditor and receive money damages. Have a lawyer review your case in order to determine whether a lawsuit can be filed. In addition, harassing creditors should be reported to the Federal Trade Commission.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney provides an Involuntary Bankruptcy FAQ

What is involuntary bankruptcy?

Involuntary bankruptcy arises when creditors of an individual or a corporation file a petition with the bankruptcy court in order to start bankruptcy proceedings against a debtor. It is called “involuntary” because the debtor is not making the decision on whether to file, rather the debtor’s creditors are making that decision.

What chapters of the bankruptcy code allow for an involuntary filing?

Involuntary bankruptcy proceedings can be brought against an individual or a corporation for chapter 7 and chapter 11 bankruptcies. The bankruptcy code does not provide for an involuntary chapter 13 filing.

Are involuntary bankruptcies common?

No, involuntary filings are very rare and almost never brought against individuals. Involuntary proceedings against businesses are more common but the overall percentage of those involuntary cases is still very low.

What happens to the debtor’s estate in an involuntary chapter 7 proceeding?
Generally a trustee is appointed to oversee the debtor’s estate in an involuntary proceeding to prevent the loss of the estate. If the debtor operates a business the trustee might also be appointed in order to continue with the business operations.

Can the bankruptcy court dismiss an involuntary proceeding?

Yes, the bankruptcy court has the power to dismiss involuntary bankruptcy actions. If the debtor does not waive his or her right to judgment, the bankruptcy court may grant judgment in favor of debtor against petitioners for costs or attorney’s fees. If the proceeding was brought in bad faith the court may award debtor any damages caused by the filing or punitive damages.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy lawyer discusses California Bankruptcy Law

Although there is no specific California bankruptcy law, as the bankruptcy code is federal law, the bankruptcy code does provide for certain matters to be dealt with on a state level. There are two main areas of the bankruptcy code where California bankruptcy law is applicable. Those areas deal with claiming exempt property and looking at potentially fraudulent transfers. Each will be discussed in turn.

When a bankruptcy petition is filled out the debtor must complete several different forms, known as bankruptcy schedules. The schedules break up the debtor’s assets and liabilities into different categories, as well as list all sources of income and expenditures incurred by the debtor. There is a specific schedule that allows for the exemption of assets, meaning those assets will remain in the possession of the debtor and not be disturbed during the bankruptcy proceeding.

While the federal bankruptcy code lists what qualifies as an exempt asset and sets maximum amounts that can be claimed, the federal list is not exclusive. 11 U.S.C. §522(b) of the bankruptcy code allows for states to create its own exemption list. California bankruptcy law has taken advantage of the federal bankruptcy code that permits states to adopt its own exemptions. California bankruptcy law has developed its own list of exemptions, which can be found at Cal. Code Civ. Pro. Sections 703 and 704 (depending on which list the debtor wants to apply).

In addition to a more inclusive exemption list, California bankruptcy law also applies to fraudulent transfers within the scope of bankruptcy. Federal law allows for bankruptcy trustees overseeing a debtor’s bankruptcy case to avoid transactions that are believed to have been carried out with a fraudulent purpose. However, Congressional discussions behind the avoidance provision indicate that pre-bankruptcy planning is encouraged and therefore a finding of actual fraud is rather difficult.

California bankruptcy law, however, has its own criteria for determining whether a transfer was fraudulent and subject to avoidance by a bankruptcy trustee. The Uniform Fraudulent Transfers Act (UFTA), found at California Civil Code §3439.04, is applicable to the bankruptcy code by way of 11 U.S.C. §544(b). That federal provision provides that any state laws dealing with questionable transfers are applicable to a bankruptcy proceeding. While California bankruptcy law still allows for transfers to be made prior to filing for bankruptcy, the UFTA is an entirely different inquiry above the federal requirement that transfers not be made with intent to defraud creditors.

So, as you can see, although bankruptcy is solely federal law, the bankruptcy code does provide for state laws to also be used when going through a bankruptcy proceeding.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankrutpcy attorney sites Common Bankruptcy Fraud Questions

oth federal bankruptcy law and state law allow for certain transactions to be avoided in bankruptcy if the transactions were carried out with an intent to defraud creditors. In addition, discharge from bankruptcy may be denied if the trustee assigned to oversee the case determines the debtor engaged in fraudulent transactions. Many debtors have bankruptcy fraud questions so it is important to understand what type of behavior raises flags with the courts.

Most bankruptcy fraud questions asked by debtors deal with what type of behavior is allowed leading up to the filing of bankruptcy. Debtors often want to know whether it is permissible to transfer some or all of their property to family members or friends in order for the property to stay out of reach from creditors. Generally transfers of property made prior to filing bankruptcy are avoidable and the property, if it is not able to be exempted, will be available to repay the creditors, if necessary. Bankruptcy fraud questions also focus on whether nonexempt property can be converted to exempt assets.

Although the federal bankruptcy code is rather liberal in the approach to what types of asset conversions are allowable, prohibiting only transfers made with an actual intent to defraud creditors, the bankruptcy code also allows trustees to use state law to avoid certain transfers. For example, in California, a trustee can avoid pre-filing transfers of nonexempt to exempt assets if the transfers violate the Uniform Fraudulent Transfers Act (UFTA).

In addition to questionable transfers, trustees also want to ensure that the debtor fully disclosed all relevant information in the schedules accompanying the bankruptcy petition. The trustee will often question the debtor if they believe a schedule was filled out improperly or if the trustee believes property was intentionally omitted. Those with bankruptcy fraud questions should consult with a bankruptcy attorney in order to appropriately prepare for bankruptcy planning and filing.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy lawyer provieds a Bankruptcy and Foreclosure FAQ

Can filing bankruptcy stop a foreclosure?
Yes. Filing a bankruptcy petition prior to the sale of a foreclosed home stops the foreclosure process. Bankruptcy and foreclosure are closely related in the sense many individuals look to bankruptcy to help discharge debts and stop adverse actions against them. When the bankruptcy petition is filed a stay automatically goes into effect.

What is a stay?
A stay is a type of injunction (a court order preventing action) that automatically stops lawsuits, garnishments, most collection activities, and home foreclosures. This is an important tool for individuals who risk losing their home to a foreclosure because it will buy them some time in order to rearrange their financial situation to catch up on missed payments.

Are stays available in a chapter 13 case?
Yes. It is advantageous to file a chapter 13 bankruptcy when the debtor is behind on their mortgage payments because the chapter 13 plan will allow for the individual to catch up on missed payments. With bankruptcy and foreclosure the intention of the debtor is to remain in the house and stop the bank from proceeding with a sale of the property. When dealing with bankruptcy and foreclosure it is important to evaluate your individual finances in order to determine what protections are available under the bankruptcy code.

What happens after the Chapter 13 plan is completed?
Generally with bankruptcy and foreclosure, the termination of chapter 13 payments does not mean the debtor is now free of their mortgage. Instead, what a chapter 13 repayment plan allows for is the individual to catch up on past-due mortgage payments. There is still a continued obligation to make the mortgage payments if the individual wishes to keep the home.

Is it possible to lose my home during bankruptcy?
Yes. Even if the individual facing foreclosure files the bankruptcy petition in time to have the automatic stay go into operation, if the individual fails to make his or her regular mortgage payments that are due after the filing, the bank (or other lender) has the option to foreclose on the property.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses how filing bankruptcy will create debt relief...

What types of bankruptcy are offered to individuals?
For individuals seeking debt relief, the bankruptcy code provides for several different methods for filing, depending on the individual’s financial situation. The most common types of cases filed are those in chapter 7 (liquidation) and chapter 13 (repayment). Chapter 11 is primarily used for business reorganization or individuals who do not meet Chapter 7 or 13 requirements, and chapter 12 is only available to farmers and fisherman.

What does bankruptcy do?
Generally, individuals seeking debt relief will file for bankruptcy, with the ultimate goal being either to have most debts discharged or to structure a repayment plan to pay back a certain amount of the debt and have the rest discharged at the end of the plan. Chapter 7 debt relief is in the form of liquidating all non-exempt assets and using the proceeds to pay back creditors. In chapter 13, the individual must have a constant source of income in order to set up a repayment plan. Often those repayment plans are for only a certain percentage of the actual amount owed to creditors.

What does a discharge provide?
Part of the debt relief goal in bankruptcy is to have as many possible debts discharged. Discharge means that the debtor is no longer personally liable for the debts and those creditors cannot take any action against the debtor in order to seek repayment. This is important for an individual wanting debt relief because once the debts are discharged, the debtor can move forward and not have to worry about making more payments.

Is it possible to discharge taxes?
Yes, although there are certain qualifications that must be met prior to having taxes discharged in bankruptcy. The general rule in a chapter 7 case is that taxes are only able to be discharged if they are over three years old or if it has been three years since the debtor’s last tax audit or assessment. For example, if a debtor owed taxes for the years 2005, 2006, and 2009, only those debts from 2005 and 2006 would be subject to discharge. In chapter 13 cases, however, taxes are considered a priority claim and are repaid first during the repayment plan.

What does bankruptcy do for debt relief?
It is important for individuals to realize that once the bankruptcy proceeding is over and the debtor obtains a discharge, the debtor is no longer liable for those debts. This allows the debtor to move forward in life and begin rebuilding credit and taking active steps to manage finances. The debt relief alleviates stress and other problems associated with pre-bankruptcy worries. Whether the individual files under either chapter 7 or chapter 13, once the discharge is entered there is no longer a need to be concerned about the obligation to repay the debt.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses Bankruptcy and Credit Card Debt

Those pondering whether to file bankruptcy generally want to know what happens to credit card debt if bankruptcy is filed and upon discharge of a successful bankruptcy petition. Credit card debt is unsecured, meaning there is no collateral or other asset securing the loan amount. Depending on the type of bankruptcy filed, the credit card debt will either be eliminated entirely or repaid at a severely discounted rate. Often individuals who have stopped making payments on their credit card debt will be served with notice of a lawsuit filed on behalf of the respective credit card companies, seeking a judgment for the unpaid amount. Filing a bankruptcy petition will automatically stay those collection proceedings.

In chapter 7 bankruptcy, the unsecured credit card debt is eliminated upon discharge. The trustee overseeing the chapter 7 bankruptcy will collect all nonexempt assets, if available, to sell. Whatever proceeds result from the sale of those nonexempt assets are used to pay back down the credit card debt. It is important to note that even if the debts are not repaid at all, a bankruptcy discharge eliminates the debtor from any future liability regarding the listed credit card debt.

In a chapter 13 bankruptcy case, the amount the creditors are repaid generally depends on the financial situation of the debtor. Chapter 13 requires that the debtor has a source of income. If there is any “disposable income” available after monthly expenses and other deductions are taken into account (mortgage, child care, health costs, etc), those amounts are paid to the unsecured creditors. Generally the amounts repaid over the life of the Chapter 13 plan are a fraction of the actual amount owed, although it is possible for an individual who makes enough money to have enough disposable income to repay the unsecured creditors 100 percent. Bankruptcy can still be advantageous for that debtor, however, because the debts are generally repaid within three or five years (depending on the length of the repayment plan).

For those worried about obtaining credit after a bankruptcy discharge, lenders generally are willing to extend credit between 18 and 24 months after a discharge. In addition, those who want to start rebuilding their credit earlier can always apply for a secured credit card. Secured credit cards generally require a cash deposit before credit is extended up to that limit. This is advantageous for those who need to provide a credit card for car rentals or where cash is not accepted. Secured credit cards are also a reminder that even after bankruptcy it is possible to engage in regular transactions involving credit.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses student loans in bankruptcy...

Often individuals contemplating whether to file bankruptcy wonder what happens with student loans in bankruptcy. It is not uncommon for student loan amounts to exceed $70,000 for individuals who have completed a four-year college, and even with deferred interest and payments, the minimum monthly payments often eat a large portion of an individual’s monthly income. Generally, student loans in bankruptcy are not dischargeable. An individual dealing with student loans in bankruptcy can try to persuade a court that the loans present an undue hardship either on the individual or dependent’s of the individual, although the chances of successfully doing so are rare.

Although filing bankruptcy will not discharge student loans, it can help the debtor better manage student loan payments. If a chapter 7 petition is filed and the debtor’s unsecured debt is discharged, that individual will be in a much better place to allocate payment solely to the student loans because no other credit card payments will be required. Similar with a chapter 13 case, once the repayment plan is completed, the debtor will likely be able to comfortably repay the loans.

While the student loans might still be viewed as a burden, interest rates on the loans are generally much lower than they are on credit cards, and after a successful bankruptcy discharge, no credit card payments will be required anymore.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses Chapter 7 bankruptcy

What is Chapter 7 law?

Chapter 7 bankruptcy, also known as the “fresh start” bankruptcy, is designed to discharge certain unsecured debts. Chapter 7 law allows for those who make under a certain amount to file bankruptcy. Chapter 7 law is applicable to individuals, partnerships, corporations, or other business entity. Like other areas of the bankruptcy code, chapter 7 law does not allow for the discharge of certain debts (such as some taxes and educational loans). If an individual makes more than the state median income, chapter 7 law provides for a “means test” to determine whether the individual is still able to file.

Where is Chapter 7 law found?

Chapter 7 law is found in chapter 7 of the United States Bankruptcy Code. The Bankruptcy Code is in Title 11 of the U.S. Code.

What is involved with filing under Chapter 7 law?

Briefly, an individual who wants to file under chapter 7 law must first fill out a petition and submit it to the bankruptcy court. The petition much state where the debtor lives, what real and personal property they own, what their income is, what taxes have been paid, mortgage amounts, and other information dealing with the debtor’s financial situation. Once the petition is filed a meeting is held with a bankruptcy trustee. Chapter 7 law states any creditors of the debtor are allowed to appear at the meeting and examine the creditor. Under chapter 7 law the bankruptcy trustee also ensures that the debtor did not engage in any fraudulent activity with the bankruptcy filing. After that meeting, assuming nothing in the petition needs to be amended, the bankruptcy is generally discharged six to eight weeks later.

Does Chapter 7 law set income limits for filing?

Yes. In 2005 the Bankruptcy Code was amended with the intention of limiting the number of abusive filings. One of the amendments dealt with the imposition of income ceilings. Chapter 7 law states that individuals who earn more than the state median amount must satisfy a “means test.” Chapter 7 law has a presumption that if the debtor makes more than the state median and does not pass the “means test” the chapter 7 filing is presumed to be abusive. The median income in CA for an individual is $47,979 (this amount is adjusted periodically). If an individual does not meet the requirements for a chapter 7 filing, the filing will likely be either a chapter 13 or chapter 11.
If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses Chapter 13 of the Bankruptcy Code

Chapter 13 allows a debtor to keep property and repay the debts over a period of time through an approved payment plan. The chapter 13 bankruptcy code gives the debtor either a three or five year option for repayment. A chapter 13 bankruptcy code plan is also known as the “wage earner’s plan” as it is appropriate for individuals who have a steady stream of income. The chapter 13 bankruptcy code plan offers several advantages over a Chapter 7 liquidation. Chapter 13 bankruptcy code allows individuals to reschedule secured debts and extend repayment over the life of the plan. The chapter 13 bankruptcy code also allows for debtors to treat the repayment like a loan consolidation, where all the payments for the debts are made to the chapter 13 bankruptcy code trustee.

In order to be eligible for a chapter 13 bankruptcy code plan, the debtor must not have unsecured debts in excess of $360,475 and secured debts in excess of $1,081,400 (these limits are re-evaluated periodically). In addition, the debtor is required to have a steady stream of income, either from a profession or other constant source. Plans under a chapter 13 bankruptcy code petition must not rely on speculative income as a means to repay the plan.

After the debtor files the chapter 13 bankruptcy code petition, a repayment plan must be submitted to the court for approval. The plan is generally either submitted when the chapter 13 bankruptcy code petition is filed or within 15 days after the petition filing. The plan must identify how the debtor will repay the priority claims (taxes, bankruptcy costs, etc); secured claims (those items secured by collateral), and any unsecured claims.

If the debtor wishes to retain the property, payment to the secured creditors must at least equal the value of the collateral. Additionally, the chapter 13 bankruptcy code states that vehicles purchased within 910 days of filing are required to be paid off for the loan amount, not the value of the vehicle. Unsecured claims do not need to be paid in full so long as the plan provides that the debtor will pay all projected disposable income over the life of the plan. Unsecured creditors under the chapter 13 bankruptcy code must receive at least as much as they would have under a chapter 7 liquidation.

The debtor receives discharge the chapter 13 bankruptcy code upon completion of all payments. Creditors provided for under the chapter 13 bankruptcy code plan may not initiate action against the debtor to collect on discharged obligations. Non-dischargeable debts, such as alimony, certain taxes, and educational loans), are still the responsibility of the debtor after a chapter 13 bankruptcy code discharge.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney explains the bankruptcy trustee job:

Who are bankruptcy trustees and what is general description of the bankruptcy trustee job?

The individuals who have a bankruptcy trustee job are those appointed by the U.S. Attorney General. The Attorney General appoints one U.S. Trustee for each region. The bankruptcy trustee job is for a five-year term. Although rare, one aspect of the bankruptcy trustee job is to serve as a trustee in an individual bankruptcy case.

What are private trustees?

Private trustees are often appointed in each region to carry out the bankruptcy trustee job. These individuals are not government employees and must pay certain expenses out of their own pocket in order to fulfill the bankruptcy trustee job.

What are the bankruptcy trustee job duties?

Part of the bankruptcy trustee job is to enforce the U.S. Trustee Guidelines. Another aspect of the bankruptcy trustee job is to oversee audits of Chapter 7 and 13 cases chosen at random. That aspect of the bankruptcy trustee job is to determine whether debtor’s misstated income, expenditures, and assets.

What is the Bankruptcy Trustee's job at the 341 Meeting of the Creditors?

Part of the bankruptcy trustee job is to oversee a meeting of the creditors. At the meetings, the trustee swears in the debtor and asks the debtor questions about the filed bankruptcy petition and related areas. This is done to ensure that fraud was not associated with the filing of the bankruptcy or that the bankruptcy filing was abusive. Creditors, if present, may also examine the debtor to inquire about the reasons for filling bankruptcy.

What happens if a trustee suspects a crime?

Another aspect of the bankruptcy trustee job is to report suspected federal crimes. This duty is imposed by statute. One aspect of the bankruptcy trustee job with respect to federal crimes is to look, and report, any attempt by a debtor to conceal estate property. In addition, the trustee in a bankruptcy trustee job must report whether it is suspected that the debtor concealed records relating to financial affairs.

Can a trustee dismiss a bankruptcy case?

Yes. The U.S. Trustee has statutory authority to convert or dismiss a bankruptcy action. Generally this is achieved by filing a motion, although in practice the U.S. Trustees rely on the standing or private trustees to file motions, dismiss, or convert bankruptcy cases.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco Bankruptcy Attorney discusses bankruptcy fraud

Bankruptcy is governed by federal law, Title 11 of the United States Code (U.S.C.). Therefore, any attempt to commit bankruptcy fraud is a federal crime. There are two major types of bankruptcy fraud: concealment of assets and multiple filings. Both types of bankruptcy fraud convictions carry sentences of a fine up to $250,000 and/or up to five years in prison.

Concealment of assets is the most common type of bankruptcy fraud, and caught most often by the courts. Concealing assets is when a debtor either neglects to list certain assets in their possession, or attempts to divest himself of all of his assets by transferring them to family members or offshore accounts. A debtor does this in fear of his assets being liquidated during the bankruptcy.

The other common type of bankruptcy fraud is multiple filings. Since the filings of both Chapter 7 and Chapter 13 bankruptcies has risen so dramatically in the past ten years, it is often times difficult for courts to cross-reference each other to check for conflicts of interest. This allows a debtor to file for bankruptcy protection in two states, thus attempting to hide assets from each state by ‘storing’ part of their wealth in each state.

The 2005 changes to the bankruptcy laws have shown a significant increase in the number of bankruptcy fraud cases. One major change in the laws was the creation of the means test which compares a debtor’s average excess monthly income to that of the state’s median. In an effort to decrease average excess monthly income, debtors are now beginning to increase their average monthly expenditures for the six months prior to filing. This also constitutes bankruptcy fraud and is punishable by a monetary fine and/or prison time.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

A San Francisco bankruptcy attorney answers the question Who Files for Chapter 9 Bankruptcy?

Who files chapter 9 bankruptcy?

Chapter 9 of the Bankruptcy Code is reserved only for municipalities that want to file bankruptcy.

How is a municipality defined?
Municipalities that file chapter 9 must meet the definition in the bankruptcy code. The bankruptcy code defines municipalities as a “political subdivision or public agency or instrumentality of a state.” 11 USC 104(b). The definition is broad enough to allow cities, townships, and public improvement districts to file chapter 9 bankruptcy.

What happens when a municipality files chapter 9 bankruptcy?
Similar to other chapters, a municipality that will file chapter 9 must provide a list of creditors and provide notice to them. In addition, municipalities that file chapter 9 receive an automatic stay from collection.

Is a trustee appointed when a municipality files chapter 9?
Yes, although unlike other bankruptcy chapters, when a municipality files chapter 9 no examination of the municipality is conducted. In addition, the trustee does not monitor the financial operations of the municipality when it files chapter 9 and does not review the fees for professionals assisting with the case. This is primarily due to the 10th Amendments states rights provision.

What powers does a municipality that files chapter 9 have?
When a municipality files chapter 9 there are special bankruptcy statues that provide it with broad powers to run its financial affairs. These powers include raising taxes, rejecting collective bargaining agreements, and rejecting retirement benefit plans.

Is a debt management plan created when a municipality files chapter 9?

Yes, the bankruptcy code allows municipalities, when it files chapter 9, to develop a debt management plan. The plan either extends maturities, reduces the amount of principal or interest, or allows the municipality to refinance. There is no liquidation provision because of interference with the 10th Amendment states rights clause.
How does a municipality exit bankruptcy after it files chapter 9?

The municipality, in order to be discharged, must present a plan and deposit what is to be repaid under the plan with a disbursing agent, who is appointed by the court. Then the court must be satisfied the disbursements will be carried out.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!