What is Chapter 13 bankruptcy?

What is Chapter 13 bankruptcy?

Chapter 13 is a type of bankruptcy in which a debtor offers to pay his or her net projected disposable income for a period of 3-5 years. Most debtors file for Chapter 7 bankruptcy relief but many do not understand the benefits of a Chapter 13 bankruptcy. Chapter 13...
What is ‘secured’ debt?

What is ‘secured’ debt?

A “secured” debt is a debt where you have pledged property (also known as “collateral”) to ensure your payment of the debt. In other words, if you are unable to pay the debt, the lender can take the collateral and have the collateral sold to generate funds to pay the...
What are Exempt Assets?

What are Exempt Assets?

Exempt assets are assets the person filing for bankruptcy can shield from creditors and the bankruptcy estate. In other words, they are untouchable assets and yours to keep post-bankruptcy. In California, individuals are allowed to claim their home or a portion of...
What is the Chapter 7 Means Test?

What is the Chapter 7 Means Test?

The Chapter 7 Means Test is a qualifying test that a debtor must pass to be eligible to file a Chapter 7 bankruptcy. Most Chapter 7 debtors pass and are eligible for Chapter 7 relief. Note that there is a similar test for Chapter 13 bankruptcy.  Also note that debtors...
What Does the Automatic Stay Stop?

What Does the Automatic Stay Stop?

Generally speaking, the automatic stay stops foreclosures, repossessions, lawsuits, wage garnishments, and tax levies. It does not stop criminal proceedings or legal actions against you for support (such as child support). Automatic stay:  Under bankruptcy law,...
What is the Bankruptcy Automatic Stay?

What is the Bankruptcy Automatic Stay?

The bankruptcy automatic stay is one of the first protections offered to those who file for bankruptcy. The automatic stay takes effect as soon as the initial paperwork in a bankruptcy case has been filed. It is automatic which means that no other documents have to...
Can a Business File for Chapter 7?

Can a Business File for Chapter 7?

Yes. Businesses can also file for Chapter 7 bankruptcy relief. A corporation does not receive a discharge but the business can shut down, turn over its records to a bankruptcy trustee and not have to deal with creditors, pending lawsuits, or collection actions.  Sort...

What is Chapter 7 Discharge in Bankruptcy?

At the end of a Chapter 7 bankruptcy an individual can receive his or her discharge. A Chapter 7 bankruptcy completes in about 3-4 months. The discharge means that all debts that are considered dischargeable are eliminated or forgiven as of the date of the bankruptcy...