Category Archives: Bankruptcy
Pros and Cons of Debt Settlement Instead of Bankruptcy
Consumers who are overwhelmed by debt and cannot make their payments may choose between filing bankruptcy or settling and consolidating their debts privately. Each of these measures has advantages and disadvantages that should be carefully considered before deciding which path to take. Debt settlement and consolidation require negotiation with creditors. This can be done directly […]
Claiming the Homestead Exemption in a California Bankruptcy
When a debtor files a Chapter 7 petition, the U.S. bankruptcy trustee is authorized to sell certain of the debtor’s assets to pay the creditors. However, much if not all of those assets can be shielded from liquidation through the use of exemptions allowed by federal or state law. One of the important exemptions for […]
U.S. Supreme Court Rules Another Person’s Fraud Can Bar a Debt Discharge
Bankruptcy law has long barred the discharge of debts when the debtor has committed fraud. The rationale is that people should not be rewarded for the negative consequences of their unlawful actions. Now, the U.S. Supreme Court has settled the question of whether the fraud exception can apply when someone other than the debtor is […]
How Long Does it Take to Restore Your Credit After Bankruptcy?
Some people would rather struggle with debt — perhaps for years — because they believe that filing for bankruptcy will destroy their credit rating. While it is true that bankruptcy has an initial negative impact on your ability to get credit, the long-term effects of bankruptcy are beneficial. Bankruptcy is in fact designed to give […]
What Does it Mean if Your Bankruptcy Filing is Dismissed with a Bar?
When you file for bankruptcy, there are specific rules that you need to follow in order to have your debts discharged. Failing to follow the rules or engaging in certain acts of misconduct during bankruptcy can lead the court to dismiss your case, leaving you burdened with debt again. Bankruptcies in California can be dismissed […]
Debts That Cannot be Discharged in Bankruptcy
The purpose of bankruptcy is to give people a method for eliminating most of their debts and to get a fresh financial start. When you successfully complete your Chapter 7 or 13 case, you are freed of all debts that are eligible for discharge, such as medical bills, credit card debts and personal loans. Some […]
Adversary Proceedings Regarding Discharge of Debts
The major goal of a bankruptcy is the discharge of all or some of your debts, thereby giving you a fresh financial start. However, there may be grounds for a creditor or the bankruptcy trustee to object to the discharge of certain debts. This sometimes results in an adversary proceeding, which is a case within […]
How Often Can You File for Bankruptcy?
Often, successful completion of a single bankruptcy case is enough to put a debtor back into solvency, but there may be further financial crises in store that require additional filings. There is no limit to the number of times you may file for bankruptcy, but there are limits on how often you can do it. […]
The Effects of Bankruptcy on Your Tax Obligations
While tax obligations generally cannot be avoided by filing for bankruptcy, there are certain exceptions. Taxes may be dischargeable depending upon the nature of the tax debt and the debtor’s actions prior to filing bankruptcy. There are two prerequisites for seeking discharge of taxes in bankruptcy. First, the obligations must be for federal, state or […]
Avoiding Conduct That Could Amount to Bankruptcy Fraud
Fraud occurs when a person makes a material misstatement of fact with the intent of deceiving someone else for personal gain. Fraud committed by a debtor can derail a bankruptcy case and have other disastrous consequences. There are two general types of bankruptcy fraud: pre-filing fraud and fraud committed while the bankruptcy case is in […]
