Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – What Debts are Not Discharged in Chapter 7 Bankruptcy?
When considering whether to file a Chapter 7 Bankruptcy, one of the questions that must be answered is will the debt be discharged in a Chapter 7 Bankruptcy? Some debts pass through Chapter 7 Bankruptcy. For example, secured debt like a mortgage or auto loan still attached to the collateral. If you are in default after […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – Certain Debts that Survive Chapter 13 Bankruptcy Discharge
There are certain debts that Chapter 13 Bankruptcy cannot discharge. I will cover the most common debts below: 1. Student Loans. You cannot discharge student loan debt without showing undue hardship whether you filed a Chapter 13 Bankruptcy or Chapter 7 Bankruptcy. 2. Recent Taxes. If you owe income tax to the Internal Revenue or […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – Chapter 7 Bankruptcy Means Test Limited to Primarily Consumer Debts
The Means Test is used to determine eligibility for Chapter 7 Bankruptcy. However, if your debt is not "primarily consumer debts", then you can bypass the Means Test because you automatically pass the Means Test. What is considered "Consumer Debt"? Under the statute, Consumer Debt is defined as debt incurred by an individual "primarily for […]
Can New Debt or Loan be Incurred During Chapter 13 Bankruptcy?
It depends on what kind of debt. The most common debt or loan that Chapter 13 Bankruptcy filers will incur is an car loan to replace their car. Depending on the local rules of your court, the procedures for getting a new loan for a car will require court approval and trustee approval. This is […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA – Is Co-Signer Liable for Debt if I File Chapter 13 Bankruptcy?
If you have relatives, friends, or someone who co-signed or guaranteed a consumer debt for you, the "Automatic Stay" extends to codebtors of your consumer debts upon Chapter 13 Bankruptcy filing. Creditors usually require a co-signer or guarantor for a debt because the primary borrower does not have sufficient income or assets to get approval on her own. […]
Ask Bankruptcy Attorney in Sacramento, Stockton, Fairfield CA – Don’ts of Filing Chapter 7 or 13 Bankruptcy
If you are contemplating about filing for Chapter 13 or 7 Bankruptcy in Sacramento CA or Modesto CA Bankruptcy Court, you should NOT DO the following: 1. Don’t transfer any properties out of your name. The bankruptcy trustee will consider such transfer as "fraudulent". 2. Don’t charge anything to your credit cards before filing. (It may be […]
Is IRS Offset of Tax Refund a Violation of Automatic Stay?
Here is the issue: Debtor files for bankruptcy on February 1, 2016 but expects a tax refund for tax year ending in December 31, 2015 from the IRS. Debtor owes tax to the Internal Revenue Services for prior tax years. Can the IRS offset the tax refund for 2015 for the tax debts for prior […]
Ask Sacramento Bankruptcy Attorney – What happens to Inheritance during and after Bankruptcy?
When a debtor becomes entitled (even though you have not received it) to an inheritance within 6 months of filing Chapter 7 Bankruptcy, the inheritance becomes a part of the bankruptcy estate. If you do not have enough exemption to protect all of the inherited assets, the non-exempt portion of the inherited assets will be used […]
IRS Scam Phone Calls about Tax Debt
You should be warned that there are thieves who will pose as IRS agent to steal your personal information and money. You should be suspicious of any callers who ask for personal information or money or who use threats to get your personal information or money. They may sound convincing by altering the caller ID to look […]
Clawbacks of College Tuition Payments in Sacramento Bankruptcy Court
Recently, there is a dispute between bankruptcy trustees and colleges over the application of the clawback provision of the Bankruptcy Code on college tuition paid by insolvent parents for the benefits of their children within several years of filing for bankruptcy. The Bankruptcy code allows the bankruptcy trustee to recover transfer of assets or money […]