Ask Sacramento Bankruptcy Attorney – What is the Means Test?

The means test is used to determine who is eligible for Chapter 7 Bankruptcy.  It applies to people whose debt is primarily consumer debt.  If you have more than 50% business debt or tax debt, the means test does not apply to you.  There are other exceptions to the means test like majority of the […]

Ask Sacramento Bankruptcy Attorney – Why is Reaffirmation Agreement Necessary?

The major change in bankruptcy law in 2005 called BAPCPA eliminated the choice to "retain and pay" your car loan when filing bankruptcy.  This means that car lender can repossess your car even though you are current on your car payment just because you filed for bankruptcy.  However, the reaffirmation agreement preserves the car contract […]

Ask Sacramento Bankruptcy Attorney – Bankruptcy Discharge vs. Dismissal

There is some confusion from clients about bankruptcy discharge and bankruptcy dismissal.  Some clients use those terms interchangeably.  However, the two terms mean very different things. A bankruptcy discharge is desirable at the end of a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy case.  It means that you successfully completed your bankruptcy case and eliminates dischargeable, […]

Timing of Bankruptcy Discharge & Multiple Bankruptcy Filings – When to File?

Multiple Bankruptcy Filings You already filed for bankruptcy but now you find that you need to file again.  How long should you wait to file another bankruptcy to qualify for bankruptcy discharge? Previously Filed Chapter 7 Bankruptcy Case: If you received a Chapter 7 Bankruptcy discharge in a previous case, you must wait 4 years before filing a new […]

Tax Penalties and Chapter 7 and 13 Bankruptcy

When you have tax debt, tax penalties will follow.  If you do not pay your tax debt, tax penalties can grow to an unmanageable amount. Chapter 13 Bankruptcy discharges all unsecured tax penalties whether it is for old or new tax debt. Chapter 7 Bankruptcy discharges some tax penalties.  Chapter 7 Bankruptcy discharges penalties only […]

Tax Refund and Bankruptcy

It is a myth that your tax refund is not considered an asset in bankruptcy until you file your tax return.  Chapter 7 Bankruptcy Trustee can take your tax refund that has accrued up to the date of filing your bankruptcy petition if your tax refund is an nonexempt asset.  Nonexempt assets are assets that is not […]