April, 2012

Beneficiaries of Revocable Living Trusts Facing Bankruptcy

So you are a beneficiary of a recovable living trust.   You need to file bankruptcy.   Can you?   Well, it depends.  Generally, as long as you are not the settlor and the settlor lives through your bankruptcy, your beneficiary interest is contingent, meaning it doesn’t come into your bankruptcy as property of the estate.   That’s because if the settlor is still alive, that...

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Can I Keep my Car When I File Bankruptcy?

When you file a bankruptcy, you want to keep your basic assets including your car.   When you file chapter 7 or 13, you can generally keep your car assuming you are able to utilize the federal or California based exemptions applicable to your case.   The specifics of how exemptions work or are applied on a case to case basis can be complex.   Thus it is important for you to consult an...

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Is Your Business An Asset In Your Personal Bankruptcy Case?

Oftentimes, I get calls from individuals asking why their S Corp, LLC, partnership, C Corp, or other business entity must be accounted for as an asset in their personal bankruptcy filing.  Well, it’s actually quite simple.   The business owner has an interest in the business as a shareholder, member, or partner of the business entity. Sure you might not even be benefitting from direct...

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Is Bankruptcy An Option When Facing a Lawsuit?

When you get served with a summons and complaint, that can cause anyone anxiety.   However what can you do about it?   Well, you can defend the lawsuit or try and settle the matter.  If that happens, great! – but if you lose, you have a judgment against you.   What does that mean?  Well, if you have a judgment against you, your wages can be garnished if you earn a paycheck, your...

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Has the Absolute Priority Rule Died For Individual Chapter 11 Cases?

People typically think “LA Dodgers Bankruptcy” or “Lehman Brothers” or “General Motors Bankruptcy” when hearing the term Chapter 11 bankruptcy. But Chapter 11 bankruptcy also applies to people, individuals who are sole proprietors or wage earners with either secured debt or unsecured debt above and beyond what is allowable in a chapter 13 context. For such...

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How To Defeat the Creditor’s Motion to Extend Time To Object to Bankruptcy Discharge

Oftentimes in bankrutpcy , creditors pursue the dischargeability of claims against the bankrupt debtor.   In such cases, these creditors believe debtors have engaged in a pattern of fraud.   In other cases, creditors are unsure whether fraud exists, but the creditor is unwilling to give up its claim via a bankruptcy discharge.  Thus, such creditors may ask the court for an extension of...

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