Discharge in Bankruptcy

A bankruptcy discharge is a fundamental concept in bankruptcy law. A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. If problems or disagreements arise with other parties of interest in a bankruptcy case, a debtor may face a dischargeability claim over one or more particular debts under section 523 of the bankruptcy code. Even more seriously, a debtor may also face a denial of discharge claim over the entire bankruptcy case under section 727 of the bankrutpcy code.

JCH LAW FIRM Pleased To Announce Attorney Jeff Hsu is Now a California Board Certified Bankruptcy Specialist

JCH LAW FIRM is pleased to announce that attorney Jeffrey Hsu is now a California State Bar Board Certified Legal Specialist in Bankruptcy Law as of August 1, 2014. We look forward to continuing to serve the Southern California community at large, and we hope our current and future clients feel even more confident that JCH LAW FIRM is right for their needs.      

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It’s Easier to Get Struck By Lightning Than Discharge A Student Loan Obligation in Bankruptcy.

Check out 11 USC Section 523(a)(8) of the Bankruptcy Code.  In essence, it says that student loans cannot be discharged, except in situations of “undue hardship” on the debtor or debtor’s dependents.  That’s easy to say but hard to prove.  Why does 523(a)(8) even exist to except student loans from being discharged in bankruptcy?  Well,  Congress didn’t want...

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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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Explaining a Bankruptcy Fraudulent Transfer by California Bankruptcy Attorney Jeffrey Hsu of JCH Law Firm

What’s a bankruptcy fraudulent transfer?  Well, it happens when a debtor conceals or transfers away property to avoid claims of executing creditors for purposes of bankruptcy.  In bankruptcy, there are 2 types of fraudulent transfer laws: state based under Section 544 and federally based under 548 of the Bankruptcy Code.  The state law version has a longer statute of limitations...

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Explaining Chapter 20 Bankruptcy in California

Chapter 20 Bankruptcy in California is the concept of a debtor filing a chapter 7 case and then subsequently filing a chapter 13 case.  Afterall 7 + 13 = 20.   So why does this matter?   Well, when one files a chapter 7 case, one receives a chapter 7 discharge.  Generally speaking, if one files a subsequent chapter 13 case, one cannot receive a discharge, at least not for a chapter 13 case...

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Cancellation of Debt Income, Form 1099-C, & How it Relates to Bankruptcy

When a creditor gives up collecting on a debt that is in default status, the creditor may decide to charge-off that debt.  A charge-off occurs when a creditor attempts to get a tax break from the IRS.  The creditor must send the debtor an IRS form “1099-C Cancellation of Debt” to the debtor and the IRS.  While the creditor gets a tax break, the debtor must absorb the COD...

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If You Are Considering a California Bankruptcy Discharge: Be Wary Of Incurring New Debt Before Filing

Oftentimes, as an attorney, I am asked by bankruptcy clients whether it really matters if clients incur new debt by continuing to rely and use credit.  The short answer is YES, IT MATTERS.  The California bankruptcy discharge under federal bankruptcy law has several pitfalls to the continued use of credit including a presumption of fraud for charging luxury goods within 90 days before filing...

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California Bankruptcy Fraud: Section 727 Denial of Bankruptcy Discharge – Why Debtors Must Be Honest

If you are concerned about the ramifications of California bankruptcy fraud, this article is for you. Not everyone who files bankruptcy is entitled to a California bankruptcy discharge.   For those debtors who are dishonest, or inexplicably destroyed or lost records and documents necessary for complete review of the debtor’s case, a 727 claim may be brought under the Bankrtupcy Code against...

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