Archive for December, 2011
December 24, 2011
What Assets Do You Need to Disclose To the Bankruptcy Court When Filing For Bankruptcy
What Assets Do You Need to Disclose To the Bankruptcy Court When Filing For Bankruptcy?
The short answer is “All”! The bankruptcy court must know about all your assets including those assets that are located in other countries (i.e., Mexico, Europe, Middle East, South America). They must know what assets you have in order to determine what can be sold/liquidated by the bankruptcy trustee and distributed to your creditors.
Sometimes, debtors do not realize that they have certain assets. Generally, people think of assets as homes, cars and bank accounts. However, it extends even further than that. If you are a real estate broker, the commission you will potentially earn is considered an asset and is subject to the bankruptcy trustee. Existing lawsuits and potential lawsuits are also considered assets. Even if you potentially are able to inherit assets after a family passes away within 6 months of filing your bankruptcy is considered an asset.
That is why you must be careful when you file for bankruptcy – especially a Chapter 7 bankruptcy. When you file for bankruptcy, your bankruptcy attorney will tell you that you are only entitled to keep approximately $23,000 to $26,000 in assets without having the bankruptcy court taking it and selling/liquidating it. Anything above and beyond this amount is up for grabs by the bankruptcy trustee. That is why you must be extremely cautious when you file for bankruptcy. We have seen homowners file for bankruptcy on their know even though they have a substnatial amount of equity in their home. Homeowners believe that the courts cannot touch their personal residence. They are wrong! The bankruptcy trustee is entitled to sell it, distribute the proceeds to your creditors and the remaining balance (after attorneys fees and trustees fees) will be distributed to you.
If you have any questions on the potential consequences of filing for bankruptcy, please feel free to one of our bankruptcy attorneys. They will be glad to help you decide whether bankruptcy is the right decision for you.
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December 17, 2011
Making sure your bankruptcy filing is complete
I have had situations where clients have filed for bankruptcy but have failed to complete the process. Failing to complete the process can be expensive. I will give you an example. There are 2 courses that you must take in order to receive a discharge in bankruptcy. The first course is a credit counseling course. Everyone must take this course in order to file for bankruptcy. The second course is a personal financial management course. You can only take this second course after you have filed for bankruptcy. If you fail to take this second course, the bankruptcy court will not give you a warning and they will dismiss your case. We try to remind our clients to take the second course immediately. However certain individuals tend to procrastinate or just merely forget. If you have failed to take this course, you’ll be required to pay $240 in addition to attorneys fees to reopen the case and file the personal financial management course certificate. These courses are fairly affordable. It ranges from $15 to $45. Whether you hire the Law Offices of Alon Darvish or another bankruptcy lawyer, please do yourself a favor and take these courses immediately.
Posted in Bankruptcy, Chapter 7 Bankruptcy / Chapter 13 Bankruptcy | No Comments »
December 2, 2011
Discharging Debt Based On Fraud In Bankruptcy
Some may think that filing for bankruptcy will eliminate debts based on fraud. In actuality, It may be true, but only if the creditor fails to file an adversary proceeding in bankruptcy court within 60 days from the initial meeting of creditors. Some creditors may not know too much about bankruptcy law and may not know of the 60 day rule. If they fail to file the adversary petition (basically, a lawsuit filed within the bankruptcy court), the lose their rights and the debt shall be discharged in bankruptcy. However, sometimes, creditors will file an adversary proceeding in bankruptcy court to protect their interest.
If you have a lawsuit filed against you in civil court and the allegations are based on fraud, you should be aware that this particular debt may not be discharged in bankruptcy even though all your other debt may be discharged. If the creditor files an adversary proceeding, it is as if they filed filed a lawsuit against you. It is your responsibility to defend this lawsuit. Otherwise, you will continue to be held responsible for it even after bankruptcy.
The best person to ask whether you should file for bankruptcy is a bankruptcy attorney. By speaking to Mr. Darvish, he can guide you and determine whether it is worth fighting such an adversary claim in bankruptcy court. You may reach him personally at (310)205-5529 or visit his website at www.BankruptcyLALaw.com
Tags: Bankruptcy, Fraud
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Liquidation of Assets in a Chapter 7 Bankruptcy
Protect Your Assets When Filing For Chapter 7 Bankruptcy
When filing for a Chapter7 bankruptcy, you must be careful in determining whether filing for bankruptcy is the right decision. Otherwise, it can be devastating. Should you have equity in your home, equity in your vehicles, or cash in your bank accounts, you must make sure to determine whether these assets will be considered exempt in bankruptcy – otherwise, a bankruptcy trustee will sell these assets and pay off creditors.
There is a misbelieve that everyone is entitled to one vehicle in bankruptcy, or they are entitled to keep their home in bankruptcy. To a certain degree, it is true. However, only if there is very little equity in these assets. The whole idea of filing for bankruptcy is to provide you with a fresh start – that means, to eliminate your debt and begin a new life. It does not mean “keep all your assets and eliminate your debt”.
There is a reason why I wrote a blog on this topic. Because many individuals that wish to file for bankruptcy do actually have assets that they cannot exempt and they must be aware of this situation before filing for bankruptcy because the drawback to filing for Chapter 7 bankruptcy is that you cannot turn back. Once you file, you cannot ask the bankruptcy court to dismiss your case. The bankruptcy trustee will move forward in selling assets to pay off creditors.
To determine whether you can file file for bankruptcy and protect your assets,it is best to speak to a Los Angeles Bankruptcy Attorney. Contact our office at (310)205-5529 to discuss your situation if further detail or visit our website at www.BankruptcyLALaw.com
Tags: Bankruptcy Attorney, bankruptcy lawyers, file for bankruptcy
Posted in Chapter 7 Bankruptcy, Los Angeles Bankruptcy Attorney and Bankruptcy Lawyer | No Comments »
