Category archive for ‘Chapter 7 Bankruptcy’ 
Presumption of Abuse Dismissal – Failing the Means Test
by Richard Stokan on 7/26/10 | 0 Comment(s)
The quickest way to have your Chapter 7 bankruptcy petition dismissed is to fail the means test. A debtor who fails the means test raises a rebuttable presumption of abuse. In the event a presumption of abuse exists, 11 U.S.C. § 707(b)(2) authorizes the court, US trustee or any part in interest to file a motion [...]
Bankruptcy and Taxes
by Richard Stokan on 7/19/10 | 0 Comment(s)
As a general rule, you cannot discharge back taxes in bankruptcy. Certain income taxes, however, can be discharged under limited circumstances. When filing for Chapter 7 bankruptcy protection, taxes can be discharged under the following circumstances: (1) the taxes are limited to taxes on income. Taxes levied for fraud, payroll taxes or sales taxes do [...]
Are You Judgment Proof?
by Jacob on 7/17/10 | 0 Comment(s)
Bankruptcy filings increased by 14% during the first half of this year. And we all know the reasons why people are filing. Jobs are hard to find, home values are plummeting, and fear and uncertainty are preventing business owners from expanding their business. So when people find themselves down and out, it is quite normal [...]
I think that my Debt Collector is Harassing me. What can I do?
by Stephen Trezza on 7/13/10 | 0 Comment(s)
In case you have filed for bankruptcy under any chapter, you are protected by the “automatic stay” provision which stops creditors from forms of collection action, including the continuation of a court case against you. Think of the “automatic stay” as a firewall that is supposed to stop debt collectors from trying to collect debt [...]
Credit Scores and Bankruptcy Bump
by John C. Colwell on 7/13/10 | 0 Comment(s)
Today, the AP is reporting a general downturn in the all important FICO score, which score is used primarily to determine loan eligibility. http://www.google.com/hostednews/ap/article/ALeqM5g74qg6iCDzFlCHhjsiBGFIHAiJPQD9GT9T580 Many, if not all of our clients will, at some point, consider the impact an impending bankruptcy will have upon this score. Oddly enough, credit scores after bankruptcy, notwithstanding this report, [...]
Bankruptcy Can Be Involuntary
by Richard Stokan on 7/12/10 | 0 Comment(s)
Although most people are familiar with voluntary bankruptcy, a debtor can be forced into an involuntary bankruptcy. Under certain circumstances, creditors can initiate a Chapter 7 or Chapter 11 bankruptcy case by filing an involuntary petition against the debtor. Before creditors can initiate an involuntary bankruptcy, a debtor must have 12 or more creditors, three [...]
Student Loans, Co-signers and Undue Hardship
by Richard Stokan on 7/09/10 | Comments Off Comment(s)
As a general rule, student loans are “non-dischargeable” debt, which means the debt will remain after a Chapter 7 or Chapter 13 bankruptcy. This applies to both the original debtor and any co-signor. If you cosign on a student loan, filing for bankruptcy protection will not eliminate the debt. As with any debt involving a [...]
Discharging Back Taxes in Chapter 7
by Jacob on 7/09/10 | 0 Comment(s)
A lot of my clients find themselves owing back taxes to the IRS. And when I tell my clients that they might be able to discharge their tax debt if they file for chapter 7 bankruptcy, they almost always look at me like I am crazy. But it is true. In some cases, you can [...]
What Type of Debts Will Filing For Bankruptcy Get Rid Of?
by Moderator on 7/02/10 | 0 Comment(s)
Perhaps one of the biggest (and most logical) questions that those faced with bankruptcy ask is what type of debts will filing for bankruptcy get rid of? As a general principle, filing for bankruptcy is an effective way of eliminating unsecured debt such as credit card debt and medical bills. In addition, if you file [...]
