Tag archive for ‘bankruptcy exemptions’
Non-exempt Assets and Claims of Creditors
by Drew Broaddus on 8/20/10 | 0 Comment(s)
Under the bankruptcy code, non-exempt property is liquidated by the trustee in a Chapter 7 case, in order to provide a fund to pay claims of creditors. In practice, however, trustees sometimes elect not to administer (that is, collect and sell) assets that have little non exempt value because the costs of doing so will consume the dollars [...]
Will Federal or State Law Better Protect My Property?
by Moderator on 8/17/10 | 0 Comment(s)
Most can agree that as a matter of public policy, it is unfair to allow a creditor to take everything from a borrower in satisfaction of debt. As a result, all states as well as the federal government have enacted laws that set rules as to what creditors can and cannot take from borrowers in [...]
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 [...]
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 [...]
No Quick Fixes to Protect Assets
by Richard Stokan on 6/14/10 | 0 Comment(s)
One of the most common questions asked of a bankruptcy attorney is “what if I [fill in the blank] with this asset? Will I be able to keep it then?” As a general rule, when preparing to file for bankruptcy protection or initiating any legal proceeding for that matter, if it does not pass the [...]
State vs. Federal Exemptions: What is the Best Way to Protect My House If I File Bankruptcy?
by Drew Broaddus on 5/14/10 | 0 Comment(s)
In 11 U.S.C. § 522(b), Congress provided that a state may choose the exemption scheme available to any debtor filing for bankruptcy relief within its borders. For example, debtors filing bankruptcy petitions in Ohio and Tennessee are not eligible to claim the federal exemptions enumerated in § 522(d) because the state law applicable to those [...]
Educational Savings Account § 529
by Steven Striffler on 5/03/10 | 0 Comment(s)
One pitfall for debtors contemplating bankruptcy is
Property Excluded from a Bankruptcy Estate
by Richard Stokan on 3/22/10 | 1 Comment(s)
Once a bankruptcy petition has been filed, a bankruptcy estate is created which includes all assets of the debtor. The bankruptcy trustee is then required to collect non-exempt property and reduce it to cash to be divided among creditors. Although the bankruptcy code broadly defines “property of the estate”, not all property in the possession [...]
Where to File a Chapter 7 Bankruptcy
by Richard Stokan on 3/08/10 | 0 Comment(s)
A bankruptcy case must be filed in the federal district where the debtor has maintained his residence or principal place of business “for the one hundred and eighty days immediately preceding such commencement, or for a longer portion of such one-hundred-and-eighty-day period.” 28 USC 1408. In laymen’s terms, the case must be filed in the bankruptcy [...]
Avoiding Judicial Liens
by Richard Stokan on 11/30/09 | 0 Comment(s)
In an effort to obtain a fresh start with bankruptcy, the bankruptcy code permits a debtor to avoid certain liens on his or her assets. Liens tied to property, ie are secured, cannot be avoided because a discharge only applies to the personal liability of a debtor. However, judicial liens, that attach to an asset [...]
