Tag archive for ‘Chapter 7’
Executory contracts and unexpired leases.
by Richard Stokan on 8/31/10 | 0 Comment(s)
The bankruptcy petition includes a section for executory contracts and unexpired leases. I have been asked by several debtors what is an executory contract and unexpired lease? The simple answer is that an executory contract is an agreement between two parties where neither party has fulfilled its obligations under the contract. An unexpired lease is [...]
Can I avoid Chapter 7 liquidation by putting my property in other people’s names before filing?
by Stephen Trezza on 8/27/10 | 0 Comment(s)
You may want to think twice about transferring property to family or friends before filing for bankruptcy. In some cases, transferring property before filing bankruptcy can result in a lawsuit objecting to your discharge. That’s right, the bankruptcy trustee can sue you to recover the property you’ve transferred. If you think you may be filing [...]
How Many Times Can I File for Bankruptcy and Receive a Discharge?
by Drew Broaddus on 8/22/10 | 0 Comment(s)
While you can file bankruptcy as many times as you like, “wiping away” debts and getting a fresh start through the bankruptcy discharge is the primary goal of most debtors. The question therefore is not really “how many times can I file for bankruptcy?” as much as it is how often can I receive a [...]
Should My Corporation File for Chapter 7 Bankruptcy?
by Drew Broaddus on 8/22/10 | 0 Comment(s)
When an individual is considering filing for bankruptcy they often want to know whether their corporation should file as well. Chapter 7 bankruptcy typically will not help a corporation. This is because corporations cannot receive a “fresh start” or discharge of debts. The Bankruptcy Code provides that the “court shall grant the debtor a discharge, unless … the [...]
Qualifying For Chapter 7 With High Income
by Drew Broaddus on 8/18/10 | 0 Comment(s)
Much has been written about the means test since it was enacted as part of the 2005 amendments to the Bankruptcy Code, also known as the BAPCPA. For an excellent explanation of what the means test is, see Lori Patton’s recent contribution at the National Bankruptcy Forum. Despite the fact that it is frequently written about, the [...]
Qualifying For Chapter 7 Bankruptcy: The Means Test Made Simple (Sort of)
by Moderator on 7/26/10 | 0 Comment(s)
Much has been written about the now infamous means test; Congress’ answer to the credit card lobby’s complaints that too many Americans who could afford to pay back some of their debts were allowed to file for chapter 7 bankruptcy. The means test effectively tries to divert some consumers with “above average” income into a [...]
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 [...]
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 [...]
