New Chapter 13 Debt Limits

Written by: leonora  |  Published on: March 9th, 2010

Effective April 1, 2010, Chapter 13 debt limits will go up. This is exciting for those debtors who previously would only be able to file for Chapter 11 (more complicated and expensive) due to their inability to qualify for Chapter 13 because of too much debt. The new limits prescribed in 11 U.S.C. Section 109(e) will go to $360,475 for liquidated, unsecured debt and $1,081,400 for liquidated, secured debt.

Bankruptcy Basics

Written by: Realm  |  Published on: March 9th, 2010

What is bankruptcy? At the most basic level, bankruptcy is a process which was granted by the United States government to individuals and businesses to either wipe out their debt completely or reorganize their debt into a manageable repayment plan. The government recognized that sometimes honest individuals find themselves in a situation that cannot be solved by “tightening the belt” or “budgeting.” Sometimes due to loss of job, divorce, illness or an unforeseen event, people find themselves in debt they cannot manage on their own. Bankruptcy puts in place laws that allow people to start fresh, or restructure without becoming [...]

Chapter 7 Debtors – is your debt primarily consumer or non-consumer and why should you care?

Written by: leonora  |  Published on: January 20th, 2010

This is why you should care and why you want (if possible) to have your debts qualified as primarily non-consumer in Chapter 7: You can avoid having to qualify under the Means Test. This is especially important for debtors whose income exceeds state median income for the size of their household. If your debts are primarily non-consumer, Trustee, Creditors or US Trustee will not be able to request (successfully) dismissal for abuse under 11 U.S.C §707(b).   11 U.S.C §101(8) – defines “consumer debt” to mean “debt incurred by an individual primarily for personal, family or household purpose.” Simple enough? [...]

10 Bankruptcy Terms You Should Know

Written by: leonora  |  Published on: January 18th, 2010

1.      Bankruptcy petition – the bankruptcy documents, approximately 50+ pages, your attorney or you prepare and file with the court. These documents will list your assets, debts, income, expenses and financial history. You will have to sign these documents before they can be filed. 2.      Creditor’s meeting (aka 341(a) examination) – this is the initial (and in Chapter 7 only) meeting you will attend regarding your bankruptcy filing. At this meeting the Trustee will check your driver license and social security, review your documents, swear you in and ask you questions and determine if there are any assets that the trustee [...]

Property value drop and catch-22 with debt limits in a Ch. 13

Written by: leonora  |  Published on: November 5th, 2009

Chapter 13 is this magic bankruptcy chapter that allows you to “strip” the second mortgage if it is fully unsecured and to cram down the mortgage on your second home. It is great, by the time you get out and successfully complete the plan in 3-5 years, you can get rid of a LOT of debt. There is one little catch. You can only do it if you meet the debt limitations. In California that may be harder to do than you think. Under section 109(e) of the bankruptcy code, to be eligible for Chapter 13, debtor may not have [...]

We help people file for bankruptcy, in addition to other legal services. As such, we are designated a debt relief agency by the U.S. Bankruptcy Code.This site is for general informational purposes only. Nothing on this site is legal advice. No attorney-client relationship is created until a written agreement is entered into and signed by you and Leonora Gorelik. Law Offices of Leonora Gorelik 3835 Hayvenhurst Ave. Encino, CA 91436