by Shakeal Masoud, Attorney at Law
When filing bankruptcy you must take 2 courses to get your discharge. As discussed before, the first course is your credit counseling course which you take prior to filing. The second course, however, is the one most debtors forget to complete. This course is called the debtor education course.
If everything goes well at the 341a meeting of creditors, debtors assume its all over. But, it’s not! Once completed, file Form 23 coupled with the certificate of completion to get your discharge.
If you fail to take your second course your bankruptcy case will be closed without discharge. If your case has closed without discharge for failure to take the debtor education course, you do have the option to reopen your bankruptcy case. If your motion to reopen is granted, than you can take the debtor education course and get a discharge. However, there are costs and filing fees involved when reopening your case.
To discuss your debtor education course or to reopen a closed bankruptcy case consult an experienced Los Angeles bankruptcy lawyer at Sky Law Group today!
Tagged as:
Credit Counseling Course,
Debtor Education Course,
Discharge,
Los Angeles Bankruptcy Lawyer,
Sky Law Group
by Shakeal Masoud, Attorney at Law
How long before i can file Chapter 7 bankruptcy again? This has been a very common question this week. If you have filed a Chapter 7 bankruptcy and got your discharge, you must wait 8 years before filing for another Chapter 7 bankruptcy. On the other hand, if you have filed for Chapter 7 bankruptcy and have obtained a discharge and need to file a Chapter 13 bankruptcy you must wait 4 years from the date you filed Chapter 7 bankruptcy.
Many times, I counsel clients and give them financial strategies to implement to prevent another bankruptcy filing. The entire goal of bankruptcy is to give the debtor a fresh clean start to rebuild their credit and their finances. If you have been an avid reader of our posts you will know that such goals require planning and implementation. It won’t happen on its own. Planning is an important part of financial empowerment. Being proactive about your finances, as opposed to reactive, is imperative.
So, if you have filed bankruptcy in the past and meet the time line requirements above, you do have bankruptcy as an option. But, planning correctly and outlining your goals can prevent a bankruptcy in the future.
If you have questions or concerns regarding your Chapter 7 or Chapter 13 bankruptcy, contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today!
Tagged as:
Chapter 13 bankruptcy,
Chapter 7 bankruptcy,
Discharge,
Los Angeles Bankruptcy Lawyer,
Refile,
Sky Law Group
by Shakeal Masoud, Attorney at Law
A chapter 11 bankruptcy, under the U.S. bankruptcy code, is typically used by businesses to reorganize and discharge debts over a period of years. Sometimes, situations arise where an individual debtor can file for Chapter 11 bankruptcy protection. For example, if the secured interest on your personal residence is over the debt limit for a Chapter 13 bankruptcy than the debtor must file Chapter 11 to protect his or her residence if behind on payments. Yet, the majority of debtors will quickly realize that Chapter 11 bankruptcy is extremely complex and expensive. Just the cost alone, makes Chapter 11 a remote option for many individuals.
Businesses, typically, have no problem paying for the costs and fees of a Chapter 11 bankruptcy and are able to restructure and reorganize their debts under this chapter. Unlike a Chapter 7 bankruptcy, which requires a business to liquidate its assets, a Chapter 11 bankruptcy would allow a business to keep most of its assets and continue operations.
The goal for most businesses in restructuring under a Chapter 11 bankruptcy is to regain profitability. Moreover, new contractual relationships are created between a business and most of its creditors which makes the road to profitability much easier.
In sum, for many businesses facing financial distress with their creditors, a Chapter 11 bankruptcy makes sense. For most consumers, however, a Chapter 11 bankruptcy is rarely a viable option.
If you have any questions regarding a Chapter 11 bankruptcy, contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today.
Tagged as:
business debts,
Chapter 11 bankruptcy,
Chapter 13,
Chapter 7,
Creditors,
Los Angeles Bankruptcy Lawyer,
reorganization,
Sky Law Group
by Shakeal Masoud, Attorney at Law
California has “opted out” of the bankruptcy federal exemptions. Instead, residents of California can choose between two different sets of exemptions. Those exemptions are under sections 703 or 704 of the California Code of Civil Procedure. You must choose one section and can not use both or combine the two sections.
Often debtors mistakenly believe that if they have equity in their property than bankruptcy is not an option. However, both sections 703 and 704 of the California Code of Civil Procedure allow a debtor to exempt equity up to a certain limit. Typically, if the client has more equity in their property and less assets a 704 exemption makes more sense than a 703 exemption.
The majority of bankruptcy cases are deemed “no asset” cases, meaning the assets listed in the bankruptcy petiton are exempt. Choosing the correct section of exemptions is critical because if the value of an asset exceeds the exemption amount than the trustee will go after that asset.
If you have any questions regarding your bankruptcy exemptions contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today.
Tagged as:
703,
704,
California Code of Civil Procedure,
California Exemptions,
Los Angels bankruptcy,
Sky Law Group
by Shakeal Masoud, Attorney at Law
Many people mistakenly believe that income taxes can not be discharged in a bankruptcy. But the bankruptcy code allows a debtor to eliminate his or her income tax debts if the requisite elements have been satisfied.
1) There must not be willful evasion or fraud.
2) Tax debt must be at least three years old.
3) Tax return was filed at least two years prior to your bankruptcy filing.
4) The tax debt must not have been assessed within 240 days prior to your bankruptcy filing.
By meeting these requirements, you are able to discharge your income tax obligations and the IRS will not be able to freeze your bank accounts or garnish your wages. However, keep in mind that a bankruptcy will not eliminate a federal tax lien once it has attached to your assets.
Depending on your unique situation, a Chapter 7 bankruptcy or a Chapter 13 bankruptcy can be used to discharge your income taxes.
Consult with an experienced Chapter 7 or Chapter 13 Los Angeles bankruptcy lawyer at Sky Law Group today!
Tagged as:
Chapter 13 bankruptcy,
Chapter 7 bankruptcy,
Income Taxes,
IRS,
Los Angeles Bankruptcy Lawyer,
Sky Law Group
by Shakeal Masoud, Attorney at Law
Most consumers file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Under certain situations, a Chapter 11 might be more plausible. On the other hand, a Chapter 12 bankruptcy is an option for family farmers and family fisherman with regular income.
A Chapter 12 bankruptcy is similar to a Chapter 13 bankruptcy and allows one to reorganize their debts over a period of time. If you are a farmer, you will be able to keep your land and equipment while formulating a repayment plan with creditors. Further, a Chapter 12 bankruptcy has a higher debt ceiling which is advantageous for farmers as opposed to a Chapter 13 bankruptcy.
If you have questions regarding a Chapter 12 bankruptcy, contact an experienced Los Angeles bankruptcy lawyer at Sky Law Group today.
Tagged as:
Chapter 12 Bankruptcy,
Family Farmers,
Family Fisherman,
Los Angeles Bankruptcy Lawyer,
Repayment Plan,
Sky Law Group
When filing bankruptcy you must take 2 courses to get your discharge. As discussed before, the first course is your credit counseling course which you take prior to filing. The second course, however, is the one most debtors forget to complete. This course is called the debtor education course.
