Articles

In this article, you can discover… What debt settlement is, and how it’s marketed. Whether debt settlement halts wage garnishment. Why Chapter 13 Bankruptcy offers unique benefits over debt settlement. What Exactly Is Debt Settlement, And How Is It Marketed To Orange County Residents? A company that does this sort of thing will tell you, “We’ll work things out with your creditors. We’ll negotiate with them so that you can come into a program that’s manageable. You’ll be able to pay your debts, perhaps at a reduced amount over time, and this will take care of all of your problems.”… Read More →

In this article, you can discover… How a “material change” in income is understood by trustees. What happens if your disposable income decreases during bankruptcy. How an attorney can help you modify payment plans as your resources change. What Qualifies As A “Material Change” In Income? Now we’re in a vague realm. What is “material”? There aren’t any posted standards and there’s no case law that states “this amount is material and this amount is nominal.” However, I do remember attending a continuing legal education program conducted by the Chapter 13 Trustee in Orange County, a nice guy named Amran… Read More →

In this article, you can discover… If annual bonuses are treated differently than base salary increases in Chapter 13. How to account for large or regular bonuses during bankruptcy. Whether it’s possible to shield or protect a bonus from bankruptcy. Are Annual Bonuses Treated Differently Than Base Salary Increases? Any annual bonuses will be reflected on your income tax return. A Trustee may assert that you must share an annual bonus with your creditors unless you’re already in a 100% repayment plan. It may be that by the time the Trustee finds out about the annual bonus, you’ve already spent… Read More →

In this article, you can discover… Whether you are required to report a raise to a bankruptcy trustee. If a raise may increase your monthly payment amounts. What to do if your raise is temporary or performance-based. Am I Required To Report A Raise To The Bankruptcy Trustee? That’s an interesting question because things are a little vague here. In theory, yes, you should keep the Chapter 13 Trustee appraised of what is going on. But remember that each year that you’re in bankruptcy, you are required to send copies of your tax returns to the trustee no later than… Read More →

In this article, you can discover… How bankruptcy courts define “self-employed” in California. How fluctuating monthly incomes are handled by the Bankruptcy Court. Ways to help you manage bankruptcy payments if you have irregular or fluctuating income. What Does It Mean To Be “Self-Employed” In The Eyes Of The Bankruptcy Court? Let’s contrast two things. You are working for ABC Industries. You get W-2 income. You’re getting a paycheck each month or every two weeks, or however frequently you’re paid. You are not self-employed. You are employed by an employer. Now, let’s say you have a business and you’re selling… Read More →

In this article, you can discover… How Chapter 13 can help landlords in debt retain their properties. Whether you can keep collecting rent during Chapter 13 bankruptcy. How your rental income may impact a repayment plan. How Can Chapter 13 Help Me Catch Up On Mortgage Arrears Without Losing My Rental Property? In Chapter 13, one of the provisions that we have in the Bankruptcy Code is that you can use the Chapter 13 plan to cure a default. If you’ve fallen behind on mortgage payments, what we can do is propound a Chapter 13 plan of reorganization and put… Read More →

In this article, you can discover… Whether you can file for bankruptcy if your income fluctuates. Whether seasonal workers are eligible for bankruptcy in California. What happens should your income increase significantly during bankruptcy. Can I File For Chapter 13 Bankruptcy If My Income Fluctuates? The Bankruptcy Code in section 109(e) says that Chapter 13 is available only for someone with a regular income, and then it lists two debt ceilings – one for secured debt, the other for unsecured debt – to determine eligibility for Chapter 13 protection. What do we mean by regular income? Does it have to… Read More →

Should I Notify My Bankruptcy Attorney In Los Angeles If I Plan To File For Divorce? If you’re considering divorce or any major life change that could affect your ability to make Chapter 13 plan payments, you should notify your bankruptcy attorney as soon as possible. Divorce can directly affect your bankruptcy case in several critical ways, including: Asset Division: The automatic stay in bankruptcy prevents the division of property in the bankruptcy estate without court approval. Case Strategy: You and your spouse will need to decide whether to continue the Chapter 13 case together or request the court to… Read More →

I’m considering filing for Chapter 13 protection. What happens if things change while my case is pending? Do I have any options? Yes. The discussion below discusses the options you have available to deal with a change in circumstances while you are in your Chapter 13. If You Are Interested In Filing A Chapter 13, We Can Help. If you are already in a Chapter 13, please contact your current counsel if you are facing postpetition problems. We no longer do repair work. What Happens If I Lose My Job While In Chapter 13 Bankruptcy In Los Angeles? If you… Read More →

In this article, you will learn … Why filing for bankruptcy is wiser than trying to negotiate with creditors. Financial moves to avoid before filing for bankruptcy. Whether or not it’s best to wait before you file for Chapter 13. Why Should (Or Shouldn’t) I Try To Negotiate With Creditors Before Filing Chapter 13 Bankruptcy? If you try to negotiate with a creditor prior to filing for Chapter 13 bankruptcy, the Chapter 13 plan will supersede any agreement you reach. Your creditor will assume that you conducted the prior negotiations in bad faith. And when it files its proof of… Read More →