The means test was created to ensure that consumers who have the financial ability to repay some portion of their unsecured debt, do so in a Chapter 13 bankruptcy case. Just about every form of money received or paid on behalf of a prospective bankruptcy filer is included other than Social Security. Thus, perhaps a better way to answer this question is to establish what income is, in fact, included in the means test. Section 101(10A)...
Federal bankruptcy law changed significantly in 2005 with the enactment of Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). The Act was a result of a billion-dollar lobbying effort by the banks and credit card companies. It was aimed at reducing the number of bankruptcy filings in the country or, in the alternative, forcing consumers who would normally be eligible for a Chapter 7 bankruptcy filing, to file a Chapter 13 case instead. One of the...
Alberto Montefalcon has the experience and knowledge to help any person properly consider his or her options when overwhelmed with financial difficulties as a result of unpaid debt. One possible viable option for individuals who are delinquent on debt payments is filing a Chapter 7 bankruptcy case, which allows a person to discharge the obligation to pay most of their debts. Today's blog provides some basic information about one of the documents which every Chapter 7...
A "bankruptcy estate" is an artificial entity created by federal law consisting of a bankruptcy debtor's legal and equitable interests as of the commencement of the bankruptcy case. The property of a bankruptcy estate is liquidated to repay creditors in a Chapter 7 case. § 541 of the Bankruptcy Code lists property that is included in and excluded from a debtor's bankruptcy estate. Various provisions in § 541 list property that is excluded from the bankruptcy...
This article is the continuation of a blog that summarizes the property that is included in a debtor's bankruptcy estate. The first part addressed property acquired in various ways such as after the filing of the bankruptcy case. Part two described marital interests in property. This article briefly discusses federal statutes that specifically provide for the inclusion and exclusion of certain property in a debtor's bankruptcy estate. 541 of Title 11 provides that any...
This article is the continuation of a blog that summarizes the property that is included in a debtor's bankruptcy estate. The first part addressed property acquired in various ways such as after the filing of the bankruptcy case. Part two describes marital interests in property. By taking exemptions, Debtors prevent the liquidation of their exempt property by the trustee. As this is an important, if not vital, analysis since it determines what property a debtor may...
Bankruptcy often provides a necessary fresh start for individuals experiencing financial problems and difficulty repaying debts. An experienced and qualified bankruptcy attorney may help reduce stress and uncertainty by providing valuable assistance throughout the entire bankruptcy process. After it is explained that the property in their bankruptcy estate may be used to repay unsecured creditors, clients typically ask: "What property is included in my bankruptcy estate? Federal law defines a bankruptcy estate with the provision that...
Bankruptcy does have an effect on a person's financial state. Despite this, filing bankruptcy often provides a necessary fresh start for individuals experiencing financial problems and difficulty repaying debts. An experienced and qualified bankruptcy attorney may help reduce stress and uncertainty by providing valuable assistance throughout the entire bankruptcy process. The language of § 541 of Title 11 provides that any bankruptcy case filed voluntarily, involuntarily, or jointly creates an estate. As defined by federal law,...
When filing for bankruptcy, it’s important for all California residents to be aware of specific, important information about the rights afforded them by federal and state law. Alberto Montefalcon may provide this necessary information which includes the true benefits of filing a bankruptcy case. One of the primary benefits and main purposes of bankruptcy is to discharge debts and provide an individual debtor with a "fresh start." After a bankruptcy case is completed and a debtor has received...
Do you have problems making payments on your debts? Are you typically behind on these payments and rarely current? Is this pattern causing further problems? Is economic hardship diminishing the quality of your life? What are your solutions? Is bankruptcy a viable option? An experienced and knowledgeable bankruptcy attorney may assist anyone in a precarious financial situation. You need someone to provide you with information about your rights, including should you choose to file a bankruptcy...