LAW OFFICES OF ALON DARVISH

Estate Planning & Probate | Business & Corporate Formation | Real Estate

Bankruptcy

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is technically called a liquidation or "straight" bankruptcy, but what the main reason to file for Chapter 7 bankruptcy is to discharge one's unsecured debt (with certain exceptions) while keeping one's "exempt" property. The best known exemptions are the following:

• Homestead - Exemption is $75,000 for family member living with one or more non-owner family members; $150,000 for a person who is 65 or older, disabled, or who is 55 or older with an annual gross income of $15,000 or less if single or $20,000 or less if married. $50,000 for all other persons.

• Wages - 75 percent of all "paid earnings" are exempt.

• Automobile - Up to $2,300 of the equity in all automobiles.

• Other Property - Household furnishings, appliances, provisions, wearing apparel, and other personal effects are 100% exempt if they are ordinary and necessary. $2,300 of the aggregate equity in one or more automobiles is exempt. $6,075 each for jewelry and personal property used in the debtor's trade or business is exempt.

Although Chapter 7 bankruptcy is technically called a "liquidation" bankruptcy, most cases do not involve any liquidation of a person's property as one would not file for Chapter 7 if one has significant non-exempt property that one does not want to lose. If one has significant non-exempt property that a Chapter 7 bankruptcy trustee would be able to liquidate for the benefit of your creditors, Chapter 13 is usually more appropriate.

A joint Chapter 7 case may be filed together by a husband and wife.

Exceptions to Chapter 7

Debts not generally dischargeable in chapter 7 bankruptcy include the following:

1. Certain taxes and debts incurred to pay certain taxes

2. Creditors not listed in the bankruptcy case or not otherwise notified about the case (unless-under some case law-the case is a "no-asset case")

3. Debts for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny,

4. Debts to spouse, former spouse, or child for alimony, maintenance, or support and obligations of a similar nature

5. Damages for willful and malicious injury to another or another's property.

6. Certain governmental fines and penalties

7. Certain student loans and obligations to repay educational benefits or overpayments

8. Certain debts arising from driving while intoxicated.

9. Debts for money, property, services, or for credit obtained by false pretenses, false representation, or actual fraud (This includes credit card charges, cash advance, etc. made without the intent to repay). The law presumes charges of more than $l,000.00 for "luxury goods" to one creditor within 60 days of the bankruptcy filing or cash advance totaling more than $l,000.00 within 60 days of the bankruptcy filing to be within this nondischargeability rule

10. Debts for money, property, services, or for credit obtained by use of a written statement that was materially false concerning your financial condition if the creditor reasonably relied on it that was used with the intent to deceive

11. Certain military enlistment bonuses if bankruptcy discharge is less than 5 years after the termination of an enlistment for which an enlistment bonus was paid if the person voluntarily or because of misconduct did not complete the term of enlistment for which the bonus was paid. Other military special pay and accession bonuses are not dischargeable (certain special pay and accession bonuses for pharmacy officers, certain retention bonuses for members of the Armed Forces qualified in critical military skill, and certain debts related to the Information Security Scholarship Program). PL 106-398, 2000 H.R. 4205.

Please contact us for more info.

 

Law Offices of Alon Darvish

9454 Wilshire Boulevard, Penthouse Floor

Beverly Hills, California 90212

Telephone: (310)205-5529

Telephone: (800)890-7780

Facsimile: (310)496-0171

Email: Info@DarvishLaw.com

Website: www.DarvishLaw.com

Attorney, Alon Darvish, Represents Clients Throughout Southern California: Anaheim, Apple Valley, Arcadia, Azusa, Bakersfield, Barstow, Beverly Hills, Burbank, Chino, City of Industry, Claremont, Claremont, Costa Mesa, Covina, Culver City, Dog Beach, Downey, El Segundo, Encino, Fresno, Garden Grove, Gardena, Glendale, Glendora, Hawthorne, Hermosa Beach, Hesperia, Highland, Hollywood, Huntington Beach, Inland Empire, Irvine, La Quinta, Laguna Hills, Long Beach, Los Angeles, Malibu Beach, Manhattan Beach, Marina del Rey, Mission Hills, Modesto, Monterey Park, Newport Beach, Northridge, Orange County, Pacific Beach, Pacific Palisades, Palm Springs, Palmdale, Pasadena, Playa del Rey, Pomona, Rancho Cucamonga, Rancho Mirage, Redding, Redondo Beach, Reseda, Riverside, Salinas, San Bernardino, Santa Ana, Santa Barbara, Santa Clarita, Santa Monica, Santa Rosa, Sherman Oaks, Studio City, Sun City, Sunset Beach, Tarzana, Temecula, Temple City, Topanga, Torrance, Universal City, Valley Village, Van Nuys, Venice Beach, Ventura, Victorville, West L.A., Whittier, Woodland Hills, Yuba City