Southern California Bankruptcy Law Blog

Monthly Archives: July 2011

What Are ABCs? Assignment for the Benefit of Creditors

Posted in Chapter 11, Chapter 7, Small Business Bankruptcy

Kindergarteners have one answer to the question in our title.  Bankruptcy attorneys have another.  An ABC is an “Assignment for the Benefit of Creditors,” and it provides an alternative to Chapter 7 liquidation for a small business that is shutting down.  Let’s compare the two approaches to resolving business debts. I.          Business Bankruptcy The Bankruptcy… Continue Reading

Same-Sex Joint Bankruptcy Filing

Posted in Chapter 11, Chapter 13

This question arises within the context of a much larger controversy.  I won’t discuss that larger controversy except insofar as it has relevance to the topic at hand.  To put things in context, it helps to have a little background – statutory, and otherwise. I.          Joint Bankruptcy Filings The Bankruptcy Code is divided into chapters,… Continue Reading

Tax Debts After Foreclosure

Posted in Foreclosure, Home Loans, Short Sales

I.          The Basic Idea:  Cancellation Of Debt Income Let’s first understand the basic idea with a simple non-real estate example.  Suppose you owed me $100,000.  I’m such a nice guy that I forgive the debt.  It turns out that this becomes a mixed blessing because now the IRS and the Franchise Tax Board (FTB) both… Continue Reading

Mortgage Modification And Bankruptcy

Posted in Home Loans

In a recent blog I discussed the abysmal failure of the HAMP program.  It looks like things are even worse than I stated. In a recent headline from the Wall Street Journal’s Market Watch: “New recession begins next year, Shilling says.”  Who is Shilling, and why should I care? According to Howard Gold, Gary Shilling, economist… Continue Reading

Fraudulent Transfers: A Warning To Potential Bankruptcy Filers

Posted in Chapter 13, Home Loans

In a previous posting I discussed the concept of preferential transfer.  A somewhat related topic that has serious implications to bankruptcy filers is fraudulent transfer – also known as fraudulent conveyance.  I.          Fraudulent Transfer Outside Of Bankruptcy             A.        The Origins Of Fraudulent Transfer Law The concept of fraudulent transfer has its origins in ancient… Continue Reading

Mortgage Problems And Bankruptcy Solutions

Posted in Chapter 13, Chapter 7

There are many factors that must be considered when choosing how to deal with mortgage challenges.  A few examples presented as questions can help illustrate some of the many things you need to consider:  Are your difficulties due to a temporary employment setback that has been resolved?  Can you make all future mortgage payments?  Based… Continue Reading