Southern California Bankruptcy Law Blog

Category Archives: Chapter 7

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The Ninth Circuit’s Martin Decision

Posted in Chapter 7, Tax debts

I have written several times about discharging income tax debt in bankruptcy.  Some time ago I wrote a post that dealt with the question of whether a return filed after a substitute for return is a return for bankruptcy discharge purposes.  At the time, I reported that the question hadn’t been addressed by the Ninth… Continue Reading

Discharging Income Taxes In Bankruptcy After A Substitute For Return Is Filed: Part II

Posted in Chapter 11 for Individuals & Married Couples, Chapter 13, Chapter 7, Uncategorized

Some time ago I wrote about discharging income taxes in bankruptcy.  I subsequently wrote about discharging income taxes in bankruptcy for a tax year in which the debtor filed a return after the taxing authority ― for simplicity I will generically label the authority as the IRS, though the discussion applies to other taxing authorities… Continue Reading

Discharging Income Taxes In Bankruptcy After A Substitute For Return Is Filed

Posted in Chapter 11 for Individuals & Married Couples, Chapter 13, Chapter 7

Some time ago I wrote about discharging income taxes in bankruptcy.  I stated that there is a three-part test for determining their dischargeability, and started with the following executive summary: For a tax to be dischargeable in bankruptcy, it must satisfy three requirements: (The three-year rule) The tax return for the tax year in question… Continue Reading

Can The Chapter 7 Bankruptcy Trustee Seize Your Postpetition Commissions?

Posted in Chapter 11, Chapter 7

I recently answered a question posed by a fellow bankruptcy attorney, and thought you might find the discussion interesting. Here’s an edited version of my colleague’s question: A Chapter 7 debtor who is a real estate broker had some listings prepetition.  He opened escrow postpetition, and eventually sold the properties.  He received a $20,000 commission,… Continue Reading

Liquidation Of An Asset In A Chapter 7 Bankruptcy II

Posted in Chapter 7

I recently received an email that posed an interesting scenario in Chapter 7 bankruptcy liquidation.  Although I have written on the subject of Chapter 7 liquidation I haven’t addressed the specific fact pattern in detail.  This post fills that lacuna. The question posed was a bit long, so I will summarize it.  The questioner asked… Continue Reading

Bankruptcy Discharge Of Workers Compensation Premium Debts

Posted in Chapter 7

  A fellow bankruptcy attorney recently posed an interesting question regarding the dischargeability of an obligation to pay workers compensation insurance premiums.  Here is the exchange I had with him: Question: Is money owed to the “State Fund” for unpaid workers compensation insurance premiums by a debtor as a responsible officer of a defunct corporation… Continue Reading

Fair Debt Collection Practices Act And Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7

A very recent Eleventh Circuit decision, Crawford v. LVNV Funding, LLC, No. 13-12389 (11th Cir., July 10, 2014), highlights an interesting split among the circuits, which makes things ripe for an appeal to the Supremes. First let’s get a little background. BACKGROUND I.                The Automatic Stay And The Discharge Injunction When a person files for… Continue Reading

Comment On Liz Weston’s Column: Chapter 13 Bankruptcy Is An Option

Posted in Chapter 11, Chapter 11 for Individuals & Married Couples, Chapter 13, Chapter 7

Last Sunday, July 20, 2014, Liz Weston of the L.A. Times gave an interesting answer to a question posed by a reader of the newspaper’s Money Talk feature.  Today’s post adds to Liz’s advice. The reader had accumulated $28,000 in credit card debt over the previous eight years, and had considerable law school debt and… Continue Reading

Tolling A Statute Of Limitations In Bankruptcy

Posted in Chapter 11, Chapter 11 for Individuals & Married Couples, Chapter 7

I recently had an email exchange regarding statute of limitations tolling in bankruptcy, with a friend who is a fellow bankruptcy attorney.  My friend posed a couple of questions based on an interesting fact pattern.  Herewith I offer a slightly edited version of the exchange. First, here is my friend’s email: Salient Facts:   Chapter 7… Continue Reading

Homestead Exemption After Sale Of The Residence

Posted in Chapter 11 for Individuals & Married Couples, Chapter 13, Chapter 7

If you sell your home, can the cash proceeds be exempted using the homeowner’s equity exemption?  That was the subject of two questions that a fellow bankruptcy attorney recently asked me.  I found the exchange interesting, so I am posting it for your edification. Question 1: If the proceeds from the sale of the domicile… Continue Reading

Exempting An Inherited IRA

Posted in Chapter 11, Chapter 13, Chapter 7

Can I exempt the IRA I inherited from my father when he died? This, in essence, is the question the U.S. Supreme Court very recently addressed in Clark v. RAMEKER, No. 13-299 (U.S. June 12, 2014). I.          Exempting Retirement Funds I have discussed exemptions in many previous posts. In one post I covered exempting non-ERISA-qualified… Continue Reading

Preferential Transfers IV: Defenses to Preference Avoidance Actions (Part VIII)

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the eighth defense against preference avoidance actions, the so-called de minimis transfer defense.  This defense has two versions. Defenses To Preference Avoidance Actions, Part VIII: The De Minimis Transfer Defense A.        The De Minimis Transfer Defense, Part I Suppose an individual with primarily consumer debt files a personal bankruptcy.  And suppose that debtor had… Continue Reading

Preferential Transfers IV: Defenses To Preference Avoidance Actions (Part VII)

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the sixth defense against preference avoidance actions, the so-called domestic support defense.  This one is short. Defenses To Preference Avoidance Actions, Part VII: The Domestic Support Defense A comparison of the Bankruptcy Code prior to October 17, 2005 with its current incarnation (the 2005 law that changed the Code is the Bankruptcy Abuse… Continue Reading

Preferential Transfers IV: Defenses To Preference Avoidance Actions (Part VI)

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the sixth defense against preference avoidance actions, the so-called statutory lien defense. Defenses To Preference Avoidance Actions, Part VI: The Statutory Lien Defense Some liens are voluntary, the result of the debtor voluntarily granting a lien to a creditor.  Examples include home mortgages and car loans. Other liens are involuntary and are recorded… Continue Reading

Preferential Transfers IV: Defenses to Preference Avoidance Actions (Part V)

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the fifth defense against preference avoidance actions, the so-called floating lien defense. Defenses To Preference Avoidance Actions, Part V: The Floating Lien Defense In my last post I discussed the security interest defense, and noted that § 547(c)(3) requires that the security agreement must clearly identify the collateral securing the debt.  The example that set… Continue Reading

Nicholas Gebelt is speaking on Preferential Transfers on May 8 in Orange, CA and May 15 in Pasadena, CA

Posted in Chapter 11, Chapter 13, Chapter 7

If you’ve been following my blog posts on preferential transfers and would like more in-depth coverage, I will be speaking on this topic on May 8 in Orange, California and again on May 15 in Pasadena, California.  In addition to the topic of Preferential Transfers: Preference Actions and Substantive Defenses, I will also cover the topics of 1) Fraudulent Transfers: Actual… Continue Reading

Preferential Transfers IV: Defenses to Preference Avoidance Actions (Part IV)

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the fourth defense against preference avoidance actions, the so-called net result defense. Defenses To Preference Avoidance Actions, Part IV: The Net Result Defense Suppose you borrowed $10,000 from ABC Bank.  After paying back ABC Bank the $10,000, you borrowed another $7,000 from ABC Bank.  And suppose you filed for bankruptcy protection less than… Continue Reading