Southern California Bankruptcy Law Blog

Category Archives: Chapter 7

Subscribe to Chapter 7 RSS Feed

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

Posted in Chapter 11, Chapter 13, Chapter 7

Here is the third defense against preference avoidance actions, the so-called security interest defense. Defenses To Preference Avoidance Actions, Part III: The Security Interest Defense Suppose you wish to buy a new car that costs $30,000, but you don’t have $30,000.  Your solution is to borrow money for the purchase.  The lender wants some assurance… Continue Reading

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

Posted in Chapter 11, Chapter 13, Chapter 7

This is the second post devoted to defenses against preference avoidance actions.  It covers the so-called ordinary course of business defense. Defenses To Preference Avoidance Actions, Part II: The Ordinary Course Of Business Defense Suppose a corporate debtor in Chapter 11 has a lease on the building in which it conducts its business.  Suppose the… Continue Reading

Can I Continue To Contribute To My Retirement While In Bankruptcy? (Part 1)

Posted in Chapter 7

This easy question to state has a surprisingly complicated answer.  This is bad news if you were hoping for a simple yes or no, but good news if you’re a fan of more complex legal analysis.  In this post, I’ll discuss retirement contributions within the Chapter 7 context.  In my next post, I’ll discuss retirement contributions in a… Continue Reading

Can I File For Bankruptcy More Than Once? (Part 2)

Posted in Chapter 11, Chapter 13, Chapter 7

My previous post dealt with the first of two possible settings involving a previous bankruptcy.  The first setting was when you received a discharge in the previous bankruptcy.  Today’s post deals with the second situation, i.e., your previous bankruptcy was dismissed. II.        Your Previous Case Was Dismissed Other than the 180-day bar of § 109(g), or… Continue Reading

Can I File For Bankruptcy More Than Once? (Part 1)

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

The short answer to this is, yes.  But as you may suspect from the fact that this post is considerably longer than one sentence, there is a good deal more to a thorough answer than that monosyllabic response.  There are two possibilities regarding your previous bankruptcy:  (1) you received a discharge, and (2) your case… Continue Reading

Ipso Facto Clauses In Bankruptcy

Posted in Chapter 11, Chapter 13, Chapter 7

What is an ipso facto clause?  The phrase ipso facto is Latin for “by the fact itself.”  Ipso facto clauses are sometimes included in lease and purchase contracts, and they assert that if the lessee or purchaser becomes insolvent, or files for bankruptcy protection, then the contract has been breached.  In other words, under such… Continue Reading

Prenuptial Agreements In Bankruptcy

Posted in Chapter 13, Chapter 7

A fellow bankruptcy attorney recently posed an interesting pair of related questions: How (if at all) does a valid prenuptial agreement affect the requirements to list a non-filing spouse’s income in CMI per 707(b)(7)(B)?  Does it make ALL of the spouse’s income includable in the “marital adjustment”? Here is my response. I.          The Bankruptcy Code’s… Continue Reading

A Crackdown On Abusive Debt Collectors

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

An ongoing source of distress for debtors is truly abusive debt collectors.  Many of these alleged humans ignore the due process rights of debtors, lie, and break the law in their efforts to shake down debtors.  Can anything be done?  Finally, the federal and state governments are starting to take some action. I.          The Problems… Continue Reading

Redemption In Bankruptcy

Posted in Chapter 7

At first blush you might wonder if today’s title has a religious theme, or refers to cashing in coupons for valuable prizes.  While this post’s thrust does involve deliverance of a sort, it’s not intended as an evangelistic outreach.  Instead, this essay focuses on a special provision in Chapter 7 of the Bankruptcy Code: An… Continue Reading

Omitting A Creditor – Part II

Posted in Chapter 7

I’ve been a bit busy lately, and haven’t posted anything for a while.  I plan to remedy this over the next couple of weeks.  This post begins that process of “blogging rehabilitation.” Some time ago I posted an article discussing the consequences of omitting a creditor in a debtor’s bankruptcy papers.  Recently, I had an… Continue Reading

Mortgage Rescission And Bankruptcy

Posted in Chapter 13, Chapter 7

I.          What Is Mortgage Rescission? Rescission is a way for a borrower to get out of a mortgage that was fraudulently or deceptively originated.  For example, if the lender misrepresented the terms of the mortgage by failing to disclose a balloon payment, or the nature of the adjustable rate, or advised the borrower to inflate… Continue Reading