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Education
LL.M. (taxation): Georgetown Law Center, 1976
JD: Loyola School of Law, 1974
BA: UCLA, 1970

Professional Memberships
Licensed Attorney: California, U.S. Tax Court, 9th Circuit of U.S. Federal Court
Member, Trust & Estates, and OC Bankruptcy Forum, Orange Co. and California Bar. ]]> http://www.thelegalfixer.com/2009/04/steven-j-feldman-esq/feed/ 0 http://www.thelegalfixer.com/2009/03/bankruptcy-by-the-numbers/ http://www.thelegalfixer.com/2009/03/bankruptcy-by-the-numbers/#comments Tue, 24 Mar 2009 14:02:37 +0000 Steven Feldman http://www.theLegalFixer.com/?p=362 Chapter 7 (straight bankruptcy)

A restriction on wages, called the means test, limits the availability of chapter 7  or straight bankruptcy.  The numbers change periodically.  If your income is more than the current limit, you must prove your expenses are within the national and local norms. If your expenses are too high, then only chapter 13 or 11 is available.

The current California figures are:

1 Earner–$49,182
2 –$65,097
3 –$70,684
4 –$79,971

Chapter 13 (wage earner’s plan)

There are restrictions on the unsecured and secured debt amounts.  If you owe more than these amounts then you cannot file.  The limits are less than $336,900 for unsecured and less than $1,010,650 for secured debts.  These amounts are adjusted periodically to reflect changes in the consumer price index.  A corporation or partnership may not be a chapter 13 debtor.

Chapter 11 (reorganization)

If you cannot file under either of the above, then only Chapter 11 remains.  This filing is significantly more complex and expensive in comparison to chapters 7 or 13.  A corporation or partnership is usually a chapter 11 debtor but an individual also can use it.

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Steven J. Feldman

There are two main options under the U.S. Bankruptcy Code for people seeking financial relief by filing bankruptcy.

Chapter 7 Bankruptcy

For people with little income, few assets and mounting credit card bills or medical debt, filing Chapter 7 bankruptcy may be a good option because it allows a discharge of unsecured debt—that means the bankruptcy filer is no longer responsible to pay on those debts! This is typically a good debt-relief option for people who own little property, are having a hard time making ends meet and have very little “disposable” money at the end of the month. The Chapter 7 bankruptcy process moves quickly—you could be freed of your unsecured debt (like credit card and medical debt) within just a few months! The “catch 22″ is the “mean test” dollar limitation, which means that you have to file under Chapter 13.

Chapter 13 Bankruptcy

For others, filing Chapter 13 bankruptcy may be a good way for them to get on a repayment plan so they can payoff their secured debts (like a mortgage). Typically, a Chapter 13 bankruptcy filer is given between 3 and 5 years to catch up on their late accounts and they’re allowed to keep their homes during the process. Chapter 13 bankruptcy may be a good option for people who have regular income and can pay for general living expenses but are having a tough time making payments on secured debt, like their home.

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There are two main options under the U.S. Bankruptcy Code for people seeking financial relief by filing  a consumer bankruptcy.  For a free, 30-minute analysis with an experienced bankruptcy lawyer click here.

Chapter 7 Bankruptcy

For people with little income, few assets and mounting credit card bills or medical debt, filing Chapter 7 bankruptcy may be a good option because it allows a discharge of unsecured debt—that means the bankruptcy filer is no longer responsible to pay on those debts! This is typically a good debt-relief option for people who own little property, are having a hard time making ends meet and have very little “disposable” money at the end of the month. The Chapter 7 bankruptcy process moves quickly—you could be freed of your unsecured debt (like credit card and medical debt) within just a few months.

Chapter 13 Bankruptcy

For others, filing Chapter 13 bankruptcy may be a good way for them to get on a repayment plan so they can payoff their secured debts (like a mortgage). Typically, a Chapter 13 bankruptcy filer is given between 3 and 5 years to catch up on their late accounts and they’re allowed to keep their homes during the process. Chapter 13 bankruptcy may be a good option for people who have regular income and can pay for general living expenses but are having a tough time making payments on secured debt, like their home.

Restriction:  The above choices are subject to Means Testing.

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We simply bankruptcy

A Chapter 13 bankruptcy is very beneficial to the debtor in those situations where an asset or assets need to be protected, such as when a house is in foreclosure or a car is out for repossession. The Chapter 13 bankruptcy will immediately stop the foreclosure or repossession and all the past due amounts may be put into the Chapter 13 plan and be paid over a 3 to 5 year period. Also, if you make too much income, you may not qualify for a Chapter 7. In this situation the court will require that you pay back a portion or all of your debt.

In a Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court appointed trustee. The debtor will be required to pay back some or all of your debts over a three to a five year period. The amount of the payment is based on the amount of your income and expenses, and in some cases is as low as $100 per month regardless of the amount of debt that you have. For secured loans like home mortgage or vehicle loans, you have the option to pay these on your own, or you can put the loans into the plan and restructure the payments.

Chapter 13 can also stop repossessions or foreclosures by allowing you three to five years to catch up the back payments through the trustee. You also have the option to surrender the property to be relieved of the debt. Once the Chapter 13 bankruptcy is filed, the United States Bankruptcy Law prohibits all collection attempts by your creditors including telephone calls. Approximately thirty days after the Chapter 13 is filed with the court, you will be required to make one appearance in front of the court appointed trustee and the judge. The court and the trustee need to make sure that you know and understand what payments will be required by you and to make sure you have enough income to make those payments.

Once you have completed all the payments, the court will enter a discharge order which will relieve you of liability on all the debts in the plan. The court cost to file a Chapter 13 case is $274. This must be paid by before the case is filed. The attorney fees for a Chapter 13 case will depend on the nature and complexity of the case. The fees must be approved by the court. Typically, a portion of the fee is paid before the filing of the Chapter 13 bankruptcy, and the balance of the attorney fee is paid through the Chapter 13 plan. During your free consultation we will be able to quote you an exact fee.

Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $336,900 and secured debts are less than $1,010,650. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.

The discharge in a chapter 13 case is somewhat broader than in a chapter 7 case. Debts dischargeable in a chapter 13, but not in chapter 7, include debts for willful and malicious injury to property (as opposed to a person), debts incurred to pay nondischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.

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