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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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Q: Can I wipe out all my bills & debts in a Chapter 7.

A: Typically, yes! All of your credit cards debt, medical bills, and income taxes over 3 years old may be discharged in a Chapter 7 Bankruptcy. A Chapter 7 will give the honest debtor a “fresh start. Debts that are not dischargeable include student loans, income taxes less than 3 years old, child & spousal support and criminal penalties and fines.

Q: Will I lose any property in Chapter 7, like my retirement or pension plan?
A: Generally no, as California law gives you “exemption” protection over most types of property unless you have large amounts of equity. Pension plans are completely exempt under the law. Other retirement accounts can generally be protected in their entirety. It is important to seek competent legal advice to make sure that you do not place your property at risk.

Q: How do I stop the bill collectors from calling?
A: Upon the filing of the Chapter 7 bankruptcy, there is an “automatic stay” which prohibits any further collection efforts. If a creditor violates the automatic stay, said creditor may be sanctioned by the Bankruptcy Court. The Automatic Stay will promptly stop any telephone calls from creditors. In addition, it will stop any foreclosure or repossession.

Q: Does my spouse also have to file bankruptcy?
A: No. Oftentimes, all the debts are in the name of one spouse. By filing only on behalf of the spouse that is named on the debts, the non-filing spouse’s credit will not be effected.

Q: Can I be fired from my job for filing bankruptcy?
No. The U. S. Bankruptcy Law specifically prohibits discrimination based upon a debtor filing for protection under the bankruptcy laws.

Q: Will I be able to keep my home in a Chapter 7 bankruptcy?
A: Your home is protected under California law if your single and have less than $50,000 of equity, if your married and your equity is less than $75,000, and if your over 65, or disabled, and you have less than $150,000 of equity. It is important for you to contact the Law Offices of Steven J. Feldman so that you can be advised as to whether your home would be protected. If you have too much equity in your home, a Chapter 13 will allow you to force your creditors to accept a payment program.

Q: Will I be able to keep my car after I file for bankruptcy?
A: In the great majority of cases, there will be exemptions that will protect your vehicle or vehicles.

Q: If I am financing my car, do I have to continue making the monthly payments?
A: If you want to keep your vehicle, it will be necessary for you to continue making the monthly payments. In a Chapter 7, you have the right to return the vehicle to the finance company if you do not want to keep your car.

Q: Will my credit be ruined for 10 years after the bankruptcy?
A: The bankruptcy will be the first step in re-establishing your credit. Typically, the debtors credit is ruined, or about to be ruined, at the time the debtor seeks legal advise. The Chapter7 bankruptcy will discharge all outstanding debt and the credit reports will reflect that the outstanding debt is reduced to $0.00. The average debtor is typically able to re-establish good credit within 18 to 30 months.

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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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