Tag Archives: Chapter 7 eligibility

Bankruptcy Eligibility for Chapter 7

Bankruptcy Eligibility for Chapter 7Bankruptcy Eligibility – As a bankruptcy attorney, I get this question all the time, who can file a chapter 7 bankruptcy? The answer is everybody with some exceptions, I have made a list of the common reasons that make you not bankruptcy eligible for a chapter 7.

(1) If you have been granted a discharge in a chapter 7 case that was filed within the last eight years.

(2) If you have been granted a discharge in a chapter 13 case that was filed within the last 6 years, unless 70% or more of your unsecured claims were paid off in the chapter 13 case.

(3) If you have obtained court approval of a written waiver of discharge in the previous chapter 7 case.

(4) If you conceal, transfer, or destroy property with the intent to defraud creditors or the trustee in the chapter 7 case.

(5) If you conceal, destroy or falsify records of your financial condition or business transactions.

(6) If you make false statements or claims in the chapter 7 case, or you withhold recorded information from the trustee.

(7) If you fail to satisfactorily explain any loss or deficiency of your assets.

(8) If you refuse to answer questions or obey orders of the bankruptcy court, either in your bankruptcy case or in the bankruptcy case of another person such as a relative, a business associate, or a corporation in which you have a relationship.

(9) A person who, after filing a bankruptcy, fails to complete an instructional course on personal financial management.

(10) A person who has been convicted of bankruptcy fraud.

(11) A person who owes a debt arising from a securities law violation.

If you have question about bankruptcy eligibility for chapter 7 bankruptcy, it is best to contact a bankruptcy attorney who can discuss your situation specifically. There are many exceptions to the bankruptcy eligibility rules, and only an experience bankruptcy attorney can assist you in determining if those exceptions apply to your specific case.

For more information about Bankruptcy – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081.

Trustee is Bona Fide Purchaser

Trustee is Bona Fide PurchaserTrustee is Bona Fide Purchaser – Is Trustee is bona fide purchaser despite simultaneous filing of debtor’s electronic petition and schedules. Here’s an example,

When debtor refinanced her condominium, she gave Chase a deed of trust to secure her note that was not recorded. Instead, all that was recorded was the deed of conveyance from the previous loan, which was paid off in full. Thus, it appeared from county records that the condo had been paid off.

Debtor later filed for Chapter 7 relief, electronically filing her petition and schedules simultaneously. The schedules listed Chase’s secured debt. Chase then commenced an adversary proceeding to quiet title to its lien. It actually prevailed in the bankruptcy court on the theory that, under In re Professional Investment Properties of America, 955 F.2d 623 (9′” Cir. i992), the schedules provided constructive notice to the trustee of the unrecorded lien. The SAP reversed.

Chase appealed to the Circuit Court, which affirmed. Chase Manhattan Bank, USA, N.A. v. Taxel (In re Deuel), 594 F.3d 1073 (9′” en.2010). The Circuit Court focused on the phrasing in § 544(a)(3) that the trustee has the status of a bona fide purchaser of real property from the debtor “at the time of commencement of the case” without regard to any knowledge of the trustee “as of the commencement of the case .”

The court observed that when a Chapter 7 case is filed, only the petition commences the case, regardless of what else happens at the same time. “The trustee has not even been appointed when the petition is filed and could not possibly be a bona fide purchaser for value without notice upon the filing of the petition, but he is treated by the statute as though he were.” Moreover, because the strong-arm power exists without regard to any knowledge of the trustee it did not matter whether a hypothetical trustee who immediately read what was filed would have actual knowledge of the lien from the schedules. Finally, the Circuit Court distinguished Professional Investments limited to involuntary petitions that gave notice of an interest and further rejected Chase’s argument that its current lien should be treated as subrogated to its own previous lien, since it used the money from the most recent refinancing to payoff the loan from the prior refinancing.

If you have questions about whether the Trustee is bona fide purchaser in a chapter 7 case, you should contact an experienced bankruptcy attorney.

Trustee is Bona Fide Purchaser – for more information about Bankruptcy laws  – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081.  Evening and Weekend hours are available to meet with an attorney.  If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.

Chapter 7 Bankruptcy

Chapter 7 BankruptcyChapter 7 bankruptcy is sometimes called “liquidation” bankruptcy because it cancels most types of debts. In Georgia, 91% of people who file bankruptcy, file under Chapter 7 Bankruptcy. During a Chapter 7 bankruptcy the bankruptcy trustee of the court liquidates your non-exempt property and distributes the proceeds to your creditors. You get to keep your exempt property.

For a chapter 7 bankruptcy, you will file a petition for bankruptcy. You will also need to file a few additional document within 15 days. These additional documents include:

  • a list of your creditors,
  • a list of your assets, debts, income, and financial transactions prior to filing the bankruptcy,
  • copies of your most recent federal tax return,
  • copies of your wage stubs,
  • a list of property you are claiming as exempt (that is property you are entitled to keep even though you are filing for bankruptcy),
  • information on what you plan to do with property that serves as collateral for a loan (such as a car or home),
  • proof that you have completed your pre-filing bankruptcy credit counseling,
  • and later in your bankruptcy case, proof you have competed budget counseling.

But most importantly you will be asked to compute your gross income during the six months prior to your bankruptcy filing date and compare that to the median income for your state. If your income is more than the median, you are asked a series of questions (called the “bankruptcy means test”) to determine if you could file a chapter 13 bankruptcy and pay some of your unsecured debts over time. Following the links below will give you some general bankruptcy information to consider.

Find out if a chapter 7 bankruptcy is the best answer to your debt problems and have an Attorney run a FREE “means test”. Contact the Remboldt Law Firm, LLC at 404-348-4081 to schedule a FREE Attorney consultation and see if the “bankruptcy means test” will allow for a chapter 7 bankruptcy.