Expert Bankruptcy & Debt Relief Insights

For homeowners who fall behind on their mortgage payments, filing for bankruptcy can provide some relief. Both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy trigger an automatic stay on the bankruptcy filer’s assets, including their home. While the automatic stay is in effect, a lender may not foreclose on the home. Prior posts on this…

Chapter 7 Bankruptcy can help people who are in financial trouble to get rid of most of or all of their debt. In a Chapter 7 Bankruptcy, unsecured debt is often discharged, but the Chapter 7 filer has the option to surrender collateral in order to discharge secured debts or to keep the collateral and…

Pop Star Aaron Carter Files Sometimes even celebrities need a fresh start. This month, pop star Aaron Carter filed for Chapter 7 bankruptcy. Carter was formerly a child pop star, releasing his first hit single at age 9 and the popular album Aaron’s Party (Come Get It) at age 12. With three platinum albums by…

A recent case from the Ninth Circuit Bankruptcy Appellate Panel illustrates the importance of good faith for a Chapter 13 Bankruptcy Plan. Good faith is an essential element for a Chapter 13 Bankruptcy filer to have their plan approved and to begin repaying their debts. Good faith is not defined in the bankruptcy code, but…

The California bankruptcy law governing exemptions is different from that in other jurisdictions. One of the benefits of filing for bankruptcy is that it allows you to keep some property and use other property to pay off creditors. In previous posts on this blog, we have discussed how different types of bankruptcy can be used…

Ninth Circuit Rules Automatic Stay Protects Abandoned Property A recent decision by the Bankruptcy Appellate Panel for the Ninth Circuit Court A recent decision by the Bankruptcy Appellate Panel for the Ninth Circuit Court of Appeals holds that foreclosure on property after the bankruptcy trustee has abandoned it will violate the automatic stay provisions of…

One major worry for those who file bankruptcy is that it will cause damage to their credit and prevent them from obtaining loans such as a mortgage in the future. Although bankruptcy will likely have an impact on the filer’s credit, it can still be possible to qualify for a mortgage as soon as one…

Court Allows Mortgage Creditor to Continue Legal Actions A recent 9th Circuit decision provides a noteworthy warning to homeowners considering bankruptcy. While bankruptcy may provide troubled homeowners with relief from losing their homes through foreclosure in certain situations, the bankruptcy courts are not an automatic shield. The court’s ruling in In re Alakozai demonstrates this,…

Chapter 13 bankruptcy has several tools to help persons who are struggling or unable to make payments on their car loans. For many Americans, a house and a car are two of the most valuable possessions they will ever own. A recent article from Bloomberg news reports that lenders today are allowing buyers to borrow…

In bankruptcy proceedings, creditors often challenge loans that were made to the debtor prior to the petition for bankruptcy and argue that the loans are equity rather than debt. This kind of challenge is called a “recharacterization challenge.” The complexity of these issues makes it important for creditors and debtors alike to understand the nature…