September 11, 2015

There’s More To Bankruptcy Than Just Filling Out Forms

By |September 11th, 2015|

There is a great misconception out there shared by many that filing bankruptcy is simple–

that all you need to do is fill out some forms, attend a meeting, and you get rid of all your debts.

This idea is shared by many before they file a bankruptcy case, and by almost no one after the case is filed.

It is certainly not shared by those who call me on  a daily basis trying to fix problems caused because they either filed the […]

August 17, 2015

Why You Should Not Repay Debts Before Filing Bankruptcy

By |August 17th, 2015|

Why pay off a credit card or other debts before you file bankruptcy?

This would seem to be a counter-intuitive thing to do.  After all, you’re filing bankruptcy presumably because you need to eliminate debts.

But many debtors choose to pay off some of their creditors right before filing bankruptcy.

Many think that by paying off a credit card before filing bankruptcy, they will continue to be able to use that card after bankruptcy and that it will not be “included” in their […]

June 25, 2015

Bankruptcy Attorney Fees: You Get What You Pay For

By |June 25th, 2015|

We’ve all done it. . .

purchased a cheap product only to have it break or fall apart shortly thereafter.

A watch.  A purse.  Sunglasses. Electronics.

That’s OK when you don’t mind throwing something away and getting a new one.

But when you’re dealing with personal services, such as hiring a bankruptcy attorney or other professionals, if the quality isn’t there, the damage often can’t be fixed.

Today I responded to a public question posted on Lawyers.com regarding a bankruptcy attorney which illustrates something I’ve written about […]

May 28, 2015

Bankruptcy Repayment Plans

By |May 28th, 2015|

Many people are not aware that bankruptcy relief comes in different shapes and sizes.

Most know about Chapter 7 bankruptcy:  You know, the one where you just “get rid of all your debts” without having to pay anything.

Chapter 7 these days has a lot of eligibility requirements, and not everyone qualifies.

And, sometimes, those that do qualify would be better served by filing a different bankruptcy chapter.

Related Article:

See my review of the different bankruptcy chapters.

But there are repayment options available in bankruptcy which […]

March 27, 2015

How To File Bankruptcy Without An Attorney in California

By |March 27th, 2015|

Many insist that an attorney is unnecessary in bankruptcy because their case is “simple”  or because they plain cannot afford one.

However, lately it seems not a day goes by that I don’t get a phone call from a debtor representing themself in bankruptcy who is facing some big problem.

They are always surprised to learn that they did not know everything they needed to know in order to properly represent themselves.

But the fact remains that a large percentage of those filing bankruptcy […]

Are Sales Taxes in California Bankruptcy Cases Dischargeable?

By |March 22nd, 2015|

In California, sellers are required to pay sales taxes to the State Board of Equalization (“SBOE”) based on receipts from sales.

Many bankruptcy attorneys (and others) believe that sales taxes in California can never be discharged.

Not true. I have discharge sales taxes for many of my clients.

Naysayers claim that sales taxes are like “trust fund” tax liabilities which are, in fact, never dischargeable.

But in California, sales taxes are not trust fund taxes anymore.

They used to be, but many years ago the law […]

Bankruptcy, Like Butter, Is Good For You

By |March 3rd, 2015|

For decades we were (incorrectly) told that butter was bad for us and, instead, we should eat artificial hydrogenated oils contained in margarine.

That was until doctors, following the lead of knowledgeable nutritionists and holistic health professionals, figured out that the margarine caused  heart and health problems and that butter and saturated fats are, actually, really nutritious.

As one example, see this NY Times opinion piece on how the tide is turning for butter.
Bankruptcy May Be Good For You–Really
It may not taste as […]

February 22, 2015

File Your Tax Returns On Time, Or Else

By |February 22nd, 2015|

ALWAYS FILE YOUR TAX RETURNS ON TIME, even if you cannot pay the taxes you owe.

Those of you who read my posts know that certain tax debts are dischargeable in bankruptcy.

The basic (but definitely not all) requirements for discharge of income taxes are:

The bankruptcy case must be filed more than 3 years after the last date in which the tax returns were due for a given tax year;
It must be at least 2 years since the returns were actually filed.
The […]

Should You Use Retirement Or Pension To Pay Debts Instead of Filing Bankruptcy?

By |February 20th, 2015|

In my opinion, using retirement or other protected funds to pay your debts is almost always a bad idea.

Yet it is one of the most frequent “solutions” people utilize in their misguided attempts to avoid filing bankruptcy.

I read an advice article today by  Trent Hamm of thesimpledollar.com, self-described as  “a site for people who are fighting debt and bad spending habits, while trying to build a financially secure future and still afford a few luxuries in life.”

In the article, Mr. […]

Your Bankruptcy Mistakes Can Affect Others

By |February 5th, 2015|

File bankruptcy without a qualified bankruptcy attorney-

or don’t disclose everything to your attorney-

and your friends and loved ones could be in for a big surprise, not just yourself.
“I Cannot Afford An Attorney So I Will Just File Bankruptcy Myself”
Today’s true story is brought to you by Sarah (not her real name), a mother of two.

Sarah had lots of credit card and other debts.

She also owned a 1/3 interest in the house she lived in.  Her two children were the other […]