Bankruptcy Facts: At a glance

More in-depth discussions may be found on our Frequently Asked Questions pages. For a free consult, and to discuss YOUR individual circumstances,

please call (858) 344-0500

1. •Debts that are commonly discharged (canceled) in bankruptcy:
   

2. •Medical bills
   

3. •Personal loans
   

4. •Civil judgments
   

5. •Vehicle loan deficiencies (such as after repossession)
   

6. •Mortgage liability after foreclosure
   

7. •There are exceptions to discharge.  Bankruptcy is a privilege and not an entitlement.  Fraud or the presumption of fraud can be the basis for denial of discharge.  But with your attorney’s knowledge and confidence, you can achieve powerful results.
   

1. •Debts that are NOT dischargeable in bankruptcy
   

2. •Student loans (with very rare exceptions)
   

3. •Domestic support
   

4. •Debts to society for certain fines and criminal acts (such as DUI)
   

1. •The gray areas (please call to discuss 858-344-0500):
   

2. •Taxes are sometimes discharged in bankruptcy. 
   

3. •Bankruptcy filing does not automatically remove liens, though personal liability on secured debt is discharged.
   

1. •Chapter 7 bankruptcy v. Chapter 13 bankruptcy:
   

2. •Chapter 7 takes 3 months.  You pay nothing on your debts.  If you have too much property, you may lose some of it (which is a rare circumstance)
   

3. •Chapter 13 usually takes 3 or 5 years.  You make a monthly payment.  You’ll usually pay off a small amount of debt, and be forgiven the part that hasn’t been paid.
   

1. •It’s easier to do a chapter 7 if you earn below the median income.
   

1. •Median income in California, by household size: (as of March 15, 2010)
   

2. •Household of One = $47,969
   

3. •Household of Two = $64,647
   

4. •Household of Three = $70,638
   

5. •Household of Four = $79,194
   

1. •In exempting (protecting) property, Californians choose one of the following two systems:
   

1. •California System 1 highlights:
   

2. •Homestead exemption (amount of equity you are allowed in your home):
   

3. •Single = $75,000
   

4. •Families = $100,000
   

5. •Senior/Disabled = $136,000-$175,000
   

6. •Vehicle = $2,725
   

7. •Jewelry/heirlooms/art = $7,175 TOTAL of all items
   

8. •Tools of your trade = $7,175 (double if working with co-filing spouse)
   

1. •California System 2 highlights:
   

2. •Vehicle = $3,525
   

3. •Jewelry = $1,425
   

4. •Tools of your trade = $2,200
   

5. •Normal household goods limited to $550 per item
   

6. •“Wildcard” exemption = $22,075 in any asset(s); may be used in conjunction with other exemption allocations
   

1. •Note: variables apply; the determination of how much “equity” is protected gets rather complicated. The above are just a few highlights of the “exemption” statutes.  Please call for a consultation (858) 344-0500.
   

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3. •Chapter 13 bankruptcy allows you to get rid of your unsecured second mortgage while keeping your house
   

4. •Applies to houses for which the first mortgage balance is greater than the property value
   

5. •The entirety of the second mortgage must be unsecured.
   

1. •Residency Requirements for bankruptcy filing in California
   

2. •If you’ve lived in California for less than 91 days, you must file in your former state of residence
   

3. •If you’ve lived in CA between 91 days and 2 years, then you’ll be using either the federal exemptions or the exemptions of a former state.  We need to look at the applicable law for the state in which you resided during the 180-day period preceding the 2 years before filing.  Then a determination is made whether to use that state’s exemptions or the Federal exemptions
   

4. •You have to have lived in California for the two years prior to filing in order to use California exemptions
   

5. •You must file for bankruptcy in the CA district in which you’ve lived for the majority of the 180 days before your filing date
   

6. •Note: location of domicile, principal place of business, principal assets or particular pending cases also determine which district you’d file in. 
   

1. •After filing a chapter 7 bankruptcy you must wait:
   

2. •8 years to file another chapter 7 bankruptcy.
   

3. •4 years to file a chapter 13 bankruptcy, or your unpaid chapter 13 debts will not be discharged. 
   

1. •After filing a chapter 13 bankruptcy you must wait:
   

2. •6 years to file another chapter 7 bankruptcy.
   

3. •2 years to file a chapter 13 bankruptcy, or your unpaid debts will not be discharged.
   

1. •Can’t find what you’re looking for?
   

2. •Try our Frequently Asked Questions
   

3. •Call us at (858) 344-0500 to schedule a free consultation
   

4. •Email us: admin@abramslawsd.com