Who files bankruptcy?
Families come to bankruptcy with their own story to tell: job loss, debilitating illness, lack of adequate insurance, divorce, or death. My 37 years as a bankruptcy attorney tell me most bankruptcy filers are honest, hardworking, and financially responsible. They have usually experienced hardships outside their control. Bankruptcy filers are more likely to be employed than the U.S. as a whole and more likely to be veterans. Two-thirds of filers say medical issues are a key trigger for their bankruptcy filing.
Written on 10.15.2020 by: Rebecca Reynolds & Ken Reynolds
What are the most common types of Personal Bankruptcy?
Chapter 7 bankruptcy forgives most unsecured debts with no need to pay money to creditors. Secured debts are forgiven if the filer surrenders the collateral. In almost all chapter 7 cases the filer’s assets are fully protected meaning no assets the filer wants to keep are lost.
Chapter 13 is used almost exclusively by those who would lose assets under chapter 7. Chapter 13 filers do not turn over any assets to the bankruptcy court but instead propose a multi-year repayment plan for a portion of their debts. If the repayment plan is successfully completed, the filer receives a forgiveness of any balance of the unsecured debts, similar to what would have been forgiven under chapter 7.
Written on 10.19.2020 by: Rebecca Reynolds & Ken Reynolds
New law protects substantial equity in family homes
California’s new Homestead law protects you as a homeowner from creditors and protects up to $600,000 equity in your home when filing bankruptcy.
The new law takes effect January 1, 2021 and protects between $300,000 and $600,000 equity from creditors. The amount protected depends on the county where your house is located and is adjusted each year for inflation.
Here are the August 2020 homestead protection amounts for:
Alpine unpublished
Amador $353,500
Butte $415,000
Calaveras $381,000
Colusa unpublished
El Dorado $570,000
Fresno $322,000
Glenn $263,500
Inyo unpublished
Kern $285,840
Kings $265,500
Lassen $249,000
Los Angeles $677,260
Madera $329,000
Mariposa $380,750
Merced $335,000
Modoc unpublished
Mono $665,000
Nevada $475,000
Placer $538,750
Plumas $392,000
Sacramento $425,000
San Joaquin $425,000
Shasta $315,000
Sierra unpublished
Siskiyou $260,000
Solano $515,000
Stanislaus $370,000
Sutter $335,000
Tehama $290,000
Trinity unpublished
Tulare $280,220
Tuolumne $318,000
https://www.car.org/marketdata/data/housingdata/%20
Written on 10.21.2020 by: Rebecca Reynolds & Ken Reynolds
We are a debt relief agency and have practiced bankruptcy law for over 37 years. Our services include helping individuals and couples who file for bankruptcy relief under the Bankruptcy Code.