bankruptcy myths busted

Bankruptcy Myths BUSTED: Separating Fact From Fiction

Posted by Hale Andrew Antico on

Bankruptcy Myths BUSTED: Separating Fact From Fiction About Financial Fresh Starts

Don’t let misconceptions hold you back. Discover the truth about bankruptcy and how it can help you regain control of your finances.

Debt. It’s a four-letter word that evokes feelings of stress, anxiety, and maybe even a little bit of shame. And when people feel overwhelmed by debt, they often turn to bankruptcy as a potential solution. But…bankruptcy is also shrouded in myth. You’ve likely heard stories—maybe from well-meaning friends, relatives, or even outdated sources online—that paint a grim picture of ruin and devastation.

But are those stories accurate? Probably not. In this article, we’re taking aim at the most common bankruptcy myths, armed with facts, clarity, and a healthy dose of skepticism. Prepare to have your assumptions… BUSTED!

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Key in hand for car or house

Chapter 13 Mortgage & Car Payments

Posted by Hale Andrew Antico on

Chapter 13 Mortgage & Car Payments

Introduction: Understanding Chapter 13 & Home and Car Payments as Secured Debts

Filing for Chapter 13 bankruptcy is a big step – a commitment to a repayment plan designed to get you back on track financially. It allows you to catch up on debts while keeping your important assets, secured debts like your home and car. But what happens to those payments during this process?

If you’re wondering about mortgage payments in Chapter 13 or how car loans in Chapter 13 are treated, you’re not alone. This guide will break down everything you need to know, offering clarity and peace of mind as you navigate this journey.

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median income limits

2025 Median Income Limits to Nail Bankruptcy Means Test in Calif

Posted by Hale Andrew Antico on

Median Income Limits to Nail the Bankruptcy Means Test: 2025

The government updated the numbers for 2025 median income limits. Using median household income, it again got easier to qualify for bankruptcy Chapter 7, because of another means test adjustment.  And while bankruptcy may seem to be “just forms,” make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

The means test for bankruptcy decides who qualifies for Chapter 7 bankruptcy eligibility. The first step of this process is comparing your median household income against the California median income limits set by the Department Of Justice guidelines to see if you earn less than bankruptcy median income limits.

Again, this comparison against the median income is merely the first step, and does not absolutely determine your eligibility for Chapter 7 or not.

April 2025 Update:  The numbers for the means test adjust on April 1, 2025 and will be used for the next part of 2025.

Because of the above statement, these will be the first updated 2025 median income limits.

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chapter 13 debt limits

Chapter 13 Debt Limits (2025 update)

Posted by Hale Andrew Antico on

Chapter 13 Debt Limits (2025 update)

Debt Limits in Chapter 13 Bankruptcy

April 2025 Update: Chapter 13 debt limits in 2025 have been in a state of flux, and adjusted again in April 2025. Note that they were temporarily higher than normal, but then returned to normal, and now get a bump. Why? There was a law  which, among other things, temporarily increased the Chapter 13 debt limit to $2.75 million dollars. This limit was for both secured and unsecured debt combined. It was about double what the debt limits had been, and was extremely helpful for Los Angeles residents who have a second property and mortgage debt that exceeds $1.5 million. The Chapter 13 debt limit increase was temporary and sunseted last year. There is chatter it may increase again back up to this high number, but this is speculative at this stage. See below for the current figures, which updated in April 1 2025.

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means test for chapter 7 bankruptcy

Bankruptcy Means Test: a calculator, and a trick to pass (2025)

Posted by Hale Andrew Antico on

Bankruptcy Means Test for Chapter 7 in California, and Everywhere Else

Bankruptcy means test for Chapter 7 was created by Congress to decide if you qualify for liquidation or straight bankruptcy.  Here is what it is, some answers to common bankruptcy means test questions, and a weird tip on passing the bankruptcy means test and its median income limits (ok, it’s not weird, but I think you’ll find it helpful).

Historically, there was no bankruptcy income limit

Before 2005, any income earner could, in theory, file Chapter 7 bankruptcy. There was a time in those days where a single person filing bankruptcy could earn $8,000 a month after taxes and still get a discharge. The credit card companies lobbied Congress to change the law and make it harder to qualify. In response, Congress passed a bankruptcy reform called BAPCPA in 2005. One of the new provisions was to add a means test so that the more someone earned, the harder it became to qualify for Chapter 7.

What is the Bankruptcy Means Test

The bankruptcy means test is a long form that asks how much money someone has earned recently. It starts by determining a) what your “current monthly income” is. Then, it compares that to b) a median income limit for their state, for a similar-sized household. If your income is less than the magic number, you pass the means test for Chapter 7.  Consequently, you can file bankruptcy that way.

Figuring Your Current Monthly Income

Once you’ve figured out which income limit number is the standard for your state, you now need to compare against it your current monthly income. And like most things in bankruptcy, this is not as straightforward as it seems.

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Bankruptcy as a pirate ship on the sunrise and nautical theme

Debt Relief Ahoy: A Pirate’s Guide to Bankruptcy

Posted by Hale Andrew Antico on

Debt Relief Ahoy: A Pirate’s Guide to Bankruptcy

Navigatin’ the Choppy Waters of Debt: A Pirate’s Guide to Bankruptcy & Financial Freedom

Avast, ye landlubbers! Are ye findin’ yourself in over yer head with debt? Feelin’ like yer ship is takin’ on more water than ye can bail out? Meet Debt Relief Ahoy, your trusty map to navigating bankruptcy and finding financial freedom. Fear not, for we be here to help ye chart a course through these treacherous financial waters. So, grab yer spyglass and let’s take a look at what lies ahead!

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steps to filing bankruptcy in California

Essential 11 Steps to Filing Bankruptcy in California

Posted by Hale Andrew Antico on

Essential 11 Steps to Filing Bankruptcy in California

Step-by-Step Guide for filing bankruptcy in California, from a trusted Los Angeles bankruptcy lawyer

Here are 11 steps to filing bankruptcy in California. I’m Hale Andrew Antico, an established Los Angeles bankruptcy attorney, and I have helped thousands of people in Southern California get a fresh start by filing bankruptcy for the past twenty years. You really should at least meet with an attorney for a once-in-a-lifetime process with serious consequences. As an introduction to how all this works, here is a step-by-step guide to file bankruptcy in California in 2025, with 11 steps from filing to discharge.

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Figuring the Los Angeles Country median home price size is like trying to calculate the median coin weight when all we have is data about stack size

How to Figure the Los Angeles County Median Home Price (2025)

Posted by Hale Andrew Antico on

How to Figure Los Angeles County Median Home Price (2025)

The Los Angeles County median home price in 2025 can be tricky to determine. There are different sources that say different things. It’s not clear which of the many options will be relied upon by courts and trustees for the California homestead exemption.  Also, while bankruptcy may seem to be “just forms,” make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

2025 update: there seems to be a consensus among local bankruptcy attorneys as to what the Los Angeles County median home price is. More than that, this L.A. median price changes each year. While it’s still untested in court, a lot of the initial uncertainty has cleared up. Read on!

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California bankruptcy exemptions can save your house.

New! 2025 California Homestead Exemption Increased by Inflation

Posted by Hale Andrew Antico on

2025 California Homestead Exemption, increased by inflation

Brand new! The maximum 2025 California Homestead Exemption amounts

The 2025 California homestead exemption numbers are already available, and different from last year, and even the original range of $300,000 to $600,000. In fact, in 2025, they top out way higher than $600,000, which helps you save more of your home from creditors than the homestead exemption could in 2023. Why? Because of inflation. The new California homestead exemption is tied to the CPI, or consumer price index.  And everyone knows things lately aren’t cheap.

Summer 2024 update: The inflation-adjusted 2025 California homestead exemption should be out any time. See below what it will be for cases filed after Jan 1, 2025.

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duplex apartment outhouses and homestead exemption house with knife

ADUs, Duplex, Apartments, Buildings and Calif Homestead Exemption

Posted by Hale Andrew Antico on

ADUs, Duplex, Apartments, Buildings and California Homestead Exemption

Does the California Homestead protect a separate dwelling unit with renters?

Is a duplex or apartment protected by the California homestead exemption? What about a separate building like an ADU on the same lot. Or a very large lot. It depends.

Accessory dwelling units (or ADUs) are becoming quite common in California. The question is whether the Calif homestead is broad enough to cover ADUs.  The California homestead exemption lets someone in a bankruptcy protect some or all of the equity in their residence. What are the limits of this though?

Starting with a common scenario: if someone rents out a room in their home, is the unpartitioned house now subject to limited protection? What if it becomes partitioned?

The issue only gets more complicated from there. Debtors can live in a duplex or apartment building they own, but how extensive (or limited) is the asset protection of the homestead exemption in California?  What about a home on a (very large) lot? Two dwellings or ADUs on a lot?  Let’s take a look.

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