No interest is bad if you're on a date, and what unsecured debts are supposed to get

May They Have Your Interest? Unsecured Debts in Chapter 13

May They Have Your Interest? Unsecured Debts in Chapter 13

Credit card interest stops accruing after filing a Chapter 13 bankruptcy in most cases

In Chapter 13 bankruptcy, do you have to pay the general unsecured creditors — like credit cards and personal loans — interest on their debt?  The Bankruptcy Code specifically describes the treatment of claims with postpetition interest, so you would think unmatured interest in Chapter 13 would be settled.

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A home lien cramdown is not like a building collapse

9th Cir BAP: Yes, Cramdown a Lien Secured by Residence in 1322

9th Cir BAP: Yes, Cramdown a Lien Secured by Residence in 1322

It’s possible to bifurcate a secured debt on a home or HELOC in a Chapter 13 bankruptcy, but timing matters.

SUMMARY

In In re Lee and Chen, 2023 WL 7489928 (BAP 11/13/23), the Bankruptcy Appellate Panel for the Ninth Circuit (“BAP”) held that § 1322(c)(2) is an exception to § 1322(b)(2), and that the Chapter 13 debtors were able to bifurcate and cramdown a secured debt on their residence that matures during the plan.

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social security income bankruptcy keep out

Social Security Income and Bankruptcy: What You Need to Know

Social Security Income and Bankruptcy: What You Need to Know

Does Social Security income count in a bankruptcy?  It may make the difference between a Chapter 7 “straight” bankruptcy where you don’t pay the debt, and Chapter 13, where you do.

In Chapter 7 bankruptcy, income is used to determine whether someone qualifies in two different places. The first is the Form B22, or “means test.” The second is the actual budget. So let’s look at whether Social Security factors in those one at a time.

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Family giving and transferring to one another, which may be an bankruptcy insider transfer

Bankruptcy Insider for Preferences: Key Things to Know

Bankruptcy Insider for Preferences: Key Things to Know

What is an insider in bankruptcy, and why should I care? What is a statutory insider, and is there such a thing as a non-statutory insider? The issue with insiders is fraudulent transfers, which would give a Chapter 7 trustee the right to go claw back money used to repay the debt of an insider just prior to filing.

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when officially separation in California for bankruptcy

Separation: When Exactly Does Community Property End in Calif

Separation: When Exactly Does Community Property End in Calif

When does community property end in California? Is it at divorce or separation, and when exactly are two spouses (or future exes) separated?

It’s usually clear when a marriage and community property begin in California.  That’s when people say, “I do.”  But it can be much harder to tell when it ends.

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401k retirement contributions and loans in bankruptcy

401(k) Retirement Loans & Contributions in Bankruptcy: Explained

401(k) Retirement Loans & Contributions in Bankruptcy: Explained

Are 401(k) contributions allowed in a bankruptcy? What about retirement loans? We all know it’s wise to save for our future, but can you contribute to retirement plan like 401k or 403b if you’re filing bankruptcy? In the Ninth Circuit, it depends.

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podium cdcbaa president antico

Hale Antico Voted CDCBAA President for Third Term

Hale Antico Voted CDCBAA President for Third Term

Attorney Hale Andrew Antico was voted President of cdcbaa for a third term, serving in 2024.  Mr. Antico, a President-Elect who is also Immediate Past President of the prestigious bankruptcy attorney association, has proudly served on its board of directors for well over ten years.

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Welsh is a gift from the 9th Circuit for every bankruptcy attorney

Chapter 13, Social Security, & Luxury Debt: A Case you Must Know

Chapter 13, Social Security, & Luxury Debt: A Case you Must Know

Why Welsh is the greatest Chapter 13 case ever

Every now and then, courts pass down a ruling on a subject that is so practical and a decision so favorable to consumer debtors that it’s as if the heavens opened, angels sang, and cherubim hand-delivered a gift to attorneys far and wide on the wings of a unicorn. The Ninth Circuit’s In re Welsh is such a case.

Introduction

On this, the ten-year anniversary of In re Welsh, 711 F.3d 1120 (9th Cir, 2013), it seems relatively few attorneys know about this ruling, and how it can benefit debtors. Or at least, far fewer bankruptcy lawyers know about this than should. Yet we all should have it tattooed on the inside of our eyelids.

So, with the goal of getting the word out there, and celebrating a decade of relative anonymity, here’s a loud and triumphant commemoration as a monument to one of the greatest debtor cases in bankruptcy jurisprudence, and all of its varied folklore.

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last will and testament receive inheritance bankruptcy

Inheritance, Bankruptcy and Chapter 13

Inheritance, Bankruptcy and Chapter 13

The mysterious interplay between Sections 541 and 1306 of the Bankruptcy Code

In bankruptcy, do inheritances go to the debts, or can the debtor keep them?  Does timing matter? What about Chapter 7 vs 13? What happens when someone in a Chapter 13 bankruptcy receives an inheritance after confirmation?

It all depends on the chapter, and when the debtor got the interest. Not the money interest, but the property interest.

Let’s break it down.

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