Tag: chapter 7

Articles about Chapter 7 bankruptcy: the type where you don’t repay your debt because you can’t, but can lose your assets: home, car, money and other valuables

lien in bankruptcy cars

Liens in Bankruptcy: The Ultimate Guide, Explained

Posted by Hale Andrew Antico on

Liens in Bankruptcy: The Ultimate Guide, Explained

Liens in bankruptcy typically survive and don’t get affected by the discharge. However, there are exceptions where the lien can be reduced or even eliminated. I try to break these down in simple terms that are easy to grasp. But don’t be fooled: bankruptcy is more complicated than you think. Get a consultation with an attorney, and make sure you check out my list of 12 crucial tips to do or avoid before filing bankruptcy.

What is a Lien in Bankruptcy?

A lien is a security interest of a debt that encumbers a thing owned by the borrower until the debt is paid. One common example is a car and the car loan. The borrower who “owns” a car can’t just sell the car outright. He has to pay the debt secured by the lien against the car first. Then, once the debt is paid, the lien is satisfied and removed.

Section 101(37) of the Bankruptcy Code defines “lien” as:

charge against or interest in property to secure payment of a debt or performance of an obligation.

How does bankruptcy affect a lien? The General Rule

The general rule for liens in bankruptcy (and there are exceptions) is that bankruptcy doesn’t affect a lien at all. If a debt is secured by a lien and collateral, if you wish to keep the asset, then that debt will survive the bankruptcy. You don’t get a free house or car in bankruptcy. Here, let me put that in a fancy quote because it is so important:

You don’t get a free house or car in bankruptcy.

– Attorney Hale Andrew Antico

Continue reading “Liens in Bankruptcy: The Ultimate Guide, Explained” →

Can one person file bankruptcy separately

One Spouse Filing Bankruptcy: Everything You Need to Know

Posted by Hale Andrew Antico on

One Spouse Filing Bankruptcy

All you need to know about one spouse filing bankruptcy individually or separately

Can one spouse file bankruptcy without the other?

Can one spouse file bankruptcy without the other? In consultations, that’s one question I get asked a lot. When we’re married in California, everything is presumed to be joined and shared. So, can a married person claim a bankruptcy? The answer is, “Yes.”

Even though someone is married, they have every right to file bankruptcy without the other spouse. They have their own Social Security number and their own credit history. But just because you can do something doesn’t mean you should.

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ride-through california bankruptcy

Ride-Through Back in Calif Bankruptcy

Posted by Hale Andrew Antico on

Ride-Through Back in California Bankruptcy

Ride-through is back in California bankruptcy. This is big news for 2022 and beyond. It restores the right of someone in bankruptcy to be free of personal liability on a car loan in the event of a future default. To be clear, you don’t get a free car in bankruptcy. But if you don’t reaffirm the car debt, and stop paying the car after the bankruptcy discharge resulting in a repo, you won’t owe the deficiency balance.

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sb1099 new california exemptions good news

SB1099: New 2023 California Bankruptcy Exemptions Increase

Posted by Hale Andrew Antico on

SB1099: New California Bankruptcy Exemptions Increase for 2023 | 5 Major Wins

SB1099, the new California exemptions increase which gives debtors in bankruptcy more protections, is now law. The new California exemptions for 2023 help people in bankruptcy keep more of their assets, including their cars, their home, money, support pay, and sick leave. The bill was signed by the governor yesterday, and takes effect 1/1/2023.

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california median income

California Median Income Hits New High

Posted by Hale Andrew Antico on

California Median Income Reaches Historic Milestones

The California median income is a good guide to how well residents in the Golden State are doing financially. The California economy (until the pandemic) was sitting pretty, and its citizens are earning income. The numbers used to qualify for a “straight bankruptcy” have broken some very notable milestones.

2026 Update: The updated 2026 median income numbers were released, which took effect on November 1, 2025. The California median income for a one-person household is now almost $10,000 higher than when this article was written three years ago. For the first time ever, the median for a two-person household here breaks six figures — just a few years ago this article trumpeted that breakthrough for a family of four. Read the updated median income piece.

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Woman Facing Jail

Woman Facing Jail for Bankruptcy Fraud

Posted by Hale Andrew Antico on

A woman in Michigan recently pled guilty to bankruptcy fraud. Wait, jail? Bankruptcy is just forms, right? Just before filing bankruptcy, she had received a $12,000 workers’ compensation award. She, then made it disappear. After that, she lied about the whole thing. Now she faces five years in prison, $250,000 fine, or both.

When you file bankruptcy, you’re signing a stack of papers under oath. You’ll then be asked, under penalty of perjury, whether they list all your assets, income, and about any recent transfers. The wrong answer, a lie, could land you in jail for bankruptcy fraud.

The sad kicker is this: in California, this likely could’ve been avoided. All she has to do was everything disclosed everything. With a good bankruptcy attorney, it could then properly exempted. She’d be free today, enjoying her discharge and money.

She only had to tell the truth to her bankruptcy lawyer. Then, she needed to be honest in the bankruptcy papers. a good Los Angeles bankruptcy attorney could have exempted the award, and she’d have it to spend when the bankruptcy is over.

By trying to save a few bucks on maybe the best bankruptcy lawyer, she’ll not only lose $12,000, but maybe twenty times that, and her freedom.

Contact me today for a consultation, and let’s guide you to a honest fresh start.

 

credit after bankruptcy

Study: Credit After Bankruptcy Discharge is Likely

Posted by Hale Andrew Antico on

Study: Credit After Bankruptcy Discharge is Likely

A bankruptcy study recently debunked a myth. You know the one, that bankruptcy will ruin your credit forever. Last week, LendingTree, the largest online lender, released study results about credit after bankruptcy discharge. It followed people after their case was completed. This is consistent with my article asserting that there is indeed credit after bankruptcy discharge.

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bankruptcy debt limits

Is There a Debt Limit to Chapter 7

Posted by Hale Andrew Antico on

Is there a debt limit to Chapter 7?

One question people ask is, “How much do you have to be in debt to file Chapter 7.” Unlike Chapter 13 bankruptcy, there is no debt limit to Chapter 7. It just becomes a matter of practicality. There are financial benefits to file Chapter 7 bankruptcy, but these must be weighed against the costs, monetary and otherwise..

Too little debt for Chapter 7

The Bankruptcy Code has no lower limit to file bankruptcy under Chapter 7. The only limit is common sense. One the one hand, if you owed someone a dollar, and the Chapter 7 filing fee is $335, most people would just pay the dollar. No brainer. Another example: if you owed someone $1000, the debt is greater than the filing fee, but now there are other costs you’d weigh, like the hit on your credit. Is it worth it to discharge $1,000 of debt but have a bankruptcy on your credit report? Most would say no. Each individual weighs their own personal limit line differently. Many people would agree that $20,000 or $30,000 of debt is a lot to ditch in a bankruptcy discharge. A debt amount that high may outweigh the cost of the bankruptcy filing fee, paying a bankruptcy attorney, and the credit report ding. While there’s no debt limit to Chapter 7, we bankruptcy lawyers do see a typical range of debt.

Too much debt for Chapter 7?

On the other hand, there’s nothing written in the law that has a specific dollar amount that becomes too much debt to file a Chapter 7 bankruptcy (note: this is in contrast to Chapter 13 bankruptcy, which has a maximum debt limit set by law in 11 USC 109(e), which periodically adjusts, so check current chapter 13 debt limits).

There are other factors though that can stop a bankruptcy with too much debt. Firstly, the government looks at whether the debt was obtained in good faith. If someone unemployed for years has $250,000 of credit card debt, were they really intending to pay it back? Secondly, they look at the nature of the debts: were they luxuries like travel? Another factor is if the debts or discharge was obtained by fraud. Too much debt is situation specific. It may make sense for a business owner to have a lot of debt, but maybe not so much for a retired grandma.

Summing up the Debt Limit for Chapter 7

In short, there is no debt limit to file Chapter 7. Common sense factors would make it not worthwhile to file Chapter 7 bankruptcy for some. There is an upper limit that will get you on the trustee’s radar, though it’s not sure exactly what that number is. Like most things, if it’s reasonable it should work, though your mileage may vary.