The means test is the Bankruptcy Court’s way of enforcing “needs based” bankruptcy (only those who truly need a Ch 7 will be allowed to file Ch7). The means test has two functions: It serves as a screener to determine whether a debtor will be [...]

Fraudulent TransfersIf a debtor makes a fraudulent transfer within two years before the filing of a petition, the trustee may be able to avoid and recover the transfer. Please keep in mind, the trustee may have even have the power to reach back in time [...]

Priority claims are unsecured claims or claims without a lien or collateral involved that are required to be paid before other claims. If a claim is secured, it is technically not a priority claim. The general rule is that priority claims must be paid in [...]

The general rule is that debts that existed before the bankruptcy petition is filed are discharged at the end of the case unless a specific exception to the discharge rule says otherwise. Most debts listed on Schedule F for Chapter 7 debtors will be discharged. [...]

Unsecured debts are debts that do not have a lien or encumbrance. The creditor does not have a right to take property in the event of a default since the debt does not have a lien attached to it. The debt is just a debt [...]

secured debt is a debt that has a lien attached to the property. The property serves as the collateral to secure the debt. The property guarantees payment of the debt – if you don’t pay, the creditor is allowed to take the property. There are [...]