Malcolm Ruthven gave a bankruptcy presentation at Legal Aid of Marin on Monday, August 17, 2009. There were additional points to be covered at the end of the event and these items will be added here as comments.

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3 thoughts on “Legal Aid of Marin Bankruptcy Presentation – August 17, 2009

  • August 17, 2009 at 8:44 pm
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    Chapter 13 – More information

    In general, you are eligible for Chapter 13 (repayment plan) if all of the following requirements are met:

    1. You are an individual or a sole proprietorship business. If you want a bankruptcy plan for another type of business (corporation, partnership, etc.), you must use Chapter 11 (not covered in the presentation). Individuals who operate the other types of businesses can include in their Chapter 13 plans business debts for which they are personally liable.

    2. You are not a stockbroker or commodity broker. Stockbrokers and commodity brokers are not eligible for Chapter 13 bankruptcy relief.

    3. Your secured debts are less than $1,010,650 and your unsecured debts are less than $336,900. These limits were set on April 1, 2007, and are adjusted every three years. This means that Chapter 13 may not be available to people who took out large loans to purchase homes in expensive areas. In these cases, Chapter 11 may be available but is more complex and more expensive than Chapter 13.

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  • August 20, 2009 at 10:10 am
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    State Income Taxes

    State income taxes are treated the same as federal IRS income taxes. so the rules for back income taxes to be dischargeable in bankruptcy apply to both types.

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  • August 20, 2009 at 10:20 am
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    Exemptions – Husband and Wife

    The bankruptcy exemptions allowed in California for keeping assets from creditors may not be "doubled" by a married couple. Even if the wife and husband file bankruptcy separately, they do not each get the full set of exemptions. There are certain provisions for additional exemptions for a married couple, but they are very specific and relatively minor.

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