Los Angeles Bankruptcy Center is committed to helping clients who cannot afford the cost of other expensive attorney services by providing quality legal services for a reasonable cost. Our experienced affiliated attorneys are personally involved in all cases and reviews of all filings to make sure all clients receive the high quality work that is essential to in accomplishing the goals of our clients.
Los Angeles Bankruptcy Center and its network of highly experience attorneys have successfully filed thousands of bankruptcy cases and have experience filing in the Central, and Southern Districts of California. Our staff and affiliated attorney’s have extensive experience filing Chapter 7 asset and no asset cases, corporate liquidations, and Chapter 13 bankruptcies. Our Staff and affiliated Law firms also has vast experience adjudicating adversary proceedings within those cases, making sure his client get the bankruptcy relief they deserve.
Over 1.4 million Americans took advantage of the quickest and easiest way to get relief from debt and filed for Bankruptcy last year. Please call us now! Eliminate all your debt and get a fresh start!
The concept of and strategies for guarding one’s wealth. Asset protection is a type of planning intended to protect one’s assets from creditor claims. Individuals and business entities use asset protection techniques to limit creditors’ access to certain valuable assets, while operating within the bounds of debtor-creditor law.
Asset protection helps insulate assets in a legal manner – without engaging in the illegal practices of concealment (hiding of the assets), contempt, fraudulent transfer (as defined in the 1984 Uniform Fraudulent Transfer Act), tax evasion or bankruptcy fraud. Experts advise that effective asset protection begins before a claim or liability occurs, since it is usually too late to initiate any worthwhile protection after the fact. Some common methods for asset protection include asset protection trusts, accounts-receivable financing and family limited partnerships.
In general, if a debtor has few assets, bankruptcy may be considered the more favorable route. If significant assets are involved, however, proactive asset protection is typically advised. Certain assets, such as retirement plans, are exempt from creditors under United States federal bankruptcy and ERISA (Employee Retirement Income Security Act of 1974) laws.
In addition, many states allow exemptions for a specified amount a home equity in a primary residence (homestead) and other personal property (such as clothing). Each state in the United States has laws to protect owners of corporations, limited partnerships (LPs) and limited liability corporations (LLCs) from the entity’s liabilities.
Overall liabilities and assets are very important to analyze prior to making a decision, such as the filing of a Bankruptcy. It is very important to speak to an experienced attorney that will analyze your overall financial situation and determine wether there may be a non-bankruptcy alternative available or wether a bankruptcy will advance your immediate or long term financial goals. If the only viable option is a bankruptcy, our affiliated attorneys make sure to discuss in detail the process of such a filing and the short and long term effects it may have as well as the potential benefits it might have in your situation.
Bankruptcy in many cases bring a much needed relief for individuals. Wether the filing is personal related or business related, Our affiliated professionals will assist in seeing that you understand the process from start to finish.
The Business Debt Exception to the Means Test
If your debts are primarily (generally meaning over 50%) business debts you do not have to complete the means test. So if most of your debts are business related, the means test does not apply to you. As a result, the business debt exception allows debtors who may otherwise fail the means test to qualify for Chapter 7 bankruptcy. Below, we discuss what is considered a business debt as opposed to a personal or consumer debt.
What Is a Business Debt?
A debt is usually considered a non-consumer business debt if it was taken out in connection with your business or in hopes of making a profit. Credit cards used to pay business expenses or to purchase items for your business would qualify as business debts. Also, business vehicle loans, money owed to suppliers or vendors, and business taxes are all business debts.
Some jurisdictions even consider personal taxes as business debts but others classify them as consumer debts. When it comes to mortgages, if the property was purchased for the business or as an investment property, the mortgage will usually be considered a business debt.
What Is a Personal Debt?
A personal or consumer debt is a debt incurred for a personal or household expense. Personal debts generally include non-business credit cards, car loans, and your home mortgage. Again, some jurisdictions consider your individual tax liability a personal debt while others consider it to be a business debt. Usually, your home mortgage is the biggest obstacle to qualifying for the business debt exception.
Special Note Regarding the Good Faith Requirement
If you are able to use the business debt exception, it is usually enough to qualify you for a Chapter 7 bankruptcy. However, in addition to the means test each bankruptcy has a general good faith requirement. In certain cases, courts can disqualify debtors based on a lack of good faith even if they pass the means test. This is usually the case if debtors have a significant amount of income and their budget can easily be adjusted to pay back a portion of their debts.
