Long Beach and Bakersfield Bankruptcy Relief
Before Filing Timeline
This timeline discusses how certain events occurring prior to filing bankruptcy may alter the outcome of the case. This timeline is provided for information purposes only. It does not include all bankruptcy events. You should seek the assistance of a qualified attorney to determine how the bankruptcy code will apply to your situation.
8 Years Prior to Bankruptcy Filed
Chapter 7 discharge prevented by prior filing- You cannot receive a discharge under Chapter 7 if you received a discharge in a Chapter 7 or Chapter 11 bankruptcy which was filed within 8 years before the present case is filed.
6 Years Prior to Bankruptcy Filed
Chapter 7 discharge prevented by prior filing- You cannot receive a discharge under Chapter 7 if you received a discharge in a Chapter 12 or Chapter 13 bankruptcy which was filed within 6 years before the present case is filed.
4 Years Prior to Bankruptcy Filed
Chapter 13 discharge prevented by prior filing- You cannot receive a discharge under Chapter 13 if you received a discharge in a Chapter 7, Chapter 11, or Chapter 12 bankruptcy which was filed within 4 years before the present case is filed.
Note: In certain circumstances, there may be a great benefit to file for Chapter 13 even if you cannot receive a discharge.
3 Years Prior to Bankruptcy Filed
Taxes due not discharged in Chapter 7- Taxes on income or gross receipts for which a return was due within 3 years prior to the filing of the bankruptcy petition are not discharged in Chapter 7. The "date due" includes any extensions (i.e., if the April 15 deadline for income tax is extended to October 15, the later date is used to determine whether the 3 year period has passed).
Penalties for non-discharged taxes (discussed above), tax penalties regarding a transaction within 3 years of filing, and government fines and forfeitures are not discharged.
Similarly, debts incurred to pay non-discharged taxes are not discharged.
2 Years Prior to Bankruptcy Filed
Prior Chapter 13 discharge prevents Chapter 13 discharge- You cannot receive a discharge under Chapter 13 if you received a discharge in a Chapter 13 case which was filed within 2 years before the present case is filed.
Note: In certain circumstances, there may be a great benefit to file for Chapter 13 even if you cannot receive a discharge.
Taxes on late or not filed returns are not discharged in Chapter 7- Taxes for which a return was not filed or was filed late within 2 years of the filing date are not discharged in Chapter 7.
Penalties for taxes not discharged (discussed above), are not discharged.
Similarly, debt incurred to pay non-discharged taxes are not discharged.
Transfers and obligations to hinder, delay, or defraud creditors, or done while insolvent can be set aside- The Trustee may recover/avoid property that was transferred and obligations incurred within 2 years before the bankruptcy, if the transfer or obligation was undertaken with the intent to hinder, delay, or defraud any entity, or when you were insolvent.
1 Year Prior to Bankruptcy Filed
Chapter 7 discharge prevented by the transfer, concealment, or destruction of property- The bankruptcy court may deny a discharge of all debt if you attempted to hinder, delay, or defraud a creditor through the transfer, removal, destruction, mutilation, or concealment of property within one year prior to filing for Chapter 7 relief.
Payments to a relative or insider may be avoided as a Preference- A total of $600 or more in money or property which is paid to a creditor that is a relative or insider (certain business associates) within one year prior to filing is a preference and may be avoided and recovered by the trustee for pro rata distribution to creditors.
240 Days Prior to Bankruptcy Filed
Assessed taxes not discharged in Chapter 7- Taxes assessed within 240 days prior to the filing of a Chapter 7 petition are not discharged. If an offer to compromise was pending, the 240 days will be extended by the number of days that it was pending, plus 30 days. If a stay against collections as in effect under a prior bankruptcy, the 240 days will be extended for the time collection was stayed plus 90 days.
Penalties on taxes non-discharged taxes are likewise not discharged.
Similarly, debt incurred to pay non-discharged taxes are not discharged.
180 Days Prior to Bankruptcy Filed
Dismissal of prior bankruptcy prevents filing Chapter 7 and Chapter 13- You may not file for Chapter 7 or Chapter 13 relief if you filed a previous bankruptcy which was dismissed in the preceding 180 days either (1) on the court's order because of your wilful failure to obey orders of the court or to appear in court when required; or (2) on your request after the filing of a request by a creditor for relief from the automatic stay.
90 Days Prior to Bankruptcy Filed
Minimum state residency requirement- You must have resided in the state where the bankruptcy is filed for the 90 days preceding the filing. If you have not resided in the state that long, you must file in the state where you resided or had your principal place of business or the location of your principal assets for the majority of the last 180 days.
Payments to creditors may be avoided as a Preference- A total of $600 or more in money or property paid to a creditor within 90 days prior to filing is a Preference. The Trustee may avoid and recover all preferences for pro rata distribution to all creditors.
Consumer debt presumed to be nondischargeable- Consumer debts owed to a single creditor that aggregate more than $500 for luxury goods or services incurred by an individual debtor on or within 90 days before the bankruptcy is filed are presumed to be nondischargeable in Chapter 7.
70 Days Prior to Bankruptcy Filed
Cash advances presumed nondischargeable- Cash advances aggregating more than $750 that are extensions of consumer credit under an open ended credit plan and obtained by an individual on or within 70 days before the bankruptcy are presumed nondischargeable.
Bankruptcy Filed
Commencement of Case- A voluntary bankruptcy is commenced with the filing of a petition with the Bankruptcy Court requesting protection from creditors. Spouses may file one petition together and commence a joint case.
Filing the bankruptcy also puts the automatic stay into effect which prohibits your creditors from continuing collection actions, unless they seek and receive relief from the stay.
Free Consultation
If you are considering filing for bankruptcy or would like additional information, contact The Gorski Firm, APC in Long Beach at (562) 206-0025 or our Bakersfield office at (661) 952-9740 for a free consultation.