Bankruptcy Basics - Part 3: Limits of Bankruptcy | Central District of California (2024)

FAQs

What is the 2 4 6 8 rule in bankruptcy? ›

The 2-4-6-8 Rule of Filing Bankruptcy Again

Two Years – Two years between a prior Chapter 13 bankruptcy case and a new Chapter 13 Case. Four Years – Four years between a prior Chapter 7 bankruptcy case and a new Chapter 13 case. Six Years – Six years between a prior Chapter 13 bankruptcy case and a new Chapter 13 case.

Debts not discharged include debts for alimony and child support, certain taxes, debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit, debts for willful and malicious injury by the debtor to another entity or to the property of another entity, debts for death or personal ...

Common Equity Shareholders.

Common equity shareholders often receive the lowest level of priority.

Rule 37 authorizes the court to direct that parties or attorneys who fail to participate in good faith in the discovery process pay the expenses, including attorney's fees, incurred by other parties as a result of that failure.

applies in adversary proceedings and the court may enter a judgment divesting the title of any party and vesting title in others whenever the real or personal property involved is within the jurisdiction of the court.

Perhaps the most common debts that cannot be discharged under any circ*mstances are child support, back taxes, and alimony.

The most common types of nondischargeable debts are certain types of tax claims, debts not set forth by the debtor on the lists and schedules the debtor must file with the court, debts for spousal or child support or alimony, debts for willful and malicious injuries to person or property, debts to governmental units ...

You can wipe out or discharge tax debt by filing Chapter 7 bankruptcy only if all of the following conditions are met: The debt is federal or state income tax debt. Other taxes, such as fraud penalties or payroll taxes, cannot be eliminated through bankruptcy.

The Absolute Priority Rule, as outlined in Section 1129(b)(2) of the Bankruptcy Code, plays a crucial role in Chapter 11 bankruptcy cases. It stipulates that claims of a higher priority must be paid in full before lower priority claims can receive any recovery.

Is it better to file a Chapter 7 or 13? ›

Or somewhat more accurately, Chapter 13 can give you more power over and flexibility with certain kinds of creditors, and if you have non-exempt assets. However, if you do not have those kinds of debt or assets, or not much in terms of tangible assets, then Chapter 7 would likely be the faster and easier option.

The discharge received by an individual debtor in a Chapter 11 case discharges the debtor from all pre-confirmation debts except those that would not be dischargeable in a Chapter 7 case filed by the same debtor.