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Michael Salanick

Michael Salanick’s Answers

429 total

  • California automatic homestead exemption

    My aunt owns a home in Calif for the last 10 years. She had to go into the hospital and then involuntarily into an assisted living facility for the last year . She wants to return to her residence when able and she will pay for a nurse ...

    Michael’s Answer

    If the home is her primary residence and she lives there now (...or intends to return after assisted living), then a homestead may be recorded and/or claimed in a bankruptcy case.

    If your aunt wishes to keep her home and avoid foreclosure, then bankruptcy may be a strong option depending on a few additional factors that must be considered and analyzed.

    Bottom line: You are wisest to seek professional help and legal advice sooner rather than later.

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  • Are there salary limits for filing bk in California? I assume you have to meet certain requirements.

    Husband was out of work 7 years (recession) started working March 2015 at a 50% cut in pay. We have $30K in credit card debt were struggling to pay on with plans set up by the credit card co. or collection agencies, I'm not sure. This debt is pa...

    Michael’s Answer

    Not necessarily an income limitation. The law permits certain bankruptcy filers to avoid means test income analysis under certain conditions. However, even if required to complete the means test, a full detailed analysis of income and expenses (household size...etc etc.) must be considered and analyzed for a complete and accurate picture.

    Anyone telling you that you cannot file chapter 7 bankruptcy based on your income being too high may be accustom to cutting corners, and perhaps you should seek a second (or third ...) opinion.

    As a law firm, we have clients successfully filing chapter 7 bankruptcy cases with high household income ($100k+) , both for families and individuals.

    Bottom line: don't stop your bankruptcy analysis at annual income; find an experienced and dedicated bankruptcy lawyer that will look out for your best interests and offer a more complete analysis about your case.

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  • Can i include my gambling losses t in my bankruptcy?

    I took 3 personal loans late last year and lost all to gambling. I did some cash advances too on my credit card. Is it possible to file bk chapter 7?i have 45000 annual income family of four.

    Michael’s Answer

    Possible to discharge, however; cash advances and gambling debt in particular should be addressed in a particular way in your bankruptcy case. If you have made no attempt to repay the loans/cash advances thus far, you may also be well advised to enter a recovery program such as Gamblers Anonymous pre-bankruptcy filing.

    Bottom line: be sure to seek professional legal representstion to assist with your bankruptcy case.

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  • Where do I start to file bankruptcy? Also if I want to file for.divorce should I wait till the bankruptcy is done?

    My husband and I have about $20,000 in credit card debt. We have a car loan for a 2012 toyota camry, we do not own a home, we own a 2005 Chrysler Town and Country that is not worth anything . We have no savings and we both work. I am only making a...

    Michael’s Answer

    You have provided some good information here already. Still, when considering filing bankruptcy AND divorce, certainly there is not a one-size fits all approach.

    You would be best off getting specific analysis related to many factors before choosing which approach to take: Bankruptcy first? Filing together or separate? Or divorce first?

    Is your relationship with your spouse amicable now? Does he also wish to file bankruptcy? Is he aware of the divorce situation as well?

    Bottom line: Take a consultation with a competent and experienced bankruptcy lawyer to help sort through your options. After a few calls to trusted bankruptcy professionals, you should have peace of mind knowing what path to pursue and who to help you along that journey. Best of luck

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  • Should I declare bk if there is a judgement and notice of levy, given I don't have the means to pay?

    $25,000, own a home, not much else.

    Michael’s Answer

    Take a consultation to determine if filing chapter 7 makes sense or not. Essential to the analysis will be your home equity (if any) and whether the judgment lien (if recorded pre petition by judgment creditor ...) may be avoided. Multiple other factors to consider as well before knowing which alternative may serve your needs best, or if filing for bankruptcy protection and relief is even a strong option for your particular situation (assets, income/expenses, exemptions, etc etc etc).

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  • How can I obtain the title to my car after Chapter 7 bankruptcy Discharge?

    My Chapter 7 Bankruptcy was discharged in May of 2015. The full amount of my auto loan was also discharged. The car lender listed on my resent credit report under status: " Discharged through bankruptcy Chapter 7/ Never late. And Recent balance r...

    Michael’s Answer

    Pay off the loan to recover title.

    Your discharge (only) stops a creditor/auto lender from suing you if you fall behind on payments. The discharge does not award you with a free vehicle. The auto lender maintains its lien against the vehicle - the lien secured by the auto loan documents. As a rule, liens survive bankruptcy.

    Bottom line: If you fail to make payments your car can be repossessed by the auto lender. You cannot simply walk away with the car now that you received a discharge in your case.

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  • When filing Ch 13 BK can I include arrearage in the total owed to my 1st lien (arrearage + unpaid balance)

    Hoping to wipe my second mortgage by showing the total amount owed is more than the house is worth. I am significantly behind and my arrearage is over $300,000. Including it in the total owed to my first and second will take me just over the home...

    Michael’s Answer

    Include arrears and unpaid principle balance and fees/costs when addressing each lienholder in your chapter 13 case.

    Motions to strip liens and treat as unsecured debt are not simple and frequently (even) bankruptcy attorneys run into challenges when attempting this, from correct service on lienholders to proving current fair market value, etc.

    You would be wise to consult with and seek representation from a competent bankruptcy lawyer. Do it yourself chapter 13 cases don't save you very much in the long run, particularly since a portion of attorney fees may be included in your case and paid over time.

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  • After a corporate chapter 7 bankruptcy do I still need to file a dissolution form with the secretary of state in california?

    The bankruptcy dissolved the corporation but I wonder if I need to file the paper with the state.

    Michael’s Answer

    Depends on corporation's intention whether to shut down corporation or remaining operating.

    A corporate chapter 7 does not dissolve the corporation, without more follow through. While a corporate chapter 7 wraps up the asset-liability elements of the business, oftentimes satisfying requirement to disclose asset value /creditor claims via no assets distributed, a corporate chapter 7 does not discharge corporate liability and it does not effectively shut down the corporation unless formally doing so with the CA Secretary of State.

    Hope that helps. Best if luck

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  • If a CCP 704.140 was filed can trustee continue to proceed with settling debtor's civil lawsuit?

    An amendment to original ch. 7 was filed changing the original CCP code to CCP 704.140. Can the trustee continue to negotiate a settlement with debtor's opposing counsel in her civil lawsuit or does trustee first have to address the CCP 704.140? A...

    Michael’s Answer

    Chapter 7 trustee's maintain control of assets of the bankruptcy estate in so far as the case has been filed as a Chapter 7 proceeding ( rather than a chapter 13 bankruptcy and or conversion to chapter 13 bankruptcy, wherein debtors maintain control of bankruptcy estate assets as "debtors in possession").

    Exemption planning is a separate issue that relates to certain amounts/value of assets that may be protected in either a Chapter 7 or Chapter 13 bankruptcy proceeding, for instance.

    In your scenario, the Chapter 7 trustee is charged with the task of administering any bankruptcy estate assets, including pending lawsuits that may either be abandoned, litigated, or settled; any exemptions you have applied to the lawsuit asset may still be received by the debtor claiming exempt values in the lawsuit asset, in this example.

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  • Hi, my bk lawyer is about to file chapter 7 for me I was wondering if I could trade in my car that's paid off for a newer model

    My current car is paid off , I would be financing the new on, I just don't want to affect the bk

    Michael’s Answer

    It depends on a variety of factors in your particular situation - there is no cookie-cutter, one-size fits all answer to apply to this situation. Generally speaking, a lawyer should of not advise you to incur new debt when on the verge to the filing of your bankruptcy case; however, certain reasons may exist (and also may be permissible) where your interests would be best served to obtain vehicle financing before filing your bankruptcy case.

    In an ideal scenario, your lawyer is the person advising you, and they will understand these nuances and capable of advising you to your satisfaction.

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