Dixon Law Corporation

Chapter 7 Bankruptcy is a process that will eliminate your personal liability for unsecured debts such as credit card debt, medical bills. unsecured lines of credit and debt from foreclosures and auto repossessions.  If certain rules are met, past due federal and state income taxes can be discharged in a Chapter 7 Bankruptcy.  In some limited cases, student loans can be discharged in a Chapter 7 Bankruptcy.  If you own a home, Chapter 7 Bankruptcy will not affect your mortgage loans.  You will be able to keep you home during and after the filing of a Chapter 7 Bankruptcy as long as you are making your monthly mortgage payments. … [Read More]

When you file Chapter 7 Banktuptcy you do not have to lose equity in your home.  Equity in your home can be protected according to Homestead exemption availabile in Bankruptcy per Calfiornia Code of Civil Procedure § 704.730 in the following amounts:

• $75,000:  Basic homestead for single person
• $100,000:  Head of household
• $175,000:  Over 65 or physically disabled or under 55 with less than $15,000 in annual income ($20,000 if married).

In a Chapter 13 Bankruptcy the same amounts apply and any additional amount of home equity can be protected with the correct formulation of a Chapter 13 Plan.

Chapter 13 Bankruptcy will allow you to repay your past due mortgage payments and save your home from foreclosure.  Chapter 13 Bankruptcy will also allow you to discharge your debts and keep equity in your home or other assets.  In some cases, you may need to file a Chapter 13 Bankruptcy if you make too much money to file a Chapter 7 Bankruptcy case.  In a Chapter 13 Bankruptcy, you will need to make a monthly payment to the Chapter 13 Trustee.  The amount of the payment depends on several factors that we will calculate for you as part of the Chapter 13 Bankruptcy consultation.  The important thing to remember is that you are not automatically obligated to pay 100% of your unsecured debts back in a Chapter 13 Bankruptcy.  Many of our clients pay 0% to 25% to their unsecured creditors in their Chapter 13 Bankruptcy case. 1.  If you are past due on your mortgage or car loans then your monthly payment will need to be an amount at least equal to pay back the past due amounts over 3 or 5 years. 2.  If you have equity in your home or amounts in bank accounts or other assets that exceed the applicable exemption amounts, your Chapter 13 payment will depend on the amount of your unsecured debts. 3.  If are not behind on your mortgage payments and if you do not have any non-exempt assets then your monthly Chapter 13 Trustee payment will depend on how much you can afford to pay based on your monthly budget and the government income and expense guidelines. … [Read More]

The selection of a new business entity is very important.  The entity you choose may have significant tax and legal implications.  For example, a limited liability company (LLC) may result in more taxes to its members than shareholders of an S-Corporation would pay.  We take the time to consult with our clients to determine the best entity for them.  Over the years, we have had to convert several clients from one entity type to another because the time was not taken on the front end to determine the best legal and tax structure.  We work in conjunction with our client's tax advisors to make sure the correct entity structure is selected. … [Read More]