How can I amend a bankruptcy petition?

Q: What are the two situations in which a court might dismiss a Chapter 7 filing?

A court may dismiss a Chapter 7 filing if the debtor fails the means test, which assesses income and expenses to determine eligibility, or if the debtor has committed fraud, such as hiding assets or providing false information. In either case, the court may reject the bankruptcy petition.

Q: Under what circumstances might the court reject a debtor's Chapter 7 plan?

A court may reject a Chapter 7 plan if it finds that the plan does not comply with bankruptcy laws, if the debtor fails to disclose all required information, or if the plan is deemed not feasible. Additionally, if the debtor has committed fraud or has not made required payments, the court may also reject the plan.

Full question:

I AM FILING CHAPTER 7. MY OLD HOUSE WAS REPOSSESSED AND SOLD IN AUCTION IN JULY 08.OTHER THAN MY OLD CAR THIS WAS THE ONLY REAL PROPERTY. A FED TAX LIEN WAS PLACED ON THE HOUSE ON 3-08. HOW AND WHAT SCHEDULES DO I PLACE THIS INFO.TAX LIEN WAS 27 K ANOTHER 7 K WAS ADDED LATER AND IS NOT PART OF THE LIEN .THE HOUSE AMOUNT OF LOAN WAS 525 K, CREDIT REPORT SHOWS IT AS 576 K. THE HOUSE WAS IN WA .STATE.THE ASSESSORS SHOWS FORCED SALE/DEED OF TRUST WAS THE INSTRUMENT. ASSESSORS OFFICE SHOWS IT WAS SOLD FOR 425 K. IN ADDITION WIFE LEGALLY SEPARATED AND HAS FILED CHAPTER 7, SHE HAS TO REOPEN HER CASE TO ADD THIS INFO ALSO.

Category: Bankruptcy
Date: 04/07/2025
State: California

Answer:

When someone files a motion to amend the bankruptcy petition, a court date will be set to meet with the trustee regarding the modifications. The modifications should be clearly explained. This makes it easier for the trustee to understand, and more likely he or she will approve the amendments. Some of the forms that may be affected include:
Schedule D - Creditors Holding Secured Claims
Schedule E - Creditors Holding Unsecured Priority Claims
Schedule F - Creditors Holding Unsecured Nonpriority Claims
Statement of Financial affairs- This form must be completed by every debtor. Some of the information you are required to list is as follows: Income from employment or the operation of a business; income you received other than from employment or the operation of a business; payments to creditors; suits and administrative proceedings; repossessions and foreclosures; and assignments and receiverships.

I cannot provide legal advice on particular filing requirements in an individual situation, as it will depend on all the facts involved and will ultimately be a decision for the trustee. Under some circumstances, once the bankruptcy proceedings have started, special motion can be filed to remove certain liens. It will take a bankruptcy court order to remove them. This is a complicated area of the bankruptcy law and an attorney should be consulted.

Please see the information at the following links:

http://www.bankruptcylawnetwork.com/2007/09/25/bankruptcy-in-florida-removing-a-judgment-lien/
http://definitions.uslegal.com/b/bankruptcy-chapter-7/
http://definitions.uslegal.com/b/bankrutpcy-official-forms/
http://definitions.uslegal.com/l/liens/
http://definitions.uslegal.com/t/tax-lien-certificate/
http://lawdigest.uslegal.com/bankruptcy/general/
http://definitions.uslegal.com/s/security-interest/
http://definitions.uslegal.com/p/priority/

Please see the forms at the following links:

http://www.uslegalforms.com/bankruptcy/california-bankruptcy-forms.htm
http://www.uslegalforms.com/ca/CA-BANKR-4.htm

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens to liens in Chapter 7?

In Chapter 7 bankruptcy, secured liens, such as mortgages or tax liens, remain attached to the property. While bankruptcy can eliminate personal liability for the debt, it does not remove the lien itself. The creditor can still pursue the property if the debt is not paid. If the property is sold, the lien must be satisfied from the sale proceeds before any remaining funds can go to the debtor.

Do federal tax liens ever expire?

Federal tax liens do not automatically expire. They remain in effect until the tax debt is paid, the lien is released, or the IRS discharges the lien. However, if the IRS does not take action to collect the debt within 10 years from the date of assessment, the lien may become unenforceable. It's important to consult a tax professional for specific situations.

What are the two situations in which a court might dismiss a Chapter 7 filing?

Under what circumstances might the court reject a debtor's Chapter 7 plan?

What would disqualify you from Chapter 7?

Disqualifications from Chapter 7 bankruptcy can include failing the means test, which compares your income to the state median, or having previously filed for bankruptcy and received a discharge within a certain timeframe. Additionally, if you have committed fraud or failed to complete required credit counseling, you may be disqualified.