Tag Archives: Chapter 7

Chapter 7 Discharges Decrease by 21%

Chapter 7 discharges decreased by 21% in June 2013 when compared to the same four-week period of 2012.  California lead the way with a four digit decrease with 14,826 discharges in 2012 compared to 10,651 last month.  Louisiana saw the fewest decreases with less than 10.
Gather your own statistics by using our online robust Resource Center.
CHAP 7 DISCH COMPARISON JUL 10Please note:  Our data is based on one per household and has been cleansed to postal specifications.

Chapter 7 Discharges Down YTD

Year to date Chapter 7 Discharges* are down 19.6% in 2013 compared to the same time frame in 2012.  The largest drop based on percentage took place in Alaska, with 42.5% decrease.  Still, the largest number of Chapter 7 Discharges are found in California.  Though down 28% from last year, 50,284 were processed so far this year (through May) compared to the second highest activity in Florida with 23,675 discharges.
CHAP 7 YTD MAY 12-12*(January – May)

Note:  Our data is based on one per household and has been cleaned to postal specifications.

Non-Exempt Exempt IRAs

Pension Jar

Bob Lawless blogged on Credit Slips about Non-exempt Exempt IRAs earlier this week.  Highlights include:

  • Some chapter 7 trustees have found a problem that could affect thousands of IRAs.
  • The Bankruptcy Code clearly exempts IRAs but only does so if the IRA qualifies for a tax-favored treatment.
  • Some chapter 7 trustees have challenged IRAs on the theory that the possibility of a lien could arise means an IRA is not tax favored.
  • Its is the technicality of all technicalities to say an IRA is not exempt because of the possibility that a lien could arise.

Read the entire article by clicking here.