Are Bifurcated Chapter 7s Actually Legal? [Part 1 of 2]

Bankruptcy Law Success

If you've ever wondered if bifurcated Chapter 7s are actually legal or not, this is the episode for you. The surprising truth is that after a tidal wave of legal innovation, many bankruptcy lawyers routinely offer zero down Chapter 7s. You just have to follow the arcane rules involving bifurcating your cases into prepetition and postpetition portions. And as it turns out, no judge has ever ruled that a Chapter 7 cannot be bifurcated, so long as it's done correctly. This is part 1 of a 2-part episode, where we start by busting the top three bifurcation myths, including: 1. Why bifurcated Chapter 7s do NOT violate the automatic stay or discharge injunction, even though you're collecting money postpetition from debtors 2. How "saddling" poor debtors with a postpetition payment plan for a bifurcated bankruptcy is way better than the alternative of no traditional bankruptcy at all 3. Why it's a total myth that there are many US Trustee enforcement actions that prove that bifurcated Chapter 7s are illegal I also go over the 5 specific mistakes you need to avoid in order to get into hot water with the US Trustee. Finally, if you'd like to get my Bifurcation Case Law Summary for free, you can sign up here: https://bklawsuccess.com/caselaw/