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Last Entry: November 20, 2009 at 02:16:49

Hiring the Right Bankruptcy Lawyer: Priceless

Posted on November 20, 2009
In my small state of Rhode Island, there are 5,878 licensed attorneys. RI only has a population of 1,050,788 people. That is one lawyer for every 178 people. Because each attorney is licensed in the general practice of law, he can represent just about any matter that comes through the door...

New York Bankruptcy Lawyer Says Not To File For Bankruptcy

Posted on November 19, 2009
What I’m about to say borders on heresy, and I’m pretty sure I’m going to get flamed by my colleagues and friends for saying it. I’m willing to take the risk, and I invite everyone to submit their comments to this post to let me know what they think...

Free Health Clinic Events Are The New Rock Concert

Posted on November 19, 2009
Medical problems, even when you have insurance, are an increasingly large cause of bankruptcy cases. Some groups are trying to help folks with poor or non-existent coverage to get care. The events are being set-up — and attended — like rock concerts...

I?m Having Trouble Making My Chapter 13 Payments?Is Converting To A Chapter 7 An Option?

Posted on November 19, 2009
A chapter 13 case can last from several months to several years (but no more than five years). Over this amount of time, things can change–jobs can change, expenses can change, any number of things can change. Because of this, it is not unusual for folks who are in a chapter 13 plan to experience difficulty [...

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Breathe!

Posted on November 18, 2009
Sounds like a silly command doesn’t it? But by breathing you can calm your mind and elevate your mood. In fact Dr. Weil states; “Practicing regular, mindful breathing can be calming and energizing and can even help with stress-related health problems ranging from panic attacks to digestive disorders...

13 Reasons To File A Chapter 13 Bankruptcy

Posted on November 17, 2009
13 Reasons To File A Chapter 13 Bankruptcy I f you are considering filing a bankruptcy, the best advice I can give you is to discuss your financial situation with a competent bankruptcy attorney. She will tell you that for most consumers, there are often two options: file a Chapter 7 or a Chapter 13 bankruptcy...

Who Not To Add As A Friend on Facebook.

Posted on November 17, 2009
In today’s Internet world social media is all the rage. Facebook, Twitter, Linkedin, etc… are all sites where you can find old friends, colleagues, and your bankruptcy attorney, judge and/or trustee. If you are in bankruptcy you might be excited to find your trustee, attorney and/or judge on Facebook and request that they be your [...

Bankruptcy Bill Announces Bankruptcy Song Contest!

Posted on November 16, 2009
I don’t mean to alarm you, but the folks at Bankruptcy Bill have organized what appears to be the first ever Bankruptcy Song Contest. So whether you’re a debtor, a creditor, a bankruptcy lawyer or a “Bankruptcy Lover,” here’s your chance to express yourself through song...

#1 Must the Non-Filing Spouse?s Information Be Disclosed?

Posted on November 16, 2009
#1 ?Must the Non-Filing Spouse’s Information Be Disclosed? This continues the series ?I’m Filing, My Spouse Isn’t-What Happens?? The series is introduced here. Let’s start by remembering the context of a review of a bankruptcy petition by angry creditors or the United States Trustee’s office, for example...

Timeshares: A Liftetime Of Debt ? Not An Investment

Posted on November 16, 2009
It is nearly impossible to sell many timeshares. So what do you do if you can’t pay the timeshare payments and/or the timeshare maintenance fees? First, try to sell it. Even if you loose money, getting out from under the loan payments and fees may be wise...

Fix a Fraudulent Transfer Problem by Transferring it Back

Posted on November 16, 2009
It’s a story which would make any bankruptcy lawyer cringe: “I deeded my cabin to my brother so I couldn’t lose it to my creditors. My cousin’s girlfriend’s lawyer told me on the phone that would be a good move.” Ouch! As bankruptcy lawyers know, judgment creditors can reverse fraudulent transfers, negating the utility of this manuever...

Bank refuses to break $100 bill into smaller bills!

Posted on November 16, 2009
Unless you are a customer of the bank, Houston bank First Bank in Houston refuses to break a $100.00 bill into smaller bills. My son experienced this recently when he needed to pay someone in exact cash and only had a $100.00 bill. What are banks thinking? I could understand if it was a check, but [...

Official Bankruptcy Secret

Posted on November 15, 2009
Bankruptcy has an official secrets law and it is contained in §526 of the bankruptcy code. A lawyer can not advise a client to take out a new loan before filing bankruptcy. The Bankruptcy Abuse and Consumer Protection Act of 2005 includes this rule and I am going to break it legally...

$75 Billion HAMP Program: Homeowners and Taxpayers Duped?

Posted on November 15, 2009
Bankruptcy lawyers have grown accustomed to hearing alarming stories from clients about so-called mortgage loan modifications which never seem to be finalized: homeowners being strung along by disingenuous mortgage company reps until foreclosure, “trial modifications,” unreturned phone calls, never ending requests for documents, never getting the same mortgage company rep on the phone twice, being asked for the [...

Video: 6 Chapters of Bankruptcy

Posted on November 15, 2009

Video: Not All Debts Discharged in Bankruptcy

Posted on November 15, 2009
student loan law changes debts arising from a divorce order creditors not notified of the bankruptcy student loans you may not discharge all your debt payroll taxes, the loan that lives forever

Who Decides About Reaffirming a Mortgage

Posted on November 14, 2009
Much has been written on this blog about “reaffirmation” – the process by which a Chapter 7 debtor formally and in writing agrees to opt out of the protections inherent to a bankruptcy discharge and assume again contractual liability for secured (or unsecured) debts like mortgages and vehicle loans...

Fed Shuts Down Orion Bank ? 122 And Counting

Posted on November 14, 2009
On Friday the thirteenth, the Fed shut down Orion Bank. The Orion Bank closing constitutes the 122nd bank failure this year. Orion owns a branch across the street from my office. I would like to say that this was shocking, but it wasn’t. For years, my clients have been filing for bankruptcy on loans [...

Discharge or Dismissal Whats the Difference

Posted on November 13, 2009
Discharge in bankruptcy is good. Dismissal is generally bad. Discharge is what most debtors seek when filing their bankruptcy. Dismissal is what a debtor is generally trying to avoid. The discharge is the injunction granted by the bankruptcy court that keeps the creditors from enforcing their rights to collects personally on the debt...

Credit Cards, Cab Drivers And The Economy ?

Posted on November 12, 2009
New York City has noticed the percentage of people paying cab drivers with a credit cards has risen dramatically in the past two years. The question is whether the use of credit cards has risen for convenience purposes or because of the economy? Other cities have been slow on the take, and they have not [...

Should the business file bankruptcy

Posted on November 10, 2009
The first question for a business owner considering bankruptcy is: do you have the time, energy, and desire to continue the business? (Read the other four questions for struggling businesses). Entrepreneurs are the most optimistic, hard working, and determined individuals in the world...

How Much Did The Health Care Debate Cost This Week?

Posted on November 10, 2009
The headlines yesterday all carried the same story. The Health Care Bill passed by the House of Representatives died. Life support cannot save this Bill. So, why did our elected officials go through the motions knowing that the Bill did not have a chance of passing in the Senate? Do you think they already knew [...

What Is A Pay Advice?

Posted on November 09, 2009
What is a Pay Advice? A pay advice is any document that provides written evidence of your income. The most obvious example of a pay advice is a pay stub, but a pay advice can also be a printout of your income and withholding from your employer. In fact, more and more often I will have clients [...

What to Expect at Your §341 Meeting

Posted on November 09, 2009
The §341 Meeting, also called the meeting of creditors, is a meeting that takes place around 20 to 40 days after your bankruptcy case is filed. At this meeting the case trustee assigned to your case, and any creditors who wish to attend, will be present...

Procedure For Enforcing The Bankruptcy Discharge In New York

Posted on November 09, 2009
A typical bankruptcy case in New York results in the issuance of a Discharge of Debtor, which releases the debtor from all collection activities in connection with a discharged debt. Many New York bankruptcy lawyers believe that the only way procedurally to enforce the discharge injunction is by filing an adversary proceeding...

South Carolina Bankruptcy Lawyer Unleashes Vulcan Intellect on the Hanging Paragraph

Posted on November 09, 2009
In a move that shocked and amazed the South Carolina bankruptcy community, attorney Dennis Toney of Charleston scored a big victory for his clients by successfully challenging the application of the 910-day rule. Toney?s keen analysis has led some to question whether Toney is part Vulcan, or 100% human as previously thought...

Mortgage Payments Now Inside the Plan for the Eastern District of North Carolina

Posted on November 08, 2009
This week, the United States Bankruptcy Court for the Eastern District of North Carolina entered an order mandating that mortgage payments will now be made through the debtors’ chapter 13 plan. These are often called “conduit” plans because the chapter 13 trustee acts as a conduit for the mortgage servicer and collects payments on the [...

What does a Chapter 7 Flowchart Look Like?

Posted on November 08, 2009
There are thousands of bankruptcy attorneys out there throughout the United States practicing bankruptcy law. While each may run his or her practice a little differently than the others, they are all still bound by the same federal laws found under Title 11 of the US Code...

Some Assets Are More Protected Than Others: Bankruptcy Exemptions

Posted on November 07, 2009
As unemployment rates continue to rise, it is a good idea to try to bunker down and prepare for the worst so you can ride out the storm if you find yourself among the unemployed, or facing a pay cut. There was some good advice in an article in the Wall Street Journal on November [...

Payoff High Interest Credit Cards In 7 Easy Steps

Posted on November 06, 2009
Here are seven easy steps to pay off high interest rate credit cards. In fact these tips show you how to eliminate high interest accounts entirely and how to perform simple regular maintenance adjustments to keep your credit accounts within reasonable limits...

Thinking Of Filing Bankruptcy? Don?t Give Anything Away.

Posted on November 06, 2009
Thinking Of Filing Bankruptcy? Don?t Give Anything Away. ?I?ll just give my car to my niece.? I can?t tell you how many times I?ve heard that or something similar from a client about to file bankruptcy. Sometimes the client has the best of intentions: ?she?s about to graduate college and I always promised her a car for [...

Bankruptcy and Security Clearances

Posted on November 04, 2009
So what happens to your security clearance if you file for bankruptcy protection? Is it revoked? Will you be terminated from your job? Will you be demoted? Does your salary decrease? While there are bankruptcy code provisions that regulate the public and private sector over discriminations in employment when one files for bankruptcy protection, most employers [...

National Association of Consumer Bankruptcy Attorneys Convention Tuscon

Posted on November 04, 2009
All my bags are packed. I’m ready to go. Got my code in hand and I’m leavin on a jet plane. Don’t know when I’m coming back. Tomorrow I leave for Tuscon and the start of another National Association of Consumer Bankruptcy Attorneys Convention...

Bankruptcy Bill and BAPCPA Man: Cartoons Come to Bankruptcy

Posted on November 02, 2009
When I think of Steven Horowitz and Gideon Kendall, I can?t help but think of the Reese?s Peanut Butter Cup. What a perfect combination. Horowitz, a New York City bankruptcy lawyer, and Kendall, a professional illustrator and fellow New Yorker, met years ago playing ultimate Frisbee in Brooklyn for a team called the F-Train...

Massachusetts Homestead Act Applies to Pre-Declaration Contracts

Posted on November 02, 2009
Any reader of the Massachusetts Homestead Act must conclude that it only protects homes from contracts incurred after the declaration is recorded. This is not true in the bankruptcy context. This reading was first confirmed by the Van Rye Massachusetts bankruptcy court decision in 1995...

Chapter 13 Bankruptcy Is Not A Death Sentence

Posted on November 01, 2009
Clients who fail the bankruptcy ?Means Test? and have to file a Chapter 13 bankruptcy case look at me as though they have been given a death sentence. I reassure them that Chapter 13 bankruptcy is not the end of the world. The fact of the matter is that they are almost always usually much [...

BLN Author Lauded by National Bankruptcy Group

Posted on November 01, 2009
Bankruptcy Law Network member and author, Craig Andresen of Bloomington, Minnesota, has been named Member of the Month for October 2009 by the National Association of Consumer Bankruptcy Attorneys. He is the tenth member of Bankruptcy Law Network to be recognized as member of the month for service to NACBA and the field of consumer bankruptcy [...

My Chapter 13 Bankruptcy Got Dismissed, What Do I DO?

Posted on November 01, 2009
If you have received a dismissal in your Chapter13 you should immediately be in touch with your bankruptcy lawyer to go over your options. The dismissal mean you have not completed your Chapter 13 and the court has dismissed your case. You are almost back in the same situation as you were before you filed bankruptcy...

Tithing as an Expense in Chapter 7 and Chapter 13: Past or Future?

Posted on October 31, 2009
Sections 707(b)(2) and 1325(b) of the bankruptcy code allow a chapter 7 or chapter 13 debtor to claim an expense for charitable contributions, including tithing to a religious organization. This has the possible effect of allowing a debtor to qualify more easily for chapter 7, or allowing a chapter 13 debtor to pay less money [...

Beware of Refinancing and Bankruptcy

Posted on October 31, 2009
Refinancing can be a fraudulent transfer in bankruptcy

Median Family Income For Louisiana Changes!

Posted on October 31, 2009
A change in the Median Family Income used to determine eligibility to file a bankruptcy changes on November 1, 2009. The Median Family Income for Louisiana beginning November 1, 2009 is as follows: One Person: $37,464.00 Two Persons: $48,287...

Is Church Tithing Allowed in Bankruptcy?

How Does A Chapter 13 Trustee Get Paid?

Posted on October 29, 2009
A Chapter 13 is a bankruptcy reorganization for individuals–a payment plan, in other words. The bankruptcy court appoints a trustee (there are standing trustees who serve that function in each district) and the trustee collects payments from debtors, and distributes that money to creditors...

Rhode Island Court Endorses Hybrid Plans

Posted on October 29, 2009
Rhode Island Bankruptcy Court gives key support to certain mortgage modifications.

Tell the Truth

Posted on October 29, 2009
Be sure to tell the truth, the whole truth and nothing but, when it comes to advising your attorney about your financial picture. When meeting or speaking with your attorney you will often be asked a number of questions. Each question asked by your attorney, is being asked because it is relevant to your bankruptcy case, [...

Individual Chapter 11 fact: You can always cram down your car

Posted on October 29, 2009
In Chapter 13, if you want to retain your vehicle, you cannot alter the principle amount owed on the vehicle if you bought it within 910 days of the filing of the bankruptcy petition. This is notoriously known as the ?hanging paragraph? of Bankruptcy Code § 1325(a)...

I Can?t Make It to My Creditors Meeting ? Now What Do I Do?

Posted on October 29, 2009
There really are few reasons which are good enough to justify rescheduling a bankruptcy meeting of creditors (or section 341(a) meeting). After all, the bankruptcy filing amounts to “making a federal case out of things,” and it just doesn’t seem right for the debtor to fail to make room in his or her schedule to [...

What are avoidance powers in bankruptcy?

Posted on October 29, 2009
Bankruptcy relief accomplishes three main goals: i) for the debtor, provides the necessary “breathing room” to propose a debt adjustment plan or reorganization plan; ii) for the debtor’s creditors, ensuring property of the estate (which includes wages earned post-petition) is distributed in accordance with priorities set forth under the Bankruptcy Code; and iii) preservation and [...

Tell the truth ? the whole truth ? and nothing but the truth

Posted on October 27, 2009
The point of filing a bankruptcy case is to get a discharge of your debts. The deal is simple. An honest debtor gets a fresh start. The price of the bargain? You have to let the trustee have all of your “non-exempt” assets. That means you have to tell the trustee about everything you have...

Debt Settlement Companies: More Misleading Ads

Posted on October 27, 2009
Bankruptcy lawyers can’t help but pay special attention to TV or radio ads aired on behalf of so-called “debt settlement” companies. Aside from the fact that such firms have frequently been the subject of federal or state regulatory investigations, their ads are often filled with misleading or questionable claims...

How has the Absolute Priority Rule changed in Chapter 11?

Posted on October 27, 2009
Previously, I discussed how one change to Chapter 11 of the Bankruptcy Code opened up the door for middle-class consumers to take advantage of the code in a way traditionally reserved only for the big boys. Honestly, I am still a neophyte in this realm of bankruptcy, but I have the good fortune to work with [...

Attacking Financial Problems With Timely Advice

Posted on October 27, 2009
We all handle medical problems differently. Go to any Emergency Room and you may wonder why the guy experiencing chest pains for the past week didn’t come in earlier and why the kid with the splinter is there at all. Financial problems are the same...

How can an Individual Chapter 11 be better and cheaper than Chapter 13?

Posted on October 27, 2009
Wow, my previous post on Individual Chapter 11 cases lit up my email! Well, I can understand the interest. How is Chapter 11 better than Chapter 13, and how could a Chapter 11 bankruptcy possibly be cheaper than a Chapter 13? According to Chapter 11 attorney Brett Mearkle, the first major difference between an Individual Chapter [...

Where Do I Mail My Chapter 13 Plan Payments? The Trustee is S. J. Beaulieu, Jr.

Posted on October 27, 2009
If you are in a Chapter 13 Plan in the Eastern District of Louisiana, which is the Bankruptcy Court for the Greater New Orleans area, the mailing address for the mailing of your Chapter 13 Plan payments has changed. You should now send your Chapter 13 Plan payments to: S...

Are Attorney Fees Still Recoverable in the 9th for Stay Violations?

Posted on October 26, 2009
On October 1, 2009, the Ninth Circuit Court of Appeals issued its decision in Sternberg v. Johnston, No. 07-16870 wherein it affirmed a stay violation under 11 USC 362, yet held that attorney fees were only recoverable related to enforcing the automatic stay and remedying the stay violation, and not in the litigation of damages...

Oregon?s ?Means Test? Median Income Figures Change November 1, 2009

Posted on October 26, 2009
Oregon residents will be affected by the new means test/median income numbers announced by the United States Trustee Program Department of Justice. The numbers are adjusted periodically by the U.S. Trustee Program and generally have a negative impact on those wishing to file a Chapter 7 bankruptcy.

I?m Filing, My Spouse Isn?t ? What Happens?

Posted on October 26, 2009
Usually, if a bankruptcy is necessary for one spouse, both spouses will file. Sometimes only one does — does it matter? What happens?This begins a 10-part series on some of the issues when only one spouse files. Issues to be covered include: Must the non-filing spouse’s information be disclosed? What if my spouse’s assets are separate — [...

A Judgment Has Been Filed Against Me?Is It Too Late To File Bankruptcy?

Posted on October 26, 2009
Absolutely not! Many people have expressed concern that if a judgment is entered against them in state (or federal) court, then they are stuck with that particular debt. In most instances, this is simply not the case. To understand what occurs, it is helpful to know how a judgment works against you...

Can I Keep One Of My Credit Cards When I File For Bankruptcy?

Posted on October 26, 2009
Can I keep one of my credit cards when I file for bankruptcy? A common question heard by bankruptcy attorneys and a common temptation. And understandable! In today’s world, it is almost impossible to rent a car or reserve a hotel room without a credit card...

Should My Schedule I Income Always Match my Means Test Income Numbers?

Posted on October 26, 2009
Although it has been in effect for several years, the median income/means test provisions of the Bankruptcy Code continue to confuse potential bankruptcy filers. In my Atlanta, Georgia bankruptcy practice, I regularly get questions from new clients about the two “budgets” that are filed in Chapter 7 and Chapter 13 cases...

Attorney-Client Privilege Not Eroded By Textron Case

Posted on October 25, 2009
attorney client privilege in bankruptcy applies

An individual Chapter 11 bankruptcy may be better for you than Chapter 13

Posted on October 25, 2009
In my 17 years of practicing bankruptcy law, I have never been as excited by anything as the development of the individual Chapter 11 case. Traditionally, Chapter 13 has been used for personal reorganizations while Chapter 11 has been reserved for more complex corporate reorganizations...

Should My Wife Stay Out of the Bankruptcy Case to Save Her Credit Rating?

Posted on October 25, 2009
This question comes up often in a bankruptcy lawyer’s office, and each time it does the answer is nearly always the same: no. Of course, this question could just as easily be asked the other way, should the husband refrain from joining in his wife’s bankruptcy? The question is based on the perception that the family [...

Does the Payment in my Chapter 13 Plan Ever Change?

Posted on October 24, 2009
As you may know the Bankruptcy Code provides that Chapter 13 plans must last at least three years but no more than five years. As a practical matter, most of the Chapter 13 plans I file in my Atlanta area bankruptcy practice end up as five year plans (this is because the disposable income calculations [...

I Am Jail, Can I Still File Bankruptcy?

Posted on October 23, 2009
If you are sitting in jail wondering if you can file bankruptcy then your search is over. The answer is yes if you otherwise qualify for bankruptcy relief under the code. Just because you are sitting behind bars does not prevent you from accessing the Bankruptcy Court...

What Is This Notice I Just Got From The Bankruptcy Court

Posted on October 23, 2009
You just filed a bankruptcy. You thought everything was under control. Now you got a letter from the bankruptcy court. Inside that letter is a notice from the court. This notice contains all sorts of important things and you should read it. What is in the notice? If you file a Chapter 7 Bankruptcy the [...

Unwritten exemptions benefit debtors

Posted on October 23, 2009
The law that defines what you can keep despite filing bankruptcy is found in law books, you’d think. There are two alternate sets of California exemptions in the Code of Civil Procedure. The state law exemptions, for instance, permit the debtor to keep $2550 in equity in vehicles, while the California bankruptcy exemptions allow $3300...

What Do I Do About Collection Calls and Letters AFTER I Filed Bankruptcy?

Posted on October 23, 2009
Most likely, your bankruptcy lawyer didn’t screw up. You see, even after getting a discharge in bankruptcy, it is possible that creditors will STILL harass you. However, before you get mad at your bankruptcy lawyer, understand its probably not his/her fault...

Even with Bankruptcy, Put the Skunk on the Table

Posted on October 22, 2009
Lawyers have a saying about trying a case: Put the skunk on the table. It means if you?ve got something really bad going on in your case, it?s best to just deal with it. Tell the judge or jury before the other side does so you can minimize the damage...

Exemptions in New York State

Posted on October 21, 2009
When filing bankruptcy, a client?s first question often involves whether or not they can keep things they own, like their home, their car, or their 401(k). These questions are important, and the answer to the question is two-fold: 1. Is there a lien against the property? 2...

What Types of Bankruptcy May I Chose?

Posted on October 21, 2009
frequently asked bankruptcy questions bankruptcy eligibility test changes November 1, 2009 converting from chapter 13 to chapter 7 I don’t qualify for chapter 13 chapter 13 may be your best option video: the six chapters of bankruptcy

California Homestead Amounts To Increase

Posted on October 21, 2009
California Homestead Amounts To Increase Governor Schwarzenegger signed into law new legislation that raises the amounts that can be claimed as a homestead in California. The law, Assembly Bill 1046 is one of several new pieces of California legislation aimed at protecting homeowners...

Another Unfavorable Decision in the Ninth BAP

Posted on October 20, 2009
Recently I posted a Blog on the unfavorable In re Martinez decision recently handed down by the Ninth Circuit BAP on October 5, 2009. Well, the Ninth Circuit BAP did it again that same day in another case with a slightly different twist in the Smith matter...

Average median income has decreased, according to United States Trustee

Posted on October 20, 2009
According to the United States Department of Justice, U.S. Trustee program, Americans make less money today than eight months ago. In order for bankruptcy practitioners to determine whether a person or couple qualifies for Chapter 7, we look to the latest median income figures periodically published by the U...

Can I Move Out-of-State While My Bankruptcy Is Going On?

Posted on October 19, 2009
Americans tend to move a lot. When the economy is in distress, folks often move out of state in search of work or lower cost of living. If you filed bankruptcy, do you have to stay put while the case is going on? Does your case have to move to another court? The answer is pretty [...

Bankruptcy Means Test: Unfavorable Decision in the Ninth BAP

Posted on October 19, 2009
On October 5th, 2009, the Ninth Circuit Bankruptcy Appellate Panel (BAP) published its decision in In re Martinez, wherein it concluded that debtors who strip junior liens off mortgages are not entitled to deduct those payments from the chapter 13 projected disposable income test...

Court Invalidates Foreclosure Sale for Defective Documents

Posted on October 18, 2009
Judge Long of the Massachusetts Land Court recently reaffirmed his groundbreaking May decision (Ibanez) invalidating a foreclosure sale due to a lack of properly-recorded proof of assignment. The assignment issue boiled down to this. Due to the bundling of mortgages for sale and trading on Wall Street, mortgages have been transfered more and [...

When Should I See a Bankruptcy Attorney

Posted on October 18, 2009
One day this week, I got so angry at my potential clients. I did not express this anger out loud, but I did want to reach across my desk and say YOU SHOULD HAVE COME HERE WEEKS OR MONTHS AGO. Three new clients, and all three of them, would have had much better options had [...

What is Bankruptcy?

Posted on October 18, 2009
What is bankruptcy? What a short video for an overview of bankruptcy. FAQ: bankruptcy basics Frequently asked questions about bankruptcy – part one Frequently asked questions about bankruptcy – part two Frequently asked questions about bankruptcy – part three Frequently asked questions about bankruptcy – part four

Modifying Co-Signed Secured Debt in Chapter 13? Be careful.

Posted on October 16, 2009
Chapter 13 bankruptcy provides a powerful tool — You can provide for special treatment of co-signed debt, allowing it to be paid more than other similar creditors. In this way, you can “protect” your co-signer from having to repay part or all of the debt you incurred with their help...

Living With Your Chapter 13 Plan

Posted on October 16, 2009
Chapter 13 Plans must be proposed to last a minimum of 36 months, and a maximum of 60 months. Three to five years is a long time! And a lot can change during that time. As plans are proposed and confirmed by the court based upon your set of circumstances at that time, it is possible that [...

Didn?t Put Lien on My Car Title, My Car is Free, Right?

Posted on October 16, 2009
Sometimes the bank forgets to file the paperwork to put a lien on a car’s certificate of title when they make a car loan. Does that mean you don’t owe the money? Or if you file bankruptcy, you get the car for free? Usually it’s not so simple...

Must You Have a Lawyer To File Bankruptcy?

Posted on October 16, 2009
Must You Have A Lawyer To File Bankruptcy? Certainly not! You have the absolute right to represent yourself. But, the better question is: ?Should you have a lawyer to file bankruptcy?? Let?s make a list of the pros and cons to have an attorney, starting with all of the reasons not to have one: 1...

My Bankruptcy 341 Meeting of Creditors Is Coming Up ? What Should I Expect?

Posted on October 15, 2009
You’ve filed bankruptcy and now your § 341 Creditors Meeting is coming up. What should you expect? Understandably, many people are apprehensive about their “court” appearance. Usually, in most consumer oriented bankruptcy cases, the § 341 Meeting of Creditors is not an ordeal...

Watch a Bankruptcy Meeting of Creditors

Posted on October 15, 2009
What will they ask me at my bankruptcy hearing?

What Happens if You Don?t Object to Bankruptcy Claim?

Posted on October 15, 2009
If a creditor files a proof of claim in a Bankruptcy Proceeding, it is deemed allowed unless you or another interested party objects. So what does “allowed” mean and what are its ramifications? An allowed claim can have significant repercussions...

Easy Bankruptcy: File In July

Posted on July 10, 2009
The easiest month to file bankruptcy is July. Consumers filing bankruptcy under Chapter 7 or Chapter 13 need to complete a Means Test of average income derived during the last six months. If you file in July, you need to look at your income during the first six months of the year - January through and including [...

Should You Withdraw Money From Your Pension To Pay Your Debts?

Posted on July 09, 2009
Thinking about filing bankruptcy? Wondering if you should just take money from your pension to pay debt? Don’t do it until you watch this video. LinkedTube If you liked that post, then try these...Chapter 15 and Bear Stearns by Brett Weiss, Maryland Bankruptcy AttorneyAutomatic Stay: The magic shield may not be automatic anymore...

What To Do When Creditors Are Calling While You Are In Chapter 13 Bankruptcy

Posted on July 08, 2009
In Chapter 13 bankruptcy, creditors are normally not allowed to call, write, bill, or otherwise contact you. You are protected by the automatic stay in your bankruptcy case. But if you see a creditor’s number come up on your caller ID, don’t ignore it...

Debtor With Unrelated Roommate Lived In ?Two-Person Household?; Roommate?s Income Not Counted in Means Test

Posted on July 07, 2009
A recent Minnesota bankruptcy court ruling makes it easier for persons with roommates to claim a two-person household, while simultaneously excluding the roommate’s income from use in the means test. This is important because in some cases, this can result in the debtor’s income being below the state’s median income for a two-person household, thereby relieving the [...

8th Circuit BAP Resolves Iowa Court Split on Tools of Trade

Posted on July 07, 2009
Iowa bankruptcy courts have been split for a decade over a simple question: Can a consumer exempt a motor vehicle under state law and strip a non-purchase money lien on the car as a tool of trade under bankruptcy law. That split was resolved in favor of consumers by the 8th Circuit Bankruptcy Appellate Panel [...

Should You File Bankruptcy If You Have No Assets?

Posted on July 07, 2009
Protection of your assets is one of the most important reasons to file for bankruptcy. Even if you don’t have any assets now, filing a Chapter 7 or Chapter 13 bankruptcy can protect your future assets. Under state laws, creditors can sue you and take your property, but most states have laws called “exemptions” that [...

Mortgage Loan Modifications Dropping

Posted on July 07, 2009
Mortgage loan modifications are dropping, according to a July 5, 2009 article in the New York Times, Alan M. White, an assistant professor at the Valparaiso University law school in Indiana, analyzed data on 3.5 million mortgages written in 2005 through 2007...

2009 Bankruptcy Filings Up

Posted on July 06, 2009
According to a July 2, 2009 Bloomberg report, there were 675,351 consumer bankruptcy filings in the first half of 2009, a 36.5 percent increase over 2008 numbers. June consumer filings totaled 116,365, up 40.6 percent from the same period in 2008. The monthly rate of consumer filings slowed, however, declining by 6...

Most alternatives to bankruptcy involve wishful thinking

Posted on July 05, 2009
Clients arrive in my office hoping that I can explain the secret alternative which will solve their debt problems outside of bankruptcy. Why not? Ads for debt settlement companies and do it yourself books always promise to reveal the tricks ( known only to someone who wants to sell you something) to make your bills [...

Keeping mum about discharging taxes in bankruptcy

Posted on July 02, 2009
The client owes a fistful of taxes from years ago and has spent another fistful of dollars with widely advertised outfits that solve your tax problems. None of these tax professionals told him that old income taxes can be eliminated in bankruptcy.! The client first hired J K Harris, with no results, except a lighter wallet...

US Health Care Financing System is Broken - Most Bankruptcies Due To Medical Debt

Posted on July 01, 2009
“The US health care financing system is broken, and not only for the poor and uninsured” According to a recent study in The American Journal of Medicine, middle-class families are collapsing under the strain of “a health care system that treats physical wounds, but often inflicts fiscal ones”...

Today, I am Reviewing the Claims File from my Client?s Chapter 13

Posted on July 01, 2009
Several years ago, the Chapter 13 trustees and the bankruptcy judges in the Northern District of Georgia added a new administrative burden to lawyers who file Chapter 13 cases in the Atlanta area. Under this local rule, within 30 days after the “bar date” for creditors to file claims, lawyers must review all of the [...

Exemption Amounts Increased in Oregon (a small step)

Posted on June 30, 2009
On Friday, June 26, 2009, Governor Ted Kulongski signed HB 2306, which provides increased protection for a debtor to protect his vehicle and his home from creditors. Formerly, a debtor could protect $2150 in value of a motor vehicle. The bill amends Oregon Revised Statute 18...

?I?m Not Filing Bankruptcy On . . . ?, and Other Misconceptions

Posted on June 30, 2009
“I don’t want to file bankruptcy on my house!” “I don’t want to file bankruptcy on my car!” “I owe my mom some money but I don’t want to file bankruptcy on her!” Every bankruptcy attorney practicing in this country has heard these phrases or variations of them...

Are There Any Reasons NOT to File Chapter 7 Bankruptcy? Part 2-You May Not Discharge All Your Debt

Posted on June 30, 2009
Although filing Chapter 7 bankruptcy usually wipes the slate clean as far as most of your debts are concerned, there are some debts that may not be discharged. Certain debts, such as most taxes, child or spousal support, and student loans usually survive the Chapter 7 discharge...

Can I File Blank Bankruptcy Forms To Start My Case?

Posted on June 30, 2009
When you file for bankruptcy you are required to file certain documents - your bankruptcy petition, bankruptcy schedules, and a host of other papers. These papers must all be completed accurately, honestly and completely. You do not get the option of filing blank forms “just for now...

Are There Any Reasons NOT to File Chapter 7 Bankruptcy? Part 1 ? It May Affect Your Credit Score

Posted on June 29, 2009
Your Credit Score can be an important asset. It determines your ability to get credit, and the cost. It could be a factor in your getting a job, renting an apartment, and purchasing a house or a car. When you file a Chapter 7 bankruptcy, your credit score will be affected...

Trustee Holds Feher Proceeds Until Completion or Dismissal of Chapter 13

Posted on June 27, 2009
When an insurance policy pays a damage claim for a totaled car that is involved to a chapter 13, the bankruptcy trustee is required to hold excess money over the amount of the lender’s secured claim according to In re Feher, Southern District of Illinois case Bankruptcy Number 95-30444, Adversary Number 96-3133...

Completing Bankruptcy Paperwork

Posted on June 27, 2009
Preparing the paperwork to file a bankruptcy is, generally, the next step after you have hired an attorney, met with him to discuss your options, and provided him with all of the information requested. The initial paperwork for a chapter 7 bankruptcy consists of the petition; the schedules and the statement of financial affairs...

Dairy Farmers in Crisis Should Consider Chapter 12 Bankruptcy

Posted on June 27, 2009
Dairy farmers in Upstate New York are facing a crisis. While the cost of milk at the grocery store continues to climb, the price dairy farmers receive has not. Farmers are currently receiving $13.33 per hundredweight. This is $4.25 below the cost of production in New York, even in the most efficient dairy farms...

Warranty Claims Against a Bankrupt Company

Posted on June 27, 2009
You may have purchased something from a company now in bankruptcy, and you have to make a warranty claim. If the company is in Chapter 11, it will very likely honor your claim for the good will it generates (you’ll tell your friends that it’s okay to do business with the company) even though the company [...

What Documents Do I Need To Have To File For Bankruptcy?

Posted on June 26, 2009
Filing for bankruptcy can be confusing, especially when you don’t have all of your documents prepared. Learn more about what documents you need to have on hand when you meet with your bankruptcy lawyer by listening to this audio segment. If you liked that post, then try these...

Is It Possible to Lose My Homestead Exemption in Bankruptcy Court?

Posted on June 26, 2009
Your homestead exemption is one of the most important benefits you get when you file for bankruptcy. It protects your residence. In New York, you can protect up to $50,000 of equity in your home, $100,000 if you file together with your spouse. You usually get to take the homestead exemption if the property is [...

The Duty To Disclose: Why Does A Debtor Have To Provide A List Of All Assets?

Posted on June 26, 2009
As my friend and colleague, Cathy Moran explained in her blog over a year ago, the benefits of filing a bankruptcy mean that the debtor provides information to the bankruptcy court in the papers filed with the court. This benefits the debtor more than the Court–this honesty...

What Happens to Insurance Proceeds for a Totaled Car in Chapter 13?

Posted on June 26, 2009
In the Southern District of Illinois Bankruptcy Court, one option permits the insurance company to pay the money directly to the car lender. Another option lets the debtor use the proceeds to purchase a substitute vehicle. The insurance money is property of the bankruptcy estate under contractual terms that make the money payable to the debtor, [...

How Will Judge Sotomayor Decide Bankruptcy Cases if She Gets to the Supreme Court?

Posted on June 25, 2009
If 2nd Circuit Judge Sonia Sotomayor gets to sit on the US Supreme Court, she will likely give all parties a fair opportunity to be heard, and ensure that the rights of all parties, debtors and creditors alike, will be respected. This is the prediction from the Alliance for Justice “Report on Supreme Court Nominee [...

Choosing A Bankruptcy Lawyer - 5 Things To Look For

Posted on June 25, 2009
Choosing a bankruptcy lawyer can be difficult - you want to get the right help, but can’t figure out what’s important. Listen to this audio session to get some answers. If you liked that post, then try these...What To Do When You are being Foreclosed - Chapter 13 by Eugene S...

San Diego now allows ?McMansions? in Chapter 7 Bankruptcy

Posted on June 25, 2009
For many years, it was questionable whether a debtor who filed for chapter 7 relief was able to keep expensive real estate at the expense of paying other creditors. At least 5 cases have come down since the new laws passed in 2005 that held that such high expenses related to residences was an “abuse” [...

Family Medical Leave and Chapter 13 Payments

Posted on June 25, 2009
If your Chapter 13 payments are set by the Means Test and not only by mortgage and priority tax arrears, then a Family Medical Leave can reduce your payments. The Means Test looks at your average monthly income for the six month period ending with the month before your filing...

Chapter 13 And Unexpected Bills

Posted on June 24, 2009
What happens when you cannot make your Chapter 13 payments due to unexpected bills? A furnace goes, or a car breaks down, or you get sick or hurt. What then? There are a number of options. None of them are “Keep this secret from your lawyer!” You can ask for a suspension, or moratorium of payments [...

Should I File A Chapter 7 Bankruptcy Or A Chapter 13 Bankruptcy?

Posted on June 24, 2009
Should you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy? The answer to the question of what type of bankruptcy to file is that it depends on your financial circumstances. A Chapter 7 bankruptcy and a Chapter 13 bankruptcy are really designed for two different types of debt situations...

San Diego: New Ruling Allows Student Loans to be Discharged in Chapter 13!

Posted on June 24, 2009
The United States District Court located in San Diego recently issued an opinion on December 10, 2008, holding that student loans may be discharged in chapter 13 bankruptcy cases where the creditor fails to object after receiving proper notice. Other cases around the country are also holding the same and the United States Supreme Court [...

Chapter 7 Bankrutcy May Give (Temporary) Relief from Collectors

Posted on June 23, 2009
Filing Chapter 7 bankruptcy will stop collection efforts of your creditors, however that relief may be temporary if your debts are of the kind that are not discharged in bankruptcy. Some debts, like student loans, child support, many taxes, and a few others, are not discharged by bankruptcy...

Payroll taxes: the ?loan? that lives forever

Posted on June 23, 2009
My client’s business corporation is long dead and he’s back to working for others. But six quarters of unpaid corporate payroll taxes not only become his personal debt, but a tax that is never dischargeable in bankruptcy and a priority claim which must be paid in his Chapter 13 case...

Do I have to be a citizen to file a bankruptcy case?

Posted on June 22, 2009
Clients frequently ask us if they must be a citizen of the United States to file a bankruptcy case in the United States. No - you don’t have to be a citizen to file a bankruptcy case in the United States. You do have to be a resident of the place where you plan to [...

Why File A Response In A Chapter 7 Motion For Relief From Stay?

Posted on June 22, 2009
Courts may grant a Motion for Relief from Stay in a Chapter 7 if it was filed because a debtor is behind on the mortgage when filed, and there is no equity in the property for creditors. Chapter 7 is not designed to stop foreclosures to give people time to catch up on their mortgages...

Does bankruptcy protect me against debts from other countries?

Posted on June 21, 2009
Clients frequently face debts from countries other than the United States. If you file a bankruptcy case in the United States, what is the effect on your debts from overseas? We tell clients not to worry too much about this. First of all, it takes some effort for a foreign creditor to make its judgment enforceable in [...

Chapter 20: San Diego Bankruptcy Court allows Lien Stripping in Chapter 13 after Chapter 7.

Posted on June 21, 2009
The Southern District of California Bankruptcy Court in San Diego recently issued a ruling that allowed a junior lien to be removed in a Chapter 13 case, even though the debtor was not eligible to obtain a discharge. Discharge was not available since the debtor previously filed a chapter 7 petition and the new bankruptcy laws [...

Should I file bankruptcy before I get married?

Posted on June 20, 2009
In June, people’s thoughts turn to marriage. These days, people’s thoughts also turn to bankruptcy. Clients ask me, “Should I file my bankruptcy case before my wedding?” It’s a good question. The answer is not always simple...

Fees From A Creditor Who Tried To Dismiss Your Case

Posted on June 20, 2009
Creditors can argue that your case should be dismissed for abuse, a term not defined in the Bankruptcy Code; It generally means that you’ve been a bad boy. There’s a presumption of abuse when you flunk the Means Test and show that you have means to pay some of your debt...

Bankruptcy and Reverse Mortgages

Posted on June 19, 2009
Senior citizens with fixed incomes frequently think about filing for bankruptcy. Even though we have experienced a horrible mortgage meltdown, many retired people have actually paid off their houses and, at least in theory, still have equity. Yet their social security income is not enough to live...

Bankruptcy Erases Most Judgments

Posted on June 19, 2009
It often happens that a creditor gets a judgment against you before your bankruptcy case is filed. That judgment is erased by the filing, unless it’s a type of debt that isn’t discharged anyway (fraud, theft, intentional injury, and the like)...

How to Value a Car for Chapter 13 Plan ?Secured Claim? Purposes

Posted on June 19, 2009
Ever wonder how a bankruptcy court would rule, if you actually had a hearing on the question of how much a car is worth in chapter 13? Did you doubt you could really get a court to reduce the amount of the secured claim to take into account the car’s need for expensive repairs? Maybe [...

Force Placed Insurance Only Protects The Lender

Posted on June 19, 2009
I often find that when asked about their insurance, my bankruptcy clients tell me that they are “covered by insurance from the mortgage company.” Bankruptcy or not, be very clear about this: if your insurance lapsed and you were notified by your mortgage company that they have obtained insurance for you, this insurance covers their [...

California Foreclosure: 90 More Days Added under 2923.52(a)

Posted on June 19, 2009
Good news for California Homeowners who are in default on their mortgages. On February 20, 2009, Governor Schwarzenegger signed ABX2 7 and SBX2 7. These new laws provide additional time for borrowers to work out loan modifications who are presently facing foreclosure...

New Massachusetts Bankruptcy Means Test Decision

Posted on June 18, 2009
Judge Feeney, Massachusetts Bankruptcy Judge, days ago issued an important decision on an issue of whether a Chapter 13 debtor would be allowed a means test deduction for a payment of a secured debt when the payment was not being paid due to lien avoidance...

How Long Will My Chapter 7 Take?

Posted on June 17, 2009
In general, a simple, no asset Chapter 7 bankruptcy case will usually go on for about 4 months, but the case could be open a lot longer. When filed, the Court sends out a Notice of Filing to all parties in the case, notifying everyone of the filing and of the deadlines involved...

New York News Report Debunks 5 Myths of Bankruptcy

Posted on June 16, 2009
Hat tip to my New York colleague, David B. Shaev, for the excellent coverage and honest statements. Finally, the news media gets their information about bankruptcy right!

Beware Of Letters (Ads) For Bankruptcy Financial Mangement Class

Posted on June 16, 2009
Some companies are sending letters to bankruptcy debtors for the 2nd bankruptcy course that must be taken in bankruptcy. These letters can be misleading and many debtors believe, after reading the letter, that they must take the course from that particular company...

Statements Received After Discharge May Violate Bankruptcy Code Even If Creditor Includes A Disclaimer

Posted on June 16, 2009
If a creditor sends a letter to you after your discharge, they may be violating the Bankruptcy Code - even if they include language saying it’s just for informational purposes. The recent case of In re BIRAKOYE NASSOKO, Case No. 07-11966 (ALG) (SDNY 2009) involved a car lender that sent a consumer a payment demand comtaining [...

Means Test Vehicle Ownership Expense: Another Appeals Court Says ?Yes? Even When There?s No Car Payment

Posted on June 15, 2009
The U.S Court of Appeals, Fifth Circuit, recently ruled that on the means test’s Form B22A, a vehicle ownership expense is allowed even when the debtor has no car payment. The court’s ruling in In re Tate, No. 08-60953 (5th Cir. June 10, 2009), agrees with the only other circuit court opinion on this issue, In re [...

HELOC in bankruptcy: dischargeable?

Posted on June 15, 2009
The borrower’s personal liability for a home equity line of credit or a standard second position home mortgage is dischargable in bankruptcy. A reader of my website Bankruptcy in Brief, emailed me about conflicting input she was getting in her self prepared bankruptcy case...

Bankruptcy and Foreclosure Defense Attorney Opens New Southern Illinois Office

Posted on June 15, 2009
Bankruptcy and Foreclosure Defense attorney Andy Miofsky announces the opening of his new office in Mt. Vernon Illinois. ?Clients from deep Southern Illinois are driving 90 minutes or more to my Granite City office for a consultation, so I know there is a need that isn?t currently being met in that area,? reports Andy Miofsky...

Reject Commercial Leases Quickly, Says 8th Circuit BAP

Posted on June 15, 2009
If you have a commercial lease in bankruptcy, it pays to reject it quickly according to the Eighth Circuit Bankruptcy Appellate Panel. When a business or individual with a lease on commercial real estate, like a store or (in this case) farmland, files bankruptcy, the debtor or trustee has the right to assume or reject the [...

Appeals Court Holds More Than Mere ?Mistake? Required for Imposition of Constructive Trust; Bankruptcy Trustee Entitled to Mistaken $90,000 Deposit into Debtor?s Account

Posted on June 12, 2009
The Eighth Circuit Bankruptcy Appellate Panel recently reversed a Minnesota bankruptcy court’s ruling that under Minnesota law, a chapter 7 trustee was not entitled to $90,000 which had been mistakenly deposited by a bank president into the debtor’s bank account before he filed bankruptcy...

Bankruptcy and Older Folks

Posted on June 10, 2009
I’ve been having more and more potential clients who are older come see me asking about bankruptcy. Sometimes, bankruptcy is a good solution for these people. Sometimes though, bankruptcy is not a good option. And quite often, very few good options remain to deal with your debt...

Bankruptcy Judge Can Order Conversion from Chapter 13 to Chapter 7

Posted on June 10, 2009
Your decision to file for bankruptcy should involve a great deal of thought and discussion with both your loved ones as well as your legal counsel. Once filed, a bankruptcy carries with it some significant consequences. First, your credit will be affected if you are bankruptcy for one day, one month, one year, or longer...

When Preparing for Bankruptcy, You Can?t Be Too Careful

Posted on June 09, 2009
I was sitting in bankruptcy court this morning, waiting for my cases to be called, when something unusual caught my attention. The trustee who was presiding made a very sarcastic remark. Now, I have to tell you, for some trustees that wouldn’t seem unusual...

What Happens If A Creditor Contacts Me After My Bankruptcy?

Posted on June 09, 2009

Can?t Access ECF? Another Possible Problem and Its Solution

Posted on June 08, 2009
Last month I wrote a post about problems I had been having accessing the Bankruptcy Court’s ECF system and a workaround to solve that problem. In that post I spoke about a problem that arises when your browser sees the ECF bankruptcy pleading filing screen as a disallowed pop-up, thereby leaving you with a blank [...

What Happens if I Stop My Chapter 13 Payment?

Posted on June 07, 2009
If you stop making Chapter 13 payments and do nothing else, your bankruptcy case will be dismissed and the court will not enter a discharge order. This means you will lose the benefits of your bankruptcy and will no longer be protected from your creditors...

Attorney Liens in Bankruptcy

Posted on June 06, 2009
It is not uncommon for debtors to have attorney fee claims against themselves and/or future property of the estate. The most common example is an attorney fee lien agreement on a personal injury case. In the event of recovery in those cases, the attorney typically receives 33% or more of the gross settlement or judgment...

What Is The U.S. Trustee?

Posted on June 06, 2009
Congress established the Office of the U. S. Trustee as part of the Bankruptcy Reform Act of 1978 to act on behalf of the executive branch and regulate or supervise certain aspects of the bankruptcy process. According to the official website the US Trustee program consists of the Executive Office for U...

The stigma of bankruptcy

Posted on June 05, 2009
Why is it that consumers and small business owners see bankruptcy as a mark of shame to be avoided at all costs when bankruptcy is touted as a new beginning and a positive step for corporate America? Is there really anything different about “bankruptcy” when the debtor is General Motors than when it is Joe [...

Chapter 13 Plans Which Vest Property of the Estate in the Debtor Too Early Can Result in Loss of Assets

Posted on June 05, 2009
A recent Idaho bankruptcy court decision, In re Jackson, 2009 WL 562621 (Bky.D.Idaho March 5, 2009), shows how critical it can be to correctly choose, in a chapter 13 plan, whether property of the estate should or should not vest in the debtor upon confirmation of the plan...

Bankruptcy Debtor Education Class (2nd Course)

Posted on June 05, 2009
When you file a bankruptcy case, you may get a letter from a company that makes it seem as if you have to take a course from them, now that you have filed for bankruptcy. You don’t. Read the letter carefully, because it might be an advertisement for the Financial Management Course that is given [...

Eugene Melchionne, Connecticut Bankruptcy Lawyer, Elected To Lead Bankruptcy Law Network

Posted on June 04, 2009

Statement of Financial Affairs: Question 6

Posted on June 04, 2009
This is the sixth in a series of blogs about the Statement of Financial Affairs and the questions it asks. Question 6 of the Statement of Financial Affairs is a two-parter. The first part asks about “Assignments for the Benefit of Creditors,” and the second part asks about receiverships...

Should I Talk With a Bankruptcy Lawyer Instead of A Debt Settlement Company?

Posted on June 03, 2009
More and more, I’m seeing folks in my office after attempting debt workouts through debt settlement companies. Usually, the debt settlement companies that these people used were ones that advertise heavily on television and in other media. And usually, the potential clients have paid a lot of money to these debt settlement firms and gotten very little out of it...

Tell Your Bankruptcy Attorney Everything

Posted on June 03, 2009
You have decided to file bankruptcy and even taken the first step of finding competent counsel to help. Hopefully you have met with the attorney and he has given you some forms to fill out or told you what he needs to prepare the paperwork. You need to get him the information right away so he [...

Credit Union Automatic Deductions & the Automatic Stay

Posted on June 02, 2009
Banks and credit unions love to have automatic payroll deductions from their customers. It helps them guarantee as long as you work, you pay them. What happens when you file bankruptcy? The bank or credit union should think twice about continuing to “accept” these payroll deductions...

?Stealth? Plan Provisions: Confirmation of Chapter 13 Plan Did Not Alter Domestic Support Obligation

Posted on June 02, 2009
A Tennessee bankruptcy court recently ruled that confirmation by the court of a chapter 13 plan did not affect the debtor’s obligation to continue paying his ex-wife’s house payment. The chapter 13 plan did not specifically say that the ex-wife’s rights were being altered by the proposed plan, although the plan implicitly treated the ex-wife as [...

Hear GM and Chrysler Bankruptcy Hearings Online

Posted on June 02, 2009
You may listen online to the audio recordings of the Chrysler LLC, 09-50002, and General Motors Corporation, 09-50026, bankruptcy hearings in the U.S. Bankruptcy Court in the Southern District of New York. Available Online: Recordings of GM and Chrysler Bankruptcy Case Hearings The recordings are being made available online through through a pilot project of [...

Top 20 Cities for Credit Card Spending

Posted on June 02, 2009
Forbes.com says the top 20 American cities for credit card (over)spending are: Miami, FL Tampa, FL Los Angeles, CA Jacksonville, FL Orlando, FL Riverside, CA San Diego, CA San Antonio, TX Las Vegas, NV Sacramento, CA Virginia Beach, VA Pittsburgh, PA Phoenix, AZ Columbus, OH Cleveland, OH Charlotte, NC Austin, TX Cincinnati, OH Indianapolis, IN Houston, TX Miami households owe 22...

After Filing Bankruptcy, Banks Can?t Keep Your Money For Pre-petition Debts

Posted on June 01, 2009
It is a good idea to make sure that you don’t have funds in bank accounts at banks you owe money to, particularly if you are going to file for bankruptcy. Banks will often keep the funds in your account on the day your file for bankruptcy to set off against the debt owed to [...

One Violation; Two Lawyers

Posted on June 01, 2009
A simple enough situation. After a bankruptcy case was filed, a large telephone and Internet ervice provider sent bills from its special bankruptcy administration office for a pre-bankruptcy debt. I filed a motion for sanctions. The provider then sent a notice of termination of services...

Can You Get Rid Of A Mortgage: An Update

Posted on May 31, 2009
A Massachusetts Chapter 13 debtor has been able to remove (”cancel” or “rescind”) a second or refinancing mortgage, without having to pay the full principal balance, if there was a serious defect in the closing papers. See Cancel That Mortgage: Why Bankruptcy and Remove That Mortgage !! A recent intermediary appellate decision just changed that ruling...

Married Debtors; Separate Bankruptcy Estates

Posted on May 31, 2009
Two spouses file one bankruptcy case. They get one trustee, one case number, one meeting of creditors, etc. But they are still two separate people with two separate bankruptcy estates. Here’s why it’s important. If someone dies within six months after a bankruptcy is filed, the inheritance is property of the bankruptcy estate...

Personal Bailouts - Should You Bailout A Friend or Relative?

Posted on May 31, 2009
In this era of corporate bailouts, it makes you wonder how many individual bailouts are happening, and, more importantly, is it the right thing to do? Three times in the past week, a client has called to request that we close the file because they no longer have to file for bankruptcy...

Lawyer Fails to File Bankruptcy or Otherwise Carry Out Debt Repayment Plan; License to Practice Law Revoked

Posted on May 30, 2009
In Santulli v. Texas Board of Law Examiners, 2009 WL 961568 (Tex.App.-Austin, April 10, 2009), the Texas Court of Appeals upheld the revocation of a lawyer’s license to practice law, based upon his failure to either make payment arrangements for his outstanding debts or discharge them in bankruptcy...

Does The Stress Over Debts or Mortgage Foreclosure Lead to Suicide?

Posted on May 30, 2009
Suicide can be a tragic byproduct of the current financial and mortgage foreclosure crisis. We have all heard of people jumping out of buildings in last century’s Great Depression. But how many actual suicides or attempts at suicide have occurred because of today’s situation? At the National Association of Consumer Bankruptcy Attorneys annual convention in Chicago, [...

Resolving a Motion for Relief - A Costly Exercise

Posted on May 30, 2009
Many Chapter 13 cases arise from mortgage payment problems. A significant number of Chapter 13 debtors enter into bankruptcy with a mortgage arrearage and they use the arrearage cure mechanism of Chapter 13 to stop the foreclosure process and to pay back the missed mortgage payments over time...

Seventh Circuit Says ?Give back the Car? in bankruptcy - Even in Chicago

Posted on May 29, 2009
If your car is repossessed before you file a chapter 13 bankruptcy case, you want it back. You want a chance to make your payments. In most of the country, if the car is repossessed before chapter 13 bankruptcy, the lender has to give it back so you can have your chance to keep your [...

List all of your assets in your bankruptcy case - it?s a crime not to

Posted on May 29, 2009
I’m not filing bankruptcy on my motorcycles. Some debtors believe that if they file a bankruptcy case, they get to keep all their property. That’s not true. A debtor in chapter 7 gets to keep his or her exempt property. However non-exempt property could be sold by the trustee to pay creditors’ claims...

To File Your Case, Your Lawyer Will Need All Info, All At One Time

Posted on May 29, 2009
When you file your bankruptcy case, whether it is a Chapter 7, Chapter 13, or Chapter 11, you will have to put together a lot of financial information, and make it available to your attorney. The more complicated your financial situation, the more information you will need to provide, but almost everyone finds that it [...

I Didn?t File For Bankruptcy! How Can The Trustee Sell My House?

Posted on May 29, 2009
I had a client come in to see me recently. She had received a notice from a Chapter 7 Trustee that the Trustee was going to hire a real estate agent to market and sell the client’s house. The client had not filed for bankruptcy, so how was this possible? The answer became apparent after reviewing the notice from the [...

Can?t Access Pacer or ECF? You May Need to Change a Setting in Your Browser

Posted on May 28, 2009
I am writing this post for the benefit of fellow lawyers and other colleagues who may be having the same problems I have accessing bankruptcy court records electronically. If you use Firefox (Mozilla) or Opera as your browser, you will notice that your browser software periodically updates, and sometimes those updates create unintended consequences...

Credit Default Swaps Could Force General Motors Bankruptcy

Posted on May 28, 2009
GM Investors holding credit default swaps [CDS] may get a better return on their investment if GM files what would be history’s 4th largest bankruptcy. A credit default swap is a derivative contract between two parties where one party pays the other party a fee and receives a payoff if the specified investment fails...

You can recover damages if creditors harass you after you file your bankruptcy case

Posted on May 28, 2009
One of the most important benefits of your bankruptcy case is the automatic stay. In plain English, this is a great big stop sign to your creditors. Once your bankruptcy is filed, they have to stop bothering you. No more calls at home. No more calls at work...

Real Estate Commissions Lost to Chapter 7 Trustee, Even When Closings Occurred After Bankruptcy Filing

Posted on May 27, 2009
According to the Eighth Circuit Bankruptcy Appellate Panel, real estate commissions due from purchase agreements entered into prior to the filing of a chapter 7 case were property of the bankruptcy estate, even though the closings occurred after the case was filed, and even though the real estate agent continued to perform services after the [...

How Flexible is Chapter 13 After You?ve Filed?

Posted on May 26, 2009
A big advantage to a Chapter 13 is there is a great deal of flexibility even after your case is filed, should your financial situation change. After all, a Chapter 13 plan typically runs three to five years (closer to five in my experience) and most people experience changes in any three to five year [...

Satisfy a Car Loan by Surrender in Connecticut

Posted on May 26, 2009
On February 24, 2009, Judge Dabrowski of the U.S. Bankrupcy Court in Connecticut ruled that a car may be surrendered toa creditor in a bankruptcy case to satisfy a car loan that is less than 910 days old. Well, there’s a mouthful. In short, 910 car claims are given special treatment in bankruptcy...

What Is the Difference Between Chapter 11, Chapter 7 and Chapter 13 Bankruptcy?

Posted on May 26, 2009
One of the most common questions asked is what is the difference between the types of bankruptcy. When people want to know what the difference is between types of bankruptcy, they really mean “What is the difference between Chapter 7 and Chapter 13?” Both Chapter 11 bankruptcy and Chapter 13 bankruptcy are reorganizations that provides for [...

Do Not Hide From Your Lawyer

Posted on May 25, 2009
Question: When is it a good idea to hide from your lawyer, refusing to return his calls and ignoring a pending court date? Answer: never. I experienced this situation last week in a case involving a Chapter 13 client who had completed almost 4 1/2 years of a 5 year plan, then ended up with a [...