Consumer Law

Married and Separated (But Not Legally)

Posted on March 29, 2011
There’s a good recent post here on the Bankruptcy Law Network about non-filing spouses — Springfield, and Marlborough, Massachusetts’ attorney Jed Berliner’s article on “non-filing” spouses. He wrote about the impact on the means test...

What is ?is?? ? Can a bankruptcy plan modify a mortgage on a house that was a Debtor?s principal residence?

Posted on March 29, 2011
It depends on what the meaning of the word ‘is’ is. If the–if he–if ‘is’ means is and never has been, that is not–that is one thing. If it means there is none, that was a completely true statement… Testimony of William Jefferson Clinton, President of the United States, Before the Grand Jury Empaneled for [...

Ink by Chase Sends 10 Year Old A Credit Card Application ? For Her Business?

Posted on March 28, 2011
In Saturday’s mail, my 10 year old daughter received a credit card application from “Ink from Chase“.  At first I was a bit shocked by a credit card company’s decision to send a credit card application to a 10 year old child.  I immediately thought:  What a bunch of idiots?  Are they that desperate?  Do [...

Bankruptcy for Fruit of the Month

Posted on March 28, 2011
Harry and David filed a Chapter 11 bankruptcy.  The company famous for Oregold Peaches (9 for about $30), Fruit of the Month Club, and lots of jams and snacks and gift baskets has filed a reorganization under Chapter 11, which means that it will continue to operate but it will trim it’s operation, likely writing down debts [...

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Can bad faith or excess income be ?cause? to dismiss a non-consumer Chapter 7 case?

Posted on March 27, 2011
As has been often explained, Chapter 7 Debtors with primarily business debt, or otherwise not primarily consumer debt, are not subject to the “means test” adopted in the 2005 bankruptcy reform act.  In fact, they are not subject to any of the provisions of the Bankruptcy Code allowing Chapter 7 cases to be dismissed for “abuse...

The Nonfiling Spouse and the Means Test?s Marital Adjustment

Posted on March 27, 2011
The shocking realization is that your spouse might have to contribute to your Means Test-required payments even if you file alone.   You aren’t happy about this at all.  ”But they’re my debts.  Why should my husband or wife have to contribute?”  Because that’s the law...

Where Does Bankruptcy Law Come From? Part 2: State Law

Posted on March 25, 2011
As pointed out in the first installment in this series, U.S. bankruptcy law comes from many sources.  Although the statute itself is part of the federal U.S. Code, a significant element of bankruptcy is actually drawn from state laws. At the heart of bankruptcy are property rights...

Oregon Attorney Disciplined Due To FDCPA Violations

Posted on March 23, 2011
An Oregon attorney, Derrick McGavic is being disciplined for FDCPA violations as announced by the Oregon Attorney General’s Office this week.    Derrick McGavic, a Eugene, Oregon attorney whose law firm sued consumers for credit card companies and debt collectors, agreed to submit his resignation to the Oregon State Bar...

Student Loan Income-Based Repayment Plan

Posted on March 23, 2011
The Income-Based Repayment Plan (“IBR”) for student loans is designed to be a better plan than the older Income-Contingent Repayment Plan (“ICR”). Here are some details: * The IBR applies to Direct Loans and government-guaranteed FFEL student loans...

Bank?s Want Higher Debit Card Fees

Posted on March 23, 2011
More is what banks want.  More debit card fees, more profits.  Banks also want less, less government safeguards protecting bank customers.  Banks threaten to increase other fees if they do not get their way.  Bank lobbyists sing a familiar song whenever they are faced with reform legislation...

NY Bankruptcy Court Uses The Eddie Murphy Method Of Allocating Tax Returns

Posted on March 17, 2011
Remember when Eddie Murphy was Eddie Murphy, not some cut-rate actor in a collection of kid’s movies? I mean, when he was fall-off-the-chair hysterical that involved language to make your parents blush? It turns out that the New York bankruptcy courts do, too...

IRS Tips About Mortgage Debt Forgiveness

Posted on March 17, 2011
Short Sales, home loan write-downs and foreclosure can all result in cancellation or forgiveness of debt for the borrower.  Debt cancellation can result in taxable income to the borrower. There are many debt cancellation tax articles published on Bankruptcy Law Network...

Supreme Court says Florida Homeowners Can Claim Wildcard Exemption

Posted on March 15, 2011
In July, 2007, Florida?s legislature created a $4,000 wildcard personal property exemption for people who do not receive benefits of a homestead exemption that has become a prime example of the Law of Unintended Consequences. During the real estate heyday on Florida (Circa 2005), there was a great disparity between homeowners and home renters when [...

Do-It-Yourself Means Testing For Bankruptcy

Posted on March 14, 2011
I’m a big fan of Home Depot.  I love the rows of lumber, the acres of tools and doo-dads.  Honestly, it makes me feel macho just being there.  It’s as if I could go out and build a home like Michael Landon in Little House on the Prairie. I mean, just look at all the [...

NACBA: Save the Dates

Posted on March 13, 2011
For those of us who like to plan ahead, the National Association of Consumer Bankruptcy Attorneys (NACBA) has announced the dates and locations of the following educational programs: 2010:     19th Annual Convention: April 13-17, 2011, Ward Parkman Marriott, Washington, D...

Economic Security Public Forum in Albuquerque, NM

Posted on March 11, 2011
Okay, this is not about bankruptcy per se, but it’s about how hard life is (that is contributing to the massive increase in bankruptcy filings) and about what we might be able to do about it, individually and as a community. If you live in Albuquerque, New Mexico, consider attending a National Issues Forum (NIF) [...

Why Debt Collectors Keep Calling After You Tell Them To Stop

Posted on March 11, 2011
You’re at home one evening, sitting down to a pleasant dinner with your family.  The kids are chattering, your spouse is listening to you talk about your day, and the food is on the table. It’s like Norman Rockwell popped up from the grave to arrange the scene...

Business and the Means Test

Posted on March 11, 2011
Filing bankruptcy if you have a business can be different from a typical consumer case.  First of all, if 51% of your debts were incurred for your business, you won?t have to file the means test! Thus, you avoid the problem of having too much income to qualify for a Chapter 7...

How a ?Lien Strip? or ?Strip-Off? Can Help My Under Water Second Mortgage

Posted on March 10, 2011
About 25% of all mortgages in the United States are “Under Water,” that is, a mortgage where the property is worth less than what is owed on the mortgage. Many people who own these properties also have second mortgages, equity lines,  HELOCs, or tax, HOA or other liens, pushing the property still farther into the [...

Been sued? Talk with your lawyer.

Posted on March 10, 2011
“I just got served papers for a repo car from 2007. I made copies of it for my paperwork, but I am not sure what to do.” I just got this message from a client. The office is working with him to prepare his chapter 7 bankruptcy filing but he is not yet ready to [...

All You Need To Know About Your Mortgage

Posted on March 09, 2011
(picture from University of Pennsylvania blog on regulations) The most common question I get for a long time is what happens if I do not, or cannot, pay my mortgage? If you can afford to continue paying, and are current, there is really no bankruptcy alternative...

How To Find A Good Bankruptcy Lawyer In 5 Easy Steps

Posted on March 09, 2011
When I had a cavity last year I was struck by a distressing thought: not only did I not have a good dentist, I didn’t have one at all.  And so began a quest that took me from website to website, friend to relative, neighbors and colleagues in a quest for the right dentist...

Bankruptcy Filings In 2011 ? The Calm Before The Storm

Posted on March 07, 2011
Our economy is in the toilet, I don’t care what anyone says.  I’ve got well-educated, worldly friends who have been unemployed for well over a year, colleagues reporting that their divorce practices are flailing (people tend to remain together during hard times because they don’t have the money to live separately), and others reporting that [...

Litigation Paying For Your Bankruptcy

Posted on March 07, 2011
Do people really have their bankruptcy case paid for through litigation?  It depends.  It depends on what happens during your case such as a stay violation or what happens after your case is completed such as a discharge violation.  It depends on whether your attorney feels comfortable filing the litigation because not all attorneys do...

Student Loan Dischargeability: Diabetic, Permanently Disabled, Blind, Prosthetic Eye, Pancreas and Kidney Transplants, But Still No ?Undue Hardship?

Posted on March 06, 2011
It’s no secret that federal bankruptcy courts are reluctant to grant a bankruptcy discharge of student loans based on section 523(a)(8)’s “undue hardship” standard.  Indeed, courts have usually construed the phrase “undue hardship” narrowly, rendering it difficult to discharge student loans in bankruptcy...

Why Collection Abuse Lawyers Aren?t Lawsuit Mills

Posted on March 03, 2011
Lawyers who represent consumers in foreclosures, collection abuse or civil lawsuit defense matters often refer to attorneys on the other side as “mills.”  In my experience, that’s not too far off the mark; when law firms file huge numbers of lawsuits at a clip without any meaningful involvement by the attorneys allegedly in charge, that’s [...

God and Bankruptcy

Posted on March 02, 2011
Bankruptcy is in the Bible.  In fact, there are plenty of blog posts here on Bankruptcy Law Network about what the Bible says about debt.  Kurt O’Keefe’s “Is Filing Bankruptcy a Sin?” is just one of many posts.  Most of these posts discuss the Bible and the mortality of bankruptcy or apply particular Biblical principles [...

Bankruptcy Means Test Figures Changing March 15, 2011

Posted on March 02, 2011
The Bankruptcy Means Test figures are changing again on March 14, 2011 and I am once again reminded of how absurd the means test numbers are.  When the US Trustee posts new means test figures, I alway take a careful look at the numbers when they change and compare them to what they had been [...

3 Ways The iPad 2 May Help Lower Your Bankruptcy Legal Fees

Posted on March 02, 2011
The powers-that-be over in Cupertino announced the iPad 2 today, and consumers around the country are sure to line up as soon as pre-ordered begin on March 11. As with just about every product put out by Apple, the iPad 2 is just about guaranteed to blow the doors off the place...

Cross Collateralized Loans And Bankruptcy

Posted on March 02, 2011
What is cross collateralization and how can it affect your Bankruptcy? When a loan is cross-collateralized it means that you have made an unsecured creditor into a secured creditor. How does this happen? When you purchase a car, it is common for the documents you sign to give the lender a security interest in the [...

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