Bankruptcy

Will a Personal Bankruptcy Affect my Small Business if I am Self Employed?

Posted on October 24, 2009
With a sluggish economy, I have met with an increasing number of small business owners who are considering personal bankruptcy to deal with credit card debt and personal loans, but who want to keep their business assets and credits separate.  Is this possible...

FDCPA Does Not Give Debt Collector the Right to Leave Messages on Your Phone Answering Machine

Posted on October 18, 2009
As you may know, there are both federal and state laws that offer a variety of protections to individuals who are in debt and who are being dunned by debt collectors.  The Fair Debt Collection Practices Act offers a variety of protections in cases involving collection agencies (as opposed to the actual creditor)...

Median Income Numbers for Georgia Go DOWN!

Posted on October 13, 2009
For the first time since means testing was instituted in 2005, the median income number in Georgia have gone down.   This means that potential Chapter 7 debtors will have a more difficult time avoiding a "presumption of abuse" and the extra cost and hassle of means test calculations...

Should I File Chapter 13 While I am Receiving Workers' Compensation?

Posted on October 09, 2009
If you have been hurt on the job in Georgia and rely on weekly wage benefits from workers'  compensation you know that temporary total disability benefits payable per Georgia law will require you to downsize your standard of living.   Sometimes the financial strain caused by your loss of a regular paycheck may lead you to consider Chapter 7 or Chapter 13 bankruptcy...

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FBI Warns Against Bankruptcy Fraud

Posted on October 08, 2009
My Bankruptcy Law Network colleague Rachel Foley from Kansas City has written a useful article on the Bankruptcy Law Network blog that brings to light a problem that many debtors (and perhaps many debtors' attorneys) don't think about too much – bankruptcy fraud...

Another Debtor Ripped Off by a Foreclosure Scam (Part 2)

Posted on October 04, 2009
Last month, I wrote a post describing a case that was recently heard by one of the judges in the Northern District of Georgia.  In this case, a debtor had filed a Chapter 13 the day of a foreclosure.  The lender was not aware of the bankruptcy so it went ahead with the foreclosure sale...

Another Debtor Ripped Off by a Foreclosure Relief Scam (Part One)

Posted on September 09, 2009
This afternoon (September 9), I had a chance to observe a very interesting case heard by one of the judges in the Northern District of Georgia.  The issue at hand was a motion filed by a mortgage creditor to "validate" a foreclosure that had been cried out on the courthouse steps back in July...

What Happens if my Chapter 13 Case is Dismissed?

Posted on August 27, 2009
Earlier this week, I wrote a post entitled Should I Oppose the Chapter 13 Trustee's Motion to Dismiss.  In that post I spoke about the relatively common scenario whereby a Chapter 13 debtor will fall behind on payments to the trustee or an unexpected claim will cause the plan to run longer than 60 months...

Should I Oppose the Chapter 13 Trustee's Motion to Dismiss

Posted on August 25, 2009
As you may know, Chapter 13 cases function as payment plans whereby you send your Chapter 13 trustee a monthly payment and the trustee disburses those funds to creditors. (...)

Loan Modification Myths Busted

Posted on August 12, 2009
Can you modify your mortgage loan to reduce your principal balance? (...)

An Unexpected Inheritance While in Chapter 7

Posted on July 11, 2009
This past week, I received a call from one of my Chapter 7 clients.  Earlier this week, he had received a call from his brother advising him that he was a beneficiary of the estate of a great aunt who had passed away earlier this year.  According to my client, his interest in this estate was in the form of a 1/9 share of two parcels of property...

Can I Leave Selected Debts Out of my Bankruptcy Filing?

Posted on June 30, 2009
I get this question at least once a week - "I need to file bankruptcy but I don't want to include my [mortgage] [car loan] [debt to my brother] [credit card co-signed by my company].   Let's leave this debt off my petition. (...)

Why Tax Refunds Payable to the Chapter 13 Trustee Will Do Little to Decrease Your Plan Balance

Posted on June 24, 2009
At least two of the three Chapter 13 trustees in the Northern District of Georgia require a Chapter 13 plan provision which provides that any tax refund payable to the debtor during the term of the debtor's plan shall be paid to the Chapter 13 trustee...

"Debt Settlement" vs. Bankruptcy

Posted on June 21, 2009
Although I am a bankruptcy lawyer, I tell everyone who visits my office for a consultation the same thing:  "bankruptcy is a last resort - do not file for bankruptcy unless you have no other choice.  It will damage your credit and negatively affect your financial future for months or years to come...

Have You Had Any Success in Recovering from Bankruptcy?

Posted on June 02, 2009
I was recently interviewed by a national magazine about how my clients recover from Chapter 7 bankruptcy.  Some of the tips I discussed during the interview included: asking a friend or relative to add you as an authorized user on a MasterCard or Visa opening a savings and/or checking account at a credit union and establishing a pattern of regular deposits requesting a small loan from that credit union and paying back each installment on time opening a credit account with a gasoline retailer finding a co-signer to open an unsecured credit card account I explained to the reporter that I am hearing from my clients that large credit card companies are soliciting them for cards as quickly as 6 months post discharge - no surprise in that successfully discharged debtor are a great credit risk, having no debt and no option to file bankruptcy The reporter, who is a very nice and informed gentleman, would like to speak to anyone who has had success in re-establishing credit after Chapter 7...

If I Do Not Reaffirm My Mortgage in Chapter 7, Do I Automatically Lose Title to my House?

Posted on May 28, 2009
I have been getting a lot of questions recently about reaffirmation and about the consequences of not reaffirming a mortgage loan.  I have previously written about the consequences of not reaffirming a mortgage debt.   The 2005 BAPCPA changes to the Bankruptcy Code attempts to force debtors to choose between reaffirmation or surrender of their collateral...

Pay Attention to Your Chapter 13 Payroll Deduction

Posted on May 26, 2009
In the Northern District of Georgia, every Chapter 13 case must be filed as a "payroll deduction order" case.  In other words, you must fund your Chapter 13 with a payroll deduction.   In my experience the trustees will allow direct payment of Chapter 13 plan payments only when a debtor is self employed or if the debtor can convince the trustee that the debtor's job would be in jeopardy if the employer received a payroll deduction order...

Debt Negotiation vs. Filing for Bankruptcy

Posted on May 14, 2009
Over the past few months, my of counsel officemate Susan Blum and I have met with dozens of potential bankruptcy clients for whom bankruptcy may not be the best solution.  While it may seem strange that a bankruptcy lawyer would tell you not to file bankruptcy, I advise everyone with whom I meet that bankruptcy is and should always be considered a last resort and that non-bankruptcy alternatives should be part of the discussion...

Can I File Bankruptcy in Georgia if I Live Outside the United States

Posted on May 11, 2009
I was recently contacted by a potential client who wanted to file bankruptcy but lived outside of the United States. He lived and worked overseas, but owned property in Georgia. (...)

Can a Small Business Owner File Chapter 7 Personally and Still Keep His Business

Posted on April 29, 2009
Over the past few weeks, I have received a number of calls from small business operators who want to file Chapter 7 on credit card debt, but continue to operate their businesses.  In many of these cases, the business owner used personal credit cards to fund business operations and now the business is profitable or marginally profitable but for the debt service on tens of thousands of dollars of credit card debt...

Are You Responsible for Debt Incurred by Your Failed Business

Posted on March 31, 2009
In difficult economic times, I regularly hear from small business owners who have been forced to shut down because of low sales. (...)

Student Loan Debts - Bankruptcy Won't Help Much

Posted on March 25, 2009
I have been getting a lot of calls and emails lately about student loan debt.  Perhaps with the economy in recession, student loan creditors are becoming more hard line about collecting, and student loan debtors have good reason to be worried. (...)

Associated Press Producer Wants Your Story

Posted on March 25, 2009
This afternoon, I received a call from Johnny Clark, an Associated Press (AP) producer who is looking to interview honest, hardworking men and women who have had to file bankruptcy.  He is especially interested in talking to individuals who formerly held high paying jobs but who are now barely scraping by...

Can New Wife be Held Liable for Husband's Debts

Posted on March 23, 2009
When you get married, your accept your spouse "for better or for worse."  Sometimes this means that your new husband or wife enters into your marriage with significant debt.  Can you as the spouse ever be held liable for this debt. (...)

Pardon Me if I Seem Cynical

Posted on March 21, 2009
My Bankruptcy Law Network colleague Cathy Moran notes that our friends in the credit card industry bought the inside cover of a recent issue of Newsweek to announce the release of their new web site HelpWithMyCredit.org.   My heart is truly warmed to know that my friendly credit card issuer is here to help me...

Can Mother's Inheritance Be Designated for Kids' Education if Mother Files Bankruptcy

Posted on March 19, 2009
Last week I wrote a post about car titles.  Specifically, I discussed the issues that arise when a bankruptcy debtor's name appears on vehicle titles when theose vehicles are actually used, maintained and kept by the debtor's parents.   Now comes a similar related question about inherited money...

Georgia Collection Law Firm Facing Lawsuit from Governors' Office of Consumer Affairs

Posted on March 17, 2009
Today's AJC reports that Marietta collection law firm Frederick Hanna & Associates has been sued by the Governors' Office of Consumer Affairs following multiple complaints about collection tactics used by the firm.   In November, the state consumer office served an investigative demand notice (i...

Does the Name on the Car Title Matter?

Posted on March 15, 2009
As a bankruptcy lawyer, I have to deal with the consequence of what I call "real world" activities.    In the non-bankruptcy world people make decisions that will save money and make life easier.  For example, blog reader Lou writes me with a question about car titles: I might need to file chapter 13 in the future...

Can Long Term Unemployment Support a Claim for Hardship Discharge of a Student Loan

Posted on March 03, 2009

Should You Pay Back Your Parents or Siblings Before Filing Bankruptcy

Posted on February 28, 2009

Why Has the Sub-Prime Mortgage Crisis Been so Toxic to the United States Economy

Posted on February 25, 2009
In my last post, I attempted to offer a simple explanation about how the housing market in the United States got into trouble.   In this post I want to discuss some of the highlights (or lowlights) of what this crash means to you. (...)

A Simple Explanation of the Sub-Prime Mortgage Meltdown

Posted on February 23, 2009
The U.S Federal Reserve anticipates that in fiscal year 2009, the Unites States? economy may shrink between 0.5% and 1.3%.   By historical standards, this means that we are in a serious recession.  This slowdown may be attributed to many factors - an increase in unemployment, a lack of consumer confidence, a lack of confidence in the investment community and an overall reduction of the amount of liquid assets in our banking system...

Are Mortgage Modifications in Bankruptcy a Good Idea - Part Two

Posted on February 17, 2009
Earlier this month, I wrote a post on this blog setting out the question of whether Congress should enact legislation empowering bankruptcy judges to modify the terms of mortgages within a Chapter 13 bankruptcy. (...)

You are Responsible for Your Chapter 13 Trustee Payments

Posted on February 10, 2009
I have probably written about this subject before, but I am going to raise it again because it creates so many unnecessary problems and it arises month after month and year after year. (...)

Bankruptcy Bill Explains Secured Transactions in Bankruptcy

Posted on February 06, 2009
From our friends at BankruptcyBill - a graphical explanation of how creditors get paid in a bankruptcy. Strip #10 - Natural Order A reminder that we still are seeking STR.I.P. (...)

Are Mortgage Modifications in Bankruptcy a Good Idea - Part One

Posted on February 02, 2009
There has been a lot of chatter on bankruptcy blogs and bankruptcy lawyer forums about the possibility that Congress will amend the bankruptcy laws to give judges the power to modify mortgages.   To offer some perspective, bankruptcy judges have long had the power to modify vehicle loan contracts and other secured debt claims but never mortgage debt...

Free Online Means Test Calculator

Posted on January 31, 2009
I am not going to promise you that you are going to be able to follow this, but the folks at Nolo have released a free on-line means test program.    I find this calculator more complex than the means test calculator built in to BestCase - the petition preparation program that I use...

Refund Anticipation Loans - A Bad Idea

Posted on January 27, 2009
My Bankruptcy Law Network colleague Brett Weiss wrote a timely article on the Debt Law Network blog about a type of loan that is almost always a bad idea.  Pioneered by the national tax return filing service chains, tax refund anticipation loans are short term loans collateralized by your refund...

Georgia Consumer Should Avoid Car Title Loans

Posted on January 25, 2009
Today's Atlanta Journal Constitution ran a front page article exposing the slimy underside to Georgia's Car Title Loan industry.  It turns out that Georgia has minimal regulation on car title lenders - who basically serve as a lender of last resort for desparate borrowers...

How to Keep Your Costs Down and Get Good Bankruptcy Advice Quickly

Posted on January 19, 2009
Personal bankruptcy is made for "what if" scenarios.  What if I file individually instead of jointly with my wife?   What if I quit my job while I am in the middle of my Chapter 13?   What if I need a replacement vehicle after I file? (...)

How to Repair Your Chex Systems Report After a Bankruptcy Discharge

Posted on January 13, 2009
About 25% of the bankruptcy clients I represent have bounced checks due to insufficient funds.  While there can be a criminal law violation if you bounce a check, often merchants do not prosecute unless the amount is significant.  Even if there are no criminal implications, a bad check is most certainly a debt that needs to be included in your bankruptcy filing...

How Big is my Household for Chapter 7 or Chapter 13 Means Test Purposes?

Posted on January 10, 2009
I have written a lot on this blog about the median income test and the means test.  Each of these pre-filing calculations turn on both your household income as well as your family size. (...)

Missed Mortgage Payments in Your Chapter 13 - An Expensive Problem

Posted on January 07, 2009
In the Northern District of Georgia, the "standard" Chapter 13 plan that is used provides that on-going mortgage payments are to be made directly to the mortgage company during the pendency of your Chapter 13 plan.  In other words, if you file Chapter 13 because you are three payments delinquent, your missed payments (the mortgage "arrearage") will be paid in your plan...

Inside the Belly of the Beast - How Debt Collectors Think

Posted on January 06, 2009
Back in February, 2007, I wrote a blog post entitled Understand the Psychology of Debt Collection Tactics and Avoid Being Manipulated.  In this article I noted that bill collectors use techniques identified by psychologists to trigger guilt and other emotional responses that might cause you to send money to a particular bill collector...

Is Your Mortgage Company Making the Correct Property Tax Calculations?

Posted on January 03, 2009
If you are financing your home purchase with a large mortgage company, there is a good chance that your lender has set up an escrow account to collect and pay your county real estate taxes.  Mortgage companies escrow taxes and insurance to protect their interests - a lapse of insurance coupled with a fire or flood could destroy the loan collateral (your home) and a lapse of tax payments could lead to a tax sale...

Please Vote for "Best Niche Blawg" - Today!!!

Posted on January 02, 2009
Bankruptcy Law Network?s blog, where I write with 25 other premier consumer bankruptcy lawyers,  was recently voted one of the 100 best blawgs by the American Bar Association.  They?ve opened the voting among their 100 best up to the public. (...)

How are Year End Bonuses Treated in a Median Income Test Calculation?

Posted on December 27, 2008
When I meet with a potential client, one of the first calculations I run is a "median income test" evaluation.   The median income test adds up your gross income from all sources during the six months preceding the month of filing, then divides by six to arrive at a monthly average...

Chase Home Finance Accused of Adding Improper Charges to Bankruptcy Claims

Posted on December 24, 2008
As a member of the Bankruptcy Law Network, I am part of a small group of knowledgeable and prolific bankruptcy lawyers from all over the country.  If you have not yet checked out the Bankruptcy Law Network blog, and its sister blogs Credit Law Network blog Debt Law Network blog Mortgage Law Network blog I encourage you to do so...

Will Your Credit Limit Be Reduced Based on Where You Shop?

Posted on December 21, 2008
Today's Atlanta Journal-Constitution contains a very interesting article entitled "Consumer Profiling? (...)

Honest Renters Get Caught in Foreclosure Disasters

Posted on December 10, 2008
This past Sunday, the AJC published a fascinating article entitled "Foreclosures Reach Renters."  The article reports on several very sad cases in which a hardworking rental home tenant finds himself literally out on the street following the foreclosure of his rental home and an eviction filed by the new owner (usually a mortgage lender eager to put the foreclosure property back on the market)...

When are Credit Card Debts at Risk for a Bankruptcy Challenge

Posted on December 06, 2008
Nine times out of ten, when I meet with a potential bankruptcy client, that individual will have credit card debts.  In some cases, credit card debt can be startlingly large - I have seen many cases that include over $100,000 of credit card debt. (.....

Congress Considers Bill that Would Allow Homeowners to Modify Mortgage Terms in Chapter 13

Posted on December 02, 2008
Jonathan Alper, writing in the Florida Bankruptcy Law blog, reports that Democratic congressmen have introduced House Bill 7307 which would empower bankruptcy judges to reduce the balances of "upside down" mortgages to the value of the property and to reduce mortgage interest rates in some cases...

Should the Big Three Automakers File Bankruptcy?

Posted on November 26, 2008
The headlines about the economy are grim and seem to repeat the same refrain — the Dow  Jones, the NASDAQ and the S&P 500 seem to hit new lows every day.  Recent drops have been driven by concerns about the struggling auto industry. (...)

Georgia Legislature to Cap Real Estate Tax Assessment Increases?

Posted on November 24, 2008
It appears the Georgia Legislature is seeking to cap real estate tax re-assessment increases at 3% per year.  According to the Atlanta Business Chronicle, Republican lawmakers pre-filed legislation to this effect with Georgia House of Representatives on Monday November 17, 2008...

Tax Refund May Be At Risk in Bankruptcy

Posted on November 10, 2008
If you plan on filing bankruptcy after January 1 of next year or of any year, you need to speak with your lawyer regarding whether your income tax refund can be protected.   If you overpaid your taxes and are due a refund, that refund becomes your property on January 1, even if you have not yet filed your return...

Bill Collectors Have Blogs

Posted on October 21, 2008
Here at theBKBlog, I focus on bankruptcy issues, creditor abuse issues and information that can benefit those considering bankruptcy.  Did you ever wonder about the other side.  Yes, bill collectors have blogs as well, and it makes for interesting reading because bill collectors blog about areas of concern to them - avoiding lawsuits for unfair or deceptive practices, educated debtors, whether or not to use email when contacting debtors...

Countrywide Customers: Mortgage Help is on the Way for Many

Posted on October 12, 2008
CNN.Money.com is reporting that Bank of America has announced a plan to cut mortgage payments on loans held by its Countrywide division.  The program targets holders of subprime adjustable rate mortgage (ARMs), subprime fixed rate loans and option ARMs, but prime and Alt-A borrowers, who did not document their income, will be eligible as well...

Don't Assume You Can File Chapter 7 and "Start Over"

Posted on October 11, 2008
Over the past few days, I have received several calls and emails from potential clients who comprise a very different profile from my traditional client base.  These folks are solidly middle class to upper middle class families, often earning $100,000+ and living in $400,000 houses...

What Does the Wall Street Bailout Mean to You?

Posted on October 10, 2008
If you have been following the news, you know that a few days ago, the United States Congress passed a multi-billion dollar "bail out" of Wall Street firms and insurance companies that underwrote the risk to these firms.?? As of today (October 10, 2008), the bail out does not seem to have inspired much confidence and stock markets around the globe are tanking...

An Automatic Stay Violation Case that is Hard to Believe

Posted on September 24, 2008
Search the term "stay violation" on any consumer bankruptcy blog and you will find stories of situations where creditors get hit with well deserved sanctions for their failure to stop harassing a debtor despite knowledge of a bankruptcy filing...

Debt Collector's Unlawful Message on Answering Machine May Give Rise to Stay or Discharge Violation Action

Posted on September 24, 2008
Over the past few months, I have received a number of calls from former clients regarding possible discharge stay violation actions.?? As you may know, if you successfully complete your Chapter 7 or Chapter 13 case, the judge will issue a discharge order...

Bankruptcy Law Changes Less Likely With Joe Biden on the Ticket

Posted on September 24, 2008
Ever since the passage of the BAPCPA changes to the bankruptcy laws in 2005, consumer advocates have held out hope that a new presidential administration might roll back some of the more hard line changes to the Bankruptcy Code.???? Although support for the BAPCPA laws was bi-partisan, some Democrats have attempted to tie the nation's housing crisis in with the changes to the Code...

Can I Discharge Auto Accident Damage Claim that Exceeds My Insurance Coverage?

Posted on September 24, 2008
I am being sued for an accident that occurred in the state of Tennessee. ??The injured party was offered a settlement by my insurance company, but has refused. (...)

Can I File a Chapter 7 By Myself, Without an Attorney

Posted on September 24, 2008
This morning, I received an email from a gentleman named Jim, who writes: How can I file chapter 7 by myself without paying someone, anyone $ 99.00 $199.00, $299.00 etc… Three different people( with a financial intrest of course) said representation is required...

"No Conversion from 7 to 13" U.S. Supreme Court Tells Debtor Who Hid Assets

Posted on September 24, 2008
The United States Supreme Court does not frequently hear cases involving consumer bankruptcy law.?? However, this past February, the Supreme Court considered the case of Robert Marrama, a Chapter 7 debtor in Massachusetts. (...)

Michael Vick Files for Bankruptcy

Posted on September 24, 2008
Not that it is any surprise, but disgraced Falcon's quarterback Michael Vick has filed for bankruptcy.?? The case was filed as a Chapter 11 reorganization in the Eastern District of Virginia.?? Chapter 13 was not available to Vick because his debts far exceed the debt limits imposed by the Bankruptcy Code on Chapter 13 cases...

Conversion to Chapter 7 and Divorce Issues

Posted on September 24, 2008
Whenever I file a Chapter 13 on behalf of a client, I remind my client that five years is a long time, and that a lot can happen during the term of a Chapter 13.?? Marriage counselors reguarly opine that financial stress often leads to marital discord, so it should come as no surprise that the stresses inherent in a Chapter 13 will result in marital problems...

I Went to a Chapter 7 Bankruptcy Auction

Posted on September 24, 2008
[media:Ch7auction.flv] This past Saturday, June 21, 2008, I went to a bankruptcy auction of a Chapter 7 debtor's property.?? The sale arose from the bankruptcy of a business promoter who filed bankruptcy after his project failed.?? I recorded a short video describing the type of property that was being auctioned, which is at the top of this post...

Sub-Prime Mortgage Fiasco Explained…Using Stick Figures

Posted on September 24, 2008
We have all heard about the "sub-prime" mortgage crisis, but do you really understand what it is all about and why the collapse of the sub-prime market has lead to a decline in your local real estate market as well as a decline in the American economy in general...

An Automatic Stay Violation Case that is Hard to Believe

Posted on September 23, 2008
Search the term "stay violation" on any consumer bankruptcy blog and you will find stories of situations where creditors get hit with well deserved sanctions for their failure to stop harassing a debtor despite knowledge of a bankruptcy filing...

Debt Collector's Unlawful Message on Answering Machine May Give Rise to Stay or Discharge Violation Action

Posted on September 03, 2008
Over the past few months, I have received a number of calls from former clients regarding possible discharge stay violation actions.  As you may know, if you successfully complete your Chapter 7 or Chapter 13 case, the judge will issue a discharge order...

Bankruptcy Law Changes Less Likely With Joe Biden on the Ticket

Posted on August 25, 2008
Ever since the passage of the BAPCPA changes to the bankruptcy laws in 2005, consumer advocates have held out hope that a new presidential administration might roll back some of the more hard line changes to the Bankruptcy Code.   Although support for the BAPCPA laws was bi-partisan, some Democrats have attempted to tie the nation's housing crisis in with the changes to the Code...

Can I Discharge Auto Accident Damage Claim that Exceeds My Insurance Coverage?

Posted on August 19, 2008
I am being sued for an accident that occurred in the state of Tennessee.  The injured party was offered a settlement by my insurance company, but has refused. (...)

Can I File a Chapter 7 By Myself, Without an Attorney

Posted on July 22, 2008
This morning, I received an email from a gentleman named Jim, who writes: How can I file chapter 7 by myself without paying someone, anyone $ 99.00 $199.00, $299.00 etc… Three different people( with a financial intrest of course) said representation is required...

"No Conversion from 7 to 13" U.S. Supreme Court Tells Debtor Who Hid Assets

Posted on July 21, 2008
The United States Supreme Court does not frequently hear cases involving consumer bankruptcy law.  However, this past February, the Supreme Court considered the case of Robert Marrama, a Chapter 7 debtor in Massachusetts. (...)

Michael Vick Files for Bankruptcy

Posted on July 08, 2008
Not that it is any surprise, but disgraced Falcon's quarterback Michael Vick has filed for bankruptcy.  The case was filed as a Chapter 11 reorganization in the Eastern District of Virginia.  Chapter 13 was not available to Vick because his debts far exceed the debt limits imposed by the Bankruptcy Code on Chapter 13 cases...

Conversion to Chapter 7 and Divorce Issues

Posted on July 02, 2008
Whenever I file a Chapter 13 on behalf of a client, I remind my client that five years is a long time, and that a lot can happen during the term of a Chapter 13.  Marriage counselors reguarly opine that financial stress often leads to marital discord, so it should come as no surprise that the stresses inherent in a Chapter 13 will result in marital problems...

What is the "New Bankruptcy Law"

Posted on June 09, 2008
Bankruptcy attorneys like me will frequently refer to something called the "new bankruptcy law." The "new" law is now 3 years old and not really so new. Officially named (or misnamed) the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 or "BAPCPA," this law has been the ...

Homebuilders Facing Financial Crisis or Bankruptcy

Posted on June 05, 2008
I received a call today from a reporter at the Atlanta Journal/Constitution.  He is looking to speak with homebuilders (small or large) who are struggling financially.  He is preparing a feature on the local real estate market and the struggles of local homebuilders and developers...

Using Bankruptcy to Discharge Tax Debts

Posted on June 03, 2008
The video below was recorded by my friend and colleague Darrin Mish of Tampa, Florida as part of the video section of his Get IRS Help web site. I met Darrin several years ago at a tax problem resolution seminar and I regularly refer tax problem clients to him...

Why Does My Ex-Wife Have to Get Notice About My Bankruptcy Filing?

Posted on June 01, 2008
My husband and I are filing a chapter 7 bankruptcy in Georgia. During the 1st consultation our lawyer notified us that the court would notify his ex-wife about us filing bankruptcy. She resides in South Carolina. We are up to date on child support and have never ...

Is it Legal for a Judgment to Survive Bankruptcy?

Posted on May 15, 2008
For bankruptcy lawyers, the word "judgment" raises red flags. This is especially true when the judgment comes from another State. He is a question I received from a non-Georgia resident that raises a lot of questions about judgments. My question is this-my father has a judgment against him by ...

Debtor Audits to Start Again - What Does This Mean?

Posted on May 11, 2008
One of the least discussed changes brought about by the October, 2005 changes to the bankruptcy law was a provision that provides for "audits" of random cases.  When a case is audited, it is selected at random by the  United States trustee and the debtor and debtor's attorney are required ...

The World's Worst Credit Card

Posted on May 05, 2008
The Money, Matter, and More Musings blog reports that it has found the world's worst credit card. This card provides a credit limit of $300, but after fees and costs, the available credit is $53. The other terms and provisions of this outrageous card are literally breathtaking...

Proposed Federal Reserve Regulations Would Restrict Arbitrary Practices of Credit Card Issuers

Posted on May 03, 2008
The Federal Reserve Bank has issued proposed rules that will place extensive limits on common practices of credit card issuers. In a news release dated May 2, 2008, the Federal Reserve proposes rules whereby: Banks would be prohibited from increasing the rate on a pre-existing credit ...

Bankruptcy Implications of a School Board's Loss of Accreditation

Posted on April 26, 2008
My colleague, attorney Scott Riddle, posted a very interesting observation in his Georgia Bankruptcy blog about the bankruptcy implications of Clayton County, Georgia's school accreditation fiasco.  For those unaware of the situation, the Clayton County School System is about to become only the third school system within the past 20 ...

Recent Credit Card Use and Filing for Bankruptcy - What Are Some Guidelines?

Posted on April 24, 2008
Most bankruptcy lawyers will tell you that credit card contributes to most consumer bankruptcy case filings.  Often, overwhelming credit card debt is the primary reason for a filing.  For example, if you have $10,000 or more in credit card debt, and you send in only the minimum payment of 2% ...

What do Bankruptcy Lawyers Do All Day Anyway

Posted on April 21, 2008
To my knowledge there has never been a television drama about bankruptcy lawyers (although there would certainly be a lot of possible story lines!).   So, as a rule, most people do not know what bankruptcy lawyers do all day long.  Los Angeles bankruptcy lawyer Hale Antico answers this question accurately ...

Free Money?????

Posted on April 18, 2008
Revolution Money, a new PayPal-like money transfer service, has a very cool promotion. This company is for real.  It was started by Steve Case, founder of AOL.  I?ve already transferred my money to my checking account so I think that it is legitimate...

Alternatives to Bankruptcy if Your Debt is Less than $20,000

Posted on April 14, 2008
On a fairly regular basis, I get calls from potential bankruptcy clients who don't really have enough debt to justify the time and expense of bankruptcy.  For example, if your only debt is a delinquent $7,500 credit card bill, it hardly makes sense to spend $1,500 to $2,000 for a ...

Foreclosure Practices in North Georgia Come Under Scrutiny

Posted on April 02, 2008
The New York Times published an investigative report on March 30, 2007 entitled Foreclosure Machine Thrives on Woes.  The article addresses what has become a growing problem in bankruptcy cases: out of control fees and costs added to mortgage loan balances failure of mortgage ...

File Your Bankruptcy by the End of the Month or Start the Process Over

Posted on March 31, 2008
If you read this blog and other consumer bankruptcy blogs like Scott Riddle's Georgia Bankruptcy blog or the Bankruptcy Law Network blog, you know that preparing for filing a case involves a great deal of effort on your part to collect information and documents...

Pre-Bankruptcy Balance Transfer - the Debtor Wins?This Time

Posted on March 29, 2008
My Bankruptcy Law Network colleague, Wendell Sherk, recently posted a very helpful case study about a case called In re Brumbaugh in Ohio involving credit card use prior to bankruptcy.  Although Wendell's case study looks to 6th Circuit law (whereas cases filed in Georgia would look to 11th Circuit precedent), ...

CNN and Fortune Magazine Explain The Many Repurcussions of the Sub-Prime Meltdown

Posted on March 29, 2008
A lot has been written about the housing and mortgage finance crisis in the United States.  You may be wondering how and why you would be affected by the failure of a mortgage company that issued high interest loans to borrowers who were not credit worthy...

My Chapter 13 Was Dismissed Two Weeks Ago - Can I Refile a Chapter 13?

Posted on March 25, 2008
A visitor to one of my web sites wrote me to ask about refiling his Chapter 13.  After being in a Chapter 13 for almost 2 years, this gentlemen lost his job and fell behind with his Chapter 13 payments.  His mortgage company filed a Motion for Relief because he ...

Can I Lose My Job if I File For Bankruptcy and My Boss Finds Out?

Posted on March 20, 2008
Recently I received an email from a prospective client who works for a banking institution.  His income is partially commissioned based and with the downturn in the real estate market, he has seen a significant decrease in take home pay.   With the pay reduction he is not able to pay ...

Georgia Legislature Considers Home Foreclosure Relief Bills

Posted on March 18, 2008
Today's Atlanta Journal-Constitution reports that the Georgia state Senate has approved two bills designed to help stuggling homeowners avoid foreclosure.  Senate Bill 519 would increase the pre-foreclosure notice to homeowners from the current 15 days to as much as 60 days...

Should I File for Bankruptcy - Widow on Social Security with $7,500 in Credit Card Debt to Same Bank Where She has a Checking Account

Posted on March 13, 2008
I am 65 years, a widow of 5 years, totally disabled, & my SS check is $1342.00 every 4 to 5 weeks. My SS check is auto deposited in my same bank that I have a $7,500.00 credit card debt owed.   If I were to file for bankruptcy, could my ...

Chapter 13 Dismissed - Will I Lose My Car?

Posted on March 05, 2008
I received an order saying my chapter 13 Bankruptcy case was being dismissed because it has been over 5 years plus no payments have been made in 6 mos. I lost my job of 7 years around may, 2007. About 1 year prior I had surgery on my knees and ...

What Happens to Your Car Accident Claim Rights if the Defendant Files Bankruptcy?

Posted on March 04, 2008
Imagine that you are involved in a car accident that was not your fault.  You hire a lawyer who files suit against the negligent driver asking for damages.  Thankfully the other driver has insurance, so if you win your case, there will be a source of recovery...

Retiree With $25,000 of Credit Card Debt Contemplates Bankruptcy

Posted on March 03, 2008
Thank you for your informative web site.  I have 2 questions I am filing for SS as I am 63 my bill are current however I was laid off last year and my health is failing. If I file would I be able to keep my car?   I owe ...

Math Proves Credit Card Debt Almost Impossible to Repay

Posted on March 01, 2008
My colleague, Houston attorney Pamela Stewart, recently posted on her blog this interesting table that shows just how long it would take to pay off credit card debt if you make only minimum payments.  If you have been sending in only minimum payments and you have a hunch that you ...

What Happens if You Fail to Reveal in Your bankruptcy the Existence of a Civil Claim for Damages?

Posted on February 23, 2008
What happens if you forget to tell your bankruptcy lawyer about a pending lawsuit or even a pending claim?  Nothing good - there is a very strong chance that the defendant can use your omission as a defense to your claim. Massachusetts attorney Michael Goldstein writes about this issue in his ...

Fictional Web Site Illuminates the Sad Truth About Payday Loans

Posted on February 19, 2008
I recently ran across a very enlightening blog describing the activities of a fictional group called the Predatory Lending Association.  A tounge in cheek creation of a legitimate organization called the Center for Responsible Lending, the PLA web site includes the following mission statement: The Predatory Lending Association is dedicated to ...

New Median Income Numbers for Georgia Bankruptcy Filers on February 1, 2008

Posted on February 09, 2008
The United States Trustee has released the new median income table for Georgia debtors, applicable to cases filed February 1, 2008 and thereafter:   February, 2008 Median Income Numbers for Georgia   ...

What Are They Going to Ask Me at My 341 Hearing

Posted on February 08, 2008
No matter how much your lawyer tries to reassure you, there is a good chance that you will be nervous and anxious at your 341 hearing.  Even though the consumer bankruptcy process is generally not very adversarial, no one likes to be in the witness chair...

Do You Want to Be Interviewed by French Television?

Posted on January 30, 2008
I received a call this morning from a colleague who tells me that she was contacted by a French television producer who is working on a news story about the real estate market in Atlanta.  They are looking to interview someone who is facing a foreclosure...

Atlanta Business Chronicle Spotlights Soaring Bankruptcy Filing Rates in Atlanta Metro area

Posted on January 30, 2008
Last week's edition of the Atlanta Business Chronicle includes a series of articles entitled "Falling into Recession."  One of these articles focuses on the high number of bankruptcy filings in the Atlanta area.  Judge Joyce Bihary, the chief judge in for the Northern District of Georgia Bankruptcy Court is quoted ...

Will the Trustee Seize 100% of a Tax Refund if Only One Spouse Files Bankruptcy?

Posted on January 15, 2008
My question is if someone comes to you to file BK individually, but she is due a tax refund that is in her name as well as her husband's, could the bank trustee only take 1/2 of the refund since the other 1/2 is considered an asset of her husband ...

"Credit Freeze" Now Available in Georgia

Posted on January 15, 2008
As of this past November, 2007, all three credit bureaus will permit you to impose a "credit freeze" on your credit report so that you can stop or limit the damage caused by identity theft.  There is no charge to victims of identity theft and a $10 charge for those ...

Protect Yourself from Mortgage Fraud

Posted on January 15, 2008
My colleague, New York bankruptcy lawyer Jay Fleischman, posted the following video produced by FreddieMac on the Mortgage Law Network blog.  This very compelling video demonstrates how mortgage scammers use the foreclosure process to rip off homeowners...

Financial Managment Course Requirement - Filing Deadline

Posted on January 15, 2008
The bankruptcy law requires debtors to attend two educational courses.  The first requirement calls for a "debt management course" and must be completed prior to filing - your certificate of completion is your "ticket in" to the bankruptcy process. The second course, which is the subject of this post, is the ...

Chapter 7 and Middle Class Debtors

Posted on January 15, 2008
Over the past few weeks, I have received several emails from potential clients that begin with lines like "my salary is over $100,000 and I need to file Chapter 7 to protect myself against lawsuits from credit card companies" or "together, my wife and I earn well over $100,000 but ...

Credit Card Offers Being Mailed to You at Accelerating Rates

Posted on January 15, 2008
I read in this week's issue of the Consumer Bankruptcy News (a trade publication for bankruptcy lawyers) that during the 3rd quarter of 2007, credit card companies mailed 1.29 billion (that's billion with a "B") credit card offers to U.S. households.  This is an increase of 2 million offers a ...

Don't Assume that Claims by Creditors Will be Correct and Accurate

Posted on January 15, 2008
The Bankruptcy Code provides that creditors in Chapter 13 cases must file their proofs of claim within approximately 4 months after your Chapter 13 case is filed.   Often, however, your case is scheduled for confirmation before the proof of claim deadline...

Metro Atlanta Foreclosures Up 29% in 2007

Posted on January 15, 2008
The Atlanta Journal-Constitution reports that foreclosures in the 13 county metro Atlanta area are up 29% in 2007 as compared to 2006.  In 2007, there were 58,076 foreclosures, which is equal to around 4,900 foreclosures per month.  Note that these numbers only refer to the metro Atlanta area, not Georgia ...

Do I Have to Give Back the Car I am Financing if I File a Chapter 7?

Posted on January 15, 2008
I have a question about the blog in Nov,2006.  You said that filing bankruptcy can stop car repossion .  But after you file chapter 7 do you get to keep the car and the debt is discharged or you can keep the car only if you promise to make payments ....

Will Your Income Tax Refund Count in a Means Test Calculation?

Posted on January 15, 2008
I am considering chapter 7. I am not sure about the median income info because I am no longer employed and working a temp job and used my retirement to live on. My question has to do with income tax refund check. I don't think I will be getting a ...

Can Project Lifeline Help You?

Posted on December 31, 1969
Earlier this month, President Bush and Treasury Secretary Henry Paulson, together with representatives from Bank of America Mortgage, JP Chase, Citigroup, Countrywide, Washington Mutual and Wells Fargo announced the creation of "Project Lifeline" designed to help financially strapped homeowners avoid foreclosure...

How Does My "Stimulus Package" Check Affect My Bankruptcy

Posted on December 31, 1969
I have received several emails over the past few weeks asking about the impact of the $600 to $1,200 check that many of us will receive in May as part of the Bush stimulus package.   My colleague, Dana Wilkenson explains the impact in her post on the Bankruptcy Law Network ...

How Do I Know if My Chapter 13 Has Been Dismissed?

Posted on December 31, 1969
I have been out of work for the last six months. Prior to my being unemployed I filed Chapter 13 to try and get a hold of my finances.  I haven't been able to make a payment for 4 months now and wanted to know if I haven't heard from ...