Bankruptcy
The Debt Podcast 
Hosted by Jay S. Fleischman, a bankruptcy and consumer lawyer located in New York City. Information and news designed to help you learn more about bankruptcy, debt relief, and consumer credit options.
Post Frequency: 4/day Last Entry: November 21, 2009 at 11:36:30 Recent Entries: 1251
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Getting Ready for Your Bankruptcy Meeting of Creditors
Posted on November 21, 2009Every person who files a bankruptcy case is required to attend a section 341(a) “meeting of creditors” — although for most, this meeting doesn’t involve creditors at all. Usually, the meeting lasts about ten minutes, and it consists of your answering questions from the trustee about your financial affairs...
Mortgage Delinquencies Reach Record High
Posted on November 21, 2009Of no surprise to this Jacksonville Bankruptcy Lawyer, The Wall Street Journal reports a record 14% of American households with mortgages were behind on payments or in foreclosure in the third quarter, according to the Mortgage Bankers Association. The new figures, according to The New York Times, ?...
Hiring the Right Bankruptcy Lawyer: Priceless
Posted on November 20, 2009In 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...
I?m Having Trouble Making My Chapter 13 Payments?Is Converting To A Chapter 7 An Option?
Posted on November 20, 2009A 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 [...
New York Bankruptcy Lawyer Says Not To File For Bankruptcy
Posted on November 20, 2009What 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, 2009Medical 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...
Breathe!
Posted on November 19, 2009Sounds 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...
Who Not To Add As A Friend on Facebook.
Posted on November 18, 2009In 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 [...
13 Reasons To File A Chapter 13 Bankruptcy
Posted on November 17, 200913 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...
Bank refuses to break $100 bill into smaller bills!
Posted on November 17, 2009Unless 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 [...
Bankruptcy Bill Announces Bankruptcy Song Contest!
Posted on November 17, 2009I 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, 2009It 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, 2009It’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...
Video: Not All Debts Discharged in Bankruptcy
Posted on November 16, 2009student 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
Official Bankruptcy Secret
Posted on November 15, 2009Bankruptcy 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, 2009Bankruptcy 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 [...
Who Decides About Reaffirming a Mortgage?
Posted on November 15, 2009Much 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, 2009On 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 14, 2009Discharge 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, 2009New 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 [...
How Much Did The Health Care Debate Cost This Week?
Posted on November 11, 2009The 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 [...
Should the business file bankruptcy
Posted on November 10, 2009The 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...
What Is A Pay Advice?
Posted on November 10, 2009What 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 10, 2009The §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 10, 2009A 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 10, 2009In 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, 2009This 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, 2009There 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 08, 2009As 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 6, [...
Payoff High Interest Credit Cards In 7 Easy Steps
Posted on November 06, 2009Here 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, 2009Thinking 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 06, 2009So 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 06, 2009All 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(This cartoon is posted on with the express permission of the creators of BAPCPA Man.) 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 [...
Massachusetts Homestead Act Applies to Pre-Declaration Contracts
Posted on November 02, 2009Any 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, 2009Clients who fail the bankruptcy ?Means Test? and have to file a Chapter 13 bankruptcy case look at me as thosugh 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, 2009Bankruptcy 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, 2009If 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...
Median Family Income For Louisiana Changes!
Posted on November 01, 2009A 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?
Posted on November 01, 2009Sections 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 November 01, 2009Refinancing can be a fraudulent transfer in bankruptcy
Tell the Truth in Bankruptcy
Posted on November 01, 2009Be 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, [...
How Does A Chapter 13 Trustee Get Paid?
Posted on October 31, 2009A 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, 2009Rhode Island Bankruptcy Court gives key support to certain mortgage modifications.
Tell the Truth
Posted on October 29, 2009Be 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, 2009In 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, 2009There 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, 2009Bankruptcy 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 [...
Where Do I Mail My Chapter 13 Plan Payments? The Trustee is S. J. Beaulieu, Jr.
Posted on October 28, 2009If 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...
Tell the truth ? the whole truth ? and nothing but the truth
Posted on October 27, 2009The 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, 2009Bankruptcy 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, 2009Previously, 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, 2009We 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, 2009Wow, 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 [...
Oregon?s ?Means Test? Median Income Figures Change November 1, 2009
Posted on October 27, 2009Oregon 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 27, 2009Usually, 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 27, 2009Absolutely 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 27, 2009Can 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 27, 2009Although 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 26, 2009attorney client privilege in bankruptcy applies
An individual Chapter 11 bankruptcy may be better for you than Chapter 13
Posted on October 26, 2009In 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 26, 2009This 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 26, 2009As 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 24, 2009If 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, 2009You 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 [...
The unwritten exemptions benefit debtors
Posted on October 23, 2009The 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...
Still getting collection calls and letters AFTER you filed bankruptcy?
Posted on October 23, 2009Most 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, 2009Lawyers 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, 2009When 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, 2009frequently 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, 2009California 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...
Can I Move Out-of-State While My Bankruptcy Is Going On?
Posted on October 20, 2009Americans 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 20, 2009On 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...
Another Unfavorable Decision in the Ninth BAP
Posted on October 20, 2009Recently 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, 2009According 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...
Court Invalidates Foreclosure Sale for Defective Documents
Posted on October 19, 2009Judge 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 19, 2009One 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 19, 2009What 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 19, 2009Chapter 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 19, 2009Chapter 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 19, 2009Sometimes 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 19, 2009Must 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 19, 2009You’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 19, 2009What will they ask me at my bankruptcy hearing?
What Happens if You Don?t Object to Bankruptcy Claim?
Posted on October 19, 2009If 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...
Can I Keep my Non-Exempt Assets in Bankruptcy?
Posted on October 01, 2009If you file a Chapter 7 Bankruptcy, the Chapter 7 trustee will determine if the items you own (your assets) are exempt. To the extent that they are exempt, they are protected from the reach of the trustee and your creditors. Exemptions are determined by the Federal Bankruptcy Law or the Exemption laws of your state...
Can I File Bankruptcy if My Only Income is Social Security?
Posted on September 30, 2009If your only income is Social Security or SSD, you can file bankruptcy. But you may not have to. If you do not plan on going back to work, you may not need to file bankruptcy because you are considered to be “judgment proof”. That means that while your creditors can sue you and obtain a [...
Frequently Asked Questions About Bankruptcy-Part Four
Posted on September 30, 2009I’ve been posting about bankruptcy questions asked most frequently by my clients, and I’ve dealt with questions about the pre-bankruptcy process, procedural issues, and Chapter 13 issues. But almost all my clients want to know about life after bankruptcy...
Top 15 Myths Of Bankruptcy (Unless You?re Counting) Part Two
Posted on September 30, 20096. YOU WILL NEVER GET ANOTHER JOB OR BE ABLE TO RENT AN APARTMENT FALSE – Employers do not want like having their employees distracted from the job by harassment at work or the extra accounting caused by wage executions. Landlords want tenants who can use their salary to pay rent, not paying creditors instead...
Bankruptcy and Utility Shut-off
Posted on September 30, 2009Automatic stay prevents utility companies from shutting off bankruptcy debtors’ utility services on the basis of outstanding debts owed prior to the bankruptcy filing. If a debtor’s utilities have been shut-off prior to the bankruptcy, the debtor, upon the filing of her case, should provide evidence of the bankruptcy proceeding to the company and [...
How Does a Court Judgment Affect my Real Estate and What can I Do about It?
Posted on September 30, 2009If a creditor sues you and obtains a court judgment for an outstanding debt, it most states (including here in Massachusetts) they then have the right to obtain an “execution” on the judgment. This execution can be recorded at a registry of deeds to create judicial lien on real estate...
Consumer Counseling Service Exposes Banking Industry: Finds Top Causes of Debt
Posted on September 29, 2009In an article placed online with Bankrate.com, Steve Bucci of the Consumer Credit Counseling Service of Southern New England lists his Top Ten Causes of Debt. Conspicuously absent is fraud, abuse, intent and extravagance. Bucci’s list does not include scammers, tricksters, credit card abusers...
Top 15 Myths Of Bankruptcy (Unless You?re Counting) Part One
Posted on September 29, 2009TOP 15 MYTHS OF BANKRUPTCY (UNLESS YOU’RE COUNTING) 1. YOU CAN?T FILE BANKRUPTCY UNDER THE NEW LAW *FALSE – The “new” law (actually effective in 2005) put some hurdles in the way of filling for bankruptcy, but the effect is just to slow you down to give your creditors more time to pick at you before you [...
What Happens If I Inherit Money After Filing Bankruptcy?
Posted on September 29, 2009Debtors filing for bankruptcy protection should be concerned about their right to receive an inheritance within the six months after filing for bankruptcy (if some relative has died before filing bankruptcy or the relative dies within 180 days of the debtor's filing), as the bankruptcy trustee can take that inheritance to pay creditors.
Should I File a Chapter 7 or a Chapter 13?
Posted on September 29, 2009Many of my clients come into my office already knowing what chapter of the Bankruptcy Code they want to file under. Others have no idea how they want to proceed. So which chapter is “best”? The answer, of course, depends on the details of the case...
Nicholas Ortiz Speaks at Boston Bar Association
Posted on September 29, 2009Nicholas F. Ortiz, a Boston bankruptcy lawyer specializing in debtor-side issues, and John S. McNicholas, a creditor-side attorney with Korde and Associates, spoke together recently at the Boston Bar Association about bankruptcy case law developments in the First Circuit...
I Need to File Bankruptcy Again, Can I?
Posted on September 29, 2009If you have filed for bankruptcy before, you may be able to file again if you need to. But, to determine if you can get another discharge in bankruptcy, you need to know the petition date and chapter of your previous case. There is a myth that you can only file bankruptcy every seven years...
Thinking About Filing Bankruptcy? Stop those Automatic Payments.
Posted on September 29, 2009I often speak with people who have allowed their mortgage company or a credit card company or two to take a monthly automatic payment from a bank account. This is an easy way to keep up on routine monthly payments, but if you are even remotely contemplating bankruptcy, stop the automatic payments immediately...
Frequently Asked Questions About Bankruptcy-Part Three
Posted on September 29, 2009Once again, I’ll try and answer some of the questions most often asked by my clients about the banrkuptcy process, continuing the procedural questions from Part Two, this time focused on Chapter 13 cases. Bear in mind, sometimes the answers depend on individual circumstances, and you should still seek the advice of experienced bankruptcy counsel [...
Bankruptcy Protects Your Future Property, Even If Your Property Isn?t At Risk Today
Posted on September 28, 2009People are often surprised to learn that even if they don’t file for bankruptcy, their property may be protected (exempt) under their state’s exemption laws. Debtors have to be careful to follow the rules required to protect themselves from their creditors and timely file forms to claim protected property, but if they do there may [...
5 Things Your Creditors Don?t Want You To Know About Bankruptcy!
Posted on September 28, 2009Your creditors are hoping that the consumer never finds out about the five facts listed in the article posted on Bankruptcy Law Network. The debt collectors may lie to you about these five facts about bankruptcy, hoping that consumers remain afraid that their employers, bosses, will find out about the bankruptcy filing or that the filing of a bankruptcy will affect a marriage or spouse...
Is My Bankruptcy Lawyer Legally Required to Keep Representing Me?
Posted on September 27, 2009Here’s a topic you’ll hardly ever see discussed anywhere: is a bankruptcy lawyer required by law to continue representing a client in a bankruptcy proceeding, even if the client won’t or can’t pay the lawyer any more fees? You might be surprised to learn that in most federal court districts, the answer is yes, the lawyer [...
What If I Can?t Speak English at My Bankruptcy Hearing?
Posted on September 27, 2009Interpreters are available in 196 languages for debtors at the meeting of creditors in bankruptcy cases. The U.S. Trustee is providing the interpreter services free of charge by telephone to assist debtors with who do not understand or speak English...
California Woman Launches Debtors? Revolt
Posted on September 27, 2009Drunk from the billions in federal bailout milk, Bank of America decided to raise Red Bluff, California resident Ann Minch?s credit card interest rate to over 23%. Bank of America’s move was both bizarre and self-destructive. Bizarre because Minch, though recently laid off, had continued to make the required payments to the bank, at [...
New York Bankruptcy Lawyer To Sponsor Humanitarian Efforts Through Social Media
Posted on September 27, 2009New York bankruptcy lawyer and past President of Bankruptcy Law Network Jay S. Fleischman has long embraced social media tools such as Twitter and Facebook. But now he’s put his belief to good work by sponsoring Go Global 24, a fundraiser for Doctors Without Borders...
Frequently Asked Questions About Bankruptcy-Part Two
Posted on September 26, 2009A friend and colleage says that you can correctly answer any question about bankruptcy with the phrase “it depends.” In this series I am trying to provide straightforward answers to some of the most frequently asked questions about bankruptcy, where that is possible...
Section 707(b) ?Abuse? Motion: Here?s What to Do When You Receive One
Posted on September 26, 2009You have filed chapter 7 bankruptcy, and everything was going smoothly, until you received a motion from the U.S. Trustee’s office under section 707(b). The U.S. Trustee (UST) says your case is an “abuse” of chapter 7 and that you can afford to repay part of your debts in a chapter 13! However, you know [...
Oregon Declares Tax Amnesty if You Come Clean Now
Posted on September 26, 2009What is Oregon Tax Amnesty and how do I get some? It is a special program to allow Oregonians and others who owe Oregon tax to come clean without financial punishment. An Oregon tax scofflaw can qualify for the amnesty program on pre-2008 tax liability by filling out an application and submitting it to the [...
GM Adds Third Shift To Three Plants.
Posted on September 26, 2009A little bit of good news came from General Motors this week when they announced that a third shift will be added to three of its facilities. Fairfax, Kansas, Lansing, Michigan and Fort Wayne, Indiana will all have a graveyard shift by April 2010. In Fairfax, Kansas alone 945 jobs be added...
Refunds: Bankruptcy Attorney Fees
Posted on September 26, 2009It is not uncommon for a debtor to have second thoughts about filing for bankruptcy relief, terminate attorney services prior to filing, and request a refund. There are many reasons debtors change their mind, such as being persuaded by others that bankruptcy is not in their best interest, finding a cheaper price by less experienced [...
My Social Security Number Is Protected During Bankruptcy, Right?
Posted on September 25, 2009One of the fears of filing bankruptcy is whether or not one’s privacy will be breached. This fear arises from that fact that Bankruptcy is a public record. This means that anyone can show up to any bankruptcy proceeding or pull your bankruptcy paperwork...
Really, It?s Not That Hard to Compile the Information for a Bankruptcy Filing
Posted on September 25, 2009If you have recently inquired about filing bankruptcy, you might have suffered a shock when your lawyer told you what paperwork you would need to produce in order to file the case. If so, read on for a pleasant surprise. Different bankruptcy lawyers often communicate the same information to clients in different ways...
Means Test Numbers Change November 1
Posted on September 25, 2009The income figures used on the bankruptcy means test will change for debtors filing petitions on and after November 1, 2009, the U.S. Trustee program has announced. The numbers could go up or down. Some people are predicting lower figures due to the economic downturn...
You Mean I Can Actually Sue My Creditors In Bankruptcy?
Posted on September 25, 2009In a word, yes! A debtor in a bankruptcy case can file a lawsuit within the bankruptcy case for any number of reasons. The lawsuit is called an adversary proceeding. As the economy continues to struggle, the debt collection industry is also trying hard to get money out of your pocket and into theirs...
The Homestead Exemption in Bankruptcy is Hard to Lose
Posted on September 25, 2009I recently blogged the question “Is it possible to lose my homestead exemption in bankruptcy court?” This is an important question because people who file bankruptcy want to be sure that their homes will be safe. That question has now been clearly answered in the Northern District of New York...
Bankruptcy and Pet Ownership
Posted on September 24, 2009I get to meet of all of my clients’ pets. Doing in-home bankruptcy consultations for 18 years, I have seen Sugar Gliders, Ferrets, Pot Bellied Pigs, African Grey Parrots, Boa Constrictors, Cuban Rock Iguanas, one Alligator and countless varieties of cats and dogs...
Most Frequently Asked Questions About Bankruptcy-Part One
Posted on September 24, 2009Most people want simple, clear, answers to a few simple questions about bankruptcy. Sometimes the answer depends on your circumstances. Most bankruptcy lawyers, however, turn the tables and ask a whole lot of questions before answering the client’s questions...
Reaffirmations in Bankruptcy part 2
Posted on September 24, 2009Reaffirmation is the process used by an individual who has filed bankruptcy to keep their secured assets and continue to pay the secured debt. Mortgage debt is a complicated area involving reaffirmation. it is important to review this in your state as property and foreclosure law varies from state to state...
Do I Have to be Current on My Bills to File Bankruptcy?
Posted on September 24, 2009A regular question we hear from folks comes in two flavors: Do I have to be current on my bills in order to file bankruptcy? How far behind do I have to be to file bankruptcy? The simple answer is that you need to be in debt to consider bankruptcy but where you are in your payment cycle [...
Should Your Corporation or Limited Liability Company File Chapter 7 Bankruptcy?
Posted on September 23, 2009Most of the time, there is no reason to file a Chapter 7 bankruptcy for a corporation or limited liability company. (We?ll call them both ?companies? in this post). However, there are some instances where filing Chapter 7 for the company makes good sense...
When Is A Car Purchased For Business Use?
Posted on September 23, 2009In Chapter 13, a consumer can reduce how much is repaid on an automobile under certain circumstances. But the law limits that reduction, called a “cramdown” where the car was purchased with the loan money within the last 2 1/2 years if the car was bought “for the personal use of the Debtor...
Banks And Credit Unions Can Keep Money When Bankruptcy Is Filed
Posted on September 23, 2009If there is money in a credit union or bank account when a bankruptcy case is filed, the lenders may keep the money in the borrowers banking account to apply against debts owed to them. Credit unions often give their members loans or credit cards, and because the debt is owed to the “bank” that [...
Student Loan Forgiveness, Fact or Fantasy
Posted on September 22, 2009The College Cost Reduction & Access Act went into effect July 1, 2009. This legislation provides for forgiveness of federally-guaranteed student loans for individuals in certain public service occupations provided they meet certain conditions. Eligible borrowers must consolidate the loans into an Income Contingent Repayment Plan (ICRP) or Income Based Repayment Plan (IBRP), make scheduled [...
What is Chapter 7 Bankruptcy?
Posted on September 22, 2009Chapter 7 Bankruptcy, also called ?Straight Bankruptcy? allows a debtor to discharge, or wipe-out, dischargeable unsecured debts. Unsecured means that there are no liens against property you own, given in exchange for the debt. Examples of unsecured debts are credit cards, medical bills, professional?s fees, or personal loans...
Strategic Bankruptcy?
Posted on September 22, 2009More and more often these days, we are hearing about “Strategic Foreclosure Defaults” in the housing market. Such defaults occur typically when a borrower with perfect credit and ability to afford the mortgage, makes the intentional financial decision to let a home foreclose back to the lender...
Car debt key to means test deduction
Posted on September 22, 2009Pledge your car for a small loan and save big when you file bankruptcy. Such idiocy follows from the 9th Circuit Court of Appeals decision in Ransom. At issue was whether a debtor got a deduction on the means test for the costs of acquiring a car if the car was fully paid for...
Will Changes In Student Loan Laws Help Me?
Posted on September 22, 2009It is difficult to discharge student loans in bankruptcy. The House of Representatives passed a bill changing student loan laws, but not their treatment in bankruptcy. Not yet, anyway. As it stands, the government subsidizes student loans made by private banks...
Free Access to Documents Stirs Up Court Administrators
Posted on September 21, 2009Federal court documents, including Bankruptcy Court filings, accessed through a new program called RECAP (PACER spelled backwards) can be viewed without cost. RECAP is an add-on to the free internet browser Foxfire. Because the courts generate revenue to operate their electronic record system called CM/ECF, a program that bypasses their ticket window causes some court [...
Be careful which debts you reaffirm
Posted on September 21, 2009A tire company sent a reaffirmation agreement to me for one of my clients to sign. A reaffirmation agreement is a new contract to pay an old debt that is included in your bankruptcy filing. I laughed when I saw who it was from but I laughed even harder when I discovered it was for [...
Debt Settlement Firms: What Are They Good For? Absolutely Nothing! (Good Gawd)
Posted on September 21, 2009Debt Settlement Firms and War share at least one thing in common: Both are good for absolutely nothing! “Say It Again!” I said Debt Settlement Firms, “Huh…What are they good for?” Absolutely Nothing! “Listen to me now!”THE BUSINESS MODEL The Debt Settlement Firm’s business model is flawed and not in your best interest...
New Bankruptcy Law: Time Deadlines
Posted on September 21, 2009New bankruptcy time deadlines take effect December 1, 2009. Time will now be computed in multiples of 7. This change will minimize situations where deadlines come due on weekends. Bankruptcy has many different deadlines based on multiples of 5 – 5 days to submit documents, 10 days to appeal, 15 days to file pleadings, 20 or [...
Conflicts of Interest in Bankruptcy
Posted on September 21, 2009Avoid conflicts of interest when hiring your bankruptcy attorney.
Will I Lose My Retirement If I File For Bankruptcy?
Posted on September 20, 2009One of the most common fears that people considering bankruptcy have is whether or not they will lose their retirement if they file for bankruptcy. Like all legal questions, the answer to the question of whether or not a debtor will lose their retirement benefits if they file for bankruptcy is that they will probably not [...
Do I need to pass the means test ? I have business debts.
Posted on September 20, 2009You have to pass the means test if your debts are “primarily” consumer debts. This isn’t quite as easy as it sounds. Why? The word “primarily” is not defined in the Bankruptcy Code. So how do we figure this out? Well, first what’s a “consumer debt”? That’s not so hard – “consumer debts” are defined in the [...
My bankruptcy case was dismissed. What does that mean?
Posted on September 19, 2009Recently, I have been receiving a number of calls from people whose bankruptcy case has been dismissed or is about to be dismissed and he or she doesn’t understand what that means. First, the automatic stay that was imposed when you filed your bankruptcy petition is no longer in effect...
PROS AND CONS OF REAFFIRMATION IN BANKRUPTCY PART 1
Posted on September 19, 2009Reaffirmation is one of those strange part of the old bankruptcy code and the new bankruptcy code. (BAPCA) Over the next few parts I am going to talk about why reaffirmation is bit weird and a little different depending on what state and what district you are in...
Ninth Circuit Eliminates ?Ride Thru?
Posted on September 16, 2009On September 15, 2009, the Ninth Circuit Court of Appeals issued its ruling in Dumont with a split 2 to 1 decision, holding that “Ride Thru” is no longer an option in the Ninth Circuit as a result of the new Bankruptcy Laws enacted under BAPCPA...
How Will My Small Business Be Affected By My Personal Bankruptcy? (Part Two)
Posted on September 15, 2009In a prior post, I talked about operating a business as a proprietorship and how your personal bankruptcy may affect your business. See here. Suppose you operate your business as a corporation, how will your personal bankruptcy case affect your business? First, as I had indicated previously, a corporation is a completely separate legal entity...
How to Avoid Bankruptcy Myths and Get Accurate Information
Posted on September 15, 2009There’s a ton of bad information out there about bankruptcy. So how do you know the information you are getting is reliable, and where do you go for answers to your questions about bankruptcy? Here are some tips to avoid bankruptcy myths, and then some suggestions for how to get your questions answered...
Can My Ex-Spouse Use Bankruptcy to Discharge Debts Arising from a Divorce Order?
Posted on September 15, 2009From time to time I receive emails from men or women who have gone through a divorce and whose ex-spouse has filed a bankruptcy. They usually want to know if their ex-spouse’s bankruptcy can eliminate obligations set out in a divorce order. In general, Bankruptcy Code Section 523(a)(5) and 523(a)(15) except from discharge debts arising from [...
Are You in Financial Trouble: A Diagnosis
Posted on September 15, 2009Everyone?s financial situation is different, but there are a few indicators that your finances are already in trouble, or on a fast track there. Often people do not realize the seriousness of their financial situation because of they are living week-to-week...
Keep your car through bankruptcy without risk
Posted on September 14, 2009Debtors whose budget shows they can’t afford to reaffirm the loan on their car may get to keep the car without reaffirmation under a line of decisions by bankruptcy judges. A number of judges have ruled that “pay and drive” survives bankruptcy reform if the debtor signs a reaffirmation agreement that is denied by the judge [...
Can?t Make Your Mortgage Payments? Your Bank Doesn?t Mind?It Will Use Your House for Parties!
Posted on September 14, 2009Watch out, if your $18 million home on the beach in Malibu is turned back to the bank–it might become a “Party House”. This is what happened to victims of the Madoff pyramid scheme, who lost their home as a result. According to this article on AZCentral...
Budgeting Problems and Bankruptcy: Part II
Posted on September 13, 2009Why is it so hard living on a budget? I believe it has something to do with the many unscheduled expenses of life. Do we carefully categorize every dollar spent? Probably not. As a result, we underestimate how expensive life really is. Yesterday, I joined my wife for a quick trip to the local supermarket...
More Student Loans, School Expenses Not Discharged in Bankruptcy
Posted on September 13, 2009More student loans are not dischargeable in bankruptcy than ever before and the definition of student loan has been expanded to include private loans and expenses that are not “loans” in the traditional sense of the word loan. The changes came after Congress passed the s0-called bankruptcy reform act in 2005 known as the Bankruptcy Abuse [...
Chapter 13 Debt Limit Qualifications
Posted on September 13, 2009Recently, the Southern District Bankruptcy Court ruled that certain Chapter 13 Debtors could not qualify for Chapter 13 relief since they exceeded their debt limitations. Pursuant to 11 USc 109(e), chapter 13 relief is not available to debtors with unsecured debt higher than $336,900 or secured debt higher than $1,010,650...
My Chapter 13 Bankruptcy Claims List is Missing Creditors: What Do I Do?
Posted on September 13, 2009You should not panic if all your creditors did not file a proof of claim in your chapter 13 bankruptcy. There are many reasons creditors don’t file claims. If you have given proper notice to all your creditors, all your dischargeable debts, including unfiled claims, will be discharged upon the completion of the plan...
Lower Credit Card Interest and Balance to Avoid Default
Posted on September 12, 2009Negotiate a lower payment on your credit card. Call customer service and ask for a better rate. “Just work with me.” These proven common sense tips could save you money on your credit card accounts. More than one out of 10 accounts went 6 months in default last month and that rate is expected to climb [...
Is it Safe to Fly on an Airline that is in Bankruptcy?
Posted on September 11, 2009Pay attention to these 5 tips to safely fly on an airline that is in bankruptcy. During the past 8 years these airlines filed bankruptcy: Aloha Airlines, America West, ATA Airlines, Braniff International, Continental Airlines, Delta Air Lines, Eastern Airlines, Frontier, Hawaiian Airlines, Northwest Airlines, TWA, United Airlines, and US Air...
Is Filing Bankruptcy A Sin?
Posted on September 11, 2009Chapter 7 bankruptcy discharges debts, wipes them out. We have all been taught to pay our bills. It is wrong not to pay back what we have borrowed, used, spent. Money that we promised to repay when we borrowed it. This is the message of our culture, whether it was money to buy furniture, a car or [...
Credit Reports Before You File Bankruptcy
Posted on September 11, 2009I insist that I see my clients? credit reports before every bankruptcy I file. I prefer to see all three credit reports as they contain valuable information that can help us prepare a better bankruptcy and determine if a bankruptcy is possible. The information contained about an individual?s debts and assets on the reports are [...
Upside Down Car Loans Protected in 8th Circuit
Posted on September 11, 2009The Eighth Circuit ruled this week that certain types of car loans are protected from “cramdown” in the Chapter 13 bankruptcy process, reversing decisions in Eastern Missouri. Agreeing with its sister circuits which have addressed this issue, the Midwestern federal circuit court of appeals concluded that loans made during the 910-day period prior to a bankruptcy [...
How Will My Small Business Be Affected By My Personal Bankruptcy? (Part One)
Posted on September 10, 2009This is a tough question and a lot it depends on how you operate your business. Before the question is addressed, it may be useful to go back over the various forms of businesses typical of a small business owner. Sole Proprietorship: This is where you operate the business by yourself–you have not incorporated and you [...
Being Your Own Bankruptcy Attorney is Like Being Your Own Dentist: It Will Hurt
Posted on September 10, 2009Attempting to be your own bankruptcy attorney is a very bad idea that almost always has disastrous results. This is true for both Chapter 7 and Chapter 13 bankruptcy cases. I was at bankruptcy hearings this week, and I watched a hearing in which the debtors, a husband and wife, had filed their case without an [...
Bankruptcy and the Upside-Down House: American Dream or Just a Nightmare?
Posted on September 07, 2009If you’re planning on filing bankruptcy, you need to weigh all your options before you decide whether you should keep your house, especially if it is a house you can’t afford or one in which you have no equity. While this decision is somewhat different based on whether you will be filing under Chapter 7 [...
Nasty Surprise in Credit Union Car Loan
Posted on September 07, 2009Do you think you could owe twice as much as you thought on your car loan? It could be true, if your car loan is owed to a credit union, you owe a large credit card balance to the credit union, and if the dreaded “cross collateral clause” is lurking in the fine print of the car [...
Lawyers File Bankruptcy Cases Electronically on Internet
Posted on September 07, 2009Filing for bankruptcy is usually done on the internet by your attorney, helped by special bankruptcy software that most attorneys have.
Can I Transfer My Assets Before I File Bankruptcy?
Posted on September 07, 2009I am often asked, “Can I transfer my car or my house to my relatives before I file bankruptcy?” The answer is very simple, NO. It is a lot worse when clients come into my office and they have already transferred an asset (often because of bad advice...
Why Should I File Bankruptcy?
Posted on September 07, 2009Is your financial situation desperate? The Bankruptcy Code may be available to provide you with the “fresh start” you need. We see people in our offices everyday-good, hard-working people-who have fallen on tough times for one reason or another...
Your Car Loan Is from a Credit Union? You May Be in for a Nasty Surprise
Posted on September 06, 2009Do you think you could owe twice as much as you thought on your car loan? It could be true, if your car loan is owed to a credit union, you owe a large credit card balance to the credit union, and if the dreaded “cross collateral clause” is lurking in the fine print of the car [...
Lawyers File Bankruptcy Cases Electronically On The Internet
Posted on September 06, 2009Filing for bankruptcy is usually done on the internet by your attorney, helped by special bankruptcy software that most attorneys have.
Can I Transfer My Assets Before I File Bankruptcy?
Posted on September 06, 2009I am often asked well Can I transfer my car or my house to my relatives before I file bankruptcy. The answer is very simple NO. It is a lot worse when they come into my office and they have already transferred an asset (often because of bad advice...
Why Should I File Bankruptcy?
Posted on September 06, 2009Is your financial situation desperate? The Bankruptcy Code may be available to provide you with the “fresh start” you need. We see people in our offices everyday-good, hard-working people-who have fallen on tough times for one reason or another...
Are Bankruptcy Lawyers ?Debt Relief Agencies?? Soon, the Supreme Court Will Let Us Know
Posted on September 06, 2009When Congress passed bankruptcy “reform” in 2005, it included provisions requiring consumer bankruptcy lawyers to call themselves “Debt Relief Agencies,” restricting the information we could provide our clients, and adding all sorts of disclosures and disclaimers that did little more than generate lots and lots of paper...
Budgeting Problems and Bankruptcy: Part I
Posted on September 06, 2009A good bankruptcy lawyer will take time to help you figure out your monthly household budget. In other words, how much money hits your kitchen table every month and how is it spent? It is all about income and expenses. Calculating income is the easier part...
How Fast Can I File for Bankruptcy?
Posted on September 06, 2009“My wages are being garnished!” “I have a foreclosure scheduled for tomorrow!” “They’re going to come and repossess my car tonight!” As a bankruptcy attorney, I have heard all these, and more, as reasons why a potential client’s case needs to be filed TODAY...
What Is ?Income? In A Chapter 13?
Posted on September 06, 2009Many debtors are surprised to learn that income to the bankruptcy court doesn't just include taxable income. Income can be defined different ways depending on which section of the bankruptcy code is involved.
Valuation of Assets in Bankruptcy: Does it Really Matter? (Part One)
Posted on September 06, 2009The new bankruptcy law, BAPCPA (”Bankruptcy Abuse Prevention and Consumer Protection Act”) requires that a debtor’s assets must be valued at “replacement cost.” In fact, if you meet with your attorney, he will give you a notice required by section 527(c) of the Bankruptcy Code, which probably explains valuation similar to this section from the [...
Will I Lose My House If I File Bankruptcy?
Posted on September 06, 2009Whether or not you will be able to keep a house after filing for bankruptcy will depend on several factors. Are you current on the mortgage? If you are current on the mortgage you can continue to pay the secured debt in a Chapter 7 bankruptcy while getting rid of your unsecured debt such as credit card [...
Bankruptcy and the Upside-Down House: American Dream or Just a Nightmare?
Posted on September 06, 2009If you’re planning on filing bankruptcy, you need to weigh all your options before you decide whether you should keep your house, especially if it is a house you can’t afford or one in which you have no equity. While this decision is somewhat different based on whether you will be filing under Chapter 7 [...
Good News for Responsible Spouses: You Aren’t Responsible for the Other Spouse’s Debts
Posted on September 05, 2009One of the most enduring myths about the law is that spouses are legally responsible for each other’s debts — but it simply isn’t true, not even in a community property state. Why, then, do so many people seem to “know” this is so, when it’s just a myth? The answer probably lies in the nature [...
Lawyers File Bankruptcy Cases Electronically On The Internet
Posted on September 04, 2009Filing for bankruptcy is usually done on the internet by your attorney, helped by special bankruptcy software that most attorneys have.
CAN I TRANSFER MY ASSETS BEFORE I FILE BANKRUPTCY
Posted on September 04, 2009I am often asked well Can I transfer my car or my house to my relatives before I file bankruptcy. The answer is very simple NO. It is a lot worse when they come into my office and they have already transferred an asset (often because of bad advice...
Why Should I File Bankruptcy?
Posted on September 04, 2009Is your financial situation desperate? The Bankruptcy Code may be available to provide you with the “fresh start” you need. We see people in our offices everyday-good, hard-working people-who have fallen on tough times for one reason or another...
Are Bankruptcy Lawyers “Debt Relief Agencies”? Soon, the Supreme Court Will Let Us Know
Posted on September 04, 2009When Congress passed bankruptcy “reform” in 2005, it included provisions requiring consumer bankruptcy lawyers to call themselves “Debt Relief Agencies,” restricting the information we could provide our clients, and adding all sorts of disclosures and disclaimers that did little more than generate lots and lots of paper...
Budgeting Problems and Bankruptcy: Part I
Posted on September 04, 2009A good bankruptcy lawyer will take time to help you figure out your monthly household budget. In other words, how much money hits your kitchen table every month and how is it spent? It is all about income and expenses. Calculating income is the easier part...
How Fast Can I File for Bankruptcy?
Posted on September 04, 2009“My wages are being garnished!” “I have a foreclosure scheduled for tomorrow!” “They’re going to come and repossess my car tonight!” As a bankruptcy attorney, I have heard all these, and more, as reasons why a potential client’s case needs to be filed TODAY...
What Is “Income” In A Chapter 13?
Posted on September 04, 2009Many debtors are surprised to learn that income to the bankruptcy court doesn't just include taxable income. Income can be defined different ways depending on which section of the bankruptcy code is involved.
Valuation of Assets in Bankruptcy: Does it Really Matter? (Part One)
Posted on September 04, 2009The new bankruptcy law, BAPCPA (”Bankruptcy Abuse Prevention and Consumer Protection Act”) requires that a debtor’s assets must be valued at “replacement cost.” In fact, if you meet with your attorney, he will give you a notice required by section 527(c) of the Bankruptcy Code, which probably explains valuation similar to this section from the [...
Will I Lose My House If I File Bankruptcy?
Posted on September 04, 2009Whether or not you will be able to keep a house after filing for bankruptcy will depend on several factors. Are you current on the mortgage? If you are current on the mortgage you can continue to pay the secured debt in a Chapter 7 bankruptcy while getting rid of your unsecured debt such as credit card [...
Are Bankruptcy Lawyers ?Debt Relief Agencies?? Soon, the Supreme Court Will Let Us Know
Posted on September 03, 2009When Congress passed bankruptcy “reform” in 2005, it included provisions requiring consumer bankruptcy lawyers to call themselves “Debt Relief Agencies,” restricting the information we could provide our clients, and adding all sorts of disclosures and disclaimers that did little more than generate lots and lots of paper...
How Fast Can I File for Bankruptcy?
Posted on September 02, 2009“My wages are being garnished!” “I have a foreclosure scheduled for tomorrow!” “They’re going to come and repossess my car tonight!” As a bankruptcy attorney, I have heard all these, and more, as reasons why a potential client’s case needs to be filed TODAY...
Budgeting Problems and Bankruptcy: Part I
Posted on September 02, 2009A good bankruptcy lawyer will take time to help you figure out your monthly household budget. In other words, how much money hits your kitchen table every month and how is it spent? It is all about income and expenses. Calculating income is the easier part...
Valuation of Assets in Bankruptcy: Does it Really Matter? (Part One)
Posted on September 01, 2009The new bankruptcy law, BAPCPA (”Bankruptcy Abuse Prevention and Consumer Protection Act”) requires that a debtor’s assets must be valued at “replacement cost.” In fact, if you meet with your attorney, he will give you a notice required by section 527(c) of the Bankruptcy Code, which probably explains valuation similar to this section from the [...
Will I Lose My House If I File Bankruptcy?
Posted on September 01, 2009Whether or not you will be able to keep a house after filing for bankruptcy will depend on several factors. Are you current on the mortgage? If you are current on the mortgage you can continue to pay the secured debt in a Chapter 7 bankruptcy while getting rid of your unsecured debt such as credit card [...
What Is ?Income? In A Chapter 13?
Posted on September 01, 2009Many debtors are surprised to learn that income to the bankruptcy court doesn't just include taxable income. Income can be defined different ways depending on which section of the bankruptcy code is involved.
After the Meeting of Creditors in a Typical Chapter 7 Bankruptcy
Posted on August 31, 2009The meeting of creditors in a normal consumer Chapter 7 Bankruptcy is often the last thing that the debtor has to do. There is a debtor education course that has to be finished after the bankruptcy is filed, and it must be completed within 45 days of the meeting, but most debtors get it [...
Good News for Responsible Spouses: You Aren?t Responsible for the Other Spouse?s Debts
Posted on August 31, 2009One of the most enduring myths about the law is that spouses are legally responsible for each other’s debts — but it simply isn’t true, not even in a community property state. Why, then, do so many people seem to “know” this is so, when it’s just a myth? The answer probably lies in the nature [...
Debts Are Not Inherited - Don?t Go Bankrupt Trying to Pay Other People?s Debts
Posted on August 31, 2009If a relative dies owing money at the time of death, the debts are not inherited. According to North Carolina laws, and likely other states, those debts might have to be paid from property owned by the person who died, but if the deceased didn’t own property then the debts may have died with the [...
Convert Chapter 13 to Chapter 7 and Keep New Assets
Posted on August 30, 2009Debtors having trouble making monthly payments often consider conversion of their Chapter 13 case to a Chapter 7 case. In general, a Chapter 13 case can be coverted or dismissed at the debtors’ option. However, if the plan has been in operation for several years, the debtor may have acquired new or different assets that were [...
Working Overtime, or Having a Part-time Job: Can the Debtor Quit Before Filing Bankruptcy?
Posted on August 30, 2009Some persons considering filing a chapter 7 or chapter 13 bankruptcy case might be concerned about their level of income being inflated due to working overtime hours, or having a part-time job in addition to their main full-time job. The concern is that the heightened level of income might render the debtor ineligible for chapter 7 [...
What are the advantages of filing Chapter 7?
Posted on August 30, 2009Most clients come to see me not because they don’t want to pay their bills but because the bill collectors won’t quit calling them. If they qualify, I advise them to file a Chapter 7 bankruptcy for two primary reasons. First, the filing of the case imposes an automatic stay which stays any creditor from collecting [...
Bankruptcy and Mortgage Problems
Posted on August 29, 2009The mortgage industry has insisted they could fix the mortgage problem. Then they convinced congress that they can fix the mortgage problem. Then the mortgage industry convinced congress that giving the Bankruptcy Judges the ability to modify first mortgages was unnecessary...
Can I Refile My Bankruptcy If It Is Dismissed?
Posted on August 29, 2009Can you refile your bankruptcy if it has been dismissed? The answer is yes, you can refile your bankruptcy if it has been dismissed. However, changes to the Bankruptcy Code that were in Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) can limit the relief that you receive when you refile...
Means Test Vehicle Ownership Expense Allowed Without a Debt, Says 8th Circuit
Posted on August 29, 2009Whether to allow a debtor to claim a deduction on the bankruptcy means test for the ownership expense of a car if there is no debt on it is quickly being resolved by the courts. Today, the Eighth Circuit Court of Appeals concluded that the deduction would be allowed...
Figuring Out the Monthly Payment in a Chapter 13 Case ? What?s It All About?
Posted on August 29, 2009How is the monthly payment calculated in a chapter 13 bankruptcy case? For most, the monthly payment under a chapter 13 plan consists of what the debtor can afford to pay, after paying all of the monthly living expenses which are necessary to maintain a normal middle class type lifestyle...
Eviction After Foreclosure?Is There An Automatic Stay?
Posted on August 28, 2009Many clients face eviction from their homes after foreclosure. At first glance, even a bankruptcy filing might not help, since § 362(b)(22) states that there is no automatic stay of eviction where a pre-filing judgment for possession has been entered...
RECAP the Law and Privacy Concerns
Posted on August 27, 2009I recently published an article on RECAP, the Firefox extension that creates a public archive of federal court documents accessed from the PACER system and provided to PACER users without charge. Many federal courts use the CM/ECF electronic records system to store and manage case records...
I Filed Bankruptcy And My Mortgage Company Has Stopped Sending Me Statements?What Now? Standing Modification of the Automatic Stay
Posted on August 27, 2009We all know that the automatic stay serves to stop almost all creditor attempts to collect a debt. The automatic stay has been discussed extensively on this blog. But many times, creditors will stop sending monthly mortgage statements because they are under the impression that it violates the automatic stay to continue to send statements...
What Happens If I Forget To List A Debt In My Bankruptcy?
Posted on August 26, 2009When you file for bankruptcy you need to list all of the debts that you owe to you unsecured creditors. The potential consequences if you knowingly fail to list creditors was discussed by Boston Bankruptcy attorney Nicholas Ortiz. So what happens if you simply forget to list a debt that you owe to an unsecured creditor? The answer depends on a number of [...
RECAP, Recycled Bankruptcy Documents for the Public
Posted on August 25, 2009It costs eight cents per page to look at “public” records in most bankruptcy courts. With the advent of CM/ECF, the electronic federal court system for managing and storing case files, the Administrative Office of the US Courts has made many of these records accessible to the public through the “Pay Per View” system described [...
What is a ?Dragnet Clause??
Posted on August 25, 2009Many debtors are unaware of “dragnet clauses,” only to find out the same after a bankruptcy is filed. Dragnet clauses are “cross-collateralization” clauses typically used by credit unions to secure other contractual obligations against collateral that didn’t exist when the original security agreement was created...
New Bankruptcy Laws Tougher on Creditors Violating Automatic Stay
Posted on August 23, 2009The Bankruptcy Abuse Prevention Consumer Protection Act (BAPCPA) which went into effect on October 17, 2005, appears to be living up to its name with the changes to 11 USC 362. Indeed, for creditors who violate the automatic stay, there no longer appears to be a good faith exception due to new “consumer protections...
Converting a Chapter 7 case to a Chapter 13 bankruptcy
Posted on August 23, 2009My friend and colleague, Brett Weiss, wrote a great post on converting a Chapter 13 bankruptcy to a Chapter 7 bankruptcy. He pointed out a number of good reasons to do it, and a number of benefits. But what if you?re in a Chapter 7, and get behind in your home or car payments? Under those [...
What is calculated in ?gross income? for the Means Test
Posted on August 22, 2009When Congress passed the ‘new’ bankruptcy law in 2005, it included a provision that Debtors must prepare and file what is called the Means Test. It looks at all of your income from every source except Social Security benefits. If your income exceeds a certain amount (less allowed expenses) a presumption arises and you are not [...
The Means Test: Don?t Try This at Home
Posted on August 22, 2009The “means test” is complicated and, as is much of the new bankruptcy law, is interpreted in wildly different ways throughout the country. Don’t try to take the test on your own. The means test has been justifiably criticized since the new bankruptcy law (”BAPCPA”) went into effect in 2005...
Converting From Chapter 13 to Chapter 7
Posted on August 22, 2009Your Chapter 13 case is in trouble. The stay has been lifted on your house, or the plan payments are behind and the trustee is threatening to dismiss your case, or you’ve finally decided that the house isn’t worth the headaches you’re going through, and you just want out...
Top 10 Documents To Show Your Bankruptcy Lawyer
Posted on August 21, 2009Gathering records is an important part of preparing for a bankruptcy consultation. Your lawyer will rely on these records to determine if you qualify for bankruptcy relief. Here is a common list of documents I ask my Rhode Island clients to bring to a bankruptcy consultation...
I Filed Bankruptcy A Few Years Ago, Can I File Again?
Posted on August 21, 2009With the grim economic times today, often people who had previously filed bankruptcy are finding that they are facing difficult financial issues today. The question is often asked, can I file bankruptcy today when I had filed a few years ago? As is often the case, the answer depends on very particular circumstances...
Business bankruptcy: whose debt is it?
Posted on August 21, 2009Small business owners feel as though they and their business are one. Before a bankruptcy filing, we have to separate the business from those who operate the business to determine who needs to file. This is most dramatic when the business is a separate legal entity, a corporation or an LLC...
How Can I Afford to Pay My Bankruptcy Attorney?
Posted on August 20, 2009“How do you get paid?” is the question I’m asked most often at parties. After all, they say, if your clients don’t have any money, how can they pay you? The answer depends on the details of a particular client’s case, but there are several ways I usually get paid...
Liens on vehicles and car title loans means your vehicle is not paid for
Posted on August 20, 2009One of the things a bankruptcy attorney needs to know to properly advise a client is whether the client owes money on his or her vehicle(s). While going through the bankruptcy questionnaire with clients, I am frequently told the vehicle is paid for...
Game Show Winnings Subject of Tug-of-War Between Trustee and a Charity
Posted on August 20, 2009This past November, I reported about a high profile bankruptcy case filed in the Northern District of Georgia, just outside Atlanta. State School Superintendent Kathy Cox and her husband, a homebuilder, filed for Chapter 7 bankruptcy. According to news reports the filing was triggered by over $3...
When Should I See A Bankruptcy Lawyer
Posted on August 20, 2009People are frightened by the thought of seeing a bankruptcy lawyer. This causes them to wait to the last minute to get advice and to get help. Sometimes people wait until it is too late for the right help. They continue to delay meeting with the bankruptcy lawyer...
Reader?s Digest Files for Chapter 11 Bankruptcy Reorganization
Posted on August 19, 2009Reader’s Digest, founded in 1922 and America’s best selling consumer magazine, said Monday that it would be filing for Chapter 11 reorganization. From a high of 18 million copies a month in the 1970’s, subscriptions had declined to less than 9 million...
Who Will Be At The Bankruptcy Hearing?
Posted on August 19, 2009When someone files bankruptcy they are normally required to appear at a hearing and testify about their case. The hearings is called a “Meeting of Creditors” or a 341 Meeting. Some people are afraid to get bankruptcy help because they don’t want to go to this hearing, or they’re afraid of having to testify in public...
I Need To File Bankruptcy But Will It Be In The Newspaper?
Posted on August 18, 2009Often prospective clients ask whether their bankruptcy case will be reported in the local newspapers. Generally, the answer is “no,” your bankruptcy will not be reported. Because folks have seen foreclosure notices listed in their local newspapers, they are concerned that, because bankruptcy is a legal proceeding, their bankruptcy case will also be reported...
Consumers who file Bankruptcy Lose the ?Privilege? of paying mortgages by ACH or EFT
Posted on August 18, 2009While attending a Texas advanced consumer bankruptcy seminar last week, I was surprised and amazed (I know, I should not have been) to learn that mortgage servicers consider the ability for a consumer to make their mortgage payments by ACH or EFT (electronic funds transfer) as a “Privilege”...
What Is Your Debt To Income Ratio?
Posted on August 17, 2009Knowing your debt to income ratio, could help you make sounder financial decisions in the future. Your debt to income ratio is used by companies who are considering lending you money to determine if you are carrying too much debt in relation to your income...
Fear of Debt Creates Tunnel Vision.
Posted on August 17, 2009Fear of debt creates tunnel vision. When our debt outweighs our income it is natural to focus on how little we have. The tunnel vision of debt leads to stress and anxiety without any light at the end of the tunnel. For many of my clients this vision prevents them from finding anything good in [...
How Can I Lower My Car Loan Balance in a Chapter 7 Bankruptcy?
Posted on August 16, 2009Your car is worth a whole lot less than you owe on it, and you’re in a Chapter 7 bankruptcy. Is there a way to lower your loan balance? In a Chapter 13, you may be able to do a cramdown, where you reduce the loan balance to the car’s value, but you can’t in a [...
The Meeting of Creditors in a Bankruptcy
Posted on August 16, 2009After the paperwork for a bankruptcy is filed, the court will schedule a ?meeting of creditors.? Often referred to as a 341 meeting (because it?s required under Section 341 of the bankruptcy code), this is nothing more than an opportunity for the trustee assigned to the case or your creditors to ask a few questions [...
Bankruptcy Stimulus Plan
Posted on August 16, 2009Save more money, spend it on your self, and stimulate your local economy. Here is how to do it. Many people are in a credit card rut, paying minimum payments each month while the balance grows beyond control. Those fortunate to have jobs struggle paycheck to paycheck as credit cards gobble up take home pay...
Don?t Abuse Emergency Bankruptcy Filing Process
Posted on August 16, 2009Last year on this blog, my colleague Pam Stewart wrote a post that explains the emergency bankruptcy filing process. As Pam notes, situations do arise in which an individual needs to file bankruptcy immediately but does not have time to gather all of the documentation needed for a complete filing...
9th Circuit Denies Allowance of Vehicle Ownership Expense: Frustrated at Congress
Posted on August 15, 2009The Ninth Circuit recently issued a very important decision in the case of In re Ransom, wherein it ruled that Debtors without vehicle debt can not deduct vehicle ownership expenses on Form B22 (the “means test”), a new form created under the new bankruptcy laws enacted in October, 2005...
What is a ?Consent Order??
Posted on August 15, 2009You’ve fallen behind on your mortgage payments after your Chapter 13 case has been filed. The lender has filed a Motion to Lift Stay. Will you lose your house? Not necessarily, thanks to a Consent Order. In many cases, the mortgage lender will give you one more change to get caught up...
Debt-Settlement Companies: Promises, Promises
Posted on August 15, 2009I just returned to Rhode Island from a weeks? vacation in Maine. While away, I was bombarded by a whole new batch of debt settlement commercials. Who wouldn?t want to settle their debt for pennies on the dollar? If you can avoid bankruptcy and still make all your debts disappear, what?s not to like? These debt-relief [...
You Have $80,000 In Credit Card Debt, What Do You Have To Show For It?
Posted on August 15, 2009At a 341 meeting the trustee may ask, “You have $80,000 in credit card debt, what do you have to show for it.” You may be thinking why is the trustee asking this question? Think of the trustee as a financial detective. The trustee has a duty to investigate your credit card charges...
Can I Keep My Motorcycle if I File Bankuptcy?
Posted on August 15, 2009Filing bankruptcy doesn’t mean you have to give up your motorcycle, as long as the motorcycle payments would be considered a reasonable vehicle expense. Occasionally clients tell me something like, “I was told if I filed bankruptcy, I would not be able to keep my motorcycle...
Do I Owe Too Much To File for Chapter 13?
Posted on August 14, 2009In recent years, many clients have learned that they owe too much to file for Chapter 13 reorganization. Unlike Chapter 7 and Chapter 11, there are limits to how much you can owe for you to qualify for Chapter 13. Currently (the numbers are indexed for inflation) you cannot owe more than $336,900 in general [...
What is CM/ECF and What Does it Do in Bankruptcy Court?
Posted on August 14, 2009If you are involved in a bankruptcy proceeding you may come across the terms CM, which is an abbreviation for the words Case Management, and ECF, which stands for Electronic Case Filing. CM/ECF is the computerized case filing and record management system used by the bankruptcy court to maintain and process bankruptcy court case records...
Court Allows Dismissal of Chapter 13, Rather Than Conversion to Chapter 7, Even Where Debtor Filed Inaccurate Schedules And Sold Home Without Court Permission
Posted on August 14, 2009Most chapter 13 debtors have probably been informed by their bankruptcy lawyers that the accuracy of their bankruptcy papers is critically important, that they shouldn’t incur new debt without the trustee’s permission, and that they can’t sell valuable property, such as their home, without court permission...
Can I Reaffirm My Car Loan If I Convert From Chapter 13 To Chapter 7?
Posted on August 13, 2009From time to time the financial situation of a person who has filed for a Chapter 13 bankruptcy changes for the worst and they need to convert their Chapter 13 bankruptcy to a Chapter 7 bankruptcy. When a bankruptcy is converted from a Chapter 13 bankruptcy to a Chapter 7 bankruptcy the issue of whether or not [...
Who Are the Maryland Greenbelt Chapter 13 Trustees?
Posted on August 12, 2009Note: The individuals listed are private parties, not government employees. Timothy P. Branigan 14502 Greenview Drive, Suite 506 Laurel, MD 20708 Phone: (301)483-9118 Payment Address for Timothy P. Branigan: P.O. Box 480, Memphis, TN 38101-0480 Nancy Spencer Grigsby 4201 Mitchellville Road, Suite 401 Bowie, MD 20716 Phone: (301)805-4700 Payment Address for Nancy Spencer Grigsby: P...
PACER is Public Access to Court Electronic Records
Posted on August 12, 2009Case files in more than 200 Federal Courts are available over the web from any personal computer. The Oregon Bankruptcy court is participating in this program. PACER, the acronym for Public Access to Court Electronic Records, is the system the courts use to provide this access and it is available to everyone...
BANRUPTCY OR DIVORCE WHAT COMES FIRST
Posted on August 12, 2009What come first, the chicken or the egg? The question is what comes first, Bankruptcy or Divorce. Frankly these are two things that can go hand in hand just like frank and beans or macaroni and cheese. Seriously divorce is one of the main reason behind a bankruptcy filing...
Can I Get Rid Of An Excise Tax If I File For Bankruptcy?
Posted on August 12, 2009Excise taxes are discharged in bankruptcy if the underlying transaction, which led to the tax, was more than three years before you file your bankruptcy case. Otherwise they are not affected by a bankruptcy case, although they still need to be listed.
Transferring Property to Avoid Probate: Like Getting Smacked in the Head
Posted on August 11, 2009Transferring property to your children to avoid probate can cause big problems if a child files bankruptcy or is otherwise unable to pay his debts. There I was at the Ripley?s ?Believe it or Not? museum in Myrtle Beach, South Carolina, when I came across a display of humorous tombstones...
Can a small corporation file a bankruptcy case without a lawyer?
Posted on August 11, 2009People file pro se bankruptcy cases all the time. Corporations and limited liability companies sometimes try to do this. Bad idea. Very bad idea. People can file pro se bankruptcy cases because they are flesh and blood people. On the other hand, corporations and limited liability companies are considered “persons” only to the extent that [...
Can I lose my job if I file for bankruptcy?
Posted on August 11, 2009Clients often worry that their boss might fire them if they file a bankruptcy case. But the Bankruptcy Code explicitly prohibits any employer from discriminating against a person in their employment because of their having filed for bankruptcy relief...
Who Are the Maryland Baltimore Chapter 13 Trustees?
Posted on August 11, 2009Note: The individuals listed are private parties, not government employees. Ellen W. Cosby P.O. Box 20016 Baltimore, MD 21284-0016 E-mail: ewc@ch13balt.com Phone: (410) 825-5923 Fax: (410) 825-5904 Payment Address for Ellen Cosby: P.O. Box 1838, Memphis, TN 38101-1838 Gerard R...
What is an Adequate Protection Order?
Posted on August 11, 2009It is not uncommon for debtors in Chapter 13 to fall behind on their trustee, mortgage, or car payments due to circumstances outside of their control. In such situations, secured lenders will move for relief of stay, which is a motion to allow them to proceed with their normal remedies outside the jurisdiction of the [...
Can I Keep My CD If I File For Bankruptcy?
Posted on August 11, 2009Is your Certificate of Deposit protected if you file a bankruptcy case? Maybe. What else do you have, and are you using the federal or a state’s list of exemptions (protected assets)? The federal list has special protected values for special assets, not including cd’s...
Who Are the Maryland Greenbelt Chapter 7 Trustees?
Posted on August 10, 2009Note: The individuals listed are private parties, not government employees. Merrill Cohen 7910 Woodmont Avenue, Suite 760 Bethesda, MD 20814 Phone: (301)881-8300 Steven H. Greenfeld 7910 Woodmont Avenue, Suite 760 Bethesda, MD 20814 Phone: (202)537-7050 Janet M...
What?s The Rule Of Thumb For A Trustee To Take An Asset?
Posted on August 10, 2009There are protected amounts for assets when one files bankruptcy, but that does not mean that a trustee will automatically seize and sell an asset having a value slightly over the protected amount. Much depends on the region you file, the particular pressures on a trustee from Washington when you file, the type of asset, the [...
Who Are the Maryland Baltimore Chapter 7 Trustees?
Posted on August 09, 2009Note: The individuals listed are private parties, not government employees. Monique D. Almy 1001 Pennsylvania Ave. NW Washington, DC 20004 E-mail: malmytrustee@crowell.com Phone: (202) 508-8749 Fax: (202) 628-5116 Marc H. Baer 455 Main Street Reisterstown, MD 21211 E-mail: mbaer@waldmangrossfield...
Can I Make A Maximum IRA Contribution To Protect My Cash?
Posted on August 09, 2009retirement ira contributions protected exempted fraudulent bad faith good faith
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Posted on August 07, 2009If you liked that post, then try these...Part Two: Kinds Of Income Reported In Bankruptcy; What Is True Income? by Susanne Robicsek, North Carolina Bankruptcy AttorneyWhere Are 341 Hearings Held In Southern Oregon? by Karen Oakes, Southern Oregon Bankruptcy AttorneyDoes Changing Your Name Get You Out Of Debt? by Susanne Robicsek, North Carolina Bankruptcy [...
Can I keep my house or car if I file bankruptcy?
Posted on August 07, 2009Any person considering bankruptcy always wants to know what is going to happen to their “stuff”. This is an area of great concern and stress for anyone with financial difficulties. Unfortunately, there is usually not a blanket answer to this question...
How long to complete a Chapter 7 bankruptcy?
Posted on August 07, 2009The most common form of consumer bankruptcy, a Chapter 7 filing, takes about 90 days to complete. For each case filed, the court assigns a trustee and schedules a date for a meeting of creditors. This meeting occurs about 30 days into the process. (And it does NOT take place in a courtroom...
1st Circuit Affirms Means Test Decision
Posted on August 06, 2009The U.S. Court of Appeals for the First Circuit today affirmed in re Rudler, a case in which both the Bankruptcy Court and the Bankruptcy Appellate Panel for the First Circuit allowed a means test deduction for a car payment when then car was being surrendering in the course of the bankruptcy case...
Property: Do I Really Have To List Everything?
Posted on August 06, 2009Bankruptcy is all about protecting you and your property from creditors. But do you really have to disclose ALL of your property in a Chapter 7 filing? Will anyone find out if you don?t? Here is the short answer: YES. In a typical Chapter 7 petition, a debtor will be asked no less than 10 times whether he [...
NC Bankruptcy Debtors To Get Higher Home Equity Protection
Posted on August 06, 2009Bankruptcy protects some property from creditors, and in North Carolina that protection is now set to increase on December 1, 2009 when the amount of residential home equity protected from creditors will increase from $18,500 per debtor to $35,000 per debtor...
Can I Include My Foreclosure In My Bankruptcy?
Posted on August 05, 2009Can a house that has been foreclosed on be included in a Bankruptcy? A foreclosure proceeding is used by a creditor to seize and sell a house on which the creditor holds a mortgage. If you live in a State such as Louisiana that allows the creditor to get a deficiency judgment, and if the creditor did not get all of [...
Will a Payday loan help me with credit card debt?
Posted on August 05, 2009I have so many clients tell me “I’m not behind on any of my bills.” or “I’ve never missed a payment.” When I ask them why are they seeking bankruptcy advice, they say, I have run out of credit. Further questioning reveals they have been taking cash advances from one credit card to pay another...
Can I File A Bankruptcy Only On My Medical Bills?
Posted on August 05, 2009Just the other day I was asked can I file a medical bankruptcy? The answer is no. There is no such thing. You can file bankruptcy on your medical bills. However your bankruptcy must include every bill and everyone that you owe. You can not just file on the medical bills...
Do I Have To Go To Court If I File Bankruptcy?
Posted on August 04, 2009Filing bankruptcy usually doesn?t require a court appearance in front of a judge. It does, however, require the debtor to appear at a meeting in front of a trustee and be questioned about the paperwork filed in her case. If you file as a married couple, both spouses will have to appear...
What is the ?Meeting of Creditors??
Posted on August 04, 2009The phrase “Meeting of Creditors” strikes fear into most of my clients’ hearts. They hear these words and get a mental image of sitting in a large, darkened room with a spotlight in their face and their creditors in hooded robes surrounding them...
New Uniform Document Production List For Chapter 7 Cases in the Eastern District of North Carolina
Posted on August 04, 2009The Eastern District of North Carolina has created a uniform document production list. All debtors in chapter 7 cases are required to produce the documents that are listed below: 1) Tax Returns including the W-2s attached to the tax returns for the most recent year along with copies of any extensions filed...
How much can Bankruptcy Court garnish from my paycheck?
Posted on August 04, 2009A Bankruptcy Court garnishment can be as high as you want it to be. There is no limit on the amount a Court can take from your paycheck because the federal limit on paycheck garnishment does not apply to chapter 13 payments. The amount of the garnishment is selected by the debtor, who submits a [...
Marital Settlement Agreements Blessed by Ninth Circuit
Posted on August 02, 2009On June 25, 2009, the Ninth Circuit Court of Appeals ruled that a Chapter 7 Trustee could not undue a highly unbalanced property distribution arising from a dissolution proceeding where judgment was entered in State Court. Such a ruling is significant in now providing more security to debtors that seek bankruptcy after divorce, and where [...
Chapter 7 Bankruptcy - 9 Steps In Getting A Fresh Start
Posted on August 02, 2009If you’re considering a chapter 7 bankruptcy filing to eliminate your debts, you may be wondering how the process works. For many filers, bankruptcy can be an overwhelming process, but understanding how bankruptcy works can make the process a bit less frightening...
I Am In A Chapter 13?Can I Convert To A Chapter 7, I Don?t Like Chapter 13
Posted on August 01, 2009A chapter 13 bankruptcy is often viewed as a repayment or reorganization plan, while a Chapter 7 bankruptcy is called a liquidation. In a Chapter 13, priority debts (back taxes, child/spousal support) are usually paid in full, followed by short-term secured debt (cars, arrearages on mortgages, property taxes, etc...
What Is An Automatic Stay?
Posted on August 01, 2009What is an Automatic Stay? Creditors have many weapons in their arsenal to try to collect on a debt: Repeated telephone calls to your house; Repeated telephone calls to you at work; Letters, Letters, Letters; Letters from an attorney; Lawsuits; Garnishments...
Post-Petition Mortgage Payments?Good Records are Key
Posted on August 01, 2009When you file a Chapter 13 to restructure your debts, you usually keep making your regular mortgage payments. In some districts, you make those payments to the Chapter 13 trustee, essentially consolidating all you debt payment. In those districts the trustee is referred to a conduit for mortgage payments...
?Current Monthly Income:? They Didn?t Ask Me!
Posted on August 01, 2009If you decide to file bankruptcy, you must first calculate your “current monthly income.” Current monthly income (?CMI?) is a highly artificial number that can have big implications on whether you are allowed a Chapter 7 discharge or how much you must pay to your creditors in Chapter 13...
My Town Can?t Pay It?s Bills?Can It File Bankruptcy?
Posted on August 01, 2009States, cities, towns and villages all over the country are in financial distress. Some, like the village of Johnson City in Broome County, New York are considering merging into the surrounding town of Union. Others are not paying their payrolls on time, or drastically cutting back on essential services...
What is the Grace Period for my Chapter 13 Plan Payment?
Posted on August 01, 2009One of the most common questions for bankruptcy lawyers is how late can you be in paying a Chapter 13 bankruptcy plan. The simple answer really is that there’s no grace period. The Bankruptcy code requires that payments begin no later than 30-days after the case is filed and that they continue to be made every [...
How Long Will Bankruptcy Affect Me?
Posted on August 01, 2009If you’ve been thinking about filing bankruptcy, you have probably wondered what your life will be like afterwards. Many consumers assume that, since your credit report will list a bankruptcy for ten years, they’ll be unable to obtain any kind of credit at all...
Bankruptcy isn?t the source of stress
Posted on July 31, 2009My friend Jay Fleischman is on point that our clients filing bankruptcy are stressed. Let me posit that the cause of the stress is not “filing bankruptcy” but 1) the situation that lead to the decision to file; 2) fear of the unknown, fueled by bad information and unsupported assumptions about the process; and 3) [...
Did The Louisiana Legislature Increase The Homestead Exemption?
Posted on July 31, 2009In a recent article I reported on two proposals before the Louisiana Legislature to increase the homestead exemption: one bill would have increased the exemption to $100,000.00 while the second bill would have made the homestead exemption unlimited. The bad news is that neither of these bills passed in its original form...
Getting A Bank Account After Being Reported To ChexSystems
Posted on July 31, 2009If you have ever been in trouble with your bank, you have most likely been reported to Chex Systems. Perhaps you’ve had some NSF checks, or maybe you closed an account without settling a negative balance with the bank. No matter the reason, once you are reported to Chex Systems, managing your finances can be [...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 6 Of 6.
Posted on July 31, 2009In the previous articles in this series I discussed various options that are available to a debtor who is in a Chapter 13 Bankruptcy but who can no longer make his Plan payments. Those options are: A Hardship Discharge. Modification of your Chapter 13 Plan to allow Suspension of payments for a period of time or to Extend [...
What Happens If The Information On My Bankruptcy Schedules Is Wrong?
Posted on July 31, 2009When a debtor files bankruptcy, part of the process requires that they list all assets (all the stuff that they own) and all liabilitlies for the bankruptcy court to review. This rule has been in place for a long time, but under the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, the rule was emphasized...
Student Loan Bankruptcy Discharge, A Hardship!
Posted on July 31, 2009It is hard, not impossible, to discharge student loan debt in bankruptcy. Only government guaranteed loans were protected from discharge before 2005, now student loans from private banks are protected. To qualify for discharge, payment of a student loan must present an undue hardship to the debtor or a dependant of the debtor...
Perjury In A Bankruptcy Case Can Land You In Jail!
Posted on July 30, 2009Perjury is a federal crime when it happens in conjunction with a bankruptcy case. When my clients sign their Petition I inform them no less than 4 times that they are signing the documents under penalty of pejury that everything must be truthful and accurate to best of their knowledge...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 5 Of 6.
Posted on July 30, 2009In Part 2, Part 3, and Part 4 I discussed various things that can be attempted to save a Chapter 13 Bankruptcy Plan if you are having difficulty making the Plan payments. You have discussed these various options with your attorney and none of them are available to you...
I?m in Chapter 13 and Behind on Mortgage Payments Again?What Now?
Posted on July 30, 2009Many of my clients end up in bankruptcy because of a series of unfortunate events. Sometimes those events continue after the case is filed, and their troubles continue. When you file a Chapter 13 payment plan, you are generally required to keep making your regular mortgage payments, or resume making those payments if you have [...
Children And 341Meetings Do Not Mix.
Posted on July 30, 2009I am sitting in 341 meetings all day today. So far several debtors have brought their very young children to the meeting. These debtors are also getting upset because they believe that they should go first and are not. Now the children are in melt down mode and it is miserable for everyone...
I Need to File Because I?m Getting Married
Posted on July 30, 2009Bankruptcy lawyers hear from potential clients fairly regularly that they need to file quickly because they don’t want their future wife or husband to be held responsible for their debt problem. In most cases, their fears are misplaced. The marriage, by itself, usually will not make the new spouse responsible for your past debts...
Top 4 Ways To Deal With The Stress Of Bankruptcy
Posted on July 30, 2009If you have discovered that your debt has become unmanageable, and you don’t see any way out of your financial situation, you may be considering bankruptcy as a solution. As many people can tell you, though, bankruptcy can be quite stressful. Here are some techniques you can use to reduce your bankruptcy related stress...
Verification of All Information Important in Bankruptcy
Posted on July 29, 2009Last week I was attending a meeting of creditors in a Chapter 13 case. I tell my clients who are nervous at the thought of attending a meeting of creditors that no one is ever going to make a television show about bankruptcy court–its just boring...
After Bankruptcy: Florida Is A Renter?s Market
Posted on July 29, 2009A recent study shows that in some areas of the Country, renting is cheaper than owning. In Florida, especially Southwest Florida, that study speaks volumes. Cities in Southwest Florida, like Fort Myers, Cape Coral, Lehigh Acres and Port Charlotte have been hit pretty hard by the devastating real estate market and foreclosures...
Do You Even Qualify For Chapter 13 In Southern California?
Posted on July 29, 2009Although the recent downturn in real estate is driving thousands to seek chapter 13 bankruptcy relief to save their homes, the same downturn is also having the ironic affect of denying eligibility to debtor for that very relief. To file for chapter 13, a debtor must meet the qualifications of 11 USC 109...
Bankruptcy ?Means Test? Doesn?t Dictate Chapter 13 Plan Payments, 5th and 7th Circuit Appeals Courts Say
Posted on July 29, 2009The chorus is growing — two more appeals courts have ruled that the bankruptcy “means test” (also known as Form B22C) doesn’t establish how much a chapter 13 debtor needs to pay each month into the plan. Instead, both the Fifth and Seventh Circuit Court of Appeals recently said that the means test only provides a “starting [...
Reaffirmation Agreement in Bankruptcy, Should I Sign?
Posted on July 29, 2009A bankruptcy reaffirmation agreement is a new promise to pay an old debt. A reaffirmation agreement is enforceable if it is properly executed and approved by the court. There can be many reasons to reaffirm a debt. However, it is important to understand what happens if you reaffirm...
Bankruptcy and the MLM Distributor - Part III Income Supression Issues
Posted on July 29, 2009Over the past few days, I have written two posts about special problems that arise when an MLM distributor seeks to file bankruptcy. In the last post I spoke about the presumption of abuse problem that could arise if an MLM distributor filed a Chapter 7 immediately after losing his commission stream due to a [...
Using Your Student Loans To Pay Off Debts
Posted on July 29, 2009So you’re getting a higher education as a means to start or further your career, but the debts you’ve amassed over the past few years are vying for your attention. You may have thought about using your student loans to pay down credit cards or other debts… but is it really worth it? When you sign [...
Do I Have to Include My Car and MY House In MY Bankruptcy?
Posted on July 28, 2009This question is asked more times in my bankruptcy office than I can count. I am sorry to say that you do have to include your car, your House, your wedding ring and all your other property in your bankruptcy. My clients then tell me their friend didn’t include their car or their house...
I?m Not In School ? What is this ?Means Test? I have to Pass?
Posted on July 28, 2009If you are looking into bankruptcy you have probably heard about having to “pass the means test”. OMG, you might be thinking, do I have to take a test in order to even file? Where do I get the list of what to study?!? If I fail, can I retake the test? Don’t worry about being [...
Dealing With Student Loan Debt After Bankruptcy
Posted on July 28, 2009If you are planning on filing Chapter 7 bankruptcy, you probably know that most of your debts will be discharged. There are some debts, though, that bankruptcy will not erase. Most notably, in many instances, you will still retain student loan debts. This can prove to be a quite a challenge, especially if you owe [...
Can I keep my car if I file bankruptcy?
Posted on July 27, 2009One of the most common questions I get in a first client meeting is whether if you file bankruptcy you can keep your car. In almost most cases we file, the answer is yes you can! Clients need cars to get to work and many people will avoid filing and becoming a debtor if they [...
Before You File For Bankruptcy, Review The Paperwork
Posted on July 27, 2009Once the paperwork to file a bankruptcy is completed it needs to be signed. This sounds easier and simpler than it really is. It is your opportunity to confirm that your attorney heard everything you told him and has properly accounted for it. Be sure to read everything carefully and make sure that all of your [...
Buying A Car Before Or During Bankruptcy
Posted on July 27, 2009If you are thinking of filing for Bankruptcy, one of the items on your checklist to think about is your car. Should you purchase a new car or used car prior to filing for bankruptcy protection? What about your spouse’s car? As an attorney, the current status of the law would prevent me from counseling [...
You Can?t Lose Your $17,165 Social Security Check in a Bankruptcy Case, Appeals Court Says
Posted on July 27, 2009According to the Eighth Circuit Bankruptcy Appellate Panel, a bankruptcy debtor cannot lose social security benefit payments in a bankruptcy case, even the money is paid as a $17,165 lump sum for past benefits. In re Carpenter, No. 08-6046 (8th Cir. BAP July 13, 2009), held that section 407 of the Social Security Act excludes such [...
Husband Killing Did Not Get Hardship Discharge for Wife
Posted on July 27, 2009Mrs. Brown shot her husband and complained that the decrease in family income after his death made Chapter 13 payments a hardship. She requested a discharge without making all the required payments. The bankruptcy judge asked the widow Brown to explain herself...
Payday Loans - The Ugly Truth
Posted on July 27, 2009If you’re like most people, you’ve likely experienced at least one time in your life when you needed to pay bills or buy essentials, but didn’t have the funds to cover your expenses. You might have considered taking out a payday loan to float you for a while, especially if you didn’t have access to [...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 3 Of 7.
Posted on July 26, 2009In Part 2 I discussed the option of a Hardship Discharge if you find yourself unable to make Chapter 13 Plan payments. Another option to help if you are unable to make your Chapter 13 Plan payments is to suspend the payments. In order to be able to suspend the Plan payments you must be in a Plan that [...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 4 Of 7.
Posted on July 26, 2009Suspension of Plan payments during a Chapter 13 Plan was discussed in Part 3 as a way to address the situation where Plan payments cannot be made. A variation on suspension of Plan payments is to extend the length of the Chapter 13 Plan in order to lower the monthly payments...
Don?t Float Checks To Cover Your Expenses
Posted on July 26, 2009If you’re running low on personal funds, and you have no room left on your credit card, it may occur too you to float a check or two to pay for essentials. The idea behind floating is that you can write a check for a purchase, and deposit the money to cover it in your [...
Surrender in bankruptcy doesn?t transfer title
Posted on July 25, 2009Even if you state your intention to surrender property in your Chapter 7 bankruptcy, the creditor will stilll have to foreclose to relieve you of ownership. The election or intention to “surrender” in the bankruptcy papers is really nothing more than an announcement that the debtor doesn’t intend to attempt to keep the property...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 2 Of 7.
Posted on July 25, 2009In Part 1 I provided a general overview of some options that may be available to you if you have found that you are no longer able to make the payments required by your Chapter 13 Plan. One possible option is a Hardship Discharge. If your financial situation has changed and the changes have made it impossible to [...
Bankruptcy and the MLM Distributor - Part II Presumption of Abuse
Posted on July 25, 2009A few days ago, I wrote Part I of a series entitled Bankruptcy and the MLM Distributor. In that post I described my typical MLM distributor as an entrepreneurial, motivated businessperson who worked full time on his MLM business and ran into debt problems because of a sudden or unexpected change in his compensation plan, [...
What Not to do When Preparing to File Bankruptcy?
Posted on July 25, 2009Certain actions prior to a filing can cause problems in a bankruptcy case. These problems can range anywhere from having certain debts be declared non-dischargeable, having a general discharge denied, having payments or transfers reversed, among other things...
Buying A Home After Bankruptcy
Posted on July 25, 2009If you’ve just filed for personal bankruptcy, or you think you may have to file in the near future, you may be worried about whether you’ll ever be able to buy a home. Many people think that because a bankruptcy remains on a credit report for a decade, they’ll have to keep renting for quite [...
Rebuilding Good Credit After Bankruptcy
Posted on July 25, 2009Perhaps you’ve taken an objective look at your personal finances, and you’ve decided that the only logical way out of your financial situation is to declare personal bankruptcy. If you’ve reached this conclusion, you’re probably wondering if you’ll ever be able to achieve a good credit score again...
Ninth Circuit Allows Post Petition Attorney Fees as Unsecured Claim
Posted on July 24, 2009On June 23, 2009, in the case of SNTL Corp. 2009 WL 1758759 (9th Cir. Cal.)), the Ninth Circuit Court of Appeals concluded that unsecured creditors may claim attorney fees incurred postpetition based on a prepetition contract with the debtor. The Ninth Circuit essentially adopted the Bankruptcy Appellate Panel decision and attached the same as an [...
Federal Parent Plus Student Loan Discharges On Death
Posted on July 24, 2009Death of the parent or dependent student discharges the obligation to pay a Federal Parent Plus student loan. Most people learn the hard way that student loans are difficult if not impossible to discharge in bankruptcy. The seminal case, In re Bruner, has been discussed on this site...
Who is the U.S. Trustee?
Posted on July 24, 2009The Office of the United States Trustee is an arm of the Department of Justice charged with certain duties in bankruptcy cases. The role of the U.S. Trustee can differ from district to district, but principal responsibilities are to appoint and supervise case trustees, i...
Cramdown On First Mortgages Gets A Second Look By Senate
Posted on July 24, 2009Several months ago, there was a bill before Congress which, if passed into law, would have allowed Bankruptcy Judges to modify first mortgages on homesteads. However, the bill failed in the Senate. As of now, the Bankruptcy Code does not allow a debtor to cramdown the mortgage on his first mortgage...
What To Do If You Can?t Make Chapter 13 Plan Payments? Part 1 Of 7.
Posted on July 24, 2009You are in a Chapter 13 bankruptcy and something has happened that is making it impossible to make your Chapter 13 Plan payments. What should you do? First, the worst thing you can do is to do nothing! If you stop making your Chapter 13 Plan payments to the Trustee eventually the Trustee will dismiss your Chapter [...
Saving Your Home After Job Loss
Posted on July 24, 2009Most people who have lost their jobs immediately become afraid of lose their homes - and for good reason. After all, the stress of going foreclosure and being evicted from your home is an experience no one wants to have to endure. Plus, most homeowners view mortgage lenders as being unsympathetic to the plights of [...
Attorney on the Go, Chip Parker, releases video blogs on YouTube
Posted on July 23, 2009Jacksonville bankruptcy attorney Chip Parker has begun releasing a series of video blogs entitled Attorney on the Go on the Bankruptcy Law Network YouTube Channel. The topics will cover a variety of bankruptcy and foreclosure basics. You can subscribe to the channel, and whenever any of the BLN authors post a video blog, you’ll be the [...
Are You The Next Success Story? Bankruptcy Is A New Beginning
Posted on July 23, 2009Bankruptcy is not the end of the road. Bankruptcy is only the beginning. I’ve been practicing bankruptcy law for many years, and I can honestly say that I have helped thousands of families receive a Fresh Start. The one thing that I always wonder is: What will they do with that Fresh Start? Most Bankruptcy [...
What Debts are Dischargeable?
Posted on July 23, 2009Debts that are generally dischargeable in bankruptcy include credit card debts, unsecured personal loans, outstanding medical bills, overdue utility bills and other types of unsecured obligations owed by a debtor. With secured debts, liens are generally discharged in special circumstances, via special proceedings...
Is There Life After Bankruptcy?
Posted on July 23, 2009Even when faced with a financial crisis, many people hesitate to declare personal bankruptcy, primarily because they think they’ll never be able to take out a home mortgage, obtain a credit card, or buy a car again. They envision themselves having to pay bills through Western Union, and being unable to use a credit card [...
Bankrupty and the MLM Distributor - Part I: Why there is Enhanced Risk
Posted on July 22, 2009Over the past couple of years I have met with several potential clients who were in the MLM (multi-level-marketing) business and were looking to file (Chapter 7) bankruptcy. Recently I spent a good 45 minutes on the phone with another potential client in the MLM business and this conversation got me thinking about the issues [...
Reasons to file a Chapter 13
Posted on July 22, 2009Individuals file Chapter 13 bankruptcy for a variety of reasons. The following are some of the most common ones we hear from clients: 1. You fell behind on your mortgage or car payments and need bankruptcy to catch up. 2. You make more than the median income in your state and do not pass the [...
When is Bankruptcy the Right Choice?
Posted on July 22, 2009In today’s economic climate, an increasing number of people are discovering their incomes are no longer enough to pay for their debt and essential expenses. Hundreds of companies are outsourcing work and laying off workers every week.. not to mention ?encouraging? workers to resign from their jobs so that employers can avoid paying unemployment benefits...
Stephen Baldwin - Another Celebrity Bankruptcy
Posted on July 22, 2009Stephen Baldwin file Chapter 11 Bankruptcy yesterday. He is just another celebrity who has been brought back to reality. Although I have yet to see the Petition and Schedules that were filed in the Bankruptcy Court, news reports state that the actor is millions of dollars in debt...
The Bankruptcy Means Test
Posted on July 21, 2009The 2005 amendments to the bankruptcy code created a new ?Means Test.? The main purpose of this test is to a) determine if an individual is eligible to file a Chapter 7 bankruptcy and b) to determine the disposable income of a Chapter 13 debtor who is above the median income...
Credit Counseling And Filing Bankruptcy
Posted on July 20, 2009The law requires that all debtors take a credit counseling course before a bankruptcy is filed. That means that both spouses in a joint case must take the course. It isn?t a multi-session course: just one class of an hour to two on the phone or the internet...
Can I Bankrupt My Student Loan?
Posted on July 20, 2009Student loans are not discharged in a bankruptcy proceeding unless repayment of the loan will create an undue hardship for the debtor or the debtor’s dependents. The bankruptcy code prevents student loan discharge in most cases. Many courts have adopted a test formulated in 1987 by the Court of Appeals for the Second Circuit and [...
What to Bring to an Initial Bankruptcy Consultation
Posted on July 19, 2009Many times, it is possible for a bankruptcy attorney to tentatively diagnose your financial problems and outline solutions without detailed documentation. However, the following documents may be helpful during an initial bankruptcy consultation: 1. A recent pay slip for you and your spouse (if you are married)...
Selling Your Home in Bankruptcy (Part One: Chapter 7)
Posted on July 19, 2009If you?ve filed for bankruptcy under Chapter 7, you can usually still sell your home. But there is likely to be a delay before you can complete the sale, so you need to understand basic bankruptcy procedure. Can your home be sold? The answer is: It depends...
Bankruptcy Exemptions in Massachusetts
Posted on July 18, 2009Bankruptcy debtors have the right to exempt property from the bankruptcy estate up to a certain dollar amount. In Massachusetts, bankruptcy debtors have the option of using either the Federal or Massachusetts exemptions to do this. Where a debtor has a large amount of home equity they want to protect, he or she [...
What debts to include in bankruptcy?
Posted on July 18, 2009My clients struggle deciding which of their debts should be listed in their bankruptcy papers. This is wasted time. My headline poses a trick question. There is no decision to make: you include ALL of your debts. Period. “But, but, but,” the clients sputter...
Wrong Amount Listed for Bank Account Balance; Debtors Lose Over $13,000
Posted on July 17, 2009Think you can always amend the bankruptcy schedules later if it turns out there was more in the bank than was originally listed? Think again — that’s the message of In re Barrows, No. 09-6003 ((8th Cir. BAP July 10, 2009). In Barrows, the debtors were not allowed to amend their exemptions, thereby losing over [...
Bankruptcy No Document Proof of Claim Disallowed
Posted on July 17, 2009On July 14, 2009, the 10th Circuit Court of Appeals issued a decision disallowing a “no doc” claim in a Bankruptcy Case. Such a holding by the 10th Circuit now binds all Courts in that Circuit and will have an impact on similar proof of claims throughout the United States...
Reasons to file a Chapter 7 Bankruptcy
Posted on July 16, 2009There are many reasons people decide to file Chapter 7 bankruptcy. Here are a few we have been seeing a lot of recently: 1. Your monthly debt payments, when combined with your living expenses, exceed your monthly income. 2. You would like to wipe out your debts and receive a fresh start as quickly as possible...
Consumer Bankruptcy Cases Approaching Record Level
Posted on July 16, 2009When Congress changed the bankruptcy law in 2005, cases spiked. People feared, and rightly so, that bankruptcy cases would get harder to file. Guess what? Bankruptcy cases are spiking again. According the the American Bankruptcy Institute, consumer bankruptcy cases for 2009 will be at the highest level at any time since the 2005 peak...
Online Federal Tax Filing Available For Free
Posted on July 15, 2009Most bankruptcy debtors will need to file their taxes before, or soon after, filing for bankruptcy. If your adjusted gross income for 2008 was $56,000 or less, you are eligible for free tax preparation and e-filing of your federal taxes. This services is available through a partnership between the Internal Revenue Service (IRS) [...
Should I Keep My House In A Bankruptcy Filing?
Posted on July 14, 2009With all the news stories about the foreclosure crisis and with the available programs for folks to try to maintain their house, a more basic question arises–should I even keep my house in a bankruptcy filing? To be sure, this is not a decision to be made lightly and only after exploring all available options...
Remodeling Contractors - Bankruptcy Considerations Part 1
Posted on July 14, 2009Over the past couple of years I have met with several dozen remodeling contractors to discuss bankruptcy. Like many places, the Atlanta area has experienced a downturn in home building and home renovations and building contractors of all sizes have suffered greatly...
Means Test and 707(b): Huge House Payment, Motor Home, and Boat Payments Allowed for Chapter 7 Debtors
Posted on July 14, 2009A surprising result in a California bankruptcy case: an $800,000 house with a monthly payment of $4,446, a motor home with a monthly payment of $396, and a boat with a monthly payment of $760 actually enabled a married couple to successfully file chapter 7...
Who Needs Small Business Chapter 11? (Part Two)
Posted on July 14, 2009Chapter 11 small business part one discussed some of the reasons businesses lose money, and the start of the analysis business owners need to do before deciding if a small business Chapter 11 makes sense. So, you figure out what it cost to run the business every month, then, you know how much you need to [...
Are the Chicago Cubs going bankrupt?
Posted on July 13, 2009It’s been over 100 years since the Cubs won the World Series. And now, we hear they may be going bankrupt! Why? The parent company, Tribune Corporation, like many other newspapers all over the United States, is in bankruptcy. Owner Sam Zell acquired Tribune Corporation a few years ago in a very expensive deal and took [...
Bankruptcy Can Be Good for Your Health
Posted on July 13, 2009It?s no secret that if you need to file bankruptcy, you are under stress. Financial problems are horrible, and they are real. But don?t let financial problems consume your life. Concentrate on what?s truly important: your health and your family. I keep a box of Kleenex on my desk for my clients...
Who Needs Small Business Chapter 11? (Part One)
Posted on July 13, 2009Latest on the list: Lenny “Nails” Dykstra. What happens to cause a small business to file Chapter 11? Evil partner, bookkeeper, employee leaves with the money. Happens a lot. For most of my clients, not starting with enough money. I always say, you want to be the boss, start your own business? Have enough to operate the business for a [...
Easy Bankruptcy: File In July
Posted on July 10, 2009The 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, 2009Thinking 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...Countrywide's Failure to Notify Debtor of Mortgage Escrow Account Deficiency Caused Deficiency to be Waived by Stephen Otto, Pennsylvania Bankruptcy AttorneyBankruptcy Discharge Does Not [...
Should You File Bankruptcy If You Have No Assets?
Posted on July 08, 2009Protection 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 [...
What To Do When Creditors Are Calling While You Are In Chapter 13 Bankruptcy
Posted on July 08, 2009In 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, 2009A 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, 2009Iowa 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 [...
Mortgage Loan Modifications Dropping
Posted on July 07, 2009Mortgage 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, 2009According 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, 2009Clients 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, 2009The 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...
?I?m Not Filing Bankruptcy On . . . ?, and Other Misconceptions
Posted on July 01, 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...
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, 2009Several 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, 2009On 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...
Are There Any Reasons NOT to File Chapter 7 Bankruptcy? Part 2-You May Not Discharge All Your Debt
Posted on June 30, 2009Although 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, 2009When 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, 2009Your 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...
Completing Bankruptcy Paperwork
Posted on June 28, 2009Preparing 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...
Trustee Holds Feher Proceeds Until Completion or Dismissal of Chapter 13
Posted on June 27, 2009When 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...
What Happens to Insurance Proceeds for a Totaled Car in Chapter 13?
Posted on June 27, 2009In 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, [...
Dairy Farmers in Crisis Should Consider Chapter 12 Bankruptcy
Posted on June 27, 2009Dairy 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, 2009You 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 [...
How Will Judge Sotomayor Decide Bankruptcy Cases if She Gets to the Supreme Court?
Posted on June 26, 2009If 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 [...
Is It Possible to Lose My Homestead Exemption in Bankruptcy Court?
Posted on June 26, 2009Your 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, 2009As 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 Documents Do I Need To Have To File For Bankruptcy?
Posted on June 26, 2009Filing 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...
Should I File A Chapter 7 Bankruptcy Or A Chapter 13 Bankruptcy?
Posted on June 25, 2009Should 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...
Choosing A Bankruptcy Lawyer - 5 Things To Look For
Posted on June 25, 2009Choosing 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...The Dilemma of Private Student Loans in Bankruptcy by Kent Anderson, Oregon Bankruptcy AttorneyWhat Will They Ask [...
San Diego now allows ?McMansions? in Chapter 7 Bankruptcy
Posted on June 25, 2009For 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, 2009If 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, 2009What 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 [...
San Diego: New Ruling Allows Student Loans to be Discharged in Chapter 13!
Posted on June 24, 2009The 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, 2009Filing 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, 2009My 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...
Chapter 20: San Diego Bankruptcy Court allows Lien Stripping in Chapter 13 after Chapter 7.
Posted on June 22, 2009The 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 [...
Do I have to be a citizen to file a bankruptcy case?
Posted on June 22, 2009Clients 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, 2009Courts 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, 2009Clients 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 [...
Force Placed Insurance Only Protects The Lender
Posted on June 20, 2009I 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 20, 2009Good 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...
Should I file bankruptcy before I get married?
Posted on June 20, 2009In 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, 2009Creditors 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, 2009Senior 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, 2009It 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, 2009Ever 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 [...
How Long Will My Chapter 7 Take?
Posted on June 18, 2009In 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 Massachusetts Bankruptcy Means Test Decision
Posted on June 18, 2009Judge 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...
New York News Report Debunks 5 Myths of Bankruptcy
Posted on June 17, 2009Hat 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 17, 2009Some 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...
HELOC in bankruptcy: dischargeable?
Posted on June 16, 2009The 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 16, 2009Bankruptcy 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...
Statements Received After Discharge May Violate Bankruptcy Code Even If Creditor Includes A Disclaimer
Posted on June 16, 2009If 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, 2009The 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 [...
Reject Commercial Leases Quickly, Says 8th Circuit BAP
Posted on June 15, 2009If 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, 2009The 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 11, 2009I’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, 2009Your 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...
Can?t Access ECF? Another Possible Problem and Its Solution
Posted on June 09, 2009Last 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 [...
When Preparing for Bankruptcy, You Can?t Be Too Careful
Posted on June 09, 2009I 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...
Attorney Liens in Bankruptcy
Posted on June 07, 2009It 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 Happens if I Stop My Chapter 13 Payment?
Posted on June 07, 2009If 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...
Bankruptcy Debtor Education Class (2nd Course)
Posted on June 06, 2009When 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 [...
What Is The U.S. Trustee?
Posted on June 06, 2009Congress 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...
Chapter 13 Plans Which Vest Property of the Estate in the Debtor Too Early Can Result in Loss of Assets
Posted on June 05, 2009A 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...
The stigma of bankruptcy
Posted on June 05, 2009Why 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 [...
Should I Talk With a Bankruptcy Lawyer Instead of A Debt Settlement Company?
Posted on June 04, 2009More 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...
Eugene Melchionne, Connecticut Bankruptcy Lawyer, Elected To Lead Bankruptcy Law Network
Posted on June 04, 2009Statement of Financial Affairs: Question 6
Posted on June 04, 2009This 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...
Hear GM and Chrysler Bankruptcy Hearings Online
Posted on June 03, 2009You 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 03, 2009Forbes.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...
Tell Your Bankruptcy Attorney Everything
Posted on June 03, 2009You 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 [...
After Filing Bankruptcy, Banks Can?t Keep Your Money For Pre-petition Debts
Posted on June 02, 2009It 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 [...
?Stealth? Plan Provisions: Confirmation of Chapter 13 Plan Did Not Alter Domestic Support Obligation
Posted on June 02, 2009A 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 [...
Credit Union Automatic Deductions & the Automatic Stay
Posted on June 02, 2009Banks 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...
One Violation; Two Lawyers
Posted on June 01, 2009A 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, 2009A 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...
Does The Stress Over Debts or Mortgage Foreclosure Lead to Suicide?
Posted on May 31, 2009Suicide 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, [...
Married Debtors; Separate Bankruptcy Estates
Posted on May 31, 2009Two 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, 2009In 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...
To File Your Case, Your Lawyer Will Need All Info, All At One Time
Posted on May 30, 2009When 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 30, 2009I 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 [...
Seventh Circuit Says ?Give back the Car? in bankruptcy - Even in Chicago
Posted on May 30, 2009If 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 [...
Lawyer Fails to File Bankruptcy or Otherwise Carry Out Debt Repayment Plan; License to Practice Law Revoked
Posted on May 30, 2009In 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...
Resolving a Motion for Relief - A Costly Exercise
Posted on May 30, 2009Many 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...
List all of your assets in your bankruptcy case - it?s a crime not to
Posted on May 29, 2009I’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...
You can recover damages if creditors harass you after you file your bankruptcy case
Posted on May 28, 2009One 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...
Can?t Access Pacer or ECF? You May Need to Change a Setting in Your Browser
Posted on May 28, 2009I 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, 2009GM 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...
How Flexible is Chapter 13 After You?ve Filed?
Posted on May 27, 2009A 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 [...
Real Estate Commissions Lost to Chapter 7 Trustee, Even When Closings Occurred After Bankruptcy Filing
Posted on May 27, 2009According 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 [...
Do Not Hide From Your Lawyer
Posted on May 26, 2009Question: 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 [...
Satisfy a Car Loan by Surrender in Connecticut
Posted on May 26, 2009On 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, 2009One 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 [...
What Happens To My Chapter 13 Payment If My Income Goes Down?
Posted on May 25, 2009In a chapter 13 case, you have to propose a monthly payment to repay your creditors, at least in part. Most chapter 13 payment plans last for either 36 or 60 months. You might think this is a long time to commit to making a monthly payment. Or, you might even wonder if it’s even [...
Connecticut?s Exemption in Cars
Posted on May 25, 2009Since July 1, 2007, Connecticut has recognized a $3,500.00 exemption in automobiles. Many websites out there (including some maintained by Connecticut lawyers) miss the fact that the exemption amount increased from $1,500.00 to $3,500.00 mearly two years ago...
Who Should File for Bankruptcy?
Posted on May 25, 2009Who should file for bankruptcy? Here in Massachusetts, here are some common scenarios I see: You are trying to keep debts current but are borrowing money from one card to pay other (robbing Peter to pay Paul). You are trying to keep debts current by using your savings but can see the day approaching when [...
I?m Filing Bankruptcy But I Don?t Want My Family Members To Know
Posted on May 23, 2009Most people are not thrilled with the prospect of filing bankruptcy. Most people would rather the whole affair be kept as quiet as possible. While this is understandable, it is sometimes advisible for you to discuss your financial situation with your family members and let them know that you are thinking about bankruptcy...
Credit Union?s Application of Automatic Payroll Deductions to Vehicle Loan Violates Bankruptcy Protection
Posted on May 23, 2009Once a bankruptcy is filed, a credit union may not apply funds received from a bankruptcy debtor’s paychecks by means of an automatic payroll deduction to the payments due for a vehicle loan, according to the Eighth Circuit Bankruptcy Appellate Panel...
Can I Use Chapter 13 to Save an Elderly Parent or Adult Child?s Home?
Posted on May 23, 2009In the real world, families help each other. Sometimes this help can be in the form of co-signing a debt or even entering into debt to help a family member. In my practice I frequently see situations where an adult child signs as the sole or primary mortgagee for a parent’s house...
How Long Does a Chapter 13 Case Take?
Posted on May 23, 2009A Chapter 13 is a court-administered debt repayment plan. In a typical case, a percentage of general unsecured debts are paid (like credit cards) and the unpaid balances are discharged. How long the plan lasts depends on income. The 2005 BAPCPA bankruptcy amendments created ?commitment periods? that vary based on whether a [...
My income is going down - do I still have to file chapter 13?
Posted on May 22, 2009Many people are losing their jobs these days. For example, car dealers are closing their doors everywhere.So are auto factories. People who used to make a very nice living are really struggling. Their income over the past few months might have been above the national average...
Chapter 11 for Individuals or Small Businesses
Posted on May 22, 2009Chapter 11 for large corporations has been much in the news lately, but Chapter 11 can be a valuable tool for individuals and small businesses, too. For most individuals and small businesses, Chapter 7 and Chapter 13 are the first options considered, but Chapter 11 relief is not limited to large companies, or even to [...
Hardship Discharge in Chapter 13 Bankruptcy: What is It?
Posted on May 22, 2009If you?re dealing with excessive personal debt, and you are considering bankruptcy as a solution, you will have two options: Chapter 7 bankruptcy erases your liability for most debts, so you will not be required to pay them back; Chapter 13 bankruptcy, conversely, allows you to pay your debts over an extended time period (typically [...
Can I Keep My Car in Bankruptcy?
Posted on May 22, 2009People are often worried about whether they can keep their car in bankruptcy. This makes sense because in places without pervasive public transportation people need cars to get to work, take their kids to school, etc. There are a few key points about cars to remember...
Debt Management Firm Says Bankruptcy the Best Solution
Posted on May 22, 2009In Charge Debt Solutions, one of the most reputable of debt management firms which try to keep people out of bankruptcy through so-called “debt settlement plans” now says that bankruptcy is the best solution for many of the people it counsels...
Student Loans In Bankruptcy?A Thorny Problem
Posted on May 21, 2009Student loans are not dischargeable in bankruptcy-almost everyone who has student loans knows that is the case. So why consult a bankruptcy lawyer when you have student loans? There are several reasons to check your particular situation with a bankruptcy lawyer...
My Employer is in Bankruptcy, Can I Still Sue Them?
Posted on May 20, 2009The current recession is sending a lot of large companies into bankruptcy, and a lot of employees are affected. If you have a claim of some kind against a bankrupt employer, you have more hoops to jump through. The most important thing to be aware of is the automatic stay...
Revocable Trusts and Entirety Property
Posted on May 20, 2009Using revocable living trusts to avoid probate has become more popular recently. But the impact of such trusts in bankruptcy makes some relatively simple cases much more complex - expecially in states that recognize tenancy by the entirety. A tenancy by the entirety (TBE) is an ancient way of owning property between a married couple...
Statement of Financial Affairs: Question 5
Posted on May 20, 2009This is the fifth in a series of blogs about the Statement of Financial Affairs and the questions it asks. Question 5 of the Statement of Financial Affairs asks for information about repossessions, foreclosures and returns. What needs to be listed here? * Foreclosures; * Repossessions; * Deeds in Lieu of foreclosure; * Voluntary repossessions; * Returns...
Determining Household Size for Means Test
Posted on May 20, 2009The means test is a key feature of the 2005 BAPCPA bankruptcy amendments. It incorporates state median income figures to determine who should pay back some of their debts in a Chapter 13 plan. Median income is on a sliding scale based on family size...
Can I Keep my Tax Refund in a Massachusetts Bankruptcy?
Posted on May 20, 2009Here in Massachusetts, most people can keep their entire tax refund in bankruptcy. It is important to note that one never loses property in a Chapter 13 case. This is the case because Chapter 13 is a reorganization chapter while Chapter 7 is the chapter that requires the liquidation of non-exempt property...
Civil Judgments For Past Due Debts - Why Do I Care?
Posted on May 20, 2009When you owe money for a past due debt - a credit card, deficiency judgment, old rent, whatever - the creditor can choose to sue you. When you fail to file a timely Answer to the Complaint (in New York, that’s either 20 days after you received the papers in hand or within 30 [...
Questions To Ask A Bankruptcy Lawyer Before Signing A Retainer Agreement
Posted on May 20, 2009So the stress of dealing with overwhelming debt has finally gotten to you, and you?ve decided that bankruptcy might be the best solution for regaining your financial footing. If bankruptcy seems like the logical course of action, you?ll need to contact a bankruptcy attorney to take your case...
Statement of Financial Affairs: Question 4
Posted on May 19, 2009This is the fourth in a series of blogs about the Statement of Financial Affairs and the questions it asks. Question 4 of the Statement of Financial Affairs asks for information about suits and administrative proceedings, executions, garnishments and attachments...
What is the Wild Card Exemption?
Posted on May 19, 2009In states that haven’t opted out of the federal exemptions, such as Massachusetts, there exists something referred to as the “wild card” exemption. This is a very useful exemption and what allows most bankruptcy debtors to keep all their property...
Can I File Bankruptcy Again?
Posted on May 19, 2009If you have previously filed for bankruptcy protection, and you?ve found yourself dealing with unmanageable debt a second time, you may be wondering if you can file bankruptcy again. Going through bankruptcy a second time is not exactly a pleasant thought ? but if you?re struggling with debt, and you think you may need to [...
What Does it Cost to File Bankruptcy?
Posted on May 18, 2009The bankruptcy court charges a fee of $274 for a Chapter 13 Bankruptcy and $299 for a Chapter 7 Bankruptcy. Credit counseling costs approximately $50 and it costs another $20 or so for the financial management course the debtor is required to take in order to qualify for a discharge...
Can I Keep My Car if I File Chapter 7 in New York?
Posted on May 18, 2009If you?re thinking about filing Chapter 7 in New York, you?ve probably wondered whether or not you will get to keep your car after you receive your discharge. If you?re like most of us, you?ll still have a job to go to every day, so you?ll need a means of transportation to get there...
Free Rent For A Parent?
Posted on May 17, 2009What could be wrong with this? Your mother conveys her home to you, and you let her live there for the rest of her life. No need to pay an attorney. “Gotcha”, says the trustee. A bankruptcy trustee takes over control of your assets, and may well threaten to evict your mother so rent can be [...
I still owe HOA Fees after I filed Bankruptcy and Surrendered my Home?
Posted on May 16, 2009Technically yes. Debtors are frequently surprised to find that they are still personally liable for HOA fees after filing for bankruptcy, even though they have moved out for all intents and purposes, and have made known in their bankruptcy schedules their intent on surrendering the property back to the bank...
The Continuing Concealment Doctrine
Posted on May 16, 2009The Continuing Concealment Doctrine applies when someone appears to have transferred an asset, but retained secret control or a beneficial interest. It commonly applies where someone convenys a house to another, but continues to live there, pay the mortgage and utilities, maintain and improve the property, and so forth...
Notes on Bankruptcy Article in The Atlantic
Posted on May 15, 2009The June 2009 issue of The Atlantic magazine contains an interesting article on bankruptcy, Sink and Swim by Megan McArdle. The subtitle and thesis of the article is "Bankruptcy helps the undeserving-and that’s the way it should be." Ms. McArdle argues that attempting to make a "fair" (read "harsh") insolvency system misses the [...
The Dilemma of Private Student Loans in Bankruptcy
Posted on May 15, 2009The misleadingly named Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 created a dilemma for debtors with private student loan obligations. That act extended the undue hardship requirement for discharge in bankruptcy to private student loans without making available the Federal reduced payment plans that partially relieved burdens to lower-income debtors...
Pay Advices?What Is That? Evidence of Income for Bankruptcy.
Posted on May 15, 2009A requirement under the Bankruptcy Code is that you provide copies of all pay advices or other evidence of payment received within 60 days of your filing for bankruptcy. For most people who go to work every day and receive a paycheck, this is not a big hurdle...
How long does it take to file a bankruptcy case?
Posted on May 15, 2009Bankruptcy cases can’t be prepared overnight. We find that it takes at least a week or two to prepare a case for filing even under the best of circumstances. You need to take credit counseling before you can file. You need to tell your lawyer all the information needed to determine your assets, your debts, [...
Don?t Be So Quick to Dismiss the Relevance of Means Test Numbers
Posted on May 14, 2009Much has been written on this blog about the two different types of budgets required in many bankruptcy filings. If your average income - calculated by looking at your household earnings for the six months prior to the month of filing - is over the “median income” for a similarly sized family in your State, [...
Massachusetts Bankruptcy Court Issues New Standing Orders
Posted on May 14, 2009The Massachusetts Bankruptcy Court recently issued three new standing orders. The first order allows limited (un-bundled) representation of debtors in pro bono bankruptcy case. The second requires that stipulated provisions which could lead to automatic dismissal or relief from the automatic stay be set forth conspicuously, in bold, uppercase type...
Bankruptcy, exemptions and a fresh start
Posted on May 14, 2009My clients lately are so down on themselves that they insist on worrying that the bankruptcy trustee will strip them of everything, their home, their car, their consulting practice. Not so, I repeat, and repeat. FIrst of all, the bankruptcy trustee is only interested in assets that have net equity...
When bankruptcy is smarter choice
Posted on May 13, 2009AARP’s magazine column The Short Answer echoed my view exactly: stop fighting bankruptcy. People often wait too long to make the bankruptcy decision, invading retirement and college savings to the detriment of their future. The fear about “ruining credit” is misplaced: most of those in deep enough to consider bankruptcy have lousy credit already says AARP...
A grateful client thanked me for his fresh start
Posted on May 13, 2009There is nothing more professionally rewarding to a bankruptcy attorney than to revel in his client's success just a few years later.
Limited Stay Relief Is Automatic In Massachusetts
Posted on May 13, 2009A secured creditor, or its non-attorney representative, may now send account statements and the like to a debtor without first seeking stay relief, so long as the communication does not demand payment or threaten foreclosure or case dismissal. The secured creditor may also discuss or negotiate a mortgage modifcation with debtor’s counsel, but not directly with [...
Bank of America squeezes its credit card holders - no default necessary. ?I?m mad as hell and not going to take this anymore.?
Posted on May 12, 2009Yesterday, I wrote that Banks were drastically raising rates on credit cards even if people were just a few days late. That’s true enough. But some banks are so desperate and greedy that they don’t even wait for the consumer is late before squeezing them for payment...
Limited Attorney Appearances Allowed In Massachusetts
Posted on May 12, 2009An attorney can limit her appearance in a bankruptcy case to a particular contested matter or adversary proceeding in Massachusetts, without generally appearing on behalf of a debtor for all contested matters, if the client agrees and either (1) the client is otherwise pro se (case filed without an attorney) and the attorney is working [...
Consumer credit evaporating - Consumer bankruptcy cases to climb
Posted on May 11, 2009Consumer credit is drying up - fast. We expect this will result in tens of thousands of new bankruptcy cases by the end of 2009 and even more through 2001. Every credit card issuer has been approving fewer new applicants, reining in credit lines and canceling unused accounts...
Attorney Fees Are a Means Test Deduction
Posted on May 11, 2009Prospective Chapter 13 attorney fees are deductible from income for the Means Test. You remember the Means Test, don’t you? It’s that nasty form for Above Median Income Debtors to determine if they might be forced into a mandatory five year Chapter 13 case...
Massachusetts Attorney General Warns on Mortgage Modifications
Posted on May 09, 2009Yesterday on Greater Boston (the PBS television program) Martha Coakley, the Massachusetts Attorney General, warned consumers against the increasing number of scams promising mortgage modifications for an upfront fee. The number of these scams have been increasing due to the economic crisis...
Unlisted Debts Are Not Discharged in First Circuit
Posted on May 08, 2009Unlisted, unscheduled debts are not discharged in the First Circuit, which covers Puerto Rico and New England (except Connecticut). All medical bills must all be listed, even if you believe them to be covered by insurance, because the insurance company may later deny the claim...
How Do I Find Out My Chapter 13 Balance?
Posted on May 07, 2009So its been 2 years now and you are wondering the current status of your Chapter 13. What is your payoff? What claims have been submitted? What is the balance of each claim? How do you go about finding out this information? Many times, debtors simply contact their attorney who they assume has all the [...
Bankruptcy and Lenders who Refuse to Pick Up Vehicles
Posted on May 06, 2009Recently, many lenders have been refusing to pick up vehicles that debtors are surrendering in bankruptcy proceedings. Perhaps if these lenders picked up these vehicles and sold them at auction, they would need less bail out money and might avoid Chapter 11...
Insurance Requirement on Vehicles in a Western District of Missouri Bankruptcy
Posted on May 05, 2009When you file for bankruptcy in the Western District of Missouri you must maintain certain insurance coverage on your vehicle if you have a lien on your vehicle. Local Rule 4070-1 D(4) of the Western District of Missouri states that the debtor must maintain 3 months of pre-paid insurance on the vehicle and have a deductible no [...
Statement of Financial Affairs: Question 3
Posted on May 05, 2009This is the third in a series of blogs about the Statement of Financial Affairs and the questions it asks. Question 3 is broken down into three parts, (a), (b) and (c). Part (a) requires the listing of certain payments made to creditors within the 90 days before the case is filed if your debts are [...
Ask For A Discharge After Making Last Chapter 13 Payment
Posted on May 05, 2009You must request a discharge in Chapter 13 and certify your eligibility for that discharge or your case will be closed and your debts will remain collectable. Your Chapter 13 Trustee will report when you have finished making your Plan payments. You then have 20 days to file a Motion, under Section 1328 and Rule 2002f asking [...
The Terrible Consequences of Not Getting A Discharge In Bankruptcy
Posted on May 04, 2009You file a bankruptcy to get rid of, to discharge, your debts. You might not get a discharge, if there is a successful objection based on fraud, poor records, hiding assets, not cooperating with the trustee, giving stuff away with one year before the filing, etc...
Filing Bankruptcy: First Steps
Posted on May 04, 2009The first thing to do if you are wondering about filing bankruptcy is to speak with a competent, qualified, consumer bankruptcy attorney. You can find one through this site or from the National Association of Consumer Bankruptcy Attorneys. Then set up an appointment with the Attorney...
I?ve Moved During My Bankruptcy: Now What?
Posted on May 04, 2009It is not uncommon for debtors to move while their Chapter 7 or 13 bankruptcy is pending. Generally, this is not an issue provided a change of address is sent to all necessary parties. If you move before your case is discharged, do not assume your mail will be forwarded...
How To Become A Former Client Of A Bankruptcy Attorney
Posted on May 04, 2009Rachel Lynn Foley, my esteemed colleague in Missouri, wrote today on “How Not To Be Selected As A Client” from her perspective as a bankruptcy attorney. I also wrote a blog this past week on ”My Bankruptcy Attorney Doesn’t Return My Phone Calls, “ explaining that sometimes attorneys prioritize the calls back to clients or wait for [...
How Not to be Selected as a Client by a Bankruptcy Attorney.
Posted on May 04, 2009There are several ways to ensure that I will not represent you as a bankruptcy client. Keep in mind that when you have a consultation with a bankruptcy attorney the interview is a two way street. You are determining if you want me to represent you in the bankruptcy process...
Minimal Or Zero Dividend Chapter 13 Plans: The Newest Battleground
Posted on May 04, 2009Fees and costs of bankruptcy have skyrocketed, forcing debtors to seek Chapter 13 just to afford access to the bankruptcy courthouse doors. The 2005 reforms have so increased the complexities and burdens of filing for bankruptcy protections that professional fees have increased about 50% and costs have doubled...
Why Did Cramdown Fail? Insurance and Principal.
Posted on May 02, 2009On April 30, the US Senate voted against S. 61, a bill that would let judges modify home mortgages in bankruptcy. Karen Oakes wrote an excellent article, “Congress Votes Against Consumers Modifying Home Mortgages In Bankruptcy” discussing the vote...
If Chrysler Can File Bankruptcy, Why Can?t I?
Posted on May 01, 2009You can. And maybe you should. ?No one should be confused about what a bankruptcy process means… [It] is not a sign of weakness…” This is what President Barack Obama said today in discussing the fact that Chrysler is declaring bankruptcy...
Missouri Chapter 13 Plans Must Pay Mortgage Payments Through Trustee; Direct Mortgage Payments for Delinquent Debtors Disallowed
Posted on May 01, 2009A recent Missouri case held that when drafting a chapter 13 plan for a bankruptcy debtor who is behind on home mortgage payments, the plan may not provide for direct payment of the regular, ongoing monthly mortgage payments by the debtor to the mortgage bank...
Congress Votes Against Consumers Modifying Home Mortgages In Bankruptcy
Posted on May 01, 2009Today, the Senate voted on Senate Bill 61, the bill which would allow homeowners, consumers, everyday Americans, to modify their residential mortgages in bankruptcy. This bill had been debated for over 8 months, mostly during the presidential elections...
Owing Rent When Filing Chapter 13
Posted on May 01, 2009If you owe rent when filing a Chapter 13 bankruptcy case, it’s not easy to figure out how to pay the back rent. You’ll be paying this pre-bankruptcy debt at 100% when you’re likely paying your credit cards maybe 5%. Trustees like to object when one class of creditors is paid better than another...
Help Families Save Their Homes! We Need Your Help Now!
Posted on April 30, 2009We need your help! The Senate is set to consider Senate Bill 61 titled “Help Families Save Their Homes” which will allow bankruptcy judges to modify mortgages in chapter 13 bankruptcy cases. You can contact your senator and express your support for S...
Protecting College Funds In Bankruptcy
Posted on April 30, 2009It’s possible to protect college funds (529 Plans; Educational IRAs) when filing bankruptcy. Complicated, but possible. Bankruptcy law looks at the timing of the contributions and not the current balance. Here are the rules: 1. Contributions made earlier than 720 days before a bankruptcy case is filed are fully protected...
Ten Reasons to Delay Filing Bankruptcy! Reason No. 6.1: The Means Test
Posted on April 30, 2009When determining when to file for a bankruptcy, an issue to consider is whether a delay in filing can place the debtor within the current monthly income guidelines for his state. Under the changes to the bankruptcy code that resulted from the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), a debtor who wants [...
My Bankruptcy Attorney Doesn?t Return My Phone Calls. Why?
Posted on April 30, 2009The most frequent complaint made about attorneys is the lack of communication or not returning phone calls requesting information. Attorneys generally know this. So, why wouldn’t an attorney return phone calls on a timely basis? Volume. Solo attorneys (as most bankruptcy attorneys operate on their own) are the practicing attorney, the office manager, the human resources [...
Louisiana House To Consider Raising Homestead Exemption!
Posted on April 30, 2009The Louisiana Legislature began its 2009 regular Legislative Sessions on Monday, April 27, 2009. Two bills are before the Louisiana House of Representatives that would raise the Homestead Exemption from seizure of a house by unsecured creditors. The homestead exemption from seizure is not to be confused with the homestead exemption that most Louisiana residents are aware [...
Business credit cards and the individual bankruptcy case
Posted on April 30, 2009Small corporations may have their names on the shareholder’s credit card, but likely are not actually liable for the charges made on the card. Clients come with lists of “personal” credit cards and “business cards” for their corporation or LLC...
Can A Bankruptcy Trustee Search Your Home?
Posted on April 30, 2009“I can’t file bankruptcy. I heard that a trustee will come into my home and take what he wants.” Is there anything more frightening than this sentence? It isn’t true, of course, but the fear is real. Yes, there is a remote one-in-a-bazillion chance that a trustee can get an order allowing seizure of unprotected property, but [...
Ten Reasons to Delay Filing Bankruptcy! Reason No. 5: The Means Test
Posted on April 29, 2009When determining when to file for a bankruptcy, an issue to consider is whether a delay in filing can place the debtor within the current monthly income guidelines for his state. Under the changes to the bankruptcy code that resulted from the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), a debtor who wants to [...
Is There Such A Thing As a ?Secret? Bankruptcy?
Posted on April 29, 2009As a consumer bankruptcy attorney, I often find myself reassuring folks who come into my office for consultations that the filing of a bankruptcy won’t be published in the newspaper, that their employer won’t have to know, that their kids won’t have to know, or that the neighbors won’t be talking about them at the [...
Ten Reasons to Delay Filing Bankruptcy! Reason No. 6.1: The Means Test
Posted on April 29, 2009When determining when to file for a bankruptcy, an issue to consider is whether a delay in filing can place the debtor within the current monthly income guidelines for his state. Under the changes to the bankruptcy code that resulted from the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), a debtor who wants [...
Ten Reasons to Delay Filing Bankruptcy! Reason No. 6: Payment of Creditors
Posted on April 29, 2009In my recent article on reasons to delay the filing of a bankruptcy to avoid issues of preferential payments in pre-bankruptcy transfers, I addressed the right of the bankruptcy trustee to set aside preferential transfers. Related to the preferential transfer issue, and another reason to possibly delay the filing of a bankruptcy is to permit a debtor to [...
Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 10: Bankruptcy
Posted on April 28, 2009Part 10 of my review of Kevin Trudeau?s book, ?Debt Cures ?They? Don?t Want You to Know? examines Chapter 15: No Bankruptcy. The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this [...
U.S. Supreme Court to Hear Bankruptcy Exemption Issue
Posted on April 27, 2009The U.S. Supreme Court accepted a case for review with two bankruptcy exemption issues: 1) When a debtor exempts property as his own and places a value on it in his bankruptcy paperwork, is he limited to that dollar amount or is the asset fully exempt? 2) Is there an exception to the 30-day deadline [...
Paychecks And Uncooperative Employers
Posted on April 27, 2009Bankruptcy filers must provide paycheck information (”pay advice”) to a truste for the 60 days before a filing, and also must provide their attorneys with income information for the six months before a filing (including gross pay and often detailed paycheck deductions) for means test calculations...
Should I use a petition preparer so I can file bankruptcy without an attorney?
Posted on April 27, 2009Fiilng a bankruptcy pro se is like walking through a maze blind-folded. You might get through but you will certainly get lost along the way. So why take chances? Get a competent, experienced bankruptcy attorney to represent
Can I get out of debt without bankruptcy?
Posted on April 26, 2009You’ve seen commercials that promise that you can get out of debt without bankruptcy. It’s possible. But not easy. And you’ve probably heard from people like Dave Ramsey that bankruptcy is a horrible evil and that you should avoid it at all cost...
Reasons to hire an attorney for your bankruptcy case
Posted on April 25, 2009You can file a bankruptcy case without an attorney. But you'd be giving up a lot. Here's just a few of the things a lawyer can do to help you with your bankruptcy case.
Wage Garnishment for a Chapter 13 Plan Payment Increases Success Rate.
Posted on April 24, 2009If you are filing a chapter 13 bankruptcy I strongly encourage you to use wage garnishment instead of a direct payment as this will increase your success rate. Why, because if you use a wage garnishment you are forced to place yourself on a budget in order to make it through your chapter 13 bankruptcy...
The Company That Owes Me Money Is In Chapter 11?What Now?
Posted on April 23, 2009When a local grocery store chain filed a Chapter 11, I began fielding calls from people who had received notice of the bankruptcy filing from the court, along with a form to use to file a claim with the court. It’s a confusing and unsettling thing to get in your mailbox...
Why are chapter 13 cases being filed less frequently?
Posted on April 23, 2009Professor Lawless reports in Credit Slips that chapter 13 cases are now being filed at the lowest rate since the Bankruptcy Code was amended. Why is this happening? You need disposable income for a chapter 13 plan - yet more people are out of work You would want equity in property in order to file a chapter 13 [...
How Is My Chapter 13 Plan Payment Figured?
Posted on April 23, 2009How much will my chapter 13 plan payment be? Understandably, this is the question that figures prominently in people’s minds as they contemplate a chapter 13 bankruptcy filing. While plan payments can often be projected with a reasonable degree of accuracy, there is a lot that goes into figuring what it will be...
How long does it take to file a bankruptcy case?
Posted on April 22, 2009Bankruptcy cases can’t be prepared overnight. We find that it takes at least a week or two to prepare a case for filing even under the best of circumstances. You need to take credit counseling before you can file. You need to tell your lawyer all the information needed to determine your assets, your debts, [...
Does It Matter, For Bankruptcy Purposes, How the Credit Cards Were Used?
Posted on April 20, 2009Bankruptcy deals with secured and unsecured debts. Credit card bills are generally unsecured, unless the card was issued by a specific store with a properly executed security agreement. Debts owed on most credit cards, like Visa or MasterCard, are almost always unsecured...
My school won?t give me my transcript after banrkuptcy
Posted on April 20, 2009If you owe your school tuition and file for bankruptcy relief, your school might hold up your transcript or even your diploma. But not every debt for a school, college or university is a “student loan.” The Seventh Circuit Court of Appeals - covering Illinois, Wisconsin and Indiana - has just reminded us that a [...
My employer is in bankruptcy - what happens to my pension?
Posted on April 20, 2009Your employer’s bankruptcy puts your rights under a pension plan or a 401k retirement plan at risk. You must take steps to protect yourself if your employer is in bankruptcy or chapter 11. Get a current summary plan description of the pension or retirement plan from the plan administrator If you don’t have one, call [...
Student Loan Hangover - The Economy And Bankruptcy
Posted on April 20, 2009Student Loans are a necessary evil for most individuals looking to pursue higher education. They were for me, and as I look back, I didn’t have to worry about the economy or a difficult job market after I dealt with the bar exam. Historically, when times get tough, many people go back to school, and [...
Carpenter?s Apprentice Training Costs Non-Dischargeable as ?Student Loans,? Even Though No Loans Were Made
Posted on April 20, 2009In re Kesler, 2009 WL 650421 (Bky.S.D.Ill. March 9, 2009), held that $29,118.18 in carpenter’s apprentice training costs were non-dischargeable as “educational loans” within the meaning of section 523(a)(8) of the bankruptcy law. The bankruptcy court rejected the debtor’s argument that because no actual monetary loans were ever made to him, his obligation to pay [...
My employer is in bankruptcy - what happens to my health insurance?
Posted on April 20, 2009If your employer if in chapter 11 or bankruptcy liquidation under chapter 7, you could lose your health insurance. What can you do to protect yourself? Get the summary plan description and find out what health insurance benefits you had under the plan...
Balance Transfers Can Be Avoidable Preferences
Posted on April 19, 2009Bankruptcy law allows a trustee to recover payments made to creditors on the eve of bankruptcy, even if the payment was made with borrowed money the debtor never touched, according to the Sixth Circuit Court of Appeals. The situation is very typical. A consumer carrying too much debt gets an offer to transfer balances from one [...
Carolina Place Mall Parent Files Chapter 11 Bankruptcy
Posted on April 17, 2009Carolina Place Mall is open for business, even though it’s parent company filed a Chapter 11 bankruptcy. I was there last night, and no one shopping there would know that there is any problem. The company has stated that they are not closing the malls, and shoppers should not notice the difference...
Attorney May Charge No More Than $1,500 for Routine Chapter 7 Case, Florida Court Rules
Posted on April 16, 2009In the case of In re Gonzalez, 2009 WL 748912 (Bky.M.D.Fla. Feb. 11, 2009), a Florida bankruptcy court held that an attorney was allowed to charge no more than $1,500 for a routine chapter 7 case, in which no unusual legal research had to be performed, and in which no novel legal issues arose...
Before You Move, Talk To A Bankruptcy Lawyer
Posted on April 15, 2009If you are thinking about moving and you are considering filing for bankruptcy, you should speak to a lawyer before you make your move. I have had several calls this week from people in other states who plan to move to Charlotte NC and want to file for bankruptcy...
Fourth Circuit Rules That The ?Hanging Paragraph? Protects Negative Equity
Posted on April 14, 2009Today, the Fourt Circuit Court of Appeals (Virginia, West Virginia, North Carolina, South Carolina, Maryland) ruled that the “hanging paragraph” of Section 1325 of the Bankruptcy Code protects negative equity financing in motor vehicles. Negative equity financing is when you trade in your vehicle but you owe more on the vehicle than the dealer will give [...
Always Tell Your Lawyer The Truth
Posted on April 13, 2009When you file Bankruptcy, your lawyer is your best friend. He or she can guide you through the process with a minimum of disruption to your life; save any of your assets that can legally be kept; and make the process as easy and non-confrontational as possible...
Statistics: Utah sees 56% increase in bankruptcy
Posted on April 13, 2009Consumers in Utah filed bankruptcy in the first three months of 2009 at a rate 56% higher than the previous year. The bulk of filings, 1395 in March, represent a 73% jump over March 2008 filings. US Bankruptcy Clerk David Sime told Salt Lake City’s Deseret News it was the biggest increase seen in a [...
Should I Stop Paying my Credit Card Debt if I Plan to File Bankruptcy
Posted on April 13, 2009As credit card debt underlies many bankruptcy filings, it is not surprising that prospective bankruptcy filers want to know if they should stop paying credit card debt if they plan to file for bankruptcy. At first blush, the answer to this question should be obvious - why should anyone “throw good money after bad?” However, I [...
Practice Tip: Debt Relief Agency Notices
Posted on April 12, 2009The majority of courts that have considered the issue have found attorneys are debt relief agencies under the Bankruptcy Abuse Prevention and Consumer Protection Act. Being a debt relief agency requires compliance by bankruptcy attorneys with Sections 342 and 527...
Credit Crisis Simplified
Posted on April 12, 2009Jonathan Jarvis produced a visual explanation of the credit crisis for his media design thesis he calls The Crisis of Credit Visualized. It is a delightful seven-minute video that explains the current credit crisis in simple terms. If you liked that post, then try these...
Don?t break bankruptcy?s 90 day rule
Posted on April 11, 2009Most of my clients arrive in my office familiar with the 90 day rule in bankruptcy. They’ve talked to friends or read on the internet. They often volunteer that they are familiar with the prohibition. Sometimes, though, they ask questions about the details of its application...
Actions Taken Against Non-Debtor Spouse Violate Discharge Injunction
Posted on April 09, 2009In Lumb v. Cimenian, 2009 WL 427836 (1st Cir.BAP Me. Feb. 23, 2009), the First Circuit Bankruptcy Appellate Panel held that actions taken post-discharge against the non-debtor spouse of a chapter 7 bankruptcy debtor can violate the discharge injunction of 11 U...
What are the Implications of Non-reaffirmed Mortgage Debt in a pre-BAPCPA Chapter 7 case
Posted on April 09, 2009Although most of the posts on this blog relate to questions about filing for bankruptcy now, bankruptcy lawyers like me regularly receive questions from prior bankruptcy filers (sometimes old clients and sometimes individuals seeking information). Here is a question I received from a woman who filed Chapter 7 pre-BAPCPA and is now having problems obtaining [...
Bankruptcy Good for the Economy
Posted on April 08, 2009Sounds wrong, but studies show the easier it is to file bankruptcy, the more people will take risks to start a new business. One of our favorite themes here at the bankruptcy law network, problems with the 2005 bankruptcy law changes James Surowiecki in the New Yorker...
Statement of Financial Affairs: Questions 1 and 2
Posted on April 08, 2009This is the second in a series of blogs about the Statement of Financial Affairs and the questions it asks. The first two questions in the Statement of Financial Affairs (SoFA) ask about income. Question 1 asks about income from employment or the operation of a business, and Question 2 asks about income other than from [...
Statement of Financial Affairs Information
Posted on April 08, 2009My series about the Statement of Financial Affairs consists of many parts. This blog will serve as a “Table of Contents” with links to all of the articles, and will be updated as articles are posted. Statement of Financial Affairs Blogs: Overview Questions 1 and 2 Question 3 Questions 4 and 5 Question 6 Question 7 Question 8 Question 9 Question 10 Questions 11, 12 and [...
Disclose Debt Relief Payments And Attorney Fees On SOFA 9
Posted on April 07, 2009Debtors filing bankruptcy are required to disclose money paid to anyone, including attorneys, for debt consolidation, bankruptcy relief or petition preparation within one year before filing. This disclosure occurs on the Statement of Financial Affairs at question number 9...
Many People Keep Their Homes When They File For Bankruptcy
Posted on April 07, 2009There is a misconception that people who file for bankruptcy will loose their homes. I hear from many people who avoided speaking to a bankruptcy attorney because ’someone’ told them that if they file for bankruptcy they will loose everything, including their home...
Bankruptcy does not allow you to keep your home AND not pay for it!
Posted on April 06, 2009Recently I have had a number of clients coming in who are under the impression that they can file bankruptcy and keep their home - without paying for it. I don’t know where they are getting this advice - but it is wrong. If you can no longer afford to make the payments on your home [...
Disclose Attorney Fees in Bankruptcy - Show Me The Money
Posted on April 06, 2009A Bankruptcy Lawyer is required to inform the Court of how much money debtor has paid or will pay in attorney fees in contemplation of or in connection with a bankruptcy case. The Disclosure of Compensation form is filed, and signed by the attorney not by the debtor, in every case to identify payment received [...
New Massachusetts Median Income Figures
Posted on April 06, 2009For 2009 the new median income figures for Massachusetts are: Family of one: $54,842 Family of two: $66,437 Family of three: $83,104 Family of four: $100,280 Add $6,900 for each family member above four. If you liked that post, then try these...How Long Should I Try To Avoid Filing Bankruptcy? by Susanne Robicsek, North Carolina Bankruptcy AttorneyIf I sign a reaffirmation [...
Is Senator Mel Martinez a Republican or Floridian first?
Posted on April 06, 2009Senator Mel Martinez (R-FL) figures to be a critical vote on the Bankruptcy Reform Act of 2009 (S. 61) when the Senate resumes its session after a month-long recess. The pending bankruptcy bill, if passed by the Senate, would save most of the Middle Class from imminent foreclosure and displacement from their homes...
I Lost My Job and Cannot Make My Chapter 13 Payment
Posted on April 05, 2009Illinois Bankruptcy Lawyer Andy Miofsky says, “A lack of income will be fatal to most chapter 13 cases. If you are unable to fund your existing plan, that plan will no longer work. You have six basic choices, some of which might offer assistance, while others will not solve the problem...
Is 800CreditCardDebt Better Than Bankruptcy?
Posted on April 05, 2009The company 800CreditCardDebt seems to think that you should not get the whole story before using their services! A commercial I saw says: “Don’t let the word bankruptcy enter your thoughts”. Really? Not even consider it? Advising people not to at least consider any solution that might help them is bad advise...
Bankruptcy and Short Sales: California
Posted on April 05, 2009Every week we get clients filing for bankruptcy protection asking questions whether they should proceed with a short sale on their real estate. The bottom line, is that if you are filing for bankruptcy, you should forget about a short sale in most situations...
Can I Keep My Favorite Credit Cards Off My Bankruptcy?
Posted on April 04, 2009“No, you are required to include all of your debt, including credit cards, when you file bankruptcy”, says Illinois Bankruptcy Attorney Andy Miofsky. Some clients ask whether they have to list one or two of their favorite credit cards. They want to know whether they can keep using those cards after they file...
Bankruptcy Law Network Contributor Brett Weiss Testifies Before Congress
Posted on April 04, 2009Maryland consumer bankruptcy attorney, and Bankruptcy Law Network contributing writer, Brett Weiss testified before Congress today. In testimony before the Judiciary Commercial and Administrative Law Subcommittee on April 3, 2009, Brett testified in favor of proposed legislation that would regulate interest rates, excessive late fees and other practices and tactics of the credit card industry that are [...
Practice Tip: Include Proof of Insurance on Schedules
Posted on April 03, 2009Lenders typically hire an attorney to send debtors a letter demanding proof of insurance coverage on houses and vehicles that secure debt. Just about every written loan contains boilerplate language requiring the borrower to provide and maintain insurance protection over the collateral...
Statement of Financial Affairs: What Is It?
Posted on April 02, 2009This is the first in a series of blogs about the Statement of Financial Affairs and the questions it asks. The Statement of Financial Affairs (SoFA) is a rather long document that is filed in every bankruptcy case. It consists of 18 questions if you don’t have a business, and 25 if you do...
Who Has The Title To My Car During My Bankruptcy Case?
Posted on April 02, 2009Your lender, or more accurately, the lienholder who is named on the title retains possession of the title during your bankruptcy case. Bankruptcy lawyer Andy Miofsky says “Neither the Court nor the trustee nor your bankruptcy lawyer ever receive your title...
Celebrity Bankruptcy
Posted on April 01, 2009In his article “Is Filing Bankruptcy Embarrassing?”, Illinois Bankruptcy Attorney, Andy Miofsky points out a number of reasons why you should not be embarrassed about filing for bankruptcy, one of which is the fact that major corporations routinely file for Chapter 11 bankruptcy as a way to get their debt under control...
Bankruptcy Attorney Has Duty to Check on Alleged Perfection of Security Interest, Idaho Court Rules
Posted on April 01, 2009According to an Idaho bankruptcy court, a lawyer has an obligation to check whether a motor vehicle security interest has been properly filed and perfected, based upon new bankruptcy code section 704(b)(4)(D)’s requirement that a lawyer certify, after an “inquiry,” that the information in the bankruptcy papers is correct...
Can I Pay Back My Debts After Bankruptcy?
Posted on April 01, 2009Nobody wants to file for bankruptcy, but sometimes it’s the best thing. Your finances are a mess, the rent is past due and the car is out of gas - so you do what you need to do. Let’s face it - you’re not proud of filing for bankruptcy...
When Will I Get My Car Title After I File Bankruptcy?
Posted on April 01, 2009Attorney Andy Miofsky says “You should get your car title after you receive a discharge at the end of your chapter 13 case.” Most bankruptcy courts require the chapter 13 trustee to serve as the paying agent for car loans. There are a few exceptions, but generally you pay a monthly amount to the trustee and the trustee uses [...
Student Loans Discharged; Court Rules That Wife?s Income Not Relevant in Determining Income for ?Undue Hardship? Analysis
Posted on April 01, 2009A Minnesota bankruptcy court recently held that the income of a non-debtor wife should not be considered to increase the income of a chapter 7 debtor, for purposes of considering whether the husband’s student loans should be discharged as constituting an “undue hardship...
Ten Reasons to Delay Filing Bankruptcy! Reason No. 4: Pre-Bankruptcy Transfers
Posted on March 31, 2009In determining when to file a bankruptcy consideration should be given to whether you have made any transfers which can be reversed. In certain situations the Trustee or a Creditor may be able to recover property or money that has been transferred and have those assets brought back into the bankruptcy estate to be available [...
Massachusetts: Means Test Not Safe Harbor in Chapter 7
Posted on March 31, 2009Massachusetts Bankruptcy Judge Rosenthal issued an opinion recently in the case of In re Boule, No. 08-43199-JBR (March 18, 2009). The United States Trustee moved to dismiss the case because the debtor’s income and expense schedules indicated that he had more than $900 left over each month to pay creditors...
Is Filing Bankruptcy Embarrassing?
Posted on March 31, 2009Do not feel embarrassed for filing bankruptcy. Bankruptcy Attorney Andy Miofsky says, “Bad things can happen to good people.” When you suffer financial misfortune, bankruptcy offers a solution. FIrst off, few will learn of the bankruptcy...
Sanctions Victory in Massachusetts
Posted on March 31, 2009The Bankruptcy Law Network’s Jed Berliner recently scored an impressive victory in the case of In re Panek, No. 03-46692 (Bankr.D.Mass. March 5, 2009). Attorney Berliner, on behalf of his client, Panek, sued Delta Management Associates, Inc. and others for violating the automatic stay and the Fair Debt Collections Practices Act for withdrawing money [...
A Song About Bankruptcy?
Posted on March 31, 2009No kidding. Our friends over at Bankruptcy Bill have posted their first single, “Bankruptcy Lover.” Check it out! Click here to listen to “Bankruptcy Lover.” If you liked that post, then try these...Jury Trials in Bankruptcy by Nicholas Ortiz, Boston Bankruptcy AttorneyHow to Deal With Debt Collectors: The Statute of Limitations by Brett Weiss, Maryland Bankruptcy AttorneyResolution [...
Chapter 7 Debtor May Use ?$0? Exemption on Asset Having Unknown Value; Mistaken Exemption Upheld
Posted on March 30, 2009Grueneich v. Doeling, 2009 WL 605774 (8th Cir.BAP, Minn., March 11, 2009), held that a chapter 7 bankruptcy debtor can, in good faith, claim an exemption in an unknown amount (”0.00″), if the debtor has good reasons for doubting the value of an asset...
Are You Really Ready to File Bankruptcy? Things You Will Need.
Posted on March 30, 2009You’ve gotten some information about bankruptcy and you think that you need to file. But are you really ready? Do you have the documentation that your attorney will need? Keeping in mind that practices vary across the country, this post will discuss some of the basic documentation you will need for your attorney so that you avoid [...
Should I File Bankruptcy?
Posted on March 30, 2009If you cannot pay your bills you should consider bankruptcy, says bankruptcy attorney Andy Miofsky. “Bankruptcy is a straightforward and simple analysis”. When you check reality, either you can pay your bills, or you cannot. Often people try to cash in whatever assets they have in order to keep the collection wolves at bay...
Waiver Of Credit Counseling And Debtor Education Ends For Eastern District Of Louisiana
Posted on March 28, 2009R. Michael Bolen, the U.S. Trustee for Region 5, has announced that debtors filing for bankruptcy in the Eastern District of Louisiana must begin to take Credit Counseling and Debtor Education beginning on September 16, 2009. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) required all debtors to take credit counseling before filing [...
Ron Paul?s opposition to Bankruptcy Reform is hypocrisy
Posted on March 27, 2009In his recent article, Congressman Ron Paul of Texas concludes that forcing inefficient corporations into bankruptcy is a more reasonable solution than bailing them out. ?Bankruptcy was the stimulus that we needed in the case of AIG. More bankruptcies would clean out mal-invested resources and enable economic growth again...
Ron Paul?s opposition of Bankruptcy Reform is hypocracy
Posted on March 26, 2009In his recent article, Congressman Ron Paul of Texas concludes that forcing inefficient corporations into bankruptcy is a more reasonable solution than bailing them out. ?Bankruptcy was the stimulus that we needed in the case of AIG. More bankruptcies would clean out malinvested resources and enable economic growth again...
Deduction for Involuntary Liens Disallowed on Means Test
Posted on March 26, 2009Massachusetts Bankruptcy Judge Hillman recently held in the case of In re Kucera, 2009 WL 691000 (Bankr.D.Mass., Mar 12, 2009) (NO. 08-17304-WCH) that a Chapter 13 debtor could not deduct a payment for an involuntary lien on his means test. The lien in the case had arisen from a pre-petition writ of attachment issued [...
I?m In Chapter 13 and I?ve Goofed-What Now?
Posted on March 26, 2009While you are in Chapter 13 you are prohibited from selling or otherwise disposing of property without court approval, and you’re also prohibited from borrowing money (other than in the ordinary course of business) while you are in Chapter 13. You are also required to get court approval if you settle a lawsuit or worker’s [...
New Bankruptcy Court Judge in the Northern District of New York
Posted on March 25, 2009Diane Davis was sworn in as Bankruptcy Judge for the Northern District of New York, Utica Division on March 6, 2009. Judge Davis replaces Judge Stephen Gerling, who recently retired. Judge Davis received her B.A. in Economics and German from St. Lawrence University in 1976 and her J...
Will my bankruptcy discharge go through?
Posted on March 25, 2009Those filing Chapter 7 bankruptcy almost always get a discharge. The law presumes the individual is entitled to a discharge. Only if a creditor or trustee challenges the entitlement to a discharge by filing an adversary proceeding is there an inquiry...
Where Do You Find Credible Bankruptcy Information?
Posted on March 25, 2009You’re looking for bankruptcy information online and stumble across a website with what appears to be relevant information. Do you trust it? How do you know? You’ve asked yourself this a million times as you surf the net - who do you trust? Get the right information and you’re all set...
Medical bills after Chapter 7 and during Chapter 13
Posted on March 24, 2009If you incur medical bills after you file a Chapter 7 or while you are in a Chapter 13 bankruptcy case, you are responsible and liable for paying those medical bills. However, if you incur medical bills while you are in a Chapter 13 case and then convert to Chapter 7 - those medical bills are [...
Can my creditors keep calling me after my bankruptcy?
Posted on March 24, 2009When you file a bankruptcy case, your creditors must stop calling you. If you are careful to give creditors notice at the right place, you can make them stop bothering you. And if they don't you can make them pay dearly.
How Much Is a Trillion?
Posted on March 24, 2009President Obama’s proposed budget calls for a deficit of over One Trillion Dollars. How much is a trillion? One Trillion Dollars can pay the rent for every renter in the US for three years… One Trillion Dollars can pay the mortgages for every homeowner in the US for 14 months… One Trillion Dollars can buy all the homes [...
Good Morning America Reports On The Economic Crises.
Posted on March 24, 2009Good Morning America has been doing an ongoing series on how individuals and families can survive the economic crisis. They have featured speakers such as Dave Ramsey, Suze Orman, and Mellody Hobson among others. These three offer advice about how they think people can survive the upcoming economic crisis...
Can I Refinance My Home While I?m In Bankruptcy?
Posted on March 24, 2009It is possible to refinance your home while you are in bankruptcy, though it will require court approval. If you are in a Chapter 7 and are trying to do a traditional refinance (a new lender, all new paperwork, etc.) your lender is probably going to want to wait until you receive your discharge to [...
How Fast Can A Bankruptcy Be Filed?
Posted on March 24, 2009People thinking about filing bankruptcy often think about doing it on their own - the reasoning is that if they could afford a pricey lawyer, they wouldn’t be in bankruptcy. But consider this, if nothing else. If you do it on your own (and legally there’s no reason why you can’t) you’re going to spend a [...
Madoff bankruptcy: What?s a claw-back? Are you at risk?
Posted on March 23, 2009The Madoff case reminds us that bankruptcy trustee has the right to "claw-back" certain types of transfers. Are you at risk?
Bankruptcy And A New Car
Posted on March 22, 2009You can buy a new car even though you are filing Bankruptcy (assuming, of course, that you can make the car payments). First of all, if you are going to file a Chapter 7 Bankruptcy, and know that you will need a new car in the immediate future, it?s perfectly legal to buy one before [...
Can I transfer my house to my kids?
Posted on March 22, 2009Sometimes, even today, clients have a have a house worth a lot more than the mortgage - the house has equity. Yet they face massive debt. They want to save their home. In Illinois and in Wisconsin, the homestead exemption may not be enough to protect all of the equity, unlike Texas or Florida which [...
Is there a good time to file my bankruptcy case?
Posted on March 21, 2009You may not be eligible for chapter 7 if your income during the last 6 months was higher even though you have suffered a big decrease in pay.
Strange Days: Means Test Numbers Don?t Make Sense
Posted on March 21, 2009Consumer bankruptcy debtors must complete a series of calcuations based on their median income from the six months prior to bankruptcy– in order to complete one of two forms, either Form 22A for Chapter 7 debtors or Form 22C for Chapter 13 debtors, using standards supplied originally by the IRS/Census Bureau...
Chapter 7 Reaffirmation Only Available if You can Afford to Pay
Posted on March 20, 2009The reaffirmation process in Chapter 7 is a useful and widely used tool for debtors to keep and continue to pay for houses, cars, furniture, electronics and co-signed debts. As I wrote in this blog back in February, 2008, reaffirmation will work in Chapter 7 if you have little or no equity in the collateral [...
NYS Attorney General Andrew Cuomo Intervenes For Consumers in Central NY Bankruptcy Case
Posted on March 20, 2009A Central New York Bankruptcy Court ruled that Affordable Furniture Stores in Central New York must reopen to allow customers to pick up furniture that they had already paid for. Attorney General Andrew Cuomo’s office had received three dozen complaints from people who had discovered the stores were closed in Syracuse, Utica, Rome and Watertown when [...
Can I get credit after bankruptcy?
Posted on March 20, 2009You can get credit after bankruptcy. But you must act responsibly.
I Co-Signed An Account?What Happens If I File Bankruptcy?
Posted on March 19, 2009People who co-signed an account and have to file bankruptcy are understandably concerned whether their bankruptcy filing will be reported on the other person’s credit report. The answer to this question is that it won’t. Many times when someone talks with a bankruptcy lawyer, he or she is concerned that an account that was co-signed will affect [...
I have an account at a bank I owe money - What should I do? What if the bank makes a set-off?
Posted on March 19, 2009People frequently bank at the same bank where they borrow, either personally or for their business. When they are thinking about bankruptcy, this is dangerous. Banks or other creditors have the right to set-off debts they have against you against money you have on deposit at their bank...
Can I modify my mortgage in chapter 13?
Posted on March 18, 2009Clients ask me every day “Can I modify my mortgage in chapter 13?” Unfortunately, the answer is “Not yet if you’re thinking about your home.” The House of Representatives voted in favor of mortgage modifications in chapter 13...
What Is A Proof of Claim?Does it come off a cereal box?
Posted on March 18, 2009A proof of claim is an official document filed by a creditor in your bankruptcy case demonstrating to the court that the creditor is entitled to payment. Filing a proof of claim in a bankruptcy case is critical if a creditor wants to be paid anything...
Can I keep my income tax refund in bankruptcy?
Posted on March 18, 2009As April 15 draws near, clients often ask “Can I keep my income tax refund in bankruptcy?” Depending upon the laws of your state and the amount of the refund, the answer often is Yes! Here’s what you have to do. Like everything else in bankruptcy, it is very important that you be completely open and honest [...
How To Keep Your Chapter 7 Trustee Happy.
Posted on March 17, 2009When you file a Chapter 7 bankruptcy, a trustee is appointed to oversee the process, make sure you have listed all of your assets and debts, and distribute any property of the estate to the unsecured creditors. Understanding what they do can make the process easier...
Why ?Show Me The Note? Matters
Posted on March 17, 2009More bankruptcy courts are demanding mortgage servicers prove they are entitled to collect on a mortgage loan note before foreclosing. The fight over standing to appear in court runs deeper than technicalities and tactics to stall a lender. It is a matter of fundamental rights...
Should I Keep Paying My Homeowner?s Insurance After Filing Bankruptcy?
Posted on March 17, 2009Many people surrender their homes to their lenders when they file for bankruptcy but as long as the property is titled to them, they may have some risk if someone is hurt on the property. As long as the property is in your name, your homeowner’s insurance would protect you from liability...
Banks? Future Woes in One Word: Plastic
Posted on March 16, 2009So read the headling in this CNN-Money story. As this article noted: Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government’s $700 billion rescue plan that he had no doubts 2009 would be an “awful year” for the credit card industry...
When Preparing to File Bankruptcy, Don?t ?Dump and Run?
Posted on March 16, 2009Every bankruptcy lawyer I know has had this experience. No matter what the stated procedure for providing paperwork in an organized fashion, a new client drops by the office unannounced, and drops off an enormous, amorphous mass of paper, usually including a stack of unopened bills...
How Much Do I Have to Pay the Chapter 13 Trustee?
Posted on March 15, 2009Clients always ask how much their Chapter 13 Plan payment will be, and how much they will have to pay the Chapter 13 Trustee each month. This isn’t an easy question to answer, since there are four different tests used to determine the number: the Means Test, the Chapter 7 Liquidation Test, the Disposable Income [...
Has the Recession ?Bottomed Out??
Posted on March 14, 2009This week’s media has been filled with stories about the Dow’s 9% increase, GM’s refusal of the next installment of its bailout money, Citibank’s report of being in the black so far this year, and banks’ requests to return TARP money...
1st Circuit B.A.P. Decision on Implied Acceptance
Posted on March 12, 2009The 1st Circuit B.A.P. recently reviewed the case of In re Flynn, Case No. 07-15470-WCH, in which Massachusetts Bankruptcy Judge Hillman denied confirmation of a Chapter 13 plan containing a balloon payment provision. Judge Hillman denied confirmation of the plan even though the affected mortgage creditor had not objected to it...
Avoiding probate with property transfer costly in bankruptcy
Posted on March 11, 2009Do it yourself transfers of real estate to the younger generation can result in the loss of the family home in bankruptcy. One of the powers granted Chapter 7 trustees is standing as a bona fide purchaser for value (b.f.p.). That’s legalese for an innocent buyer who has no reason to know that title is [...
Mortgage Modification Bill Now In Senate?s Hands - Judges Speak Out!
Posted on March 11, 2009Last week, the House of Representatives passed H.R. 1106 (Helping Families Save Their Homes in Bankruptcy Act 2009). Now, the fight begins in the Senate, and it looks like the gloves are going to come off for this fight. Opponents of the bill have been lobbying Congress very hard, and the tsunami of lobbyists converging [...
Do I Qualify For A Chapter 7 Bankruptcy?
Posted on March 10, 2009Most people qualify to file a chapter 7 bankruptcy. BAPCPA, the law that changed bankruptcy and went into effect in October of 2005 did attempt to make it harder to qualify, but in reality, only a very small percentage of consumers aren?t eligible. First of all, if your debts are primarily business related, you can [...
Bankruptcy Will Stop A Foreclosure?No Doubt About It!
Posted on March 10, 2009A bankruptcy filing will stop a foreclosure proceeding. As soon as you file for bankruptcy protection, a court order called the automatic stay, goes into effect immediately. With the number of foreclosures climbing to record levels, clients facing foreclosure will often ask whether a bankruptcy filing will really stop a foreclosure...
New Mortgage Modification ?Cram Down? Bankruptcy Laws to Help San Diego
Posted on March 09, 2009New Bankruptcy Laws may soon go into effect to relieve San Diego County’s underwater real estate market, wherein mortgages may be modified or “crammed down” by Bankruptcy Judges. In the first week of March, 2009, the House of Representatives passed the long overdue Bankruptcy “Cramdown Bill” (a mortgage modification bill) by a vote of 234 - 191, [...
1st Circuit B.A.P. Rules on Balloon Payments
Posted on March 09, 2009The U.S. Bankruptcy Appellate Panel for the First Circuit recently issued its highly-anticipated decision on the permissibility of balloon payments in Chapter 13. The long-and-short of it is that the panel held that the 2005 bankruptcy amendments eliminated balloon payments as an option for Chapter 13 debtors...
Bankruptcy Case Law Blog Launched
Posted on March 07, 2009The bankruptcy law students at St. John’s University School of Law in Queens, NY, have launched a new blog to report the rulings of the nation’s bankruptcy judges. The students will write a succinct analysis of the issues and holding in cutting edge bankruptcy cases...
Bankruptcy and Foreclosure Defense Firm Opens New Office In Sarasota, Florida
Posted on March 02, 2009Support bankruptcy reform by calling Congress through NACBA?s toll free number
Posted on March 02, 2009Does It Matter What I Do With My Tax Refund If I?m Going to File Bankruptcy Soon?
Posted on March 01, 2009Bankruptcy Judge Stephen D. Gerling Retires Today in the Northern District of New York
Posted on February 28, 2009Ten Reasons to Delay Filing Bankruptcy! Reason No. 3: Homestead Exemptions
Posted on February 28, 2009Appeals Court: Failure to File Section 521 Financial Disclosures Within 45 Days Need Not Result in Dismissal
Posted on February 28, 2009Same Sex Couples Not Required to Combine Income on ?Means Test,? Wisconsin Court Rules
Posted on February 27, 2009If I Sell My House Less Than One Year Before Filing Bankruptcy, Do I Have To Keep Records of What I Do With the Money?
Posted on February 27, 2009Court Imposes $2,000 Fine Upon Bankruptcy Petition Preparer
Posted on February 26, 2009A New Mexico bankruptcy court recently imposed a fine of $2,000.00 upon a bankruptcy petition preparer (BPP), as a sanction for offering legal advice to the debtors in whose case she had prepared the bankruptcy documents. The court held that the BPP’s conduct in offering legal advice violated bankruptcy code section 110...
More than a million families to benefit from mortgage modification bill in Congress
Posted on February 25, 2009More than 1 million households would benefit from seeking protection from creditors under a proposed law that would let bankruptcy judges modify mortgage terms
Some Consumer Debts Incurred after a Chapter 13 Filing Can be Included in Your Plan
Posted on February 25, 2009“Consumer debts” incurred after you file a chapter 13 case that are “necessary for the debtor’s performance under the plan” can be included in your bankruptcy case. With chapter 13 plans requring payments for up to five years, it is likely that, while your case is pending, you may incur additional debts...
House to Vote Thursday on Revised Bill for Mortgage Modification in Bankruptcy
Posted on February 25, 2009A new bill, H.R. 1106 to Prevent Mortgage Foreclosures and Enhance Mortgage Credit Availability, has been introduced in the U.S. House of Representatives and is scheduled for a vote on the floor Thursday. The sections for mortgage modification in chapter 13 bankruptcy are in the first part of the bill...
Creditor Reaffirmation Attorney?s Fees Disallowed
Posted on February 25, 2009This past December, Bankruptcy Judge Deasy of the District of New Hampshire decided In re Porter, 399 B.R. 113 (Bkrtcy.D.N.H. 2008). The debtor and home mortgage servicer in the case had submitted a reaffirmation agreement which added only one new provision to those of the original loan: that the debtor be liable for $350 [...
Bankruptcy Lawyers Must Love Recessions, Right?
Posted on February 25, 2009A terrible recession ought to be a great time for bankruptcy lawyers. With so many people and businesses in financial trouble, bankruptcy lawyers certainly have a lot of demand for their services. Bankruptcy lawyers are told their business is “counter-cyclical” — meaning that we are at our busiest when the economy is down...
Mortgage Modification in Bankruptcy Bill to House Floor Wednesday
Posted on February 25, 2009HR200, a bill pending in Congress to allow for mortgage modification in chapter 13 bankruptcy, may be brought to the floor of the House of Representatives by Wednesday or Thursday of this week. Supporters should call or fax their members of Congress today or tomorrow...
Bankruptcy and Foreclosure Defense Opens New Daytona Beach Office
Posted on February 25, 2009Parker & DuFresne, P.A., a law firm concentrating in the areas of consumer bankruptcy and foreclosure defense, announces the opening of its new office in Daytona Beach. ?For months, Daytona Beach residents would drive 90 minutes to our Jacksonville office for a consultation, so we knew there was a need that wasn?t currently being met in [...
President Obama, The Bankruptcy Code and Leadership
Posted on February 25, 2009If there is one thing that the Obama Administration can already claim is its ability to take unchartered directions quickly on issues that it deems important. Yet, in his first month as President he has failed to tackle the most pressing issue this Country is facing, Foreclosures...
Buying A House After Filing Bankruptcy
Posted on February 25, 2009When can I buy a house after filing bankruptcy? As a bankruptcy attorney, many of my clients are concerned that once they file bankruptcy they won?t be able to buy a house. Or at least they won?t be able to do so for the ten years a chapter 7 bankruptcy stays on their credit report...
Destruction of Bank Statements No Grounds for Denial of Discharge, Massachusetts Court Rules
Posted on February 25, 2009A Massachusetts bankruptcy court recently ruled that a chapter 7 debtor’s destruction of his bank statements was insufficient grounds to deny him a discharge under sections 727(a)(3) or 727(a)(4)(D) of the bankruptcy code. The debtor in In re Hegarty, 2008 WL 5246475 (Bky...
Bankruptcy Lawyers Must Love Recessions, Right?
Posted on February 24, 2009A terrible recession ought to be a great time for bankruptcy lawyers. With so many people and businesses in financial trouble, bankruptcy lawyers certainly have a lot of demand for their services. Bankruptcy lawyers are told their business is “counter-cyclical” — meaning that we are at our busiest when the economy is down...
Mortgage Modification in Bankruptcy Bill to House Floor Wednesday
Posted on February 24, 2009HR200, a bill pending in Congress to allow for mortgage modification in chapter 13 bankruptcy, may be brought to the floor of the House of Representatives by Wednesday or Thursday of this week. Supporters should call or fax their members of Congress today or tomorrow...
Bankruptcy and Foreclosure Defense Opens New Daytona Beach Office
Posted on February 24, 2009Parker & DuFresne, P.A., a law firm concentrating in the areas of consumer bankruptcy and foreclosure defense, announces the opening of its new office in Daytona Beach. ?For months, Daytona Beach residents would drive 90 minutes to our Jacksonville office for a consultation, so we knew there was a need that wasn?t currently being met in [...
President Obama, The Bankruptcy Code and Leadership
Posted on February 24, 2009If there is one thing that the Obama Administration can already claim is its ability to take unchartered directions quickly on issues that it deems important. Yet, in his first month as President he has failed to tackle the most pressing issue this Country is facing, Foreclosures...
Buying A House After Filing Bankruptcy
Posted on February 24, 2009When can I buy a house after filing bankruptcy? As a bankruptcy attorney, many of my clients are concerned that once they file bankruptcy they won?t be able to buy a house. Or at least they won?t be able to do so for the ten years a chapter 7 bankruptcy stays on their credit report...
Destruction of Bank Statements No Grounds for Denial of Discharge, Massachusetts Court Rules
Posted on February 24, 2009A Massachusetts bankruptcy court recently ruled that a chapter 7 debtor’s destruction of his bank statements was insufficient grounds to deny him a discharge under sections 727(a)(3) or 727(a)(4)(D) of the bankruptcy code. The debtor in In re Hegarty, 2008 WL 5246475 (Bky...
Chapter 13 Bankruptcy: What Gets Paid to the Unsecured Pot in the Ninth Circuit?
Posted on February 24, 2009Under the old laws, Chapter 13 payments were not that difficult to figure out. Reasonable monthly expenses were subtracted from monthly net income to arrive at a monthly disposable income figure, which then gets paid for 36 to 60 months, paying off secured, priority, and unsecured claims to the extent possible...
At Least We Don?t Have Debtors? Prisons?.
Posted on February 24, 2009This New York Times article describes how foreigners are now fleeing Dubai to avoid debtors’ prison. Dubai’s economy, heavily reliant on real estate, is crashing and as many as 3,000 cars are purportedly abandoned at Dubai Airport, left behind by “fleeing, debt-ridden foreigners...
How do I know I need to file bankruptcy?
Posted on February 24, 2009Just like banks say that they don't want to file foreclosures, people don't want to file bankruptcy either. What are the warning signs that you need to file for bankruptcy?
The proposed bankruptcy amendment will even help those who don?t want to file
Posted on February 24, 2009Many of my foreclosure defense clients would be fine financially if it were not for their foreclosure. They are current on car payments and credit card bills. But for their awful mortgage situation, they would never consider filing a bankruptcy. The good news is that, if Congress passes the Helping Families Save Their Homes in [...
House to Vote Thursday on Revised Bill for Mortgage Modification in Bankruptcy
Posted on February 24, 2009A new bill, H.R. 1106 to Prevent Mortgage Foreclosures and Enhance Mortgage Credit Availability, has been introduced in the U.S. House of Representatives and is scheduled for a vote on the floor Thursday. The sections for mortgage modification in chapter 13 bankruptcy are in the first part of the bill...
Creditor Reaffirmation Attorney?s Fees Disallowed
Posted on February 24, 2009This past December, Bankruptcy Judge Deasy of the District of New Hampshire decided In re Porter, 399 B.R. 113 (Bkrtcy.D.N.H. 2008). The debtor and home mortgage servicer in the case had submitted a reaffirmation agreement which added only one new provision to those of the original loan: that the debtor be liable for $350 [...
Some Consumer Debts Incurred after a Chapter 13 Filing Can be Included in Your Plan
Posted on February 24, 2009“Consumer debts” incurred after you file a chapter 13 case that are “necessary for the debtor’s performance under the plan” can be included in your bankruptcy case. With chapter 13 plans requring payments for up to five years, it is likely that, while your case is pending, you may incur additional debts...
President Obama, The Bankruptcy Code and Leadership
Posted on February 23, 2009If there is one thing that the Obama Administration can already claim is its ability to take unchartered directions quickly on issues that it deems important. Yet, in his first month as President he has failed to tackle the most pressing issue this Country is facing, Foreclosures...
Mortgage Modification in Bankruptcy Bill to House Floor Wednesday
Posted on February 23, 2009HR200, a bill pending in Congress to allow for mortgage modification in chapter 13 bankruptcy, may be brought to the floor of the House of Representatives by Wednesday or Thursday of this week. Supporters should call or fax their members of Congress today or tomorrow...
Bankruptcy and Foreclosure Defense Opens New Daytona Beach Office
Posted on February 23, 2009Parker & DuFresne, P.A., a law firm concentrating in the areas of consumer bankruptcy and foreclosure defense, announces the opening of its new office in Daytona Beach. ?For months, Daytona Beach residents would drive 90 minutes to our Jacksonville office for a consultation, so we knew there was a need that wasn?t currently being met in [...
Buying A House After Filing Bankruptcy
Posted on February 22, 2009When can I buy a house after filing bankruptcy? As a bankruptcy attorney, many of my clients are concerned that once they file bankruptcy they won?t be able to buy a house. Or at least they won?t be able to do so for the ten years a chapter 7 bankruptcy stays on their credit report...
Chapter 13 Bankruptcy: What Gets Paid to the Unsecured Pot in the Ninth Circuit?
Posted on February 21, 2009Under the old laws, Chapter 13 payments were not that difficult to figure out. Reasonable monthly expenses were subtracted from monthly net income to arrive at a monthly disposable income figure, which then gets paid for 36 to 60 months, paying off secured, priority, and unsecured claims to the extent possible...
Destruction of Bank Statements No Grounds for Denial of Discharge, Massachusetts Court Rules
Posted on February 21, 2009A Massachusetts bankruptcy court recently ruled that a chapter 7 debtor’s destruction of his bank statements was insufficient grounds to deny him a discharge under sections 727(a)(3) or 727(a)(4)(D) of the bankruptcy code. The debtor in In re Hegarty, 2008 WL 5246475 (Bky...
How do I know I need to file bankruptcy?
Posted on February 20, 2009Just like banks say that they don't want to file foreclosures, people don't want to file bankruptcy either. What are the warning signs that you need to file for bankruptcy?
The proposed bankruptcy amendment will even help those who don?t want to file
Posted on February 20, 2009Many of my foreclosure defense clients would be fine financially if it were not for their foreclosure. They are current on car payments and credit card bills. But for their awful mortgage situation, they would never consider filing a bankruptcy. The good news is that, if Congress passes the Helping Families Save Their Homes in [...
At Least We Don?t Have Debtors? Prisons?.
Posted on February 20, 2009This New York Times article describes how foreigners are now fleeing Dubai to avoid debtors’ prison. Dubai’s economy, heavily reliant on real estate, is crashing and as many as 3,000 cars are purportedly abandoned at Dubai Airport, left behind by “fleeing, debt-ridden foreigners...
Judges on Judicial Mortgage Modification Bill
Posted on February 17, 2009Judicial Mortgage Modification has cleared the House Judiciary Committee. Bankruptcy Judges have sent a letter seeking more exact wording, so that they will know what Congress intended. This is not an endorsement of the legislation, only some good questions about what exactly Congress means...
Connecticut Bankruptcy Filings Up 66% -
Posted on February 16, 2009A new report by The Warren group shows that Connecticut’s personal bankruptcy filings increased by 66 percent last year over 2007 figures. This parallels increases around the country. 5,676 filings were recorded in 2008 for Chapter 7 bankruptcy protection in Connecticut, compared to 3,417 in 2007...
Must I pay my creditors in less than 5 years in a chapter 13 case?
Posted on February 16, 2009Must creditors be paid in less than 5 years in a 100% chapter 13 plan? We don't yet know.
Nine Questions to Ask a Debt Negotiation Company
Posted on February 16, 2009Settling your debts through negotiation sounds like a good idea short of bankruptcy. It rarely works out that way if you have a lot of debt compared to your current income. Most debt negotiators operate on a specific idea: You will save up the money to make a settlement offer to each lender in turn until [...
Why Are the Mortgage Industry?s Objections to the ?Helping Families Save Their Homes in Bankruptcy Act of 2009? Wrong?
Posted on February 15, 2009The mortgage industry is putting huge amounts of money behind their efforts to defeat the ?Helping Families Save Their Homes in Bankruptcy Act of 2009?. The industry (which got us into what has mushroomed into a world-wide financial collapse) and their supporters are warning of dire consequences if the legislation that will allow Chapter 13 [...
New Massachusetts Bankruptcy Judge Begins Work
Posted on February 15, 2009The Bankruptcy Law Network welcomes new Massachusetts Bankruptcy Judge Frank J. Bailey. Judge Bailey is a former commercial litigator with the firm of Sherin and Lodgen LLP in Boston and was appointed in October 2008 (link requires PDF Reader) to fill the spot vacated by Judge Somma...
8th Circuit Bankruptcy Appellate Panel Upholds Pre-Bankruptcy Planning Decision
Posted on February 14, 2009On December 8, 2008, the 8th Circuit Bankruptcy Appellate Panel upheld Judge Berry’s decision, In re Wilmoth. Judge Berry held and the Bankruptcy Appellate Panel agreed that without extrinsic evidence of fraud the mere fact that paying approximately $140,000 towards the debtors’ primary mortgage within weeks of filing bankruptcy was not intentional to delay, hinder [...
Judicial Mortgage Modification Bill Leaves Unanswered Questions for Bankruptcy Practitioners
Posted on February 12, 2009San Francisco bay area bankruptcy attorney Cathy Moran brainstormed with her fellow bankruptcy practitioners today to discuss how judicial modification of home mortgages will work in chapter 13 bankruptcy if pending legislation becomes law. Moran compiled a list of questions: What is the risk premium for interest rates? Is the modification binding if the Chapter 13 is [...
What You Need to Know About Suze Orman
Posted on February 11, 2009Yesterday’s James Scurlock piece in Slate on what you really need to know about Suze Orman struck a lot of chords with me. This, for example, on the reasons people file bankruptcy: Although study after study has shown that personal bankruptcies are caused primarily by catastrophic events like divorce, job loss, and, above all, medical bills [...
Now is the Time for Judicial Modification of Mortgages in Bankruptcy!
Posted on February 11, 2009Over 46,000 foreclosures are filed per week in the United States. Per week! In my own state of North Carolina, it is estimated that over 1,000 foreclosures per week will be filed for 2009! Credit Suisse estimates that 8.1 million mortgages will be in foreclosure over the next four years! With the housing sector responsible for [...
How Do I Pass the Median Income Test in Bankruptcy?
Posted on February 11, 2009To qualify for Chapter 7 bankruptcy you must pass the median income test. Chicago bankruptcy lawyer David Leibowitz blogged how Chapter 11 is an option for some people who have above-median income, in his article “Chapter 11 is for People Too.” He said that you are presumed to abuse the system if you make more [...
Judicial Mortgage Modification, Lobby Day in DC
Posted on February 11, 2009Urging Congress to enact Judicial mortgage modification is what I, and over 100 other members of the National Association of Consumer Bankruptcy Attorneys were doing in Washington DC yesterday. We answered all the banking industry arguments, like, fairness...
Proverbs 17:22 - Sometimes Laughter Is The Best Medicine.
Posted on February 10, 2009Laugh Proverbs 17:22 says “A joyful heart is good medicine, But a broken spirit dries up the bones.” Not only does God state that it is good to have a hearty laugh but science also verifies that a good laugh is healthy for the soul and your heart...
Chapter 11 is for People Too
Posted on February 10, 2009Chapter 11 is not for everyone. But these days, we are seeing many clients who were doing very well just a few months ago and who are now hitting the rocks. For these clients, chapter 11 often turns out to be a good answer and the only viable answer.
The King Amendment hurts the Middle Class
Posted on February 09, 2009As David Leibowitz reports on Mortgage Law Network, under the ?King Amendment? to the mortgage modification bill in Congress (H.R. 200 and S.61), people who got their mortgage by ?fraud? won?t be able to get mortgage modifications in Chapter 13. There is no question that borrowers and lenders ignored the risk of loose underwriting requirements since [...
Budgeting is Critical in a Chapter 13 Bankruptcy Case
Posted on February 08, 2009Budgeting your money is critical in a chapter 13 bankruptcy case because you will have to make a payment to the chapter 13 trustee every month. If you do not make this payment, your case may be dismissed and you will not gain any benefit from your bankruptcy filing...
Do I have to file bankruptcy for my corporation?
Posted on February 08, 2009You and your small subchapter S corporation are two different things for bankruptcy purposes. Your wholly-owned corporation has its own tax ID number, its own assets and its own liabilities.
BLN Founder to Teach Bankruptcy to Solo Lawyers
Posted on February 07, 2009Bankruptcy Law Network Co-founder and President Jay S. Fleischman has joined the faculty of Solo Practice University. He will teach a six-session online course consumer bankruptcy law. Solo Practice University? is a new web-based educational community to teach lawyers what they don’t learn in law school about practicing law as solo practitioners...
Foreclosures and Bankruptcy
Posted on February 07, 2009So, your house is in foreclosure. That means that the mortgage company has filed papers to sell your home because you are behind in the payments. (There are other reasons for foreclosures of property, but this is certainly the most common.) There are, generally, three types of remedies to get you out of foreclosure: 1...
Credit Counseling and Financial Management Training - Traps for Debtors
Posted on February 05, 2009Until we can convince Congress that this is a waste of time and money, take the credit counseling, and take the financial management course. Otherwise, your discharge is in jeopardy.
Income Contingent Repayment Plans & Student Loan Discharges in Massachusetts
Posted on February 02, 2009Two Massachusetts bankruptcy judges have disagreed about requiring a debtor to apply for the Income Contingent Repayment Plan when seeking a discharge of student loans. Student loans are discharged if, after a trial, one can prove that repayment will impose an undue hardship...
Laid Off? I?m Going to Disney World!
Posted on February 02, 2009According to this article in the February 2, 2009 Charlotte Observer, 3,400 people have already applied for 2,100 temporary summer jobs at the local Carowinds amusement park, more than triple the usual number. Of interest are the types of people applying...
My Employer is in Bankruptcy! What can I do?
Posted on February 01, 2009If an employer goes into bankruptcy, what can employees do to protect themselves? Employees are not helpless. Employees have some important rights under bankruptcy and labor laws. Protect your pension plan Protect your health benefits Find out what rights you have under COBRA to continue your health insurance coverage Find out how your health claims will be paid...
How to choose a bankruptcy attorney
Posted on February 01, 2009Consider quality, value and service when choosing a bankruptcy attorney.
Car in Someone Else?s Name: Resulting Trust
Posted on February 01, 2009You’re worried about the car your son put in your name to save on insurance. Will a bankruptcy trustee take it? Not in Massachusetts, and probably not in your state. It’s called a “resulting trust,” and this trust relationship presumed where the non-owner son actually paid for the car and is its primary user...
How Will Mortgage Modification Work under the New Bankruptcy Law?
Posted on February 01, 2009How does the (proposed) bankruptcy law, known as Helping Families Save Their Homes in Bankruptcy Act of 2009, actually work? Here is an example: Joe is a successful Jacksonville plumber who is a sub-contractor for ACME Homebuilders. In June of 2005, he and his wife purchased a house for $440,000 with 80/20 financing...
Octuplets? Grandmother Filed For Bankruptcy! News Or Cheap Shot?
Posted on January 31, 2009ABC News reports: “Octuplets’ Family Has Bankruptcy History”! CBS News reports: “Octuplets’ Family Filed For Bankruptcy”! ABC and CBS are reporting on the recent birth of Octuplets’ to a woman in California who already had six children and lives with her mother in a three bedroom house...
Credit Suisse Supports Change To Bankruptcy Code
Posted on January 31, 2009In an article published on the internet, Credit Suisse has come out in favor of a proposed change to the Bankruptcy Code to allow Bankruptcy Judges to modify residential mortgages. This is now the second major lender who supports this common sense change...
Ten Reasons To Delay Filing Bankruptcy! Reason No. 2: The Debtor?s Domicle
Posted on January 31, 2009The 2005 amendments to the Bankruptcy Code, known as the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) changed the time that a debtor must be domiciled in a state before the debtor can claim the bankruptcy exemptions of that state. Under the pre-BAPCPA Bankruptcy Code the debtor generally had to wait 90 days to use [...
Should I File Bankruptcy Now if the Law is Going to Change?
Posted on January 31, 2009Congress is debating a change to Chapter 13 of the Bankruptcy Code to allow homeowners with “negative equity” in their homes to reduce the amount owed on their mortgages to the amount of their home’s value. This is the “cram down” legislation, which has failed on many occasions due to the the banking industry’s [...
Wah, Wah, Wah, Wah, Wah.
Posted on January 30, 2009When you go to an attorney for a consultation do you hear Charlie Brown’s Teacher in your head? You are NOT alone. I too sometimes hear the wah, wah when I speak to other attorneys. My staff often tells me that I presume that everyone else in the world is as excited about bankruptcy as I [...
Should I Try to Negotiate a Mortgage Modification or Should I Just Go Ahead With Chapter 13?
Posted on January 30, 2009I wish that question had an easy answer. I wish we could say if you have this mortgage, yes, if your situation is that, don’t bother. But the fact of the matter is that everyday I hear a different story. There are some common themes: it’s hard to get to the right person; when you [...
Contributions to Retirement Plan OK says Wisconsin Bankruptcy Court
Posted on January 30, 2009Clients ask “Can I keep making contributions to my retirement plan in a Chapter 13 case?” They also ask “can I include contributions to my retirement plan in my budget” for purposes of a chapter 7 case. Why is this important? If your income after taxes is greater than your expense, your chapter 7 case [...
What The Heck Is Bankruptcy?s Order of Reference?
Posted on January 30, 2009Every federal district court has a standing order of reference which refers all bankruptcy cases to the bankruptcy court for its district. The reference can be withdrawn by the district court at any time, usually because a case requires resolution of a conflict between bankruptcy laws and other laws affecting interstate commerce...
Protect your income tax refund in bankruptcy
Posted on January 29, 2009Tell your bankruptcy attorney if you are expecting an income tax refund or economic stimulus payment.
Three Bankruptcy Filings in 12 Months Equals No Automatic Stay
Posted on January 29, 2009Three bankruptcy filings in 12 months seems a bit much, yes? But it happens. Perhaps there was carelessness by the filer or an attorney, or perhaps there was misplaced hope that a Chapter 13 case could succeed but then a sudden loss of income occurred...
Defending a Fraud Complaint
Posted on January 29, 2009In bankruptcy, creditors are permitted to object to the dischargeability of a debt incurred by fraud. Such complaints often initiate very contentious proceedings (and are often combined with complaints to deny a debtor’s general discharge). When faced with a fraud complaint in bankruptcy under Section 523(a)(2), here are some points to remember...
The Means Test: Increasing Punishment for Consumers as the Economy Declines?
Posted on January 28, 2009The bankruptcy means test could be a new source of pain for consumers as the recession deepens. The 2005 Congress tied everyone together in a community and, perversely, elected to punish consumers who live in the hardest-hit communities more. In a nutshell, BAPCPA dictates that consumers with average income over the prior six-months which is greater [...
Do I Have to File Bankruptcy all my Credit Cards?
Posted on January 28, 2009If you are filing a bankruptcy case, you must declare all of your assets and all of your debts. You can't decide "not to file bankruptcy on" a particular asset or a particular debt. Instead, you can try to exempt an asset or to reaffirm a particular debt...
An odd provision in HR 200
Posted on January 28, 2009One of the stranger provisions in the proposed Helping Families Save Their Homes in Bankruptcy Act of 2009 is the requirement that the debtor certify that he attempted to contact the “holder” of the claim to discuss mortgage modification within 15 days prior to the commencement of the bankruptcy case...
Mortgage Modification in Bankruptcy would Mean More Money to Credit Card Banks
Posted on January 27, 2009The new mortgage modification bill is not a give-away to homeowners, who will devote 3 to 5 years to payment of their credit card and other unsecured debts under a chapter 13 plan.
Pre-Bankruptcy Means Test Planning ? Try Moving
Posted on January 27, 2009The 2005 amendments to the Bankruptcy Code created a very complex rule to discourage folks from moving around the country to protect more property. But the same amendments encourage people to do so if it helps avoid that same law. One aspect of the law we have come to hate is the change to discourage folks [...
If I File Bankruptcy, Can I Keep My Bank Accounts?
Posted on January 27, 2009That is one of the most frequently asked questions I get from clients. Often, it’s not phrased as a question, but as a statement: “I know I can’t keep my bank accounts if I file bankruptcy.” This perception is so common that it almost rises to the status of urban legend...
Court Rules Unauthorized Post-Petition Settlement Void
Posted on January 27, 2009The recent case of In re Dooley, 2009 WL 95037 (Bkrtcy.D.Mass.2009) serves to highlight a few basic principles about lawsuits and bankruptcy. Dooley was (in this order) injured in a car accident, hired a PI lawyer, filed a Chapter 7 bankruptcy case, and settled his PI case...
Debt, Divorce, And Dealing With Both In Bankruptcy
Posted on January 27, 2009Divorce and bankruptcy often go hand in hand. What many people don’t realize is that filing for bankruptcy can make a divorce easier by eliminating the fights and concerns over paying debts that the individuals are not in a position to pay. Financial problems can contribute significantly to marital problems, so it isn’t surprising that [...
Should I Sell My Business Before Filing For Bankruptcy?
Posted on January 26, 2009Business owners who are thinking about filing for personal bankruptcy may think about closing down their business before doing so - either by sale or merely by shutting the doors altogether. It’s important to always keep one thing in mind when you’re in financial difficulty, and that is this simple rule: In the months leading up to [...
Chicago Bankruptcy Judge Says Chapter 13 Projected Monthly Income is based on Actual Income and Expense
Posted on January 26, 2009Judge Wedoff of the United States Bankruptcy Court for the Northern District of Illinois has issued an opinion where he tries to harmonize conflicting opinions about what constitutes "projected monthly income." This is highly important in determining how much a debtor has to pay under a plan.
Demand your Congressman and Senators to Support Mortgage Modifications in Bankruptcy
Posted on January 26, 2009The mortgage and banking industry will do everything it can to thwart mortgage modification legislation - unless you demand your Congressmen and Senators to help homeowners fight mortgage foreclosure -- NOW!
Can The Federal Government File Bankruptcy?
Posted on January 26, 2009How good is the Federal Government’s credit rating? This is a question of great concern right now because President Obama and his incoming administration have indicated that they are open to the possibility of another stimulus package. In other words, they are looking to borrow another $800 plus billion dollars to help stimulate the economy...
In re Booth: Chapter 13 Plan Provisions Regarding Cure of Mortgage Arrearages and Application of Fees Disapproved by Court
Posted on January 25, 2009A recent Arkansas bankruptcy court decision, In re Booth, 2009 WL 81327 (Bky.E.D.Ark. Jan. 14, 2009), was notable more for the chapter 13 plan provisions it disapproved, than for the chapter 13 plan provisions it approved. First, the court disapproved a plan provision which prohibited the mortgage lender from imposing costs or fees of any kind, [...
Allowing Bankruptcy Judges To Modify Home Loans Could Also Help The Credit Card Companies
Posted on January 25, 2009The new legislation to allow Bankruptcy judges to modify home loans will not only help homeowners save their homes but often will increase the amount of money that credit card companies and other unsecured creditors receive in a Chapter 13 Bankruptcy...
When are you Safe after a Fraudulent Conveyance?
Posted on January 25, 2009Very generally, a fraudulent conveyance is a transfer of money or property from a debtor to someone or something else when either (1) the debtor intends to defraud creditors or (2) the debtor received less than a reasonably equivalent value in exchange for the transfer and made it while insolvent...
California Court: $6,060 Monthly Mortgage Payment Not an Abuse of Chapter 7
Posted on January 23, 2009In In re Johnson, 2008 WL 5265740 (Bky.S.D.Cal. Dec. 8, 2008), a California bankruptcy court ruled that a debtor with a $6,060 monthly mortgage payment was not to be denied a bankruptcy discharge based solely upon the size of the mortgage payment. The court turned aside a challenge under section 707(b) which claimed that the [...
Chapter 13 Bankruptcy Reform Bill Testimony
Posted on January 22, 2009The House Judiciary Committee took testimony today on the pending Chapter 13 bankruptcy reform proposal. National Association of Consumer Bankruptcy Attorney Board Member Mathew Mason was among those appearing. The support of the BLN bloggers for this Chapter 13 bankruptcy reform has been longstanding and ongoing, witness these posts by Jacksonville Florida Bankruptcy Attorney Chip Parker and [...
Savings back in style
Posted on January 21, 2009On my way to bankruptcy court, I saw a Wachovia billboard touting savings , and I thought, “Hurrah!, Someone in addition to ING promoting saving, rather than spending”. Therein lies a blog, I was sure. On the train, before I could get to keyboard, I read a decision by Judge Deasy, ostensibly about the means test, [...
Obama White House Position on Bankruptcy Laws
Posted on January 20, 2009The White House website has been updated to announce the Obama administration position on changes needed in the bankruptcy law. The administration promises to reform corporate bankruptcy laws to protect workers and retirees. Bankruptcy and credit card laws were included on the list of promised reforms...
Is California Going Bankrupt?
Posted on January 19, 2009John Chiang, the chief financial official in California, has recently announced that California may not be able to pay billions of dollars in income tax refunds. It seems that the sunshine state is running out of money. Social service programs are going to take an immediate hit, as will student loans, tax refunds and other [...
Bankruptcy and Guilt
Posted on January 19, 2009?I need to file bankruptcy, but I feel so guilty about not paying my bills.? I here this a lot during initial conferences with clients asking about debt relief. My answer is usually the same: look at the amount of money you have paid to the credit card companies over the past several years, and [...
When?s the Right Time to File Bankruptcy?
Posted on January 19, 2009In her January 3, 2009 article, The Case for Walking Away, Jane Bryant Quinn, Newsweek columnist and financial advisor, makes the same argument that many bankruptcy attorneys make: sometimes the best thing you can do is walk away from your house and your bills and get the fresh start that’s the purpose of the Bankruptcy [...
Chicago Bankruptcy Professor Hired Obama
Posted on January 18, 2009Professor Douglas Baird, a bankruptcy law professor at the University of Chicago, asked Barack Obama to come to the Chicago and teach after he graduated from the Harvard University Law School. Baird solicited Obama when he was president of the Harvard Law Review...
Why not allow mortgage modifications in Chapter 7?
Posted on January 18, 2009All of us here at Bankruptcy Law Network file consumer bankruptcies, and we are all very excited by the prospect of the new bankruptcy law that will allow the modification of mortgages in Chapter 13. However, our excitement is fueled by the fact that it is the first real piece of legislation to help the [...
Citigroup Breaks Promises and Raises Credit Card Rates
Posted on January 17, 2009According to a recent article in The Huffington Post, Citigroup has gone back on its word to Congress that if its customers didn’t breach their credit card agreement it wouldn’t raise its interest rate. When Congress was considering imposition of new rules on credit card companies in 2007 because of perceived abuses in their practices, Citigroup [...
San Diego Bankruptcy Cases Rising
Posted on January 17, 2009As the economy continues its downward spiral, and government bailouts seem to have little if any effect, the individual consumer can not seem to escape the economic turmoil. All too often, more and more people are turning to Bankruptcy Relief. For the year ended 2008, there were 13,633 filings for the Southern District of California Bankruptcy [...
Can Bankruptcy Help Save Your Home From Foreclosure?
Posted on January 17, 2009Bankruptcy can help save homes from foreclosure in a few ways. Under the present laws, filing either a Chapter 7 or a Chapter 13 bankruptcy will stop a foreclosure, but you will have to cure the mortgage somehow. Chapter 7 is a temporary stop to the foreclosure, but might give you a short time to [...
Bankruptcy and Foreclosure: The Basics in California
Posted on January 17, 2009As real estate values plummet and foreclosures skyrocket in California, more and more debtors are inquiring as to whether Bankruptcy can stop Foreclosure. The short answer in most cases is Yes. With few exceptions, a Bankruptcy will stop a foreclosure proceeding and save a home...
Unusual Means Test Ruling Allows Chapter 7 Debtor to Receive a Discharge, Despite Failing the Means Test
Posted on January 16, 2009A recent Wisconsin case allowed a chapter 7 bankruptcy debtor to receive a discharge, even though she “failed” the means test, and even though she presented no special circumstances to rebut the presumption of abuse under section 707(b). Instead, the court made the unusual ruling that section 707(b) states only that the court “may” dismiss [...
Bankruptcy Filings Up Over 30% In 2008- Can You Hear Me Now?
Posted on January 16, 2009The 2008 numbers are out. Bankruptcy Filings in 2008 are up over 30% from 2007. In total, almost 1.1 million bankruptcies were filed. That is almost 100,000 cases per month. In 2007, there were approximately 827,000 bankruptcy filings. I anticipated that bankruptcy filings would go up; however, I could not have anticipated how band things [...
Is the Trustee Mean?
Posted on January 16, 2009Chapter 7 bankruptcy trustees have a dirty job in consumer cases. Sometimes they have to be harsh to do it right. But if you’re playing by the rules, they hope it will be as painless as possible. Trustees don’t exist to make you feel bad for having to file bankruptcy...
What Happens To A Student Loan In Bankruptcy?
Posted on January 14, 2009Student loan debt will not be discharged in most cases, and the loan will continue to incur interest during bankruptcy. If you are in a chapter 13, your plan will generally provide that student loan debt receives the same per cent dividend as other unsecured debt...
2009: The Coming Meltdown. Part Four: Consumer Credit
Posted on January 14, 2009In this last part of my four-part series on what I believe will be a very bad 2009 economy, I want to talk about problems in consumer credit. As is the case with mortgages and car loans, virtually all consumer credit is securitized. This means that your MasterCard and Visa, your store department cards, furniture loans, [...
The Divorcing Couple with a Mountain of Debt
Posted on January 13, 2009An all-to-common picture of American domestic dysfunction: a married couple whose marriage cannot be retrieved from the abyss of discord, who trudge into the office of a bankruptcy lawyer to discuss their mountainous load of unsecured credit card debt...
Chapter 11 Bankruptcy for Churches
Posted on January 12, 2009Chapter 11 bankruptcy (link to information on website of Detroit Michigan bankruptcy attorney Kurt OKeefe) is not just for individuals and for profit corporations. As with Chapter 7 and Chapter 13 bankrupty cases, filing Chapter 11 stops foreclosure, garnishment (explained by southern Oregon bankruptcy attorney Karen Oakes) and any other collection activity by creditors...
2005 Bankruptcy Law Linked to Causes of U.S. Mortgage Meltdown
Posted on January 12, 2009The Kansas City Star reported today that three researchers at the Federal Reserve Bank of New York, in a study, assert that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, known as BAPCPA, is the leading cause of the mortgage meltdown...
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