A colleague of mine recently had a potential client come in for an initial consultation about possibly filing a bankruptcy case. This person had, a year and a half earlier, transferred his 50% interest in his family’s home to another family member. His share was worth $250,000 (it was owned free and clear of any […]
What do I do if I’m being sued by a debt collector? If a debt collector has sued you, whether it’s the original creditor or someone to whom they’ve sold the collection rights, it’s important that you respond in some way. You don’t want to ignore the lawsuit. If you do, the collector will get […]
Chapter 7 is a fast process that results in the discharge of unsecured debts. Common unsecured debts are credit card, personal loans, medical bills, and deficiencies on repossessed cars. Chapter 7 doesn’t discharge secured debt (mortgages or car loans), but you have the option of surrendering the house or car to get rid of the debt. Chapter […]
The 9th Cir. BAP on student loans in bankruptcy: Where no payments are forecasted, failure to negotiate a repayment plan is not a factor showing bad faith. More on student loans in bankruptcy: On April 16, 2013, the Ninth Circuit Bankruptcy Appellate Panel decided the case of Roth v. Educational Credit Management Corporation. The case […]
No commitment to future repayment efforts, job seeking outside your field, or agreement to extended payment plans required to discharge student loans in bankruptcy cases. Discharging student loans in bankruptcy: Susan Krieger is a 53 year old woman living in rural Illinois with her daughter and her 75 year-old mother. She has not worked since […]
On March 25, 2013, the Ninth Circuit Court of Appeals decided the case of In re Welsh. The debtors in the chapter 13 bankruptcy case owned a home and several vehicles, all encumbered by secured debt. They had income from multiple sources, including employment ($7,333), pension ($1,100), and Social Security ($1,165). They filed a Chapter […]
Section 109(e) of the Bankruptcy Code provides what are known as the “debt limits” for Chapter 13 bankruptcy cases. It provides that only a person whose debts are less than a certain amount may file a Chapter 13 case. As of April 1, 2013, those limits have changed. For cases filed April 1, 2013 and […]
The biggest hurdle I face in my area of legal practice is this: Helping people come to the realization that they shouldn’t feel guilty about filing a case with the Bankruptcy Court. I never use the phrases “declare bankruptcy” or “go bankrupt.” What I do is help my clients file a very specific kind of legal case […]
A debtor-friendly decision on 401(k) contributions in bankruptcy came out of Washington state last week, but it requires some background to explain: The Chapter 13 Means Test One of the factors determining the size of your Chapter 13 Plan payments is your income; the more money you make, the more money your unsecured creditors need […]
The treatment of HOA dues in bankruptcy is quite different from the treatment of other types of debt. They might be secured (the HOA has recorded a lien) or unsecured (no lien). And even if they are unsecured, they’re the only type of unsecured debt where you know you’re going to begin incurring again immediately […]