Articles in the Bankruptcy Law Category

Bankruptcy Law, Featured »

[16 Jul 2015 | No Comment | 1,753 views]
The Key Elements Of A Chapter 13 Bankruptcy Plan

Chapter 13 is a plan for debtors who wish to keep some of their secured property such as a home or a car. A security interest is created most often when a consumer buys a new product such as a home, auto, or tools for doing work. Because the consumer items are expensive, the debtor needs to take out a loan. The creditor wants to have some assurance, other than the credit-worthiness of the consumer, to insure it will get paid. To protect their loan, the creditor then requires that the consumer agree that if they don’t pay the loan, the creditor can repossess the item that was purchased. Debtors can also agree that creditors have a security interest (a right to repossess collateral on default) even after they’ve purchased the item. Many […]

Featured, Non Bankruptcy »

[9 Jun 2015 | No Comment | 6,911 views]
What is Debt Consolidation And How Does It Work?

Debt consolidation refers to combining the many debts of a consumer into one obligation. A debt consolidation is a way of combining some or all of these debts into one payment. Essentially, the debtor agrees to take out a new loan. The loan allows the debtor to pay off the many claims in return for paying one larger claim. Most consumers have multiple debt obligations simultaneously. Paying just one debt is simpler. Consolidating the debts may have financial advantages too. Consumers who own a home or a car will pay a monthly principal payment plus interest (a loan payment) for the obligations. Home and car debts are often given because the debtor agreed to return the home or car if the loan is not paid. A debt that uses collateral (a home or […]

Bankruptcy Law, Debt Settlement »

[25 May 2015 | No Comment | 1,606 views]
Learn These 10 Important Things You Should Do During a Debt Settlement Process

The process of debt settlement is almost impossible if done alone, or if done without the know-how of the process; it is like wishful thinking of being debt free. It is important to involve knowledgeable people to help you manage your finances and clear you from debts as well as improve your credit score. A good bankruptcy advocate understands the importance of being debt free and proper management of debts whether as an individual or company. In the year 2014, a statistical survey carried out in Connecticut indicates that at least three hundred (300) people in each county population petitioned for bankruptcy. It is obvious that is a very large number of individuals declared bankrupt, and a clear indication that bankruptcy is increasing rather exponentially. Discussed below are some of the pointers to […]

Bankruptcy Law, Featured »

[21 May 2015 | No Comment | 2,276 views]
What Conduct does the Automatic Stay Stop and What Conduct it Doesn’t Stop

The filing of bankruptcy petition (chapter 7 or Chapter 13) automatically stops a lot of activity by creditors. Any creditor who doesn’t stop the activity may be subject to sanctions by the bankruptcy court. There are exceptions as noted below. If an exception doesn’t apply, then the creditor must formally ask the bankruptcy court for relief/permission to continue their conduct. The main things that debtors should know is that once they file a bankruptcy, in most cases, they will be able to breathe, have time to plan their financial future and STOP the harassing phone calls and collection agencies. Collection agencies can no longer directly contact the debtor by calling them at work or at home. Creditors must stop all court case actions. All attempts to repossess your home or your vehicle must […]

Bankruptcy Law »

[5 May 2014 | No Comment | 1,913 views]
When Would Someone File For Chapter 20 Bankruptcy?

In “the good ol’ days” (before 2005) a bankruptcy debtor with a mortgage problem could file a Chapter 7 bankruptcy and discharge all of his unsecured debts, then immediately turn around and file a Chapter 13 to deal with real estate debt. Bankruptcy attorneys referred to this as a “Chapter 20” (Chapter 7 plus Chapter 13). The 2005 amendments to the Bankruptcy Code sought to kill this practice; however recent cases have revived the Chapter 20 practice. See In re Davis (Branigan v. Davis), 716 F.3d 331 (4th Cir. 2013). Why would anyone want to file two bankruptcy cases? That is a good question – and there are some good answers for it! Filing 2 bankruptcy cases Imagine that you are self-employed and have a non-dischargeable $80,000 tax debt to the IRS, and […]

Bankruptcy Law »

[13 Apr 2014 | No Comment | 1,650 views]

There are many bankruptcy strategies to assist honest debtors obtain a fresh start. One of the best tactics for Chapter 7 debtors is found in Section 722 of the Bankruptcy Code: Redemption. Redemption is only available to Chapter 7 filers. (if you don’t know what chapter 7 entails, view this link) Chapter 7 allows the debtor to redeem secured collateral for an amount equal to the secured portion of the loan. In other words, if you have a car worth $7,500, and owe the lender $17,000, the secured portion of the loan is $7,500 and the unsecured portion is $9,500. You can redeem the car for $7,500 and the remaining $9,500 is subject to discharge at the end of your case. Property is determined by its Replacement Value The secured portion of property […]

Bankruptcy Law »

[28 Mar 2014 | No Comment | 5,028 views]
Can I Continue Retirement Contributions During Bankruptcy?

If you’re wondering whether you can continue to make contributions while you’re going through the bankruptcy process read on to find out if you can. Bankruptcy courts, including appellate courts, are split whether a debtor may continue payroll deductions to fund a voluntary retirement account, such as a 401(k), during a Chapter 13 case. The issue boils down to two competing interests: savings for the debtor’s retirement versus additional payments to unsecured creditors during the bankruptcy case. In attorney jargon, are wages earmarked for retirement contributions considered “disposable income?” Three competing interpretations have developed. First, some courts find that voluntary retirement contributions are not disposable income, so debtors can continue to make them during a Chapter 13 plan period. This is the majority view. Courts adopting this view permit debtors to make voluntary contributions […]

Bankruptcy Law »

[23 Mar 2014 | No Comment | 1,325 views]
What If I Forget To Declare Property During Bankruptcy?

It’s natural to want to know and inquire as to what happens if you forget to declare any of your property during bankruptcy. I’ll answer this below. During Chapter 7 bankruptcy, the debtor is charged with disclosing all of his or her income, expenses, assets and debts. The point is to allow the bankruptcy court to consider what the debtor needs to effectively reorganize personal finances. In a Chapter 7 liquidation case, certain assets not necessary to the debtor’s welfare are taken by the bankruptcy trustee and sold to pay the creditors; the people you owe. Debtors are allowed to keep certain property that is reasonable and necessary for their personal welfare. To this end, federal and state exemption laws exist to protect a debtor’s property in bankruptcy. Disclosing ownership of an asset […]

Bankruptcy Law »

[14 Mar 2014 | No Comment | 802 views]
The Supreme Court Rules To Protect Bankruptcy Exemptions

Bankruptcy is a complex set of laws that balance the interests of debtors against the rights of creditors to receive payments. The central feature of the bankruptcy law is the Bankruptcy Code, authorized by the U.S. Constitution and written by Congress. The Bankruptcy Code is generally the supreme law in a bankruptcy case and debtors, trustees, creditors, and even bankruptcy judges are obligated to follow its dictates. The recent U.S. Supreme Court case of Law v. Siegel examines the extent of how obligated a bankruptcy judge is to follow the Bankruptcy Code. In this case, the Chapter 7 debtor, Law, claimed that his home had two liens against it and also applied a California state homestead exemption of $75,000 to protect any remaining equity. If his assertions were true, there was no equity […]

Bankruptcy Law, Featured »

[17 Dec 2013 | No Comment | 1,001 views]
Give Me The Top Ten Best Things About Chapter 7 Bankruptcy

Bankruptcy is a powerful tool for restructuring personal finances, discharging oppressive debt, and granting the “poor but unfortunate debtor” a fresh start. While there are several different methods for filing bankruptcy found in the various chapters of the Bankruptcy Code, the most popular is a liquidation bankruptcy found in Chapter 7. If you need a refresher on Chapter 7 or just some common knowledge, simply follow the following link for the basics: It’s Time to Start Fresh A Chapter 7 is an “erase-your-debts-and-start-fresh” bankruptcy. In a Chapter 7, non-exempt property is taken and sold to pay creditors. Any debt that is not paid is discharged, as long as it has not been excluded by law or by the bankruptcy court, such as a child support debt. There are many benefits to Chapter 7, so […]

Arts & Entertainment, Bankruptcy Law, Featured »

[8 Dec 2013 | No Comment | 1,167 views]
Dionne Warwick’s Latest Attempts to Discharge Over $10 Million in Taxes

Have you heard the news? In September, the bankrupt soul singer Dionne Warwick filed a lawsuit against the United States and State of California to discharge federal and state taxes dating back to 1991. Warwick had previously been granted a Chapter 7 discharge by a New Jersey bankruptcy court in July, and now seeks a determination by the bankruptcy court that her tax debt was included in that discharge. The Internal Revenue Service filed a claim in Warwick’s bankruptcy totaling almost $7 million and the State of California filed claims at over $3 million. Warwick’s attorneys assert that all of her federal and state tax debts were included in the July discharge order. They stated that all of the taxes claimed owed by the IRS and State of California were assessed more than […]

Bankruptcy Law, Business »

[9 Jul 2013 | 2 Comments | 9,173 views]

Earlier today I published an article outlining the basics of Chapter 7 bankruptcy and would like to give you some information about Chapter 13 as well. But before I continue, I’d like to refer you to an article I wrote which outlines some of the basic questions and answers about bankruptcy to get you started. It’s basically written for people who are just considering bankruptcy and would like to understand what they should expect when they finally take the leap. A Little About Chapter 13 Bankruptcy Chapter 13 of the Bankruptcy Code is a voluntary bankruptcy used to repay all or some of an individual’s debts. Chapter 13 bankruptcy is only available to individuals (not corporations) who have a regular income. For this reason it is often called a “wage earner’s plan.” Chapter […]

Bankruptcy Law »

[9 Jul 2013 | 5 Comments | 5,645 views]

When it comes to bankruptcy, there are several types you can apply for like Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Chapter 7 is the most commonly filed bankruptcy. A Chapter 7 bankruptcy is called a “liquidation” bankruptcy and is used by individuals, partnerships, or corporations that have no hope for repairing their financial situation and repaying creditors. During a Chapter 7 case, all of the property is liquidated in accordance with the rules of the federal Bankruptcy Code and the proceeds are used to pay creditors. State and federal laws allow individual debtors to keep property necessary for the financial restructuring process during Chapter 7 bankruptcy. These laws are commonly known as “exemptions” and allow debtors to protect a reasonable amount of equity in vehicles, homes, household furniture, clothing, electronics, tools […]