While there are an endless number of misconceptions about filing bankruptcy, the one I’ve encountered more often in the past weeks is the belief that participation in a debt management program or debt settlement program meets the new requirement for a “credit briefing” as a condition of filing bankruptcy. The Bankruptcy “Reform” Act of 2005 […]
Cash collateral in consumer cases
What’s cash collateral, and why should you care? You care because there’s a whole set of rules in bankruptcy to protect a creditor’s interest in cash collateral, and ugly consequences if you ignore those rules. But you don’t have to have a traditional business to have cash collateral, and the duties it brings, in a […]
File Your Tax Return Or Get An Extension?
Filing a tax return does not focus a spotlight on you. Really. I regularly see clients who have not filed returns because they have some issue with the IRS. They either have taxes that will be owed with the unfiled return, or taxes owed from earlier periods. They think they are avoiding trouble by not […]
Where’s the UST?
Sort of unwittingly, I got involved in one of the bigger issues plaguing bankruptcy courts recently: the claim filed in the bankruptcy by the debt buyer without supporting documentation. I objected to a claim filed a client’s case by Roundup Funding, who had never had any contact with my client prior to filing. There were […]
Sell first, litigate later
Meeting with a client with Truth in Lending claims the other day reminded me about the power of the Bankruptcy Code to facilitate the sale of property subject to disputed liens while preserving the claims against a secured creditor. These clients had property they wanted to sell but the amount they owed the holder of […]
Muttering about the means test
The stupidity of the means test as a metering device in bankruptcy was apparent as I worked through the case of a single debtor. Because she is a renter with an old, paid-for car, and no unpaid taxes, the means test will compel her to pay a significant amount monthly to her Chapter 13 plan. […]
Loan hype debases the language
My blood boils when I read tripe like this pitch from a lender promoting a debt consolidation loan: it’s not a loan, says the headline, it’s a way out of debt. I’m sorry, but that’s baloney. About sixth grade, I learned that 3+7 and 5+5 both equaled 10. No matter what order the numbers came […]
More seniors file bankruptcy
The elderly are a growing percentage of bankruptcy filers. The reasons are myriad: health care costs, inadequate retirement savings, and financial entanglements with family. The trend to market home equity loans as a way to live better makes it less likely the mortgage is paid off when retirement arrives. The question, “Should I file bankruptcy?” […]
Unintended consequences of the means test
I’m always delighted when I uncover another aspect of the bankruptcy “reform” act of 2005 that operates in my client’s favor. We all know that the law was written to skewer the consumer debtor who was painted as irresponsible and profligate, a picture absolutely at odds with the world as I’ve seen it in 46 […]
Should You Keep Your Stuff After Bankruptcy?
The usual question for a bankruptcy attorney is “can I keep my (fill in the blank)”. Whether it’s a house, or a car, or a computer, clients want to know if filing bankruptcy will strip them of their “stuff” bought on time. Frequently the answer is that they can keep the asset as far as the […]
