In my Bankruptcy Alphabet, F is for First meeting of creditors. Lots of rumors exist about the that meeting; it produces unwarranted anxiety that is avoidable if you understand what’s up. Let’s check it out. The first meeting of creditors, also called the 341 meeting, is often the only time a debtor has to appear […]
Bankruptcy Alphabet: R is for Retirement
In my bankruptcy alphabet, R stands for Retirement. Retirement plans and IRA’s are safe in whatever chapter of bankruptcy you file. Your rights in an employer’s pension plan or a union pension plan are not even part of the property of your bankruptcy estate. The Supreme Court held almost 20 years ago that ERISA qualified […]
Bankruptcy Alphabet: Z is for Zillion
In my bankruptcy alphabet, Z is for zillion. Zillion is a real word but a made-up number. For certain, it’s lots and lots. It takes a zillion details, it seems, to file a bankruptcy case. And it goes on. Guess what? The 2005 Congress who passed the bankruptcy reform act wanted to make it detailed […]
Bankruptcy Alphabet: H is for House
In my bankruptcy alphabet, H is for house. Can I keep my house if I file bankruptcy, anxious homeowners ask. In most cases, my answer is “yes”. Should you keep the house is another question. Houses are vulnerable in bankruptcy only if there is If the trustee can’t sell the property for enough money to […]
Bankruptcy Alphabet: C is for Counseling
Counseling, delivered by an approved provider, before the bankruptcy case is filed, is required. Fail to get counseling and your case will be dismissed. That’s my “C” word in the bankruptcy alphabet. Prebankruptcy counseling is supposed to insert an objective third party between the beleaguered individual who needs relief and the greedy lawyer who, according […]
Bankruptcy Alphabet: B Is For Business
Business is my bankruptcy “B’ word. Business debt of the individual filing bankruptcy is dischargeable just as other personal debt. In Silicon Valley, the very innovation and risk taking that makes the Valley vibrant brings with it the risks of not making it in the marketplace. Bankruptcy can be the “do over” vehicle, freeing manpower and […]
Bankruptcy Alphabet: K Is For Keep
The letter K is for the stuff you keep through bankruptcy. The cartoon image of someone going through bankruptcy has them wearing a barrel instead of clothes. It’s a funny image but it’s not real. Most debtors keep far more of their assets than you’d image. Here’s why. Exemption law protects assets The Bankruptcy Code […]
Bankruptcy Alphabet: O Is For Omitted
O stands for Omitted in my Bankruptcy Alphabet. Whether it’s creditors or assets that are left out, omissions can create trouble in a bankruptcy filing. So, O could also stand for Oops. When creditors are left out Omitted creditors usually create problems only for the person filing the bankruptcy. Bankruptcy works on notice, and, at […]
Bankruptcy Alphabet: E is for Exemptions
E stands for exemptions in my Bankruptcy Alphabet. Exemptions describe the possessions you get to keep when you file bankruptcy. E could also stand for Exception, since exemptions are the only place in bankruptcy law where the law is explicitly different from state to state. Exemptions vary The Bankruptcy Code gave the states the right […]
