By Scott Riddle Posted in Chapter 13,Chapter 7,Debt Collection & ForeclosureA deficiency claim is a claim by a lender for the balance owed on a loan after a foreclosure or repossession and liquidation of the collateral. For example, if the balance owed on a home loan is $200,000, and a lender forecloses and sells the house for $150,000, the lender has a claim for the… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7,Creditor Law,Debt Collection & ForeclosureWe have all heard that we should check all three major credit reports at least once a year and some experts recommend checking it two or three times a year. There are several good reasons for this. One, your credit reports and credit scores directly impact your ability to obtain credit and the terms of… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7In consumer Bankruptcy cases, especially Chapter 7 cases, completing the Schedules is one of the most important tasks. The Schedules identify (among other things) all your creditors, your property (and values of the property), your exemptions, income and expenses. In Chapter 13 cases, they will show the disposable income that will be paid to the… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7,Debt Collection & ForeclosureAlthough many people enter Bankruptcy with a desire to save their home from foreclosure, others are anxious to rid themselves of the property and the debt associated with it. This could be their primary residence or other homes or real estate they own. A problem that occasionally comes up is that the person in Bankruptcy… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Although there are many reasons that individuals may have to file a Bankruptcy case, including medical debt, foreclosure, wage garnishment, and other reasons, the one question important to all of them is will they lose any of their property in the case and what will they get to keep. Often people have visions of moving… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureOne of the alternatives to foreclosure is a “deed in lieu of foreclosure.” Simply stated, this means that rather than making the lender go through the foreclosure process, the home owner agrees to execute a deed for the property transferring it to the lender. In turn, the lender agrees to accept the deed (and transfer… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7We have discussed the Means Test in detail in this post. “Passing” the Means Test is the key to qualifying for Chapter 7 Bankruptcy, which is a much better option than Chapter 13 for many people. It allows people to get in and out of Bankruptcy in a few months, with no 3-5 year payment… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7,Creditor Law,Debt Collection & ForeclosureA term that has become popular in the real estate crisis of the last few years is “strategic default” (or “strategic foreclosure“). The theory behind the term is that the borrower is defaulting on a loan because of a financial “strategy” rather than an inability to pay. With the decline in housing prices many people… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7After filing for Bankruptcy, people naturally wonder “Where do I go for court?” Like all lawyers, we will give our clients the location of the courthouse, the location of your first meeting of creditors if it is held in a different location, and we even have a document with directions and tips on parking, security… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7In this previous post, we discussed where you can file a Bankruptcy case if you are planning on moving or have recently moved. The second very important question is what state’s exemptions will apply after a move. These exemptions vary widely from state to state. In order to discourage people from moving to a new… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7People who find themselves in financial problems often face a move as well. This may be for better work opportunities or to move closer to family. If a Bankruptcy filing is also a possibility, the question becomes where to file the case (the “venue”), and whether it is better to file before or after a… Continue Reading
By Scott Riddle Posted in Chapter 13A while back I read about a study in which Bankruptcy Judges were asked whether an apology by the debtor helped when deciding whether to confirm a Chapter 13 Plan. Some Judges were given a Plan that contained the following statement at the end of the Plan: “We have no way of keeping up with… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Household size is an important factor in many consumer Bankruptcy cases. Most importantly, the Means Test figures are based on the size of the household so it is important in determining eligibility for Chapter 7 or Chapter 13 and in calculating disposable income to be paid in the Chapter 13 plan. It is also relevant… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7One of the requirements of filing a Bankruptcy case is completing the Schedules honestly and completely. It is perfectly fine to unintentionally leave something out as long as the Schedules are amended. One of the most common items left off Schedule B (personal property) is claims or lawsuits that the person filing for Bankruptcy has… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7Throughout this blog, and most other Bankruptcy blogs and sites, we use the term “Bankruptcy Estate” (or just “Estate”), but what exactly is this “Estate?” In basic term, the Estate is created when a Bankruptcy petition is filed, and it includes all the property of the debtor that an be “administered” by the Trustee as… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7It is not uncommon for people who file for Bankruptcy to receive an inheritance either during their Bankruptcy case or shortly after their case is over. Is the inheritance part of the Bankruptcy estate and can the Trustee take the inheritance? In either a Chapter 7 or Chapter 13 case, if your relative passed away… Continue Reading
By Scott Riddle Posted in Chapter 11,Chapter 13,Chapter 7If you own a small business that is organized as a corporation or limited liability company you probably understand that you are generally not personally responsible for the business debts unless you agree to be responsible (for example, personal guarantees). However, one exception to the rule is personal liability for payroll taxes that should… Continue Reading
By Scott Riddle Posted in Chapter 11,Chapter 13,Chapter 7This time of year many people are checking the mail box (or bank accounts if they choose direct deposit) for their tax refunds. Many people are counting on the “extra” money to catch up on a bill or get some repairs done to the car. For people who have filed for Bankruptcy, or are thinking… Continue Reading
By Scott Riddle Posted in Chapter 11,Chapter 13,Chapter 7As this post is written, many people have either recently filed their tax returns or are getting ready to file by the April 15 deadline. While most of us are not happy happy happy this time of year, for some people it is a reminder of their lingering tax debt from prior years. A common… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Since we are Bankruptcy lawyers, with many years of experience, we see firsthand the dangers and hazards of trying to file a case without a lawyer. On a daily basis, people on legal forums like AVVO and Lawguru post questions about getting out of trouble they have gotten themselves into by not hiring a good… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7As we discussed in this prior post there are two requirements for counseling in a Bankruptcy case. The first credit counseling session has to be completed within six months before filing the case. If the counseling is not completed and the certificate is not filed, the case will almost always be dismissed. However, although this… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7I recently came across an article listing fifteen shocking facts about student loans in the United States. You can access the article by clicking here, but fair warning that it is one of those pictorial lists that have taken over the interwebs these days. I will not copy the entire list, but here are the… Continue Reading
By Scott Riddle Posted in Chapter 13Yes, it is possible to have too much debt for Chapter 13 but those are unusual cases. Unlike Chapter 7 cases, with no limit on the debt that can be discharged, Chapter 13 does have limits. Congress thought the process may be too cumbersome if an individual comes in with too much debt and they… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureMany Bankruptcy cases in Georgia, and other states, are filed to stop a foreclosure of the family home. They are not filed only because of the foreclosure, but the realization that the family home is about to be lost is usually the final straw after a period of financial problems. It is certainly understandable that… Continue Reading
