By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7A common question we often get is whether when one spouse files for Bankruptcy, the other spouse has to file too. The answer is no, unless there are other reasons the spouse needs to file. In most facets of Bankruptcy debtors are treated as individuals with their own debts and assets, even in joint cases… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7Occasionally, our clients are surprised with how much work that goes into filing a Bankruptcy case and with how much effort they need to put in to complete the initial filings. This is simply one of the unavoidable trade-offs for the benefits of a Bankruptcy filing. The Schedules that have to be filed in every… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7The initial consultation with a good bankruptcy lawyer is a very informative and valuable experience for many reasons. It is an opportunity to “interview” the lawyer to see if you believe the lawyer is qualified and whether he or she will be easy to work with. It is also an opportunity to spend an hour… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13You know that in a Chapter 13 case you have to pay into a Chapter 13 Plan, usually for a period between 36 and 60 months. The amount of your payment is based on your disposable income. How are these payments made to the Chapter 13 Trustee? In the great majority of cases, they are… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Debt Collection & ForeclosureMost consumer websites such as this one focus on Chapter 7 cases and Chapter 13 cases, with the occasional reference to individual Chapter 11 cases. The types of Bankruptcy are identified by the specific chapter in the U.S. Bankruptcy Code. What is a Chapter 20 case, since there is no Chapter 20 in the Bankruptcy… Continue Reading
By Scott Riddle Posted in Chapter 13As discussed in more detail in this post, junior liens may be stripped from a home if they are totally unsecured (i.e., the value of the house is less than the balance owed on senior liens). Typically, Bankruptcy lawyers will file a motion to strip the unsecured junior lien shortly after the case is filed,… Continue Reading
By Scott Riddle Posted in Chapter 13,Chapter 7,Creditor LawWhen completing Bankruptcy Schedules, we are asked to identify three categories of creditors: 1) Secured Creditors (Schedule D), 2) Unsecured Creditors (Schedule F) and 3) Priority Creditors (Schedule E). When creditors file a Proof of Claim, they have to state which category into which their claim falls. Here is a brief description of each of… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7,Creditor LawIf you are a party in a personal Bankruptcy case, you have probably come across references to a “Proof of Claim” form (sometimes simply referred to as a “claim”). Officially, it is known as Form B10, and you can view and complete the form on the U.S. Courts website. This form, completed by the creditor,… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13As discussed in our posts on the Chapter 13 Plan and Disposable Income to be paid in the Plan, we are able to include in our budget the “ownership expenses” of vehicles, which basically means the monthly payments due on the car loan or lease (and not “Transportation Expenses” such as gas and maintenance). In… Continue Reading
By Scott Riddle Posted in Chapter 13As we have discussed in other posts, the money that has to be paid into a Chapter 13 Plan is based on calculations of disposable income. Calculating disposable income is both a science and an art, and a good, experienced Bankruptcy lawyer will know how to propose a plan that is in the best interests… Continue Reading
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 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 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 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 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