By Scott Riddle Posted in Chapter 7,Creditor Law,Debt Collection & ForeclosureFunds in joint bank accounts can generally be accessed by all account-holders — each of them can withdraw all of the money in the account regardless of who actually deposited the funds in the account. This is often the reason for having a joint account. However, this can create a huge problem for the account… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7A couple of events made the news in the last week or so that are relevant to Bankruptcy or financial matters. In this prior post, we discussed the mostly made-up story about the man who was supposedly arrested just because he was late on his student loans. Another story that did not get as much… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7After the filing of a Chapter 7 case, creditors generally have the opportunity to file a claim for money they believe is owed to them. This is generally done through an official “Proof of Claim” form. In “no asset” cases, there is generally no claim form mailed out to creditors since there will be no… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7,Debt Collection & ForeclosureIn a previous post we discussed in detail the math that applies when a Chapter 7 Trustee is deciding whether or not to sell a house. In short, unless there is significant equity over and above exemptions, rarely will a Trustee be interested in taking a second look at the house. There is simply no… Continue Reading
By Scott Riddle Posted in Chapter 7,Creditor Law,Debt Collection & Foreclosure‘Tis the Season … of very attractive offers from credit cards for cash advances or balance transfers at 0% interest or a very low interest rate (“teaser rates”). I get them just about every day from credit cards I have and ones I don’t have. The most aggressive bank sends me about two offers a… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7Bankruptcy itself is normally an emotional time for most people, and it can get more emotional when they have visions of someone coming in their house and taking their personal property. As we discussed in this post, that is simply not reality and the great majority of people filing for Bankruptcy do not lose any… 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 7If you read blogs like this one, or other Bankruptcy resources, you will no doubt run across references to “no asset” Chapter 7 cases. Although the term “no asset” is not a defined term in Bankruptcy law it actually has a very specific, and very important, meaning in Chapter 7 cases. It means that the… 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 7As discussed in more detail in other posts, to qualify for a Chapter 7 case most people have to “pass” the Means Test, which is based on your income for the six month period before filing. It is normally a straightforward calculation – add up all income you have received in the last six months… 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 7Although this and virtually all other consumer Bankruptcy blogs discuss Bankruptcy cases that are voluntarily filed by individuals, occasionally someone asks whether they can be forced into Bankruptcy by a creditor or another party. The answer is yes, it is theoretically possible, but very rare in practice. The process is called an “Involuntary Bankruptcy Petition”… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7Lawyers who have been in the Bankruptcy field for any length of time have come across people who either want to try to hide assets in their Bankruptcy case, or who have been caught doing so. We occasionally are asked by potential clients how to shield or hide assets from the Trustee or creditors (a… Continue Reading
By Scott Riddle Posted in Chapter 7I frequently get calls from individuals who own small or mid-size businesses that are experiencing financial difficulties and need to close their doors. They often assume that they should file a bankruptcy petition on behalf of the business if it is a separate business entity. Often, filing the petition for the business does no good,… Continue Reading
By Scott Riddle Posted in Chapter 7Like all Bankruptcy lawyers, I am happy that just about every client or potential client that has walked through my door is completely honest with me and in their filings with the Bankruptcy Court. However, when discussing the Bankruptcy Schedules and list of assets, it is natural to occasionally get asked how Chapter 7 Trustees… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 7If you are wondering how a Chapter 7 Trustee makes money from Bankruptcy cases, here is the answer. They typically get paid in several ways. First, they get $60 from the filing fee for each of their cases. If there is a fee waiver in the case, they get nothing. Most Chapter 7 cases are… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 11,Chapter 13,Chapter 7A Rule 2004 Examination (often just called a “2004 Exam”) is the procedure used by parties in a Bankruptcy case to get documents or information from another party. The name comes from Rule 2004 of the Federal Rules of Bankruptcy Procedure, which governs the process. The rule is very broad and essentially allows any party… Continue Reading
By Scott Riddle Posted in Bankruptcy Basics,Chapter 13,Chapter 7In this prior post, we discussed Exemptions in Bankruptcy and why very few people actually lose property to the Bankruptcy Trustee (mainly in Chapter 7 cases). The primary reasons that people filing for Bankruptcy do not lose property is because they either do not have property that could be sold for a significant amount, or… Continue Reading
By Scott Riddle Posted in Chapter 7When a Chapter 7 case is filed, or a case is converted from a Chapter 11 or Chapter 13 to a Chapter 7, a Chapter 7 Trustee is assigned for the case from the “Trustee Panel.” The Panel is made up mostly of lawyers in private practice, but may include accountants or other individuals with… Continue Reading
By Scott Riddle Posted in Chapter 7Many people considering filing a Bankruptcy case are justifiably concerned that they may lose their home in the case, either to the lender or to the Chapter 7 Trustee. The reality is that rarely will the Chapter 7 Trustee have an interest in the homes of individuals who have filed Chapter 7 cases. The reason… Continue Reading
