Thought for the Day Archive – 2020:
Bankruptcy related insights and information
Bankruptcy can be a complicated area of law, requiring use of specialist counsel to help insure there are no unpleasant surprises. I have practiced bankruptcy law exclusively since 1986, have been board certified in consumer bankruptcy law since 1993, and take the time to insure I understand your situation and explain the options throughout the case. Call for appointments 800 393-3100. All appointments are done by telephone now during covid. Thank you.
Merry Christmas, may we be thankful for what we have, and hope for a better 2021.
11th Circuit awards appeal sanctions against pro se debtor attorney, and sustains nearly $10,000 of sanctions awarded by lower courts for vexatious and bad faith litigation. Hint, citing Buggs bunny and including haikus, many exclamation points, and exceedingly long pleadings, including challenging subject matter jurisdiction of bankruptcy courts to rule on 523 motions don’t help.
2nd DCA rules that increase in wage exemption for head of household that agreed in writing to garnishment from $500/week to $750/week applies retroactively to loans incurred before such amendment, and that the 25% garnishment allowed under the Consumer Protection Act only allows 25% garnishment of wages above the $750/week threshold. Note all wages of the head of a household remain protected absent an agreement in writing with the creditor to the contrary.
Respect and thanks to all veterans
How to choose an attorney to represent you?
Firm now reopened under original management, which gives me more flexibility to help clients and spend more time on initial consultations with clients. Free initial consultation with board certified counsel.
Even if your business is its own legal entity and kept separate from your personal finances, owners who provided a personal guarantee on their business debt are still on the hook even if the company goes into bankruptcy. In that case, the way to potentially avoid your personal assets being seized — i.e., your house, car, savings, etc. — is to also file for personal bankruptcy.
Americans wrestled with debt-collection lawsuits long before the coronavirus hit, a new report finds. Now, a surge of the suits may swamp consumers who lost their jobs in the pandemic and can’t afford to pay their bills.
Michael Barnett has now joined with nationally recognized tax attorney Larry Heinkel at Law Offices of Larry Heinkel, PA
The hallmark of Chapter 13 bankruptcy is the repayment plan. In this case, rather than liquidating your assets, the court allows you the opportunity to repay some of your debts through a repayment plan.
Filing for Chapter 13 bankruptcy has the potential to provide short- and long-term help for people facing foreclosure of their homes. But it’s a complicated process full of restrictions as well as serious consequences for your credit profile. A bankruptcy lawyer can provide advice specific to your needs.
The decision to file for bankruptcy is not to be taken lightly, so it’s important to understand how bankruptcy will impact your finances. Getting legal assistance is often an essential part of the process as well.
Depending on whether you file Chapter 7 or Chapter 13, #bankruptcy can last several months, or run for up to five years. But the benefits of bankruptcy begin when you file, because the court issues an automatic stay, which halts all collection activities against you.
What happens to your retirement funds in bankruptcy before you retire? Here are five common questions about retirement in bankruptcy.
Court finds conduct of LVNV and Resurgent Capital, companies that buy debts and file claims in bankruptcy, to file claims inaccurately lumping interest and fees in the principal balance portion of the proof of claims they file, may be a violation of Fair Debt Practices Collection Act.
Despite the hardships you’ll endure after declaring a bankruptcy, there are several ways you can bounce back.
If you lose a lawsuit to a creditor and the amount you owe is too high for you to pay, you might consider filing for bankruptcy. When you file, collection efforts against you will be automatically halted.
While bankruptcy law sets out a list of exemptions, ie property debtors are allowed to keep when they file bankruptcy, states can opt out, and set their own list of property exempt. However, the law also says that you cannot use the exemptions from where the case is filed if the debtor has not resided in the state for 2 years, and must use the exemptions of the state where the debtors resided for the 6 months prior to that 2 years. To make things more complicated, many states do not allow nonresidents to use their exemptions, in which case debtors can once again use the exemptions in the federal bankruptcy law. An Idaho court was faced with the issue of Maryland exemptions which permitted nonresidents to use personal property exemptions, but not real property exemptions; and indicated in that case debtors could not use the federal exemptions, but were instead left with no exemption for their real property.
A Pennsylvania debtor attorney was recently sanctioned for copying schedules (list of assets, debts, etc) from prior case in new case filed 16 months later. In the case In re Thomas, Case #18-17430-ELF, 2020 Bankr. LEXIS 396 (Bankr. E.D. Pennsylvania, 13 February 2020) the debtor’s attorney filed nearly identical schedules showing same amounts of cash on hand, same bank balances, same amounts owed creditors, and same income and expenses in the case filed 16 months ago. The court found this violated the attorney’s duty to make reasonable inquiry into the accuracy of the schedules, and sanctioned the attorney by 1) prohibiting any fees in the case, 2) requiring the attorney to pay $1,000 to the trustee, and 3) referring the matter to the US Trustee for possible further disciplinary proceedings.
While this is an extreme case, it is far too common to see counsel that do not take the time to explain the requirements to clients, to review all documents filed with the clients, and to undertake some independent review to attempt to insure the accuracy of the documents filed with the court. As these are filed under penalty of perjury, it is very important clients know they need to be accurate. I spend about an hour on the appointment where the schedules are signed, and spend significant time with clients before this understanding their situation and review income, assets, and debts.
Before taking the big leap into bankruptcy, consult a bankruptcy attorney and learn the facts about how credit scores treat bankruptcy. You just may be able to minimize the damage and get a jump on re-establishing your credit after filing.
A U.S. bankruptcy judge in New York ruled that a Navy veteran can discharge their student loans in bankruptcy, raising questions of whether the decision is unique to the circumstances of the case, or whether it points to a shift in how bankruptcy judges are thinking about student debt.
Chapter 13 is a form of bankruptcy in which a debtor’s finances are reorganized and a plan is developed for the debtor to repay their loans in a set period of time. It is the second most common bankruptcy, behind only Chapter 7.
Important case on duties of debtor’s counsel and Judges regarding reaffirmations in chapter 7. Reaffirmation likely hurts credit score, counsel must see if budget is realistic in deciding whether to sign best interest cert to avoid 9011 violation.
Judge Covington affirms Judge Colton’s rejection of vicarious liability §523(a)(6) slander charge for Casey Anthony’s statements made by her counsel, finding that Anthony did not specifically authorize such statements. Kronk v Anthony, 2020 US Dist Lexis 2784, case #8:19-cv-674-T-33 (M.D. Fla. 7 January 2020).