A Chapter 7 bankruptcy is a legal liquidation of non-exempt assets, so debtors in such cases want to be able to keep as much of their property as possible. State laws generally allow a generous exemption amount for a homestead in the debtor’s personal residence, while federal law generally allows liberal exemptions for other personal property items. However, these different exemptions must be used consistently throughout the petition. A debtor has to pick which to use, state or federal law. Mixing the exemptions allowed by two systems in order to achieve maximum protection for the debtor’s case is absolutely prohibited.
March 2nd, 2011 by Administrator
Persons contemplating bankruptcy can enter into a car loan without worrying about losing the new car in their bankruptcy. As long as the money they have put down is within the exemption allowed under the appropriate law, they would be allowed to keep the car and continue regular payments if such payments are affordable within their means given their income and other expenses. They should be allowed to reaffirm this debt and keep it outside of their bankruptcy, while discharging the debts they need to.
March 2nd, 2011 by Administrator
Fees that are owed to an attorney acting as a guardian ad litem (GAL) in a divorce case are to be distinguished from other types of attorney fees, which are generally dischargeable in a Chapter 7 bankruptcy case. The recent case In Re: Gove, Thomas E., Jr., (Lawyers Weekly No. 04-003-11) (21 pages) (Feeney, J.) (USBC) (Chapter 7 case No. 09-22405-JNF; Adv. P. No. 10-1048) (Jan. 13, 2011) found that where such GAL fees had been incurred for a pre-petition divorce proceeding, such fees were the equivalent of other court-ordered support payments. According to the court, “[Thomas E.] Gove [Jr.]‘s obligation to pay GAL fees to O’Brine meets the definition of a domestic support obligation under 11 U.S.C. s.101(14A) and is, therefore, a nondischargeable debt under 11 U.S.C. s.523(a)(5). …”
February 21st, 2011 by Administrator
The easiest way for someone with a debt to buy themselves time and avoid a possible wage garnishment is to answer a lawsuit complaint they are served with. Even if they are not completely ready to defend against the lawsuit, answering the complaint would prevent the company suing them from immediately obtaining a default judgment. The company would have to obtain its judgment by motion after a hearing. Once a company has a default judgment, they can request an execution, which can be used to place a lien on any real estate their account holder has. The company’s next step would be to start a supplementary process action to collect on the judgment and thereby obtain a court order for wage garnishment.
February 21st, 2011 by Administrator
The credit counseling course certificate gets filed along with the bankruptcy petition, so debtors must complete this requirement at the time of their filing. Often, debtors begin the bankruptcy process and finish this requirement, but are waiting to get remaining items together before filing their case. Such persons should be aware that the course certificate is valid for the court’s purposes for one hundred and eighty (180) days, or approximately six months, in order for them to use the certificate for their bankruptcy filing.
January 24th, 2011 by Administrator
Bankruptcy debtors can keep their residence if they can afford their mortgage payments, and perhaps try for a modification based on their hardship. However, these bankruptcy filers should be aware that there may be hidden costs in doing so. For example, while the mortgage bank cannot use the fact that an applicant filed bankruptcy to deny a mortgage modification, an insurance company can base their approval upon the applicant’s credit score. Property or liability insurance coverage may then be denied even to someone who can otherwise afford to stay where they are.
January 24th, 2011 by Administrator
A bankruptcy debtor is required to produce to the trustee in his case seven days before the date of his creditors’ meeting pay stubs for sixty days prior to the date of filing and his last year’s tax return. The return required to be produced is the federal return, usually two pages. None of the other annual return paperwork is required, including federal schedules and deduction sheets and the state return. Information about tax refund monies still in the possession of the debtor would be reported as personal property on Schedule B and no additional paperwork is required as regards the refund.
January 18th, 2011 by Administrator
Although a bankruptcy filing can affect an application for naturalization, there is no immigration status required to file bankruptcy. A debtor is not required to be a citizen or even permanent resident in order to file. Anyone lawfully in the U.S. and having a Social Security number can file for bankruptcy using their home address as their legal residence
January 18th, 2011 by Administrator
As of December 1, 2010, bankruptcy debtors are given more time to complete the second required class, the financial management course. The time has increased from forty-five days after the creditors’ meeting to sixty (60) days after the creditors’ meeting. The notice of this requirement from the court is still sent two weeks before the deadline. Completion of the course should be the last step in a successful Chapter 7 case, as the debtor would then after the two-month post-creditors’ meeting deadline for objections receive their order of discharge.
December 22nd, 2010 by Administrator
A bankruptcy case would be filed in the appropriate District where debtor has their “domicile” or “residence” for 180 days before filing or for a longer part of this 180 day period than another District. “Domicile” or “residence” would be where the debtor lives for most of the time – so a debtor whose family has relocated elsewhere or whose work requires frequent travel out of state would still file in the District of their legal residence. If a person contemplating bankruptcy is moving, they would be well-advised to file their case while they are still in their former address before relocating.
November 24th, 2010 by Administrator
