Most people think the bankruptcy process is just about wiping out debt. Indeed, discharging debt is the key mission of bankruptcy.
However, there is another important goal of the bankruptcy process: ensuring fair treatment of creditors. To achieve equality of treatment the bankruptcy law empowers its Trustees to avoid payments that unfairly prefer one creditor
It costs a lot of money to go broke. The cost of filing Chapter 7 bankruptcy in Nebraska is $1,300 to $1,800 on average, and once a complete bankruptcy petition is filed attorneys are bared from collecting unpaid fees. The bankruptcy petition wipes out all debt, including unpaid legal fees associated with preparing a bankruptcy
The Nebraska bankruptcy court discharged student loan debts for a 50-year-old debtor raising a disabled grandson. See In re Mudd. The Court overruled the Department of Education’s argument that a debtor must work two jobs to meet her burden of showing undue hardship.
In discharging the student loans the Court pointed out several factors:
Senator Elizabeth Warren has introduced a law to radically change the consumer bankruptcy practice entitled the Consumer Bankruptcy Reform Act of 2020.
This revolutionary document would make dramatic changes to bankruptcy practice.
The 9th Circuit Court of Appeals is the first court of appeals to rule on the issue of whether a bankruptcy court must approve a lease assumption. See Bobka v. Toyota Motor Credit Corp, 968 F.3d 946 (2020).
What happened?
When Melissa Mather Bobka filed a Chapter 7 she was leasing a Toyota Rav4.
Rambling thoughts on the impact of the 2020 elections on the practice of bankruptcy law.
Unless both Georgia senate runoff races are won by the Democratic Party candidates, it appears that the United States Senate will still be ruled by the Republicans and Mitch McConnell.
Why does this matter? Because if the Democrats take control
Nebraska voters have chosen to cap payday loan interest rates. Ballot box Initiative 428 limits the annual percentage rate on payday loans at 36%.
A Nebraska Department of Banking report indicates that the average annual percentage rate on payday loans in Nebraska is 405%.
However, according to Thomas Aiello of the National Taxpayer Union,
Financial writer Liz Weston (@LizWeston) writes that many people who could benefit from bankruptcy don’t file because of fear and misplaced optimism. See Fear of Bankrutpcy Holds Too Many People Back.
This is the second time that Liz Weston has suggested that more people consider filing bankruptcy (Do Debt Management Plans
A new report entitled Understanding Evictions in Omaha written by Creighton University professors Pierce Greenberg and and Gary Fischer outline the devastating impact evictions have on the Omaha community.
Evictions cause a loss of “social and community capital.” High eviction rates are related to increasing crime rates and cause poor educational performance in schools. They
COVID-19 is a wrecking ball destroying small Nebraska businesses, but at some point the medical crisis will end and the debt crisis will take off.
So far the damage has been mitigated by programs such as the Paycheck Protection Plan, but business revenues have dropped dramatically and consumer spending is not likely to return