Two new court opinions were recently handed down by the 5th and 10th Circuit Court of Appeals on the issue of whether Social Security income is considered “projected disposable income” under the Bankruptcy Code. Projected disposable income is income that must be paid over to creditors during a 3 to 5 year Chapter 13 payment plan.
In the
Sometimes simpler is not better. Sometimes cheaper is more expensive in the long run. Those thoughts occurred to me after meeting with a new client regarding her financial problems. The client, a 61-year-old single women earning $14 per hour, was struggling to pay $9,000 of credit cards. Her income had declined after a change in
The Nebraska Bankruptcy Court has issued a new opinion extending greater protection to vehicles owned by unemployed debtors. In the case of Angelita Quintero decided on August 22, 2012, the Court expanded the “Tool of the Trade” exemption provided under Neb. Rev. Stat 25-1556(4) which allows up to $2,400 of protection for a vehicle used
I had coffee with a great friend of mine who began his own bankruptcy practice a few years ago. He explained that he recently acquired a very difficult case involving a debtor with a high paying job and he expected a brutal Chapter 13 confirmation process—i.e, he expected the Trustee to demand a significant monthly
Contrary to popular belief, a taxpayer may discharge income taxes in bankruptcy as long as the bankruptcy is not filed too soon after the tax return is filed. As a general rule, you can discharge income taxes that become due more than 3 years before filing bankruptcy, as long as it has been at least
In every state there exists a list of property that is protected from creditor garnishments and property seizures. We call these laws Exemptions. In theory, these laws are designed to prevent creditors from taking away everything a person owns, but in practice few debtors know how to assert their exemption rights and they often
Recently, a new client filed an emergency bankruptcy petition to stop a trial that was scheduled to take place later that week. (An emergency petition is a case where the debtor does not file all the asset, debt, income and expense schedules but must later file those missing schedules within 14 days. When foreclosures and garnishments are
Wells Fargo, Regions Bank, US Bank and other lending institutions have recenty entered the payday loan market through a new banking product called Direct Deposit Advances (DDA). According to professor Alex Mikulich of Loyola University in New Orleans, the banks are offering short-term loans charging interest rates of 365% to bank customers that have
I recently came across an excellent series of videos on the basics of consumer bankruptcy created by the U.S. Courts. There are nine videos in total, and here is the link to watch them all.
The date a Chapter 7 petition is filed is generally the cut off date for measuring the property of a debtor, but two major exceptions exist. Property acquired by bequest, devise or inheritance or marital settlements received within 180 days after the case is filed is also included in the bankruptcy estate. Bankruptcy Code