Bankruptcy Law Network
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We are a diverse and unaffiliated group of bankruptcy lawyers and consumer advocates. What brings us together is our common devotion to you, the consumer.
Bankruptcy Law Network
3y ago
Every September 20th on National Bankruptcy Day I like to remind people about their bankruptcy superpower, in a whimsical way.
People who file Chapter 7 Bankruptcy get a fresh start that lets them make financial decisions faster than a speeding bullet.
Having money at the end of the day makes your wallet more powerful than a locomotive.
Bankruptcy allows you to discharge tall debts in a single case.
Bankruptcy gives you powers and abilities far beyond those of mortal man.
You can change the course of mighty foreclosures and repossessions; and
you can tear up garnishments with your bare hands ..read more
Bankruptcy Law Network
3y ago
The Covid-19 pandemic has devastated small (and medium and large) businesses. Closures. Limited hours. Fewer customers.
And while on-line ordering may work well for some companies, you can’t fix a plumbing problem, or install drywall, or serve an omelette remotely.
SBA loans may help bridge the gap. But what can you do when the money runs out? According to a survey from Goldman Sachs, small businesses have largely exhausted their federal funding and are starting to lay off workers, with many worrying about having to shut their doors for good. I’m assuming you’ve already brainstormed ways to ma ..read more
Bankruptcy Law Network
4y ago
When you borrow money against a vehicle the lender places a lien on the Certificate of Title. This is called taking a security interest, where the vehicle becomes collateral, guaranteeing you will repay the loan. A security interest allows the lienholder to repossess the vehicle if you do not make your payments on time. That seems fair.
What happens after you pay all the money you owe?
In Illinois, the lienholder has 21 days to release its lien and give you a clean title, or that lienholder has to pay you $150 damages, plus the attorney fees you incur enforcing your rights. That is not on ..read more
Bankruptcy Law Network
4y ago
Do you ever wonder how bad rumors get started? Bad headlines don’t help.
Congress is considering the Honoring American Veterans in Extreme Need (HAVEN) Act. Part of the HAVEN Act will correct an injustice suffered by many U.S. vets who receive service-related disability income. In bankruptcy law, if you receive disability from Social Security, it is not “counted” in the Means Test. But if the disability check comes from the military, then it does count. Even though veteran benefits have all the same protections as Social Security otherwise. That’s not fair. The HAVEN Act, among other th ..read more
Bankruptcy Law Network
4y ago
Photo: Nina Konstantinidou
Last week, we outlined the ABI Commission on Consumer Bankruptcy’s proposals to improve the fresh start in bankruptcy by expanding the discharge of more student loans. But the Commission recommended Congress make other changes to help people burdened with student loan debt.
In particular, the Commission recommended that student loans be given priority treatment. In bankruptcy, when the trustee is paying creditors, either in a chapter 7 or chapter 13 case, certain debts get paid ahead of others. These are called “priority claims.” Usually these are things societ ..read more
Bankruptcy Law Network
4y ago
The American Bankruptcy Institute’s Commission on Consumer Bankruptcy issued its final report last week. This is the first in a series of articles about those recommendations. To see more information about the Commission, follow this link.
As a commissioner, I can tell you that the subject of student loans in bankruptcy was probably the single most popular topic of suggestions to and discussions within the Commission. And the Commission took that to heart.
Most critically, we recommended bankruptcy law be re-written to allow for more student loans to be discharged — or paid — in bankruptcy ..read more
Bankruptcy Law Network
4y ago
Can you file a Chapter 13 debt consolidation case if you are self employed? Yes, you can but expect the process to be more difficult, burdensome and expensive than it would be if you are a salaried employee.
Chapter 13 works best when your income and expenses are steady and consistent. When you file Chapter 13 you will be proposing a repayment plan to the bankruptcy judge. Your plan modifies the rights of your creditors and it must meet all the requirements of the bankruptcy code.
When you file your case, a Chapter 13 trustee will be assigned to verify the information you submit and to investi ..read more
Bankruptcy Law Network
4y ago
A chapter 7 trustee was allowed to pursue a medical malpractice claim that the debtor had failed to list in her papers, even where the trustee and the debtor had agreed to split the lawsuit proceeds.
In this New Hampshire case, Alward v. Johnston, 2017-0080 (N.H. Dec. 21, 2018), the state’s supreme court disagreed with other courts that the debtor’s conduct in omitting the asset should be imputed to the bankruptcy trustee.
The chapter 7 debtor had consulted with two different law firms before filing bankruptcy. Each firm declined to help her pursue a malpractice case based on failed bac ..read more
Bankruptcy Law Network
4y ago
Now more than ever clients and ordinary people are trying to save money any way they can. People will seek out obvious ways to save such as eliminating eating out or for me, stop coffee purchases. But what about looking for not so obvious ways to save money? Gas is one of those necessary expenses we think we have no control over the price we pay. But, that may not be true.
There is a service called GasBuddy. It is a free application you may download on your phone or use through their website to check the lowest price of gas around you.
If you use the phone application it will collect data. S ..read more
Bankruptcy Law Network
4y ago
Rescission, what is it and what does it have to do with bankruptcy? 11 U.S.C. § 524(c)(4) outlines the basis for rescission but it really does not identify what rescission does for you. A rescission breaks or cancels a promise to pay and it is completely legal IF performed according to 11 U.S.C. § 524(c)(4). Clear as mud? Let’s break it down even further.
When you file for Chapter 7 relief you may be asked to reaffirm on such things as a house or vehicle note. There are reasons you may or may not want to reaffirm those notes but for the purposes of this article, we will presume you have reaffi ..read more