Bankruptcy Case Law and Analysis

Stripping a second mortgage

08/15/12

Due to the decline in home values over the last few years, many people now find themselves with mortgage balances on their homes that exceed the value of their home. Many homeowners are underwater on their homes because of a second mortgage. Bankruptcy can provide relief to those people by stripping second mortgages provided certain [...]

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Show Me the Note !

07/26/12

The Chapter 13 Trustee for the Middle District of Tennessee (Nashville) is being sued by Bank of America for forcing the mortgage company to produce the underlying note to mortgages, or face being treated as an unsecured creditor in the bankruptcy pot or plan. Nashville Business Journal has the story here. This case will be interesting [...]

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Oregon Court: Mortgage Cram Down Not Allowed Where Plan Calls for Balloon Payment

05/03/12

Chapter 13 bankruptcy has its benefits One of the benefits of filing for Chapter 13 bankruptcy is the ability to modify or “cram down” certain secured debts. For example, a consumer who owes far more than their car is worth has the option of cramming down the car loan to meet the actual value of [...]

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IRS Beats Debtor to the Punch; Assessed Taxes Not Dischargeable

05/01/12

Filing timely tax returns is key if you wish to discharge tax debt in bankruptcy It is possible to discharge income tax debt in bankruptcy, however, not all taxes are eligible and timing plays a very important role. If you’re anticipating tax troubles on the horizon, it is always best to go ahead and file [...]

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Can I be Denied a Job Because of Bankruptcy? The Answer May Hinge on Whether Your Employer is Public or Private

05/01/12

I Need to File Bankruptcy, But I’m Worried About My Job… If you have a job, need to file bankruptcy, and are worried about getting fired because of it, you probably shouldn’t be. The bankruptcy code prevents employers from firing you just because you have filed for bankruptcy. However, if you are a job seeker, [...]

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“Friendly” creditor phone calls and e-mails held to violate the bankruptcy discharge

04/30/12

Collection Efforts Prohibited by Bankruptcy Discharge Once you file for bankruptcy and receive your discharge order from the court, creditors are prohibited from attempting to collect on debts that were included in your bankruptcy, period. Section 524(a)(2) of the Bankruptcy Code explains that a bankruptcy discharge “operates as an injunction against the commencement or continuation [...]

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What Will Happen to My Retirement in Bankruptcy?

04/07/12

Retirement Accounts and Bankruptcy One of the biggest myths about bankruptcy is the idea that you will lose your retirement savings if you file. Generally speaking, this is not true. Section 522 of the Bankruptcy Code allows individual retirement accounts (IRAs) up to $1,000,000 to be exempted in bankruptcy. This means that you can file [...]

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Debt Settlement Attorneys Beware, the Bankruptcy Court She’s a Watchin’

04/02/12

The Bankruptcy Court Scrutinizes Fees Charged by Consumer Attorneys By definition, the assets of bankruptcy debtors are limited. Taking this reality into account, the Bankruptcy Code has historically required debtor attorneys to disclose their fees, and in some cases, prove that what they’ve charged is reasonable. In order to protect debtors who have fallen on [...]

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IRS Sanctioned for Willful Violation of Discharge Order

03/01/12

When Creditors Ignore the Bankruptcy Discharge Creditors who attempt to collect on debts that have been discharged in bankruptcy often find themselves in serious hot water with the Bankruptcy Court.  Bankruptcy judges take the discharge order very seriously and will dish out punishment to those who ignore its prohibitions against continued collection efforts. As Nebraska [...]

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I’m Not Current on May Car Payments, Do I Have Options in Chapter 13?

02/06/12

When you are considering bankruptcy, you have often been behind on payments for months.  You have run up credit card debt, and missed payments on your car and mortgage.  And now, perhaps your lender is threatening to repossess your car.  What are your options in Chapter 13 bankruptcy? In Chapter 13, unlike Chapter 7, you [...]

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