Bankruptcy News

Make Student Loan Debt Dischargeable in Bankruptcy…Again

04/02/12

Why Not Student Loans? In the famous decision, Local Loan Co. vs. Hunt, the Supreme Court summed up the relatively simple policy behind our bankruptcy laws: the ”honest but unfortunate” debtor is given the opportunity to start over, “unhampered by the pressure and discouragement of preexisting debt.” The idea of periodic debt forgiveness is ancient, appearing numerous [...]

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SEC Kicks Stock Trader Out of Chapter 13 Bankruptcy

03/29/12

Too Much Debt Forces Trader Out of Chapter 13 It’s never a good thing when you owe money to the federal government. While that doesn’t come as a big surprise to most of us, the story of a Michigan stock broker reminds us yet again that Uncle Sam can and will play hard ball. Debtor [...]

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First Circuit: Lender Not Obligated to Foreclose on Home Surrendered in Bankruptcy

03/28/12

Surrendering Property Usually Allows the Debtor to Walk Away From Underwater Property. What Happens When the Bank Refuses to Take Ownership? One of the big advantages for consumers filing bankruptcy is the ability to surrender property they can no longer afford. Through bankruptcy, debtors can avoid a deficiency lawsuit and get rid of personal liability [...]

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Orlando Bankruptcy Attorney Facing Malpractice Suit For Ill-Advised And Unnecessary Chapter 7 Filing

03/20/12

I have been asked by legal malpractice attorneys occasionally to review cases they are considering for legal malpractice claims against bankruptcy lawyers. This week a south Florida attorney asked me to look at  a bankruptcy case filed by an Orlando, Florida bankruptcy attorney whom his client wants to sue for legal malpractice. I declined the engagement because I know the attorney about  to be sued, and I want to maintain a professional relationship.

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Reaffirmation Agreements for Multiple Mortgages Approved by Ohio Court

02/29/12

Reaffirmation Agreements in Bankruptcy Although most consumers file bankruptcy, eliminate their debts and don’t look back, some find it more convenient to keep paying on loans that were in place prior to their bankruptcy. Some go as far as to renew their obligation to pay loans that would have been discharged in bankruptcy. This is [...]

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Can Prospective Employers Deny You Employment Because You Filed for Bankruptcy?

02/06/12

Previously, I discussed the bankruptcy rule that employers cannot fire or otherwise discriminate against employees because they filed for bankruptcy.  However, I also mentioned the difficulty in sometimes proving the causation element between the filing and the discrimination, and the fact that a bankruptcy will still come up on credit checks and other types of [...]

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Wells Fargo Account Freezing Okay in Some States, Not In 9th Circuit

01/30/12

Wells Fargo Freezing Accounts of Bankruptcy Debtors For years, Wells Fargo has taken an unusual and sometimes unpopular stance with regard to the bank account funds that bankruptcy filers have at their branches.  Every evening, Wells Fargo checks the notices of new bankruptcy cases, and freezes the bank accounts of people who have filed bankruptcy [...]

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Are Consumer Bankruptcy Attorneys Biased Towards Chapter 13 Bankruptcy?

01/27/12

Are Consumer Bankruptcy Attorneys Biased? In my experience, absolutely not. In fact, consumer bankruptcy attorneys are among the most dedicated the legal profession has to offer, performing what is sometimes a thankless job for people who are under tremendous stress both financially and emotionally. However, like any large group, there are areas that the consumer [...]

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How Donald Trump Uses Bankruptcy to Become More Successful

01/16/12

How Donald Trump Uses Bankruptcy to Become More Successful It is not uncommon for a client to ask about Donald Trump and other famous large-scale bankruptcies.  How can a rich person like Donald Trump file for bankruptcy, and how does he seem to come out of it more successful than ever?  And is this something [...]

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FICO Chief Talks About Credit After Bankruptcy

01/13/12

People considering bankruptcy are usually concerned about bankruptcy’s effect upon their credit score and what they need to do in order to rehabilitate their credit. I saw an interesting article in  Yahoo Finance about an interview with Mr. Mark Greene, the CEO of Fair Isaac & Co., the managers of your FICO score. 

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