chapter 7

Wells Gone Wild: Freezes Debtor’s IRA Account

05/02/13

I have reported previously on this blog that Wells Fargo Bank often will freeze bank accounts of its depositors who have filed bankruptcy even if the debtor claims the money in the account as exempt property on their bankruptcy petition. Wells Fargo bank often requires a letter from the bankruptcy trustee to give the debtor, and even his non-debtor spouse, access to the debtor’s money.

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Do people get sued by the second mortgage after a short sale?

04/30/13

Saw three couples this month who needed to file bankruptcy, because they were getting sued–garnished in one case–by the second mortgage after a short sale.

It was surprising that they were surprised.   At the peak of the crisis, for or five years ago, second mortgages would take what they could get at a short sale and let the rest of it go.  But they don’t often do that anymore.  (At least not without intense negotiation.  I’ve seen it once in the last year.)

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Published Study About Student Loan Discharge

04/15/13

Most people filing bankruptcy understand that Chapter 7 bankruptcy will not discharge student loan debt. In fact, the bankruptcy law provides an exception to the general rule of non-dischargeability when the debtor can demonstrate that the student loan causes an undue hardship on his post-bankruptcy recovery.

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Stolen Property Recovered After Bankruptcy Is Filed: Who Keeps It?

04/03/13

Prior to his filing Chapter 7 bankruptcy one of my clients was victim of a home break-in and theft. Valuable personal property was stolen. A police report was filed. After filing the petition, the police recovered some property and the thief was ordered to pay restitution to my bankruptcy client.

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Military Pay And The Chapter 7 Bankruptcy Means Test

04/01/13

Military Debt

The City of New Orleans, where I practice as a consumer bankruptcy attorney, is home to all branches of the United States Armed Forces.

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Is Involuntary Bankruptcy Petition Possible Before Creditor’s Judgment?

03/29/13

One of my clients says his creditors have threatened to force him into Chapter 7 bankruptcy. The client is in default of a loan agreement over $1 million, but the creditor has not yet filed a lawsuit. The client’s recently purchased Florida homestead would not be exempt in a bankruptcy case filed in the near future.

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Are Gambling Debts Dischargeable in Chapter 7 Bankruptcy?

03/20/13

A debtor who borrows money on credit cards in order to gamble the money may still discharge these credit card debts in Chapter 7 bankruptcy according to the court decision in In re Rembert.

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Is Payment of Past Due Secured Debt A Bankruptcy Preference?

03/02/13

A debtor owes money to his parents, and his parents long ago recorded a mortgage on the debtor’s real property. The debtor was behind in the note payments to the parents. The debtor is concerned about that paying his loan to his parents would be an improper preferential payment in a Chapter 7 bankruptcy proceeding.

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Liberal Test Applied to Impose Fee Award for Creditor’s Unsuccessful Discharge Objection

02/25/13

By: Lauren Michalski

St. John’s Law Student

American Bankruptcy Law Review Staff

 

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Brunner Test Reexamined in Western District of New York

02/25/13

By: Shane Malone

St. John’s Law Student

American Bankruptcy Institute Law Review Staff

 

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