Client Questions

Long Term Care Insurance Proceeds In Bankruptcy

04/14/12

A caller asked me for help with his parent’s debt and judgment. The parent has long term care insurance and is living in an  assisted living facility. The parent is expecting a lump sum reimbursement from the insurance company to reimburse for prior care expenditures. The parent intends to deposit the insurance check in a checking account. The question posed was whether a bankruptcy trustee could claim the long term care payment and whether the proceeds would be protected in the parent’s bank account. 

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Client's Plan To Combine Bankruptcy And Subsequent Asset Protection

04/04/12

A husband and wife consulted with me about a pre-bankruptcy plan. They jointly owned a homestead which had equity. They maintained individual bank accounts and other financial assets. They had over $150k of joint unsecured debt. They wanted to start a new business which would provide their livelihood. The husband was reluctant to file bankruptcy because he may need bank financing; he could obtain financing with his debt level but not with a bankruptcy on his record. 

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When Can Chapter 7 Debtor Sell Or Rent Upside Down Property Listed On Bankruptcy Petition?

06/24/11

One of my bankruptcy clients owns an upside down investment property. The client listed the property as an asset with no equity and stated his intention to reaffirm the debt. If the trustee does not assert an interest in the property then the client will try to find a tenant and use the rent to pay the mortgage.

Forty five days after the trustee meeting the client wants to know when he can or should look for a tenant.

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Does Parent's Chapter 13 Expense Schedule Include His Monthly Payments For Child's Car?

05/09/11

Here’s a relatively simple, but common,  question I was asked by email this past week. The writer makes payments on his daughter’s car titled in his daughter’s name. The writer (the parent) wants to file Chapter 13 bankruptcy and asks whether his monthly payment for his daughter’s car can be included in his expenses so as to reduce the amount of his monthly Chapter 13 plan payment.

The answer depends upon whether the parent signed the loan.

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Can Debtors File Joint Bankruptcy Petition If One Spouse Is In Prison?

04/08/11

A woman called me to ask whether she and her husband could file bankruptcy while her husband was in prison. The woman is concerned about her husband’s inability to attend the trustee meeting. She said her husband could not initiate phone calls, and that the state will not transport him to a bankruptcy meeting or hearing. This woman said another bankruptcy attorney previously told her that she and her husband could not file bankruptcy until her husband was released permanently or on parole.

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