Section 101(36) of the Bankruptcy Code defines the term “judicial lien” as a lien “obtained by judgment, levy, sequestration, or other legal or equitable process or proceeding.” Both Chapter 7 and Chapter 13 bankruptcy can remove judicial liens that have been placed on your home by creditors “to the extent that it impairs an exemption”…Read more
Will Bankruptcy After a Short Sale Stop My Bank From Suing Me?
More and more, homeowners are looking for ways to get out from under mortgages that are secured by homes that are worth far less than they owe to the bank. Some are simply walking away from their homes and letting the banks foreclose. Others are trying to sell their home by short sale. Whether you…Read more
8th Circuit Bankruptcy Appellate Panel Decision – In re: Johnson
When a confirmed Chapter 13 plan is modified to reduce payments under 11 U.S.C. Sec. 1329(a) due to substantial change in financial circumstances, the modification must correlate to the changes in circumstance; where debtors lost $1,240 in wages and salary, they could not reduce their monthly payment from $1,890 to $100, and the bankruptcy court…Read more
7th Circuit Court of Appeals Bankruptcy Decision – In re: Resource Technology Corporation
This appeal presents a novel issue: the priority of a claim against the debtor’s estate in a Chapter 7 bankruptcy for damages arising from a tort committed by the debtor during the interval between the appointment of the trustee in bankruptcy and the liquidation a few months later of the bankrupt’s assets that had been…Read more
Should I File Bankruptcy After a Short Sale Of My Home?
It shouldn’t surprise you to learn that many of the people I help have had lenders foreclose on their homes. Some of them have simply walked away from the mortgage, a calculated decision to stop paying their mortgage because they owe so much more than their home is worth. Others have gotten their lenders to…Read more
The Best Thing You Can Do After You File Bankruptcy
Once my client’s case is closed by the bankruptcy court, I hope I never see him again. The primary purpose of bankruptcy is to provide a fresh financial start, and my hope for all of my clients is that they take advantage of this new start. That requires work on their part, and the one…Read more
Should I File Bankruptcy After Christmas?
Bankruptcy attorneys’ phones don’t ring as much around this time of the year. I don’t have any hard and fast data to back me up, but I can think of a few reasons why people wait until the beginning of the new year to file their bankruptcy petition. First, they’re worried they’ll lose their tax…Read more
8th Circuit Bankruptcy Appellate Panel Decision – In re: Hecker
Trustee Randall L. Seaver appeals the January 19, 2011 summary judgment of the bankruptcy court in favor of New Buffalo Auto Sales, LLC, Maurice J. Wagener, and Palladium Holdings, LLC. The bankruptcy court correctly concluded judgment holders pre-petition judgments did not constitute avoidable pre-petition transfers under Bankruptcy Code Section 547(b). Bankruptcy court erred in concluding…Read more
Are You Being Honest About How Much Debt You Owe?
I came across an article that I wanted to share in the New York Times. They are reporting on a new study by the Federal Reserve Bank of New York that shows that individuals are significantly underreporting how much debt they have. According to the study, households underreport their debt by an average of one…Read more
New Colorado Median Income Numbers for November 2011
New Colorado state median income numbers go into effect on November 1, 2011. The numbers come from the U.S. Census Bureau. These numbers are especially important for people considering Chapter 7 bankruptcy. Individuals who want to file Chapter 7 bankruptcy must first pass a “means test” which requires their annual income to fit within the…Read more
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