Is Bankruptcy for a Business a Good Thing?
As the economy of the United States continues to grow, and access to lines of credit are freeing up, new businesses are starting to proliferate. Personally, I think that is a great sign. Unfortunately, however, the reality is that many new businesses fail. Whether it was due to poor planning, inefficient distribution of resources and […]
KEEP READING . . .Case Update: Liability of spouses on debts when one party files for bankruptcy
You get married. You exchange vows – until death do us part; in sickness and in health; in lack and in abundance. BUT what about when one spouse files for bankruptcy and the other doesn’t?
KEEP READING . . .Why filing for bankruptcy is a lot like having an ileostomy . . .
In about a month, it will have hit the one-year anniversary of my having to have an emergency colon resection and ileostomy installed. I understand that this is fairly graphic and personal, but bankruptcy could feel the same way for those who are thinking about it.
KEEP READING . . .A Mortgage Bank may LOSE its right to foreclose
Can a mortgage bank lose its right to foreclose on real estate that is in foreclosure? This case comes out of the United States District Court, District of Massachusetts. The underlying facts are fairly commonplace. The debtor-homeowner bought a house in Massachusetts and, at the time of purchase (May 28, 2004), executed a Note and […]
KEEP READING . . .Case Review: Lien Stripping in Chapter 13 cases are SAFE here in NY
For most people, bankruptcy law isn’t the most newsworthy thing. For bankruptcy practitioners like myself, I try to pay attention to EVERYTHING that’s going on, including in different courts around the country. (It’s a good way to learn new arguments, techniques and theories to better serve my clients.) Most bankruptcy practitioners that represent consumer debtors […]
KEEP READING . . .Can Bankruptcy Stop Eviction?
This case comes out of our own Eastern District of New York. Sometimes, people file for bankruptcy on an emergency basis to ward off a pending foreclosure or eviction. If you can avoid a last-minute filing, it helps so that necessary parties are provided notice. Although the filing of bankruptcy triggers the automatic stay (in […]
KEEP READING . . .Is Social Security Considered Disposable Income in Chapter 7?
I was in court last week on a case when the trustee and I entered into a discussion about social security income. Based on 42 U. S. C. Sec. 407(a), which states that monies paid pursuant to the Social Security Act “shall be subject to execution, levy, attachment, garnishment, or other legal process, or to […]
KEEP READING . . .What Does A Bankruptcy Discharge Mean?
It has happened a number of times to me. A client comes in inquiring about bankruptcy. Often, one of the specific motivations for inquiring about bankruptcy is that the potential debtor owns real property somewhere (PA, FL) that is ridiculously underwater. They have tried short selling the property, to no avail. The lender will not […]
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