Blogs
Bankruptcy Code Section 523(a)(6): A discharge under section 727, 1141, 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt . . . for willful and malicious injury by the debtor to another entity or to the property of another entity.
A federal jury has awarded $28.1 million to six plaintiffs (the “Beatrice 6”) for a reckless investigation and manufacturing false evidence conducted by the Gage County Sheriff’s department. The plaintiffs spent 20 years in prison for the 1985 rape and murder of Helen Wilson, but DNA testing conducted in 2008 revealed that the murder was actually committed by another individual, Bruce Allen Smith.
Following their release from prison, the plaintiffs brought suit in Nebraska federal court for the Sheriff Department’s building a case on coerced false confessions.
As a result of this judgment, Gage County has recently signed contracts with law firms to possibly file a Chapter 9 bankruptcy case. Insurers for the county have denied coverage.
The interesting and somewhat unusual aspect of this potential bankruptcy case is that Gage County was not in any financial distress prior to the entry of this judgment. The bankruptcy is contemplated for the sole reason of denying payment to victims of the County’s intentional wrongdoing.
Generally, damages sustained due to “willful and malicious” injuries are not dischargeable under bankruptcy code Section 523(a)(6), but that provision of the law does not apply to Chapter 9 cases involving municipalities and public subdivisions.
So, Gage County may file bankruptcy for the sole purpose of denying payment for the intentional, willful and malicious damages inflicted on the Beatrice 6.
Although the judgment may be subject to discharge, there is certain to be objections to any plan of reorganization filed that proposes to pay less than the full court judgment. The county still must prove it’s reorganization plan is filed in good faith and that it cannot propose to pay the entire judgment. In the Detroit, Michigan bankruptcy case it was apparent that the city could not tax itself into solvency, but what about Gage County? Could the county structure full payment of the judgment if the county raised real estate taxes? By what percentage would the levy have to increase to pay the judgment?
Gage County has land valued at $3 billion in 2015 according to the Nebraska Department of Revenue. The county collected $9 million in real estate taxes last year on a levy rate of 29.7 cents per $100 of land value. Paying the entire $28.1 million judgment in one year would be impossible, but what about paying off the debt over 10 to 20 years?
If paying off the debt in full over 10 to 20 years is possible with only a modest increase of the tax levy, why would a bankruptcy court enable taxpayers of Gage County to avoid this obligation in a Chapter 9 plan regardless of whether the debt is subject to discharge? How would that type of bankruptcy plan meet the burden of proposing a plan in “good faith?”
It should be an interesting year in Nebraska bankruptcy court for 2017.
Image courtesy of Flickr and Dave Nakayama
Can I Cancel the Homeowners Insurance—I’m Moving Out Are you giving up your house as part of your bankruptcy? If you are, can you cancel the homeowners insurance? I say, No. You homeowners insurance does two big things. First, it would pay to rebuild your house after a fire. If you’re giving the house back […]The post Can I Cancel My Homeowner Insurance—I’m Moving Out by Robert Weed appeared first on Robert Weed.
A Better Year Awaits As the year comes to a close, people look to the upcoming year with optimism. What can make next year better than the current year? For some this might mean a better relationship, a better job, a healthier lifestyle, and for some a financial fresh start. For those that have struggled+ Read More
The post Looking Ahead To Next Year With Optimism appeared first on David M. Siegel.
Many bankruptcy cases involve adversary proceedings in which creditors seek to have certain debts deemed nondischargeable. The United States District Court for the Eastern District of Michigan (the “District Court”) recently considered, on appeal, whether the Bankruptcy Court properly held that a debt owed by a debtor (the “Debtor”) to the State of Michigan Unemployment Insurance Agency (the “Agency”) is dischargeable in a Chapter 13 case.1 Read More ›
Tags: Chapter 13, Eastern District of Michigan
Many bankruptcy cases involve adversary proceedings in which creditors seek to have certain debts deemed nondischargeable. The United States District Court for the Eastern District of Michigan (the “District Court”) recently considered, on appeal, whether the Bankruptcy Court properly held that a debt owed by a debtor (the “Debtor”) to the State of Michigan Unemployment Insurance Agency (the “Agency”) is dischargeable in a Chapter 13 case.1 Read More ›
Tags: Chapter 13, Eastern District of Michigan
Introduction Of Debtor This is the bankruptcy case study for Ms. R., who resides in Berwyn, Illinois. She is here to seek bankruptcy protection and to eliminate the struggle that she has been in for some time regarding debt. To determine whether or not she can file and get the relief needed, we need to+ Read More
The post Bankruptcy Case Study appeared first on David M. Siegel.
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
The original post is titled Mark M , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.
The original post is titled Jhon K , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Maybe you don’t think it’s a problem. Maybe you don’t think it’s that big of a problem. (“It” being your financial situation) You’re falling behind on bills, making partial payments to creditors, and robbing Peter to pay Paul. But, it’s not that big of a deal. You’ll catch up soon, right? “Right” is most likely “Wrong” and you’ll realize you are wrong when it’s too late. You can fix the problem of rising debt before it grows out of control by knowing the signs. Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn, lists 7 signs you’re living beyond your means. Read them below.
7 Signs You’re Living Beyond Your Means
1. You Constantly Carry a Credit Card Balance. There is no problem at all with using a credit card to pay for items. However, you should be paying off the balance each month. If you carry a balance month to month, you’re spending more than you can afford. You’ll need to make a double, triple, or quadruple payment to get yourself out of the red.
2. You Can’t Pay Your Bills on Time. You may have good intentions, but if you don’t have enough money in the bank to pay your bills on time, then you are living beyond your means. Elkhorn bankruptcy lawyer, Shannon Wynn, suggests reexamining your spending habits. You may need to forego some luxuries such as nail salon visits, morning coffee runs, or weekend pizza and drinks. It’s imperative that you cut back now and get your bills under control before your bills are out of control.
3. You’re Not Saving. You should be able to pay all your bills on time each month and still save at least 5% of your income, 10%-15% would be even better. If you aren’t saving at all, or you are constantly robbing your savings account to pay bills, then you need to budget.
4. You’ve Been Denied Credit. Even if you think you can handle the payments, your existing debt may be too high of a risk for a creditor to lend to you. Your current credit score may be below 700 points. You may pay bills on time, but have nothing left at the end of the month. You may pay bills, but not on time, and some end up in collections dinging your credit score. You may be piling up debt and not able to pay any of it off. Whatever the situation, many factors go into being denied credit. Being denied new credit is a major sign that you are living beyond your means.
5. Your Credit Cards Are Maxed Out. Having a credit card for emergencies is one thing. Maxing out every credit card you own is another. Elkhorn, Wisconsin bankruptcy attorney, Shannon Wynn, says possessing several credit cards with no available money left is a major concern. Missing just one payment can put you over the credit card limit due to the late charges and interest fees. Exceeding the credit card limit can really hurt your finances. How can you afford the monthly payment? To top it off, your credit report is taking a beating.
6. More Than 28% of Your Income Goes to Housing. Calculate what percentage of your monthly gross income goes toward your mortgage, property taxes, and home owners’ insurance or rent and renters’ insurance. If it’s more than 28% of your gross income, then you are more than likely in over your head. 28% is the magic number most lenders use as a guideline to ensure a person can properly pay for their home, plus live a comfortable lifestyle. If you are in over 28%, you should consider downsizing to a more comfortable price range.
7. You Don’t Budget. Elkhorn bankruptcy attorney, Shannon Wynn, states that having a budget in place is one of the most important pieces to obtaining financial freedom. Most people have never made an honest assessment of their spending. Not budgeting is a tell tale sign that you may be living beyond your means. Attorney Shannon Wynn recommends that you monitor your spending for a couple months and see where your money is really going. Then, you can set up a budget, knowing full well where you can cut back. Be sure to budget for savings, too, not just monthly bills.
Contact Elkhorn, Wisconsin Bankruptcy Attorney, Shannon Wynn
If you are guilty of even one item on the above list, you need to take a second look at your finances. If you feel now is the time to consider bankruptcy options, feel free to contact Attorney Shannon Wynn for a free bankruptcy consultation. You can reach Wynn at Law, LLC by phone at 262-725-0175. Wynn at Law, LLC has bankruptcy offices located in Lake Geneva, Delavan, Muskego, and Salem, Wisconsin.
Find out if you qualify for bankruptcy.
Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC
.
It’s Free. It’s Easy.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
Maybe you don’t think it’s a problem. Maybe you don’t think it’s that big of a problem. (“It” being your financial situation) You’re falling behind on bills, making partial payments to creditors, and robbing Peter to pay Paul. But, it’s not that big of a deal. You’ll catch up soon, right? “Right” is most likely “Wrong” and you’ll realize you are wrong when it’s too late. You can fix the problem of rising debt before it grows out of control by knowing the signs. Elkhorn, Wisconsin bankruptcy lawyer, Shannon Wynn, lists 7 signs you’re living beyond your means. Read them below.
7 Signs You’re Living Beyond Your Means
1. You Constantly Carry a Credit Card Balance. There is no problem at all with using a credit card to pay for items. However, you should be paying off the balance each month. If you carry a balance month to month, you’re spending more than you can afford. You’ll need to make a double, triple, or quadruple payment to get yourself out of the red.
2. You Can’t Pay Your Bills on Time. You may have good intentions, but if you don’t have enough money in the bank to pay your bills on time, then you are living beyond your means. Elkhorn bankruptcy lawyer, Shannon Wynn, suggests reexamining your spending habits. You may need to forego some luxuries such as nail salon visits, morning coffee runs, or weekend pizza and drinks. It’s imperative that you cut back now and get your bills under control before your bills are out of control.
3. You’re Not Saving. You should be able to pay all your bills on time each month and still save at least 5% of your income, 10%-15% would be even better. If you aren’t saving at all, or you are constantly robbing your savings account to pay bills, then you need to budget.
4. You’ve Been Denied Credit. Even if you think you can handle the payments, your existing debt may be too high of a risk for a creditor to lend to you. Your current credit score may be below 700 points. You may pay bills on time, but have nothing left at the end of the month. You may pay bills, but not on time, and some end up in collections dinging your credit score. You may be piling up debt and not able to pay any of it off. Whatever the situation, many factors go into being denied credit. Being denied new credit is a major sign that you are living beyond your means.
5. Your Credit Cards Are Maxed Out. Having a credit card for emergencies is one thing. Maxing out every credit card you own is another. Elkhorn, Wisconsin bankruptcy attorney, Shannon Wynn, says possessing several credit cards with no available money left is a major concern. Missing just one payment can put you over the credit card limit due to the late charges and interest fees. Exceeding the credit card limit can really hurt your finances. How can you afford the monthly payment? To top it off, your credit report is taking a beating.
6. More Than 28% of Your Income Goes to Housing. Calculate what percentage of your monthly gross income goes toward your mortgage, property taxes, and home owners’ insurance or rent and renters’ insurance. If it’s more than 28% of your gross income, then you are more than likely in over your head. 28% is the magic number most lenders use as a guideline to ensure a person can properly pay for their home, plus live a comfortable lifestyle. If you are in over 28%, you should consider downsizing to a more comfortable price range.
7. You Don’t Budget. Elkhorn bankruptcy attorney, Shannon Wynn, states that having a budget in place is one of the most important pieces to obtaining financial freedom. Most people have never made an honest assessment of their spending. Not budgeting is a tell tale sign that you may be living beyond your means. Attorney Shannon Wynn recommends that you monitor your spending for a couple months and see where your money is really going. Then, you can set up a budget, knowing full well where you can cut back. Be sure to budget for savings, too, not just monthly bills.
Contact Elkhorn, Wisconsin Bankruptcy Attorney, Shannon Wynn
If you are guilty of even one item on the above list, you need to take a second look at your finances. If you feel now is the time to consider bankruptcy options, feel free to contact Attorney Shannon Wynn for a free bankruptcy consultation. You can reach Wynn at Law, LLC by phone at 262-725-0175. Wynn at Law, LLC has bankruptcy offices located in Lake Geneva, Delavan, Muskego, and Salem, Wisconsin.
Find out if you qualify for bankruptcy.
Click Here to Get a Free Bankruptcy Assessment
from Wynn at Law, LLC
.
It’s Free. It’s Easy.
*The content and material on this web page is for informational purposes only and does not constitute legal advice.
The post 7 Signs You’re Living Beyond Your Means appeared first on Wynn at Law, LLC.
Updated daily, this blog will keep you informed on the latest bankruptcy news! 
Learn more about how Bankruptcy works and what you need to know.