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Normally your bankruptcy estate consists only of the property you own on the date of the filing of your bankruptcy case. Certain property though that you acquire after filing for bankruptcy are part of your bankruptcy estate. Supplemental schedules need to be prepared and filed with the Bankruptcy Court.

Certain Property Needs to be Disclosed

In chapter 7 and chapter 13 bankruptcy, you are generally under the obligation to notify the Bankruptcy Court and your bankruptcy trustee if you acquire any of the following items within 180 days of the filing of your bankruptcy petition: 
          a. inheritances          b. divorce property settlements
          c. proceeds of life insurance

In such event, you should advise your bankruptcy attorney at once so that he may properly advise you and prepare the proper schedules that need to be prepared and filed with the Bankruptcy Court. If you are in a Chapter 7 case, you may consider converting the case to Chapter 13.

Causes of Action - Including Personal Injury and Employment Cases
In a Chapter 13case, you should also file supplementary schedules in your bankruptcy case if you acquire cetain types of property, including actual or potential causes of action (ie. including personal injury and employment cases) that you acquire at any time after the bankruptcy case is filed. This is very important, as if it is not disclosed in a supplemental schedules, you may be barred from pursuing the cause of action ("judicial estoppel").
Jordan E. Bublick - Miami Bankruptcy Lawyer - North Miami & Kendall Offices - (305) 891-4055 - www.bublicklaw.com

Is it a violation of the Fair Debt Collection Practices Act for a creditor to file a Proof of Claim in a bankruptcy case on an old debt that is no longer collectible by virtue of a Statute of Limitation?  Ever since the 11th Circuit Court of Appeals ruled in Crawford vs. LVNV Funding  that such claims do constitute FDCPA violations many local bankruptcy attorneys have been eager to find out how the 8th Circuit would rule.
Why so such anticipation?  Because large debt buyers such as Midland Funding, Portfolio Recover and Asset Acceptance Corp file hundreds of thousand of claims on such time-barred debts annually and if the 8th Circuit would have joined with the 11th Circuit in declaring such claims illegal, bankruptcy attorneys would have rushed in with thousands of FDCPA complaints against these companies.  In almost every Chapter 13 bankruptcy case there are a handful of claims filed on expired debts and it would be easy to sift through files to line up FDCPA cases ripe for litigation.  Like Boomer Sooner ready to launch his wagon in the Oklahoma land rush, bankruptcy attorneys have waited for a signal to launch litigation against debt collectors filing claims on expired debts.
In Gatewood vs. CP Medical LLC, the 8th Circuit BAP has ruled that no FDCPA violation occurs by merely filing a claim on a time-barred debt.

Filing in a bankruptcy case an accurate proof of claim containing all the  required information, including the timing of the debt, standing alone, is not a prohibited debt collection practice.”

The court reasoned that bankruptcy debtors are able to object to the time-barred claims in the bankruptcy process and observed that debtors are generally represented by attorneys who are duty-bound to object to invalid claims, so filing a claim on an expired debt does not overly burden a debtor.  And, of course, the unspoken deciding factor is that the court did not want to encourage a tidal wave of FDCPA bankruptcy litigation had it ruled otherwise.
What are the consequences and implications of this decision?

1. Debt buyers will continue to flood the court with expired debt claims as far as their databases can go.  I’m seeing claims for debts where no payments have been made in over 10 to 15 years.
2. The payout of legitimate claims will decrease since the deluge of claims from time-expired debts will dilute the payment that would have been made to enforceable debts.
3. Debtors get stuck with footing higher legal fees necessary to object to these expired debts.
4. Student Loan debtors may get stung when time-barred private student loan claims start receiving payments because their attorney failed to object to the claim.  Does a payment received through a chapter 13 plan on an expired student loan debt reset the statute of limitations?
5. Resetting the Statute of Limitations.  Does a payment on an expired debt through a Chapter 13 payment plan reset the statute of limitations?  Normally a voluntary payment will reset the statute of limitation.  Does a payment in a Chapter 13 constitute a voluntary payment for purposes of counting the last payment date on an expired debt?  I really don’t know.  Debtor’s counsel cannot just assume that allowing a claim on an expired debt is harmless since such payments may reset the statute of limitations clock.

Although I can understand the 8th Circuit’s reluctance to encourage an avalanche of FDCPA litigation, in the long run this may be an questionable policy.  Sending debt  buyers a clear signal that dead debts should remain dead would reduce time spent by court personnel in managing expired claims and thereby increase the payout to legally enforceable debts.  Debtors and their attorneys now must spend additional time and money reviewing and objecting to claims that never should have been filed in the first place.  In the end, the court may have just created more of that litigation it was seeking to avoid.

The U.S. Department of Education, as part of a continuing public relations effort to look like it’s trying to help federal student loan borrowers, on July 7, 2015 announced an enormous expansion of the highly-regarded Pay-As-You Earn repayment program.
Under the expansion, an additional six million federal loan borrowers would be able to cap their federal student loan payments at 10% of their disposable adjusted gross income.
Unpaid balances would be discharged after the borrower makes 20 years of payments if the borrower does not owe any money for graduate school, and after 20 years of payments if any federal student loans are for graduate studies.
That’s a big win for borrowers now ineligible for PAYE. For many, the only option is Income-Based Repayment – which calls for payments of 15% of disposable adjusted gross income and discharge after 25 years.
Until now, Pay-As-You-Earn was available only to a limited number of federal student loan borrowers based on the age of their loans. The new version would lift age requirements and make the repayment option available to all borrowers with a Direct Loan.
In 2014, President Obama issued a Presidential Memorandum directing the U.S. Department of Education to propose regulations to ease the burden of student loan debt by expanding repayment options available to borrowers and building awareness of income-driven repayment plans.
“A college education is one of the most important investments that Americans can make in their futures. Unfortunately, for too many hardworking families, it feels like a higher education is simply slipping out of reach,” said U.S. Secretary of Education Arne Duncan. “This proposal is an investment in our economy’s future that provides targeted benefits to even more borrowers, so they can stay current on their loans and furthers our commitment to lifting the burden of crushing student loan debt.”
Sounds great, right?
For some, it is. But for student loan borrowers who are married the changes will be financial catastrophic.
Under current regulations if a married borrower files a separate Federal income tax return, the Education Department uses only the borrower’s adjusted gross income (AGI) to determine the amount due under Income-Based Repayment, Pay-As-You-Earn, or any other income dependent repayment plan. This works out well for married people who don’t mix finances with their spouses.
The new regulations, to be published in the Federal Register on July 9, 2015, will provide as follow:

in the case of a married borrower filing a separate Federal income tax return, use the adjusted gross income (AGI) of both the borrower and the borrower’s spouse to determine whether the borrower has a partial financial hardship (PFH) and to calculate the monthly payment amount. A married borrower filing separately who is separated from his or her spouse or who is unable to reasonably access his or her spouse’s income is not required to provide his or her spouse’s AGI.

See what they did there? They gave with one hand, and took away with the other.
Anyone who wants to reduce their payments under the new version of Pay-As-You-Earn will be forced to use their spouse’s adjusted gross income as well as their own. For people who are married to someone with a higher income, that means 10% of AGI will be a lot higher than under current calculations.
The only options for married borrowers who want to reduce their federal student loan payments will be to get separated or somehow convince the Education Department that they are unable to reasonably access their spouse’s income.
The second option will likely be difficult, which will likely lead to millions of federal student loan borrowers moving out of the marital home in an effort to keep their payments under control.
Even worse, I can see people getting divorced so they can live together yet still keep their finances separate for the purposes of student loan repayment.
If you think this new payment option is a bad idea, you should submit comments within 30 days of the date of publication of the proposed regulations. Submit your comments through the Federal eRulemaking Portal or via postal mail, commercial delivery, or hand delivery. Comments can’t be submitted by fax or by email or those submitted after the comment period.
Federal eRulemaking Portal: Go to www.regulations.gov to submit your comments electronically. Information on using Regulations.gov, including instructions for accessing agency documents, submitting comments, and viewing the docket, is available on the site under “Are you new to the site?”
Postal Mail, Commercial Delivery, or Hand Delivery: The Department strongly encourages commenters to submit their comments electronically. However, if you mail or deliver your comments about the proposed regulations, address them to Jean-Didier Giana, U.S. Department of Education, 1990 K Street, NW., room 8055, Washington, DC 20006–8502.

The post Education Department To Screw Married Student Loan Borrowers With New Payment Options appeared first on Bankruptcy and Student Loan Lawyers - 866.787.8078.

Did you know that 51% of Americans between the ages of 55 and 64 do not have a Last Will and Testament? What is worse is that 62% of Americans ages 45-54 have not even drafted a Will. Whether we like it or not, tragedy can strike at any time, at any age. None of us live forever. When 64% of the public does not have a Last Will and Testament, it is easy to say that most of our wishes will not be granted after our deaths. You can change that by visiting with our Lake Geneva Estate Planning Lawyer, Shannon Wynn.
Lake Geneva Estate Planning Lawyer, Shannon Wynn, will help you create a Last Will and Testament. When discussing your last wishes with a lawyer, the task becomes easier than you think. All of your questions will be answered. Legally declaring your wishes, in the unfortunate event of your death, will help give you peace of mind. Below we have outlined some important reasons as to why you absolutely need a Last Will and Testament.

Lake Geneva Estate Planning Lawyer Explains Why You Need a Last Will and Testament
1. Without a Last Will and Testament, the government will make all decisions regarding your estate. This includes who receives your property and who will raise your children.
2. You have control over who raises your children. As a parent, it is imperative to possess a Last Will and Testament if you want a say so in who will raise your children after your death.
3. You decide who obtains your property and possessions. Property bequeathed in a Will does not have to be of high monetary value. If you have photographs, knickknacks, paintings, clothing, tools or furniture, these can all be bequeathed to certain family members or friends. Maybe your niece always wanted that blue afghan you made. If you want to make sure she gets it, you need to have a Last Will and Testament. Otherwise, there could be family disputes after your death.
4. Your pet will have a safe home. Never assume your family will automatically take in your pet. Many pets end up in shelters after the death of their owner. The majority of these shelters have a brief holding period of a couple days, and then your beloved pet will be euthanized. You need to arrange for a guardian of your pet. It would also be a good idea to set aside some funds for the care of your pet.
5. Your last wishes are granted in a timely manner with no unnecessary fees. If you do not have a Last Will and Testament in place, the probate court will appoint an administrator to settle your affairs. This can be expensive, possibly up to 10% of your estate’s value. In addition, your estate can be tied up in the court system for years. There may also be no funds immediately available to cover your funeral expenses. Do you want to lay the financial burden of funeral expenses and other debt on your family?
6. You define the details of your funeral. If you do not want a traditional funeral, you get to say so in your Last Will and Testament. Maybe you want other music played instead of organ music, such as heavy metal, rap, country, jazz, etc. Do you have certain songs you want played at your funeral? What about types of flowers? Are there certain items you wish to be buried with? What outfit do you want to wear? Would you rather be cremated? These are all decisions you may want to include when you create a Last Will and Testament.
7. Donate to causes you care about. If you would like to donate money to any causes near and dear to your heart, you can outline the details in your Last Will and Testament.
8. You name the person responsible for carrying out your wishes. When you create a Last Will and Testament you get to name an Executor of your Will. This person is legally responsible for carrying out your wishes outlined in your Last Will and Testament. They will pay debts, distribute property, and distribute money according to your wishes.
9. You decide who retains your digital assets. Ever wonder what happens to email accounts and social media accounts when a person dies? You can have control over the situation. A Last Will and Testament allows you to bequeath digital property, such as: email accounts, blogs, social media profiles, websites and domain names, hosting accounts, photo sharing websites, document sharing websites, business accounts, computer files, etc.
10. Make things easy for your family. Without a Last Will and Testament, a burden is placed on your family to try and fairly handle your personal property and money. Family conflicts often ensue. After your death, the last thing you want is your family fighting. If you clearly define your wishes in your Last Will and Testament, you will be doing your family a huge favor.
11. Tomorrow could be too late. You can make all the decision regarding your affairs now, today, while you are healthy and of sound mind. We do not know what tomorrow may bring. Death or mental incapacity could happen at any time.
12. You get to distribute your assets fairly. Without a Last Will and Testament, the state could divide your property in an unfair manner. Family members who do not need extra money could end up with a majority of your monetary funds. This could leave children without the proper funds to be cared for by other family members. You may have family with special needs who require a greater share of your estate. Don’t let this happen. Have peace of mind that your family members are cared for and protected by creating a Last Will and Testament.
As you can see from our above list, a Last Will and Testament is not just for seniors or the rich. Without one, your property and assets will be distributed by the state and could potentially be held up in court for years. Have peace of mind that your last wishes will be granted.

Contact Our Lake Geneva Estate Planning Lawyer
Our Lake Geneva Estate Planning Lawyer can help you get your affairs in order. If you already have a general idea of how you would like your property disbursed, why wait? Do not procrastinate and risk everything by not creating your Last Will and Testament today. Contact our Lake Geneva Estate Planning Lawyer via phone by calling 262-725-0175 or via email on our website’s contact page. Wynn at Law, LLC has convenient estate planning offices located in Lake Geneva, Delavan, Muskego, and Salem, Wisconsin.
 

 
 
 
*The content and material on this web page is for informational purposes only and does not constitute legal advice.