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In bankruptcy, Oregon and Washington debtors are required to list all their assets and give a corresponding estimated value of his or her property. This is an easy task when the asset has an easily fixed cash value, like a stock, owed wages, or cash money. Household and personal items, vehicles, and even real estate are often more challenging.
Most Oregon bankruptcy lawyers advise their clients to value household and personal items at garage sale or Craig’s List prices. The reason for this is that if the asset were sold through the bankruptcy process, it would be sold at a liquidation price, usually at auction. A Garage sale more or less approximates this value. The idea is what would the property sell for if it were dumped on the open market without any attempt to market it to a particular buyer.
Most people overestimate the value of their household goods. For instance, many used household items really have little or no resale value. Ever try to sell clothes or furniture? I couldn’t get Goodwill to take a desk from me for free! Your computer main mean the world to you, but the resale value for them after they are a year old is pretty much dimes on the dollar. If you are unsure of how to value an item, the internet is a terrific resource. Sites like Ebay and Craigslist can give good examples of what your property is worth to the general public.
A good resource to obtain vehicle pricing information is to visit Kelly Blue Book on-line or the NADA motor vehicle price guide on-line at http://www.nada.com. There resources are accepted price guides and are a good starting point in valuing your vehicle.
Real estate can be more difficult to determine. Most home and landowners have a good understanding of what their property is worth. If the value of the real property is an issue in the bankruptcy case, it will likely be in the debtor’s best interest to have the property appraised by a professional real estate appraiser. I would not rely on tax values because in cities like Portland and Salem, they rarely, if ever, provide a decent estimate of what the home would actually fetch on the open market. Obtaining both the tax value and the Zillow value is a good starting point.
If you have are filing bankruptcy in Portland or Salem and have any questions about the value of your real or personal property, make sure they get answered prior to the filing of our case.
The original post is titled Values for Property in Oregon Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Last week I attended a meeting put on California's Eastern District Court. This district includes the Central Valley from Bakersfield through Sacramento.
One of the round table discussions was the drop in bankruptcy filings. Fewer and fewer individuals and businesses are turning to bankruptcy. The peak of bankruptcy filing during the Great Recession was in 2011. Since then, fewer and fewer debtors are filing bankruptcy.
One attorney joked that if bankruptcy filings continue at the present rate of decline, the last bankruptcy case to be filed in California's Eastern District would be in December of 2016. Of course, the present rate of decline in bankruptcy petitions won't keep at this level, but it is illustrative of how many people had to file bankruptcy in the Great Recession.
The trend is not just in California. Nationwide, bankruptcy filings are down. Here is an article from the American Bankruptcy Institute:
Bankruptcy filings register largest percentage drop in 2014
Photo Credit: Francesca Gallo at Flickr
Here is some useful tips for potential people considering filing bankruptcy. The list is not exhaustive. It makes sense to speak to a bankruptcy attorney as soon as you think that bankruptcy might be an option. In California's Central Valley (Fresno, Madera, and Tulare County) bankruptcy consultations can be obtained without paying a fee to an attorney.
Don't Do These Things Before/While Filing for Bankruptcy:
- Don't re-pay money to family for money that you borrowed from them. The bankruptcy court can take these preference payments back up to one year later if you file bankruptcy.
- Don't take use credit cards 90 days before bankruptcy. Don't take cash advances or make balance transfers either. You may have to repay purchase, cash advances and balance transfers done within 90 days of filing your bankruptcy.
- Don't file bankruptcy without talking to a bankruptcy attorney if you are about to receive a large tax refund. You might be at risk of surrendering the tax refund to the Court. See my article on this topic: Beware of Losing Tax Refund.
- Don't take out other new debt you will not be able to repay.
- Don't file when you may receive an inheritance within 6 months of filing bankruptcy. You could lose it.
- Don't give valuable property away. The Court will automatically presume that you are fraudulently hiding assets, even if your not.
- Don't cash our retirement to repay debts without the advice of a bankruptcy attorney. The assets inside retirement accounts are exempt accounts. In other words they are protected from creditors in bankruptcy. The policy for protecting qualified retirement accounts is to encourage people to save for retirement and not be broke when Americans are too old, or unable to make a living.
- Don't take out a 2nd mortgage to pay off credit cards. This usually ends in disaster. Sometimes bankruptcy is the better solution. The added mortgage payment may make it too expensive to afford your home.
Again, this is not an exhaustive list. This is to encourage those with debt issues not to make bad decisions and to speak to a bankruptcy attorney beforehand.
Photo Credit: Danielle Buma at Flickr
Most bankruptcy law firms in Oregon and Washington have their clients fill out some kind of questionnaire as part of the bankruptcy filing process. Our firm is no exception, though we are one of the few that offers its clients the ability to fill out their questionnaires online. The fact is that it is an almost unavoidable part of the process. We aren’t detectives and only you can tell us what your personal property. Many bankruptcy clients forget that they are required to list personal property that they are paying on.
Often bankruptcy clients will believe that they didn’t need to list the car or the tire loan because they are making payments and don’t really own the collateral yet. But you do have an interest and the bankruptcy trustee still needs to be referenced. Other clients don’t list the car or the house because they don’t want to include the car loan in their bankruptcy. You still have to list it and doing so doesn’t mean that you are going to lose the house, or the car or the tires, it. Listing the property just means that the lender gets the notice that it is entitled to receive.
Given the expansiveness of the Oregon and Washington exemptions, it is a rare day that a client loses anything in bankruptcy. Generally you will have multiple options for dealing with a secured loan in bankruptcy, but you won’t have any options if you don’t let your bankruptcy attorney know about the car with the loan that you want to keep out of bankruptcy.
The original post is titled We Need to Know About Your Car and House in Bankruptcy , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
Testimony in the historic Detroit bankruptcy trial began this morning with the city’s chief financial officer stating fiscal controls were “very, very poor” when he began last year.
John Hill Jr. was the first witness called on September 4. According to Hill, Detroit was unable to fully determine revenue flow for a myriad of reasons, but partly due to a failure to implement a “financial commuter system,” as said by ABC News.
Lawyers for the United Auto Workers, Wayne County and the American Federation of State, County and Municipal Employees are also slated to present their arguments on Thursday.
On Wednesday, lawyers argued against Detroit’s current debt modification plan, claiming it to be “illegal, unfair and dead on arrival,” according to an article in the Detroit Free Press.
Judge Steven Rhodes compelled a lawyer for Syncora Guarantee, arguably the city’s strongest critic and creditor, to state what he felt is an appropriate amount for the city to repay. Attorney Kieselstein said Syncora wants 75 cents on the dollar.
Detroit’s Grand Bargain is the foundation of the bankruptcy plan. The bargain would allow the city to accept roughly $816 million over the next 20 years from the state of Michigan, non-profit foundation and the Detroit Institute of Arts donors. The money would be used to fund city retiree pensions.
Bond insurers claim the Grand Bargain illegally discriminates against commercial creditors. Syncora claims it is owed $400 million.
Rhodes has scheduled the trial into mid-October to give enough time to determine the fairness of the Grand Bargain and what is most reasonable for all parties. City leaders, including Mayor Mike Duggan and emergency manager Kevyn Orr, are expected to testify throughout the trial.
Detroit filed for Chapter 9 bankruptcy protection July 18, 2013, claiming debts and estimated long-term liabilities totaling $18 million.
The post Detroit Bankruptcy Trial Begins appeared first on The Bankruptcy Blog.
Recently I noted on our Oregon bankruptcy blog that our firm has expanded our debt law practice areas to include student loan law. As part of that process, I have just completed a thirty page guide on student loan law for Oregon and Washington debtors. I am obviously happy to send on a free copy of this guide to any of our prior, current or prospective bankruptcy clients. Please feel free to email me directly at [email protected] if you would like me to send one to you.
The original post is titled New Guide to Student Loan Law for Bankruptcy Clients , and it came from Portland Bankruptcy Attorney | Northwest Debt Relief .
We meet people almost every day that have large student loan payments. Unfortunately, as we have discussed in the past, most student loans are not dischargeable. While the payments can be made through a Chapter 13 Bankruptcy, they will not be discharged. While we try to assist our clients in any way possible, the bankruptcy code and case law somewhat limit us in this area. This can leave our clients unsure of how to proceed. A quick internet search of loan options will produce an overwhelming amount of information, and much of that information is contradictory to other sources. It can be hard to know where to turn for answers. Another unfortunate truth is that many student loan companies do not do much in the way of offering help to the people that need it the most. Even when the companies do offer help they don’t always properly explain the options and the implications associated with those options. It is easy to see why people turn to student loan assistance companies. People think they are dealing with experts in their field, companies that understand and care, and companies that can actually help. Unfortunately, many of these companies are predatory in nature and these companies. Sadly, these practices primarily imp Remember, if they are offering to help you they are getting something out of the deal. This loan assistance companies are for-profit entities that are making money off of the advice they give you. Many of these companies offer the world and seem to ask for very little in return. Word to the wise: if it seems too good to be true it probably is!However, in the last few week the Illinois Attorney General has decided to do something about this. The Illinois Attorney General has filed two law suits this month, one against Broadsword Student Advantage, LLC and the second against First American Tax Defense, LLC. The long and short of the allegations the Illinois Attorney General has included in the complaint against Broadsword Student Advantage is that the offered to reduce payments, reduce interest rates, and or consolidate loans, however, they were charging people a fee of $499 up front and a recurring monthly fee of $49 when this information is available for free to lenders. Further, the services Broadsword claimed to offer we not all available to consumers. In the second case the Illinois Attorney General has filed, against First American, the state alleges that First American offered to get lower payments, obtain forgiveness of loans, and the ability to fix credit scores. First American was charging $1,199 and up for these services, which are otherwise free to lenders. Basically, you should take a few things from this. First, is to be careful. Second, while these cases were filed as violations of Illinois laws it will be interesting to watch and see how those cases come out and whether other states begin to follow suit. If you have questions about this, or any other bankruptcy question, please feel free to contact your St. Louis Bankruptcy Attorney today!
On November 16, 2010, the American Securitization Forum has posted a white paper on the topic of "Transfer and Assignment of Residential Mortgage Loans in the Secondary Mortgage Market." The white paper was drafted to address "a number of legal theories questioning whether securitization trusts ...have valid legal title ... to the mortgage notes in those trusts."
The white paper asserts as one of its most critical principles is that when ownership of a mortgage note is transferred in accordance with common securitization processes, ownership of the mortgage is automatically transferred pursuant to the centuries old common law rule that "the mortgage follows the note." It further asserts that "this means that the assignment of a mortgage to a trustee does not need to be recorded in real property records in order for it to be a valid and binding transfer."Jordan E. Bublick is a Miami Bankruptcy Lawyer - www.bublicklaw.com
Charlie was a bad man. With his aggressive personality he intimidated and threatened others if they didn’t give into what he demanded. He grew rich on the work of others and reminded everyone that without him they were nothing, but such men are destined to fail because they never have enough and so they continuously pledge their empire to gain an even larger empire. In the process they go too far and eventually make risky investments that fail starting a cycle of going from bank to bank and victim to victim seeking precious cash to keep operations going. Realizing that everything he owned would soon be taken away as the banks began to seize his assets, Charlie transfers assets to family members and trusted confidants. But the banks start litigation for unpaid debts and their attorneys ask sharp questions about where all the assets went to and it becomes obvious that there is nowhere to hide. Feeling cornered, Charlie hires a cheap attorney who asks few questions of the know-it-all businessman and files a bankruptcy case. Of course, the bankruptcy petition fails to list all his assets and is completely blank as to all the transfers that occurred in the past year. Predictably, the bank’s attorneys show up at the bankruptcy Meeting of Creditors and begin pounding Charlie with questions about the location of his assets and the various transfers and demand explanations for the inconsistencies between what he wrote down on his loan application and the reality of his financial situation. Charlie gets a bad feeling that filing bankruptcy was an unwise decision and requests that his case be dismissed only to find that the Court and his executioners have no intention of letting him walk away. Welcome to the bankruptcy electric chair, Charlie.
Bankruptcy is a process designed to illuminate, not to conceal. To file bankruptcy is to strap oneself in for an examination.
When you have something to hide the last place you should be looking to park yourself is in the United States Bankruptcy Court. Although bankruptcy does protect a certain amount of exempt property there is a limit to the property exemption laws and that which is not exempt must be turned over to the Chapter 7 Trustee for liquidation. So, bankruptcy courts have a dual purpose: to protect and to liquidate. To facilitate the liquation function the Bankruptcy Code gives Chapter 7 Trustees special powers to avoid and undo fraudulent property transfers or preferential transfers to inside creditors (i.e., transfers to family members or business associates). In addition, the bankruptcy petition signed by debtors under penalties of perjury require a debtor to list each and every property transfer occurring within two years of filing bankruptcy and the Trustee may void fraudulent transfers occurring during the prior four years. The Trustee must be furnished bank statements and tax returns and creditors can easily schedule “2004 Exams” to interrogate debtors about their financial dealings. In short, bankruptcy is a process designed to illuminate, not to conceal. To file bankruptcy is to strap oneself in for an examination.
Unlike Chapter 13, Chapter 7 does not provide for an absolute right of the debtor to dismiss the case.
Charlie’s request to dismiss his case was denied. The court may only dismiss a Chapter 7 case for good cause. (See In re Turpen, 244. B.R. 431 (8th Cir. BAP 2000), and the primary factor in such a motion is whether it is in the best interest of the creditors to dismiss the case. In re Schafroth, 2012 Lexis 2346 (Bankr. New Mexico) (debtors who claimed $120,000 deposited in Swiss bank account were exempt were not allowed to dismiss case when exemption denied). Unlike Chapter 13, Chapter 7 does not provide for an absolute right of the debtor to dismiss the case. For Charlie’s creditors their best interest is served by keeping him locked into his electrifying bankruptcy chair, to use the powers of the bankruptcy proceeding to return transferred property and to investigate his business associates and banking relationships. He has given them powers to attach his property that would not existed to the same degree outside of bankruptcy.
Got something to hide? Don’t want to answer too many questions? The last place you want to find yourself is in a witness chair of the United States Bankruptcy Court. Do yourself a favor, look for a sunny beach instead.
Image courtesy of Flicker.
Charlie was a bad man. With his aggressive personality he intimidated and threatened others if they didn’t give into what he demanded. He grew rich on the work of others and reminded everyone that without him they were nothing, but such men are destined to fail because they never have enough and so they continuously pledge their empire to gain an even larger empire. In the process they go too far and eventually make risky investments that fail starting a cycle of going from bank to bank and victim to victim seeking precious cash to keep operations going. Realizing that everything he owned would soon be taken away as the banks began to seize his assets, Charlie transfers assets to family members and trusted confidants. But the banks start litigation for unpaid debts and their attorneys ask sharp questions about where all the assets went to and it becomes obvious that there is nowhere to hide. Feeling cornered, Charlie hires a cheap attorney who asks few questions of the know-it-all businessman and files a bankruptcy case. Of course, the bankruptcy petition fails to list all his assets and is completely blank as to all the transfers that occurred in the past year. Predictably, the bank’s attorneys show up at the bankruptcy Meeting of Creditors and begin pounding Charlie with questions about the location of his assets and the various transfers and demand explanations for the inconsistencies between what he wrote down on his loan application and the reality of his financial situation. Charlie gets a bad feeling that filing bankruptcy was an unwise decision and requests that his case be dismissed only to find that the Court and his executioners have no intention of letting him walk away. Welcome to the bankruptcy electric chair, Charlie.
Bankruptcy is a process designed to illuminate, not to conceal. To file bankruptcy is to strap oneself in for an examination.
When you have something to hide the last place you should be looking to park yourself is in the United States Bankruptcy Court. Although bankruptcy does protect a certain amount of exempt property there is a limit to the property exemption laws and that which is not exempt must be turned over to the Chapter 7 Trustee for liquidation. So, bankruptcy courts have a dual purpose: to protect and to liquidate. To facilitate the liquation function the Bankruptcy Code gives Chapter 7 Trustees special powers to avoid and undo fraudulent property transfers or preferential transfers to inside creditors (i.e., transfers to family members or business associates). In addition, the bankruptcy petition signed by debtors under penalties of perjury require a debtor to list each and every property transfer occurring within two years of filing bankruptcy and the Trustee may void fraudulent transfers occurring during the prior four years. The Trustee must be furnished bank statements and tax returns and creditors can easily schedule “2004 Exams” to interrogate debtors about their financial dealings. In short, bankruptcy is a process designed to illuminate, not to conceal. To file bankruptcy is to strap oneself in for an examination.
Unlike Chapter 13, Chapter 7 does not provide for an absolute right of the debtor to dismiss the case.
Charlie’s request to dismiss his case was denied. The court may only dismiss a Chapter 7 case for good cause. (See In re Turpen, 244. B.R. 431 (8th Cir. BAP 2000), and the primary factor in such a motion is whether it is in the best interest of the creditors to dismiss the case. In re Schafroth, 2012 Lexis 2346 (Bankr. New Mexico) (debtors who claimed $120,000 deposited in Swiss bank account were exempt were not allowed to dismiss case when exemption denied). Unlike Chapter 13, Chapter 7 does not provide for an absolute right of the debtor to dismiss the case. For Charlie’s creditors their best interest is served by keeping him locked into his electrifying bankruptcy chair, to use the powers of the bankruptcy proceeding to return transferred property and to investigate his business associates and banking relationships. He has given them powers to attach his property that would not existed to the same degree outside of bankruptcy.
Got something to hide? Don’t want to answer too many questions? The last place you want to find yourself is in a witness chair of the United States Bankruptcy Court. Do yourself a favor, look for a sunny beach instead.
Image courtesy of Flicker.