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Setting Up The Bankruptcy File Correctly To conduct a successful bankruptcy case, you have to have your file set up correctly from the outset. I’m talking about having every detail covered so that you don’t fall into any of the open man holes and potholes that lie ahead of you. Of course there is the+ Read More
The post Bankruptcy Talking Points Memo appeared first on David M. Siegel.

Do you know what it means to have a judgment entered against you?  Judgments arise from lawsuits – often collection lawsuits – and they happen when a state court judge decides in favor of the other party.In collection lawsuits, this means that the judge has ruled in favor of the plaintiff – usually a credit card company, finance company or other person or company who is suing you for money damages.  Sometimes a judgment is entered after trial but most of the time, a default judgment is issued when the defendant (i.e., you) does not answer the lawsuit.In Georgia, if you are sued, you must file a written “answer” with the clerk of court, within 30 days after you are served with a lawsuit.  If you do not file an answer in a timely manner, the plaintiff can go to court and ask the judge to issue a default judgment.Unfortunately you will not know when or if this default judgment is entered.  If you choose not to participate in the litigation, you may not receive notice about the status of that litigation.Here at Ginsberg Law Offices we often speak to clients who only found out about a judgment when they opened their pay stub only to discover that 25% of their take home pay was seized, or when their savings or checking accounts were seized by the judgment creditor.The take away from all this is clear – if a sheriff’s deputy or process server knocks on your door and hands you a lawsuit, your next move should be to call a lawyer for guidance.  If you hear a rumor that someone has sued you (perhaps out of state or in the county where you used to live), don’t ignore the problem hoping it will go away. Instead, call a lawyer.  Lawsuits usually do not go away, and, as discussed above, bad things can happen if a judgment is issued.The post Beware Judgments appeared first on theBKBlog.

While Chapter 7 bankruptcy offers individuals a fresh start and discharge from many debts, it doesn't come without a price. Property of the debtor becomes property of the estate and is used to pay creditors.
But not all of it. Section 522 of the Bankruptcy Code lists exemptions that debtors can use to exempt property - up to a certain dollar amount in value - from the estate. The purpose of exemptions is to ensure that the individual debtor is able to maintain a basic standard of living post-bankruptcy. But because there are very few assets available for creditor recovery beyond exempt property in many bankruptcy cases, the propriety of a debtor's claimed exemptions is an issue that is oft-litigated.
Such was the case in an appeal to the U.S. Court of Appeals for the Sixth Circuit (the "Sixth Circuit") arising from a Chapter 7 bankruptcy case that was filed in the U.S. Bankruptcy Court for the Eastern District of Michigan. Read More ›
Tags: 6th Circuit Court of Appeals, Chapter 7

A key to getting good results in a bankruptcy case is to make sure that each and every creditor receives notice of the bankruptcy filing. Failure to notify a creditor may lead to disastrous results, including the debt not being discharged or the bankruptcy case itself being dismissed for intentional withholding of information.
About the first question your bankruptcy attorney will ask this: How much do you owe? It sounds like a simple question, but the common answer is “I don’t know–I don’t even want to know.”  There comes a point in the debt cycle that a person stops opening the mail, answering the phone and no longer bothers to figure out who or how much they owe.
How do you figure out what you owe when all the paperwork–the bills, the collection letters, the court summons–is gone?  How can you even determine if you should file bankruptcy if you don’t have a list of what you owe?

1. Get a Credit Report.  There are lots of commercials advertising free credit reports, but the only really free credit report a person can obtain without having to sign up for some type of credit monitoring service is found at www.AnnualCreditReport.com.  Under federal law, the major credit reporting agencies must provide one free copy of your credit report each year.  Get all three reports offered by TRW, TransUnion and Equifax.
2. Organize your paperwork.  Start opening the piles of mail with all those nasty “Past Due” notices.  Open those letters from collection agencies and match them to each creditor.  Some clients use separate folders for each creditor or debt.
3. Search Court Records Online.  Most court records are now online and can be searched for free or for a minimal charge.  Here is the link to Nebraska’s online court search (which requires a subscription) and the free Iowa online search portal.
4. Tax Debts.  Not sure if you owe taxes or even if you filed all required tax returns?  The most direct way to solve that question is to call the IRS at 1-800-829-1040.  Don’t be afraid to call.  Most people answering the IRS phones are very nice.  If by chance you speak to a rude person just hang up and call again.  If you suffer from Telephobia, then use IRS form 4506-T to request an Account Transcript of each tax debt you owe.  An Account Transcript is basically a time diary of each tax you owe showing when a tax return was filed, who filed the return (the IRS or you), the date the tax was assessed, and the balance presently owed.  Since many income taxes become dischargeable three years after they were due (or two years after they were actually filed, whichever date is later), it is critical for the bankruptcy attorney to know exactly if the tax returns were filed and when they were filed.  Account Transcripts provide that critical information.
5. Write Name & Address of potential creditors.   There is no penalty for listing a debt you are unsure about.  In fact, the bankruptcy creditor list can actually state whether a debt is uncertain.  If you don’t have a bill for a medical service performed a year ago and you are not sure if insurance paid all or some of the debt, list the debt anyway.  All your bankruptcy attorney needs to list a debt is the Name and Address of the creditor–they don’t need the actual bill.  If in doubt, list the debt.

Should you file bankruptcy?  Is the debt total  too small to justify such a drastic action?  If not, what type of bankruptcy should you file?  Chapter 7, 13, 11 or 12?  The qualify of the advice you receive will largely depend on the amount and nature of the debt owed.  Make a good list.
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