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Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for February 11, 2014 Vince Young Settles Bankruptcy, Plans Return to NFL First Mariner Bancorp files for bankruptcy Former Baywatch star Donna D’Errico files for bankruptcy

The recent case of In re Bast, ___ BR ___, 2007 WL 1429481 (Bkrtcy.S.D. Fla.)(Friedman J.) dealt with a motion by a discharged chapter 7 trustee to vacate the final decree and his discharge as trustee about a year after the chapter 7 case was closed as a "no asset case." The motions were filed as part of his efforts to administer an asset for the benefit of creditors. The asset involved was an $82,000 surplus generated by a foreclosure sale of scheduled non-exempt real property after the chapter 7 case was closed.

The Court denied the chapter 7 trustee's motion to vacate the final decree and the trustee discharge. During the chapter 7 case, which was filed in March, 2005, it was not apparent that there was equity in the real property and the chapter 7 trustee did not administer the real property and filed a report of no distribution in April, 2005. Subsequently though, a foreclosure sale on the courthouse steps in St. Lucie County produced a surplus of $82,000 from the sale of the real property.

The Court discussed that there are "basically three types of abandonment that may occur in a bankruptcy case" as set forth in section 554. The first two types of abandonment are set forth in sections 554(a) and (b) and take place upon motion of a party. The third type of abandonment is found in section 554(c). It does not involve a motion and is commonly referred to as a "technical abandonment." A technical abandonment generally results under section 554(c) upon the closing of the case if an asset is disclosed in the schedules and is not administered during the course of the bankruptcy case.

In this case, the requirements for a technical abandonment were met and the non-exempt real property was abandoned from the estate to the debtor at the close of the case. The trustee's subsequent efforts to administer the $82,000 surplus for the benefit of the creditors were denied by the Court. As a result, the debtor was entitled to the $82,000.(305) 891-4055 - Jordan E. Bublick is a Miami Bankruptcy Lawyer with over 25 years of experience in filing Chapter 13 and Chapter 7 Bankrkuptcy Cases.

If you got through the recession without filing for bankruptcy, the government is happy – even if you lost your home, went into default, and had your bank accounts and wages seized.
A January 2014 working paper from the Federal Reserve Bank of St. Louis, titled, “Labor Market Upheaval, Default Regulations, and Consumer Debt,” find that

the 2005 bankruptcy reform likely prevented a substantial increase in bankruptcy filings, but had only limited effect on the observed path of delinquencies. Thus, the reform appears to have ‘worked.’

Click here for the entire study in PDF format.
I don’t often comment on a change in the law that was signed into law nearly 9 years ago, but I can’t help but wonder how the lack of an uptick in bankruptcy filings during the worst financial downturn since the Great Depression is something to be lauded.
People lost their jobs in record numbers, foreclosures washed over the nation at a rate that left entire towns empty and a generation scarred.
And lots of people filed for bankruptcy. Good, smart people who just got kicked in the groin by circumstances beyond their control.
People like you and me, our neighbors and friends.
The Safety Valve Was Shut Off
In spite of the increase in bankruptcy filings, the study says that it could have been a lot worse. And because it wasn’t, the study claims victory.
The study, however, misses the point – something the economists seem to recognize when they indicate that delinquencies were still extraordinarily high during the period in question. It’s as if nobody bothered to consider the effects of millions of people walking around with delinquent debt on their credit reports.
These people can’t go out and buy a new home, or a car, or even get a decent credit card. They aren’t able to buy big-ticket items like refrigerators and furniture because they’re wallowing in unpaid bills.
Some of these folks have been sued, and are contending with wage garnishments and bank account freezes. Others haven’t been sued, but will be paying debt collectors $10 each month until long after they die. Their credit is shot, with no hope of improving until the debts are all paid off.
It Could Have Been Different
Let’s contrast this with the situation if these folks had filed for bankruptcy.
With their debts gone, these people would have been free to begin saving money again.
At the same time, their credit score would have begun to rise as the old debts began to fade into the past.
People would have been better able to pay their student loans and tax debts that didn’t get wiped out in bankruptcy.
Buying a car or home furnishings wouldn’t be out of the question anymore.
In short order, more people would have re-entered the wheel of commerce. Money would have changed hands, exchanged for goods and services.
The Government Laughed as You Cried
You know the government bailed out the banks rather than help you out. But this study shows clearly how you were kicked when you were already down for the count.
The Democrats called the Republicans evil as they pushed through the bankruptcy reforms of 2005. Then the Democrats gleefully reaped the benefits of the Republican efforts.
As Bob Dylan asked, “how does it feel?”
Remember this the next time the vote comes around.

If you are on cusp of filing for divorce in Oregon and need to figure out what to do about all the debt, meeting with an experienced Portland or Salem Bankruptcy Attorney is likely a great first step.
If there aren’t any potential conflicts between you and your spouse (no secured debts, no potential child support obligations, no tax issues, just a bunch of unsecured debt), filing together prior to dissolution is often a great way to resolve the debt issues and save alot of money in the divorce since you no longer have to spend any time and attorney fees figuring out who is going to deal with the credit cards and who is going to handle the collectors.
If there are potential conflicts, you will need to file individually. For example, if you are both on the boat and car loans, he wants to keep them and you are worried that he might not be able to later, you should probably not file together. You want to keep the house, he isn’t so sure, you want to get rid of the cars, he wants to keep making payments.
Your spouse’s income level can also be an issue. Let’s say he makes more than you do and he doesn’t qualify for Chapter 7 bankruptcy, only Chapter 13. Do you really want to be part of his Chapter 13 when you can file Chapter 7 alone later after the divorce. Normally, you wouldn’t but, under some circumstances it might actually be helpful. Only you with the help of your Portland or Salem, Oregon Bankruptcy attorney can tell.
What you are going to owe your spouse after bankruptcy or what he is going to owe you is also going to have a huge impact on what kind of bankruptcy you opt to file and whether you file with him. Ultimately, if there are debt issues of any kind, you should meet with an Oregon bankruptcy attorney prior to finalizing the divorce. If you do have questions about divorce and bankruptcy , please feel free to give our office a call or set an appointment at either our Salem or Portland, Oregon Bankruptcy Law Offices.a
The original post is titled Oregon Divorce and Bankruptcy , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .