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I enjoy meeting with my clients to discuss solutions to debt problems.  And over the years I have met some really pleasant and interesting people.  That being said, I hope that when your bankruptcy case is over, I will never see you again – at least for another bankruptcy filing.If you win the lottery and need legal help setting up a charitable foundation or a corporate structure to organize your investments, please call me.   If you know someone who needs to file an injury claim, I can help you there too.  But I really hope that this bankruptcy case will be your last.Here are several suggestions that will absolutely help you avoid the need to file another bankruptcy:

• set up online access to your credit accounts – you will be able to schedule payment reminders, fraud alerts and other control reminders.

• set up automatic payments from your checking account to cover minimum payments – most of the time your minimum payment will be $25 or $35.   When this is paid automatically, you avoid late charges and late payment downgrades to your credit score.

• pay off your entire balance each month – if you find yourself running a balance, this means that you are spending more than you are earning.  This should be a warning sign.   Stop spending until you get your balance down to zero.  Spending more than you earn will lead you back to…..bankruptcy!

• never, ever, ever, ever (apologies to Taylor Swift) co-sign a loan for someone else – nothing good ever arises from co-signing for someone else – your brother, your sister, your kid, your mom.  Just say “no.”

• write out a budget – if you can use a spreadsheet, do so.  When you see your income and expenses in black and white on paper, you will have a much clearer idea where your money goes

• set aside funds for emergencies – you are going to have to replace tires, your kid will break a tooth, you will need to make an emergency plane trip.   Start setting aside $50, $100, or whatever you can in a savings account.  Try to build up 3 or 4 months equivalent to your monthly take home pay.  Forget that this money exists for any purpose other than a true emergency.

• start planning for retirement.  Create an IRA account.  Contribute to your company’s 401(k) or pension.  Besides bankruptcy I represent people in Social Security disability claims and I will advise you not to rely on Social Security to pay for your retirement

There is an old saying that if you fail to plan, you are planning to fail and this is especially true when it comes to personal finances.  The difference between a comfortable and manageable life and a stressful,  unpleasant life can boil down to $200 or $300 per month.  My hope for all of us as we enter 2014 is to live below our means and to prepare for the unexpected.The post I Never Want to See You Again…. appeared first on theBKBlog.

There are plenty of ways to commit fraud when filing for bankruptcy.  Aside from all the ethical reasons to avoid fraud, prison time may be the greatest reason to avoid bankruptcy fraud.  Here is a recent article regarding the same:
Article on Bankruptcy Fraud

Adam Brown is a bankruptcy attorney for Dexter & Dexter, a debt relief agency helping people file for bankruptcy.

What is a Chapter 11 Single Asset Real Estate Bankruptcy Case?  Well, first, these are commonly referred to as “SARE” cases.
A SARE case is one where there is a single piece of property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of the debtor.  See 101(51B) of the US Bankruptcy Code.   SARE cases allow mortgage holders to obtain relief from stay within just 90 days unless a feasible plan has been filed or the DIP has commenced monthly payments equivalent to interest to each secured creditor.  11 USC 362(d)(3).
SARE cases are needed when the property is not self sustaining.  Usually, there is a cash flow issue, and/or foreclosure is on the horizon.    It has been researched by bankruptcy experts that the most dominant factor in the success of “SARE” cases is that the value of the real property often determines the likelihood of success.   It doesn’t have to do with the amount outstanding as much as the outcomes seemed to correlate with property value more than anything else.   The higher the value the more likely the SARE cases will be successful.
So why consider a SARE bankruptcy?  Obviously, SARE debtors want to keep the real estate in tact and performing and one way to do that is filing a SARE bankruptcy.  Chapter 11 gives the property owner a chance to rehab the property or sell the property on its own terms, apart from foreclosure.  Postpetition DIP financing is another objective that can be achieved in a SARE bankruptcy depending on the circumstances.   Mortgage modification or a lender workout is also another viable solution.
There use to be a $4 million dollar cap on SARE cases, but that is no longer the case.
The key to SARE cases is fact specific.  Outcomes of such cases will rely upon a multitude of factors.  Because of the tight 90 day timeline, SARE debtors must react quickly.   While SARE cases are difficult, they are not impossible to work out.   Again, it will greatly depend on the facts of each case.
 

What is a Chapter 11 Single Asset Real Estate Bankruptcy Case?  Well, first, these are commonly referred to as “SARE” cases.
A SARE case is one where there is a single piece of property or project, other than residential real property with fewer than 4 residential units, which generates substantially all of the gross income of the debtor.  See 101(51B) of the US Bankruptcy Code.   SARE cases allow mortgage holders to obtain relief from stay within just 90 days unless a feasible plan has been filed or the DIP has commenced monthly payments equivalent to interest to each secured creditor.  11 USC 362(d)(3).
SARE cases are needed when the property is not self sustaining.  Usually, there is a cash flow issue, and/or foreclosure is on the horizon.    It has been researched by bankruptcy experts that the most dominant factor in the success of “SARE” cases is that the value of the real property often determines the likelihood of success.   It doesn’t have to do with the amount outstanding as much as the outcomes seemed to correlate with property value more than anything else.   The higher the value the more likely the SARE cases will be successful.
So why consider a SARE bankruptcy?  Obviously, SARE debtors want to keep the real estate in tact and performing and one way to do that is filing a SARE bankruptcy.  Chapter 11 gives the property owner a chance to rehab the property or sell the property on its own terms, apart from foreclosure.  Postpetition DIP financing is another objective that can be achieved in a SARE bankruptcy depending on the circumstances.   Mortgage modification or a lender workout is also another viable solution.
There use to be a $4 million dollar cap on SARE cases, but that is no longer the case.
The key to SARE cases is fact specific.  Outcomes of such cases will rely upon a multitude of factors.  Because of the tight 90 day timeline, SARE debtors must react quickly.   While SARE cases are difficult, they are not impossible to work out.   Again, it will greatly depend on the facts of each case.
 
The post Do Single Asset Real Estate Chapter 11 Bankruptcies Really Work? appeared first on JCH LAW FIRM.