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Bringing you the most up-to-date news, tips and blogs throughout the web. Here’s your Bankruptcy Update for May 07, 2013 SouthPeak Seeks to Pull Plug on TimeGate Bankruptcy New testimony in Shapiro bankruptcy case supports claims Solyndra bankruptcy scandal spills over into wind projects
Consumers have the option of filing for bankruptcy on their own, also known as “pro se,” in which you represent yourself. You are not required by law to file bankruptcy with an attorney, but many do not understand the risk they take upon themselves when considering the process without guidance of an experienced attorney. For instance, many [...]
The Bankruptcy Court of the Western District of Michigan recently denied a Trustee’s Motion to Sell Avoidance Actions pursuant to 11 U.S.C. 363(b).1 The Trustee’s Motion sought authority to sell potential causes of actions under Chapter 5 of the Bankruptcy Code, as the estate had limited resources to pursue the actions. The Court noted that the Sixth Circuit has not decided the issue of whether a Bankruptcy Trustee has authority to sell avoidance actions.
The real issue before the Court was whether an avoidance action is “property of the estate” given a Trustee has authority to sell property of the estate pursuant to § 363(b). The Court rejected the Trustee’s argument that avoidance actions are included within property of the estate. Read More ›
Tags: Western District of Michigan
To my readers around the country, please keep in mind that I cannot give you legal advice. My answers here on this blog may help you think of things to talk about with YOUR LAWYER. DO NOT TRY TO BE YOUR OWN LAWYER, based on anything you read here. That would be a really bad idea. Welcome. [...]The post Welcome to the “Reader Top Rated” Bankruptcy Blog appeared first on Robert Weed.
To my readers around the country, please keep in mind that I cannot give you legal advice. My answers here on this blog may help you think of things to talk about with YOUR LAWYER. DO NOT TRY TO BE YOUR OWN LAWYER, based on anything you read here. That would be a really bad idea. Welcome. […]
The post Welcome to the “Reader Top Rated” Bankruptcy Blog by Robert Weed appeared first on Robert Weed - .
To my readers around the country, please keep in mind that I cannot give you legal advice. My answers here on this blog may help you think of things to talk about with YOUR LAWYER. DO NOT TRY TO BE YOUR OWN LAWYER, based on anything you read here. That would be a really bad idea. Welcome. […]
The post Welcome to the “Reader Top Rated” Bankruptcy Blog by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
Christopher Brandon Craner, 32, of Buhl, Idaho was sentenced to two years’ probation for concealing an asset in his bankruptcy case, which included personal interest from a boat. Part of Craner’s sentence includes a two month home detention with a $400 fine. His sentence comes after being charged with bankruptcy fraud-asset concealment. Craner filed for [...]
I regularly see clients who come into my office with a pre-determined notion of what they want and how they need to get there. They have either talked to friends or family about their situation and they come to me simply to see if I can help them accomplish their pre-determined solution. They are looking for a paper pusher, not an attorney.
Fortunately for my clients, I am not a paper pusher. I do not seek to take on every client that walks in my door and I do not seek to tell my clients what they want to hear simply so they will hire me. I do a formal intake where we look at every issue and every possible solution. We discuss the benefits of each. In some cases the client is right and the solution they came to me to discuss is the right solution. In other circumstances the solution the client seeks is either not possible, or simply not the best option for that particular client.
Earlier today I had an individual call me. He wanted some advice. Apparently I met with this individual approximately 3 years ago and I indicated to him that saving his home was not going to be in his best interest. Due to the totality of his circumstances a Chapter 13 bankruptcy would be to expensive and very unlikely to succeed. I suggest walking away from the home, filing a Chapter 7 and getting a fresh start on his financial future. This was the advise that he needed to hear.
Unfortunately, after leaving my office this individual went to another bankruptcy attorney to seek a second opinion. The other attorney told this individual exactly what he wanted to hear. Of course they could save the home. Of course a Chapter 13 was feasible. Of course everything the clients friends and family had told him was true. This individual was seeking this attorney’s aid and counsel and instead he received a sales pitch for the services the attorney wanted to provide instead of a realistic evaluation of the client’s circumstances.
Now the individual is three years into his plan and the case is a mess. He cannot afford to continue and he told me on the phone that all of my predictions are coming true. He now wants to come into my office to figure out the best way to move forward. He wants to convert his case to a Chapter 7. That may or may not be the best option. We will see when he gets here. Once again I am going to evaluate his case to determine what he needs to hear, not what you wants to hear. When you seek an attorney, make sure that you are not sold a product simply because it is what you told the attorney you wanted. Make sure you are given advice based on what you need to hear, not what you want to hear. Make sure the attorney does his job.
In recent years, as credit ratings and credit report information have become so important to everyone, cleaning up the credit report has become one of the most cited motives for filing bankruptcy. Unfortunately credit reporting agencies have often moved at a snails pace when it came to correctly reflecting debts as discharged in bankruptcy rather than as past due. Thankfully in the past few years, the big three credit reporting agencies have become considerably better
This change largely came about as a result of litigants successfully challenging the practices followed by these agencies in updating reports after bankruptcy. While the reporting has greatly improved, it is critically important that when you do file bankruptcy and obtain an actual discharge from the bankruptcy court, you take the next step and review your credit report six months after the discharge date to make sure that the debts are accurately reflected.
The reality is that most people bounce back incredibly quickly with respect to their credit scores in the eighteen months after discharge, but this process is going to be greatly slowed if the reports are not properly reflecting the status of the debts six months after discharge.
If you have filed bankruptcy in either Washington or Oregon and it was discharged at least six months ago, you should probably ask yourself whether you have really checked your credit reports thoroughly.
The original post is titled Credit Reports Now Reflecting Debts Discharged in Bankruptcy More Accurately. , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
Post-Petition Property Transfers
Every so often clients will ask me if they can sell, give away, deed, or transfer property after their bankruptcy is filed. I’m glad that they ask, because the consequences for a prohibited post-petition property transfer are steep.
Let’s quickly review how property works in bankruptcy. Once you file bankruptcy, all property becomes property of the bankruptcy estate. Exemptions allow you to protect equity in property, so that you can get a fresh start after the bankruptcy is completed. For example, if you have a house that is worth $200,000, and you have a $175,000 mortgage, then you have $25,000 in equity. That equity is 100% protected by the Washington State homestead exemption; and the trustee cannot force you to sell your house. However, you cannot sell the house or deed the house while you are in bankruptcy, unless you get written permission from either the court or the trustee.
You should get written permission to sell, give, transfer, deed, or transfer property as long as your case is open. So how long is your case open? It depends on the chapter you file.
If you are in a chapter 7 bankruptcy, your case is usually open for about 100 days. It is important to distinguish between getting your discharge and having the case closed. You get your discharge about 90 days after you file. The discharge is what removes your legal obligation to pay pre-petition debts, but it does not close your case. The case is closed when the trustee files a no asset report or a report that the administration of the case is completed, and the judge approves the report. Until the judge approves the report and the case is closed, the bankruptcy estate remains in existence.
If you are in a chapter 13 bankruptcy, the case will remain open until all of your plan payments are complete. Then the trustee will process a final report. Until the judge approves the final report and the case is closed, the bankruptcy estate remains in existence.
Depending on what you are proposing to do, getting permission can be as simple as having your bankruptcy attorney send an email to the trustee and wait for the trustee’s written response. In some cases, you will have to file a motion with the court. The bottom line, however, is that as long as your bankruptcy case is open, you must have proof that you got written permission from either the trustee or the court to give, sell, deed, or transfer any property.
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