Bankruptcy

10th Circuit: Legal Interest Acquired Post-petition is Property of the Estate

Posted on September 17, 2008
When someone files bankruptcy, an estate is created. The property in the estate is defined in the Code, and it is the property in the estate that is used to pay creditors. But how do you value property of the estate if the nature of the interest held in the real estate changes after the petition date? On Friday, the 7th Circuit Court of Appeals answered that question...

Storm Preparation: Only So Much

Posted on September 17, 2008
Over the last several months, I?ve blogged about issues people should consider if they think bankruptcy is on the horizon. I called it ?Storm Preparation? because I have sensed for some time now that financially, things were going to get worse, and I wanted readers to think about issues ahead of time to avoid problems down the road...

WhatsaMatta with WaMu?

Posted on September 09, 2008
So yesterday I received this letter from WaMu: Dear William McLoud [sic]: Our customer (my client) informed us of his/her intent to file (chapter 7) bankruptcy. We realize this decision was not an easy one. We would like to resolve this matter and offer an alternative that may minimize the negative impact that filing for bankruptcy can have on your client?s credit and employment opportunities...

Overspending and Bankruptcy

Posted on September 03, 2008
I was motivated to blog after reading about a study out of the University of California, Davis that claims that overspending is what leads people into personal bankruptcy. Over-spending. Should we congratulate them for mastering the obvious? Don?t get me wrong, I know that people spend more than they can handle (this might actually come as a tremendous surprise to the folks at UC?but many businesses, and governments, such as the federal government of the United States, do the same thing)...

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Storm Preparation: Plan B

Posted on September 03, 2008
Recently, I have foun that it is more chapter 13 clientsl contact mes within just a few weeks of a foreclosure auction. Sometimes, it?s just a few days. And even sometimes it is the next (or even the same) day. Never before have I spoken to them. Never before have they contemplated bankruptcy...

Today's News...

Posted on August 20, 2008
While many might be on vacation, I was too busy to pull together a Storm Preparation for today. I did however manage to find a few news items. Remember Filene?s? This gaping hole? which looks like England after WWII - is about a block from my office...

Are Short Sales Just Silly?

Posted on August 15, 2008
It?s a question I have been asking myself of late. A Short Sale is when a lender (the mortgagee) agrees to release the mortgage from the property so that it may be sold to a buyer for less than when is owed on the mortgage. I am hearing that many people are exploring short sales as a means of ?avoiding foreclosure...

The Easy Life of a Consumer Bankruptcy Attorney

Posted on August 14, 2008
Every now and then, I get a call from someone who already has a bankruptcy case pending. Sometimes, they do not like how things are going with their attorney. Other times, they don?t have one at all and find that they are in over their head. And sometimes, by the time they are calling me, they find themselves in what can best be described as a world of hurt...

Storm Preparation: Letting Go and Moving On

Posted on August 13, 2008
I write the Storm Preparation series for those folks out there who are considering bankruptcy but just aren?t there yet. I know they are out there because they tell me ? usually weeks and months after following this blog (and doing their own research and homework) and getting the courage (or in some cases a summons to appear which prompts them) to call...

Equal and Monthly Payments: The Voyage of the Balloon

Posted on August 11, 2008
May a debtor propose a chapter 13 plan that provides for the payment of mortgage arrears with regular monthly payments followed by a balloon payment at the end of the plan? So far, the answer is still no (although the issue is still working its way through the courts)...

Late Filing of Documents = Dismissal

Posted on August 07, 2008
One of the goals of BAPCPA (the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005) was to prevent abuse by debtors. One of those abuses targeted were ?repeat filers? and another was the failure to file documents. If schedules and other documents are not timely filed, the court is obligated to dismiss the bankruptcy case...

Free Foreclosure Prevention Workshop

Posted on August 06, 2008
We are passing this information along. People who attend are encouraged to let us know how or if they found the help they need. HOPE NOW Alliance in partnership with NeighborWorks® America, The New England Patriots Charitable Foundation and the Federal Reserve Bank of Boston will host a foreclosure prevention workshop at Gillette Stadium on Tuesday, August 12, from 1:00 PM ? 8:00 PM...

Storm Preparation: Over Withholding

Posted on August 06, 2008
Many people over withhold taxes on their paychecks. In other words, they have more taken out so that come April 15, they will expect a nice refund rather than having to pay more to Uncle Sam. But over withholding can make preparing for a bankruptcy filing a little difficult...

"Stated Income" Loan Discharged Despite False Representations on Application

Posted on August 01, 2008
One of the focuses of my bankruptcy practice is litigating Adversary Proceedings. I came across a case out of the Northern District of California. The first sentence under the heading of ?Summary of Facts? read: ?[t]his adversary proceeding is a poster child for some of the practices that have left to the current crisis in our housing market...

Thursdays news...

Posted on July 31, 2008
The look on his face says it all: the story behind that stray 44-pound cat from New Jersey is actually not so funny any more. Next stop, Wonderland: who will think about the dogs? Are we in a recession? Yes, we are. No, we?re not! Yes, we are!

Storm Preparation: Chapter 13 and DSOs

Posted on July 30, 2008
When BAPCPA was enacted, a new concept in bankruptcy law emerged: ?domestic support obligations? or "DSOs". Child support, alimony and other support obligations received specific consideration in bankruptcy, and in particular, chapter 13. If you are looking at the potential of a bankruptcy filing, there?s something you need to know about how domestic support obligations and chapter 13 work together...

Storm Preparation: Some Thoughts on What We Can Do

Posted on July 23, 2008
I didn?t sleep well last night. I tuned into the 11 o?clock news and learned about a Taunton homeowner in foreclosure who committed suicide on the day her home was scheduled to be auctioned. Since Wednesday is Storm Preparation day, the news story prompted me to get down to the nitty-gritty of things: reaching out...

Tuesday's News...

Posted on July 22, 2008
Shocker: BAPCPA put more profits into the pockets of credit card companies says Harvard Law Professor Elizabeth Warren. Yesterday I blogged about honesty in the bankruptcy. Today, there?s a report out of Wichita of a former debtor who was not so honest...

A Shakedown Backfires

Posted on July 21, 2008
This week?s Newsweek has a great article on the abusive tactics debt collectors are increasingly using. The article is called "A New Shakedown? and it?s worth the read ? especially in light of the shakedown a creditor recently pulled in a Nebraska bankruptcy case...

Honesty Goes A Long Way

Posted on July 21, 2008
Today I received a call from a prospective client who was upset with their current bankruptcy attorney. They claimed that their current attorney was not giving them accurate advice, specifically, that the attorney had informed them that information pertaining to a non-filing spouse?s income and expenses was not needed to prepare a bankruptcy filing...

Lessons in Loan Modifications

Posted on July 17, 2008
Suze Orman is growing on me. Sort of. She often has sage advice for consumers, and lately she has been making regular appearances on CNN?s Larry King Live. I cannot say I completely agree with everything she says, but lately, she has been telling it like it is and when it comes to financial news and advice, it's refreshing to see some honestly on TV...

Who's Happy about this Economy?

Posted on July 16, 2008
Yesterday, I met with a couple where we discussed their need to file bankruptcy. The husband expressed embarrassment at their decision to file and (like many of my clients) expressed concern that their employer or coworkers could learn about it. I did not think it was a possibility, and I told them so...

IndyMac Update: Foreclosures are halted

Posted on July 14, 2008
From Reuters: The Federal Deposit Insurance Corp has temporarily halted any foreclosures on the $15 billion of bank-owned mortgage loans found in IndyMac's portfolio, FDIC Chairman Sheila Bair said on Monday. Hat tip: Calculated Risk.

Hope Floats (or Sinks)

Posted on July 14, 2008
We?re hearing a lot about ?hope? lately. Recently, I met two people in seemingly hopeless financial situations who are relying on hope to get them through. There is hope. Then there is denial. And sometimes, it can be difficult to see the difference between the two...

Rumor Control: TheStreet.com gets it wrong.

Posted on July 10, 2008
With the limited exception of realizing while in court that I have worn two different colored socks and I am convinced that everyone can tell, there?s nothing that drives me more nuts than exaggerated and half-baked claims about bankruptcy. A recent article on TheStreet...

Charge (not so) Smart

Posted on July 09, 2008
Housing Wire reports that there is a new company that will allow consumers to use their credit cards to pay their mortgage payments. ?Our offering is perfect for the individual who may experience an unexpected lifestyle change such as a temporary income interruption or fluctuation,? said Mitch Friedman, co-founder of ChargeSmart, ?or for the savvy consumer who wants to earn rewards for the ease of using his or her credit card for payment...

?I Need to Get Through the Winter?

Posted on July 07, 2008
For weeks I have wondered what impact the high price of home heating oil was going to have on people who need it. Would it push them into bankruptcy (or worse)? Since it is usually an accumulation of things that leads one to file bankruptcy, there is no clear way I can predict that the price of oil is going to push people over the financial edge...

In CONGRESS, July 4, 1776

Posted on July 04, 2008
The unanimous Declaration of the thirteen united States of America, When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation...

Inaccurate Schedules Lead to Discharge Denial

Posted on July 02, 2008
There is any number of ways that a debtor can get a discharge denied, and certainly, I have blogged about them here. One of the big ones is the most obvious: lying. I came across a recent case out of the Southern District of New York that should serve as a warning to all debtors ? and especially to those debtors who think they can file bankruptcy without an experienced bankruptcy attorney...

Storm Preparation

Posted on July 02, 2008
As I write this, there is loud thunder clapping outside. I did not bring an umbrella to work. Obviously, I am not prepared today. And unfortunately, I'm too busy to put together a respectable Storm Preparation blog today. So I'm going to take a short break from that for both this week and next...

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