I admit, up front , that I’m steamed. The clients in my office have a pending Chapter 13 case. People know the difference between a lawyer fighting a marijuana possession charge and bankruptcy case. They made an appointment with me because their bankruptcy attorney missed a hearing and doesn’t return their phone calls or respond […]
Learn Bankruptcy Shorthand: Till
Part of the lingo of bankruptcy practitioners are the names of notable bankruptcy cases that establish basic principles of bankruptcy law. Ever heard a Chapter 13 trustee or opposing counsel talk about the Till rate? Did you scour the Wall Street Journal looking for the published Till rate? Scour, instead, your favorite listing of hit […]
Don’t Fall for Excluding the Business Credit Card
Business owners facing bankruptcy are often firmly convinced that only their business is liable for the “business” credit card in their wallet. It sometimes takes more energy to persuade them that they are individually liable for that card than it does to convince them that life continues after bankruptcy. In fact, even when the business […]
Bankruptcy Debtors: Beware the Bank
Do you ask your prospective bankruptcy clients where they bank? It matters, you know, if they owe that bank money. The common law right of set off can make your client’s revered bank branch as big an enemy as the debt collectors. My clients are often worried about the collectors who call on the phone […]
Bankruptcy Planning & The Means Test
The rookie bankruptcy lawyer reported her client had borrowed from his 401(k) and proposed to pay down some taxes before filing. Two questions popped to my mind: Are the taxes which the client was worried about priority taxes? If so, would the absence of those taxes alter the results of the means test analysis? Debtors […]
6 Basic Points About Tax Liens in Bankruptcy
Everywhere I’ve looked this week, new bankruptcy lawyers are struggling with client tax liens. Here’s my list of basics you need to know about federal tax liens. Tax liens create a secured claim in favor of the taxing authority. That claim incurs interest at the statutory rate. Exemptions, bankruptcy or state, are not effective against […]
Bankruptcy Checklist: Social Security Numbers
Do you check the client’s proffered Social Security number against the number on their tax return? I’d never thought to do so til my partner returned from a 341 meeting with this story. She was sitting waiting for our client’s turn at a first meeting of creditors when the trustee asked a debtor about […]
