Love and Marriage. Fries and Catsup. Chips and Dip. Like these famous pairings, divorce and bankruptcy are frequent companions. When a couple goes their separate ways, often the most substantial marital accumulation is debt. The questions we get as bankruptcy practitioners usually revolve around whether to file a bankruptcy case before or after the divorce. […]
Sneak Attack On Consumer Rights
Tax code changes effective in 2018 inflicted a crippling blow to consumers who must sue to enforce their rights. And few have yet noticed. The tax deduction for miscellaneous itemized deductions under IRC Section 212 is gone. So now, consumers who prevail under statutes that award attorneys fees to the successful plaintiff are denied a […]
Chapter 13 NoLook Fees: Fair vs. Affordable
I’ve long campaigned for compensation of bankruptcy practitioners that recognizes the practitioner’s skill set and the complexities of this practice. Without real-world compensation, bankruptcy can’t compete for legal talent. Alongside that campaign, I’ve expressed my concern about what Bill Rochelle calls the overlegalization of consumer bankruptcy. I see that in the increasing, and needless in […]
Debt Buyers Pay A Lot Post-Taggart
You know it won’t go well for the creditor in a discharge violation case when the opinion opens by characterizing the debtor as a single mother and registered nurse who discovers her $20K bank balance is now negative. And sure enough, the debt buyer trying to collect a two-decade-old credit card debt ended up $64,000 […]
Sua Sponte Monetary Sanctions Against Counsel
The 9th CIr. BAP erected a high bar for the imposition of monetary sanctions against counsel in its recent decision in Franz. Despite some ugly facts and imperfect lawyering, the BAP overturned $5000 in sanctions against a Chapter 13 debtor’s lawyer, finding counsel’s conduct did not rise to a level akin to contempt of court. […]
What Goes Into The Liquidation Analysis
The liquidation analysis is central to every form of consumer bankruptcy. Yet too many attorneys think the formula is Assets minus Secured Debts minus Exemptions = Distributable estate Not by a long shot. So let’s walk through the elements of a comprehensive liquidation analysis. You need it if you’re assessing the vulnerability of assets to […]
Getting Started In Bankruptcy Law
Everyone new to bankruptcy needs a guide to this specialized legal realm. Just as you can’t tell the players without a scorecard, it’s hard to make heads or tails of bankruptcy law when it’s new to you. Jon Hayes has what you need to tell priorities from the absolute priority rule. Exemptions from exclusions. Denial […]
