The rule that Uncle Sam comes first, in bankruptcy, can be a life saver, even if the debtor is going to lose everything in the process. I was brainstorming with a colleague about his client who was about to suffer a huge judgment in state court. There were virtually no other creditors that made bankruptcy […]
Five Reasons To Break Up Couples
Consider that your job as a bankruptcy attorney may be to separate married couples. Huh, you say? Doesn’t the traditional wedding ceremony include the charge that “what God has joined together, let no man put asunder“? (I’ll let you know more when I’ve Googled “asunder“). But I suggest that although the code permits married couples […]
The Bankruptcy Thigh Bone Is Connected To The Hip Bone
The entire mass of information in the bankruptcy schedules is interconnected in ways our clients don’t always perceive. However, if they don’t get the interconnection, they may get a rude surprise. I have a list of Do’s and Don’ts that I give clients at the conclusion of our initial consultation. Got more evidence this week […]
Think Beyond The Means Test
It started as a means test question: could emergency medical expenses be deemed non consumer debt. It ended up as a step back to get the bigger picture. Well seasoned bankruptcy counsel brought the fact pattern to a list serve of colleagues. The prospective debtors’ income in a small consulting corporation is declining, his health […]
Bankruptcy Cases And Making Change Happen
The axiom that the only thing constant is change certainly applies in the practice of bankruptcy law. Our client’ s life changes and we’re looking to dismiss a case or convert a case to another chapter. The code deals with this. Section 348 addresses the effect of conversion; 349 follows with the effect of dismissal. […]
Know the Rules of Debt, Divorce & Discharge
Today let’s combine the themes of my last two posts here and talk about the obligation of a spouse to indemnify the other spouse in a divorce from the debts assigned to the spouse. The indemnity obligation is not one most lay people see as a “debt”. It doesn’t involve paying money to the ex, […]
Beware The Trustee Carrying Tax Losses
A tax loss carryforward in the hands of a bankruptcy trustee can have results as distressing as crayons in the hands of an unsupervised toddler. Identify the debtor’s tax attributes before you do your liquidation analysis. Whether you are selecting a chapter for a client, working exemption issues, or calculating what a Chapter 13 plan […]
