One of the traps for debtors instituted with BAPCPA is the provision that an individual’s bankruptcy case be closed without a discharge if proof of completion of a financial management class is not timely filed. Rule 1007(b) requires the filing of the certificate of debtor education as among the debtor’s duties. Section 727(a)(11) provides that […]
Ask “Why Me?” When It’s Chapter 11
Young bankruptcy attorney was approached to file a Chapter 11 for an LLC developing a condo complex, with a foreclosure sale looming. Should they take the case, she asked me. For all the reasons I’ve written before, I thought no, not this case, not now. After we discussed the difficulties of a single asset case […]
Household Size Vanishes From Means Test Form
Drafters of the official bankruptcy forms have excised “household size” from the B-22 where we calculate the part A IRS standard allowances. In its place is “applicable number of persons”, which the form indicates is the number of exemptions the debtor would currently be allowed on their tax return plus the number of other persons […]
Rich Personal Finance Resource For Clients
Introduce your clients to Money Health Central, a sound source of ideas and tools for those struggling with debt or looking to reorient their financial lives after bankruptcy. I know it’s good stuff because I write it with 5 good friends who are also bankruptcy lawyers. This isn’t a site about how bankruptcy works, but […]
Swimming Upstream Against The Current of Client Optimism
Inflated value provided by client in bankruptcy schedules comes back to bite debtor when Chapter 13 plan collapses. The client’s case was driven by substantial taxes and a vehicle she just had to keep. The asset mix included a timeshare which, even at the start of the recession, she valued at far more than I […]
Taxes, Bankruptcy & The New Year
Consider delaying the filing of Chapter 13 cases where the debtor expects to owe taxes for 2010 til January. Otherwise the tax for 2010 is a post petition debt not easily payable through the Chapter 13 plan. It’s December and I’m trying to be thorough in asking Chapter 13 prospects whether they will owe taxes […]
Where Are The Answers For The Consumer Bankruptcy Lawyer?
Tell me what to read if my client has Issue A, and what to read if they have Issue B, the rookie bankruptcy lawyer asked. Other readers voice the same plaint: tell me where the answers are for practicing bankruptcy law. Well, I have some good news and some bad news. The bad news is […]
