Twice yesterday new bankruptcy practitioners asked about how to deal with debts or assets not listed in the debtor’s original schedules. The answer in either situation is amend the schedules. As soon as you know that the schedules are not accurate on a meaningful issue, make them accurate. Creditor left out For an omitted creditor, […]
Bankruptcy Schedules Look Forward and Backward
New bankruptcy lawyers are often frustrated by the internal inconsistencies required by the “reformed” Bankruptcy Code. Whether it’s rational or not, the means test income figure looks backward while the means test expenses set forth are prospective. Some of those prospective expenses are actual (taxes ) while others are contractual (mortgage payments). Social Security income […]
Answer to Every Question Starts in the Code
If Jews, Muslims, and Christians are People of the Book, we, as bankruptcy lawyers, are, or ought to be, People of the Code, the Bankruptcy Code. Virtually every question that a new bankruptcy lawyer asks ought to send her first to the code for a start. The Bankruptcy Code adopted in 1978, was well thought […]
Exemptions & Property of the Estate
Sometimes, as an inexperienced bankruptcy lawyer, it’s hard to get your head around the idea that your client can have an asset of substantial value and not need to exempt it when filing bankruptcy. That’s because only property of the estate is potentially available to pay the client’s creditors in a bankruptcy, and some assets, […]
Track Down All The Client’s Creditors
While a new client may seek out a bankruptcy lawyer when they are served with a lawsuit, they may overlook the plaintiff in that very suit when listing their creditors. Pretty amazing, but if you rely on the client to identify their creditors, their list will often omit creditors who didn’t send them a bill […]
Bankruptcy Cases Not Predictably Simple
I’ve been aghast at the willingness of lawyers brand new to bankruptcy practice to take on cases and issues far beyond their current competence. I’ve tried to gently counsel that both self preservation and the client’s best interest require the inexperienced to pass on cases beyond their present skill set. I realized just how glib […]
