What New Bankruptcy Lawyers Need To Know: Beyond The Code

The Rules Of The Game Are Changing

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Change is coming- either influence it or don't complain. The proposed changes to the rules of bankruptcy procedure and to the official forms have been published and your comments are solicited. The comment period will remain open til February 15, 2014. There's no reason to wait til the last minute to be heard, however. I have been told repeatedly by many of those involved that each and … [Continue reading...]

Watch Your Language

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Pick your words carefully. Your clients will have to live with the results of your choice. Our challenge as bankruptcy lawyers is to extract, analyze, and present a huge amount of financial information. We have to get it from people who don't really understand why we need it, nor the consequences of not getting it. We are usually working for less money than the job we do is worth, so the … [Continue reading...]

When Appearances Are Deceiving

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

The judgment was for $500,000. Debtor's bankruptcy lawyer was stumped. How to schedule it? What's the problem? you ask. The half million dollar judgment was in the debtor's favor (did you see that coming?), and the debtor considered it uncollectable. I practice before the same Chapter 13 trustee. I know his intolerance for schedules that give assets or debts a value of … [Continue reading...]

Who Is Stupid Here?

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

The headline was "Are your clients really stupid?". Wait, wait. Hear him out. The answer isn't what you're tempted to respond. In a piece now gone from the web, Matt Homann, who describes himself as a recovering lawyer, adapted to lawyering a piece from the Bay Area tech world, suggesting that differences of opinions among co workers are more often due to different thinking … [Continue reading...]

Split The Sheets, Split The Debts, Then Watch Out

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

The marital settlement agreement that resolves a divorce often divides the debts between the couple. Simple, so far. But if the agreement includes an indemnification provision, you may have a bankruptcy issue that limits the breadth of the discharge or drives the choice of chapter. Hold harmless provisions The typical indemnification provision requires each spouse to hold the other … [Continue reading...]

Is The Price Right?

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

What's it worth? Another round of bankruptcy newbie questions suggests it's time to review small business valuation questions. Our hypothetical debtor supports his family working in an incorporated business that he wants to continue operating. He is the only shareholder. The scenario that prompted this post had the debtor reporting to his lawyer that the business was worth $100,000. … [Continue reading...]

RTFM*

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

I know gambling debts are non dischargeable, so we can't convert the Chapter 13. So said debtor's counsel whom I was trying to help with a troubled case. I wanted to retort: point me to the code section that says that. I tried gently to suggest it wasn't so. Not sure the "suggestion" penetrated. So we are back to where Bankruptcy Mastery started years ago: READ THE CODE. It is the … [Continue reading...]

Bankruptcy For Elders: Minefield or Mother Lode?

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

I commend to you the money problems of the elderly as challenging and underserved. The 70ish couple in my office came with their two adult daughters. Neither spouse appeared in good health. The good news was that they had substantial equity in their home; the bad news was that the equity exceeded the California homestead for the elderly. And the real estate market is rising. So, we were … [Continue reading...]

Who Is The Liar Here?

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

The mortgage mill lawyer on the other end of the phone tried to tell me my client is a liar. I bristled, but not for the insult. I bristled for the whopper opposing counsel was trying to feed me. Lenders don't reject loan mod applications because the borrower is current, he said. You know that's not true, don't you? You expect me to believe that? You might gull me if I'd only heard it … [Continue reading...]

The Bankruptcy Rules Of The Road

By Jill Michaux Filed Under: Bankruptcy Practice

Do you need to know how much notice to give on a chapter 13 plan? What happens when a debtor dies? How to file a proof of claim or object to one already filed? When is discovery allowed in bankruptcy? The answers can be found in the bankruptcy rules. Rules: The How To Manual The bankruptcy rules dictate how to report an inheritance four months after filing, how to file a motion for … [Continue reading...]

Axe Falls On Debtor’s Counsel

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Just when I think my work here is done, I have a week like last week. Everywhere I looked, the ax was falling on debtor's counsel. Deservedly so. My Chapter 13 trustee complains that her staff is knee deep in debtor lawyer inattention and mistakes. The UST brings disgorgement motion against lawyer who took fees, then let paralegal file case without disclosure. Lawyer barred from … [Continue reading...]

When Insurance Can Be The Death Of You

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Remember survey courses from college? Kinda like flying low over new territory without ever landing and getting on the ground? That's what I propose to do with the topic of insurance. Insurance, as we see it in bankruptcy. It isn't frequently a hot topic, but when it is, the numbers are large and the possibility for egg on your face is equally large. Policies owned by the debtor Insurance, a … [Continue reading...]

The More We Get Together

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Not a bad place for a weekend, eh? The NACBA convention was great. The two buildings on the left housed the convention. But I'm back in the real world, at home, in the realm of real people with real problems. Kudos to Tara Twomey who had a large hand in selecting the content of the weekend. She seemed to be everywhere, talking about NCBRC or the amicus project, or just taking the pulse of the … [Continue reading...]

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