Bankruptcy Mastery

Becoming a better bankruptcy lawyer

Why Realization Dawns Too Late

By Filed Under: Bankruptcy Practice

This time, I have a question for you. How do we get laymen to see a situation as one involving legal rights rather than just a "life event"? That question was asked of the audience at a training on new legal rights created by the California Homeowner's Bill of Rights.  That bill includes protections for tenants in properties foreclosed. The presenters admitted that the biggest challenge … [Continue reading...]

Got These Dates?

By Filed Under: Bankruptcy Practice

Friday The Chapter13 trustees ' Academy is sponsoring a free Means Test webinar Friday, April 19, 2:00 Eastern/1:00 Central. (Somehow they forgot to hold the hands of those of us in the Pacific time zone.  My sources say that would be 11 am. PDT.) Projected Disposable Income (a/k/a Expected Unrecognizable Outcome):  United States Bankruptcy Judge Fredrick E. Clement and Chapter 13 Trustee … [Continue reading...]

Projecting Tax Expense In A Life In Flux

By Filed Under: Bankruptcy Practice

When your client's tax situation is changing, projecting taxes for the means test becomes more challenging. We talked earlier about correcting projected taxes for means test purposes when the situation is stable and the debtor is either under or over-withheld. When there are more moving parts, for tax purposes, you've got different adjustments to make. Loss of deductions The most frequent … [Continue reading...]

Business Bankruptcy and The Bingo Effect

By Filed Under: Before filing, Business bankruptcy

phantom creditors

The lives of business bankruptcy clients are peopled with a less than obvious cast of creditors. You need to flush them out and herd them in line before the case is filed. Near miss I had a close call, or rather my client had a close call, this week when some new information just slipped out. Thankfully, it was prepetition. The client, a very bright entrepreneur,  thought that … [Continue reading...]

Tax Withholding Not Etched in Stone

By Filed Under: Bankruptcy Practice

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Taxes are one of the means test expense items that I have labeled as a gamechanger. Those gamechangers are entries on B-22 where a thorough bankruptcy lawyer has an opportunity to significantly alter the disposable monthly income. Facility here starts with the concept that the "right" tax figure may not be what's been withheld from the debtor's paycheck.  Expenses are forward looking With … [Continue reading...]

What’s It Worth To You?

By Filed Under: Chapter 13

Business valuation

If all the children in Lake Woebegon are above average, all the small businesses our clients run are quite valuable. If the Chapter 13 trustee is asking the question, anyway. I rail when the Chapter 13 trustee's business questionnaire asks "how much would you sell your business for." Phrased that way, the question implicates all kinds of facts that aren't in play in Chapter 13. First, … [Continue reading...]

Hat Tip For Timeless Little Tips

By Filed Under: Bankruptcy Practice

It's the little things that count. My life in the law is so much richer and more productive as a result of help, encouragement and brainstorming I've shared with lots of marvelous mentors and friends. But two people stand out, not just for their generousity with their knowledge, but for the common here's-how-you-get-it-done tips. My hat's off to David Leibowitz and April Charney for … [Continue reading...]

The Savvy Move: San Diego For NACBA Convention

By Filed Under: Bankruptcy Practice

Sunshine, camaraderie, and CLE. Three days in San Diego for the NACBA 2013 Convention. No need to chew on it.  Sign up. The early bird discount expires 3/15/13. There's no place else where you can get such a marvelous mix of the latest developments in consumer bankruptcy law and the practical how-to's from lawyers who've done this for decades. Alongside the old reliable programs on … [Continue reading...]

Old Lesson From Innovation Event

By Filed Under: Bankruptcy Practice

  The most important thing I learned at a half day spent at ReInventLaw Silicon Valley had little to do with the conference's theme of  law, technology, and innovation. In fact, it was very old school idea that stuck with me: communicate with your client. Give the client greater visibility into the value you are providing. Henry Jones was addressing the problems of big law firms, … [Continue reading...]

Dealing With Joint Debt And Business Struggles

By Filed Under: Bankruptcy Practice

sole proprietorship locked up

Early in this series on business bankruptcy issues, we focused on figuring out just who is liable for each debt. Many people check over here with several doubts regarding business. Is it the shareholder, sitting across the desk from you, or is it the corporation that person runs? The life of a bankruptcy lawyer is simple when the answer is either one or the other. Not so simple when the answer … [Continue reading...]

Double Up On Exemptions

By Filed Under: Bankruptcy Practice

Now's the sweet spot for bankruptcy exemption planning: before April 15th. Up until April 15th, a debtor can contribute to an IRA for last year and this year. Double your pleasure, double your fun. For an individual under 50, that's $10,500 that can be sheltered from creditors, thanks to §522(n).  Five thousand dollars for 2012, and five thousand five hundred dollars for 2013. Double … [Continue reading...]

Lien Strip Cases Are Time Bombs

By Filed Under: Bankruptcy Practice

They are coming to get you. It's true:  I've now heard it from two bankruptcy judges in the space of three weeks. And it makes sense. Wall Street has created an entity to buy up stripped off junior liens.  They expect to challenge the validity of the strip-off as home values improve. They think there's money to be made, on our mistakes, if they only succeed in 1 in 50 cases. I … [Continue reading...]