It is well known throughout the legal community that when a debtor files for bankruptcy everything surrounding the bankruptcy comes to a halt. This includes any other cases or hearings that are brought in state court or otherwise. In a recent case an overzealous creditor learned the consequences of pursuing litigation against a debtor who […]
The Bankruptcy Estate
The potential filer for Chapter 7 bankruptcy should understand that in such a bankruptcy there is not plan of repayment on the part of the debtor, like there is in a Chapter 13 bankruptcy. What occurs in a Chapter 7 is the creation of what is known as the “bankruptcy estate.” Under 11 U.S.C. § […]
Life Insurance Proceeds and Your Choice in Federal or State Exemptions
In a Chapter 7 Bankruptcy, what generally occurs is that a debtor’s assets are liquidated and the proceeds of the sale go to the repayment of their creditors. However under both Federal Law and State Law a debtor can claim a number of exemptions based on the type of assets that are being liquidated. Under […]
Why You Should FIle Bankruptcy Now…and Why Delaying Makes You Feel Better
Originally published in the Bankruptcy Law Network here It’s an old saying among bankruptcy attorneys that their clients should have seen them at least a year ago. If they did, they wouldn’t have done all of the things that cost them lots and lots and lots of money: Taking money out of retirement programs to […]
Prior Tax Debt Could Burden a Debtor Post-Discharge
A recent case has left a debtor who has received a discharge pursuant to a Chapter 13 plan saddled with a significant amount of old tax debt. The Bankruptcy Court recently dismissed a debtors complaint and held that their tax debt was unaffected by the bankruptcy because “the lien was not addressed and treated in […]
