April 26, 2008

• Bankruptcy Implications of a School Board's Loss of Accreditation

  My colleague, attorney Scott Riddle, posted a very interesting observation in his Georgia Bankruptcy blog about the bankruptcy implications of Clayton County, Georgia's school accreditation fiasco.  For those unaware of the situation, the Clayton County School System is about to become only the third school system within the past 20 years in the United States to lose its accreditation. (…)

April 2, 2008

• Foreclosure Practices in North Georgia Come Under Scrutiny

  The New York Times published an investigative report on March 30, 2007 entitled Foreclosure Machine Thrives on Woes.  The article addresses what has become a growing problem in bankruptcy cases:

  out of control fees and costs added to mortgage loan balances failure of mortgage companies to properly account for payments refusal or failure of mortgage companies and their counsel to resolve disputes amicably

  The Times tells the story of a Georgia couple - the Atchleys - who filed Chapter 13 and paid their mortgage but found themselves on the receiving end of multiple motions for relief asserting that mortgage payments had been made.  In addition to the stress and cost of dealing with these inaccurate motions (which would be withdrawn at the last minute), the Atchley's discovered that their payoff balance was being adjusted higher and higher with questionably fees and costs.  The Atchleys eventually sold their house but now the United States Trustee has sued Countrywide claiming that its pattern of conduct was an abuse of the bankruptcy system. (…)

March 4, 2008

• What Happens to Your Car Accident Claim Rights if the Defendant Files Bankruptcy?

  Imagine that you are involved in a car accident that was not your fault.  You hire a lawyer who files suit against the negligent driver asking for damages.  Thankfully the other driver has insurance, so if you win your case, there will be a source of recovery.  Now imagine that right in the middle of this process, the negligent driver files a Chapter 13 bankruptcy.  What are your rights?  Can you still pursue insurance proceeds.  Does the negligent driver’s insurance company get leverage over you because of the bankruptcy filing? (…)

February 21, 2008

• How Does My "Stimulus Package" Check Affect My Bankruptcy

  I have received several emails over the past few weeks asking about the impact of the $600 to $1,200 check that many of us will receive in May as part of the Bush stimulus package.   My colleague, Dana Wilkenson explains the impact in her post on the Bankruptcy Law Network blog:

  If you are already in a bankruptcy, the tax rebate may have no affect on you at all. (…)

January 29, 2008

• Atlanta Business Chronicle Spotlights Soaring Bankruptcy Filing Rates in Atlanta Metro area

  Last week's edition of the Atlanta Business Chronicle includes a series of articles entitled "Falling into Recession."  One of these articles focuses on the high number of bankruptcy filings in the Atlanta area.  Judge Joyce Bihary, the chief judge in for the Northern District of Georgia Bankruptcy Court is quoted extensively in this article.  Judge Bihary asserts that the poor mortgage choices by homeowners has resulted in high default rates and record numbers of bankruptcy filings.  The judge calls for improved financial literacy to help homeowners better understand mortgage products on the market and to avoid taking on more mortgage debt than they can afford. (…)

January 15, 2008

• Will the Trustee Seize 100% of a Tax Refund if Only One Spouse Files Bankruptcy?

  My question is if someone comes to you to file BK individually, but she is due a tax refund that is in her name as well as her husband's, could the bank trustee only take 1/2 of the refund since the other 1/2 is considered an asset of her husband who is not filing? (…)

September 19, 2007

• Credit Card Balance Transfer Issues

  Back in April, I wrote a post about the issue of balance transfers and Chapter 7 bankruptcy.  In this post I note that balance transfers were dangerous because from the perspective of the new credit card issuer, the transfer was new debt.  In other words, if you have been carrying a $10,000 balance on your Discover account, for 5 years, and two weeks ago you transferred this balance to a new Citibank account to get a better interest rate,  that $10,000 debt is new debt as far as Citibank is concerned. (…)

September 14, 2007

• Will a Bankruptcy Filing Stop the Enforcement of a Judgment Lien

  First - I LOVE your blog - you have great info!!  Little background.  Discover card sued us for around $15,000 on cc debt, we disputed etc and after going back and for in court the attorney who BOUGHT the debt filed for summary judgment, we filed for a motion to reconsider. (…)

August 22, 2007

• Five Years is a Long Time for Rice and Beans

  The October, 2005 changes to the Bankruptcy Law have forced many debtors into five year Chapter 13 plans. (…)

August 16, 2007

• The Date You File Your Bankruptcy Case Can Have Important Consequences

  Your decision about when to file your Chapter 7 or Chapter 13 bankruptcy case can have important and far reaching consequences with regard to the bankruptcy relief you obtain.  Here are some considerations about which you should be aware:

  Semi-annual Changes in the U.S. (…)

May 28, 2007

• Can I Include Past Due Apartment Rent in My Bankruptcy, Avoid Eviction and Stay in the Apartment?

  Can I file $1000 of back rent owed to landlord and protect myself from eviction in the future? I am currently not under a lease. (…)

May 19, 2007

• CCCS vs. Bankruptcy - What Makes the Most Sense?

  I am sitting here wondering two things…am I qualify to file bankrupcy and should I file bankrupcy. I have unsecured debts…c/Cards and student loans avg. 50,000. (…)

March 11, 2007

• Credit Card Offers on the Rise as Your Bankruptcy Options are Reduced

  Notice more credit card solicitations in your mailbox?  If so, it is no illusion.   Attorney Cathy Moran, writing in her informative "On the bankruptcy soapbox" bankruptcy blog reports that since the October, 2005 effective date of the new bankruptcy law, credit card companies have sent out 8 billion solicitations, an increase of 1.5 billion from the year before. (…)

February 5, 2007

• Does Chapter 13 Debtor Get to Keep Sale Proceeds if Fair Market Value of Home Goes Up During Chapter 13?

  A Chapter 13 client contacted me this morning with a somewhat unusual situation.  She called because she has been in her Chapter 13 case for almost exactly three years and she wanted to pay off her case and get out of bankruptcy. (…)

December 29, 2006

• We're #1 - Georgia Leads the Nation in Bankruptcy Filings

  Today's Atlanta Journal-Constitution reports that Georgia now leads the nation in bankruptcy filings.  More bankruptcies were filed in Georgia in 2006 than in any other State.  Over 29,000 petitions were filed in Georgia during the first three quarters of 2006, surpassing California (27,000 petitions), Texas (almost 26,000 petitions) and Ohio (25,000 petitions). (…)

December 27, 2006

• Homestead Exemptions and New Georgia Residents

  My colleague, Massachusetts bankruptcy attorney Bill McLeod, published an interesting post about homestead exemption caps and pre-bankruptcy filing transfers of property in his McLeod Law Offices blog.  Bill's post reminded me that if a debtor acquires an interest in real property within 1215 days of filing for bankruptcy, the debtor can only exempt $125,000 of equity in property. (…)

December 19, 2006

• 401(k) Loan Repayments Not Allowed in Means Test Calculations

  Evidence continues to mount that Chapter 7 will not be a friendly place for debtors who end up in the means test.   As you know, you can only qualify for Chapter 7 if (1) their household income falls below the average income for a similarly sized family in your State, or (2) if your household income exceeds the average income, but you pass the "means test." 

  The means test sets out a budget using expense numbers that the IRS has deemed "reasonable."  If your actual expense for a particular category exceeds the IRS number, too bad. (…)

December 17, 2006

• Chapter 13 Plan Strategies for Self Employed Debtors

  With an increased emphasis in the new Bankruptcy Code upon a debtor's income history, self-employed or commissioned sales debtors will find a hostile reception in Chapter 13.  A recent case on which I have been working illustrates the problem. (…)

December 12, 2006

• Comparison Shopping in the Sub-Prime Mortgage Market

  The Credit Slips blog regularly posts interesting commentary about credit and bankruptcy and I recommend that any reader of this blog take a look at it.  The December 11, 2006 post by Kathleen Engel and Patricia McCoy about the nature of the sub-prime lending marketing is an insightful read.   Professors Engel and McCoy note that in the sub-prime market, consumers with poor credit must submit detailed financial information and an application fee before being approved for a loan.  By contrast, borrowers with good credit can usually get a free "good faith estimate" over the phone or by email. (…)

December 8, 2006

• Trustees May Seize Exempt Property to Pay Domestic Support Obligation Debts

  If you owe child support or other domestic support obligations, your exempt property is subject to seizure and sale by your bankruptcy trustee.  This provision is one of many in the new bankruptcy code that limits or eliminates bankruptcy protection for individuals who owe child support or alimony. (…)