Debt Settlement Scams You are an honest person. You are desperate to find a way to pay your bills, but your paycheck just doesn’t stretch far enough. You are robbing Peter to pay Paul. You see commercials on TV and the Internet promising to solve your financial problems. Your guts tell you the “solution”…
In re Karr, (Bkrtcy.D.Kan.) (Judge Somers Case No. 09-20008. February 24, 2011: Discharge – Intent to defraud could be inferred from circumstances surrounding diversion of funds. A Chapter 7 debtor’s conduct in the year preceding the bankruptcy filing of his wholly-owned corporation, in using the corporation as a piggy bank to pay personal expenses of…
A common question I get this time of year is whether the trustee will take the debtor’s tax refund if he files for bankruptcy. The answer depends upon many factors. Talk to your bankruptcy lawyer. Don’t spend your tax refund until you know for sure your bankruptcy trustee does not claim it. Spending a tax refund instead…
Since the bankruptcy laws were changed in 2005, it is VERY HARD to file a bankruptcy petition without an attorney. The process is difficult and you may lose property or other rights if you do not know the law. The New York City Bankruptcy Assistance Project says, currently, about 9 out of 10 self-prepared bankruptcy…
Peddling Relief, Firms Put Debtors in Deeper Hole Video: Unsettled Anxieties Debt Settlement Plans Run As Fast As You Can
Kansas debtors have less errors on their bankruptcy paperwork than the national average, according to the report just issued by the U.S. Trustee. “Material misstatements” were reported in 12% of the audited cases, compared with 22% nationwide, although the report does not say just how serious the errors were. The federal government audits bankruptcy cases…
INTENTIONAL DESTRUCTION OF COLLATERAL? In re Murrow, Case No. 07-41061 March 2008, Judge Karlin Creditor was give an additional time to amend its complaint. Debtor took the 5th but the intimation of the discussion in the decision is that debtor likely intentionally destroyed the vehicle but insufficient facts were alleged. Digest by: Jan Hamilton, Trustee
DEBTORS MAY BE CONVERTED TO 7 EVEN THOUGH NOT ELIGIBLE FOR 7 DISCHARGE In re Rogers, Case No. 08-21487 January 2009, Judge Somers In a case in which assets may be liquidated, a 13 may be converted to a 7 even though debtors may not be eligible for a 7 discharge. Digest by: Jan Hamilton,…
FAILURE TO OBTAIN CREDIT COUNSELING—EXIGENT CIRCUMSTANCES In re Thomas, Case No. 06-10242 March 2006, Judge Nugent Pro se case dismissed for failure to obtain credit counseling. Certificate of exigent circumstances which recites pending foreclosure insufficient, case dismissed. 109(h)(1).
One in 1000 bankruptcy cases are randomly selected by the U.S. Trustee for audit. When that happens, the debtor is sent a letter requesting copies of the following documents: Payment advices [paystubs] from an employer covering the six calendar months preceding the date of filing for the debtor and the debtor’s spouse. Federal income tax…
Avoidance powers: Rights given to the bankruptcy trustee (or the debtor in possession in a Chapter 11) to recover certain transfers of property such as preferences or fraudulent transfers or to void liens created before the commencement of a bankruptcy case. More on preferences.
