As the economy worsens, unemployment rises and family incomes are dropping, getting bankruptcy help gets a little tougher.
The bankruptcy income guidelines go down a few hundred dollars for Kansas cases filed on or after March 15, 2010. While this change probably won’t disqualify many debtors, the downward trend is disturbing and more evidence the means [...]
Topeka Attorneys Helping You Get The Fresh Start Only The Federal Bankruptcy Laws Can Give You
Tag Archive: bankruptcy
Bankruptcy Means Test Meaner as Family Incomes Drop
Debtor May Be Converted to 7 with No Discharge
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, Trustee
Surrendered Collateral Doesn’t Count on Bankruptcy Means Test?
22C EXPENSE NOT PERMITTED ON SURRENDERED COLLATERAL
In re Miller, Case No. 07-22927
December 2008, Judge Somers
This decision ties to the concepts enunciated in the various Lanning decisions, i.e., to
what extent may post petition changes in circumstances be considered in determining
what is to be paid by an above the line debtor. Digest by Jan Hamilton, Trustee.
Income and Expenses After Bankruptcy Change Chapter 13 Means Test
REITERATION THAT INCOME AND EXPENSE CHANGES MAY BE
CONSIDERED POST PETITION IN 13.
In re Tholl, Case No. 07-22677
December 2008, Judge Somers
Court reviewed and followed the Melvin decision regarding changes of income and expenses after the filing of the chapter 13 bankruptcy but prior to confirmation of the chapter 13 bankruptcy plan.
Chapter 13 Bankruptcy Payments
Chapter 13 bankruptcy debtors are responsible for making their plan payments to the trustee. No excuses.
This is true even if your payments are supposed to be deducted from your paycheck. If no deduction is taken out of your check or if your employer does not remit the money to the trustee, you are still responsible [...]
What Happens to Divorce Debts in Bankruptcy?
Debts in the nature of support of child or former spouse are not discharged in either chapter 7 or 13 bankruptcy.
What about property settlement debts? If the divorce decree contains a hold harmless obligation that makes one spouse indemnify the other spouse, then the hold harmess oglibation is a separate debt to the spouse and [...]
Why Did They Stop Sending My Mortgage Statements After Bankruptcy?
Most home mortgage lenders who send monthly statements to their borrowers will stop sending statements once a bankruptcy is filed. They will stop withdrawing automatic payments form your bank account. They claim sending the statements and withdrawing your funds might be seen as a violation of the bankruptcy automatic stay on collection and they [...]
Cold Weather Rule Applies in Bankruptcy
The Cold Weather Rule protects Kansas residential utility customers who cannot fully pay their winter electric or gas bill from shutoff. The Cold Weather Rule will be in effect from November 1 to March 31.
The Cold Weather Rule generally prohibits any disconnection of service when the local National Weather Service forecasts that the temperature will [...]
Timeshare Debt Allowed on Means Test, Adult Child Disallowed
MORE LINE BY LINES OF B22C
In re Hays, Case No 07-41285
April, 2008, Judge Karlin
13 Trustee objections to debtor’s attempts to claim living expenses for non-dependent debtors as well as for secured debt on a timeshare. Court followed Law and disallowed adult child expenses. The Court allowed the debt on the timeshare to be deducted. The [...]
Nonworking Adult Son Not Counted in Household
B22C CASE, LINE BY LINE…
In re Law, Case No. 07-40863
April 2008, Judge Karlin
Court sustained 13 Trustee’s objection to confirmation as debtor included: adult son in household size, tax levy on Line 33 and duplicated it on Line 49 and unencumbered vehicle on line 28. The decision is a good analysis of the status of B22C [...]
Car Deduction Allowed on Means Test, Reversed by District Court
CAR DEDUCTIONS ALLOWED EVEN THOUGH NO LIEN
In re Thomas, Case No 06-21108
In re Camacho, Case No. 06-20729
October 2007, Judge Berger
UST Motion To Dismiss under 707(b) for presumed abuse based upon totality of circumstances was denied. The Court concluded that the debtors are entitled to claim vehicle ownership for expenses, even though debtors did not have [...]
No Early Payoff, But Chapter 13 Bankruptcy Plan Modification Possible
PLAN MAY NOT PROPOSE EARLY PAYOFF BUT 1329 MAY ALLOW POST
CONFIRMATION MODIFICATION
In re Kidd, et al, Case No. 06-41232
August 2007, Judge Karlin
The Court recognized changes in 1324(b)(4) and held that debtors may not propose an early pay off but may obtain the same in the right circumstances via 1329.
Digest by: Jan Hamilton, Trustee
Means Test Form Controls Unless Significant Changes in Circumstances
B22C CONTROLS UNLESS SIGNIFICANT CHANGES IN CIRCUMSTANCES
In re Lanning, Case No. 06-41037
May 2007, Judge Karlin
Over the Chapter 13 Trustee’s objection, the Court confirmed the plan because of significant changes in circumstances at the time of filing that caused Line 58 on B22C to be higher than what the debtor could afford to pay. BAP and [...]
How Long Does Chapter 13 Last if My Income is Below Median?
BELOW MEDIAN MUST RUN 36 MONTHS, B22C IS TEMPORAL
In re Daniel, Case No. 06-20714
December 2006, Judge Somers
In a Below Median case, debtor’s income is determined by B22C and expenses by Schedule J and must “run” for 36 months (The Applicable Commitment Period) or pay 100% of all allowed unsecured claims. B22C is temporal, rather than [...]
What are Bankruptcy Avoidance Powers?
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.
What is Bankruptcy Lien Avoidance?
Avoidance: The Bankruptcy Code permits the debtor to eliminate (avoid) some kinds of liens that interfere with (or impair) an exemption claimed in the bankruptcy. Most judgment liens that have attached to the debtor’s home can be avoided if the total of the liens (mortgages, judgment liens and statutory liens) is greater than the value [...]
Chapter 13 Payment Amount Can Change, But Not Plan Length
APPLICABLE COMMITMENT PERIOD IS FIXED AS DATE OF FILING
In re Moore, Case No. 06-20031
April 2007, Judge Berger
Debtors’ circumstances changed post petition pre confirmation. Although this does not change the ACP, it can change the amount to be paid to creditors. The ACP is locked in as of the date of filing. The Court noted that [...]
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Jill Michaux & Mark Neis
Attorneys at Law
Bankruptcy Law Office
Neis & Michaux, P.A.
825 Bank of America Tower
534 S. Kansas Ave., Ste. 825
Topeka, KS 66603-3446
T: 785-354-1471
F: 785-354-1170
lawyers@neismichaux.com
Board Certified in
Consumer Bankruptcy Law
by the American Board of
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