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December 21st, 200933 Don'ts Before Filing Bankruptcy
June 14th, 2008There are lots of do’s and don’ts when you file a consumer bankruptcy case. Recently, my NACBA colleagues across the country brainstormed to come up with a short list of don’ts for people thinking about filing for bankruptcy.
Violating these, and many other do’s and don’ts, can cause you to lose property and get you into big trouble when you file for bankruptcy. If you make a mistake, even an innocent mistake, your attorney might not be able to reverse what you have done.
The best advice is not to act on your own – discuss what you want to do with your bankruptcy attorney first. You and your attorney should make your bankruptcy game plan together.
Here is the list compiled by my colleague, Jonathan Becker, of Lawrence, Kansas: Read the rest of this entry »
What is the Means Test?
June 9th, 2008Among the major tweaks in the 2005 bankruptcy law revision is the so-called means test. Simply put, all consumer debtors must compare household income to their statewide median income of households of similar size. NOTE: debtors with business debts ARE NOT subject to the means test.
United States Code §707 (b) (2) (A) (i) (I) and (II). Reference: Chapter 7 Discharge.
Reigning in on the relative ease of filing and obtaining discharge of unsecured debt in chapter 7 is central focus of BAPCPA, but most debtors pass the means test leading blogger Steve Jakubowski to ask if the bark of the means test is worse than its bite? Read the rest of this entry »
History of BAPCPA: Special Interest Legislation at Its Worst
June 4th, 2008BAPCPA (Bankruptcy Abuse Prevention And Consumer Protection Act Of 2005) has been characterized as among the best (or worst depending on point of view) examples of special interest federal legislation ever passed by Congress. The act’s history is important:
Under pressure from creditor lobbying efforts, Congress and the Clinton administration in 1994 funded a bi-partisan blue ribbon panel dubbed the Bankruptcy Review Commission. Its mission was a comprehensive study of the bankruptcy system in response to creditor interests’ complaints of widespread but undocumented abuses.
Democrats’ poor showings in 1992 and 1994 elections left Congress controlled by Republicans. President Clinton agreed to a commission to find the facts. The credit industry argued a significant number of Americans had the “ability to repay” their debts, but egged on by greedy bankruptcy attorneys, debtors were choosing instead to slough off debt. Debtors were cast as well-to-do credit card abusers who were financially irresponsible, increasing the cost of borrowing for others. Little or no evidence was ever offered to back up creditors’ arguments. Read the rest of this entry »
10% Home Mortgages Under Water
February 24th, 2008Here is a scary statistic for 2007 being reported by ABC News: 10% of American homeowners owe more money on their house than the house is worth. That figure has doubled from 5% in 2006.
For homes purchased in the past two years, the figure shoots up to an alarming 30%, according to Reuters. These are the highest numbers of homes under water since the Great Depression of 1929.
Eight million families are in danger of losing their homes due to mortgages that are greater than the value of the homes. See what fellow blogger, Gene Melchionne, has to say on the Mortgage Law Network about what this means for all Americans, particularly retirement funds.
Wichita Car Dealer Convicted of Bankruptcy Fraud – Facing 5 Years in Jail
February 23rd, 2008A Wichita car dealer who gave money to relatives before filing his bankruptcy case and lied on his bankruptcy paperwork was convicted of federal crimes this week and faces possible jail time for his fraud.
Evidence at trial proved he gave money to his wife and his brother prior to filing his bankruptcy case and he lied on his paperwork. He falsely said he had no bank accounts and he had made no transfers of money to relatives nor closed any bank accounts. He also charged $125,000 on credit cards within a year of filing the bankruptcy petition for airline tickets, jewelry and other goods. Read the rest of this entry »
Kansas Bankruptcy Judges End Secret Mortgage Fees in Chapter 13
February 22nd, 2008The bankruptcy judges in Kansas have approved new language for all chapter 13 confirmation orders that will put an end to the abusive practice of secretly adding fees to a debtor’s mortgage loan balance.
No real estate creditor shall ever assess, charge or collect, from either the debtor or the real estate collateral, any assessments, fees, costs, expenses or any other monetary amounts, exclusive of principal, interest, taxes and insurance, that arose from the date of the filing of the bankruptcy petition to the entry of the Order of Discharge except as may be allowed by court order or an allowed proof of claim.
Attorney General Six Gives Foreclosure Advice – Get Attorney, Learn Options
February 21st, 2008Kansas Attorney General Stephen N. Six issued the following statement on home mortgage foreclosure this week, urging people facing foreclosure to seek help from an attorney.
Home foreclosure is a growing problem in Kansas and across the nation. Mortgage fraud and subprime lending have left many homeowners stuck with home loans they can no longer afford.
My office recently convened a task force to investigate this problem. Consumer advocates met with representatives from lending and real estate industries to determine ways we can stem the tide of home foreclosure in Kansas. Read the rest of this entry »
Board Certification Renewed for Jill Michaux
February 10th, 2008Jill Michaux has earned recertification in consumer bankruptcy law by the American Board of Certification. She was awarded her 15 year pin as a consumer bankruptcy specialist.
She was the first Kansas lawyer to be board certified in consumer bankruptcy law. Her partner, Mark Neis, was second. Today, they are the only board certified consumer bankruptcy specialists in Topeka and two of ten in Kansas.
Board certification means that Jill has met rigorous, objective standards and has demonstrated expertise in consumer bankruptcy law. She goes the extra mile to keep current on bankruptcy law changes by attending national seminars, participating in daily e-mail updates and by attending several times the hours of continuing legal education required by Kansas.
You expect certification from your doctor – expect it from your lawyer too. Hiring an attorney with expertise in any specialized field of law, such as bankruptcy, can be a bewildering experience. As a client, you want to make sure your attorney is experienced in consumer bankruptcy law. Choosing a board certified specialist in one way to make sure.
Can't Add Your Spouse to Your Individual Bankruptcy Case Later
February 4th, 2008Your spouse does not have to file bankruptcy with you in Kansas, but make sure you don’t want to file a joint case, because you can’t add your spouse to the case later.
Judge Dale L. Somers denied an attempt by a debtor to add her spouse two months after she filed her case by amending her petition filed with the Court. In Re Cheryl R. Daly, 07-22628-13, (Bankr. D.Kan. 01-28-2007).
It would be possible for the nonfiling spouse to file his own case and then consolidate the two cases for administration.