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Kansas Bankruptcy Institute April 24

Posted on March 29, 2009 Written by

“When All of the
Bailouts, Moratoria,
and Stimulus
Packages Just
Haven’t Worked…”

The 2009 Kansas Bankruptcy Institute will be April 24, 2009, at the Overland Park Doubletree Hotel.

9:00 a.m. Chapter 13 Update

William H. Griffin, Chapter 13 Trustee, Fairway
Jan Hamilton, Chapter 13 Trustee, Topeka
Christopher T. Micale, Staff Attorney for Laurie B. Williams, Chapter 13 Trustee, Wichita

10:30 a.m. Consumer Remedies for Lender Misconduct

Karen Kellett, Kellett Law Office, Dallas, Texas [Read more…]

Filed Under: Kansas Bankruptcy News

Topeka Chapter 13 Trustee Inducted into American College of Bankruptcy

Posted on March 28, 2009 Written by
Jan Hamilton Trustee

Jan Hamilton Trustee

Jan Michael Hamilton, standing chapter 13 bankruptcy trustee for cases filed in Topeka, was inducted into the American College of Bankruptcy Friday.   Hamilton was in the private practice of law from 1973 through 1999 when he was named to the trustee post.

Hamilton traveled to Washington, D.C., for the ceremony at the U.S. Supreme Court building.  Thirty three attorneys and judges were in the 20th class inducted into the college.

The American College of Bankruptcy is an honorary association [Read more…]

Filed Under: Chapter 13, Exemptions & What You Get to Keep, Financial Help, Kansas Bankruptcy News, Vehicles

Kansas Bank, Credit Union Seized

Posted on March 20, 2009 Written by

Government regulators seized two Kansas financial institutions March 20.

Bank regulators closed Teambank of Paola, Kansas.  Great Southern Bank of Missouri will assume its deposits.  Teambank’s failure will cost the deposit insurance fund an estimated $98 million.

Central Federal Credit Union of Lenexa was placed into conservatorship by the National Credit Union  Administration.

Filed Under: Kansas Bankruptcy News

What Interest Rate Does the Chapter 13 Bankruptcy Trustee Pay on Secured Claims?

Posted on March 10, 2009 Written by

EXPLANATION OF THE TOPEKA DISCOUNT RATE

by Jan Hamilton, Standing Chapter 13 Trustee

  • The Discount Rate (Interest Rate) for chapter 13 bankruptcy cases filed in Topeka, Kansas, on or after March 1, 2009, is 4.75%.

This rate will typically be changed no more than once a month, on the beginning of the
month.

Beginning on July 1, 2004, we began using our version of the Till rate. [Till v SCS Credit Corporation, 541 U.S. 465, 124 S. Ct. 1951 (2004)]. We start with the Wall Street Journal Prime as reported by www.bankrate.com. We will adjust prime for new cases filed once per month on the 1st day of each month. We then add 1.5% to that rate as the risk factor. This rate has never been challenged but certainly, in the appropriate case, the risk factor might be higher or lower.

This rate was approved by Judge Karlin in In re Lowder, Case No. 05-44802, in a decision entered on August 14, 2006. [Read more…]

Filed Under: Chapter 13, Financial Help, Foreclosure, Mortgages, Vehicles

Call Kansas Senators to Support Judicial Mortgage Modification in Bankruptcy

Posted on March 9, 2009 Written by

Judicial modification of residential mortgages in chapter 13 bankruptcy is part of H.R. 1106, which passed in the U.S. House of Representatives last week.  The bill now moves to the U.S. Senate and may come up for a vote this week.  We need your help to get the bill passed into law.  Call your Kansas senators and tell them you support judicial modification of home mortgages in bankruptcy.

The bill is designed to stop the home foreclosure crisis and prevent people from losing their homes to mortgage foreclosure.  Using judicial modification in chapter 13 bankruptcy, the loan could be restructured by writing the principal down to the value of the home, fixing the interest rate at a reduced rate and extending the loan to 40 years.  Judicial modification will not save all homes, but will help Kansans who have been victimized by predatory lending.  It will give individual homeowners the same benefits corporations have in chapter 11 bankruptcy. The law change is necessary because lenders are not making voluntary loan modifications.  People who don’t file bankruptcy will be helped by the bill also.

You can help pass this legislation by calling or faxing your Kansas Senators today.  Tell the person who answers you support judicial modification of home mortgages in bankruptcy.  Sen. Sam Brownback,  (202) 224-6521, fax (202) 228-1265, and Sen. Pat Roberts, (202) 224-4774, fax (202) 224-3514.

Filed Under: Foreclosure, Kansas Bankruptcy News, Mortgages

Do I Have to Pay Income Tax on Forgiven Mortgage Debt?

Posted on March 8, 2009 Written by

Mortgage Debt Forgiveness, IRS Tax Tips, March 5, 2009 –TT-2009-44

Here is a tax tip from the Internal Revenue Service about mortgage debt forgiveness:

If your mortgage debt is partly or entirely forgiven during tax years 2007 –2012, you may be able to claim special tax relief and exclude the debt forgiveness income.

Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence. The limit is $1 million for a married person filing a separate return.

Taxpayers may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

However, proceeds of refinanced debt used for other purposes (for example, to pay off credit card debt) do not qualify for the exclusion.

If you qualify, you claim the special exclusion by filling out Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness, [Read more…]

Filed Under: Mortgages

What Would Jesus Say About Debts and Bankruptcy?

Posted on March 8, 2009 Written by

The Old Testament teaches the legal and moral obligation to pay just debts must be balanced with compassion and a call for cancellation of debts.  Jesus promoted debt forgiveness and preached the importance of placing love and compassion above greed and wealth.

In Luke 6:34-35, Jesus said: “And if you lend to those from whom you hope to receive, what credit is that to you? Even sinners lend to sinners, to receive as much again. But love your enemies and, do good, and lend, expecting nothing in return, and your reward will be great, and you will be sons of the Most High; for he is kind to the ungrateful and the selfish.”

“The consistent teaching of both the Old and New Testaments is that compassion, mercy and justice are to override purely economic concerns, such as loans. Religious people are to be gracious to all, even debtors,” according to the essay, Forgive Us Our Debts.

Bible verses on debt and bankruptcy

Filed Under: Chapter 7, Discharge, Filing Bankruptcy

7 Bankruptcy Mistakes to Avoid

Posted on March 8, 2009 Written by

The actions an individual takes leading up to filing bankruptcy can drastically affect his or her ability to get a “fresh start“. By avoiding these seven mistakes, one can travel successfully through the bankruptcy process without losing a pound of flesh.

1. THE CREDIT CARD RUN-UP MISTAKE:
Don’t use your credit cards once you have made your decision to file bankruptcy. Consumer debts incurred for luxury goods and services owed to a single creditor in excess of $500.00 within 90 days of filing are presumed to be non-dischargeable and may be found to be due and owing. Cash advances of more than $750.00 within 70 days of filing are presumed to be non-dischargeable and may be found to be due and owing. Don’t jeopardize your “fresh start” by running up your credit cards.

2. THE REPAY A FAMILY MEMBER MISTAKE:
With regard to repaying debts, you cannot treat your family member any better than you would an ordinary creditor. In fact, a bankruptcy trustee can reclaim any amount repaid to a family member within one year of filing bankruptcy.

3. THE TRANSFER PROPERTY OUT OF YOUR NAME MISTAKE: [Read more…]

Filed Under: Bad Outcomes, Fraud, Crimes, Filing Bankruptcy

Do Mortgage Arrears Get Paid Interest in Chapter 13 Bankruptcy?

Posted on March 8, 2009 Written by

DOES THE MORTGAGE CREDITOR GET INTEREST ON THE ARREARAGE PAID IN THE PLAN?

By Jan Hamilton, Standing Chapter 13 Trustee

Frequently, arrearages on real estate mortgages are paid through the plan. Do they bear interest or not? If they do, at what rate?

While Judge Somers has (essentially on behalf of all of the judges in Kansas), ruled on certain language in plans relating to mortgages, (In re Seal, Case No 05-17262, order entered March 6, 2007), the decision leaves open the question of whether interest is to be paid and at what rate.

Section 1322(e) was enacted as part of the Bankruptcy Reform Act of 1994 to overrule the Supreme Court decision in Rake v. Wade, 508 U.S. 464, (1993). [Read more…]

Filed Under: Chapter 13, Financial Help, Foreclosure, Mortgages

Avoid Rapid Ripoff Loans

Posted on March 7, 2009 Written by

Beware of tax refund anticipation loans,  they cost hundreds of dollars to get your tax refund a week or two early with the fees deducted from the refunds.  More and more people are taking out these loans to catch up on their ordinary bills such as rent and utilities.

Even more people are taking out these loans to have income tax returns prepared and they are paying dearly for it.  The national tax preparation chains will deduct their fees from your tax refunds for a price–additional fees on top of the fees to prepare the tax returns. I have noticed fees of $300 to $400 for relatively simple tax returns this year.

Oh yes, the fees are disclosed.  The tax return packet contains pages and pages of fine print disclosures.  Unfortunately, the disclosures are not read carefully and all the taxpayer cares about is not having to pay for the tax return preparation out of his pocket.  Wise consumers can have their tax returns prepared for free or modest $50 to 100 fees if they will shop around.  Most preparers can file returns electronically and have refunds direct deposited to bank accounts in 7 to 10 days.  Avoid rapid ripoff.

Filed Under: Financial Help

Will I Go to Jail if I Can't Pay My Debts?

Posted on March 7, 2009 Written by

Don’t worry.  We no longer have debtor’s prisons in America, thankfully.  The prisons of revolutionary times are past history.  It is not a crime to owe an ordinary debt and you won’t go to jail if you can’t pay.

But do pay attention to court orders and do attend any court hearings you are ordered to attend.  Judges have contempt powers and will issue a bench warrant for your arrest if you fail to appear in Court when you are ordered to do so.  The problem is not owing a debt, the problem is disobeying a court order.

Once of the advantages of filing bankruptcy is it puts an end to the debtor’s examinations by judgment creditors.  You won’t have to worry about missing court dates and bench warrants.  And, you won’t go to jail for filing  bankruptcy if you are honest, and make full disclosure and play by the rules.

Filed Under: Filing Bankruptcy

Will I Lose My Retirement Fund if I File Bankruptcy?

Posted on March 4, 2009 Written by

Question:  Is my retirement account I have worked hard for all my life down the drain if I file bankruptcy?  Generally, retirement accounts are protected in bankruptcy and you get to keep them in Kansas.

KPERS, Kansas deferred compensation plan, Social Security, federal civil service, 401(k) plans, IRAs, Roth IRAs, 403(b) plans are types of retirement plans that are exempt from the reach of creditors and bankruptcy trustees.

As with all things bankruptcy, the answer to this question actually depends on the facts of your specific circumstances.  [Read more…]

Filed Under: Exemptions & What You Get to Keep, Filing Bankruptcy

Living Expense Allowances on Bankruptcy Means Test Adjust

Posted on March 2, 2009 Written by

The allowable deductions for living expenses on the bankruptcy means test adjust for cases filed on or after March 15, 2009.  You can view the allowances, some of which are national standards and some of which are local standards, on the website for the U.S. Trustee.  See your bankruptcy attorney for application of the allowances to your situation.

Filed Under: Filing Bankruptcy, Means Test

Kansas Median Income Goes Up on Bankruptcy Means Test

Posted on March 2, 2009 Written by

The Kansas median income has increased giving debtors a raise on the bankruptcy means test for cases filed on or after March 15, 2009.  The new figures by family size are:

  • one earner    $41,004
  • two people    $56,146
  • three people $63,245
  • four people   $74,626

* Add $6,900 for each individual in excess of 4.

Filed Under: Exemptions & What You Get to Keep, Filing Bankruptcy, Means Test

25th Bankruptcy and Debt Carnival

Posted on February 23, 2009 Written by

The 25th Bankruptcy and Debt Carnival is a collection of Internet blog posts about credit cards, debt, debt consolidation, finance, loans and personal finance.

Filed Under: Financial Help

Judicial Modification of Mortgages in Bankruptcy to House Floor Wednesday

Posted on February 23, 2009 Written by

Judicial mortgage modification in chapter 13 bankruptcy is expected to be considered on the floor of the U.S. House of Representatives as early as Wednesday of this week.   The proposed law eliminates the ban on restructuring primary residential mortgages to help people save their homes from foreclosure.  The law change will help people in foreclosure who don’t want to file bankruptcy also,  Chip Parker, Jacksonville bankruptcy lawyer, writes in the Bankruptcy Law Network blog.

The bill will be part of a large package of financial services legislation.  You can support judicial modification of mortgages in chapter 13 bankruptcy by calling or faxing your Kansas Congressional delegation today.  Here is how to contact your member of Congress:

  • Sen. Sam Brownback,  (202) 224-6521, fax (202) 228-1265
  • Rep. Jerry Moran,  (202) 225-2715, fax (202) 225-5124 
  • Rep. Lynn Jenkins, (202) 225-6601, fax (202) 225-7986
  • Rep. Dennis Moore, (202) 225-2865, fax (202) 225-2807
  • Rep. Todd Tiahrt, (202) 225-6216, fax (202) 225-3489
Filed Under: Chapter 13, Foreclosure, Mortgages
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