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American Shingle roofing company recently filed for Chapter 7 bankruptcy leaving many consumers without their deposits and without a new roof.  I wrote about the filing earlier in an article American Shingle Files Chapter 7 Bankruptcy but I wanted to give consumers a little more information about bankruptcy procedures since most have never been creditors in a bankruptcy case before.   

A bankruptcy case is started with the filing of a document called a petition.  The actual petition is only a couple of pages long, and contains basic information about the debtor and some estimated statistics.  To file a case, only the petition and a mailing matrix (mailing list of creditors and parties) needs to be filed.   The statistics shown on the petition regarding debts and assets are only an estimate and may change as the caes progresses.  

American Shingle filed it’s case deficient, which means it was filed with the minimum paperwork required.  That isn’t unusual and no one should read anything into the fact that they did this, however the documents filed right now don’t tell us much.  We have to wait to see the rest schedules and statement to get a better picture.  Read More of This Article

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Motherhood & The Bankruptcy Bargain

by Cathy Moran, California Bankruptcy Lawyer September 10, 2010

Two different clients recently have approached the means test and the good faith test in Chapter 13 like Momma Grizzlies. Their assumption was that anything they spent on their children was beyond question. One single mother assumed that she was entitled to deduct from the means test her child’s college expenses over the life of [...]

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Are Debtor’s Prisons Primed for a Comeback?

by Jonathan Ginsberg, Atlanta Bankruptcy Attorney September 9, 2010

Debt collection attorneys know that you cannot be thrown in jail if you do not pay your credit card debts.  Debtor’s prisons were formally abolished in the United States in 1833, and, except for cases involving past due child support or tax debts, you will not face jail time if you are unwilling or unable [...]

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4 Collection Steps After You Stop Paying Credit Card Debt

by K. Hunter Goff September 7, 2010

As a bankruptcy lawyer, one of the first things I advise my clients to do when they decide they are filing bankruptcy and hire me is to stop paying on their credit cards. More on this later in the post. Recently, though, before I could offer that advice, a client asked me: “What happens when [...]

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Pigs Get Fat And Hogs Are Slaughtered In Bankruptcy.

by Rachel Lynn Foley, Kansas City, MO, Bankruptcy Attorney September 7, 2010

When you file bankruptcy, you should become acquainted with the phrase:  Pigs get fat while hogs get slaughtered.  It is a great phrase to live by, not only during bankruptcy but in everyday life as well.  This phrase goes back to the basics of bankruptcy and life.  Everything must be done in moderation.  More specifically [...]

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Create a Document File When You File Chapter 13

by Jonathan Ginsberg, Atlanta Bankruptcy Attorney September 6, 2010

This afternoon, I appeared at a Section 341 meeting of creditors hearing with a married couple who I represent in a Chapter 13 case.  One of the questions asked by the trustee had to do with mortgage payments – specifically, were the debtors current with their post-petition mortgage loan payments.  In the Northern District of [...]

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Lawyer’s Advice on “Exemption Planning” Not Protected by Attorney-Client Privilege, 8th Circuit Appeals Court Says

by Craig Andresen, Minnesota Bankruptcy Attorney September 6, 2010

The U.S. Court of Appeals recently held that a bankruptcy attorney could be compelled to testify against his own clients in a case involving the conversion of nonexempt assets into exempt assets, a process commonly known as “exemption planning.”  This case, In re Grand Jury Proceedings, 609 F.3d 909 (8th Cir. July 1, 2010), involved [...]

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American Shingle Files Chapter 7 Bankruptcy

by Susanne Robicsek, North Carolina Bankruptcy Attorney September 4, 2010

American Shingle filed for Chapter 7 bankruptcy in Georgia owing millions of dollars to creditors.  Among the creditors are hundreds of  homeowners who paid the company to roof their home but did not receive services promised.  For homeowners who are owed money, there are a few things to understand about how bankruptcy works and what [...]

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Homestead Exemptions if You’re “Livin’ in a Van Down by the River”

by Russell A. DeMott, Charleston Bankruptcy Lawyer September 3, 2010

When you file bankruptcy, you claim “exemptions” in property you wish to keep free of any claims of the bankruptcy trustee.  And the “homestead” exemption–the exemption used to protect your home–is the most important exemption for many debtors. But what if your home is the movable kind?  And I’m not just talking about mobile homes [...]

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I Think I Need To File A Chapter 7 But I’m Scared I May Lose My Home!

by Adrian Lapas, Eastern North Carolina Bankruptcy Attorney September 2, 2010

Many times people come into my office and want to file a chapter 7 but they are worried about losing their home in bankruptcy.  Often, this fear probably means they have delayed seeking some advice for a very long time. In most instances, the chapter 7 trustee is not going to sell your home to [...]

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