Recently the U.S. District Court in Connecticut ruled that parts of the revised Bankruptcy Code were unenforceable.  (See “Federal Court Strikes Down Bankruptcy Code Provisions“)  But some parts of the case remain undecided.  While the Court decided that attorneys not engaged in the practice of bankruptcy law did not have to comply with certain provisions [...]

In a consumer bankruptcy case, sometimes the trustee will request, or even demand, that the debtor amend the schedules based upon the trustee’s opinion that something has been omitted, or that something is incorrect.
Usually, the trustee is right and the debtor makes the amendment.  After all, the bankruptcy schedules are complicated and contain a great deal of [...]

Divorce attorneys like to insert language in the divorce agreements or decrees reciting that certain obligations are not dischargeable in a subsequent bankruptcy case by one of the ex-spouses.  Now there may be differing opinions on what parts of a divorce decree are or are not dischargeable in a bankruptcy, but such language does not [...]

After waiting more than two years for a decision, U.S. District Judge Droney of Connecticut ruled on September 9, 2008 that attorneys must be free to advise clients regarding their finances free from governmental interference.  In a further move, the judge also agreed that certain of the Bankruptcy Code provisions enacted in 2005 are overly [...]

The Means Test is not a pretty part of the new bankruptcy filing requirements.  Above Median Income filers need to compare their income and expenses against allowances based on the Internal Revenue guidelines for delinquent taxpayers.  The new statute is not particularly clear on a number of issues, including two which concern the form’s three [...]

The client came in to address just his overwhelming credit card debt and left prepared to restructure his business and relocate to his retirement home.  Bankruptcy became an opportunity to address all of the client’s financial commitments and square them with his mid range plans for his life.  Pretty neat!
Because a debtor must list all [...]

Another example of one of the absurd results of the Means Test is seen in the calculation of CMI for school teachers which can show that a teacher’s yearly income up to 33% higher than it really is.
In North Carolina, many school teachers are often paid for only 9 or 10 months [...]

With the passage of the new bankruptcy laws in October, 2005, all debtors must now calculate current monthly income, which is a legal term of art under the new Bankruptcy Code. In a nutshell, current monthly income is the average monthly income for the previous 6 months preceding the Bankruptcy Filing Date. For w-2 employees, [...]

Post-filing earnings, minus reasonable living expenses, in Chapter 13 is property belonging to the creditors.  This can include tax refunds.
I used to counsel my clients to decrease their withholdings, which increases net pay and reduces the tax refund.  I came to realize that, by and large, my clients needed the forced savings which a tax [...]

Effective September 10, 2008, are the new Chapter 7 Trustee Guidelines for the Southern District of California Bankruptcy Court.  While not mandatory, failing to follow these guidelines will almost always result in having the case called at the end of the 341 Calendar, and hearing continuations.