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Archive for September, 2008

What Does the Connecticut Debt Relief Agent Case Mean for Attorneys? »

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 [...]

Credit Reporting Agencies Told: Delete Bankruptcy Debts »

You get your bankruptcy discharge, try to re-finance your mortgage, and are told you do not qualify because of a debt or debts still on your credit report.  How can this be?
Carmen Dellutri has blogged on this issue.
It is called zombie debt, debt that will not die.
There are many companies which buy bad debts, [...]

$700 Billion Wall Street Bailout Is Now A Rescue Package For Main Street »

This blog is about Debt.  Our leaders in Washington are about to strap us with a bucket load of debt.  Debt that will be with our grandchildren, even though the Government anticipates making a profit.  Make no mistake there will be a bunch of arms twisted, and We Will Have A Bailout Bill soon.  The [...]

Amending the Bankruptcy Schedules: Sometimes It’s Best to Say “No” »

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 [...]

Bankruptcy Automatic Stay Not Affected by Non-Dischargability »

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 [...]

Federal Court Strikes Down Bankruptcy Code Provisions »

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 [...]

Means Test on Old or High Mileage Cars »

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 [...]

Dow Jones Drops 777 Points When Bailout Fails »

The Dow Jones Industrial Average fell over 777 points today.  This is the largest one day point drop in history.  However, the percentage drop is not the worst in history although it is significant.  I must admit that it was very difficult to work while history was being made.  While I was glued to the television [...]

Filing bankruptcy a point for life changes »

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 [...]

Teachers That Pass The Bankruptcy Means Test One Month, Might Fail The Next! »

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 [...]