She didn’t want to totally destroy her credit, so she didn’t list five credit cards with small balances. Sound familiar? Perhaps you’ve had this thought.
Bankruptcy papers are signed under penalties of perjury, and are the same as live testimony in court. If you knowingly leave something off, you’ve lied and your bankruptcy [...]

Popularity: 18% [?]

The purpose of the Massachusetts homestead is to protect families, not just debtors.  It should come as no surprise that a home remains protected if a child occupies the home even if the parent-debtor has moved out.  The parties in In re Thompson, 2008 Bankr. LEXIS 1199 all overlooked this point and argued about whether the debtor’s absence [...]

Popularity: 13% [?]

Seems obvious, yes?  Not to everyone.  Use of a charge card without the intent to repay is fraud, whether charging a purchase, or making a cash advance, or using a convenience check.
If the bankruptcy need is immediate, ask your attorney about a Chapter 13 filing with an affordable retainer and monthly payments.  You avoid fraud.  You avoid [...]

Popularity: 17% [?]

Repeat after me: “Bankruptcy stops collection lawsuits. Bankruptcy stops collection judgments.” Now, go write this on the blackboard 100 times.
Bankruptcy is a federal right, direct from the U.S. Constitution. Collection lawsuits are state law and they lose out to the superior federal law.
If anyone tells you otherwise, please PLEASE immediately write [...]

Popularity: 25% [?]

You can still file bankruptcy on a charged-off debt.  Any statement otherwise violates federal law and can put money in your pocket.  Please, PLEASE, immediately write down all details of the call and contact your attorney. 
I must repeat the February 15, 2007 post of my colleague, Susanne Robicsek.  A charge-off is a creditor’s accounting entry [...]

Popularity: 27% [?]

Decisions nationwide are all across the board on whether one should use the IRS-allowed expenses or actual expenses in calculating the Means Test.  A recent decision in Massachusetts made one ruling, on one test, in one set of circumstances, and expressly excluded application to other situations. 
In a Chapter 13 case, a debtor meets Chapter 13’s [...]

Popularity: 13% [?]

How many times may a foreclosing mortgagee reschedule the sale after a bankruptcy is filed?  In Massachusetts, maybe once is enough.
It has been the accepted custom to allow one rescheduled sale, to preserve the status quo in case a bankruptcy filing is quickly dismissed.  But Judge Joel B. Rosenthal’s eyebrows were raised at allegations of [...]

Popularity: 21% [?]

“Section 8″ is a phrase indicating public assistance, or a subsidy, for rental expenses.  Discrimination against recipients violates Massachusetts law.   A state court judgment for $1.00 actual damages, $5,000.00 punitive damages, and attorney fees issued against a landlord who then filed for bankruptcy protections - and lost as to this award.
 Bernal v Benham (In re Benham), [...]

Popularity: 20% [?]

An above-median income Chapter 7 debtor must pass the Means Test to avoid a mandatory five year Chapter 13 case. The Means Test takes the debtor’s income, subtracts IRS-allowed expenses and secured debt payments, and forces a Chapter 13 filing if the difference can pay a sufficient amount of debt. Here’s a short list of [...]

Popularity: 19% [?]

When a mortgage goes unpaid, a party can seek relief from bankruptcy’s automatic stay to foreclose.  A mortgage can held by a lender, administered by a servicer, and owned by a nominee commonly called MERS (Mortgage Electronic Recording Service).  All three have the right to go to bankruptcy court for relief from the stay.  In re [...]

Popularity: 11% [?]