Secured creditors of a debtor in bankruptcy are entitled to adequate protection against erosion in their collateral value. Debtors’ attorneys often argue that adequate protection exists by pointing to a so-called “equity cushions.” An equity cushion exists when the debtor has sufficient equity in the collateral to protect against its depreciation and the [...]

Sometimes people contemplating bankruptcy do not want to list all of their debts. This can be the case for a variety of reasons. Often it is because a person owes money to a family member or friend.
However, all debts must be listed in a bankruptcy, whether or not they are dischargeable. A debtor [...]

The chief executive of Sallie Mae warned of a “train wreck” in the student loan market today. The headline evokes fears that yet another shoe is about to drop in the national credit crisis. However, Chief Executive Al Lord was in Washington seeking taxpayer subsidies of his business. Sallie Mae has two [...]

Usually individuals can refile bankruptcy cases after they are dismissed, despite there being limitations on the automatic stay in some circumstances with multiple filings. However, there is an important limitation found in Section 109(g) of the Bankruptcy Code. In cases in which a debtor has voluntarily dismissed his case after the filing of [...]

The 10th Circuit Court of Appeals recently held, joining four other Circuit Courts, that Chapter 13 debtors have standing to sue on behalf of their bankruptcy estate. In the case of Smith v. Rockett the Court noted, over a dissent, that a Chapter 13 debtor was a debtor in possession for purposes of Bankruptcy [...]

Bankruptcy debtors are required to provide evidence of their social security numbers at the Section 341 meeting of creditors.  Of course, a social security card is a good way to do this.  However, these flimsy cards do not always withstand the ravages of time, so alternatives are often needed.  A good option is to go [...]

The general rule is that all property of the debtor becomes property of the bankruptcy estate once a bankruptcy case is filed. This property is then subject to exemption by the debtor or administration by the trustee (in a Chapter 7 case). However, there are several exclusions from the bankruptcy estate that operate [...]

Cash collateral is usually only an issue in business bankruptcy cases. Cash collateral is defined as “cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents,” 11 U.S.C. § 363(a), in which a creditor has a lien.
An example is when a creditor has a security interest in inventories and their proceeds. [...]

When a person is in financial trouble, it’s natural to look to family members for support. It’s also natural to want to pay back family members and not other creditors (like credit card creditors) before a bankruptcy. However, this is a bad idea and a classic pitfall for people planning a bankruptcy.
This is [...]

On May 1, 2008 the new Massachusetts foreclosure law will go into effect. Most importantly for homeowners facing foreclosure is the new 90-day right to cure mortgage defaults before foreclosure.
The key to this new right is that legal fees and foreclosure costs cannot be imposed on consumers during the right-to-cure period. This is [...]