Discharge of Debt

13 Dec Prepare to Pay if You Forget to Take the Financial Management Course

Recently I received a notice from the bankruptcy court that my client's Chapter 7 case has been closed without the issuance of a discharge order because my client never completed his mandatory financial management course. This means that in order to get his discharge, my client will have to pay a filing fee of $260 plus attorney's fees (I usually charge $240) to get his case reopened so that we can file his financial management certificate and he can receive his discharge. While reasonable people can debate the merits of requiring bankruptcy debtors to spend the time and money to take two financial counseling courses - one must be completed prior to filing and the second after filing - it is clearly a waste of money to spend $500 because you did not get around to taking a $35 course that may take an hour or two of your time.
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16 Oct Should My Business File for Chapter 7?

I frequently meet with clients who own a business that has financial problems. It may not be able to pay its bills as they come due, there may be an eviction threatened, or a lawsuit. These clients have done some homework, and usually start out our meeting by saying that they want to retain me to file Chapter 7 bankruptcy for their corporation or LLC. They are also surprised when I tell them that for most businesses, Chapter 7 makes absolutely no sense. Why?
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