Recently there was a case where several debtors asked a Bankruptcy Court to approve a lease agreement as if they were re-affirmation agreements. From a procedural standpoint re-affirmation agreements require Bankruptcy Court intervention and lease assumptions do not, and therefore, the Courts denied this process. In the past, several Bankruptcy Courts allowed this process, but [...]
Bankruptcy Basics
The problem of student loans in bankruptcy is the bane of my existence as a bankruptcy lawyer. Sometimes it’s just the amount of the debt–a client who incurred $100,000 to get a degree that qualifies him to make $24,000 a year. Sometimes it’s the combination of the student loan debt with other debt–a client who [...]
Good lawyers will not recommend filing bankruptcy if the benefit is not clear. If you are giving up your house with only one mortgage and no other significant debt, many of us will typically advise against it. But in Missouri that could change if the banks start getting too greedy. Unlike some states, Missouri allows [...]
Last time, we talked about how a mortgage modification could screw up your ability to avoid a second mortgage in a Chapter 13 bankruptcy. If your principal balance is lowered on your first mortgage, your second mortgage may survive a Chapter 13. But there are other dangers for Chapter 7 in the mortgage modification settlement. [...]
Tax refunds are soon due and so are people filing bankruptcy. Expect to see a significant jump in bankruptcy filings as taxpayers get refunds from overpayment of their income taxes. According to a study by the National Bureau of Economic Research, as reported in a USA Today article on tax refunds and bankruptcy, more than [...]
Lie #5: You Will Never Be Able to Get Credit Ever Again. (Variations: You Will Never Be Able to Get a Car Loan Ever Again. You Will Never Be Able to Get a Mortgage Ever Again. You Will Never Be Able to Get a Credit Card Ever Again. Banks Will Lock Their Doors When They [...]
