Exemptions In Bankruptcy

07 Jul Massachusetts Protections of Cash Value Life Insurance

The Massachusetts laws protecting cash value life insurance might as well be written in Middle English. Theysimply cannot be understood byanyone except the most persistent of us.Luckily, some recent court decisions help us find our way. Back in2007, I expressed appreciation to U.S. Bankruptcy Judge Henry...

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25 Oct Bankruptcy Exemptions: The Wages of Benn (Part III)

In the on-going saga of Missouri bankruptcy exemptions, some apparently-settled debtor protections have recently been destabilized. And this caused an apparent split among bankruptcy judges on at least some of these protections. Recently, this on-going evolution visited the daily wages of consumers. Missouri has a law which protects a large portion of an individual's income from her own services from collection by creditors, often called the "wage" exemption. It is similar to a federal law which sets the outside maximum a creditor can garnish from personal income. In years past, the U.S. Supreme Court has held that the federal law is not intended as an exemption in a bankruptcy case. And some states have followed this as to their own "wage" protection laws. But as we know, states can make their own laws about exemptions to be used in bankruptcy. And Missouri has opted to go the other way.
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