Chapter 7 Bankruptcy

Most of the posts on this blog, and in fact on most bankruptcy blogs, focus on the consumer as the bankruptcy debtor.  That makes sense–most bankruptcy cases involve a consumer debtor and a number of institutional creditors, like banks and credit card companies.  And those banks and credit card companies have in-house lawyers, and white-shoe law […]

On March 24, 2015, the U.S. Supreme Court will hear oral arguments in two cases involving whether a chapter 7 debtor may strip off a second (or any junior) mortgage that is not secured by the home’s actual market value. In Bank of America, N.A. v. Toledo-Cardona, No. 14-163, the market value of the chapter […]

When someone leaves a job, is it always necessary to replace them?  The bankruptcy system’s watchdog seems to think so, even if that makes little sense. Chapter 7 Trustees are assigned randomly to bankruptcy cases to identify and liquidate property not protected from the creditors.  They are paid $60 per case and nothing else unless […]

The 2005 Bankruptcy Reform Act’s “means test” for chapter 7 bankruptcy filers was weakened by a recent ruling from a Texas bankruptcy court.  Under this ruling, student loans incurred for the purpose of obtaining a professional degree to be used in business are not “consumer debts” under section 707(b) of the bankruptcy code.  This new […]

A health savings account (HSA) belonging to a Mounds View, Minnesota, police officer was not exempt in bankruptcy, the 8th Circuit Bankruptcy Apellate Panel ruled.  The appeals court upheld the bankruptcy court’s order that in Minnesota, an HSA is property of the bankruptcy estate pursuant to 11 U.S.C. section 541(a), and that HSA’s cannot be claimed exempt […]

You may be wondering what happens if you file Chapter 7 bankruptcy and you own assets that cannot be exempted or sheltered under the applicable exemption laws in your district. There may be instances where you need to file bankruptcy to stop a pending lawsuit but you do not have the income to support a […]