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Statement of Financial Affairs: Question 3 »

This is the third in a series of blogs about the Statement of Financial Affairs and the questions it asks.
Question 3 is broken down into three parts, (a), (b) and (c). Part (a) requires the listing of certain payments made to creditors within the 90 days before the case is filed if your debts are [...]

Why Did Cramdown Fail? Insurance and Principal. »

On April 30, the US Senate voted against S. 61, a bill that would let judges modify home mortgages in bankruptcy. Karen Oakes wrote an excellent article, “Congress Votes Against Consumers Modifying Home Mortgages In Bankruptcy” discussing the vote.
But some might wonder why the banking industry would fight so hard, and spend so much money, [...]

Statement of Financial Affairs: Questions 1 and 2 »

This is the second in a series of blogs about the Statement of Financial Affairs and the questions it asks.
The first two questions in the Statement of Financial Affairs (SoFA) ask about income. Question 1 asks about income from employment or the operation of a business, and Question 2 asks about income other than from [...]

Statement of Financial Affairs Information »

The Statement of Financial Affairs, a detailed financial history that must be filed in all bankruptcy cases, is long and complex. Accordingly, my series about this document consists of many parts. This blog will serve as a “Table of Contents” with links to all of the articles, and will be updated as articles are posted.
Statement [...]

Statement of Financial Affairs: What Is It? »

This is the first in a series of blogs about the Statement of Financial Affairs and the questions it asks.
The Statement of Financial Affairs (SoFA) is a rather long document that is filed in every bankruptcy case. It consists of 18 questions if you don’t have a business, and 25 if you do.
This series of [...]

How Much Is a Trillion? »

President Obama’s proposed budget calls for a deficit of over One Trillion Dollars. How much is a trillion?
One Trillion Dollars can pay the rent for every renter in the US for three years…
One Trillion Dollars can pay the mortgages for every homeowner in the US for 14 months…
One Trillion Dollars can buy all the homes [...]

Banks’ Future Woes in One Word: Plastic »

So read the headling in this CNN-Money story. As this article noted:
Just last month, Bank of America CEO Ken Lewis warned lawmakers at a high-profile Congressional hearing on the government’s $700 billion rescue plan that he had no doubts 2009 would be an “awful year” for the credit card industry.
Unfortunately for Lewis and his peers, [...]

How Much Do I Have to Pay the Chapter 13 Trustee? »

Clients always ask how much their Chapter 13 Plan payment will be, and how much they will have to pay the Chapter 13 Trustee each month.
This isn’t an easy question to answer, since there are four different tests used to determine the number: the Means Test, the Chapter 7 Liquidation Test, the Disposable Income Test, [...]

Has the Recession “Bottomed Out”? »

This week’s media has been filled with stories about the Dow’s 9% increase, GM’s refusal of the next installment of its bailout money, Citibank’s report of being in the black so far this year, and banks’ requests to return TARP money.
So with all this good news, does it mean that the recession has “bottomed out,” [...]

Laid Off? I’m Going to Disney World! »

According to this article in the February 2, 2009 Charlotte Observer, 3,400 people have already applied for 2,100 temporary summer jobs at the local Carowinds amusement park, more than triple the usual number. Of interest are the types of people applying.
Carowinds Human Resources Director Sandy Cranford said that the jobs usually attract college students, but [...]