As has been often explained, Chapter 7 Debtors with primarily business debt, or otherwise not primarily consumer debt, are not subject to the “means test” adopted in the 2005 bankruptcy reform act. In fact, they are not subject to any of the provisions of the Bankruptcy Code allowing Chapter 7 cases to be dismissed for “abuse.” [...]
*Chapter 7 Bankruptcy
What happens to a co-debtor when a debtor files for bankruptcy depends upon the type of case that is filed. Many clients come to my office relieved to find out that a bankruptcy stays proceedings against them, but they worry about whether there is a stay of proceedings for the co-debtor. The client is justified in worrying about the [...]
The bankruptcy means test gets meaner on November 1, 2010, when falling income guidelines go into effect. Consumers thinking of filing bankruptcy who may be close to the median income line should compare the BEFORE and AFTER figures. Filing bankruptcy by Halloween may be a good idea for some consumer debtors. It is no surprise [...]
You live in one county, you are considering an attorney in a different county — does it matter? Do you have to see an attorney in the same county you live? (This is part of what you might be considering when you consider who to hire. Whether the attorney needs to be in the same [...]
Under the U.S. Bankruptcy Code, if a debt is discharged in a bankruptcy case, it does NOT count as taxable income. Bankruptcy-discharged debt is, therefore, much more powerful than merely canceled debt. While canceled debt may create an income tax liability, discharged debt does not. See What is a 1099c and what do I do [...]
In part one, I discussed some recent Bankruptcy Law Network posts on reaffirmation agreements. For part two, though, we’ll focus soley on the reality of a typical auto loan scenario. Forget About the Law “What?” you say. “This site is all about the law!” That’s true, but reality is more important. The reality is that [...]
