The answer to this question is not very clear, because there are many factors that go into whether or not making a contribution to your IRA on the eve of your bankruptcy case is a transaction that would be considered to have been done in good faith. Typically you are allowed to perform what’s called […]
The answer to this question might surprise you. Because most paychecks are delivered into the employee’s hand a week after the end of the payment period, between the end of that period and the time the employee actually receives the paycheck that income to be received actually represents an account receivable for the employee. As […]
In many Chapter 13 cases debtors don’t get the plan exactly right the first time around. That’s because creditors haven’t filed their proof of claim yet or the trustee has a different interpretation about the amount that the debtor actually makes and their net disposal income. For these and other reasons, it is a common […]
The answer to this question is almost certainly yes, you can and should take these steps to protect your mortgage investment. Almost every standard loan document provides that the secured creditor can protect their collateral by securing it against the elements and against theft or vandalism or to deal with other common problems like frozen […]
The answer to this question is yes, provided that the creditor actually shipped the goods within 20 days before the bankruptcy was filed. When a debtor receives goods while insolvent, the creditor has what’s called the right of R\reclamation to recover the property or its value from the debtor. In the bankruptcy code, that right […]
Even though a debtor passes the means test the U.S. trustee, the case trustee, or even the creditors can review the bankruptcy case and argue that by the totality of the circumstances it would be abuse for this particular high income debtor to discharge all of their debts in Chapter 7. As a result the […]
There’s a procedure under the Bankruptcy Code that’s called claims estimation that’s used when litigation threatens to drag on for months or even years. before the amount of a claim that is owed to a creditor is actually liquidated and becomes a certain amount. That could be a problem because the debtor wants to file […]
When two or more people are liable on the same debt, they are called co-debtors. Frequently misunderstood is the fact that just because one person files bankruptcy to get protection from a creditor, if there’s a co-debtor on the obligation who hasn’t filed bankruptcy that creditor can still seize that other person’s property or wages. […]
If you’re struggling to make it from paycheck to paycheck because you’re paying credit card bills, medical bills, very old taxes or other claims that could be discharged in bankruptcy, or if your wages are being garnished from a judgment, then getting out from under those debts in a Chapter 7 or Chapter 13 bankruptcy […]
When a creditor writes off or writes down your debt, they frequently tell the IRS that you’ve received income for the amount written off. Called “discharge of indebtedness” income it’s a terrible trap for debtors/taxpayers because under the Internal Revenue Code this income can be taxed. There are two exceptions worth thinking about: First, if […]
