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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Recent Posts in Chapter 7 Bankruptcy

  • Credit Card Fraud in Chapter 7 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 4-May-2016

    While most credit card debt is dischargeable in a Chapter 7 bankruptcy, there are occasions when a judge may require a debtor to repay a lender. The most common reason for judges to require repayment of credit card debt in Chapter 7 bankruptcy is if the debtor committed fraud. In other words, if the judge determines that the debtor charged up a high balance on their card without any intention of ...
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  • What Bankruptcy Can & Cannot Do For Federal Tax Debt

    Posted By Allmand Law Firm, PLLC || 24-Mar-2016

    If you have federal tax debt, you may be wondering if filing for bankruptcy can do anything to help your situation. You may have even heard commercials offering the hope of eliminating tax debts in bankruptcy, but it’s actually not that simple. Most tax debts can’t be discharged by bankruptcy. And unfortunately, if you are being audited, a bankruptcy filing won’t stop the audit ...
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  • What Happens When You Can Not Afford Filing Fees for Chapter 7 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 1-Apr-2014

    What Happens When You Can't Afford Filing Fees for Chapter 7 Bankruptcy? One reason why many debtors may not have started the filing process for Chapter 7 bankruptcy is their inability to pay filing fees. It is possible you may be able to have them waived if you meet necessary qualifications for your state. For instance, if you want to file for protection in Texas, your household size and ...
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  • Keeping Your Vehicle through Reaffirmation in Chapter 7 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 7-Feb-2014

    Debtors may wonder if they can keep their vehicle in a Chapter 7 bankruptcy case if they are still making payments on it. Others may wonder what can happen if they have been unable to make payments but they still want to retain the vehicle. Even though there are two options a debtor may have in this type of situation, many revert to reaffirmation as long as they are able to maintain their end of ...
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  • Making It through Meeting of the Creditors in Chapter 7 Bankruptcy

    Posted By Allmand Law Firm, PLLC || 20-Nov-2013

    An important meeting during Chapter 7 bankruptcy proceedings includes the 341 meeting, also known as meeting of creditors or trustee's meeting. As long as you provide honest and accurate details about your finances you should be fine. Some debtors are known to get nervous about the meeting, but having experienced legal representation can help you get a general idea of what to expect. The good ...
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  • Are Health Savings Accounts Protected in Chapter 7 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 5-Sep-2013

    Health Savings Accounts and Bankruptcy Many who have a health savings account (HSA) or a medical savings account (MSA) may wonder whether such funds can be protected in chapter 7 bankruptcy. In many cases it depends on where you live and if the state offers protection for these types of funds. This can be an interesting question for debtor as it also depends on whether the funds are considered ...
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  • Potential Dangers of Filing Chapter 7 Bankruptcy on Your Own

    Posted By Allmand Law Firm, PLLC || 12-Aug-2013

    Debtors exploring the option of filing Chapter 7 bankruptcy on their own without an attorney, (pro se) may be in for a few surprises if they do not know what they are getting themselves into. While it is true you have the option to file on your own, it is often not advised for debtors to do so for several reasons. The bankruptcy code is filed with complex rules and regulations an experienced ...
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  • Do I Have To Give Up My House in Chapter 7 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 18-Jul-2013

    This is a common question among debtors who either don't own their home, or are still making mortgage payments. Some homeowners worry about what will happen to their house when they file chapter 7 bankruptcy. It helps to understand your options prior to filing based on your unique situation. In most cases, debtors end up keeping their home when they file, while meeting necessary requirements ...
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  • Chapter 7 Bankruptcy Misconceptions

    Posted By Allmand Law Firm, PLLC || 1-Jul-2013

    Many consumers and small business owners who consider Chapter 7 bankruptcy protection are confused about the process due to many misconceptions or false information. While bankruptcy laws were updated in 2005, there still seems to be a considerable amount of misunderstandings about who can file and whether it damages your reputation. One of the most effective ways in debunking such myths includes ...
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  • Can I Keep Cash I Have On Hand in Chapter 7 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 21-May-2013

    Keeping Cash on Hand During Chapter 7 Bankruptcy There are exemptions available in Chapter 7 bankruptcy that may help protect your cash. Although the cash in question has to qualify as an exempt asset. It's common for consumers to be afraid of filing in fear of losing cash assets. The good news is you may be able to retain your cash and other assets of value upon learning which bankruptcy ...
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  • How Do You Know If You Qualify for Chapter 7 Bankruptcy?

    Posted By Allmand Law Firm, PLLC || 16-May-2013

    Chapter 7 bankruptcy eliminates unsecured debt such as medical bills, credit card debt, and payday loans. In order to understand whether you qualify is by reviewing your eligibility factors. The most effective way to learn if you qualify includes discussing your situation with an experienced bankruptcy attorney. Meeting qualifications of the means test and providing proof of completion of credit ...
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  • Using Chapter 7 Bankruptcy to Discharge Business Debt

    Posted By Allmand Law Firm, PLLC || 16-Apr-2013

    Chapter 7 Bankruptcy and Business Debt Many business owners are confused on whether a personal bankruptcy filing has the ability to wipe out business-related debt. In many cases, this is possible depending on the type of debt and whether you are indeed personally liable for the debt. The way your business is structured may also affect your ability to obtain a discharge. Chapter 7 bankruptcy can ...
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  • How Planning Ahead May Help You Keep Your Tax Refund in Chapter 7 Bankruptcy

    Posted By admin || 22-Mar-2013

    If you file for Chapter 7 bankruptcy, you may not need to worry about your tax refund if you take simple steps to plan beforehand. If you are anticipating a refund or you have received it and you plan to file for protection, it is likely you want to know what will happen. It often depends on timing. The good news is there are a few things you can do to keep your refund. A tax refund is an asset ...
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  • 5 Frequently Asked Questions about Chapter 7 Bankruptcy

    Posted By admin || 13-Mar-2013

    Understanding Chapter 7 bankruptcy can help you make an informed decision about whether filing is the best option for your situation. Getting answers to questions you may have about the process can be an important factor in choosing how to move forward with your finances. It's an opportunity to learn the facts while clearing up misconceptions about how the process works. While the following ...
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  • Can Chapter 7 Bankruptcy Help Protect Life Insurance Proceeds?

    Posted By admin || 11-Jan-2013

    Bankruptcy and Life Insurance Proceeds The law does show a considerable amount of respect when it comes to life insurance. Life insurance proceeds may be considered property of the bankruptcy estate depending on how you are entitled to them. There are exemptions that may help protect proceeds, but it is important to disclose details of an insurance payout to your attorney or trustee so that ...
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  • Can I Keep a Cash Gift Received While in Chapter 7 Bankruptcy?

    Posted By admin || 10-Jan-2013

    A cash gift received while in bankruptcy may be protected, but if you were entitled to receive it before you filed this is an issue to review in more detail. It comes down to understanding if the cash gift was in fact a "gift." If there is no entitlement prior to the filing than most likely you'll be able to keep it. There are other situations to consider depending on what type of gift you ...
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  • Can I Keep My Credit Card if I File Chapter 7 Bankruptcy?

    Posted By admin || 4-Jan-2013

    Most people look to file Chapter 7 bankruptcy to eliminate credit card debt. Some feel it may not be a good idea to keep your credit card especially if you plan on using it after your case is completed. The good news is it is possible to keep your credit card after filing bankruptcy. Many like to have at least one credit card afterwards for emergencies or when certain times call for a credit card ...
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  • Does Chapter 7 Bankruptcy Protect Accident Insurance Proceeds?

    Posted By admin || 20-Dec-2012

    Bankruptcy and Accident Insurance Proceeds If you received proceeds due to an accident you were involved in, there are issues to consider that can affect their protection eligibility in a chapter 7 bankruptcy. Depending on when the accident took place and why the proceeds were paid, bankruptcy exemptions may protect proceeds from creditors. An issue that will be under review includes when the ...
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  • Does All Unsecured Debt Qualify for Discharge in Chapter 7 Bankruptcy?

    Posted By admin || 12-Oct-2012

    Chapter 7 bankruptcy is the most common chapter filed because of its ability to wipe out unsecured debt. Filing Chapter 7 may help eliminate most types of unsecured debt but it often depends on the type of debt. Common debts that are wiped out in Chapter 7 include medical bills and credit card debt. There are unsecured debts that are considered non-dischargeable in Chapter 7 bankruptcy; meaning ...
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  • What You Should Know about Meeting of Creditors in Chapter 7 Bankruptcy

    Posted By admin || 6-Aug-2012

    In Chapter 7 bankruptcy, a meeting of creditors takes place with attendance being mandatory for the debtor. It's a small hearing that allows creditors to get information about finances of the debtor. The meeting may also be referred to as the 341 hearing. The meeting of creditors allows the bankruptcy trustee and creditors to review your financial situation while asking questions about your ...
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  • What Happens to My House if I File Chapter 7 Bankruptcy?

    Posted By admin || 18-Jul-2012

    Your House During Chapter 7 Bankruptcy Many debtors are under the impression that they will automatically lose their home if they file Chapter 7 bankruptcy. The idea has even kept many from filing to begin with but in most cases, you'll be able to keep personal property including your home. The ability to keep your home often depends on several factors including exemptions and any equity your home ...
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  • Is Chapter 7 Bankruptcy an Option to Help Me Keep Secured Property?

    Posted By admin || 25-Jun-2012

    Secured Property and Chapter 7 Bankruptcy It's common to be told by your bankruptcy attorney or trustee that secured property should be paid for or returned in a Chapter 7 bankruptcy case. Meaning if you have a debt that includes secured property with a lien, you'll have to set up a payment arrangement with the creditor or just turn over the property. While this is often the case, it's not always ...
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  • What You May Not Know about Chapter 7 Bankruptcy

    Posted By admin || 13-Jun-2012

    Bankruptcy can sometimes be complicated but it can be even more challenging when you don't understand the process clearly due to myths, misconceptions or false information that isn't true. Chapter 7 bankruptcy may help you get the fresh start you're looking for but it also helps to get accurate details to help you make an informed decision so your financial situation has a positive outcome. Many ...
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  • Most Common Questions About Chapter 7 Bankruptcy

    Posted By admin || 24-May-2012

    Chapter 7 bankruptcy may be the most common chapter filed but it is common to have questions about the process if it is being considered as a solution to help handle overwhelming debt. Discussing questions and concerns with a qualified bankruptcy lawyer can help determine if the process if right for you. Common Questions About Chapter 7 Bankruptcy The following questions are often asked by ...
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  • Dischargeable Debts in a Chapter 7 Bankruptcy

    Posted By admin || 9-Apr-2012

    When it comes to Chapter 7 bankruptcy, the primary goal is to get most (if not all!) of your personal debts discharged. From the sky-high credit card bills to medical debts - and everything in between - discharging your biggest debts can give you the fresh start you need to start living a financially stable life. However, it is important to note that not all of your debts will be dischargeable ...
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  • What Can I Expect to Happen During Chapter 7 Bankruptcy?

    Posted By admin || 22-Feb-2012

    Most people who file Chapter 7 bankruptcy have little assets and qualify to have most of their unsecured debt discharged. Unsecured debt that may qualify to be wiped off or discharged includes medical bills and credit cards. Having little assets and qualifying debt can help make the process a lot easier. Keep in mind, there are specific qualifications that should be met in order to complete your ...
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  • The Five Biggest Myths About Chapter 7 Bankruptcy

    Posted By admin || 27-Jan-2012

    It seems like everyone has an opinion about Chapter 7 bankruptcy - and they're all too willing to share it with you. From gut-wrenching assertions that you'll lose your house to fear-inducing statements about the black mark it will leave on your credit score forever, there's no denying that these opinions create an aura of fear, uncertainty and stress regarding filing Chapter 7 bankruptcy. ...
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  • The Trustee Review Process In Chapter 7 Bankruptcy

    Posted By admin || 22-Dec-2011

    Trustee Review Process In Chapter 7 Bankruptcy Chapter 7 bankruptcy cases are overseen by a trustee who is responsible for examining and liquidating assets to pay creditors. It's important for the bankruptcy debtor to understand exactly how this process works so that they can do thing that will make the process go smoother. Let's take a closer look at the bankruptcy trustee review process: ...
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  • Fail the Means Test and Still File Chapter 7 Bankruptcy?

    Posted By admin || 20-Dec-2011

    Failed the Means Test? Still Want to File Chapter 7? Some people who fail the Means Test aren't satisfied with the option of filing for a Chapter 13. There is still a chance that you can file for a Chapter 7 bankruptcy but you'll have to prove that you have a special circumstance that requires a review and is an exception to the rule or you'll have to work around the Means Test. Review the ...
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  • Redemption In Chapter 7 Bankruptcy

    Posted By admin || 12-Dec-2011

    In Chapter 7 bankruptcy a debtor may have an opportunity to redeem some personal property. Redemption is not reaffirmation; but is similar in that the debtor gets to keep secured property in bankruptcy. Let's take a closer look at redemption in Chapter 7 bankruptcy: What Is Redemption? Redemption is when a bankruptcy debtor pays off the secured portion of a loan so that they can not only reduce ...
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  • Deadlines in a Chapter 7 Bankruptcy

    Posted By admin || 17-Nov-2011

    What are the Deadlines for a Chapter 7 Bankruptcy? Like all things legal, a Chapter 7 bankruptcy has deadlines that signify important milestones in your case. The following deadlines are ones you want to take particular note of because they're very important. 10 Days after the 341 Meeting Ten days after your 341 meeting with the bankruptcy trustee and your creditors you will receive a notice ...
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  • Getting a Mortgage After a Chapter 7 Bankruptcy

    Posted By admin || 8-Nov-2011

    Once you've filed a Chapter 7 bankruptcy you can expect that fact to stay on your credit report for up to 10 years and how quickly you build you credit back up depends on the steps you take to rebuild it. But fortunately for Chapter 7 bankruptcy filers mortgages are handled a bit differently than unsecured loans. A mortgage is a secured loan, secured by the home, which means that if you don't make ...
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  • Break the Poverty and Debt Cycle with Chapter 7 Bankruptcy

    Posted By admin || 31-Oct-2011

    Need to Apply for Chapter 7 Bankruptcy? Then You're Not Alone The US Census Bureau has determined that the average income, for the past five years, for American households leveled at just over $46,000. But for millions of families across the country, they fall not just below the median income, but the poverty line altogether. Statistics indicate that almost 39 million families (or 13 to 17% of the ...
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  • Neglect Of Fiduciary Duty Can Render Some Debts Nondischargeable In Bankruptcy

    Posted By admin || 9-Aug-2011

    In the recent Chapter 7 bankruptcy of a Texas debtor, the bankruptcy court ruled that debt owed to a partnership would be nondischargeable because the debtor willfully neglected their fiduciary duty. Early on in his tenure as president of B & W, Harwood (the debtor) began withdrawing funds from FNFS for his personal use, including a $200,000 loan in 1997 to finance construction of a large ...
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  • What To Expect In A Business Chapter 7 Bankruptcy

    Posted By admin || 15-Jul-2011

    When a Business Files Chapter 7 Bankruptcy When a business decides that they can no longer pay their debts and must file bankruptcy, the process is different than if they were an individual. Here's what you need to know: Once you decide to place your business in Chapter 7 bankruptcy, you are deciding that the business will no longer exist. You will need to declare all of the business' liabilities ...
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  • What Happens To My Car Loan After Chapter 7 Bankruptcy?

    Posted By admin || 28-Sep-2010

    When a debtor files Chapter 7 bankruptcy, they have several options for handling the debt associated with their car: Chapter 7 Bankruptcy Car Loan Option #1 The first option for debtors in Chapter 7 bankruptcy is the surrender of their car and the discharge of their car loan balance. If they choose this option, the vehicle financer will auction off the car and if there is a balance, that balance ...
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  • Good Faith vs. Bad Faith Chapter 7 Bankruptcy Conversion

    Posted By admin || 26-Sep-2010

    Many debtors considering Chapter 13 bankruptcy worry about their ability to make bankruptcy plan payments if they lose their job or their income decreases for some reason during their course of their bankruptcy. But the bankruptcy code has already taken into account the possibility that a debtor may not be able to complete their Chapter 13 bankruptcy payment plan and will allow a debtor to convert ...
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  • Are You A High Income Debtor? You May Qualify For Chapter 7 Bankruptcy

    Posted By admin || 30-Jul-2010

    High income debtors who might otherwise not qualify for Chapter 7 bankruptcy may still be able to liquidate their debts if the majority of their debts are non-consumer debts. In an effort to make sure that entrepreneurs felt free to take risks in business, the bankruptcy code was written in a way that high income individuals with mostly non-consumer debts incurred in the course of business would ...
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  • Which Assets Become Part Of Bankruptcy Estate After Chapter 7 Conversion?

    Posted By admin || 29-Jul-2010

    Your Assets After a Converted Bankruptcy One of the most common conversions that occurs in bankruptcy is the conversion of Chapter 13 bankruptcy cases to Chapter 7 bankruptcy. But what happens to assets when the conversion takes place? Let's take a look at what the bankruptcy code says: Except as provided in paragraph when a case under chapter 13 of this title is converted to a case under another ...
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  • Court Rules Tax Refund Partial Belongs To Bankruptcy Estate

    Posted By admin || 31-May-2010

    In the Chapter 7 bankruptcy case of Krahn, Joseph A. and Kerri K.; In re, the bankruptcy court sustained a bankruptcy trustee's ruling that the debtors turnover $3,952 from their federal income tax refund. The details of the bankruptcy case: The debtors filed for Chapter 7 relief on Aug. 29, 2008. Their 2008 federal tax return showed no tax liability, but $6,916 in refundable credits including ...
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  • Debtor's Luxury Vehicle Purchase Indicated Bad Faith Bankruptcy Filing

    Posted By admin || 24-May-2010

    In the Chapter 7 bankruptcy case of Hageney, Keith T. and Carolyn J.; In re, the bankruptcy court ruled that a debtors' Chapter 7 bankruptcy case was probably filed in bad faith because the debtor purchased an unnecessary luxury item just 10 weeks before filing bankruptcy. The details of the bankruptcy case: The debtor-husband was a self-employed insurance broker until late in the summer of 2008 ...
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  • Bankruptcy Court Finds Creditors To Be In Contempt For Violating Discharge

    Posted By admin || 21-May-2010

    In the bankruptcy case of Jarvar, Stanley E. and Barbara J.; In re (Jarvar v. Title Cash of Montana Inc., et al.), the bankruptcy court found Title Cash (the creditors) to be in civil contempt for violating the bankruptcy discharge. The details of the bankruptcy case: The debtor filed for Chapter 13 relief on Nov. 23, 2001. On March 29, 2002, Title Cash filed proofs of claim for two secured ...
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  • Commercial Real Estate Developers Chose Bankruptcy To Thwart Foreclosure

    Posted By admin || 18-May-2010

    David Bagwell, a Colleyville luxury home developer has placed the partnerships that own three of his subdivisions into Chapter 7 bankruptcy so that he can avoid foreclosure on the undeveloped land. The group of creditors who hold the debt for the partnerships called Old Grove Ltd, Broughton Ltd. and Broadland Ltd., demanded payment from Bagwell, forcing him to file bankruptcy or face foreclosure. ...
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  • Bankruptcy Court Overrules Objection To Reaffirmation Agreement

    Posted By admin || 17-May-2010

    In the Chapter 7 bankruptcy case of Boliaux, Edward F.; In re, the bankruptcy court overruled an objection to a reaffirmation agreement saying that the objection, which was based on the hardship presumption, was moot because the presumption had expired. The details of the bankruptcy case: The Chapter 7 debtor reaffirmed a debt owed to American Chartered Bank. The debt was secured by a mortgage on ...
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  • Former Detroit Piston Files Chapter 7 Bankruptcy

    Posted By admin || 16-May-2010

    Former Detroit Piston Derrick Coleman filed for Chapter 7 bankruptcy with $4.7 million in debts and a little over $1 million in assets. Coleman, whose 15-year NBA career ended with the Pistons in 2005, had interests in a wide range of real estate, retail and restaurant companies. His interests included a stake in Detroit's Sweet Georgia Brown restaurant, which closed in February, and franchises in ...
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  • Overcoming The Presumption Of Bankruptcy Abuse

    Posted By admin || 12-May-2010

    When a debtor decides to file bankruptcy, in order to determine if they should file Chapter 7 bankruptcy or Chapter 13 bankruptcy it must first be determined if their income is above the median income for Texas. And a debtor's income is only determined by their past six months of income before filing bankruptcy. If it is determined that a debtor considering bankruptcy earns more than the median ...
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  • Three Reasons Why You Should Not Pay Taxes With A Credit Card

    Posted By admin || 11-May-2010

    It has become a lot easier for taxpayers to pay their taxes using a credit card; but doing so may not be a good idea. Below are three reasons why a debtor should not pay their taxes with a credit card. You will end up paying more. Yes paying your taxes late will result in interest and penalty fees; but that won't be nearly as much as the interest you will pay on a credit card. Compared to credit ...
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  • Should My Business File Chapter 7 Bankruptcy?

    Posted By admin || 11-May-2010

    While individual debtors have the right to file Chapter 7, Chapter 11 or Chapter 13 bankruptcy, corporations and LLC's only have the right to file Chapter 11 bankruptcy or Chapter 7 bankruptcy. While we often hear of companies filing Chapter 11 bankruptcy, we don't often get to see the inner workings of a corporate Chapter 7 bankruptcy aka liquidation. But many business owners often consider ...
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  • Debtors Are Not Required To Financially Punish Themselves Because Of Past Mistakes

    Posted By admin || 6-May-2010

    There seems to be an upsurge of anti-bankruptcy rhetoric aimed at indebted Americans to make them feel guilty about their financial circumstances which force them into bankruptcy. Since the critics can't honestly say that bankruptcy is not an effective way to discharge debt and get a fresh financial start, now many are saying that bankruptcy is immoral and too easy. Let's get to the bottom of the ...
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  • Creditor Must Provide Solid Evidence When Accusing Debtors Of Malicious Acts

    Posted By admin || 4-May-2010

    In the bankruptcy case of Powell, James D. and Betty J., In re (Ameri­can Bank of Commerce v. Powell) , the bankruptcy court ruled against the creditor who accused the debtor of willfully and maliciously causing injury. The details of the bankruptcy case: The elderly debtor kept "pasture cattle" on 20 leases that included properties with rivers and heavy mesquite growth. The debtor maintained his ...
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  • Court Finds That Bank of America Willfully Violated Debtors' Bankruptcy Discharge

    Posted By admin || 2-May-2010

    In the Chapter 7 bankruptcy case of McClure, Danny J. and Kimberly D.; In re (McClure v. Bank of America, et al.) , the bankruptcy court found that the creditor Bank of America (BoA) and the collection agency willfully violated the discharge injunction and awarded the debtors $2,500 in compensatory damages and $79,839 in attorney's fees. The details of the bankruptcy case: When the debtors filed ...
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  • How Can I Keep My Car In Bankruptcy?

    Posted By admin || 1-May-2010

    In most parts of the country having a car can mean the difference between being able to keep your job or becoming unemployed. That's why it is important that debtors considering bankruptcy understand the options available to them if they want to keep their car after filing for bankruptcy. If a debtor with a car loan files Chapter 7 bankruptcy there are few options available to them: The debtor can ...
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  • Divorced Debtor's Interest In Marital Property Becomes Part Of Bankruptcy Estate

    Posted By admin || 27-Apr-2010

    In the bankruptcy case of Radinick, Kimberly A.; In re (Bohm, Trustee, v. Radinick) , the bankruptcy court ruled that any interest in a debtor's es­tranged spouse's property which was awarded to the debtor in a divorce action would be property of the bankruptcy estate. The details of the bankruptcy case: The debtor filed for divorce and requested equitable distribution of marital assets on Nov. ...
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  • Voluntary Foreclosure Property Must Comply With City Code

    Posted By admin || 1-Apr-2010

    Chapter 7 bankruptcy debtors who surrender their property during bankruptcy may still be bound by the code and regulations enforced by their city or municipality until the secured creditor takes action to regain title of the property. Until the creditor legally holds the title to the property the homeowner may still liable for complying with code and could be subject to fines if found to be in ...
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  • Five Tips For Self-Employed Debtors Filing Bankruptcy

    Posted By admin || 15-Mar-2010

    Tip #1 - Make sure your business and personal finances are separate before you file bankruptcy. Take an effort to keep track of your business expenses and income while simultaneously keeping your private finances in order before you bankruptcy filing. Tip #2 - Work with an accountant if necessary to calculate what your monthly income is before you file bankruptcy. The bankruptcy court will look at ...
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  • Can I Convert My Chapter 13 To Chapter 7 Bankruptcy?

    Posted By admin || 8-Mar-2010

    Chapter 13 bankruptcy allows a debtor to repay all or part of their debts over a 3 to 5 year period of time. However, some debtors who have filed Chapter 13 bankruptcy may find themselves facing new financial difficulties at some point during the repayment period that prevents them from making agreed upon payments. This reason alone has been major factor is scaring off some debtors from filing ...
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  • Online Video Sharing Company Files Chapter 7 Bankruptcy

    Posted By admin || 8-Mar-2010

    Veoh, an online video sharing service plans to file for Chapter 7 bankruptcy and liquidate its business, according to the company's founder, Dmitry Shapiro. Shapiro posted a passionate open letter blaming a legal battle with Universal Music Group for the company's bankruptcy: "Two years ago, Universal Music Group (UMG), the largest music company in the world sued Veoh alleging copyright ...
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  • Unlisted Debt Comes Back To Haunt Bankruptcy Debtor

    Posted By admin || 3-Mar-2010

    In the bankruptcy case of Mammola, Robert J.; In re, 20 the bankruptcy debtor failed to list a creditor who later filed a lawsuit against the debtor. After attempting to reopen the bankruptcy case so that the omitted creditor could be included in the discharge, the bankruptcy court denied the debtor's request. The details of the bankruptcy case: The debtor filed for Chapter 11 relief in 1990. In ...
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  • It's Been Years Since I Stopped Paying My Credit Card, Will They Sue Me?

    Posted By admin || 19-Feb-2010

    In the state of Texas there is a four year statute of limitations on the ability of debt collectors to sue a debtor because of an unpaid credit card debt. What that means is that if after your credit card debt is charged off, a debt collector only has 4 years to sue you and get a judgment. If they have not sued you within 4 year, they are not allowed to sue you for repayment of the credit card ...
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  • Can I Discharge My Home Equity Loan In Bankruptcy And Keep My Home?

    Posted By admin || 5-Feb-2010

    Home Equity Loans and Bankruptcy During the boom, many homeowners took out home equity lines of credit (HELOC) and are now struggling to repay those loans plus their mortgage. Can a debtor discharge their HELOC in Chapter 7 bankruptcy and keep their home? The short answer is no. A debtor can discharge the home equity loan in Chapter 7 bankruptcy but they cannot discharge it AND keep their home. ...
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  • Air America Radio Files Chapter 7 Bankruptcy

    Posted By admin || 5-Feb-2010

    Air America Radio, a radio network that was launched in 2004 was abruptly shut down after experiencing severe financial troubles. The left leaning radio network, which owned 100 radio outlets nationwide, filed Chapter 7 bankruptcy so that it can be liquidated to repay creditors. "The very difficult economic environment has had a significant impact on Air America's business. This past year has seen ...
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  • Filing Bankruptcy While Holding Rental Property

    Posted By admin || 26-Jan-2010

    Bankruptcy and Rental Property Holding rental property when filing bankruptcy can impact your "means test" and your post-bankruptcy fresh start depending on the circumstances surrounding that property. Let's take a look at a few scenarios: If you have a rental property with a paying tenant, the rent received will be counted towards your income. This fact alone could cause you to "fail" the means ...
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  • What Is The Process Of Chapter 7 Bankruptcy?

    Posted By admin || 19-Jan-2010

    After the debtor delivers all requested paperwork to his/her bankruptcy attorney, the bankruptcy petition is filed with the bankruptcy court. The bankruptcy petition is generally 45 to 50 pages long but may be shorter if we are filing an "emergency bankruptcy" which is used when you need bankruptcy fast to stop an imminent foreclosure, wage garnishment etc. Eventually all paperwork must be fully ...
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  • State Farm Insurance May Owe YOU

    Posted By admin || 19-Nov-2009

    A Texas judge ruled that State Farm Insurance must repay $310 million in premiums and back interest to Texas customers for overcharging them on homeowner policies. The ruling will affect State Farm Lloyds residential policies between September 2003 and July 2008. The refund is far less than the $1 billion that consumer advocates wanted, prompting one, Texas Watch, to say Insurance Commissioner ...
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  • Do I Make Too Much Money To File Chapter 7 Bankruptcy?

    Posted By admin || 4-Nov-2009

    For debtors considering Chapter 7 bankruptcy, determining if their income level makes them eligible for Chapter 7 bankruptcy involves taking a "means test." Typically, debtors who earn above the median income level for their family size must file Chapter 13 bankruptcy. Median Income For Texas The median income for Texas is: One person: $38,545 Two people: $54,908 Three people: $57,053 Four people: ...
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  • Ellen Tracy LLC Forced Into Chapter 7 Bankruptcy

    Posted By admin || 13-Oct-2009

    According to an article in the Daily Finance, the U.S. Bankruptcy Court for the Southern District of New York granted a bankruptcy petition for Ellen Tracy LLC forcing the company into an involuntary Chapter 7 bankruptcy. The Chapter 7 bankruptcy filing means that the company will be liquidated. The bankruptcy petition was filed by three creditors/manufacturers of the company who are seeking $4 ...
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  • Should My Business File Chapter 7 Bankruptcy?

    Posted By admin || 6-Oct-2009

    Filing Chapter 7 Bankruptcy as a Business The news headlines are filled with stories about big corporations filing for Chapter 11 bankruptcy, but what about filing Chapter 7 bankruptcy for business? Are there any benefits in filing a Chapter 7 bankruptcy for your business? Well, maybe, let's take a look: If a business owner wants to completely close his/her business and liquidate its assets, ...
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  • What Can I Keep Under Chapter 7 Bankruptcy?

    Posted By admin || 21-Sep-2009

    The burning question in most potential bankruptcy debtors' minds is "What can I keep?" You're understandably worried about losing everything, but let me just put your mind at ease. You're definitely not going to lose everything. In fact, most people keep everything. Bankruptcy was created specifically to help consumers sinking under the waves of financial overburden, and both state and federal law ...
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  • Bankruptcy Benefits: What's In It For Me?

    Posted By admin || 30-Aug-2009

    Bankruptcy definitely has a bad rap in our country, but it should not. It is the perfect solution for many consumers, providing them the one and only opportunity they have to lighten their heavy financial burdens which they might otherwise suffocate under. Here is a list of potential benefits to filing for bankruptcy. 1. Chapter 7 bankruptcy provides for the discharge of most, if not all, of your ...
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  • Car Title Loans Put You at Financial Risk

    Posted By admin || 29-Aug-2009

    Car title loans are marketed by creditors as a savior for the little guy; but these high interest loans are much like payday loans in that they can carry a triple-digit annual interest rate and are very difficult to repay in full when you're already struggling financially. Let's take close look at car title loans and how they work. Car title loans typically have an annual interest rate of 300% or ...
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  • Peanut Plain in Plainview Bankrupt

    Posted By admin || 28-Aug-2009

    Texas-based Plainview Peanut Co., LLC filed Chapter 7 bankruptcy in a Virginia court last month, just two months after its parent company Peanut Corporation of America filed bankruptcy in the same court. Plainview Peanut Co. is the subsidiary chiefly responsible for the salmonella outbreak earlier this year. The processing plant in Plainview, TX had been operational since 2005 but was neither ...
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  • Do You Have to Pass the Means to File Chapter 7?

    Posted By admin || 25-Aug-2009

    Bankruptcy involves a very thorough review of your financial situation. An icky but necessary process. Obviously you and your attorney need to examine your broken balance sheet in order to know what needs to be fixed and how to fix it. Part of that process will be determining whether or not you are qualified to file Chapter 7 bankruptcy through a means test. Simply put, a means test is a standard ...
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  • Will Filing Chapter 11 Bankruptcy Work for My Business?

    Posted By admin || 24-Aug-2009

    Chapter 11 bankruptcy is a powerful tool for business owners and high-income/debt individuals seeking bankruptcy relief. Some debtors prefer Chapter 7 bankruptcy because it allows a simple liquidation and discharge of debts giving the debtor a relatively quick fresh start. But there are some essential differences and benefits of Chapter 11 bankruptcy that debtors should be aware of when ...
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  • Help! I Owe Too Much Debt!

    Posted By admin || 21-Aug-2009

    As the price of housing has increased in the past 10 years and access to even more extraordinary amounts of credit have opened up to consumers (until recently), many debtors have found themselves drowning in hundreds of thousands or even millions of dollars in debt. Unfortunately, large amounts of debt can close off certain types bankruptcy to debtors; but it doesn't eliminate your bankruptcy ...
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  • Bankrupt Debtors Lose Discharge After Spending Annuity Payouts

    Posted By admin || 17-Aug-2009

    In the bankruptcy case of (Craney, Fred C. Jr. and Suzanne M.; In re (Forker v. Craney)), the debtors' bankruptcy discharge was revoked because they spent money that was clearly property of the bankruptcy estate. The details of the bankruptcy case: In this Chapter 7 bankruptcy case, debtors reported that the debtor-husband received monthly payments of $324.38 from an annuity. The debtors were ...
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  • Use Caution When Borrowing From Retirement Account During Bankruptcy

    Posted By admin || 17-Aug-2009

    In the bankruptcy case (Barrows, James R. and Terri L.; In re (Bar¬rows v. Christians, Trustee)), debtors accused of acting in bad faith after borrowing funds from their retirement account on the eve of their bankruptcy filing. The details of the bankruptcy case: In the Chapter 7 bankruptcy case, the debtors completed their bankruptcy paperwork stating that they had an average daily balance of ...
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  • Tax Refunds Must Be Disclosed in Bankruptcy Filing Even if It's an Estimate

    Posted By admin || 17-Aug-2009

    In the bankruptcy case (Laroche, Wayne W. and April J.; In re), the bankruptcy court ruled that debtors filing bankruptcy must disclose their tax refund even if it is only an estimate based on previous years. The details of the bankruptcy case: In the Chapter 7 bankruptcy case the debtors failed to disclose their estimated 2008 tax refunds during the first meeting of the creditors on December 15, ...
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  • Consumer Bankruptcy on The Rise

    Posted By admin || 14-Aug-2009

    According to an article in Bloomberg, consumer bankruptcies are on the rise and show no sign or decreasing. Experts predict that consumer bankruptcies will hit a high of 1.4 million by December 31st as more people face job losses and find it difficult to refinance debt. Last month along 126,000 consumers filed bankruptcy, a 34 percent increase from July 2008. And in the first six months of 2009, ...
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  • Current Monthly Income, Bankruptcy and You

    Posted By admin || 13-Aug-2009

    All debtors who are considering bankruptcy must calculate their current monthly income beforehand which will help the bankruptcy court determine whether a debtor qualifies for Chapter 7 bankruptcy or if they need to take the means test to determine their ability to repay their debts. Current monthly income is a term that is deceptive because it does not necessarily reflect the income a debtor is ...
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  • What to Expect When Filing Chapter 7 Bankruptcy

    Posted By admin || 13-Aug-2009

    Filing a Chapter 7 Bankruptcy When considering Chapter 7 bankruptcy, many debtors experience anxiety about the process. Let's take a look at the process for debtors filing Chapter 7 bankruptcy: Step #1 - Meet with your bankruptcy attorney to discuss your financial situation.Bring a list of your creditors, bills, income records and credit report. At the meeting the bankruptcy attorney will help you ...
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  • Bankruptcy Court Conceals Debtor's Identity Due to Medical Disclosures

    Posted By admin || 12-Aug-2009

    In the bankruptcy case of L.K.; In re, (Bankr. E.D.N.Y. 2009), a debtor's request to seal her records due to sensitive medical information revealed during the proceedings was denied; but the bankruptcy court agreed to conceal her identity in court records. The details of the bankruptcy case: A Chapter 7 bankruptcy debtor asked the bankruptcy court to seal her records because an adversary ...
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  • Chapter 7 Bankruptcy Debtor Allowed to File Complaint Against Amway

    Posted By admin || 9-Aug-2009

    In the bankruptcy case of Morrison, F. Joseph; In re (Morrison v. Amway Corp, a Chapter 7 bankruptcy debtor is allowed to file compliant against Amway during his case despite Amway's motion to dismiss the complaint. The details of the bankruptcy case: "The Chapter 7 debtor was a former dis¬tributor for the Amway Corporation. In 1998, he sued Amway alleging that it was improperly calculating ...
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  • Surrendering Your Home in Chapter 7 Bankruptcy

    Posted By admin || 6-Aug-2009

    We've often talked about saving a debtor's home using bankruptcy; but sometimes a bankrupt debtor may discover that surrendering their home during bankruptcy may be the most logical solution to their financial problems. If you file bankruptcy and decide to surrender your home to the mortgage lender, there are a few things you need to know. Even if a debtor surrenders his/her home during a Chapter ...
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  • Federal Reserve Predicts Unemployment Will Hit 10.1 Percent

    Posted By admin || 16-Jul-2009

    According to an article in the Star-Telegram, the Federal Reserve expects that unemployment will top 10 percent and remain high for the next several years. The article said: In fact, most Fed policymakers said it could take "five or six years" for the economy and the labor market to get back on a path of full health in the long term. And, most officials saw "the economy as still quite weak and ...
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  • Bankruptcy Filings Increase By 33 Percent

    Posted By admin || 10-Jun-2009

    According to a report by the Administrative Office of the U.S. Courts, bankruptcy filings for the 12-month period ending March 31, 2009, increased by 33.3 percent over bankruptcy filings for the same period in 2008. As of March 2009 1,202,503 bankruptcies have been filed nationwide. The vast majority of those bankruptcies were filed by individuals. The report said: Chapter 7 filings rose 46.3 ...
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  • Exceptions To Means Testing

    Posted By admin || 1-Jun-2009

    Debtors filing for Chapter 7 bankruptcy are required to take a "means test" which is designed to determine if the debtor has the ability to repay a substantial portion of his/her debts within a three to five year period. However, there are some exceptions to the means test: Social Security Income: Income from social security is not taken into consideration during the bankruptcy means test. For ...
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  • Reaffirming A Debt In Chapter 7 Bankruptcy

    Posted By admin || 7-May-2009

    During Chapter 7 Bankruptcy a debtor is allowed under certain circumstances to reaffirm a debt. What this means is that the debtor will be allowed to continue to pay a debt so that he/she can continue to keep property such as a house or a vehicle. In Chapter 7 bankruptcy, a debtor who desires to reaffirm a debt must get the approval of the bankruptcy court. The bankruptcy court will only allow a ...
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  • Mistaken Tax Debt Plus Credit Card Does Not Equal Nondischargeable Debt

    Posted By admin || 4-May-2009

    In the Chapter 7 bankruptcy case of Rollings, Joseph W. and Janet S.; In re (Chase Manhattan Bank, USA, v. Rollings) the bankruptcy court ruled that credit card debt incurred because debtors used the credit card to pay a IRS bill that they mistakenly believed they owed was not nondischargeable. The details of the bankruptcy case: The Chapter 7 debtor and her husband be¬lieved that they owed $2,267 ...
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  • Debtor Caught In "Fraud" Vortex Saved By Appeals

    Posted By admin || 23-Apr-2009

    There's a very interesting bankruptcy case Grueneich, James B.; In re (Grueneich v. Doeling, Trustee) where a debtor was accused of "gaming the system" and faced his exemptions being denied. Fortunately, the debtor won on an appeal; but the case is a warning to all debtor's filing bankruptcy. The details of the case: The Chapter 7 debtor scheduled several par¬cels of real estate and claimed two of ...
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  • Reaffirmation Denied Because Of Lack Of Income

    Posted By admin || 10-Apr-2009

    There's an interesting Chapter 7 Bankruptcy case ( Sawyer, Kim E.; In re, ) where a debtor attempted to reaffirm a debt; but was denied the reaffirmation because she lacked income and failed to prove how the debt would be paid The details of the Chapter 7 bankruptcy case: The Chapter 7 debtor asked the court to approve the reaffirmation of $26,331 owed to HSBC Auto Finance. The debt was secured by ...
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  • Tools-Of-The-Trade Exemption Valid Even When Business Temporarily Closed

    Posted By admin || 1-Apr-2009

    There was an interesting Chapter 7 Bankruptcy case Weimann, Vincent O. and Brenda K.; In re, (Bankr. N.D. Ill. 2009) involving a debtor who was able to exempt property as tools-of-the-trade despite a temporary interruption in his business. The details of the case: The Chapter 7 debtor-husband owned a boat rental business. He operated the business in 2006 and 2007, losing money both years. He ...
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  • Debtor's Attempt To Save Marriage Allowed In Bankruptcy

    Posted By admin || 1-Apr-2009

    There's an interesting bankruptcy case, Carver, Chaddrick R.; In re (Richardson, Trustee, v. Carver), (Bankr. C.D. Ill. 2009) in which a debtor transfers the profits from the sell of his house into a bank account of his non-debtor spouse; a move which initially jeopardizes his Chapter 7 bankruptcy discharge. The bankruptcy allows the transfer because the court noted that it was made in an attempt ...
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  • Consumer Spending Drops, Savings Rates Rise

    Posted By admin || 3-Feb-2009

    According to an article in the Dallas Morning News, the Commerce Department reported Monday that consumer spending, which accounts for 70 percent of the nation's economic activity, dropped by 1 percent in December and savings increased 1.7 percent for 2008. But that's from a low of 0.4 percent in 2005 which was only slightly better than the savings rates during the Great Depression another era ...
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  • Abdicating Financial Affairs To A Spouse Can Spell Disaster In Bankruptcy

    Posted By admin || 28-Jan-2009

    In the bankruptcy case of Washington Mutual Bank v. Heard, a debtor's Chapter 7 bankruptcy discharge was denied because she failed to disclose asset transfers that occurred before filing for bankruptcy. In the bankruptcy case the debtor defended her failure to disclose asset transfers by stating that she was a housewife who handed over all financial affairs to her husband. Allegedly she signed ...
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  • Bankruptcy Means Test's Murky Waters

    Posted By admin || 7-Jan-2009

    When massive changes to the bankruptcy law were implemented in 2005, the means test was designed to help clarify who qualifies for Chapter 7 bankruptcy, especially amongst high income debtors. Using "currently monthly income" was supposed to be the key to deciding if a debtor financially qualified for Chapter 7 bankruptcy; but now the courts are split on what exactly constitutes monthly income. ...
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  • Household Size And Bankruptcy

    Posted By admin || 6-Jan-2009

    When filing for Chapter 7 bankruptcy, a debtor with income below the state's median income (for his household size) automatically qualifies for Chapter 7 bankruptcy. But what exactly is household size? And, who can you include in your household? Generally speaking the bankruptcy court includes your spouse and dependents in your household size; but it could include anyone living in the house and ...
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  • Married Debtors Filing Chapter 7 Bankruptcy And Means Test

    Posted By admin || 30-Dec-2008

    Here's another reason why many debtors filing for Chapter 7 bankruptcy without the help of a bankruptcy attorney find themselves in a heap of financial trouble. Most debtors who are married but filing alone don't understand that they will be required to use a means test form to determine their eligibility for Chapter 7 bankruptcy; but that particular form might unlawfully disqualify them from ...
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  • Chapter 7 Bankruptcy And Side Jobs

    Posted By admin || 8-Dec-2008

    If a debtor is filing Chapter 7 bankruptcy he/she may be required to take an income/means test to determine if they meet the income qualifications for filing for Chapter 7 bankruptcy. When it comes to the income/means test, many debtors mistakenly believe that they don't need to report side income from a part-time job or business. The truth is that all income for the six months preceding the ...
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  • Chapter 7 Means Test - Income

    Posted By admin || 24-Nov-2008

    In Dallas-Fort Worth Texas a debtor filing for Chapter 7 bankruptcy may have to take a means test which looks at the debtor's average income over the 6 month period preceding the month of bankruptcy filing. In Texas, a single debtor filing for Chapter 7 bankruptcy must not make more than $3,093 per month or $18,560 over the past six months before filing for bankruptcy if he/she wants to avoid ...
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  • Reaffirming a Car Loan In Chapter 7 Bankruptcy

    Posted By admin || 3-Nov-2008

    When filing for Bankruptcy with an outstanding car loan you may want to consider reaffirming the debt with the lender. When you reaffirm the car loan you agree that you will be responsible for the car loan debt despite filing for Chapter 7 bankruptcy. In other words, even after filing for bankruptcy you will need to pay your car loan and the lender agrees to not repossess the car as long as your ...
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