Regardless of the ultimate destination, all bankruptcy roads lead through Chapter 5. A few bankruptcy cases are derailed there. Because Chapter 5 provisions tell you what comes into the bankruptcy estate, what can be exempted, and what can be changed using Chapter 5. Sometimes the results tell you that bankruptcy is not the right choice […]
Do You Know These Exceptions To Discharge Not In The Bankruptcy Code?
Not all exceptions to discharge in bankruptcy are found in the Bankruptcy Code. Inconvenient, but true. The first two non-Code exceptions to discharge that I encountered in practice were HEAL loans, dischargeable only if denying the discharge would be “unconscionable.” (42 U.S.C. sec. 292f(g)); and a scholarship to attend a U.S. Military Academy. Turns out […]
Is This Corporation Really Separate From Its Owners: A Checklist
In a perfectly executed world, clients who do business via an entity like a corporation or LLC would arrive with their business life neatly separated from their personal lives. However, that’s not the world I practice in. It’s probably not yours, either. Instead, I have to sleuth out the facts, and compare them to the […]
What Goes Into The Liquidation Analysis
The liquidation analysis is central to every form of consumer bankruptcy. Yet too many attorneys think the formula is Assets minus Secured Debts minus Exemptions = Distributable estate Not by a long shot. So let’s walk through the elements of a comprehensive liquidation analysis. You need it if you’re assessing the vulnerability of assets to […]
Sole Proprietorships In Chapter 7 In Trustee’s Cross Hairs
Why would a Chapter 7 trustee shut down a sole proprietorship business with no value? That question comes up again and again from newish bankruptcy lawyers who can’t imagine that a trustee would demand the closing of the debtor’s business. After all, goes the argument, the debtor needs to make a living and the business […]
One Trait Makes A Bankruptcy Lawyer Great
One trait makes a bankruptcy lawyer stand out. Bankruptcy forms promote the view that filing a case is just recording what the debtor owns and owes today. If all you focus on is the here and now, you can assemble a bankruptcy petition. But if there is one, uniform failing in average bankruptcy lawyers, it’s that […]
Rescuing A Troubled Chapter 13: The Unseen Threat
We all get sucked in, at some time, to trying to rescue a Chapter 13 bankruptcy case gone bad. Dismiss and refile if often an appealing strategy. But, make sure that you don’t let a bad situation get worse. Get your arms around Bankruptcy Code §109(g). When only a do-over will do, don’t wait around. […]
