I commend to you 11 U.S.C. 522(c). For therein lies a magical tool even for the client who has non dischargeable debts. It boils down to this: exemptions, like diamonds, are forever. Once an exemption is allowed in a case that isn’t dismissed, that property is forever beyond the reach of creditors whose claim arose […]
What No One Told Me About Adversary Pleading
When I learn something new about bankruptcy after 30 years of practice, I don’t know whether to be ecstatic or scared witless. But learn something I did when I read the ABI Journal’s article on FRBP 7008(b). In short, FRBP 7008(b) requires that claims for an award of attorneys fees in an adversary complaint must […]
Keeping Watch Over Chapter 13 Claims
Do you remain on watch in your client’s Chapter 13 after confirmation? The attorney for the couple in my office yesterday apparently thought she was off duty after confirmation. As a result, the debtors paid more than $30,000 to the wrong creditor, the mortgage arrears weren’t paid, and their case is on the verge of dismissal […]
Time Can Be On Your Side
Lucky us. Not. We have a new, multipage model Chapter 13 plan in several Bay Area divisions. It exalts mathematic precision over the intentions of the plan. Have the wrong number for the fixed monthly payments to particular creditors, and the money is distributed, willy-nilly, to unsecured creditors. (There are other idiocies that I will surely […]
Fleshing Out Incorporation Before Bankruptcy
As Miss Manners might say, you, Gentle Reader, have a secret fan. A fairy god-lawyer, so to speak. She’s my law partner who watches the new bankruptcy lawyers around us, and pokes me: “You’ve got to tell them ….” Fill in the blank for the topic du jour. Renee thinks there’s more you should know […]
I Assume, Redux
If there are 50 ways to leave your lover, there must be 150 ways that your bankruptcy client can get it wrong. And at the end of the day, you risk taking flak for the screw up. Fair or not. So I’ll share this week’s dust up in my office and maybe we all can […]
Chapter 7 Risks Everything For Operating Business
Shut the business down, the Chapter 7 trustee told debtor’s counsel. Or get an order allowing continuing operation. My addition to the litany: bring a motion to abandon. Why order shutdown? The debtor was a partner with his parents in a restaurant that they wanted to continue to run. Yet somehow, no one had considered […]
