The axiom that the only thing constant is change certainly applies in the practice of bankruptcy law. Our client’ s life changes and we’re looking to dismiss a case or convert a case to another chapter. The code deals with this. Section 348 addresses the effect of conversion; 349 follows with the effect of dismissal. […]
Know the Rules of Debt, Divorce & Discharge
Today let’s combine the themes of my last two posts here and talk about the obligation of a spouse to indemnify the other spouse in a divorce from the debts assigned to the spouse. The indemnity obligation is not one most lay people see as a “debt”. It doesn’t involve paying money to the ex, […]
Are You Playing Chapter 7 With A Full Deck Of Cards?
If unscheduled assets are discovered by the trustee, can you dismiss a Chapter 7 case? The question came from the audience of my presentation to bankruptcy lawyers on techniques for the initial interview with the client. It boiled down to: what are the consequences for not doing a skillful job of extracting the whole story […]
Bankruptcy & Divorce: Property Settlements
One change brought by BAPCPA made the choice of chapter in bankruptcy much clearer: the amendment of §523(a)(15). Read with §523(a)(5), now all debts to a spouse, former spouse or a child, incurred in connection with a divorce or separation are non dischargeable in Chapter 7. There’s no longer a balancing-of-the-hardships test for discharge of non […]
Beware The Trustee Carrying Tax Losses
A tax loss carryforward in the hands of a bankruptcy trustee can have results as distressing as crayons in the hands of an unsupervised toddler. Identify the debtor’s tax attributes before you do your liquidation analysis. Whether you are selecting a chapter for a client, working exemption issues, or calculating what a Chapter 13 plan […]
Bankruptcy’s Short Tax Year: Gem Hidden In Plain Sight
Double your tax returns, double your fun? Well, maybe taxes aren’t fun, but they are inevitable. Mastering the gem of the short tax year can mark you as a bankruptcy lawyer who really knows his stuff. The option of selecting a short tax year in bankruptcy is too little understood and too seldom used. This […]
Looking To Be Sued?
Making a special appearance for a colleague has the potential to embroil you in a malpractice suit. Sorry to be the bearer of bad news but making a “special appearance” for another attorney creates an attorney client relationship between you and the debtor. This is the rule in California anyway, found in Streit v. Covington […]
