Regardless of the ultimate destination, all bankruptcy roads run 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 […]
Sole Proprietorship In Chapter 7 In Trustee’s Cross Hairs
Why would a bankruptcy 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 proprietorship 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 attorney 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 is often an appealing strategy. But, make sure that you don’t let a bad situation get worse. Get your arms around Bankruptcy Code ยง109(g). When only a do-over will do, don’t wait around. […]
What Bankruptcy Counsel Forgot
How do you forget capital gains taxes? More easily than you would think, apparently. When I see the same blunder twice in two months and the price tag to the client approaches $100,000, it’s time to write about it. It surfaced in two Chapter 11 cases for individuals where I have subbed upon conversion to […]
Delay Division of Community Property At Peril of Bankruptcy
Put off the division of community property in a marital dissolution at your peril. Hesitate and you risk all of the community property being swept up in a bankruptcy by the other spouse. And you’ll have little control where community property assets fall. Community property is all in The threat begins with the bankruptcy law […]
