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 […]
The Price Is Not Right
Value, like beauty, is in the eye of the beholder. The value of the debtor’s stuff is colored by their ownership. Get a truer value by asking the client to imagine buying a replacement, just like the one he owns now. Clients cling to old or comfortable ideas of what their personal property is worth. […]
Twelve Ways to Tweak Schedule J
When the debtor’s Schedules J shows a significant number on the bottom line, that “excess income” may suggest the case is an abuse. The first question should always be: “How real are the projected Schedule J expenses”? In districts where the difference between I and J retains some significance in Chapter 7, bankruptcy attorneys need to […]
Maximizing the Initial Client Interview
The first meeting with a bankruptcy prospect is the best and hardest work I do. It’s probably the most important as well. I use it to figure out what the issues in the case are, what the client’s goals are, and to convey what I will need from the client to produce a successful outcome. […]
Beware the Emergency Bankruptcy Filing
Real danger for client and lawyer lurks in the emergency bankruptcy petition: File without all the information about the client’s assets and recent transfers and you risk getting family members sued and the client losing assets. Not to mention your loss of face or worse. Avoidable transfers Chapter 5 of the Bankruptcy Code deals with […]
When To File Bankruptcy
When to file bankruptcy turns out to be just as important as whether to file. I saw it playing out in a single day in my office. All three consultations on Friday featured clients intent on filing bankruptcy IMMEDIATELY. Each of them was certain that they had no time before some disaster would befall them […]
Beyond The Client’s Preconceptions
The clients were in my office considering bankruptcy because of nasty litigation approaching trial. While they would undoubtedly win, the expense was enormous. Even victory in court would ruin them. As we talked about their financial situation and their eligibility for bankruptcy, it came out that there were two liens on their house . On […]
