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 […]
Charting The Course of A Case
Planning the bankruptcy often determines whether the case succeeds or fails. To obtain good results for a bankruptcy client, sometimes you have to serve up unpleasant news and force the client to swallow that bitter pill. Hum a chorus of You Can’t Always Get What You Want. Of course, you can’t really force them to […]
What To Say When You Have No Answer
What do you do when you don’t know the answer to a bankruptcy client’s questions? After all, you’re a bankruptcy lawyer. Divorce lawyer Lee Rosen lists six sound responses to the question you can’t answer off the top of your head. His favorite is “I don’t know, but I’ll get back to you”. I find […]
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 […]
6 Basic Points About Tax Liens in Bankruptcy
Everywhere I’ve looked this week, new bankruptcy lawyers are struggling with client tax liens. Here’s my list of basics you need to know about federal tax liens. Tax liens create a secured claim in favor of the taxing authority. That claim incurs interest at the statutory rate. Exemptions, bankruptcy or state, are not effective against […]
Bankruptcy Schedules Call For Payoff Balance
Bankruptcy debtors hear something different when their lawyer asks, “What do you owe on your mortgage”. It’s as though they speak a different language, Client, while we speak Bankruptcy. As bankruptcy lawyers, we need to be bilingual. It shouldn’t be a trick question, but all too often the answer a bankruptcy lawyer gets back is […]
Bankruptcy’s 3 Year Rule for Taxes
Taxes are dischargeable in bankruptcy once they meet the 3 year rule. Don’t get swept away on April 16th and file a bankruptcy designed to discharge taxes without knowing whether the client got an extension to file for the year on the bubble. The three year rule, found in §507(a)(8), starts counting from the day the […]
