Bankruptcy Mastery

Becoming a better bankruptcy lawyer

What’s It Worth To You?

By Filed Under: Chapter 13

Business valuation

If all the children in Lake Woebegon are above average, all the small businesses our clients run are quite valuable. If the Chapter 13 trustee is asking the question, anyway. I rail when the Chapter 13 trustee's business questionnaire asks "how much would you sell your business for." Phrased that way, the question implicates all kinds of facts that aren't in play in Chapter 13. First, … [Continue reading...]

Hat Tip For Timeless Little Tips

By Filed Under: Bankruptcy Practice

It's the little things that count. My life in the law is so much richer and more productive as a result of help, encouragement and brainstorming I've shared with lots of marvelous mentors and friends. But two people stand out, not just for their generousity with their knowledge, but for the common here's-how-you-get-it-done tips. My hat's off to David Leibowitz and April Charney for … [Continue reading...]

The Savvy Move: San Diego For NACBA Convention

By Filed Under: Bankruptcy Practice

Sunshine, camaraderie, and CLE. Three days in San Diego for the NACBA 2013 Convention. No need to chew on it.  Sign up. The early bird discount expires 3/15/13. There's no place else where you can get such a marvelous mix of the latest developments in consumer bankruptcy law and the practical how-to's from lawyers who've done this for decades. Alongside the old reliable programs on … [Continue reading...]

Old Lesson From Innovation Event

By Filed Under: Bankruptcy Practice

  The most important thing I learned at a half day spent at ReInventLaw Silicon Valley had little to do with the conference's theme of  law, technology, and innovation. In fact, it was very old school idea that stuck with me: communicate with your client. Give the client greater visibility into the value you are providing. Henry Jones was addressing the problems of big law firms, … [Continue reading...]

Dealing With Joint Debt And Business Struggles

By Filed Under: Bankruptcy Practice

sole proprietorship locked up

Early in this series on business bankruptcy issues, we focused on figuring out just who is liable for each debt. Many people check over here with several doubts regarding business. Is it the shareholder, sitting across the desk from you, or is it the corporation that person runs? The life of a bankruptcy lawyer is simple when the answer is either one or the other. Not so simple when the answer … [Continue reading...]

Double Up On Exemptions

By Filed Under: Bankruptcy Practice

Now's the sweet spot for bankruptcy exemption planning: before April 15th. Up until April 15th, a debtor can contribute to an IRA for last year and this year. Double your pleasure, double your fun. For an individual under 50, that's $10,500 that can be sheltered from creditors, thanks to §522(n).  Five thousand dollars for 2012, and five thousand five hundred dollars for 2013. Double … [Continue reading...]

Lien Strip Cases Are Time Bombs

By Filed Under: Bankruptcy Practice

They are coming to get you. It's true:  I've now heard it from two bankruptcy judges in the space of three weeks. And it makes sense. Wall Street has created an entity to buy up stripped off junior liens.  They expect to challenge the validity of the strip-off as home values improve. They think there's money to be made, on our mistakes, if they only succeed in 1 in 50 cases. I … [Continue reading...]

Three Payroll Tax Issues That Can Bite The Unsuspecting

By Filed Under: Bankruptcy Practice

Business bankruptcy cases can lull you into inattention when no payroll tax issues are apparent on the face of the situation. Even the client who  doesn't owe the IRS now can get bitten. [You didn't think this was simple, did you?] W-2's Corporate officers are personally liable for monetary penalties if they fail to give employees their w-2 forms on time. It's easy to miss making … [Continue reading...]

What Bankruptcy Lawyers Must Know About Payroll Taxes

By Filed Under: Bankruptcy Practice

Payroll taxes are dynamite: First, let's get our terms straight.  What we call "payroll taxes" are really several different taxes, FICA, income taxes, etc. In bankruptcy-speak, we are talking about taxes that the employer collects from its employees and transmits to the government.  The employer is merely a conduit for payments by others on their taxes.  They are also called … [Continue reading...]

Bankruptcy Lawyer Sleepless in Silicon Valley

By Filed Under: Bankruptcy Practice

The"Who's On First" problem of lien strip service haunted my weekend at the Sacramento Bankruptcy Forum and the week that has followed back in the office. As one judge so kindly pointed out, if it turns out your service of the lien strip motion was inadequate, it will be the debtor's attorney in the cross hairs. Thanks, judge. Where most bankruptcy issues are relatively small dollar value … [Continue reading...]

Have Your Say About New Bankruptcy Forms

By Filed Under: Bankruptcy Practice

Megaphone

Speak now or forever hold your peace. Or suffer in silence, is more like it. Comment period for the proposed new bankruptcy forms closes February 15th. That's a week from tomorrow. Have you had your say? I've extracted the new I, J, and elements of B22  from the pdf on the court's site to make them easier to find and analyze. Form 6 I Form 6 J Form 22 A 1 Form 22A 2 MT … [Continue reading...]

Sleepless In Sacramento

By Filed Under: Bankruptcy Practice

A really good bankruptcy law conference leaves you unable to sleep the next night. If you don't learn something that scares you sleepless about how you practice, you weren't paying attention. Service of lien strip motions tops my worry list after  last weekend's  Northern California Bankruptcy Conference in Sacramento. Lien strips may be the biggest dollar value thing we do in a Chapter … [Continue reading...]