Bankruptcy Mastery - Page 2 of 36 - Becoming a better bankruptcy lawyer

Why Your Bankruptcy Client Doesn’t Understand You (And How To Fix the Problem)

By Cathy Moran, Esq. Filed Under: Before filing

Bankruptcy attorneys and their clients often seem to be a pair, divided by their common language. Even without legal jargon, we talk past each other. How do we misunderstand each other? Let me count the ways: Property: I don't have any property, lost the house to foreclosure last year. Property 2: I don't own the house, the bank does Here are my debts: I'm current on … [Continue reading...]

Filing Bankruptcy Petitions: Playing Connect the Dots

By Cathy Moran, Esq. Filed Under: Before filing

I almost took the client at her word and filed schedules that told half the story. Well, maybe it was 3/4 of the story, but the client who, to my consternation, seemed to enjoy nit picking the draft schedules, told me about the cabin on the lake that they rent out, but omitted the rental income, the management fee, the utilities and any provision for maintenance on the property from the … [Continue reading...]

Ensure You Understand Insurance In Bankruptcy

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Sometimes, issues that you've just skimmed over burst forth in bunches, demanding attention. Lately, that issue in my bankruptcy cases has been insurance. Because its treatment varies so, we need to be asking more pointed questions of clients about both insurance policies and the debtor as beneficiary. Unmatured life insurance Starting with exemptions, §522(d)(7) makes an … [Continue reading...]

Find Solution That Works, Bankruptcy or No

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

Procrutes assaulting his guest upon the bed

Good income, substantial priority tax debt, other debt within the limits: sounds like a Chapter 13 bankruptcy, doesn't it? Yet the clients were in my office for a second opinion, convinced they couldn't sustain over five years the payments their attorney provided in their Chapter 13 plan. Their attorney's approach reminded me of the Greek story of the brigand Procrustes, who waylaid … [Continue reading...]

Prompt Full Disclosure from Bankruptcy Clients

By Cathy Moran, Esq. Filed Under: Before filing

If the price of a bankruptcy discharge is full disclosure, some clients still want to underpay. No matter how carefully you script your initial interview with a client in quest of everything you need to know to advise them on bankruptcy, there will be some tidbit, relevant to your quest, that isn't evoked with your questions. But, never fear, you have another trick up your sleeve: the open … [Continue reading...]

The Hazards Of Self Employment In Chapter 7

By Cathy Moran, Esq. Filed Under: Business bankruptcy

Why would a Chapter 7 trustee shut down a 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 business. After all, goes the argument, the debtor needs to make a living and the business has no non-exempt value. The trustee's insistance on closing the business … [Continue reading...]

Why The No-Look Fee In Bankruptcy Harms Us All

By Cathy Moran, Esq. Filed Under: Attorneys fees

The no-look fee is no good in many bankruptcy cases. It harms debtors, their lawyers, and the system as a whole. It fails to compensate the lawyer for critical work, causing a disincentive to providing proper representation. We give up a lot when we settle for being paid just the no-look fee. No-look (or presumptive) fees were instituted to relieve courts of reviewing fee applications in … [Continue reading...]

How To Brush Off The Means Test

By Cathy Moran, Esq. Filed Under: Means test

There's a way around the means test. And it's right there in the Code. Yet we forget. The ***x!!XXX thing only applies to debtors whose debts are primarily consumer. Consumer debt is defined: 8) The term “consumer debt” means debt incurred by an individual primarily for a personal, family, or household purpose. I had to review what isn't consumer debt the other day to extract a client from … [Continue reading...]

Dig Deep In Your First Meeting With A Prospective Client

By Cathy Moran, Esq. Filed Under: Before filing

The success of a bankruptcy case is frequently determined at the first meeting between client and lawyer. The information that is exchanged and the confidence that is built at that encounter shapes the client's expectations, the choice of chapter, the timing of the filing and much more. So I cringe when I hear stories about the first, frequently "free", consultation between prospective … [Continue reading...]

4 Reasons To Keep Time Records No One Discusses

By Cathy Moran, Esq. Filed Under: Attorneys fees

Mention keeping time records to a bankruptcy lawyer and you're likely met with expressions of utter revulsion. I swear that all too many assert that the major appeal of being a bankruptcy lawyer is precisely that they don't have to keep time. Between flat fee deals with clients, and no look fees in Chapter 13, they feel liberated from the clock and the time sheet. What a … [Continue reading...]

The Chasm Between Judges & Bankruptcy Attorneys Over Fees

By Cathy Moran, Esq. Filed Under: Attorneys fees, Opinionated

Why is there such a gap between consumer attorneys and bankruptcy judges over attorneys fees? It sometimes feels like the bench believes that every dollar a debtor's lawyer gets is of questionable legitimacy. Yet the same judges roll their eyes, at least figuratively, at the competence and preparation of those same lawyers. Think there might be a connection? Does the bench think that … [Continue reading...]

Tax Changes & Projected Expenses

By Cathy Moran, Esq. Filed Under: Means test

At the risk of borrowing trouble, I'm looking ahead to changes to the tax laws that may adversely impact pending Chapter 13 cases. The 2017 Tax Cuts and Jobs Act ( probably as appropriately named as the Bankruptcy Abuse and Consumer Protection Act) limits the deductibility of state and local taxes, including property taxes. A married couple can deduct only $10,000 of those … [Continue reading...]

Bankruptcy as Means to Keep the House

By Cathy Moran, Esq. Filed Under: Counseling clients, Real property

There's nothing like a foreclosure to get homeowners to see a bankruptcy lawyer. They are often not sure just how bankruptcy will accomplish this, but they are resolute that keeping the house is the centerpiece of their bankruptcy. A capable lawyer can tell the client how that might be done through bankruptcy; a standout bankruptcy lawyer challenges the premise altogether. Often these … [Continue reading...]