Bankruptcy Mastery - Page 3 of 37 - Becoming a better bankruptcy lawyer

When The Means Test Is Meaningless

By Cathy Moran, Esq. Filed Under: Means test

A local bankruptcy attorney stumbled over the most basic part of the means test. Just this week... nearly 15 years after the bankruptcy "reform" act of 2005. I thought we were several years past bankruptcy attorneys clueless about the means test. But apparently not. This fine fellow told a couple that they couldn't file Chapter 7 because they had $3000 of disposable income per month. … [Continue reading...]

Win Now, Wreck Later: A Tale of Bankruptcy and Mortgage Servicing

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

My Google Alert popped up a lovely win for a Chapter 13 homeowner , but all I could see was the train wreck that lies ahead. The bankruptcy court ruled that the confirmed (and completed) plan trumped a late-filed mortgage proof of claim. Payment of the amount provided in the plan cured the prepetition arrearage. I'm on board so far. But I doubt this resolution will be the last dispute on … [Continue reading...]

Secrets To Home Loans For Chapter 13 Debtors

By Bob Schuman Filed Under: Bankruptcy Practice

Every bankruptcy debtor yearns to rebuild their credit. Whatever drove them to bankruptcy did no favors to their creditworthiness. The need for a new loan can be imperative to a homeowner in Chapter 13 who needs a better interest rate, a recomputed loan term, or just needs out of Chapter 13 with a discharge. Here's what it takes to get a home loan after filing bankruptcy, from a … [Continue reading...]

By Cathy Moran, Esq. Filed Under: Opinionated

https://www.bankruptcymastery.com/why-consumer-bankruptcy/

Amid the comfortable camaraderie of the Chapter 13 bar's holiday gathering, the trustee and I were struck by the paucity of young, or even youngish, faces in the group. The stout, dedicated lawyers who've toiled in the ND CA bankruptcy courts (rather magnificently, if you ask me) are growing old. And neither the trustee nor I could formulate an honest reason why a capable young lawyer should … [Continue reading...]

Rule 3002.1 And The Tangled Web of HOA Assessments

By Cathy Moran, Esq. Filed Under: Rule 3002.1

The Hadfeg decision was delivered to me in response to a standing search for bankruptcy decisions involving FRBP 3002.1. But multi strands of legal theories run through this one. The questions, answered and unanswered, are tantalizing. The facts are thus: Prepetition HOA dues scheduled for $5000, while HOA later claimed it was $33,000. No proof of claim filed by HOA Post … [Continue reading...]

Crushing Tax Change For Injured Consumers

By William Purdy Filed Under: Bankruptcy Practice, Opinionated, Tax

Under the new tax law, most damage awards a consumer recovers stand to go, in large part, to the IRS. So even if you are successful in vindicating your legal rights, the expenses of getting the award aren't deductible from the gross award. The taxing authorities end up getting a large hunk of the total recovery. Welcome to tax "reform". Consumers get shafted It isn't … [Continue reading...]

Rescuing A Troubled Chapter 13: The Unseen Threat

By Cathy Moran, Esq. Filed Under: Bankruptcy Practice

We all get sucked in, at some time, to trying to rescue a Chapter 13 bankruptcy case gone bad. Make sure that you don't let a bad situation get worse. Get your arms around §109(g). When only a do-over will do, don't wait around. No payments for months The debtor came to me for help when the trustee moved for dismissal of a long confirmed plan for feasibility issues. The goal of the … [Continue reading...]

Start with problem, not procedure

By Cathy Moran, Esq. Filed Under: lawyer skills

The new bankruptcy lawyer sent me an email. What do I file when there's an objection to my client's amended Chapter 13 plan: notice a hearing? file a demurer? In her case, the form of the "objection" suggested the opposing counsel was as new to bankruptcy as the debtor's lawyer. My advice? First: figure out whether there's a lawyer-to-lawyer solution before figuring out how to involve a … [Continue reading...]

What Debts to Include in Bankruptcy

By Cathy Moran, Esq. Filed Under: Before filing

Bankruptcy lawyers know that all debts need to be scheduled. Clients think or hope that they get to pick and choose. Every effective bankruptcy lawyer needs a line, a phrase, or a story to squelch the client's instinct to exclude things from their bankruptcy filing. Often the client's desire to be less than forthcoming is born of fear or ignorance. Your job is to figure out which … [Continue reading...]

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. Words at war 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 doesHere are … [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...]