Date archive for December, 2009
Bankruptcy Attorneys Must Pay Attention to Local Procedures When Handling Reaffirmation Agreements
by Drew Broaddus on 12/31/09 | 0 Comment(s)
Richard Stokan from our office recently wrote an interesting post here about the practical aspects of negotiating reaffirmation agreements. In short, a reaffirmation agreement is a new contract signed between the debtor and a lender that reaffirms the debtor’s personal liability for a debt (typically an automobile or home). This agreement essentially states that the [...]
Does Failure to pass the Means Test Automatically Cut Off Chapter 7 Eligibility?
by Lori Patton on 12/30/09 | 4 Comment(s)
Short Answer: There’s still some hope, but hold on tight. Long Answer: I hate the Means Test. I have just this second decided that will be the subject of my next posting as explaining why would take some time. Suffice it to say, it doesn’t make any sense. So we have the Means Test that [...]
Small / Closely held Corporate Bankruptcy and Personal Guarantees
by John C. Colwell on 12/29/09 | 1 Comment(s)
In this continuing declining economy, our office is approached frequently by the small business owner. The owners of America’s small businesses are under the same ‘big’ company financial pressures. Oftentimes the pressure for the small businessman is higher, if that can be believed, due to the nature of the small business. A large corporation has [...]
Is There a Connection Between the Grateful Dead and Chapter 13 Bankruptcy?
by John O'Connor on 12/29/09 | 1 Comment(s)
Amazingly, yes. Remember this line from Touch of Grey? “I know the rent is in arrears The dog has not been fed in years It’s even worse than it appears but it’s all right…….” Is it possible that the Dead were giving their audience a bit of legal advice? Perhaps suggesting chapter 13 bankruptcy as [...]
Renegotiate Before Reaffirming A Debt in Bankruptcy
by Richard Stokan on 12/28/09 | 2 Comment(s)
Often, consumers who wish to keep automobiles through a bankruptcy proceeding are required to reaffirm the debt. Remember that a bankruptcy wipes out your personal obligations to pay debt. In order to keep a financed car, many states require reaffirmation. A debtor must be certain he or she can afford to make the required payments [...]
Use Caution When Presenting a Passport to Establish Identity at Your Meeting With the Bankruptcy Trustee
by Drew Broaddus on 12/27/09 | 0 Comment(s)
As I have previously discussed on the O’Connor, DeGrazia, Tamm & O’Connor website, Section 341 hearings (also known as meetings of the creditors or meetings with the trustee) are mandatory meetings of creditors and equity security holders held pursuant to 11 U.S.C. Section 341 of the Bankruptcy Code. The law requires that this meeting occur [...]
Illinois Made The Right Call In Dismissing Complaint Against Kevin Chern, Total Attorneys
by John O'Connor on 12/27/09 | 0 Comment(s)
The Illinois Attorney Registration and Disciplinary Commission (ARDC) has closed its investigation of Total Attorneys and Kevin Chern with “no finding of wrongdoing.” In so doing, Illinois becomes the fourth state to drop a nationwide ethics complaint filed by a Connecticut attorney in 47 states against 500 participating attorneys. Hawaii and Alaska dismissed similar ethics charges, while [...]
Does Chapter 13 Bankruptcy Require That I Pay Back All of My Debt?
by Moderator on 12/25/09 | 5 Comment(s)
In a word, NO. A common misconception among consumers is that a chapter 13 bankruptcy requires payment in full of ALL debts. To the contrary, unsecured debts are often slashed dramatically with credit card debt frequently paid out at less than 10%. Chapter 13 bankruptcy involves filing a repayment plan with the court, the extent to [...]
Why Chapter 13 Bankruptcy Has Your Second Mortgage Lender Feeling “Undersecured”
by Moderator on 12/23/09 | 3 Comment(s)
The current state of the law allows second and third mortgages to be modified in chapter 13 plans when the borrower is already underwater on a first mortgage. The aftermath of the housing crisis has left Americans owing more than their homes are worth……often much more. With millions of American homes underwater and banks unwilling [...]
Use Federal Law To Stop Creditor Harassment In Its Tracks
by Moderator on 12/22/09 | 2 Comment(s)
As a bankruptcy attorney, I routinely meet with clients concerned about creditor harrasment. They’re getting called at work, they’re getting called at home, their relatives are even getting phone calls. Needless to say, by the time they get to my office, they’re fed up. As we discuss potential solutions, two important topics invariably arise: (1) [...]
