Date archive for March, 2010
Can I File Bankruptcy on Payday or Check Advance Loans ?
by John Rogers on 3/31/10 | 0 Comment(s)
Many of our clients have debt with companies or businesses commonly called “payday” lenders or “check advance” loan companies. These companies operate by loaning money to folks and holding a persons written check to help guarantee that you will pay them. For example, if you borrow $500 from the company, when they give you the [...]
More Changes Regarding Chapter 13 and Tax Returns in Michigan’s Eastern District
by Drew Broaddus on 3/26/10 | 0 Comment(s)
Until January 20, 2010 it was the practice of the U.S. Bankruptcy Court for the Eastern District of Michigan that, where a Chapter 13 confirmation order requires the turnover of a debtor’s tax refunds to the Trustee, the order also include a provision ordering the Internal Revenue Service to pay those refunds directly to the Trustee. On [...]
Discharge Violations
by Steven Striffler on 3/25/10 | 0 Comment(s)
There is nothing more sacred to a debtor than the discharge of their debts that every debtor receives at the end of their bankruptcy case. Most debtors when they decide to file bankruptcy are resigned to the fact that they cannot pay their debts and what they seek most dearly is to stop the endless harassing phone [...]
What is an Adversary Proceeding and what does it have to do with my bankruptcy?
by John Rogers on 3/24/10 | 0 Comment(s)
Essentially, an “adversary proceeding” is a lawsuit filed in bankruptcy court stemming from, or resulting from a person or business actually filing bankruptcy. It may be filed against a person filing bankruptcy, or against someone else that has some sort of connection to the bankruptcy in some way. It could be someone that was paid [...]
United States Aid Funds v. Espinosa – Student Loan Issues
by Jay Jump on 3/23/10 | 0 Comment(s)
Today the Supreme Court issued a new decision in the ongoing saga of student loan debt. United States Aid Funds, Inc. v. Espinosa. The background facts are as follows. Debtor Espinosa confirmed a Chapter 13 plan which included language specifically stating that the principal would remain due and owing on the student loan debt, however, [...]
Property Excluded from a Bankruptcy Estate
by Richard Stokan on 3/22/10 | 1 Comment(s)
Once a bankruptcy petition has been filed, a bankruptcy estate is created which includes all assets of the debtor. The bankruptcy trustee is then required to collect non-exempt property and reduce it to cash to be divided among creditors. Although the bankruptcy code broadly defines “property of the estate”, not all property in the possession [...]
Breaking Down the Milavetz Decision Part 1: Debt Relief Agency = Bankruptcy Attorney?
by John O'Connor on 3/21/10 | 1 Comment(s)
Consumer Bankruptcy Attorneys Fall Under BACPA’s Definition of Debt Relief Agencies Bad legislation makes for bad jurisprudence. After all that has been said and written following Justice Satomayor’s recent incursion into the consumer bankruptcy world, perhaps this is the single most important lesson to be learned. BACPA may be a terrible piece of legislation, however, popular [...]
Bankruptcy Pleading Standards After Twombly and Iqbal
by Drew Broaddus on 3/19/10 | 1 Comment(s)
On March 16, 2010, the U.S. Bankruptcy Court for the Eastern District of Michigan (which covers Detroit, Bay City, and Flint) announced on its website that the next meeting of the Debtor/Creditors’ Rights Committee of the Business Law Section of the State Bar will include an educational program on Bankruptcy Pleading Standards after the U.S. [...]
Dave Ramsey, part 2 (or it’s not always what he tells you, but what he doesn’t tell you !)
by John Rogers on 3/16/10 | 0 Comment(s)
I was listening to Dave Ramsey today, while eating lunch. A woman called in and said she had heard some folks tell her that she could settle with credit cards for a lesser amount than what is owed. While Dave told her that is possible, but not likely (since she was behind on the cards,according [...]
U.S. Government Revises Means Test Numbers For Bankruptcy Filers
by Drew Broaddus on 3/12/10 | 1 Comment(s)
As I have discussed on the O’Connor, DeGrazia, Tamm & O’Connor website (and as several bankruptcy attorneys have discussed here), in order to qualify for Chapter 7 protection, individuals must satisfy the “means test,” which is a formula designed to keep filers with higher incomes from filing for Chapter 7 bankruptcy. 11 U.S.C. § 707(b). [...]
