Author Archives 
In Re: Werngerter and Proof of Claims in Bankruptcy
by Drew Broaddus on 8/20/10 | 0 Comment(s)
Recently at the National Bankruptcy Forum, I discussed In re: Wingerter. B-Line, LLC v. Wingerter, a recent Sixth Circuit Court of Appeals decision which addressed the issue of what creditors must do to file a valid proof of claim. In that case, B-Line, LLC purchased a creditor’s claim against Gerald Wingerter and filed a proof of claim, based [...]
Non-exempt Assets and Claims of Creditors
by Drew Broaddus on 8/20/10 | 0 Comment(s)
Under the bankruptcy code, non-exempt property is liquidated by the trustee in a Chapter 7 case, in order to provide a fund to pay claims of creditors. In practice, however, trustees sometimes elect not to administer (that is, collect and sell) assets that have little non exempt value because the costs of doing so will consume the dollars [...]
Tax Refunds and Chapter 13
by Drew Broaddus on 8/18/10 | 0 Comment(s)
On January 27, 2010, the U.S. Bankruptcy Court for the Eastern District of Michigan (which covers Detroit, Bay City, and Flint) posted a notice on its website (available here) regarding the treatment of tax refunds in Chapter 13 cases, in light of the Eastern District of Michigan’s holding in United States v. Carroll , __ B.R.__, 2010 WL 338040 [...]
More U.S. Cities Weigh Chapter 9 Bankruptcy
by Drew Broaddus on 8/18/10 | 0 Comment(s)
The City of Detroit is currently considering Chapter 9 bankruptcy as a means of dealing with its massive budget deficit. The purpose of Chapter 9 is to provide a financially distressed municipality protection from its creditors, while allowing it to develop a plan for adjusting its debts. Reorganization of the debts of a municipality is typically [...]
Qualifying For Chapter 7 With High Income
by Drew Broaddus on 8/18/10 | 0 Comment(s)
Much has been written about the means test since it was enacted as part of the 2005 amendments to the Bankruptcy Code, also known as the BAPCPA. For an excellent explanation of what the means test is, see Lori Patton’s recent contribution at the National Bankruptcy Forum. Despite the fact that it is frequently written about, the [...]
Modifying a Chapter 13 Plan After Confirmation Can Be Challenging
by Drew Broaddus on 6/18/10 | 0 Comment(s)
As discussed previously here, Chapter 13 Bankruptcy is referred to as a wage earner’s Plan. It enables individuals with regular income to develop a repayment plan for all or part of their debts. Under this Chapter, debtors propose a plan to make installments to creditors over three or five years. If the debtor ’s current [...]
The Hidden Cost of War: A Connection Between Afghanistan, Iraq, and the Rise of U.S. Personal Bankruptcies?
by Drew Broaddus on 6/11/10 | 0 Comment(s)
It has widely been reported that, despite a budding recovery, personal bankruptcies are still on the rise in the United States. (See, for example, this blog entry). Although Congress overhauled the nation’s bankruptcy laws in 2005 with the intention of limiting the ability of many individuals to get rid of their debt (see “How Important [...]
Fraudulently Incurred Debts Cannot Be Discharged in Bankruptcy
by Drew Broaddus on 6/04/10 | 0 Comment(s)
Section 523(a)(2)(A) of the bankruptcy code provides that a debtor may not discharge debts incurred as a result of fraud. The statute defines fraud broadly and includes debt incurred under false pretenses, false representations and actual fraud. Examples of debts that fall under the fraud exception include, but are not limited to, credit card debt [...]
Bankruptcy and Appeals
by Drew Broaddus on 5/28/10 | 1 Comment(s)
In most consumer bankruptcies (i.e., non-business bankruptcies), there will be no adversary proceedings, challenges to discharge, or other contested issues and in turn, no issues for you or anyone else to appeal. However, every case is unique, and any bankruptcy could require the bankruptcy court to rule upon certain issues. If a party in interest [...]
When Can Credit Card Companies Challenge Your Discharge?
by Drew Broaddus on 5/21/10 | 1 Comment(s)
Nearly all of the individuals who visit our office have concerns about credit card debt. While this type of debt can typically be discharged through a Chapter 7 bankruptcy, this is not always the case. Credit card issuers sometimes challenge the discharge of their debt in bankruptcy by filing a lawsuit in the bankruptcy court [...]
