A frequent problem for debtors in bankruptcy are the transfers of property and loan payments to family members before filing. In bankruptcy, fraudulent transfer refers to the transfer of assets by debtors with the intention of defrauding creditors. These transfers before someone files bankruptcy can create serious problems and may include transferring assets for less than fair market value to a friend or family member. By trying to get rid of assets, debtors may think they are shielding them fromRead more
How Compound Interest Leads to Bankruptcy
Compound interest is the process of earning interest not only on the amount of money you deposit but also on the accumulated interest. In other words, you earn interest on both the original amount deposited and the interest generated on that deposit. But compound interest can also be applied to debt. When it comes to savings or investments, compound interest works in our favor, allowing our money to grow faster over time. But with debt, compound interest works against us,Read more
U.S. Assistant Attorney General Remarks on Bankruptcy Discharge of Federal Student Loans
At a recent conference of the National Association of Consumer Bankruptcy Attorneys (NACBA) (I’ve been a proud member of NACBA for many years), Assistant United States Attorney General Vanita Gupta spoke about the Biden Administration’s efforts to promote justice and fairness in the bankruptcy process. Some of the remarks are provided below: It’s a privilege to be here at NACBA’s annual convention. NACBA does important work ensuring that debtors receive high-quality legal representation and advocating for systemic improvements to theRead more
Using Technology In My Bankruptcy Practice
When the Covid-19 pandemic hit with full force in the spring of 2020 I made the decision to stop having in-person meetings for consultations and bankruptcy schedule reviews and signings. To protect my health and the health of my staff and my clients I, like millions of other people around the world, started using technology more widely in my bankruptcy practice. I signed up for Zoom, purchased better webcams, expanded our electronic document procedures, created an electronic payment system andRead more
Rising Interest Rates and Bankruptcy
The rapid rise in interest rates is having a big impact on the financial well-being of consumers and businesses. Although a rise in interest rates is often seen as a positive economic indicator, as it can signal economic growth, it can have negative effects on people who have taken out loans or who carry a large amount of debt. Rising interest rates can lead people to need to file for bankruptcy because of the increase in monthly loan payments. InterestRead more
Iowa’s Tricky Homestead Exemption in Bankruptcy
Unlike many states that have a dollar cap on their homestead exemptions, Iowa has an unlimited homestead exemption, meaning that you could protect a homestead of unlimited value from the debt collection of creditors, including a bankruptcy trustee (but not the lender to which you’ve given a mortgage). These homestead exemptions, just like exemptions for other property like vehicles, household goods and retirement accounts, are critical to preventing creditors from taking a debtor’s property in satisfaction of debts not repaid.Read more
Unemployment Overpayment Discharged in Bankruptcy
Some people mistakenly believe that overpayments of government benefits like unemployment and Social Security cannot be discharged in bankruptcy or are entitled to priority status, like recent taxes. In truth, these benefit overpayments aren’t entitled to any special treatment unless the government proves in a separate adversary proceeding that the overpayments were caused by fraud committed by the debtor. A recent Kentucky bankruptcy court decision ruled an overpayment of unemployment benefits was not a priority claim in Chapter 13 bankruptcy.Read more
New Guidelines for Student Loan Discharges in Bankruptcy
New guidelines from the U.S. Department of Justice and the U.S. Department of Education might lead to more federal student loans being discharged in bankruptcy. Although the new guidelines don’t change the Bankruptcy Code or prior caselaw, they might lead to a different approach and attitude by the U.S. Department of Justice when debtors in bankruptcy file adversary proceedings asking that their federal student loans be discharged. To seek a discharge of student loans in bankruptcy, debtors must go beyondRead more
Deferred Compensation Plans Protected From Creditors
In two separate rulings by the Iowa Supreme Court and the U.S. Bankruptcy Court for the Northern District of Iowa, debtors who have deferred compensation plans through their employer should have less concern about losing the benefit of those plans either inside or outside bankruptcy. Iowa law provides an exemption from attachment by a creditor for any payments made under a “pension, annuity, or similar plan or contract on account of illness, disability, death, age, or length of service.” InRead more
Divorce and Bankruptcy
Few issues cause more conflict in bankruptcy then a previous divorce with conflict between the spouses. Contentious divorces cause contentious bankruptcies. Some issues are clear. For example, alimony and child support can’t be discharged in any kind of bankruptcy. A property settlement obligation can’t be discharged in any kind of bankruptcy EXCEPT Chapter 13. But what about debts resulting from divorce that aren’t clearly identified as either alimony, child support or a property settlement? For instance, an award of attorneyRead more
- « Previous Page
- 1
- 2
- 3
- 4
- 5
- …
- 14
- Next Page »
