Sep
13

Bankruptcy and Divorce

Deciding whether you should file for bankruptcy before or after a divorce depends on quite a few things, including how much debt and assets you share, which state you live in, and which chapter of bankruptcy you should file. Here are a few issues you must consider before making your assessment.  The filing fees for a bankruptcy are the same whether you file together or separately. Therefore you can save on bankruptcy court fees if you file a joint bankruptcy with your spouse before you get a divorce.

If you file a Chapter 7 bankruptcy you may get rid of most of your unsecured debts such as credit card and medical bills. In view of the fact that you can receive a discharge of your debts in a few months, your bankruptcy will be quickly completed before a divorce. But if you file a Chapter 13 bankruptcy, the bankruptcy will take anywhere from 3-5 years to complete since you must repay some or all of your debts through a repayment plan. In this case, it would possibly be better to file for bankruptcy as an individual after the divorce because of the length of time necessary to complete a Chapter 13 payment plan.

One important point to consider concerning a Chapter 7 filing is that if you file jointly with your spouse both your incomes must be included in the bankruptcy. But if your joint income is too high, you might not qualify for a Chapter 7 bankruptcy.

As always this blog is not legal advice and you should contact a bankruptcy attorney with any legal questions. 

Jul
23

Chapter 7 No-Asset Bankruptcy Case

If you can exempt all of your property, the Chapter 7 trustee cannot sell any of your assets to pay your creditors. This is referred to as a Chapter 7 no-asset bankruptcy. The majority of Chapter 7 bankruptcies are no-asset cases. If all of your assets are exempt, the trustee will normally file a no-asset report in your case and your creditors will not receive anything through the bankruptcy estate.

The thought behind exemptions is that you need a certain amount of material goods to sustain yourself and make a fresh start after bankruptcy. How much property you can keep in Chapter 7 bankruptcy depends on your state’s exemption laws and the value of your property. Exemption amounts vary considerably from state to state. Therefore, review your state’s exemptions or consult a well-informed bankruptcy attorney in your area prior to filing your case.

Jul
15

Abandonment of Property

In a Chapter 7 Bankruptcy case, typically property that can’t be exempted is sold and distributed to creditors by the trustee.

Nevertheless, at times property is troublesome or of little value to the bankruptcy estate. In these circumstances, abandonment of the property is fitting. If the case is going to be open for a while pending the administration of any and all assets, abandonment requires an affirmative act.

Please Note, only the trustee in a your case has the power to abandon an asset. For another party, such as a creditor or a debtor, abandonment requires a motion, which may be contested by the trustee. JudeLaw LLC can assist you with this type of Motion.  These are very popular when it comes to the Short Sale of Homes in Bankruptcy. 

Since the trustee has the discretion to abandon property, it makes sense, if possible, to negotiate the trustee’s assent to the abandonment before filing a contested motion.

May
15

JudeLaw Has Moved!

JudeLaw LLC has moved to a new location. We are now located at 704 S. Monaco Parkway Denver, CO 80224. We look forward to helping you with any of your Bankruptcy needs at our new location.

May
01

Did you know……………..

Did you know……………..

A bankruptcy trustee can recover payments made to unsecured non-priority creditors within 90 days of filing, or within 1 year for insiders, unless the payment was a contemporaneous exchange for new value or made in the ordinary course.     11 U.S.C. §547(a)(4).

A cash advance returned by the debtor within 18 days of receipt, was not a fraudulent conveyance because the debtor only had a legal interest in the money being returned and not an equitable interest.  Rajala, Trustee v. US Bank, 23 CBN 247, 2012 WL 6589727 (Bankr. D. Kan. 12/18/12).

Apr
30

The Usual Waiting Periods between Bankruptcy Filings

The Usual Waiting Periods between Bankruptcy Filings

The waiting period from one bankruptcy filing to the next is 4, 6 or 8 years, depending on the Chapter of the prior bankruptcy and the Chapter of the new case being filed:

2 years: Prior Chapter 13 case to new Chapter 13 case.

4 years: Prior Chapter 7, 11, or 12 case to new Chapter 13 case.

6 years: Prior Chapter 13 case to new Chapter 7 case.

8 years: Prior Chapter 7 case to new Chapter 7 case.

In every one of these waiting periods, the time begins to run at the previous case’s filing date, and the appropriate period of time must pass before the new case can be filed.

Apr
16

Are Vehicle Black Boxes a Good Idea?

Are Vehicle Black Boxes a Good Idea?

Most new cars have a data recorder (known as a “black box”) that captures a assortment of information, for example speed and seat belt usage before and after a crash.  A new rule projected by federal safety officials would make this technology binding in 2014.  Followers say that requiring recorders in all new cars will provide critical information to law enforcement, vehicle manufactures and others in order to help save lives.  Opponents argue that the technology violates motorists’ right to privacy.

What are your thoughts?

Apr
09

Words of Wisdom

Words of Wisdom

Don’t spend more than you earn

Don’t use credit.  If you can’t pay cash, then don’t buy it

If you borrow, never risk what you cannot afford to lose

Don’t waste resources; make do with what you’ve got

Living on less is a good thing

Turn the lights off behind you; don’t waste anything

Patch it, sew it, fix it yourself; there’s no such thing as disposable

When money is short, get used to doing things yourself

Cooperate and work together with family, neighbors and friends

Apr
08

New Rule Implements Dress Code for Attorneys

Below is a link to a great article written by Becky Bye! Interesting and well written!

http://www.denbar.org/docket/doc_articles.cfm?ArticleID=8049

Apr
01

Bankruptcy Information

Bankruptcy Information

Trustees may not avoid equitable subrogation claims under 11 USC §544(a) (3) where a lis pendens was filed during the preference period.

                Green v. HSBC Mortgage Services, Inc., 2012 WL 3046976 (Bankr.D. 7/25/12)

 

The sale of property subject to a lien without the consent of the lien holder constitutes willful and malicious injury for establishing 11 U.S.C. § 523(a) (6) non dischargeability.  The amount non-dischargeable equals the lesser of the value of the lien or the value of the property sold.

                Automotive Finance Corp v. Ward 2012 WL 2328111 (Bankr. E.D.N.C. 6/19/12)

Older posts «