The Department of Justice recently adjusted the median income figures, which are effective in bankruptcy cases filed after April 1, 2022. The median income is an important figure, as debtors below that figure are almost always assured a chapter 7 discharge. For...
When Legal Matters Become Personal
Chapter 13
First in, First out accounting – The poker chip analogy
One of the things that comes up in protecting money in a bank account from creditors, is the concept of first in first out. It's a concept that is seemingly difficult, yet also quite simple. The first money that goes in, is the first money that goes out. But you don't...
Hennepin County announces grants to avoid foreclosure
Hennepin County and the City of Minneapolis just announced that they will set aside $4.3 million, up to $35,000 per homeowner, to help make mortgage payments that were missed due to pandemic. Applicants will first need to apply for other loss mitigation options, for...
Why there won’t be another foreclosure stampede like 2009-2010
Foreclosure rates have continued to dwindle since they peaked in 2010. A recent article talked about reasons why there is not likely to be anywhere near the surge that we had experienced during the last recession. There are a few additional reasons that I have...
Well Fargo mortgage putting homeowners into forbearance plan without their consent
A recent article pointed out a disturbing trend, whereby Wells Fargo Mortgage has told homeowners, who are in a chapter 13 bankruptcy plan, that they are in a forbearance plan. This has happened to several homeowners, none of whom had requested it, even though Wells...
Student Loans in Chapter 13 in Minnesota
Veterans Exempt from Means Test
On Friday, the President signed the Honoring American Veterans in Extreme Need Act of 2019, which excludes from the calculation of monthly income, for purposes of the Bankruptcy Code’s means test, certain benefits paid by the Department of Veterans Affairs and the...
Modifying your car loan in a chapter 13
My last two posts concerned options with a car in chapter 7, including the two most popular options, retain and pay/”ride through”, or reaffirmation. But in most cases, the terms of the loan remain the same. In chapter 13, we can actually change the terms of your car...
What should I do first: file my taxes or file bankruptcy?
At the moment you file bankruptcy, your bankruptcy estate is created, and any claim that you have, including a tax refund from last year, and even a pro rata portion of the tax refund that you get next year for this year, is considered property of your bankruptcy...
Median Income Figures for Bankruptcy Means Test Increased
The United States Trustee just announced that effective November 1, the median income figures will increase. The median income is the figure that half of the people with that household size are above it, and half are below. Debtors who are below the median income...