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...
When Legal Matters Become Personal
Chapter 13
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...
Eighth Circuit Permits Lien Stripping
In a ruling issued August 28, 2014, the Eighth Circuit Court of Appeals followed the other seven federal appellate courts in permitting stripping of a wholly unsecured junior residential mortgage in a chapter 13 plan. Jamie and Keeley Schmidt owned a home valued at...
Bankruptcy Filing Fees increasing June 1, 2014
The Judicial Conference approved $29 filing fee increases effective June 1, 2014. The total new filing fee for each chapter will be as follows: For filing a petition under Chapter 7: from $306 to $335 For filing a petition under Chapter 13: from $281 to $310 If you...
8th Circuit Court of Appeals takes “Lien Stripping” case under advisement
The 8th Circuit of Appeals heard arguments on Wednesday March 12 in a case involving whether wholly unsecured junior second mortgages can be stripped in chapter 13 bankruptcy. A ruling will be issued “in due course,” which will likely be 1-3 months. The case is...
Can an individual be held liable for post separation debts incurred by the other spouse?
Yes. Debts are the same as negative assets, and the presumptive date for dividing a marital estate is the date of your pretrial, which is often many months after separation. There are two exceptions, which is that the parties can agree on a different date (and most...
How long after a bankruptcy does it take to qualify for a mortgage?
The answer is “it depends”. It depends on what type of mortgage you are seeking, which chapter of bankruptcy, and perhaps most importantly, it depends on what the underwriting requirements are at the time you are actually seeking a mortgage. For instance, the...
How to Maximize Your Time in a House That is Going into Foreclosure by Filing Chapter 7 Bankruptcy
Part 4 in a series on how we help people in underwater homes When I talk to someone who is going into foreclosure, I ask them if they want to save their house, and 9 out of 10 people say “yes.” So usually the best way to do that is by way of a loan modification, which...