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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…
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Modifying your car loan in a chapter 13

https://youtu.be/t6bIboRjtfM 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.…
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Second Mortgages Cannot be Stripped in Chapter 7 Cases

The United States Supreme Court held this week in Bank of America v. Caulkett that wholly unsecured second mortgages cannot be stripped in Chapter 7. “Wholly unsecured” means that the house is worth less than the first mortgage balance.…
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Chapter 13 Trustee Must Return Funds to Debtor Upon Conversion

United States Supreme Court held on May 18, 2015, in the case of HARRIS v. VIEGELAHN, that when a chapter 13 case is converted to chapter 7, any undistributed funds that the chapter 13 trustee is holding, must be returned to the debtor. The…
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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…
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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…
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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…
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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…
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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…
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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…