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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.…

Means test bankruptcy figures get adjusted upward

The United States Department of Justice recently released adjusted figures that apply for the bankruptcy means test, which is a test that is required for above-median debtors to see if they qualify for chapter 7. These figures apply to cases…
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SCOTUS hears arguments in chapter 7 lien strip case

This week the United States Supreme Court heard oral arguments in a case involving stripping off a wholly unsecured junior mortgage in a chapter 7 case. There has been a split amongst the federal circuits, with some permitting it, but most not…
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Supreme Court to hear cases regarding chapter 7 lien stripping

The Supreme Court granted certiorari in two Chapter 7 lien strip cases today. Cases are Bank of America v Toledo-Cardona and Bank of America v Caulkett. In the 11th Judicial Circuit, court have permitted chapter 7 debtors to strip wholly unsecured…
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Will my debts come off my credit report after bankruptcy?

After your bankruptcy discharge goes through, your creditors may still appear on your credit report, although sometimes they come off of your credit report or weren’t on there in the first place. And they will go away once they are 10 years…
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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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A Creditor has sued me, I answered and disputed, and nothing has happened.

This is a situation which happens with surprising frequency. Many collection law firms are merely retained by collection agencies for the purpose of collecting low hanging fruit, and when a debtor requests their day in court by serving an answer,…
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How will bankruptcy affect my credit rating?

That’s a great question, but the better question is, how is your credit rating right now? As a general rule, if you currently have excellent credit but just too much debt, your credit score will probably drop to 600 or so after the bankruptcy.…
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Can Creditors Seize My Tax Refund?

No. Private creditors cannot seize a federal tax refund, even if they have a judgment against you. The only creditors who can go after your tax refund are the IRS, student loans, certain other debts owed to the government, and child support.…

Bankruptcy Petition Preparer Continues to Defy Court Order

In a prior blog post, I mentioned Judge Kishel's order shutting down bankruptcy petition preparer Ed Jonak, who does business under a variety of aliases, including Affordable Law Center, Affordable Court Services, Action Plan Rx, Christian Discount…