Dear Bankruptcy Attorney Diary: The bankruptcy trustee meeting, otherwise known as the 341 Meeting of Creditors, is no place for surprises. The trustee meeting is no place to learn something new and bad about your case.
Bankruptcy in divorce can throw a divorce case for a loop. You are either a divorce attorney or a spouse tied up in a bitter divorce and it happens—the other spouse files bankruptcy in the middle of the divorce case. You receive the notice of bankruptcy and your frustration level increases knowing that the case will be drawn out (more…)
If a debtor owes back taxes and files chapter 13 bankruptcy, and the tax debt is both priority and secured (due to the IRS filing a tax lien), how do you classify that tax in chapter 13 bankruptcy?
Secured tax claims are treated as secured claims in chapter 13 bankruptcy. (more…)
Do you remember the song: One of these things is not like the others, one of these things just doesn’t belong, can you tell which thing is not like the others by the time I finish this song? (Sesame Street). Student loans stick out like a sore thumb among the list of non-dischargeable debts in bankruptcy (see bankruptcy code section 523). How so, you ask? (more…)
If you are in debt, using your credit cards to make ends meet, and living pay check to pay check, you don’t need me to remind you of the stress you are under. Financial troubles have a way of slowly getting worse; then one morning, after a restless sleep, you wake up and wonder how you ended up here.
A prevailing bankruptcy myth is that debts owed to the government, in general, cannot be discharged in bankruptcy. I have seen both debtors and attorneys fall prey to this myth. I suppose the underlying assumption is that because the government makes the bankruptcy law, that it would except debts owed to it from being eliminated in bankruptcy. Thankfully, that assumption is only a myth. (more…)
“Let us sit upon the ground and tell sad stories of the death of kings.” (William Shakespeare, King Richard II, Act II, scene II). The tale I wish to tell is that of the death of King FICO. King FICO became a despotic ruler, a deceiver and manipulator of his subjects. He created a Caste system (more…)
An individual can settle back tax debt. But thanks to years of numerous T.V. ads of several tax relief companies (now out of business) the general perception is that an IRS Offer in Compromise is easy. Although the IRS has made some changes to the Offer In Compromise program, the rate at which the IRS accepts Offers in Compromise is still very low. So, let’s address and cure some of the myths surrounding the program. (more…)