The issue of pre-bankruptcy asset transfers is discussed often; but most debtors aren't sure how a pre-bankruptcy transfer is determined to be preferential and reversible. Below are a few standards that bankruptcy trustees use when determining if a pre-bankruptcy transfer is preferential and needs to be reversed: Does It Benefit The Creditor? If a debtor [...]
Married couples facing financial difficulties have the right to file bankruptcy jointly. However, the same is not true for unmarried cohabiting couples. For couples who have co-mingled their finances but who are not legally married, filing bankruptcy offers it's on set of problems that require unique strategies. Let's take a look at a few facts: [...]
By approving the National Guard and Reservist Debt Relief Extension Act of 2011, the Senate has paved the way for National Guards and Reservists to receive relief from the bankruptcy means test through December 2015. "While our men and women in uniform have been placing their lives on the line, and while their families have [...]
Fair and Equitable Treatment in Bankruptcy In a Chapter 13 or Chapter 11 bankruptcy, the bankruptcy court is allowed to confirm a repayment plan over the objections of secured creditors who are subject to a cramdown as long as their treatment of the secured creditors is "fair and equitable." A cramdown is the reduction of [...]
Student loan defaults increased from 7 percent to 8.8 percent in 2010 according to a report released by the U.S. Department of Education. And many of those student loan borrowers who have fallen into default are filing bankruptcy hoping to receive some type of student loan debt relief. In 2010 13.6 percent of debtors filing [...]
The threat of a Countrywide Financial bankruptcy filing looms larger than ever as the number of lawsuits against the company mounts. The subprime mortgage lender, which was acquired in 2008 by Bank of America continues to suffer losses as the foreclosure crisis fails to loosen its stranglehold on housing industry stakeholders. The FHFA sued Bank [...]
As a high-income earner, you might be reluctant to declare Chapter 11 bankruptcy; after all, it might seem reasonable to suppose that you'll make enough money to pay off your debts. But that belief can often belie the fact that no matter how much income or assets you have coming in, if your liabilities are [...]
Avoiding The Bankruptcy Means Test Not everyone is required to take the bankruptcy means test. If a debtor has primarily business debts or their household income is below their state's median household income level, then they don't need to take the means test. What Are Business Debts? Business debts are debts which were incurred due [...]
Filing for Chapter 11 bankruptcy might seem like a cut-and-dried decision. After all, if you're swimming under a pile of debt and can't seem to make your payments work, then it might seem like your next logical step is to file for Chapter 11 bankruptcy and wipe the proverbial financial slate clean. But for some [...]
Debtors filing Chapter 7 or Chapter 13 bankruptcy are required to divulge details of their financial lives so that the trustee can make a proper assessment of their financial situation and come up with a fair plan which will repay creditors as much as possible while allowing the debtor to get a fresh start. Below [...]