Archive for the ‘Finance’ Category
Saturday, February 19th, 2011
In a Chapter 7 bankruptcy case, the trustee is responsible for liquidating assets for the benefit of creditors - all the debtor has to do if they don't have the cash to "re-purchase" a particular asset (or simply don't want to re-purchase it) is to hand the asset over to the trustee and wash their hands clean of it.
In a Chapter 13 case, however, the trustee does not perform this role, so the debtor does not have this option. It is the debtor's responsibility to turn assets into cash if needed in order to pay the minimum amount that it is determined their creditors must receive during the case.
So what happens if the debtor does not have the cash available to pay the required amount to the trustee, but at the same time is unable to sell the asset(s)? My clients have been running into this problem increasingly often these days, particularly with real estate due to the downturn in the market. So what is the solution?
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Monday, February 14th, 2011
Have you ever wanted to track the status of your Chapter 13? Well, the National Data Center makes it possible to do just that. This website should be used by all Chapter 13 Debtors as a source of information on their cases. The National Data Center (NDC) was established by Chapter 13 Trustees and gives on-going details of case and claims information.
The NDC provides:
(1) information such as the payment amount,
(2) the 341 (meeting of creditor's) date
(3) the date the case was confirmed
(4) has an account ledger showing payments made by the debtor
(5) shows claims paid by the trustee
(6) provides a claims register where you can review the creditor's claims information.
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Monday, February 14th, 2011
Chapter 7 bankruptcy has saved many individuals, and then sometimes, the it cannot help at all. It is no secret that today’s real estate market in Florida has plummeted. It is also no secret that the declined market has led to numerous bankruptcies and, in most circumstances, the bankruptcy is able to save the property owners from the negative equity and potential deficiency liability from the properties. However, there are some circumstances where not even a Chapter 7 bankruptcy can allow a fresh start from the property.
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Wednesday, February 9th, 2011
Members of Congress are meeting this week to discuss the ongoing financial crisis faced by a majority of States. On January 22, 2010 I wrote a blog titled: Can A State Declare Bankruptcy? At the time, I didn't think Congress would actually consider getting involved in the State's individual financial problems. This is the same Congress that has put the American people $14 Trillion dollars in debt. These guys and gals are going to help the states. Really. Well, no thank you.
First, Congress must decide if they are going to get involved. Let's hope they don't and the inquiry will end there. I'm just really concerned about the Federal Government stepping into anything these days. Their history of fixing things is concerning.
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Tuesday, February 8th, 2011
January 2011 Bankruptcy Filings were down slightly across the United States when compared to the number of filings in December 2010. In January 2011 approximately 92,500 personal bankruptcies were filed. In December 2010, approximately 118,000 personal bankruptcies were filed. Is this a sign of an economic recovery? No, I don't think so. I honestly do not know why filings were down. In our office we saw a bit of a slow down in December 2010 and January 2011; however, February has started like an ordinary crazy month.
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Tuesday, February 1st, 2011
Bankruptcy isn’t the end of the world, whether you are an individual or a major corporation. Many felt the American auto industry was nearly finished when General Motors filed for bankruptcy protection in July of 2009. It turns out, however, filing bankruptcy didn’t mean the ruin of GM. Rather, it meant its rebirth. After running deficits every quarter since 2007, GM reported it turned a profit of $865 million in the first quarter 2010.
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Monday, January 31st, 2011
What is the “automatic stay”?
When a debtor files for bankruptcy, the debtor is covered by an umbrella of protection called the automatic stay. It is a stay imposed by bankruptcy law that prohibits most creditors from taking action against the debtor or the debtor’s estate. As can be deduced by its title, the protection is automatic and the debtor need not take any action other than filing bankruptcy for it to take effect in most circumstances.
What does the automatic stay protect the debtor and the debtor’s estate from?
The automatic stay protects the debtor and the debtor’s estate from all debt collection activity including collection calls, sending bills or invoices, and even prevents foreclosure sales and pending civil court hearings. The automatic stay has protected a countless number of our clients from losing their home, having to attend a deposition, having a judgment placed against them, and losing a vehicle to repossession.
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Monday, January 31st, 2011
As we are all aware, the job market in Southwest Florida has been tough, to say the very least. Fortunately, I have met with a number of individuals recently whose times may be changing for the better. Some have just finished up their respective scholastic endeavors and some have obtained employment in a new industry after learning a new skill. However, while times may be improving on the job front, these individuals may still be straddled by the debt that was helping keep them afloat over the last few months. For these individuals to whom a Chapter 7 bankruptcy may help, I explain the necessity of understanding the timing of filing a bankruptcy.
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Tuesday, January 25th, 2011
Debtors in Chapter 13 bankruptcy often wonder how their chapter 13 trustee payment is calculated. There are several factors that can determine one’s payment.
At minimum, the payment to the trustee must be the Debtor’s entire monthly disposable income, as well as enough to pay unsecured creditors what they would receive in a chapter 7 bankruptcy. Some bankruptcy plans also contain car or house payments. Other plans pay priority debt such as certain IRS debt. Priority debts must be paid in full over the life of a bankruptcy plan.
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Tuesday, January 25th, 2011
Recently, I have seen an upswing in the amount of people seeking advice concerning taxes owed to the Internal Revenue Service (IRS). While IRS debts are not generally dischargeable in a bankruptcy, a Chapter 13 may be beneficial to those seeking to pay the IRS in full without any interest or penalties accruing.
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