The Bankruptcy Judge had the benefit of hearing the Debtor's testimony and deemed her credible: he knew her approach was wrong but thought she was sincere in her beliefs. The Appellate Court focused on the telltale signs that the Debtor had not been sincere and reasoned that it couldn't trust her as there were too...Read More

As a Bankruptcy lawyer I can't count how many times people have asked why Courts won't reduce their mortgage debt to match the deflated value of their home, or why they should pay anything on that second mortgage, line of credit, or HELOC, when they're underwater. I even discussed these questions and the state of...Read More

When you file for bankruptcy you sign sworn schedules that itemize your assets. If you fail to disclose in full or fail to update your asset summary, you risk a creditor objecting to discharge on the basis of fraud. Claims that arise after the bankruptcy filing like future lawsuits are also assets of the Estate....Read More

In June 2013 the US Supreme Court published an opinion arising from a dispute over the estate of Pierce Marshall - better known as the husband of Anna Nichole Smith. That case, Stern vs. Marshall, gave rise to a surprising decision; namely, that Bankruptcy Courts could not rule on the State-law aspects of a dispute...Read More

In response to questions we get over and over, here is our unofficial Guide to Discharging Taxes in Bankruptcy. We've gathered many of the tried-and-true rules on the topic but they are constantly evolving, so take this guide with a grain of salt and always consult a competent Bankruptcy Attorney before making any decisions.Read More

What if a Debtor inherited an IRA? Would the inheritance be "exempt" as a retirement fund? In the 8th and 5th Circuit the answer appears to be yes; but in the 7th Circuit the answer is no. Read how In re Clark revealed a Circuit split that only the U.S. Supreme Court can resolve.Read More

Yes Virginia, it is possible to both discharge unsecured debts forever (Chapter 7) and strip down secondary mortgages (Chapter 13). But why would a Debtor file two cases when it's hard enough to put themselves through one? Read on and find out.Read More

Debtors should address debts well before creditors obtain judgments and file citations to discover assets. If they don't, they could end paying both their most aggressive creditors and the Trustee in a double-whammy.Read More

Your customer or borrower has been paying like clockwork and you, the creditor or vendor, have been dispensing goods and services as promised. Then your customer starts to pay a little later, then later still. Why not? Times are tough. So you do the decent thing and take their payments without complaining. Next thing you...Read More

What happens when the property taxes of a Chapter 13 Debtor, protected by the Automatic Stay, are sold at auction? Here the Bankruptcy Court for the Northern District of Illinois, Eastern Division, had to decide whether a Chapter 13 Plan of Reorganization affects the deadline for the Debtor to redeem sold taxes. The answer is,...Read More