Bankruptcy Info

Chapter 7 Debtors’ Discharge Denied – Sold Furniture from House

January 14, 2018

Background:

  • Chapter 7 Debtors owned a 5 bedroom home.
  • House was foreclosed.
  • Debtors entered into an agreement with the Trustee to sell the furniture in their home at auction.
  • Without any approval, Debtors sold the furniture and never even mentioned the sale to their attorney.
  • Trustee came to the house to start the sale of the furniture and found that the house was empty.

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Bankruptcy Attorney Sentenced to 63 Months in Prison

January 5, 2018

Background:

  • Attorney required clients in Chapter 11 or Chapter 13 to deposit money with him.
  • He represented that the money would be held in trust for use during the bankruptcy; the money was used for other purposes.
  • Attorney would take money from clients; tell them that he was working out deals with creditors with the money. Instead he used the funds for his personal use.
  • The attorney robbed 48 clients of $3.4 million He would take money that he owed other clients and pass money to them.  Sounds like a Ponzi scheme to me.

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Angry Ex-Husband Has No Standing to Object to Ex-Wife’s Bankruptcy

December 11, 2017

Background:

  • Couple divorced after two years of “contentious” litigation.
  • Ex-wife filed for Chapter 7
  • Ex-husband filed an adversary proceeding stating that she was not entitled to a discharge.
  • He claimed she had made false statements about her assets and liabilities. (Undervalued her engagement ring, failed to disclose $1,000.00 per month in income, and other non-disclosures)
  • All debts ex-wife owed were to be paid totally to her ex outside of bankruptcy as they were non-dischargeable.

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“Clogged” Conduit – Cannot Constitute Relief from Stay

November 29, 2017

Background:

  • Debtor Filed a Chapter 13 Bankruptcy Petition.
  • Plan provided for payments to the Trustee for the Mortgage pre-petition arrearages.
  • Trustee would act as a conduit to make the payments to the Lender.
  • Lender filed post-petition relief from the automatic stay since the Debtor was $11,500 in post- petition arrearages.
  • Debtor learned of this when served with bank’s motion.
  • Debtor objected to the bank’s motion since she provided proof that all her payments were timely to the Trustee and the documents support her weekly payroll deductions and payments to the Trustee’s office.
  • Trustee’s office confirmed that the Debtor was current on all plan payments. The timing and amounts of disbursements were based on the Trustees’ offices administration of conduit plans.

Court Ruling

  • Debtor’s plan was a “conduit plan” and only needed to satisfy her obligation under the plan for automatic stay protection.
  • Court found that the lender made a prima facie case for the stay relief, but the debtor prevailed because the delinquency was not her fault.
  • It is reasonable for the Debtor to assume that the payment to the mortgagee under the terms of the Plan.
  • No ruling was made on the Trustees’ offices for customary practices of timing of payments.

 

We Need Support When Going through Financial Hardships – Dogs Help

October 26, 2017

Although I can always be reached by my clients, sometimes extra comfort can come from pets.

We are a dog friendly office.

As you can see in this picture, one of my clients is very close to his dog and his friend comes everywhere with him.

So, he came to the office to make his owner feel more comfortable.    As you can see, the dog was listening carefully but got board toward the end.   He was right on top of the situation on my conference room table.

Pets are wonderful – Remember my office is dog friendly.

Pro se Debtor Still Working on His 8th Amended Chapter 13 Plan

October 15, 2017

Background

  • Debtor committed and was head strong to go it alone and  not utilize an attorney for file his Chapter 13 Plan.
  • Filed for relief in September of 2014.
  • Trustee objected to the Debtor’s 8th amended Plan.
  • Debtor’s Plan was a zero payment; with gross income of $117,269.00.

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Debtor Cannot Reopen Case After 8 Years

October 5, 2017

Background:

  • The Bankruptcy Law requires all Chapter 7 and Chapter 13 Debtors to take 2 counseling courses before your debts can be discharged: (either on-line or over the phone).
  • Pre-filing counseling must be taken before your petition is filed; .
  • Post-filing education must be taken before you obtain your discharge.

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