Bankruptcy Info

IRA Withdrawn After Chapter 7 Filed – Trustee Could Not Claw-back

September 10, 2017

BACKGROUND:

Retirement accounts are exempt when you file bankruptcy.

You are able to keep your retirement accounts and protect your future.

Debtor filed for Chapter 7 Bankruptcy

Debtor withdrew $130,000.00 from his IRA (did not rollover the funds into another Retirement Account) after petition was filed but before case was closed.

Trustee filed an action to recover the withdrawn funds.

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Home with Value to Homeowners but Trustee Wants to Take – The Court Decides

September 8, 2017

Background

  • Couple/Debtors filed for Chapter 7 Bankruptcy.
  • Debtors state their home was worth $108,000; they owed $91,581.
  • Trustee argued that he wanted to sell the home and evict the homeowners.
  • Trustee presented appraisal; and a realtor who said the property was worth $204,000 and felt the damages and the need for repairs were overstated.
  • Debtors presented appraisal: $185,000 after making repairs costing $60,000.00:   $171,000 after repairs of $63,000 were made

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Who Receives the Money Held By The Trustee When a Case is Dismissed?

August 29, 2017

Who Receives the Money Held By The Trustee When a Case is Dismissed?

Unfortunately, some Chapter 13 Bankruptcy cases are dismissed after they are confirmed/approved. This could be for various reasons, e.g. Debtor did not pay the Trustee Fees.

The Trustee holds moneys he/she receives to pay creditors in a separate account earmarked for Creditor payments throughout the case as well as Trustee fees and Administrative Claims.  When a case is dismissed and there are moneys left in the Trustee’s account for this case, the Debtor must be refunded this money.

The Trustee cannot disburse the remaining funds to anyone but the debtor.

Wife’s Spending Spree Non-Dischargeable

August 17, 2017

Background:

  • Husband and Wife had a joint account with a limited credit line.
  • Bank made error and increased the allowable credit limit to $100,000.
  • Wife took full advantage of the situation and began to go on a spending spree; charging in excess of $80,000.
  • Husband had no knowledge of the situation at the time.
  • Wife handled all the finances.
  • When the bank demanded this money be paid back through a payment plan, wife informed husband of the situation.
  • Couple filed for bankruptcy.
  • Bank filed an adversary proceeding.

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Children’s Tenancy Malicious Acts – May Be Non-Dischargeable

August 16, 2017

When you are a tenant, you are responsible for damages to the property.   Normal wear and tear is allowable.   However, if your children break windows, graffiti the walls, etc., that is not normal wear and tear.

Parents are responsible for damages caused by their children.   Bankruptcy may not be the answer to discharge these debts.   Each case is very specific and is looked at very carefully.

For example, if you are aware that your children are doing the damage and do nothing to stop or prevent the damage from happening or continuing, those damages and related law suit recoveries may not be dischargeable.   Bankruptcy is not a solution to avoid creditors when your children, under your supervision, cause damages to property.

Livan Hernandez Pitching for Bankruptcy

August 4, 2017

Net worth according to Court papers was $50,000 as of June 2017.

Livan is a two-time MLB All Star pitcher.

Earned more than $53 million in his 15-year career.

Primary debts:

  • IOU’s to businesses /credit card companies.
  • Back taxes to the IRS
  • Local businessman who lent Hernandez $220,00 in 2013 but hasn’t paid back

From $53 million to $50,000 – amazing how spending habits can hurt you.

As a pitcher, he is accustomed to getting relieved.

Livan deserve a fresh start.

Not All Attorneys with High-Profile Cases Do Well; Sometimes They Need Bankruptcy, Too

 

July 7, 2017

Lee Bailey filed for Bankruptcy again to tie up some loose ends following his bankruptcy case which was filed last year.

Lee Bailey participated in the following high profile cases:

  • 1960 secured an acquittal for Dr. Sam Sheppard’s Conviction in the murder of his wife, which later inspired the TV show and movie: The Fugitive
  • 1995 Murder Trial of OJ – ended in an acquittal of killings of his ex-wife Nicole and Ronald Goldman
  • Represented Albert DeSalvo, who claimed to be the Boston Strangler
  • Represented Patty Hearst

Love, Trust & Faith –When you are presented with a one-eyed horse – you need to look at the horse more closely.

June 21, 2017

Background:

  • Two individuals, married to others, who work together fall in love.
  • Man continues to tell the woman that he will get a divorce and when questioned – When? – he replies you must have “LOVE, TRUST AND FAITH”.
  • Tells her that he needs money to clear up his debts in order to get a divorce.
  • Promises continually and eventually woman gave $275,000.00 to him as they were newly-in-love and she must believe in his “LOVE, TRUST AND FAITH” concept.
  • Man gets a new job so that their relationship doesn’t affect their jobs.
  • Man uses woman’s charge accounts and she sees that he charged a trip with his wife and furniture for his home.
  • Man disappears and cannot be found; says woman changed (might be tied to the fact she is putting his feet to the fire?)
  • Man Files for Chapter 7.
  • Woman files an adversary proceeding so that his debt to her is non-dischargeable.

Continue reading…

Chapter 7 Debtor Destroys Borrowed Car – Dischargeable?

June 19, 2017

Background

Debtor:

  • Worked for a Dealership and drove one of the dealership’s cars home without permission
  • Felt her car was not safe to drive.
  • Drove car back to work and was involved in a multi-vehicle accident; car was totaled.
  • Pleaded guilty to unauthorized use of a vehicle and ordered to pay restitution.
  • Filed for Chapter 7 Bankruptcy.
  • Dealer filed adversary proceeding to state that the claim for restitution was not dischargeable.

Continue reading…

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