Bankruptcy Info

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…

Debtors (outside of Bankruptcy) Pay Personal Loans First – Do You?

June 13, 2017

When we study the dynamics of debtors who do not have enough money to pay all creditors, it is interesting to note that personal loans were paid first.

The hierarchy that debtors pay their debts was found to be as follows:

  1. Personal Loans
  2. Auto Loans
  3. Mortgages
  4. Credit Cards

Continue reading…

Attorney Deceives Client – Tries Chapter 7 to “Wiggle out of the Debt”

June 12, 2017

Background:

  • Client was seriously injured in an accident in 2008; hires Attorney #1 who failed to file the Complaint within the required time frame.
  • Client then hires Attorney #2 to file a malpractice claim against Attorney #1.
  • Attorney #2 did not file the malpractice case within the required time frame and client’s case was dismissed.
  • December 2011, Attorney #2 met with his client after she assured him that she would not hire a 3rd attorney to file malpractice against him.
  • Attorney #2 advised that he had no malpractice insurance and had no money; he offered the client a promissory note in the amount of $275,000 plus attorney’s fees of up to 25% of the value of the note.
  • Attorney #2 advised that one of his cases was paying out shortly; she had 5 years to collect on the note.
  • Client accepted the “deal”.
  • June 2012, client filed a disciplinary action against Attorney #2.
  • November 2013, client sued Attorney #2 to collect on the note.
  • February 2014, Attorney #2 filed for a Chapter 7 bankruptcy and client filed an adversary proceeding for the note to be non-dischargeable.

Continue reading…

Restitution Obligation Not Dischargeable

June 4, 2017

Background:

  • Debtor was convicted of stealing money from his employers.
  • Restitution was set at $196,691.
  • Debtor filed for Chapter 7 Bankruptcy.
  • Employer filed an adversary proceeding since the Debtor was trying to discharge the restitution obligation.
  • The Debtor admitted he was charged with and pleaded guilty to criminal theft and ordered to pay restitution.
  • Debtor denied that the Restitution Order was non-dischargeable.
  • Debtor appealed Bankruptcy Court’s ruling that the debt was non-dischargeable.

Continue reading…

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