Bankruptcy Info

Riding Mower Was Not a Lawn Tractor – Bad News for the Creditor



May 9, 2017

Background:

  • Debtors borrowed money from a creditor to purchase a 41” John Deere Riding Lawn Mower.
  • Debtors filed for a Chapter 13 Bankruptcy and wanted to file a Motion to Avoid the Lien on the John Deere Mower.
  • Debtors felt the lien on the mower impairs their exemptions and it is personal property not a recreational vehicle, motor vehicle or tractor.
  • Creditor presented that the John Deere Riding Lawn Mower was a motorized vehicle which attachments could be placed on the mower and thus is a motor vehicle/tractor which cannot be exempted.
  • Creditor also stated that it was not a personal item that could be used only for cutting grass but also could be used to haul or power implements.

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Amending Schedules Does Not Hide You Lied


April 30, 2017

Background:

  • Debtors filed for Chapter 7 bankruptcy.
  • Debtors did not list 2 inoperable trucks that they owned; debtors’ claimed these trucks at the time of the petition were property of deceased father.
  • Changed their schedules when the two trucks were questioned; amended their schedules to include one truck.
  • Plaintiff, former landlord of Debtors, evicted Debtors and objected to the Debtors’ discharge. Continue reading…

Ex Attempting to avoid Paying Support Obligations – Could Not File Chapter 13

April 6, 2017

Background

  • Ex-Husband was required to make monthly alimony payments according to his Marriage Settlement Agreement (“MSA”).
  • MSA stated it could not be modified.
  • Ex-husband fell behind in his payments
  • Ex-husband tried unsuccessfully to lower his MSA payments in State Court
  • State Court ruled against him – Affirmed on Appeal
  • Threatened with jail time, the Ex-husband filed a Chapter 13 Bankruptcy as a delay tactic.

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Debtors Need Their Monthly Bills from Creditors

March 15, 2017

Background:

  • Most banks will no longer send monthly statements to the debtors when debtors are in bankruptcy.
  • Debtors must call or contact the bank if they want to find out the monthly amount owed.
  • Creditors/banks must notify the debtors only if there is a change in the monthly payment.
  • Debtor filed a Chapter 13 Plan and added in the Plan that the creditor was to continue with monthly statements to the debtors.
  • HSBC objected on the basis that it would be a violation of the automatic stay and create a logistically burden to the bank.
  • HSBC stated that adding the clause requiring statements, the Plan was unconfirmable.

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Chap. 13 Case Dismissed – Adversary Proceeding Must Stop

March 13, 2017

Background:

  • Debtor (attorney) and his wife filed for Chapter 13 Bankruptcy.
  • Prior to filing for Bankruptcy, Debtor was convicted of stealing money from elderly clients.
  • Complaint was filed by Debtor’s victim that the restitution could not be discharged in bankruptcy.
  • Adversary proceeding was started.
  • Debtor’s wife severed the joint bankruptcy.
  • Debtor eventually voluntarily dismissed his case shortly thereafter.
  • Debtor’s victim wanted the adversary proceeding to continue in Bankruptcy Court so this claim could never be included in another bankruptcy and Exempt from Discharge.

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Liquor Store Owner Sentenced to Prison-False Statements

February 19, 2017

Background:

  • Small business owner sentenced to prison.
  • Filed Chapter 7 Bankruptcy.
  • Owner of a liquor store.
  • When the small business owner sold the liquor store for $171,000, he had his parents deposit the proceeds in their bank account.
  • Parents paid his expenses and gave him cash on a regular basis from the funds.
  • This income/profit was never recorded in the Bankruptcy Petition.

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Loan Modification – Ocwen Did Not Follow HAMP

February 10, 2017

Background:

  • Loan was acquired through a divorce and the wife remained in the home after divorce.
  • Wife had previously filed for a Chapter 7 bankruptcy; Ocwen did not allow Wife to apply for a loan modification.
  • Before assuming the mortgage, wife applied for a loan modification from Ocwen Loan Servicing.
  • Debtor participated in good faith to apply for the loan modification.
  • Ocwen presented that the Debtor was not acting in good faith since she did not want to assume the mortgage before applying for a loan modification.

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Attorney Cannot Keep Ferrari & MG from Debtor Client

January 22, 2017

Background:

  • Attorney was a debtor’s business attorney.
  • There was a long-standing personal relationship between the debtor and the attorney.
  • Even though the debtor had no funds to pay the Attorney, the attorney continued to provide legal services for the debtor which resulted in $70,000.00 outstanding.
  • Debtor filed for Chapter 7.

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