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August 26th, 2010
August 16th, 2010
One of the first steps after the filing is the “Meeting of Creditors”. The meeting, also called a Section 341(a) meeting is held by the “Trustee“. The meeting is usually scheduled to occur about one month after the bankruptcy is filed. At the end of the meeting, the Trustee will announce what he plans to do with the debtor’s property. This is usually referred to as a “Statement of Intentions”. Unfortunately, the Statement of Intentions tends to be in Legalese, and debtors frequently leave the meeting uncertain of what the Trustee intends to do with their property. The following are three phrases you may hear and what they mean. 1) THE PROPERTY IS EXEMPT. Property that is exempt cannot be sold (liquidated) by the trustee and is retained by the debtor. 2) THE PROPERTY IS UNWORTHY OF ADMINISTRATION. Property that is unworthy of administration is property that, while not exempt, has little or no equity value. Simply put, it is not worth the time, effort and cost for the trustee to seize the item of property and sell it. This property is usually abandoned by the trustee and is also retained by the debtor. 3) THE PROPERTY IS ENCUMBERED. (OR THE PROPERTY IS ENCUMBERED BEYOND ITS WORTH) An encumbrance is a secured debt such as a mortgage or a car loan. For most debtors the encumbrance also makes the property unworthy of administration. Finally, don’t be afraid to ask questions if you hear something said at the trustee’s meeting that you don’t understand. Bankruptcy lawyers and trustees use these terms on a regular basis: you don’t. However, understanding the terms used in bankruptcy as well as the process are important parts of having a successful case. An experienced bankruptcy attorney can guide you through the entire process and will be able to bring the legalese down to earth. A bankruptcy estate consists of all of the property that a debtor has at the time of the filing of his bankruptcy. The bankruptcy estate comes into existence when a Chapter 7 or Chapter 13 bankruptcy is filed. Some of the items included in the estate are:
Even though you must disclose all of your assets, many of the items in your estate are exempt from administration. If items are exempt you are able to keep it them. Even when the property cannot be exempted it may be of little monetary value to the trustee and will be abandoned back to the debtor. A debtor who fails to list all of his property runs the following risks:
The assets in your bankruptcy estate usually vary from State to State. Contact an experienced bankruptcy attorney.
If you decide to assume the lease, then you will still be responsible for honoring the terms of the lease. When you reject a lease you are stating that you no longer want to honor the lease terms, and you will have to surrender use of the leased property. In addition, by rejecting a lease agreement in a bankruptcy, you receive a discharge from any further obligations under the lease agreement. You can only assume or reject an unexpired lease, and when you assume a lease you are responsible for curing any defaults in your obligations under the lease. This means that any money you owed on the lease will need to be paid. Remember: A bankruptcy is an opportunity to get a fresh start. You should carefully consider whether to assume a lease where you are behind on your monthly payments. If you assume the lease and can’t catch up on the monthly payments after your debts are discharged in a bankruptcy, you will once again run the risk of being sued by the lessor to force you to honor the lease.
The simple answer is no, you cannot be fired, or for that matter refused employment because you filed for bankruptcy. 11 U.S.C.A § 525(b) of the Bankruptcy Code provides that, “No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt”. However, I should point out that, like all simple answers, there is a “but” to this answer. An employer cannot fire or refuse to hire “solely” because you filed for bankruptcy. What this means is that if an employer can fire or refuse to hire if the decision was not made only on the basis that you filed for bankruptcy. Also, the statute only applies to private employers. The issue of whether a public employer can use bankruptcy as the sole basis for hiring or firing has not been resolved. Now, for what it is worth, I have never personally had a client come to me and tell me that he or she was fired because of a bankruptcy. If you have filed for bankruptcy and feel that you were fired or not hired because of the filing, you need to speak with your attorney to make sure your rights are protected.
The fact is there is no Chapter 20 of the Bankruptcy Code. Chapter 20 is an expression used by attorneys to describe a situation where a Chapter 7 bankruptcy is filed for a debtor followed by a Chapter 13 bankruptcy. When would this process be used? From time to time a debtor will come in with too much debt to file a Chapter 13 bankruptcy. Since the debt limits for the 13 are too high, it is sometimes necessary to file a Chapter 7 bankruptcy to get rid of the debt that is either unsecured, or that is secured debt where the debtor no longer wants to keep the secured property. After the Chapter 7 has been discharged, a Chapter 13 will be filed in order to propose a monthly payment plan to pay the remaining debt. A “Chapter 20″ is a complex process and may not be the best approach for your situation. You should contact an experienced bankruptcy attorney to discuss your options.
To encourage only legitimate buyers, a $300.00 deposit is required to attend. A list of the items scheduled for auction along with pictures of the items can be viewed at the A. J. Willner Auctions website. When an individual files for bankruptcy certain items of property are exempt from seizure and sale by the bankruptcy court. The debtor in a bankruptcy gets to keep the exempt items. The non-exempt items can be seized and sold by the Trustee appointed to administer the bankruptcy and the proceeds from the sale goes to pay the claims of the unsecured creditors.
First, the changes made by the Bankruptcy Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) require that the debtor(s) undergo Credit Counseling before the filing of a bankruptcy and that a copy of the certificate showing that the credit counseling was completed by attached to the bankruptcy petition. The failure to take the credit counseling and attach the certificate can result in a dismissal of your bankruptcy. In my office, I have had a number of occasions where we have been able to help a client complete the credit counseling in enough time to file bankruptcy before a foreclosure, but it is not advisable to wait until the last minute to file. Secondly, in Louisiana where I practice, the creditor and its attorney are incurring additional costs, expenses and fees by filing for a foreclosure. If you are going to try to file a Chapter 13 bankruptcy and keep the house, the longer you wait the more costs, expenses and fees are going to be tacked on to the amount you owe the creditor. Third, it has generally been my experience that it is all but impossible to properly advise a client as to the type of bankruptcy that is best for them in an emergency setting. In Louisiana, the sheriff serves a Notice of Seizure on the debtor. In most cases, the date of the foreclosure is at least a month or more from the date of service of the notice. Because of this advance notice, there is really no practical reason to wait to consult an attorney to discuss the options available to you regarding your home.
RealtyTrac Inc., a foreclosure listing service, reports that nearly 528,000 homes were taken over by lenders in the first six months of the year. At the current rate of foreclosures, the foreclosure rate for 2010 will exceed more than 900,000 homes that were repossessed in 2009. According to RealtyTrac, lenders have historically taken over about 100,000 homes a year. The entire article can be read on Las Vegas Review-Journal site. Bankruptcy stops a foreclosure and can help you keep a home that is scheduled for foreclosure. Speak to an experienced bankruptcy attorney about your options.
The Chapter 7 bankruptcy has been filed in the United States Bankruptcy Court for the District of New Jersey. The bankruptcy filing shows that Teresa Giudice and her husband owe $11 million dollars in debt and earn about $79,000 a year. A Chapter 7 bankruptcy allows a debtor such as Teresa Giudice and her husband to get rid of their unsecured debts, such as credit card debts, and also gives the couple options as to what to do with their secured debts which in this case include several homes that, according to the bankruptcy filing, are in various stages of foreclosure. A copy of the original bankruptcy papers for Teresa Giudice can be found at JDSupra.
Walker’s filing indicates he has $12.7 million in debt and $4.3 million in assets. Walker’s schedules indicate monthly living expenses for his family spend an average of $78,000 per month, and states he currently has no income. The bankruptcy was filed following a notice that creditor’s intended to sell a house that Walker had purchased for his mother in Chicago. |
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