Archive for the 'Chapter 7' Category

Converting a bankruptcy to Chapter 7 offers chance to eliminate more debt

Bankruptcy debtors involved in a Chapter 13 case often find the payments too much, or life throws them a curve, and they are forced to abandon their payment plans. The usual strategy in this situation is to convert the case to Chapter 7 (a few cases are even converted back and forth several times). Once […]

rules on sucessive bankruptcy discharges clarified

Massachusetts bankruptcy attorneys got an important clarification recently from U.S. Bankruptcy Court judge Melvin Hoffman on how much spacing there must be between bankruptcy cases for a debtor who wants a Chapter 13 discharge, but who has previously received a Chapter 7 discharge. This situation involves section 1328 (f) of the bankruptcy code, which bars […]

Bizzare new question may face Massachusetts bankruptcy debtors

I watched about an hour’s worth of “section 341″ meetings recently, and was surprised to hear the trustee asking a question I don’t think I’ve heard before. The trustee showed the debtors their Schedule C, and then asked: “Have you purchased any of these assets within one year of filing the bankruptcy case? That’s a […]

A Massachusetts chapter 7 bankruptcy train wreck

From the debtor’s point of view, what would be the worst possible experience to have in a chapter 7 bankruptcy case? Well, how about having the trustee file a lawsuit against the debtor, move (successfully) for an injunction to prevent them from spending except for daily essentials, and then press the court to deny the […]

Bankruptcy trustees must return debtor’s funds upon conversion from Chapter 13 to Chapter 7

Bankruptcy lawyers representing debtors with active Chapter 13 cases that might not be doing so well should keep in mind one fundamental truth to Chapter 13 practice: upon conversion of the case to Chapter 7, the debtor (and not the trustee, court, or creditors) is entitled to a return of any funds held by the […]

Court rules that debtors can strip off liens with a Chapter 7 bankruptcy case

Consumers in Georgia and Florida got a big boost from the Eleventh Circuit Court of Appeals in Atlanta (left) recently, when that court became the first appellate level body to approve — and the first to even discuss — lien-stripping in Chapter 7 bankruptcy. The topic has caused controversy among bankruptcy judges for decades. The […]

File Chapter 7 bankruptcy and skip the means test!

There is a simple way to avoid filling out the means test when you are filing a Chapter 7 bankruptcy case. If a debtor has primarily business debts, there is no need to complete the means test! Or, to put it in more precise bankruptcy language, if a debtor has “primarily non-consumer debts,” just check […]

Leigh Steinberg — the “real” Jerry Maguire, has filed for bankruptcy

The need to file a bankruptcy case can happen to anyone. Just recently ESPN brought the news that once high-flying sports agent Leigh Steinberg, known as the inspiration for the “show me the money” character of Jerry Maguire in the movie of that name, has filed a Chapter 7 case in California. In his heyday, […]

Chapter 7 bankruptcy eligibility in New Hampshire

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of New Hampshire considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $53,177; Family size = 2, threshold is now $63,626; Family size = 3, threshold is now […]

Chapter 7 eligibility changes for Massachusetts residents

Starting with cases filed in May 2012, the Chapter 7 “means test” eligibility figures have changed slightly for residents of Massachusetts considering bankruptcy. The new thresholds for annual family income are: Family size = 1, threshold is now $55,185; Family size = 2, threshold is now $66,200; Family size = 3, threshold is now $82,873; […]