Monthly Archives: July 2010

NFL quarterback bankrupt

Former Jacksonville Jaguars quarterback Mark Brunell has filed for bankruptcy, according to an article by Texas law firm Allmand and Lee. It appears that Brunell has filed under Chapter 11 of the bankruptcy code, listing $5.5 million in assets and $24.7 million in debts. Brunell has earned more than $50 million in his sports career, […]

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The difference between a bankruptcy discharge and a dismissal

Dismissed and discharged. These two terms are at the opposite ends of the scale of results in bankruptcy, yet they are often confused. A debtor gets a discharge and is relieved of the legal liability for the dischargeable debts in the bankruptcy case. A dismissal means the bankruptcy case was terminated short of the discharge. […]

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Lenders are often slow to act even when you file for bankruptcy

The automatic stay is the hallmark of bankruptcy, so when the judge lifts the stay to permit a lender to foreclose, we tend to think the curtain has come down on our client as homeowner.  Well, maybe not, or at least, not yet. In some cases, the road to foreclosure seems to be a wandering […]

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Thinking about a debt relief firm instead of bankruptcy? Better read this!

If you have been thinking about doing business with one of those “debt-relief” firms that are advertising everywhere lately, you really need to read this New York Times article first: “Peddling Relief, Firms put Debtors in a Bigger Hole.” If you are looking instead for real solutions, give me a call instead (if you live […]

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Loan Modifications on Underwater Homes: just delaying the inevitable?

You’ve just spent months trying to get a loan modification on the mortgage for your house, and today you found out you got accepted into their program. Congratulations! Or maybe not. What if your house isn’t worth as much as the loan, even the modified loan? We call that being underwater. Blub. Blub. Blub. No […]

Posted in Chapter 13, Chapter 7, Foreclosure | Comments closed

How much disposable income should a debtor pay in to a Chapter 13 bankruptcy?

One of the longstanding rules of Chapter 13 of the bankruptcy code is that debtors seeking relief under this chapter must turn over all their “disposable income” — i.e., what’s left over after paying the basic bills — to a bankruptcy trustee every month for the length of their plan, which can run as long […]

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Wells Fargo not allowed to freeze bank accounts when a Chapter 7 case is filed

An interesting case emanating from the western states involves a court clamping down on Wells Fargo for illegally violating the bankruptcy court’s automatic stay protections in many consumer Chapter 7 cases. A recent ruling from a bankruptcy appellate panel in the Ninth Circuit, which covers most of the West, found that Wells Fargo was obtaining […]

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The Supreme Court might help you out with the dreaded means test

Just before adjourning for their summer recess last month, the United States Supreme Court issued its decision in another bankruptcy case on its docket — and this one might be of some benefit to consumer debtors down the line. In Hamilton v. Lanning, the Supremes took on issues concerning the dreaded “means test” that nearly […]

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