Since 2005, persons who wish to file a Chapter 7 bankruptcy case need to qualify first, passing a means test that compares their recent income to the average income and expenses in the area where they live. This means test applies to all Chapter 7 cases of individuals that involve primarily consumer debts. This begs […]
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Can a dead person claim a homestead exemption?
The quick answer is no. But a recent case in Massachusetts involved some twists and turns on this point. In the Mbarzira case, the debtor died in the middle of the bankruptcy proceedings. There is nothing controversial there; when that happens, the bankruptcy code is crystal clear that a chapter 7 case continues despite the […]
Posted in Exemptions
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Debtor can’t remove lien on house because it was her husband’s debt
Can a bankruptcy debtor get rid of a lien on the house she owns wither husband, if the lien is tied to a debt incurred only in the husband’s name? No, says Massachusetts bankruptcy judge Janet Bostwick in the Hector case. There, the wife re-opened her Chapter 7 bankruptcy when she learned that a lien […]
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Working for a marijuana business could cost you your right to file bankruptcy
Since the rise of marijuana legalization in various parts of the United States, it has been universally held that newly minted “pot shops,” should they fall on hard times or go out of business, cannot seek corporate bankruptcy relief. Bankruptcy court is federal court, and federal courts reading federal laws still consider cannabis to be […]
Posted in Bankruptcy News
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All about bankruptcy discharges:
During the 12-month period that ended September 30, 2018, more than 760,000 Americans filed for bankruptcy under Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. These Americans were facing seemingly insurmountable debts, but the bankruptcy process offered them a way out. The way bankruptcy does so is through the discharge, a court order that terminates a […]
Don’t panic if you see zeros on your credit report after bankruptcy
Clients often call me months or years after their bankruptcies are finished with a version of the same complaint: “I just checked my credit report, and my [car loan, mortgage, etc.] shows a zero balance. Plus, the payments I’m making aren’t being shown on the report.” Relax, I say. First of all, this is correct […]
Posted in Practical tips
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Median income levels for the bankruptcy means test rise again
New data released by the Census Bureau as of April 1, 2018 will result in it being a bit easier to qualify for Chapter 7 bankruptcy in either New Hampshire or Massachusetts. Median income levels are used by the bankruptcy court to determine whether a debtor qualifies for a Chapter 7 case, and also to […]
Posted in Bankruptcy News, Means Test
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Midland Funding survives bankruptcy scare in Supreme Court
Midland Funding, the giant California-based debt buyer, narrowly escaped judgment in the United States Supreme Court in May 2017, when the nation’s highest justices ruled 5-3 that they couldn’t be sued by a bankrupt debtor for filing a stale claim — i.e. a claim involving a debt where the statute of limitations had expired — […]
Posted in Bankruptcy News, Chapter 13
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How come everyone is a debt relief agency?
If you’ve been searching around for a bankruptcy lawyer, you may have started wondering why nearly every one of them claims to be a “debt relief agency” or “federal debt relief agency.” The answer turns out to be simple: since 2005, the bankruptcy code has mandated that lawyers include those words in public communications including […]
Posted in Practical tips
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Foreclosure assistance programs ranked as one of the top consumer complaints in Massachusetts
According to the Massachusetts Office of Consumer Affairs, foreclosure assistance programs ranked as the fifth most common source of consumer complaints in the past year. The foreclosure programs, many of which are outright scams, drew more complaints than timeshare resellers. The top four categories of complaints on the list were against home improvement contractors, auto […]
Posted in Bankruptcy News, Foreclosure
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