Author Archives: doug

Confusion reigns on whether a means test is needed when converting a bankruptcy case to Chapter 7

By doug | Published: April 13, 2011

If you file a Chapter 7 bankruptcy case, debtors with mainly consumer debts have to also file a “means test,” which proves they qualify for Chapter 7 relief based on their recent income. If you file Chapter 13 case, there is no pure means test (although there are qualifications), but you file a very similar […]

Posted in Chapter 13, Chapter 7, The Bankruptcy Code | Comments closed

The Squeeze: People are having trouble paying for food, oil, and credit cards all at once

By doug | Published: April 12, 2011

We were having a little bit of an economic recovery the past few months, which, needless to say, was badly needed. But now rapidly rising consumer prices are threatening the fragile recovery. As a result, a lot of people in our Merrimack Valley area are being put through what I call “the squeeze.” When they […]

Posted in Credit cards | Comments closed

Is debtor’s prison making a return to Massachusetts?

By doug | Published: April 11, 2011

Money maven Clark Howard has just posted an interesting article on the return of debtor’s prison to some states. Howard writes that “the Wall Street Journal reports that more than one-third of U.S. states allow borrowers who can’t pay a debt to be jailed. Capital One is among the companies having people locked up for […]

Posted in Bankruptcy News | Comments closed

In praise of cash

By doug | Published: April 8, 2011

Cash is a great thing. Bankruptcy lawyers are always telling clients to use it instead of plastic, but most people don’t actually do it. The reason you should do it is that most people won’t spend as much money if they are actually spending money. Ever wonder why casinos encourage players to use chips instead […]

Posted in Practical tips | Comments closed

If you have no assets, should you file bankruptcy anyway?

By doug | Published: April 7, 2011

Some people pass around a common bit of bad advice, to the effect that a person with no assets is “judgment proof” and therefore never needs to file a bankruptcy case. While there is a grain of truth in this assertion, as always, there is another side to the story. First, if a “no asset” […]

Posted in Chapter 7, Practical tips | Comments closed

The federal government may shut down, but bankruptcy survives

By doug | Published: April 6, 2011

It is unclear as of this writing whether the federal government will really shut down on April 8th or not, but even it does, the bankruptcy court system, which is part of the federal judiciary, is expected to stay open for business. Bankruptcy courts are funded in part by fees (if you’ve already filed your […]

Posted in Bankruptcy News | Comments closed

How to avoid a tax bill following a foreclosure

By doug | Published: April 5, 2011

What could be worse than the foreclosure of your home? How about a whopper tax bill resulting from the “forgiveness” of the unpaid debt! Following a foreclosure that does not recoup the value of the property being seized — pretty typical, in today’s housing market — the foreclosure will generate a 1099 for the difference […]

Posted in Foreclosure, Taxes | Comments closed

Is renting out your house a way to save it?

By doug | Published: April 4, 2011

Under the present bankruptcy law, it is very difficult to use a Chapter 13 bankruptcy plan to impose your own mortgage modification on the primary lender for a residential home. There have been near constant efforts to get the Congress to change this, but so far the pleas have fallen mostly on deaf ears. The […]

Posted in Chapter 13, Real estate, Secured loans | Comments closed

The Bankruptcy rumor mill is cranking again: this time Sbarro’s might file

By doug | Published: April 1, 2011

The bankruptcy rumor mill is back in high gear again, with today’s newsbeing that Sbarro’s franchise chain, with their ubiquitous sandwich and pizza outlets in the Northeast and Midwest, will be filing for bankruptcy protection shortly. The chain has $300 million in debt, mostly bonds, and has been in default since February. Senior lenders have […]

Posted in Bankruptcy News | Comments closed

The worst day to file for bankruptcy in Massachusetts?

By doug | Published: March 31, 2011

Massachusetts debtors face possibly the worst day ever to file a bankruptcy case on March 31st. Your grandmother told you patience is a virtue; she was right. Massachusetts debtors who wait even one day will be able to take advantage of increased federal bankruptcy exemptions, which are bumped up every year on April 1st to […]

Posted in Practical tips | Comments closed
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