The United States Trustee has issued an increase in the median family income used for completing Bankruptcy Forms 122A-1 and 122C-1. The increase is based on consumer price index adjustments and is effective as of today, April 1, 2020. The new table is available here. Median income is used to determine eligibility for Chapter 7 […]
Category Archives: Chapter 7
Dewsnup case keeps rearing its ugly head
The Freddy Krueger of consumer bankruptcy law is coming around to scare us again. That would be the Supreme Court case of Dewsnup v. Timm, which was decided way back in 1992. But because the Supreme’s interpretation of how to handle liens in bankruptcy court is so wishy-washy and apparently wrong, the controversy surrounding the […]
It’s time to get rid of creditor meetings in consumer bankruptcy cases
Every debtor in bankruptcy travels somewhere, at least once. While most consumer bankruptcies are simple affairs, completed without a lot of trudging back and forth to court, each debtor must make at least one appearance, at a hearing with the somewhat misleading name “meeting of creditors.” This is a good time to put an end […]
The difference between Chapter 7 and Chapter 13
Chapter 7 or Chapter 13 Bankruptcy: What’s the Difference? When individuals file for bankruptcy, one of the first choices they must make is under which chapter of the Bankruptcy Code to file their case. In general, individuals choose to file either under Chapter 7 or Chapter 13. Each of these chapters provides its own set of rules […]
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 […]
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 […]
Also posted in Chapter 13, Practical tips
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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 […]
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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 […]
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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 […]
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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 […]
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