Defending a lawsuit claiming it engaged in fraud and misrepresentation when it strung borrowers along with the promise of a loan modification, Countrywide asserted that its ads promising help with loan modification was just puffery. It’s a startling admission from a mortgage lender already in the glare for its lending practices. But, hey, we can […]
Tax breaks no place to hide public policy choices
The US tax code is stuffed with tax breaks to further some social policy or another. We’ve made it safer for legislators to funnel money to the poor, the parents of college aspirants, those saving for retirement by giving them a tax break than by appropriating money for the purpose deemed worthwhile. And these are […]
Chapter 13 trustees, money, and goodwill
Date line: July, 2008 I’ve spent the last three days at the annual meeting of the National Association of Chapter 13 Trustees in San Francisco. Strewn through the convention site are banners thanking those who have contributed money to put on the gathering of Chapter 13 trustees. Those three sponsors at this event are exclusively […]
Credit counseling, well understood, is just another bankruptcy hoop
While there are an endless number of misconceptions about filing bankruptcy, the one I’ve encountered more often in the past weeks is the belief that participation in a debt management program or debt settlement program meets the new requirement for a “credit briefing” as a condition of filing bankruptcy. The Bankruptcy “Reform” Act of 2005 […]
Cash collateral in consumer cases
What’s cash collateral, and why should you care? You care because there’s a whole set of rules in bankruptcy to protect a creditor’s interest in cash collateral, and ugly consequences if you ignore those rules. But you don’t have to have a traditional business to have cash collateral, and the duties it brings, in a […]
File Your Tax Return Or Get An Extension?
Filing a tax return does not focus a spotlight on you. Really. I regularly see clients who have not filed returns because they have some issue with the IRS. They either have taxes that will be owed with the unfiled return, or taxes owed from earlier periods. They think they are avoiding trouble by not […]
Where’s the UST?
Sort of unwittingly, I got involved in one of the bigger issues plaguing bankruptcy courts recently: the claim filed in the bankruptcy by the debt buyer without supporting documentation. I objected to a claim filed a client’s case by Roundup Funding, who had never had any contact with my client prior to filing. There were […]
Sell first, litigate later
Meeting with a client with Truth in Lending claims the other day reminded me about the power of the Bankruptcy Code to facilitate the sale of property subject to disputed liens while preserving the claims against a secured creditor. These clients had property they wanted to sell but the amount they owed the holder of […]
Muttering about the means test
The stupidity of the means test as a metering device in bankruptcy was apparent as I worked through the case of a single debtor. Because she is a renter with an old, paid-for car, and no unpaid taxes, the means test will compel her to pay a significant amount monthly to her Chapter 13 plan. […]
Should You Keep Your Stuff After Bankruptcy?
The usual question for a bankruptcy attorney is “can I keep my (fill in the blank)”. Whether it’s a house, or a car, or a computer, clients want to know if filing bankruptcy will strip them of their “stuff” bought on time. Frequently the answer is that they can keep the asset as far as the […]
