December 16, 2017

The Bankruptcy Means Test: Don’t Make Assumptions

Virtually everyone who is considering bankruptcy goes online to get information regarding the bankruptcy process.  These folks will almost certainly encounter the “means test." This is a part of the bankruptcy law that makes it harder to file a Chapter 7, liquidating bankruptcy. The means test purportedly exists to stop people from abusing the bankruptcy law by filing Chapter 7 cases when they … [Read more...]

Re-filing Chapter 7 after the 2005 Bankruptcy Reform Act

Have you previously filed for Chapter 7 bankruptcy protection? Are you in a difficult financial situation again? You may be eligible to re-file. On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer protection Act of 2005 (derisively referred to by the bankruptcy bar as BAPCrappa) became the law of the land. It instituted the hated means test that, by using wholly arbitrary … [Read more...]

Chapter 7 Income Tax Relief Difficult for Tardy Filers

People in financial hardship often need income tax relief. Contrary to what many people believe, income taxes can be dis-chargeable in a Chapter 7 bankruptcy case.  "Dis-chargeable" means certain income taxes will cease to exist just as other debts. A three-point test to discharge taxes in Chapter 7 bankruptcy In order for tax debt to be dischargeable, the taxes must meet a three-point … [Read more...]

Chapter 7 Bankruptcy: Businesses & Individuals

The word "bankruptcy" is heard everywhere, from coffee shops to church bazaars and the evening news. It's clear to me that, despite this general knowledge of bankruptcy, few people understand what it means to file for protection under Chapter 7, Chapter 11 or Chapter 13. Chapter 7 is a liquidating bankruptcy.  It is normally utilized to obtain a “fresh start” for an individual debtor, and, far … [Read more...]

Charlotte Bankruptcy in the Headlines

When you've been around as long as I have, you call things as you see them.  Maybe that's why reporters call me to comment on high-profile bankruptcy cases. Charlotte's 210 Trade files Chapter 7 Bankruptcy In case you missed my 2-second TV debut last week on WSOC, here's a link to what I said about the 210 Trade condominium bankruptcy filing when the reporter asked if buyers were likely to be … [Read more...]