Board Certified Specialist in Bankruptcy
While most people have some familiarity with the concept of bankruptcy under federal law, many people are unaware of the concept of receivership under North Carolina law. What is receivership? A federal bankruptcy judge oversees the bankruptcy case, with the help of the Bankruptcy Administrator. In a receivership, the North Carolina court appoints a receiver who is an officer of the court … [Read more...]
Clients often ask me whether filing a bankruptcy case will affect their eligibility for student loans. Generally, these are parents who plan to seek PLUS loans for their kids’ college educations, but sometimes it is the client who plans to go back to school and needs financial assistance in order to do so. The bankruptcy code is specific The Bankruptcy Code contains a specific provision … [Read more...]
Unfortunately for those in financial hardship, filing for bankruptcy protection isn't free. Too often, I counsel people who need bankruptcy protection who haven't saved the money for the court costs or attorney fees. And sometimes, I meet with new clients who may have been able to save a troubled business if they’d just gotten some legal advice earlier rather than later. This is usually … [Read more...]
Each state has different laws on what is recognized as exempt property, that is, property that is out of the reach of creditors (including bankruptcy trustees). Further, there are federal exemptions. I wrote about this extensively and you may find it helpful reading. Here's the kind of question that occasionally comes up when we counsel a married couple about bankruptcy. Q: The exempt … [Read more...]
In advising people regarding financial difficulties, I am often asked about bankruptcy and the effect that it has on employment, licensing and the like. In other words, a client will ask if bankruptcy will hurt his or her ability to get a job or will his or her employer fire them because I filed bankruptcy? As to licensing, a contractor may ask about the ability to obtain a contractor’s … [Read more...]
Some of the best advice a bankruptcy attorney can give is about timing: when to file. In many circumstances, I advise clients to wait until a date certain to file, and to maintain the status quo until then, which often means dealing with a deluge of creditor and bill collector calls until their cases are filed. Don't allow yourself to be railroaded by creditor calls Many clients want and … [Read more...]
There are financial and emotional reasons to seek bankruptcy protection. Let's consider both categories. Financial questions to ask yourself Are you able to make more than a minimal payment on your debts every month? How many times in the last year have you been late or skipped a payment on a debt? What is your total debt relative to your annual income? The higher your debt to annual … [Read more...]
On December 13, 2011, the President signed into law H.R. 2192, the National Guard and Reservist Debt Relief Extension Act of 2011. This law exempts certain military and homeland defense members from a means-test presumption of abuse in determining eligibility for Chapter 7 bankruptcy relief. In essence, it extends a similar protection that has been in place for a while now. There is, of … [Read more...]
Filing a Chapter 13 bankruptcy case isn’t as straightforward as a Chapter 7 case. I usually find that my Charlotte area clients who need Chapter 13 bankruptcy protection have issues with businesses and partnerships that need to be unwound or otherwise dealt with; they often have unpaid tax liabilities with the state and IRS; and they may have a number of mortgaged properties and other … [Read more...]
There is a saying among bankruptcy attorneys: “debts die, liens live.” People can discharge most debts in a bankruptcy case, meaning that they are released from their personal liability for discharged debts. Creditors cannot take any action to collect a discharged debt from a debtor. But what happens to liens or mortgages on property owned by the debtor? There are a few common … [Read more...]