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Court To Wells Fargo – OK To Freeze Accounts Of Chapter 7 Debtors

If you’re filing for bankruptcy, move your money out of Wells Fargo before you file – even if you don’t owe them any money.

It’s long been the practice of Wells Fargo to place what they call a “temporary administrative pledge” on bank accounts when the account holder files for bankruptcy. At that point, Wells Fargo

By | August 26th, 2014|

Bankruptcy Dismissed – Now What?

Bankruptcy offers protection from your creditors and a chance to achieve your desirable outcome. But when dismissal looms, your future may not look so bright.

When you file for bankruptcy, you get the benefit of knowing that your creditors can’t take any action against you.

In return for the protections of the bankruptcy laws, you’ve got certain responsibilities. Fail to live up to your end of the bargain and you may find your case kicked out of court.

That’s dismissal – getting your bankruptcy case thrown out.

Before you decide whether that’s a good thing or not, you need to know what dismissal means for you down the road. These are the cold, hard realities of dismissal.

By | January 31st, 2014|

What It Really Means To Surrender Property In Chapter 7 Bankruptcy

Telling the bankruptcy court that you’re surrendering property in a Chapter 7 bankruptcy doesn’t mean it’s not yours anymore.

When you file for Chapter 7 bankruptcy, you complete a document titled “Statement of Intention.” That document outlines for the court what you intend to do with the property that’s secured by debts.

Think mortgages and car loans.

You can indicate that you’re going to keep the property and pay the debt, keep the property and pay off the debt through the bankruptcy court, or surrender the property altogether.

The choice is yours. But just because you say something, doesn’t mean it’s set in stone.

Rather, this is a statement of your intention – what you want to do with the debt and the property. It doesn’t reflect what the lender can or will do.

By | January 27th, 2014|

6 Steps To Take When You Leave A Creditor Off Your Bankruptcy Schedules

Ever forget where you put your keys? This clunky mass of metal and plastic, a critical piece of your day-to-day life, just goes missing.

Frustrating, but it happens. And most of the time, you’ll eventually find them sticking out of the lock of the front door or buried under a pile of mail on the table.

The fact that you can forget something so important makes it easier to understand how you can forget a particular creditor when compiling information for your bankruptcy case.

Fortunately, there is a simple step-by-step process involved in getting the problem fixed.

By | January 17th, 2014|

How To Stay In Bankruptcy – Even After You Die

Death may be the end of the road for many, but if someone is in bankruptcy then the case can still go on.

What if your loved one has filed for bankruptcy and dies before the case is over?

Does the bankruptcy case disappear, or does it continue?

How does it affect the administration of the deceased person’s

By | January 10th, 2014|

California Median Income Figures for Bankruptcy Updated For November 2013

median incomeThe U.S. Department of Justice has published new median income figures for all bankruptcy cases filed on or after November 15, 2013.

The numbers has gone down from the prior figures, signaling a reduction in the average household income for California families.

Effective November 15, 2013, the applicable family median income for people filing for bankruptcy in California is:

1 Person: $47,798 (down by $617)
2 People: $62,009 (down by $1,021)
3 People: $66,618 (down by $783)
4 People: $75,111 (down by $545)

Though the numbers have gone down only by a little bit, the impact could be huge.

By | November 1st, 2013|

Filing For Bankruptcy Means Showing Your Cards

disclosure in bankruptcy is showing your cardsWhen you file for bankruptcy, you’re putting yourself under a spotlight. Hide assets or refuse to cooperate and you could end up getting in a whole mess of trouble.

Take, for example, Denny Hecker.

Denny filed a Chapter 7 bankruptcy case in Minnesota.

The trustee demanded certain documents from him, but Denny refused. Denny is now sitting in a jail cell in Oklahoma, convicted of bankruptcy fraud.

This, after his Chapter 7 trustee asked the court to find him in contempt.

Here’s how to avoid being like Denny Hecker.

By | October 20th, 2013|

Geltzer Sues Catholic Schools In Bankruptcy Court

Hands in Prayer with CrucifixA bankruptcy trustee in Brooklyn is telling the U.S. Bankruptcy Court that there’s no value in going to Catholic school.

Robert L. Geltzer, a Chapter 7 bankruptcy trustee, filed suit against a local Catholic seeking a combined total of about $21,000 for what he seems to think as a valueless education.

His position calls into question the value of a Catholic school education as well as the right of a parent to decide what’s best for their children.

We’ve been watching the Brooklyn bankruptcy case of Geltzer v. Xaverian High School (Adversary Proceeding No. 1-13-01105-cec) for some time.  Now the New York Post has reported on the matter in a piece titled, Bankruptcy trustee targets Catholic schools.

What, I wonder, is Geltzer getting at? And more to the point, what is he saying about the place of a bankruptcy court to decide value of a private school education?

By | October 14th, 2013|

How Long It Takes To Complete Your Chapter 7 Bankruptcy Case

chapter 7 bankruptcy time to finishChapter 7 bankruptcy is remarkably powerful – and incredibly fast.

I’ve always said that it takes longer to decide to file for Chapter 7 bankruptcy than for the case to go through the court system.

For most of my clients, the decision-making process takes months of painstaking soul-searching.

First comes looking at options, then compiling documents and choosing the right lawyer.

Then it feels as if the world moves at double speed. Here’s what I mean.

By | August 22nd, 2013|

What Happens After The Chapter 7 Bankruptcy Meeting Of Creditors

meeting of creditors - 341 meetingOnce the meeting of creditors is over in your Chapter 7 bankruptcy case, you’re pretty much done.

You filed for Chapter 7 bankruptcy.

You went for your meeting of creditors.

The trustee closed the meeting.

Here are the loose ends you need to tie up.

By | August 21st, 2013|