Many people file Chapter 13 bankruptcy to stop a foreclosure, and some people file Chapter 7 bankruptcy to discharge mortgage deficiency liability. I think many people are filing bankruptcy prematurely, and unnecessarily, to deal with foreclosure. Continue reading
Author Archives: Jonathan Alper
Does Chapter 13 Bankruptcy Preclude Mortgagee Filing Unsecured Deficiency Claims?
A potential bankruptcy client wanted to avoid a deficiency judgment from a partially first mortgage on his home. The client’s income made him ineligible to file Chapter 7 bankruptcy which would have discharged the deficiency liability in full. The client had heard that filing Chapter 13 bankruptcy could also eliminate the deficiency claim completely.
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Trustee’s Rights to Fees Paid to Debtor As Personal Representative of Probate Estate
I received a call from an estate and probate attorney about one of his probate clients who filed Chapter 7 bankruptcy in Florida. The bankruptcy debtor had been appointed as personal representative of an estate before he had filed bankruptcy. Estate administration is ongoing. Continue reading
Wells Gone Wild: Freezes Debtor’s IRA Account
I have reported previously on this blog that Wells Fargo Bank often will freeze bank accounts of its depositors who have filed bankruptcy even if the debtor claims the money in the account as exempt property on their bankruptcy petition. Wells Fargo bank often requires a letter from the bankruptcy trustee to give the debtor, and even his non-debtor spouse, access to the debtor’s money. Continue reading
Exemption of Unemployment Compensation After Debtor’s Receipt
Can a Florida Chapter 7 bankruptcy debtor exempt money in his bank account that represents deposited unemployment compensation? A Florida bankruptcy court recently reviewed this issue which had not previously been considered by any Florida court. Continue reading
Can Marital Settlement Agreement Supersede Bankruptcy Discharge?
A commercial contract cannot waive your right to file bankruptcy. A credit card company or a mortgage lender may not enforce a provision in their documents that states you are not permitted to file bankruptcy so as to disqualify your bankruptcy petition. Contractual provisions waiving your right to file bankruptcy are void. Continue reading
Published Study About Student Loan Discharge
Most people filing bankruptcy understand that Chapter 7 bankruptcy will not discharge student loan debt. In fact, the bankruptcy law provides an exception to the general rule of non-dischargeability when the debtor can demonstrate that the student loan causes an undue hardship on his post-bankruptcy recovery. Continue reading
New Chapter 13 Debt Ceilings
The debt ceilings for Chapter 13 bankruptcy filings are increasing effective April 1, 2013. The new limits are approximately $,150,000 for secured debts and approximately $383,000 of unsecured debts. Continue reading
Stolen Property Recovered After Bankruptcy Is Filed: Who Keeps It?
Prior to his filing Chapter 7 bankruptcy one of my clients was victim of a home break-in and theft. Valuable personal property was stolen. A police report was filed. After filing the petition, the police recovered some property and the thief was ordered to pay restitution to my bankruptcy client. Continue reading
Is Involuntary Bankruptcy Petition Possible Before Creditor’s Judgment?
One of my clients says his creditors have threatened to force him into Chapter 7 bankruptcy. The client is in default of a loan agreement over $1 million, but the creditor has not yet filed a lawsuit. The client’s recently purchased Florida homestead would not be exempt in a bankruptcy case filed in the near future. Continue reading