Florida Court Dismisses Chapter 7 Bankruptcy As Filed in “Bad Faith.”

A bankruptcy court can dismiss a Chapter 7 bankruptcy filing for “bad faith” even if the debtor passes the means test or is exempt from the means test because his debts are primarily non-consumer debts. A Florida bankruptcy court dismissed a Chapter 7 filing because the court found that the bankruptcy filing was not appropriate and was not consistent with the purpose of the bankruptcy code. Continue reading

Protecting The Home When One Spouse Files Chapter 7: New Residents

I received an inquiry from prospective bankruptcy clients who had moved to Florida from New York just over six months and had purchased jointly a Florida homestead. The wife had substantial unsecured debts and wanted to file Chapter 7 bankruptcy. The couple was concerned that their homestead would not be protected under Florida’s homestead exemption in the wife’s bankruptcy because they had lived in Florida less than two years and could not use Florida exemptions. Continue reading

When Does Failure To Repay Loan Amount to Theft?

When someone borrows money from another person and then is unable, or simply unwilling, to pay back the loan the lender can feel that the borrower stole his money or defrauded him out of money. Can a creditor challenge the Chapter 7 bankruptcy discharge of a personal loan on the basis of theft, fraud, embezzlement, or like theory? I read a recent bankruptcy decision that discussed when non-payment of a loan amounts to a theft or fraud. 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