Bankruptcy Issues Archives - Page 12 of 19 - Burns

Bankruptcy and Cancer

In most bankruptcy cases, at the 341 hearing, the bankruptcy trustee will ask the debtor, “How did you get into this situation?” Our Boston bankruptcy clients are instructed to answer honestly, albeit briefly. The answers vary, of course. In Massachusetts bankruptcies, anecdotal evidence shows that there are not as many medical bankruptcies as reported nationally. However, in a fascinating academic study it was shown that there is a direct correlation between cancer and subsequent personal bankruptcy.

Massachusetts Bankruptcy Court Refuses to Redact Court Transcript

Massachusetts Bankruptcy Court hearings are generally open to the public, Boston bankruptcy lawyers,debtors, creditors and occasionally the media. Transcripts of the proceedings are generally available as well. Some content is generally redacted, or excluded, such as “social security numbers, financial account numbers and minors’ names and birth dates.” In a May 2, 2011 decision by Bankruptcy Judge Henry J. Boroff, the Court was asked to look at the rules for allowing a portion of a public hearing to be redacted from the transcript of the bankruptcy court record.

Massachusetts Bankruptcy News: 13% Consider Bankruptcy

According to a recent survey by Findlaw.com, 13% of all Americans have considered filing personal bankruptcy. The survey found that folks between 35 and 55 are more likely to consider bankruptcy than the 18-34 year old crowd. Only 7% of those over 65 have considered filing for bankruptcy protection. The survey, published May 19, 2011 by Findlaw points out that approximately 1.5 million have filed for bankruptcy in the past year.

Massachusetts Personal Bankruptcy Student Loans Case

Massachusetts personal bankruptcy cases regarding student loans are guided by the strict law that says that there must be “undue hardship.” In a case decided recently, the debtor claimed that her financial condition, which included homelessness and a minimum wage job, qualified her as having an undue hardship. Undue hardship, if found by the Court, will qualify a debtor for a discharge in student loans in a Massachusetts personal bankruptcy. Unfortunately, the case gives us no new guidance; both parties filed motions for summary judgment.

Personal Bankruptcy Higher in Some Black Communities

Black communities in Cook County, Chicago, have a higher personal bankruptcy filing rate than white communities. It’s even worse for women. A fascinating and extensive report published this month by the Woodstock Institute finds that in the period studied, 2006 to 2010, the rate of personal bankruptcies filed in predominantly African American communities was 5.2% versus 1.8% in predominantly white communities. Of further interest is that the rate for Chapter 13, or reorganization bankruptcies, was much higher for black communities, 32.8% of personal bankruptcies, than the 24% in white communities. Further, the personal bankruptcy rate for women overall was higher – 2.6% versus 2% for men; the rate for African American women was 5.1%, with the rate for white women at 1.2%. The overall increase in personal bankruptcies in Cook County was over 139% in those years.

Boston Bankruptcy Lawyer Visits Northern Ireland

In the context of our international personal bankruptcy tour, the Boston Bankruptcy Lawyer blog reports on news from Ireland. Apparently in Northern Ireland, there are record personal bankruptcies; the numbers was up 19% in 2010, from the prior year, and, in the first quarter of 2011, the numbers are up for the first one third of 2011 from 554 in 2010 to 692 in 2011. Of particular concern there is the fact that budget cuts because of the struggling economy will have the strongest hit on those on the brink of bankruptcy. As you can imagine, unemployment is also up in Northern Ireland. According to reports, there is no longer as much of a stigma about someone who filed for debt relief.

Boston Bankruptcy; Discharging Gambling Debts

Boston bankruptcy lawyers must counsel clients regarding what to do when income and assets are insufficient to cover debts. However, we rarely get a case like the one in Grand Rapids, Michigan, where a bank teller concocted an “elaborate scheme” to bilk a bank out of $578,836 in seven years. The money? It went to luxuries for her family and to gambling, including $134,000 to two casinos in 2009! There was a criminal case and following a guilty plea, the teller was ordered to pay restitution. On the other hand, the typical Boston bankruptcy case may involve a client who took a cash withdrawal and lost some money at Foxwoods.

Revere Bankruptcy Attorney Antics

A Revere bankruptcy attorney has been charged by the Massachusetts Attorney General with targeting low and moderate income Latino homeowners with unfair loan modification schemes. The Revere attorney was apparently preying on folks that need Massachusetts mortgage loan modifications. Attorney David Zac is being accused of taking money based on false promises. In Massachusetts, where 12,000 homes when into foreclosure last year, there are lots of scams going on, according to the Attorney General. Apparently, the Attorney General is claiming that Mr. Zac is in violation of a 2007 regulation that forbids anyone from profiting from “foreclosure-related services,” and the Attorney General, and various non profit agencies, are calling Mr. Zac’s advertisements and his fees into question. One of the allegations is that the attorney would advise clients to stop paying the mortgage to “get their attention” and then negotiate from there. The “legal fee” was a multiple of the monthly mortgage payment. Folks were handing over their tax refunds and borrowing money to pay the “fee.” Perhaps it worked sometimes. However, when it didn’t work, he would ask for more money for a personal bankruptcy.

Maximum Earnings for Personal Bankruptcies in Massachusetts

According to the 2005 federal bankruptcy law, consumers filing for bankruptcy in Massachusetts need to qualify, based in income. The law makes it more difficult to file for personal bankruptcy in Massachusetts. Massachusetts debtors may qualify by having an income below medium family income which set the bankruptcy guidelines, which are as follows: for a one-person household, $54,161; for a two-person household, a family income of $67,142; a three person family, $82,385; and a four person household, $100,482.

Student Loans and Massachusetts Bankruptcy

Bottom line: it is very hard to discharge student loans in Massachusetts bankruptcy. The law requires that you affirmatively prove an “undue hardship” and it’s hard to prove unless you are permanently disabled. The following is an outline of what steps you can undertake, however. We have previously written about a financial education and this article is an overview of what to do to get started. Note that student loans may not be dischargeable in bankruptcy in Massachusetts, but you can still file for bankruptcy protection and get a fresh start by getting rid of all your credit card debt.

Boston Bankruptcy Lawyer Blog

Category: Bankruptcy Issues