It’s not new but it’s getting to be a new problem for folks who cant afford medical procedures: credit provided by medical credit cards and lines of credit for folks who may, or may not, have medical or dental insurance. So what is this medical credit card? And is it dischargeable in bankruptcy?
Read MoreMassachusetts Senator Elizabeth Warren has filed a bill in the United States Senate that would allow debtors in Bankruptcy Court to include student loans in their bankruptcy petitions. Senator Warren, along with Illinois Senator Dick Durbin, filed the legislation because they feel that the Bankruptcy Act of 2005 should be amended to allow student loans to qualify for discharge when debtors get a fresh start from a bankruptcy discharge.
Read MoreAs readers of our blog and know, we strongly encourage folks to fully disclose their assets as well as their liabilities to their attorney. Bankruptcy planning means working with the lawyer to decide how to deal with each asset and each liability. Most cases are clear, and can even be easy. It didn’t work that way in Madison, Wisconsin this past week.
Read MoreFor many specific reasons, many folks filing for bankruptcy in Massachusetts choose to file personal bankruptcy using the Massachusetts, rather than the federal, bankruptcy exemptions. Usually this is because they have significant equity in their home and the Massachusetts Homestead gives residents who own their own home, up to $500,000 in exempt equity in their home, and possibly more.
Read MoreIn June the United States Supreme Court struck down the federal law commonly known as the Defense of Marriage Act (DOMA) in US v. Windsor. The ramifications of that court decision are widespread. In the bankruptcy field, the ruling seems clear. If you are married under Massachusetts state law you now can file bankruptcy jointly in federal Bankruptcy Court.
Read MoreDoes it make sense to draw monies from a closed home equity account and then file bankruptcy to try to discharge the debt? Of course not. Readers of our blog and clients who have filed bankruptcy in Boston know that anything and everything on the bankruptcy petition and schedules must be honest and that any debt you attempt to discharge must have been a legitimate debt at the time you made it.
Read MoreBankruptcy Trustees are court appointed temporary trustees of the bankruptcy estate in each personal bankruptcy case filed. Their job is to represent the creditors. If all of the assets are exempt, the trustee’s job is to certify this to the Bankruptcy Court and move on to the next case. Many times there is an asset worth exploring – investment real estate that may have some equity, and, believe it or not, a lawsuit, or claim that could be brought on behalf of the debtor. Such claims may be quite valuable.
Read MoreNow that the housing market is starting to recover, more and more folks have some equity in their homes. Nevertheless they still may need to file for bankruptcy protection because they can’t pay all their bills. Many folks have managed to pay their mortgages, especially if they were lucky enough to refinance with lower interest rates, yet creditors are hounding folks that owe monies on credit cards, medical bills, personal loans, and utility bills.
Read MoreAs our readers know, the 2005 amendments to the Bankruptcy law made it more difficult to file for personal bankruptcy. A “means test” was added to make it more difficult for moderate-income folks to file. Young people with federally subsidized student loans were not given any relief. Federal taxes are dischargeable in many instances. There are many instances in which SBA loans can be discharged too. So what is the logic?
Read MoreThe federal bankruptcy laws allow for exemptions to discharge. Even for folks who have no assets, some debts are just not dischargeable. The exemption to discharge that is getting a lot of scholarly (and media) attention lately is student loans. They are hard to discharge. Alimony and monies owed pursuant to spousal or child support are not dischargeable in bankruptcy. Monies secured by fraud and fraudulent activity are not dischargeable. Judgments owed to victims of alcohol related personal injury or death cases are not dischargeable.
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