Category: Bankruptcy Issues

Adversary Proceedings In Chapter 7 Bankruptcies

What are adversary proceedings in bankruptcy cases and how can debtors avoid them?  Most personal no asset Chapter 7 bankruptcy cases are simple and straightforward.  Debtors file a petition with the Massachusetts Bankruptcy Court and get a Trustee Hearing in 30 days.  Generally, all consumer debts are discharged once the client testifies that s/he has made accurate assertions in the Petition and Schedules, and the Trustee is satisfied that they are accurate.

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Bankruptcy in 2013

Massachusetts Bankruptcies were Down in 2012 According to reports, Massachusetts’s consumers filed 18% fewer bankruptcies in 2012; with 19,744 in 2011 and 16,107 in 2012.  For Chapter 7 bankruptcies, there were 14,964 in 2011; in 2012 filings  went down to 11,964.  Chapter 7 personal bankruptcies accounted for about three quarters of the bankruptcies in 2012.

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Massachusetts Homesteads Protect Assets

The Massachusetts Homestead law is an exceptional way for homeowners to protect their primary residence from creditors; we recommend everyone file one.  In bankruptcy, it is a useful tool because it “exempts” equity in the home from the creditors.  The federal bankruptcy laws were amended in 2005 and must be carefully followed in bankruptcy court.  The Massachusetts Homestead Law underwent significant amendments in 2011.  It needs to be carefully followed to get the maximum $500,000 protection; and $1 million for seniors.  This can be particularly important if you end up in a nursing home.  The new law can also apply to folks whose home is owned by a real estate trust.  Furthermore, there are protections for unmarried co-owners under the new Homestead Law. How is it working?

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Massachusetts Bankruptcy and the Unsecured Line of Credit

In a recent case handed down by federal Bankruptcy Court Judge Joan Feeney, a Massachusetts debtor who filed for bankruptcy protection intended to discharge a debt to Liberty Bay Credit Union. This was an unsecured debt. Such debts, in a Chapter 7 personal bankruptcy are generally discharged. In this case, however, a hand written note made by the debtor, relied on by the Credit Union, resulted in non dischargabilty! Here is what happened. Patricia Belforte applied for a loan from the Liberty Bay Credit Union. It was an unsecured loan for $10,000 in 2001; she made payments through 2007 when she applied for an increase by $4,000. The “application” for the additional monies included a hand written note stating that they would be used for “tuition” for her children. There was no requirement that the monies actually be used as a student loan.

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Bankruptcy Fraud: Bankruptcy Trustee Imprisoned for Embezzlement

United States bankruptcy trustees in Massachusetts generally are of the highest integrity. In my 27 years of appearing before US bankruptcy trustees at debtors’ hearings, also called 341 meetings, I have been impressed with their knowledge of the law, their caring nature considering the embarrassing and difficult circumstances of debtors, and their efficiency in moving the multiple cases through the system.

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Bankruptcy with an Eight Figure Salary?

We have previously written about celebrity bankruptcy. Reviewing specific cases may prove illustrative for our Massachusetts bankruptcy clients. For example, basketball superstar Antoine Walker earned in excess of $100 million in his basketball career. Nevertheless, he recently filed for personal bankruptcy protection. Why? How did this happen?

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Bankruptcy Following the 2012 Elections

Massachusetts consumers are facing important elections this November including all congress members, one United States Senator and, of course, the race for the presidency. But how will the result of the elections result in changes for bankruptcy in Massachusetts? Will more Massachusetts residents get a chance for a “fresh start” which the law affords? 

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Massachusetts Bankruptcies are Down

The news about personal bankruptcy in Massachusetts is good. The number of people filing is down. Overall, across the US, the number of bankruptcy filings for the first half of the year was down from 725,000 in 2011 to 627,000 in 2012. This translates to a reduction to 9,188 Massachusetts bankruptcy filings for the first six months. That is a rate of 2.79 per 1,000 residents, verses 3.00 filings per 1,000 residents in 2011 and 3.52 filings in 2010.

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Bankruptcy Over 50 in Massachusetts

The AARP recently published the results of a study on the recent mortgage crisis and how it affected people in their target population: folks over 50. 80% of those people own a home. The study was undertaken with data from 2007 through 2011 and looked at information from across the country. They claim that it was the first study ever to measure the effect of the recent mortgage crisis on people over 50.

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