Presenters at a Federal Reserve Bank of Philadelphia conference held on Sept. 25 unveiled studies examining such issues as the current mortgage crisis, payday lending, identity theft and global retail lending. Leading economists and scholars at the conference, titled “Recent Developments in Consumer Credit and Payments,” presented studies on each of the subject areas, in which mortgage lending and the current mortgage crisis dominated the discussions. Here is a summary of the presentations:
• In her forthcoming study, “Did Bankruptcy Reform Contribute to the Mortgage Crisis?,” Michelle J. White of the University of California, San Diego argued that the reforms and filing expenses brought about by BAPCPA, especially the homestead exemption cap for homeowners who purchased their homes within 1,215 days prior to filing, helped exacerbate the mortgage downturn. Examining defaults prior to and after the implementation of BAPCPA, White's study found that mortgage defaults for both prime and subprime mortgages increased after the reforms were implemented. The completed study is forthcoming later this year.
• Tomasz Piskorski of Columbia University in his study, “Securitization and Distressed Loan Renegotiation: Evidence from the Subprime Mortgage Crisis,” concluded that delinquent mortgage loans are foreclosed at a higher rate if they are securitized as compared to loans that are held directly by bank lenders. Piskorski's study found that the bias toward foreclosure of securitized loans is due in large part to coordination, incentive and legal constraints involved in the servicing of securitized loans. Click here to read the study.
• After analyzing data from a major national mortgage bank containing loan-origination information from 2004-08, Ashlyn Nelson of Indiana University found that brokered mortgage loans were more than 50 percent more likely to be delinquent than bank-originated loans. The study, “Liar's Loan? Effects of Origination Channel and Information Falsification on Mortgage Delinquency,” found that differences in delinquencies between brokered and bank-originated loans could be largely attributable to lower borrower/loan quality and that borrower information falsification was high among brokered low-doc loans.
• Adair Morse of the University of Chicago concluded in her preliminary study, “Information Disclosure, Cognitive Biases, and Payday Borrowing,” that disclosing additional information, such as the full cost of a payday loan, at the time the loan is being made would help reduce the amount and risk of payday borrowing.
• Simon Gervais of Duke University concluded in his study, “Legal Protection in Retail Financial Markets,” that protecting consumers in financial markets who are “unable to fend for themselves” is not only an important duty of the law, but also an important driver of participation in the market and economic growth.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Wednesday, September 30, 2009
TARP Money
The effects of the government’s $700 billion bailout of the financial industry may last for years, even as lawmakers push to end the controversial program before 2010, The Hill reported. The debate over the program’s future comes a year after lawmakers were spurred into action to pass the bailout package, known officially as the Troubled Asset Relief Program (TARP). Some of the significant portions of the TARP program that may continue for years include:
• The Obama administration’s effort to support the housing market with incentives to firms that modify loans is still getting started. The program relies on $50 billion in money under the TARP program. The administration has set a goal for firms to modify 500,000 loans by Nov. 1, but the terms of the program show that modifications will continue for five years.
• More than 600 banks continue to rely on the capital purchase program that put equity into the firms. TARP provides incentives for banks to repay the money early, but the Obama administration’s latest budget documents predict a $10 billion debt in TARP equity accounts in 2016.
• The Term Asset-Backed Securities Loan Facility (TALF), a program run jointly by the Federal Reserve and Treasury to support credit markets, has already been extended into the first half of 2010. The TALF program relies in part on TARP money.
• The Fed and Treasury committed more than $180 billion to support the crippled insurance firm AIG. The company is attempting to restructure, but it has yet to repay roughly $45 billion of the TARP money. The Government Accountability Office (GAO) said that the company’s ability to repay is “unclear at this time."
Thirty-nine Republican senators and Sen. Mark Begich (D-Alaska) wrote to the Treasury Department to let the TARP program expire this year and use the repaid money to reduce the national debt. Meanwhile, Sens. Mark Warner (D-Va.) and Bob Corker (R-Tenn.) have sponsored legislation that would shift the government’s investments in a private company, if they exceed 20 percent of the firm, to an independent trust. The bill would apply to AIG, General Motors and Citigroup.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
• The Obama administration’s effort to support the housing market with incentives to firms that modify loans is still getting started. The program relies on $50 billion in money under the TARP program. The administration has set a goal for firms to modify 500,000 loans by Nov. 1, but the terms of the program show that modifications will continue for five years.
• More than 600 banks continue to rely on the capital purchase program that put equity into the firms. TARP provides incentives for banks to repay the money early, but the Obama administration’s latest budget documents predict a $10 billion debt in TARP equity accounts in 2016.
• The Term Asset-Backed Securities Loan Facility (TALF), a program run jointly by the Federal Reserve and Treasury to support credit markets, has already been extended into the first half of 2010. The TALF program relies in part on TARP money.
• The Fed and Treasury committed more than $180 billion to support the crippled insurance firm AIG. The company is attempting to restructure, but it has yet to repay roughly $45 billion of the TARP money. The Government Accountability Office (GAO) said that the company’s ability to repay is “unclear at this time."
Thirty-nine Republican senators and Sen. Mark Begich (D-Alaska) wrote to the Treasury Department to let the TARP program expire this year and use the repaid money to reduce the national debt. Meanwhile, Sens. Mark Warner (D-Va.) and Bob Corker (R-Tenn.) have sponsored legislation that would shift the government’s investments in a private company, if they exceed 20 percent of the firm, to an independent trust. The bill would apply to AIG, General Motors and Citigroup.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Homeowners Seek Stay Relief from WL Homes to Pursue Insurance
Another group of Nevada homeowners is asking a federal bankruptcy judge for permission to pursue a lawsuit against bankrupt homebuilder WL Homes LLC for constructing defective houses, Bankruptcy Law360 reported. Robert Bransky and several dozen owners of homes in WL Homes' Whisper Creek and Four Winds subdivisions filed a motion for relief from the automatic stay in bankruptcy court on September 28, 2009 in the US Bankruptcy Court of Delaware, saying the company's insurer, American International Group Inc., would be liable for any damages arising from their suit. The homeowners told the court they would collect any judgment from the insurance company and waived their rights to recover any settlement from WL Homes. The original lawsuit was filed in state court December 31st, several months before WL Homes declared bankruptcy in April.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Tuesday, September 29, 2009
Bankruptcy and the Chicago Cubs
US Bankruptcy Judge Kevin Carey approved the Tribune Company's proposed sale of the Chicago Cubs, a baseball franchise valued at $845 million, the Chicago Tribune reported recently. The move marks the first of two bankruptcy court approvals needed before the deal could officially close and the money flow to an escrow account for Tribune's creditors. No objections to the pending sale were brought to court. Tribune and Ricketts officials expect that a quick in-and-out trip to court for the Cubs will bring an end to a deal.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Justice Ginsburg's Health
Justice Ginsburg of the US Supreme Court was released from the hospital recently and is returning to work. The Supreme Court's public information department released a statement that stated Justice Ginsburg was released from Washington Hospital Center and plans on returning to work. Ginsburg had been hospitalized feeling faint. She is 76-years old.
The Supreme Court will be considering one or more bankruptcy cases in the upcoming term. Justice Ginsburg's vote could alter the opinion of the court and have a major impact on the practice of bankruptcy law. One big bankruptcy issue before the court relates to whether bankruptcy attorneys are "debt relief agencies" within the meaning of the US Bankruptcy Code. The second big bankruptcy issue relates to the dischargeability of student loans in bankruptcy.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
The Supreme Court will be considering one or more bankruptcy cases in the upcoming term. Justice Ginsburg's vote could alter the opinion of the court and have a major impact on the practice of bankruptcy law. One big bankruptcy issue before the court relates to whether bankruptcy attorneys are "debt relief agencies" within the meaning of the US Bankruptcy Code. The second big bankruptcy issue relates to the dischargeability of student loans in bankruptcy.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Monday, September 21, 2009
1 Million Bankruptcy Cases filed in 2008
Consumer bankruptcy cases topped 1 million during 2008, totalling 1,074,225 new cases. The Seventh Circuit reported a total of 113,825 new cases. The Northern District of Illinois and the Southern District of Indiana topped the list within the Seventh Circuit.
Just shy of 40,000 new cases were filed in the Northern District of Illinois. Of these, 27,616 cases were chapter 7 cases and 12,324 were chapter 13 cases.
The most cases were filed in the 9th Circuit (AZ, CA, NV, WA) with 206,922 cases. The 6th Circuit (Ky, MI, OH, TN) was next busiest with 178,008 cases. The 11th Circuit (AL, FL, GA) was third with 152,034 cases. Source: Consumer Bankruptcy News 3/26/09
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Just shy of 40,000 new cases were filed in the Northern District of Illinois. Of these, 27,616 cases were chapter 7 cases and 12,324 were chapter 13 cases.
The most cases were filed in the 9th Circuit (AZ, CA, NV, WA) with 206,922 cases. The 6th Circuit (Ky, MI, OH, TN) was next busiest with 178,008 cases. The 11th Circuit (AL, FL, GA) was third with 152,034 cases. Source: Consumer Bankruptcy News 3/26/09
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Different Bankruptcy Chapters
The current bankruptcy laws, enacted by Congress in 1978, are known as the US Bankruptcy Code. The Code is set forth in Title 11 of the US Code. It consists of nine chapters: 1, 3, 5, 7, 9, 11, 12, 13 and 15. Chapters 1, 3 and 5 are of general applicability. Chapters 7, 9, 11, 12, 13 and 15 each deal with a particular type of bankruptcy proceeding. The Code refers to the financially troubled person or entity in need of bankruptcy assistance as the "debtor."
Debtors file bankruptcy for a variety of reasons, including divorce, job loss and health problems. A debtor need not be insolvent to file for bankruptcy. Debtors are entitled to a respite from most collection activities upon filing bankruptcy, pursuant to various stay provisions called the "Automatic Stay." By filing for bankruptcy, debtors may obtain a discharge of personal liability from many debts and may be able to restructure others.
There are two basic types of bankruptcy proceedings: liquidations and reorganizations. In liquidations, governed by chapter 7, the debtor's nonexempt pre-filing assets are sold for the benefit of creditors. In exchange for surrendering these assets, the debtor generally obtains a discharge of personal liability for prebankruptcy debts and may enjoy assets acquired after the filing.
Chapters 11, 12 and 13 involve various types of reorganization or payment plans. In bankruptcy reorganizations, the debtor's assets are not sold, unless otherwise provided for in the plan. Indeed, many debtors choose reoganizations in order to keep pre-bankruptcy assets. Individual debtors, for instance, often file chapter 13 cases in order to save their homes from foreclosure. Reorganization bankruptcies allow debtors the opportunity to restructure debts and to pay them, possibly in part and not in full, through a plan funded by post-filing income. A debtor in a reorganization bankruptcy may obtain a discharge of most pre-confirmation debts that are provided for, but not paid in full, in the plan. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Debtors file bankruptcy for a variety of reasons, including divorce, job loss and health problems. A debtor need not be insolvent to file for bankruptcy. Debtors are entitled to a respite from most collection activities upon filing bankruptcy, pursuant to various stay provisions called the "Automatic Stay." By filing for bankruptcy, debtors may obtain a discharge of personal liability from many debts and may be able to restructure others.
There are two basic types of bankruptcy proceedings: liquidations and reorganizations. In liquidations, governed by chapter 7, the debtor's nonexempt pre-filing assets are sold for the benefit of creditors. In exchange for surrendering these assets, the debtor generally obtains a discharge of personal liability for prebankruptcy debts and may enjoy assets acquired after the filing.
Chapters 11, 12 and 13 involve various types of reorganization or payment plans. In bankruptcy reorganizations, the debtor's assets are not sold, unless otherwise provided for in the plan. Indeed, many debtors choose reoganizations in order to keep pre-bankruptcy assets. Individual debtors, for instance, often file chapter 13 cases in order to save their homes from foreclosure. Reorganization bankruptcies allow debtors the opportunity to restructure debts and to pay them, possibly in part and not in full, through a plan funded by post-filing income. A debtor in a reorganization bankruptcy may obtain a discharge of most pre-confirmation debts that are provided for, but not paid in full, in the plan. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Chapter 7 Liquidation
A voluntary chapter 7 bankruptcy proceeding is typically initiated by the debtor. An involuntary chapter 7 bankruptcy may be filed by the debtor's creditors under certain circumstances.
In a typical chapter 7 case, a bankruptcy trustee is appointed. One of the chief duties of the trustee is to liquidate a debtor's nonexempt assets and distribute the proceeds to creditors. In exchange for surrendering these assets, an individual debtor ordinarily receives a discharge from personal liability for most pre-bankruptcy debt. Plus an individual debtor typically keeps assets acquired after the filing for use in his or her "fresh start." Thus, an individual debtor's prior economic life essentially ends with the filing of the chapter 7 bankruptcy. A second financial life begins. Obtaining a bankruptcy discharge is usually an individual's primary incentive for filing a voluntary chapter 7 case. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
In a typical chapter 7 case, a bankruptcy trustee is appointed. One of the chief duties of the trustee is to liquidate a debtor's nonexempt assets and distribute the proceeds to creditors. In exchange for surrendering these assets, an individual debtor ordinarily receives a discharge from personal liability for most pre-bankruptcy debt. Plus an individual debtor typically keeps assets acquired after the filing for use in his or her "fresh start." Thus, an individual debtor's prior economic life essentially ends with the filing of the chapter 7 bankruptcy. A second financial life begins. Obtaining a bankruptcy discharge is usually an individual's primary incentive for filing a voluntary chapter 7 case. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Chapter 13 Reorganization
Chapter 13 bankruptcy case is a reorganization proceeding available to individuals with regular income whose debtors are less than proscribed debt limits (secured and unsecured). In chapter 13 cases, the debtor's assets are not liquidated. Instead, the debtor pays his debts, in whole or in part, through a plan that must be confirmed by the court in accordance with specific statutory criteria.
A debtor is chapter 13 remains in control of his or her assets. A trustee, however, is appointed. The debtor pays the trustee, who makes payments to creditors pursuant to the repayment plan confirmed by the bankruptcy judge. Debtors would obtain a discharge of personal liability from most debts. The chapter 13 discharge is typically available only after the debtor has made all of the payments specified in the plan. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
A debtor is chapter 13 remains in control of his or her assets. A trustee, however, is appointed. The debtor pays the trustee, who makes payments to creditors pursuant to the repayment plan confirmed by the bankruptcy judge. Debtors would obtain a discharge of personal liability from most debts. The chapter 13 discharge is typically available only after the debtor has made all of the payments specified in the plan. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Bankruptcy Basics
The bankruptcy provisions that state courts most often confront involve automatic and non-automatic stays and dischargeability of debts. To understand these provisions, one must first learn three bankruptcy concepts: (a) property of the estate; (b) property of the debtor; and (c) claims.
"Property of the estate" describes the assets in a bankruptcy proceeding that are to be used to satisfy pre-filing or pre-confirmation debts and the costs of the bankruptcy proceeding. But for the bankruptcy filing, these assets would have belonged to the debtor.
In a chapter 7 case, property of the estate is defined by US Bankruptcy Code Section 541 as "all legal and equitable interests of the debtor in property as of the commencement of the case." Some assets, although initially characterized as property of the estate, later exit this category when they are exempted by the debtor, abandoned by the trustee as burdensome or inconvenient, redeemed by the debtor, or sold by the trustee. In chapter 7, Section 541 excludes from property of the estate all of an individual debtor's earnings from post-petition services.
The Section 541 definition of property of the estate applies to chapter 13 cases too. However, individual debtors are expected to fund their repayment plans with post-petition income. Consequently, chapter 13 expands the definition of property of the estate.
The next concept is "property of the debtor." Property of the debtor includes all of the property owned by the debtor before the bankruptcy filing or acquired by the debtor after the filing that is statutorily excluded from property of the estate. In addition, property of the debtor includes all property exempted or redeemed by the debtor as well as property abandoned by the trustee to the debtor.
The final concept is a bankruptcy "claim." A claim is a creditor's right to payment, whether or not the right is reduced to judgment, unsecured, unliquidated, unmatured, contingent or disputed. Even a right to equitable relief for breach of a "performance" may be a claim, if a right to payment is an alternative remedy for the breach of performance giving rise to the right to equitable relief. This very broad definition of "claim" allows a debtor to discharge debts that many people would not even consider debts yet. Thus, this broad definition of a "claim" benefits the debtor. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
"Property of the estate" describes the assets in a bankruptcy proceeding that are to be used to satisfy pre-filing or pre-confirmation debts and the costs of the bankruptcy proceeding. But for the bankruptcy filing, these assets would have belonged to the debtor.
In a chapter 7 case, property of the estate is defined by US Bankruptcy Code Section 541 as "all legal and equitable interests of the debtor in property as of the commencement of the case." Some assets, although initially characterized as property of the estate, later exit this category when they are exempted by the debtor, abandoned by the trustee as burdensome or inconvenient, redeemed by the debtor, or sold by the trustee. In chapter 7, Section 541 excludes from property of the estate all of an individual debtor's earnings from post-petition services.
The Section 541 definition of property of the estate applies to chapter 13 cases too. However, individual debtors are expected to fund their repayment plans with post-petition income. Consequently, chapter 13 expands the definition of property of the estate.
The next concept is "property of the debtor." Property of the debtor includes all of the property owned by the debtor before the bankruptcy filing or acquired by the debtor after the filing that is statutorily excluded from property of the estate. In addition, property of the debtor includes all property exempted or redeemed by the debtor as well as property abandoned by the trustee to the debtor.
The final concept is a bankruptcy "claim." A claim is a creditor's right to payment, whether or not the right is reduced to judgment, unsecured, unliquidated, unmatured, contingent or disputed. Even a right to equitable relief for breach of a "performance" may be a claim, if a right to payment is an alternative remedy for the breach of performance giving rise to the right to equitable relief. This very broad definition of "claim" allows a debtor to discharge debts that many people would not even consider debts yet. Thus, this broad definition of a "claim" benefits the debtor. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Bankruptcy Court System Structure
The US Constitution grants Congress the exclusive power to create laws regulating bankruptcy. See Article I, Section 8 of the US Constitution. Major bankruptcy statutes were enacted in 1800, 1841, 1867, 1898 and 1978. The statute passed in 1978 was a major revision and has been further amended from time to time, most recently in 2005. The bankruptcy laws are codified at 11 USC Section 101 et seq., and are commonly referred to as the “Code”.
Congress vested all jurisdiction over bankruptcy matters in the US district courts. The district courts have exclusive original jurisdiction over a bankruptcy case itself and original, but nonexclusive, jurisdiction over civil proceedings arising in, arising under or relating to a bankruptcy case.
Federal district courts could abstain and allow state courts to proceed in civil matters where comity or the interest of justice indicates that a state court should hear the matter. Section 1334 of Title 28, US Code, also mandates abstention upon timely motion by a part (a) where the federal courts, absent bankruptcy, would lack jurisdiction over the proceeding, and (b) the proceeding is either (i) pending in a state court at the time the motion is filed, or (ii) the proceedings arises under state law and can be timely adjudicated in state court.
Federal district courts are authorized to refer bankruptcy matters, with limited exceptions, to bankruptcy courts, which operate as a unit of the district court. Bankruptcy judges are appointed for 14-year terms by the US Court of Appeal for the circuit in which they are located. Thus, there are some limits as to the proceedings that may be held before bankruptcy courts, the matters on which bankruptcy courts may issue final or appealable orders, and which bankruptcy courts must make recommendations to district courts subject to de novo review. Bankruptcy courts may enter final, binding orders as to “core proceedings” and must prepare findings of fact and conclusions of law for de novo review by district courts in “related proceedings.”
All district courts have standing orders of reference under which all bankruptcy cases are initially referred to the bankruptcy courts. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Congress vested all jurisdiction over bankruptcy matters in the US district courts. The district courts have exclusive original jurisdiction over a bankruptcy case itself and original, but nonexclusive, jurisdiction over civil proceedings arising in, arising under or relating to a bankruptcy case.
Federal district courts could abstain and allow state courts to proceed in civil matters where comity or the interest of justice indicates that a state court should hear the matter. Section 1334 of Title 28, US Code, also mandates abstention upon timely motion by a part (a) where the federal courts, absent bankruptcy, would lack jurisdiction over the proceeding, and (b) the proceeding is either (i) pending in a state court at the time the motion is filed, or (ii) the proceedings arises under state law and can be timely adjudicated in state court.
Federal district courts are authorized to refer bankruptcy matters, with limited exceptions, to bankruptcy courts, which operate as a unit of the district court. Bankruptcy judges are appointed for 14-year terms by the US Court of Appeal for the circuit in which they are located. Thus, there are some limits as to the proceedings that may be held before bankruptcy courts, the matters on which bankruptcy courts may issue final or appealable orders, and which bankruptcy courts must make recommendations to district courts subject to de novo review. Bankruptcy courts may enter final, binding orders as to “core proceedings” and must prepare findings of fact and conclusions of law for de novo review by district courts in “related proceedings.”
All district courts have standing orders of reference under which all bankruptcy cases are initially referred to the bankruptcy courts. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Automatic Stay and Injunction
The Bankruptcy Code provides certain limitations on creditors attempting to collect prepetition debts after a bankruptcy case is filed. The two most significant limitations relate to the “automatic stay” and the “discharge injunction.” Bankruptcy’s stay and injunction provisions affect state proceedings far more often than most any other sections of the Code. Extensive changes were made to the bankruptcy stays by the 2005 amendments.
In a nutshell, bankruptcy stays generally prohibit creditors from attempting to collect prepetition debts while the bankruptcy case is pending. On the other hand, a bankruptcy discharge injunction generally prohibits creditors from attempting to collect prepetition debts after the bankruptcy case is closed. Sanctions and fees are statutorily provided for and could be awarded against the intentional or unintentional creditor who violates the Code provisions.
Bankruptcy stays principally arise out of Section 362, 1301, and 524. Section 362 applies to all bankruptcy cases and provides for a comprehensive stay to arise immediately and automatically upon the filing of any bankruptcy petition. Unlike a state court TRO or injunction motion, the Bankruptcy Code does not require either a motion or hearing; the injunction is automatic and immediate.
The 2005 amendments carve out a narrow exception to the general rule that an automatic stay arises upon the filing of a bankruptcy petition. This exception applies to debtors who have had two or more cases dismissed within the year before the petition is filed. In such cases, no stay arises automatically when yet another petition is filed.
Section 1301 also involves an automatic stay, but only applies to chapter 13 cases. Such a stay would only protect individuals who, although not co-debtors, are co-obligors with the debtor with respect to consumer debt.
Section 524 provides that the grant of a bankruptcy discharge operates as an injunction against the commencement or continuation of an action, the employment of process, or an act to collect, recover or offset any discharged debt as a personal liability of a debtor. Although the Section 524 injunctions arise automatically, they do not arise on the filing date of the petition, but only if and when the court grants the debtor a discharge. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
In a nutshell, bankruptcy stays generally prohibit creditors from attempting to collect prepetition debts while the bankruptcy case is pending. On the other hand, a bankruptcy discharge injunction generally prohibits creditors from attempting to collect prepetition debts after the bankruptcy case is closed. Sanctions and fees are statutorily provided for and could be awarded against the intentional or unintentional creditor who violates the Code provisions.
Bankruptcy stays principally arise out of Section 362, 1301, and 524. Section 362 applies to all bankruptcy cases and provides for a comprehensive stay to arise immediately and automatically upon the filing of any bankruptcy petition. Unlike a state court TRO or injunction motion, the Bankruptcy Code does not require either a motion or hearing; the injunction is automatic and immediate.
The 2005 amendments carve out a narrow exception to the general rule that an automatic stay arises upon the filing of a bankruptcy petition. This exception applies to debtors who have had two or more cases dismissed within the year before the petition is filed. In such cases, no stay arises automatically when yet another petition is filed.
Section 1301 also involves an automatic stay, but only applies to chapter 13 cases. Such a stay would only protect individuals who, although not co-debtors, are co-obligors with the debtor with respect to consumer debt.
Section 524 provides that the grant of a bankruptcy discharge operates as an injunction against the commencement or continuation of an action, the employment of process, or an act to collect, recover or offset any discharged debt as a personal liability of a debtor. Although the Section 524 injunctions arise automatically, they do not arise on the filing date of the petition, but only if and when the court grants the debtor a discharge. Source: American Bankruptcy Institute.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
DISCHARGING DEBTS IN CHAPTER 7
The bankruptcy discharge is a court order granting a debtor a discharge from prepetition debts owed to most creditors. The discharge prohibits any attempt to collect from the debtor a debt that has been discharged. For example, a creditor is not permitted generally to contact a debtor by mail, phone or otherwise, to file or continue a lawsuit, to attach wages or other property, or to take any other action to collect a discharged debt from the debtor. A creditor who violates this order can be required to pay damages and attorney’s fees to debtor.
However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor’s property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged.
The chapter 7 discharge order eliminates a debtor’s legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. If a case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, then the discharge applies to debts owed when the bankruptcy case was converted.
Some of the common types of debts which are NOT discharged in a chapter 7 bankruptcy case are: debts for most taxes; debts incurred to pay nondischargeable taxes; debts that are domestic support obligations; debts for most student loans; debts for most fines, penalties, forfeitures, or criminal restitution obligations; debtors for personal injuries or death caused by a debtor’s operation of a motor vehicle while intoxicated; some debts not properly listed by a debtor; debts that a bankruptcy court specifically has decided are not discharged; debts for which debtor has given up the discharge protections by signing a reaffirmation agreement; and debts owed to certain pension, profit sharing, stock bonus, and other retirement plans. Source: Official Form 18J.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
However, a creditor may have the right to enforce a valid lien, such as a mortgage or security interest, against the debtor’s property after the bankruptcy, if that lien was not avoided or eliminated in the bankruptcy case. Also, a debtor may voluntarily pay any debt that has been discharged.
The chapter 7 discharge order eliminates a debtor’s legal obligation to pay a debt that is discharged. Most, but not all, types of debts are discharged if the debt existed on the date the bankruptcy case was filed. If a case was begun under a different chapter of the Bankruptcy Code and converted to chapter 7, then the discharge applies to debts owed when the bankruptcy case was converted.
Some of the common types of debts which are NOT discharged in a chapter 7 bankruptcy case are: debts for most taxes; debts incurred to pay nondischargeable taxes; debts that are domestic support obligations; debts for most student loans; debts for most fines, penalties, forfeitures, or criminal restitution obligations; debtors for personal injuries or death caused by a debtor’s operation of a motor vehicle while intoxicated; some debts not properly listed by a debtor; debts that a bankruptcy court specifically has decided are not discharged; debts for which debtor has given up the discharge protections by signing a reaffirmation agreement; and debts owed to certain pension, profit sharing, stock bonus, and other retirement plans. Source: Official Form 18J.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Automatic Stay
An understanding of the US Bankruptcy Code’s “automatic stay” provisions is essential to understanding how bankruptcy law can help you. You should study when it applies and when it does not. Bankruptcy stays principally arise out of Sections 362, 1301, and 105. The mere filing of a chapter 7 case automatically triggers the Section 362 stay; whereas the filing of a chapter 13 case automatically triggers both the Sections 362 and 1301 stays. The Section 105 stay is imposed only after a motion and hearing---similarly to an injunction motion.
The automatic stay prohibits the commencement or continuation of judicial proceedings that were or could have been commenced prior to the bankruptcy case filing, with some exceptions. These exceptions should be discussed in future writings. The stay also prohibits creditors from non-judicial attempts to collect non-exempt debts owed prepetition, including attempts via phone, fax, email, letter, etc.
Creditors need to proceed with great caution, as if treading carefully on a mine field. On one hand, unintentional violation of the stay may needlessly wastes the court’s and litigants’ time and treasury. An action that violates Section 362 is either void or voidable; consequently, the results of a protracted proceeding may be a nullity or may be nullified. On the other hand, an intentional violation of the automatic stay may result in the above plus sanctions, including damages, costs, attorney fees, and even punitive damages for egregious conduct. The sanction could even be assessed against the attorney!
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
The automatic stay prohibits the commencement or continuation of judicial proceedings that were or could have been commenced prior to the bankruptcy case filing, with some exceptions. These exceptions should be discussed in future writings. The stay also prohibits creditors from non-judicial attempts to collect non-exempt debts owed prepetition, including attempts via phone, fax, email, letter, etc.
Creditors need to proceed with great caution, as if treading carefully on a mine field. On one hand, unintentional violation of the stay may needlessly wastes the court’s and litigants’ time and treasury. An action that violates Section 362 is either void or voidable; consequently, the results of a protracted proceeding may be a nullity or may be nullified. On the other hand, an intentional violation of the automatic stay may result in the above plus sanctions, including damages, costs, attorney fees, and even punitive damages for egregious conduct. The sanction could even be assessed against the attorney!
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Invitation to Readers
Welcome to my blog! I am attorney Robert Schaller and I have designed this blog to communicate general bankruptcy information to family you. This blog supplements additional information provided at Schaller Law Firm.
You can find three types of assistance with this blog. First, you can SUBSCRIBE to this blog by completing the box to the right of this post. By doing so, you will be receiving automatically interesting and timely bankruptcy information in each of my future blog postings. Second, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Third, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
I look forward to a mutually beneficial relationship with you.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
You can find three types of assistance with this blog. First, you can SUBSCRIBE to this blog by completing the box to the right of this post. By doing so, you will be receiving automatically interesting and timely bankruptcy information in each of my future blog postings. Second, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Third, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
I look forward to a mutually beneficial relationship with you.
Warmest Regards,
Bob Schaller
Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm
Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.
I encourage you to SUBSCRIBE to this blog by completing the box to the right of this post so you will automatically receive future blog postings. Next, you can review past and future blogs at any time by clicking the "archive" link in the column to the right of this posting. Plus, you are invited to submit a question by utilizing the "question" box in the column to the right of this posting.
For information about Chapter 7 bankruptcy Click Here
For information about Chapter 13 bankruptcy Click Here
You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at http://www.schallerlawfirm.com/to learn about how the bankruptcy laws can help you.
NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer.
I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; and bankruptcy and student loan issues blog.
Subscribe to:
Posts (Atom)
Posts
