The Milwaukee-Wisconsin Journal Sentinel’s Cary Spivak reported on the latest ruling cracking down on the “hotbed for bankruptcy petition preparers” that is Milwaukee. Chief Bankruptcy Judge Pamela Pepper cited Jennell McKinley for contempt of court and will be facing possible criminal charges.
McKinley is the fifth preparer to be found in contempt. Bankruptcy court officials argue that some preparers’ filings leave out critical information causing dismissal of the case and leaving the debtor liable.
The bankruptcy filer in the McKinley case, Richard Marek, paid $180 for the assistance in filing bankruptcy which was filled with numerous errors and omissions that led to a “nightmare” of a 341 meeting.
Judge Pepper has ordered McKinley to return the $180 to Marek, plus an additional $500 fine. Even better news for Marek is that a generous local attorney heard about his situation and is handling his case pro bono.
Marriage is really important in bankruptcy and one of the most complicated and confusing areas of bankruptcy practice.
Can one spouse file without the other spouse?
In short, yes. But your spouses income, expenses and property need to be accounted for in the bankruptcy filing. In California we have two different ways to exempt and protect your property (that are supplemented by other state and federal protections). T
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Are African-Americans not getting the “fresh start” they deserve when filing for bankruptcy? According to a new study entitled “Race, Attorney Influence, and Bankruptcy Chapter Choice,” by Jean Braucher of the University of Arizona and Dov Cohen and Robert Lawless, both of the University of Illinois, blacks file Chapter 13 at higher rates than all other races.
The abstract states that “although chapter 13 can offer some legal advantages for persons seeking to protect valuable assets such as a house or automobile, it generally offers less relief and costs more than the primary alternative available to consumers, chapter 7. The chief feature of a chapter 13 bankruptcy case is a plan under which the debtor must devote all of his or her disposable income to creditor repayment over a 3‐ to 5‐year period. Cha
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Judgment debtor is a term of art referring a party against whom a creditor obtained a judgment. I frequently get questions about lawsuits and judgments. Common questions includes:
- What happens if I ignore a lawsuit?
- Can I file for bankruptcy before or after judgment?
- Can I discharge a debt even after judgment has been entered?
- If there is a judgment, can they take my house?
Here is my general short answer.
The longer you wait, the more difficult it will be to fix your problems and the fewer your options will be.
How does the creditor get a Judgment?
First, let’s start with a basic scenario.
You owe Discover $15,000. You fall behind and at some point, Discover (or a debt collector) brings a lawsuit against you. A lawsuit is initiated by filing a summons and complaint with the county court. Y
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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.
The study, presented by Dr. Scott David Ramsey, of the Fred Hutchinson Cancer Center, in Seattle, was conducted in Washington State. It linked the Western District of Washington bankruptcy court records with the National Cancer Institute’s SEER (Surveillance Epidemiology and End Results) for Washington State. The study was published by the Journal of Clinical Oncology and included examining 231,799 cancer cases.
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When a debt collection company or buyer shows up in District Court, they are usually just going by a person’s name, last known address and Social Security number to obtain a judgment against that person.
Reacting to a flood of uncontested debt collection cases, the Maryland high court has just ruled that for all cases filed on or after January 20, 2012, collectors and creditors must produce actual proof that the debtor incurred the debt. It is a national problem that has generated concern among the District Court, the Maryland Commissioner of Financial Regulation and the Office of the Attorney General.
Baltimore’s WBAL Channel 11 news reported on the story stating the new ruling is significant for consumers because the plaintiff often has insufficient reliable documentation and rarely files a notice of intention to defend or appear for trial. Had
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