Avoid Personal Bankruptcy

In a case handed down by the First Circuit Court of Appeals earlier this month, the Court stated that a bankruptcy debtor who was denied a discharge was valid because the debtor “intentionally and fraudulently omitted” and undervalued assets from his Massachusetts bankruptcy petition. The case, called In Re: Sullivan, Brian J., and published by Judge Votolato, was appealed from a decision by Bankruptcy Judge Feeney.

The assets were as follows:

A Rolex watch, which the debtor wore to the 341 Creditors Hearing, was not listed in the Petition or Schedules. The debtor later argued that he was not in any way intentionally or fraudulently misleading the Court, it was simply inadvertence. He also argued that he thought it had not value. The Court did not believe him, and the Appeals Court affirmed Judge Feeney’s decision saying that there was no clear evidence of the Judge’s finding.

Second, a bank account with $1,800 in it was presented as a bank account with $300 in it. The debtor argued that there was a difference between the date of signing and the date his attorney filed the Petition. This likely happens often; a paycheck gets deposited between those two dates, for example, and is rationally explained.

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A couple of years ago, you couldn’t find any credit. The credit freeze extended to mortgage lenders as well as to credit card companies. Although things aren’t all peachy keen now, Citigroup is apparently interested in extending credit to just about anyone. They have sent out more than 340 million offers, which is more than the entire population of the U.S.

That may be considered a good effort, but not many are interested as revolving credit use was down in July to record lows. People are saving and trying their hardest to avoid getting themselves into more debt. Even though this much saving and conservative amounts of spending will not help the economy, it is good to see people spend responsibly and save whatever they can for the future.

Saving rates are hovering around 5 percent now and were at about 1 percent before the recession, so people are really making an effort. They are using their money to pay down credit card debt as well and avoiding loans like the plague. Delinquency rates on credit cards are down from 35 percent in 2010 to almost nothing. Peo

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The housing crisis has led to plenty of attention for homeowners who are underwater on their mortgages – that is, who owe more on their homes than the properties’ current value. Less press time has been devoted to other types of underwater loans, particularly those for cars.

The good news? Filing for bankruptcy may help you out of an underwater car loan (also sometimes called an “upside down” loan). Here’s a look at how things might work.

Those who file Chapter 7 bankruptcy may handle an underwater car loan in one of three ways:

• Surrender the car. This option means giving up the vehicle and eliminating the debt connected to it. While this isn’t a practical option for those who need a vehicle, it may be useful for folks who have other transportation options.
• Redeem the car. This option lets filers repay creditors the remainder of the car’s fair market value in a lump sum. In other words, you pay your lender the car’s current value minus whatever amount you’ve already paid. This tends to benefit those with underwater loans and enough cash on hand.
• Renew the loan. This cho

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Now that you finally paid off that nagging credit card bill with your 2010 tax refund, you’re anxious to purchase new energy efficient windows and lower your 2011 taxes with the Residential Energy Tax Credit.  Going Green is socially responsible, but before you break the bank make sure you understand how changes in the law will impact your taxes.  Although it is still available, effective January 1, 2011, the credit for energy-saving home improvements was decreased.  There are also many other new rules depending on what appliance you install.

It’s a tax credit given by the IRS to reward homeowners for making eligible energy-saving improvements to their principal residences.   A tax credit directly increases your refund or reduces your tax liability. A principal residence is a home that you own and live in most of the time.

Home improvements eligible for the credit are: •    Biomass stoves, heating, ventilating, air conditioning, water heaters, and installation costs for these items. •    The cost

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In an August 19, 2011 opinion, Judge Paul Crotty of the United States District Court for the Southern District of New York affirmed a September 2010 bankruptcy court ruling in the Delphi Corporation (n/k/a DPH Holdings Corp.) chapter 11 cases which denied a request by Appellant Michigan Funds Administration (or MFA) to amend an administrative expense claim and disallowed and expunged the underlying claim. The district court opinion is embedded below.

More details on the bankruptcy court and district court orders after the jump.

In the bankruptcy court order, entered by Bankruptcy Judge Robert Drain (Bankr. S.D.N.Y.), the bankruptcy court considered whether an untimely administrative claim filed by the MFA for 2009 yearly assessments could be considered an amendment of the MFA’s timely administrative claim for 2008 assessments. Judge Drain, relying on the two-part test outlined by the Second Circuit in Midland Cogeneration Venture L.P. v. Enron Corp. (In re Enron Corp.), 419 F.3d 115 (2d Cir. 2005), found that “the [2009 Claim] would not properly relate back to the [2008 Claim]. T Read more…

Attorney Donald L. Lader, Jr. has joined the National Bankruptcy Forum. Attorney Lader operates under Lader Legal Services PLLC and on the web at NHLaw.com. He provides Chapter 7 and Chapter 13 bankruptcy services and Foreclosure Defense for the entire state of New Hampshire.