In my bankruptcy alphabet, R stands for Retirement. Retirement plans and IRA’s are safe in whatever chapter of bankruptcy you file.? Your rights in an employer’s pension plan or a union pension plan are not even part of the property of your bankruptcy estate.? The Supreme Court held almost 20 years ago that ERISA qualified…
The letter Q embodies Questions in my bankruptcy alphabet. Like the storied Light Brigade, “stormed at with shot and shell” , we in bankruptcy are peppered with questions, not canons. Those considering bankruptcy have the profound questions will bankruptcy improve my situation?? what will I give up to get a bankruptcy discharge?? what is…
Priority is the P word in my Bankruptcy Alphabet.? Priority is the order in which claims of creditors are paid in a bankruptcy case. While all people may be created equal, not so for claims.? Recent income taxes and unpaid child support are among the? priority claims that get paid first and in full before…
O stands for Omitted in my Bankruptcy Alphabet.? Whether it’s creditors or assets that are omitted, omissions can create trouble in a bankruptcy filing.? So, O could also stand for Oops. When creditors are missing Omitted creditors usually create problems only for the person filing the bankruptcy.? Bankruptcy works on notice, and, at least…
The letter N, in my Bankruptcy Alphabet, stands for Nondischargeable.? These are the debts that simply don’t go away, even when you get a bankruptcy discharge. Family support heads the list of nondischargeable debts, at least figuratively.? Whether it’s called child support, alimony, maintenance, or a domestic support obligation, the debtor’s obligation to pay…
M is for Modify in my Bankruptcy Alphabet.? The Bankruptcy Code provides that a borrower can modify the terms of some secured debts, like car loans, judgment liens, and some mortgages.? And in the midst of the mortgage mess, the automatic stay can prevent foreclosure while a homeowner seeks a mortgage modification on…
K is for the stuff you keep through bankruptcy.? That “stuff” (a legal term, in my office<g>) is more than just the assets that are exempt by law. Some possessions you keep simply because they have little or no value.? The trustee’s job is to gather up assets that he can sell to generate funds…
J stands for Justify in my Bankruptcy Alphabet.? Or rather, it stands for “no need to Justify“? your election to file bankruptcy. Those considering bankruptcy imagine the first meeting of creditors as an inquisition by the trustee.? They fantasize that they will have to justify their choice of bankruptcy and that the trustee could…
“I”? stands for IRS in my Bankruptcy Alphabet. Bankruptcy law treats the? IRS little different? than other creditors.? The tax collector is just one of the boys. But the most important point is that income taxes can be erased in bankruptcy.? There are rules, three of them in fact, that govern when income taxes…
In my bankruptcy alphabet, H is for house. Can I keep my house if I file bankruptcy, anxious homeowners ask. With the precipitious fall of home values, my answer is almost always, “yes”. Should you keep the house is another question. Houses are vulnerable in bankruptcy only if there is significant equity above the total…
