Chapter 7 Bankruptcy Treatment of Secured Property

STATEMENT OF INTENTIONS IN BANKRUPTCY In a Chapter 7 bankruptcy, the debtor must complete and sign a form called the Statement of Intentions. The Statement of Intentions indicates which of the available options the debtor chooses towards his or her secured property. The primary examples of secured property are an automobile loan or a mortgage loan. In a Chapter 13 bankruptcy one manifests his or her intent regarding such secured property through the Chapter 13 plan. In a Chapter 7 bankruptcy, the Statement of Intentions Read More +

Dischargeability of Student Loans

Dischargeability Of Student Loans Interpreting Bankruptcy Code Section 523(a)(8) Constructing The Plain Text Of The Bankruptcy Code In Determining Whether A Student Loan Can Be Discharged Or Eliminated In Bankruptcy Part One of A Series By Clearwater Florida Bankruptcy Lawyer Jay Weller Please refer to the Text of the prior Post which repeats, word for word, the Text of the Bankruptcy Code as its applies to Student Loans. Section 523(a)(8) of the Bankruptcy Code defines when Student Loans can be Discharged or eliminated in Bankruptcy. Read More +

What Section of the Bankruptcy Code Applies to Student Loans?

What Does Bankruptcy Code Specifically Say About Student Loans? By Jay Weller Section 11 USC 523(a)(8) of the US Bankruptcy Code is the operative Section in regards to Student Loans. Section 523(a)(8) States STUDENT LOANS ARE NOT DISCHARGED UNLESS: Unless excepting such debt from discharge under this paragraph would impose an UNDUE HARDSHIP on the debtor and the debtor’s dependants, for- (A)(i) an EDUCATIONAL OVERPAYMENT or LOAN MADE, INSURED, or GUARANTEED by a GOVERNMENTAL UNIT or NONPROFIT INSTITUTION; or made under ANY PROGRAM FUNDED in Read More +

Treatment of Automobiles in Bankruptcy

Here Are Your Options By Jay Weller Many of the Clients of Weller Legal Group have difficulties presented by their Automobile Loans. Loss of income, or unexpected financial circumstances sometimes leaves a Client delinquent on his Automobile Loan and in danger of Repossession. Sometimes, the monthly payment is too burdensome for the Client to pay, with the attendant other Debts he may have. Bankruptcy can help these Clients in numerous ways. In a Chapter 13 Bankruptcy, or what is referred to as a Debt Consolidation, Read More +

Discharge of Second Mortgages in Bankruptcy

An Explanation Of The Mechanisms Of Lien Stripping By Jay Weller One tool used by knowledgeable Bankruptcy Attorneys is a process called Lien Stripping. Lien Stripping in Bankruptcy permits the Bankruptcy Attorney, on his Client’s behalf, to eliminate or Discharge Second and Lesser Mortgages, meaning other than the First Mortgage. In order to Lien Strip a Second Mortgage, the Fair Market Value of the Debtor’s Homestead must be less than the Balance of the First Mortgage. In such a circumstance, the result is that the Read More +

in Re Lisowski: Florida Bankruptcy Court Decision Grants Separate Exemption for Mobile Homes

In Re Lisowski: Florida Bankruptcy Court Decision Grants Separate Exemption For Mobile Homes An Opinion By The Great Bankruptcy Judge, The Honorable Paul M. Glenn By Jay Weller A 2008 United States Bankruptcy Court Decision by the Honorable Paul M Glenn, held that Florida’s Modular Home Exemption which permits Debtors who own a mobile home that is used as their Residence, and is located on leased land, does not implement the Florida Homestead Exemption, but is a separate Exemption, and can be applied under the Read More +

the Coming Crisis – Part Vii

Pension Plans And The Detroit Bankruptcy    The Centre for Retirement Research (CRR) report found that in the United States, the States pensions for its employees are 27% underfunded. The total amount of obligations that are underfunded amount to about one trillion dollars. To calculate the one trillion dollar shortfall, CRR used the mathematics used by most States wherein the State uses an annual discount rate of 7.5% to 8%. The discount rate is an assumption that the pension plan monies that are invested will Read More +

the Coming Crisis – Part Vi

Pension and Health Plans in Detroit This is part VI in our series on the Detroit bankruptcy, and pension and health plans for governmental retirees. The approach to the bankruptcy in Detroit has important significance not only to the city of Detroit and its inhabitants, but to the bond market that finances much of many American cities efforts, and to pension plans and other benefits that governmental retirees receive nationally. Detroit is the largest city in the United States to ever file for bankruptcy. The Read More +

Origins of Bankruptcy Law in the United States

The United States Constitution gives Congress the power to establish laws on the subject of Bankruptcy throughout the United States. Congress first exercised this power the Bankruptcy Act of 1800. This act, which virtually copied the existing English law, provided for involuntary bankruptcies and was only available to traders (merchants). The act was repealed three years later in 1803. Two more short-lived federal bankruptcy laws were enacted from 1841 to 1843 and from 1867 to 1878. A permanent federal bankruptcy law would not go into Read More +