Fifty years ago, it was fairly common for seniors in the United States to enter their retirement years with mortgages paid off and a nest egg built to supplement any social security earned during their working days. Today, things have changed. Many seniors are now facing debt and bankruptcy as they enter their retirement years. (more…)

A man on a bankruptcy forum website recently submitted a blog containing a theoretical scenario about percent payback in a chapter 13 bankruptcy filing. (more…)

My wife and I are planning a short trip to Maui, Hawaii this coming year. We won a five day and four night trip, and we plan on going during January of 2014 to watch the Whales. It is a good thing we won the trip because Hawaii is now trending toward better days for its economy. That means costs will start rising again, and being seniors on fixed incomes, we are lucky to be able to afford the trip. (more…)

Filing for bankruptcy protection has to be a scary prospect for first time filers not familiar with the process. The panel trustee and US Trustee can appear to be scary figures, especially when you don’t get to see them in person. This fact inspired a debtor to recently blog on a bankruptcy forum website comparing the trustee to the Wizard of Oz, the fictional character inspired by the novel written by Frank L. Baum. The cute blog inspired me to wonder which one of the trustees would be most like the Wizard of Oz in original movie. (more…)

It has been said that the better laid plans of mice and men can often go astray. Filing a chapter 13 bankruptcy plan does not always guarantee success, even when you have legal expertise in your corner. Less than a third of all chapter 13 bankruptcy plans filed are ever completed. Things can change during a plan that can cause it to go astray from what was planned to happen. Here are four possible solutions when a chapter 13 bankruptcy plan goes astray: (more…)

There is always a lot of questions asked about the chapter 7 bankruptcy process, especially from new filers. Since bankruptcy law can become very complicated, this article is an attempt to deal with the simplest basics on the chapter 7 bankruptcy process. (more…)

In the United States of America, the American Bankruptcy System has evolved to the system it is today after being placed under federal jurisdiction by the United States Constitution. In Article 1, Section 8, Clause 4, the Constitution allowed Congress to enact “uniform laws on the subject of bankruptcies throughout the United States.” Had the Founding Fathers not seen the wisdom of including bankruptcies in the every day affairs of federal legislation, there would be only two possible alternatives to the American Bankruptcy System today- civilized or uncivilized. (more…)

A debtor recently blogged on a bankruptcy forum website his trustee and bankruptcy judge wanted him to take money out of his 401(k) plan to make a balloon payment on one of his creditor’s notes. There is something fishy about the idea any federal representative would ask a debtor to do such a thing. Can a bankruptcy judge ask you to take 401(k) monies to pay debts in a bankruptcy case?

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It is not unusual to visit a bankruptcy forum website and hear how some creditor has violated collection laws, nor is it unusual on the same websites to hear how some debtor has taken advantage of the legal system. Neither creditors nor debtors follow every tittle of the law. (more…)

The means test was devised by Congress in the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act to help protect creditors from abuse by debtors whom formerly had filed bankruptcies in a serial fashion. The number of times an individual can file within a certain time frame was introduced into the law to help alleviate such practices. In order to qualify to file a chapter 7 bankruptcy, a filer has to be able to pass the means test. What happens if you are slightly over the means test? (more…)