I’ve written about how debtors can avoid liens in New York bankruptcy when they impair their exemptions, but trustees can avoid liens against debtors’ assets too, thanks to section 544 of the Bankruptcy Code. Of particular value to some debtors is the trustee’s power to avoid liens that creditors improperly recorded—also described as “unperfected.” It . . . → Read More: Unperfected Liens: Clear Advantage in Chapter 11, Tougher in Chapter 13
That’s a question a New York bankruptcy lawyer should ask whenever a debtor seeks to strip a lien off an (allegedly) underwater junior mortgage in a chapter 13 bankruptcy. I’ve discussed this before, but as a quick review, debtors who owe multiple mortgages can strip the liens off junior mortgages that have no equity in . . . → Read More: Is That Second Mortgage Really Underwater?
At the beginning of the year, I wrote about the merits of stored-value cards, and the role they can play in a New York bankruptcy. Stored-value cards are increasingly referred to as “prepaid cards” or “prepaid accounts.” They’re back in the news this month because the Consumer Financial Protection Bureau (CFPB) just issued new regulations . . . → Read More: CFPB Issues New Rules Regulating Prepaid Cards
The answer is no, but the questions are: What’s a non-possessory, non-purchase money security interest, and why would that matter in New York bankruptcy?
Pawned property is a commonly understood concept, and I’ve written about how it contrasts with repossessed property. The Bankruptcy Code specifies that pawned property is not property of the bankruptcy estate. . . . → Read More: Is Pawned Property a ‘Non-Possessory, Non-Purchase Money Security Interest’?
It should come as no surprise that debt contributes to serious, measurable health problems. What is notable, however, is just how well documented the connection is. Researchers have conducted quite a few studies on the subject, and here are some of the mental and physical maladies that debt corresponds to:
Headaches Anxiety disorders Drug and . . . → Read More: Bankruptcy Is Medicine for Debt-Related Health Problems
When we think of abandonment, images of derelict buildings spring to mind. In New York bankruptcy, though, it’s just the process by which a trustee (or debtor in possession) can divest property from the bankruptcy estate, returning it to the debtor. Section 554(a) of the Bankruptcy Code authorizes the trustee to abandon any asset that . . . → Read More: What Is ‘Abandonment of Property’ in Bankruptcy?
Since 2010, New York bankruptcy rules have permitted debtors to choose between the state’s exemptions and the federal exemptions. Before then, New Yorkers could only use the state’s exemptions, and back then they weren’t nearly as strong as now. The state improved the bankruptcy exemptions because the legislature hadn’t given them much attention since the . . . → Read More: How Do New York State’s Exemptions Differ From the Federal Exemptions?
In ongoing civil cases, parties on either side can add other parties to the case (called “joining”) almost effortlessly. In bankruptcy, though, once a petition has been filed, joining spouses is not allowed, and other remedies must be sought. Why is this?
The answer is it has to do with how the Bankruptcy Code structures . . . → Read More: Joining Spouses Not Allowed in New York Bankruptcy
I divided this topic into two parts because the answer implicates more than one portion of New York bankruptcy. In part 1, we learned that a child’s physical mobile device can actually be a parent-debtor’s property that must be transferred to the bankruptcy estate unless the debtor can fit it into an exemption. In general, . . . → Read More: What Happens to Your Child’s Mobile Device in Bankruptcy? (Part 2 of 2)
Perhaps most parents—and certainly most grandparents—made it through high school with only paper and pencils. In a chapter 7 New York bankruptcy, these items would have nearly no value to a trustee. Even so, the state provides a sizeable $550 exemption for books that debtors can apply to their kids’ school books. It’s not like . . . → Read More: What Happens to Your Child’s Mobile Device in Bankruptcy?