A few weeks ago I wrote about a Boston-area man who lost his high-paying white-collar job and filed bankruptcy to discharge Parent PLUS student loans he took out for his children. Since that post, it appears the debtor settled with the creditors. Saliently, he had been unemployed for fourteen years, which raises the topic of …
4 Reasons Older Americans Should Consider Bankruptcy to Handle Debts Read More »
In 2014, I wrote about the role that a proof of claim plays in New York bankruptcy, but not all creditors use those. Notably, when the IRS enforces a debt in bankruptcy it will instead file a Notice of Federal Tax Lien (NFTL). What are these? As with all statutory liens, an NFTL creates a …
The Notice of Federal Tax Lien: The IRS’s Gateway to Bankruptcy Read More »
By the time most people file chapter 7 New York bankruptcy, they’ve concluded that there’s really nothing more they can do to repay their debts. They can’t work more jobs or magically earn more money. Thus, their hardship entitles them to a discharge. Chapter 13, by contrast, is aimed at debtors with some hope of …
Can a Bad Economy Be Grounds for a Chapter 13 Hardship Discharge? Read More »
On May 16, 2016, the U.S. Supreme Court resolved a split among the circuit courts of appeal regarding the definition of “actual fraud” in the Bankruptcy Code. Section 523(a)(2)(A) states: A discharge … does not discharge an individual debtor from any debt for money, property, services, or an extension, renewal, or refinancing of credit to …
Supreme Court Holds ‘Actual Fraud’ Does Not Require Misrepresentation Read More »
I recently wrote about what happens to condo or homeowners fees in New York bankruptcy, but I left out the prominent alternative, non-renting urban residence: co-ops. That wasn’t an accident; the reason is co-op maintenance fees are paid before mortgage payments, so a debtor would default on a mortgage before co-op fees. The result is …
The trustee in a New York bankruptcy case is usually not the debtor’s ally. His or her purpose is mainly to administer the bankruptcy estate or ensure the debtor’s repayment plan goes according to plan. Trustees pursue preference payments, fraudulent conveyances, and other malfeasance committed by debtors. They frequently initiate adversary proceedings against debtors. In …
How Can a Debtor (or Creditor) Get a New Trustee? Read More »
I wrote a few posts about the 2005 bankruptcy reform, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), but I left out one topic that doesn’t really address whether the law benefited debtors in New York bankruptcy. Specifically, what were some of the unintended consequences of the BAPCPA? One answer is the industry spawned …
Where Do Debtor Education Fees End Up? A Multi-Million-Dollar Industry Read More »
A few years ago, I discussed how the federal government changed its process for allowing qualifying debtors to apply for a non-bankruptcy discharge their student loans due to disability. Until 2013, the process required disabled debtors to slog through a bureaucratic process, even if the Social Security Administration had independently judged them as “totally and …
Government Reaching Out to Disabled Student-Loan Debtors Read More »
Last year I wrote about reverse mortgages and New York bankruptcy, but a recent article in the American Bankruptcy Law Journal adds more depth to the “intersection” between reverse mortgages and bankruptcy. It has a handful of lessons that New York homeowners (and their heirs) might want to know. First, though, is a reminder as …
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