Following up on a post from a few weeks ago about bankruptcy income and tax income for purposes of the chapter 7 means test, a question that can arise is: What happens if your income is irregular instead of a steady paycheck? This is an important question because the means test compares debtors’ average earnings …
Back in October, we discussed the ten situations in which parties can file adversary proceedings. One situation that occurs frequently is the sixth one: determining the dischargeability of a debt. In New York bankruptcy, the type of debt creditors sometimes try to shield from discharge is credit card debt. Because most chapter 7 bankruptcies involve …
When Can Lenders Challenge the Dischargeability of Credit Card Debt? Read More »
In early December, the Project on Student Debt (“Project”) published its annual report on the average amount of student loan debt taken out by 2012 college graduates. It found that last year, graduates left school with $29,400 in loans on average, up from $26,600 in 2011. The Project calculates that graduate student loan debt levels …
Report: N.Y. College Graduates’ Student Loans Below National Average Read More »
The topic of how to deal with an inherited underwater house came up recently, as did the unanswered question of whether a rent-stabilized apartment in New York City is an asset that can be included in the bankruptcy estate and liquidated by the trustee to repay chapter 7 creditors. Both issues are partly combined in …
Supreme Court to Decide Fate of Inherited IRAs in Bankruptcy Read More »
It’s December, and one thing that often happens this time of year is temporary tax code provisions that are designed to benefit homeowners expire. What’s more is that many homeowners’ mortgage payments are going to start to rise soon too, possibly creating financial difficulties. Both developments might force New York homeowners to consider filing bankruptcy. …
There’s plenty of advice out there for dealing with an underwater house via New York bankruptcy, but it’s another question entirely when you inherit one. Given that so many underwater homeowners are older Americans, it’s not as unusual a situation as one might think. So the question arises: What do you do if you inherit …
The recession that began in 2008 was very severe because it was caused by excessive borrowing by households. As people became unable to repay their mortgages, they defaulted, leaving many homeowners underwater in their mortgages. The obvious response was a wave of bankruptcy filings. The recovery after the recession has not been particularly good, so …
Many people aspire to homeownership, but if they have filed bankruptcy they often believe it’s an unreachable goal. This isn’t true. There are several other ways bankruptcy can help someone become a homeowner. (1) Bankruptcy can improve credit scores and other creditworthiness metrics. It’s avoiding bills and creditors that causes problems. In this sense, filing …
How Bankruptcy Can Lead the Way to Homeownership Read More »
People considering filing bankruptcy in New York are well aware of the consequences of a bad credit score. They can be denied credit; potential employers might not hire them; and landlords might decline to rent to them. Consequently there’s plenty of advice about how to maintain and buoy a credit score. What isn’t out there, …
Congress altered the bankruptcy code in 2005 to require debtors filing chapter 7 bankruptcy to demonstrate that their incomes are below the median family income for their state if their debts were primarily consumer debts. For single earners filing bankruptcy in New York, that figure will be $47,414 as of November 15. Debtors whose incomes …
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