It’s one of the most common—and important—questions New York bankruptcy debtors ask: How long will a chapter 7 bankruptcy take? The answer is there are really two timelines to be aware of: the one between the bankruptcy case being filed and the discharge, and the one from filing until closure. In most cases, the period …
Factors Affecting a Chapter 7 New York Bankruptcy Timeline Read More »
Debtors considering chapter 7 New York bankruptcy often learn that if their incomes are above their state’s median family income, they must take the means test. The consequence of failing it would be converting their cases to chapter 13 (or, less commonly, chapter 11). This isn’t true for all debtors, notably business debtors, and some …
‘Business Debts’ Might Keep Debtors in Chapter 7 Read More »
Most people don’t think about growing their families when filing New York bankruptcy, but bringing a child into your family can add a few wrinkles to a filing that debtors might want to know about, particularly when a pregnancy happens by accident. Probably the most common place where a new child will (or won’t) affect …
The topic of income tax refunds comes up periodically in New York bankruptcy. It’s important because in chapter 13 cases, New York trustees will demand the full refund to repay the creditors, and in chapter 7 it’s an asset that will be taken by the trustee if the debtor can’t protect it with an exemption. …
4 Debts That Are Subject to Income Tax Refund Offsets Read More »
I recently wrote about priority claims in New York bankruptcy, and notably, the types of claims with the highest priority are called “domestic support obligations.” Readers probably have a fairly good idea of what these might entail, but the role the play in bankruptcy isn’t so obvious. Because bankruptcies often coincide with divorces, they are …
Liens on underwater junior mortgages survive chapter 7 New York bankruptcy, which means homeowners will need to keep paying them to prevent foreclosure. Often, the response is to file a chapter 13 case after the chapter 7 one to strip the lien, but there are reasons to be cautious about taking that course of action. …
Alternatives to Chapter 13 After Discharging an Underwater Mortgage Read More »
New York bankruptcy requires debtors to pay some creditors what they are owed before others. These are called “priority claims” or “priorities” in the Bankruptcy Code. In chapter 13, for instance, creditors with priority claims must be repaid in full. Consequently, it’s important for debtors to have an idea of what these kinds of claims …
Usually when bankruptcy lawyers discuss the benefits of successive New York bankruptcy filings, the “chapter 20” strategy comes up (less so the “reverse chapter 20“). Debtors who discharge an underwater junior mortgage in chapter 7 must continue to make the mortgage payments if they wish to avoid foreclosure. They can file a chapter 13 case …
Supreme Court to Decide Underwater Junior Mortgage Lien-Stripping Case Read More »
Last week I discussed an article in The New York Times‘ Dealbook blog that described banks that were failing to report bankruptcy debtors’ debts as discharged. A minor criticism that wasn’t worth raising at the time was the article’s melodramatic characterization of bankruptcy as taking a “heavy toll” on debtors. Actually, New York bankruptcy isn’t …
There’s sort of a joke in New York bankruptcy referred to as “chapter 20,” which isn’t a real part of the Bankruptcy Code but a chapter 13 filing that follows a chapter 7 discharge, mainly to strip a discharged junior mortgage lien. I’ve discussed “chapter 20” in the past—as well as why it’s not always …
Two Situations in Which ‘Reverse Chapter 20 Bankruptcy’ Is Possible Read More »
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