I recently wrote a post discussing what makes a claim “allowed” or “disallowed” in New York bankruptcy. I wrote, “Debtors often rejoice at seeing a creditor’s claim disallowed, but that’s not always the end of the story for creditors.” One way a disallowed claim can return is if the creditor files a motion for reconsideration …
Reconsideration: Breathing Life Back Into Disallowed Claims Read More »
I recently wrote about what a “claim” is in New York bankruptcy. The term appears frequently in the Bankruptcy Code (often in regards to chapter 13 cases), but claims usually characterized as “allowed” or “not allowed” (“disallowed”). What’s the difference here? Section 502 of the Bankruptcy Code specifies that a claim is “allowed” if a …
The Bankruptcy Code frequently uses the term “claim” when referring to a creditor’s right to demand payment from the bankruptcy estate. This term sounds so generic that it might be mistaken for the word’s general meaning in everyday language. It’s not, and the Bankruptcy Code specifies what a “claim” is quite clearly: The Bankruptcy Code’s …
Back in July, The New York Times ran a long article about abuses (and incompetence) of debt collectors trying to recover from private-student-loan debtors. The issue is important because unlike federally backed student loans, debtors with private loans have fewer options to deal with them when they become burdensome because those loans are ineligible for …
NYT Explores ‘Assembly Line’ of Student-Debt Lawsuits Read More »
Payday loans are often very dangerous to consumers because their high interest rates make it easy for debtors to fall behind on their payments. Naturally, New York bankruptcy cases often include payday loans. Consequently, a few years ago the Consumer Financial Protection Bureau (CFPB) began drafting a rule that would regulate payday lenders while not …
CFPB Finishes Payday Lending Rule, Hopes to End ‘Debt Traps’ Read More »
Sometimes after bankruptcy cases are closed or dismissed, debtors will want to reopen them for a variety of reasons depending on the circumstances. Bankruptcy courts have substantial power to grant debtors requests to reopen their cases, so it can be helpful to know when it’s allowed, especially when self-represented debtors’ cases were dismissed due to …
When Can a Debtor Reopen a New York Bankruptcy Case? Read More »
I recently discussed what happens to health-insurance policies in bankruptcy, so debtors might also be curious about what happens to the actual proceeds from insurance claims. With the health-care policy, the issue was the character of the agreement, but with proceeds, the question focuses on the money the insurance company pays to the debtor when …
Not all areas of the law are the same, which can lead to confusion for people who are unfamiliar with the law. This can be especially true for bankruptcy because it’s a mundane court process that millions of Americans have encountered, even though it takes place in federal court. One question debtors may ask is …
Debtors in New York bankruptcy sometimes misunderstand the difference between paying a prepetition debt that they intend to discharge and paying their regular bills while in bankruptcy. The difference is important because debtors can stop paying some debts in bankruptcy, but neglecting the wrong debt can result in the same consequences as though the bankruptcy …
Prepetition Debts and Paying Bills in Bankruptcy Read More »
Normally, when a homeowner makes a mortgage payment, the servicer places the money in escrow and then distributes it to the relevant parties (the creditor, the insurance company, the government, and itself as a fee). Problems can arise with partial mortgage payments. Instead of placing it in escrow, making a partial distribution to the creditors, …
What Are ‘Suspense Accounts’ and How Do They Relate to Foreclosure? Read More »
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