As reported by Robin Miller with CBAR: Distinguishing a bankruptcy case that is closed from one that is dismissed, and reaching a conclusion that is independent of the chapter under which the debtor’s bankruptcy case was filed, the Second Circuit Court of Appeals held that, under Code § 349(b)(3), even undisclosed assets revest in the…
BEWARE THE AFFECT OF FORM 982 ON THE FOREGIVENESS OF INDEBTEDNESS AND ITS AFFECT ON THE BASIS YOU YOUR HOME
If you negotiate the foregiveness of indebtedness from a bank on a home loan or credit card company, you will recieved a 1009C. Many bankruptcy practictioners, treat the “discharge in a case under Title 11” and “insolvency” as equally effective ways to avoid including cancelled debt in taxable income and filed a Form 982. Most…
Detroit Appellants Ask the Court of Appeals to Suspend Appeals Pending the Confirmation of the Chapter 9 Plan
Reuter’s reported that a federal court was asked to suspend seven pending appeals over Detroit’s eligibility for bankruptcy until the bankruptcy confirmation plan is confirmed to adjust $18 billion of debt. Attorneys for the city, Michigan, Detroit pension funds, unions and others that filed five of the appeals said that moving forward with the cases…
Finally: The Feds Announce Rules to Make Colleges Tell the Truth About Student Loans!!!
New federal rules that penalize colleges for excessive student loan defaults offer a powerful incentive for schools to educate students on the complexities of the federal student loan program, including the crucial fact that they can delay or make partial payments if they get into financial trouble, according to a New York Times editorial on Friday. Colleges with…
More Than 1/3 of All Americans are Delinquent on Their Debt?
A study released today by the Urban Institute found that 35 percent of Americans have debt in collections, USA Today reported today. The study, which analyzed the credit files of 7 million Americans, found that Southern states especially stand out with the highest concentration of people delinquent. In 13 states — Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana,…
WILL DETROIT MAKE IT AFTER BANKRUPTCY?
As reported on mlive by Mike Wilkinson of Bridge Magazine, serious questions remain as to whether Detroit will be able to survive its historic Chapter 9 Bankruptcy. Detroit has the distinction of the murder capital of the U.S. and is also the most populous U.S. city to ever seek bankruptcy protection. But, the real questions…
If a Creditor files a Claim against a Time Barred Debt, Is there a Violation of the Fair Debt Collection Practices Act?
Yes – According to at least one US Circuit Court in a recent opinion. As reported by Robin Miller of CBAR, in an important decision and a rare victory for consumers, the 11th Circuit Court of Appeals has held that a debt collector’s filing a proof of claim for a time-barred debt violates the federal…