In a recent Alamba bankruptcy court ruling, the court ruled that the debtor is not obligated debtor to pay the lender’s bankruptcy-related attorney’s fees. The court relied on the four corners of the Chapter 13 debtor’s mortgage finding that there existed no unambiguous language rendering the borrower liable for attorney’s fees incurred by the lender…
Factors relevant to court’s decision on permissive abstention: How does a bankruptcy court determine whether an adversary proceeding is a “Core Proceeding”?
Courts will consider several factors when determining whether to permissively abstain under 28 U.S.C. § 1334(c)(1) from hearing a proceeding, including: (1) the effect of abstention on the efficient administration of the bankruptcy estate; (2) the extent to which state law issues predominate over bankruptcy issues; (3) the difficulty or unsettled nature of the applicable…
Disposition of Chapter 13 Funds following Dismissal: Can a state levy Chapter 13 post-petition funds on hand after the case is dismissed to apply to debtor’s child support arrearage?
Not in Virginia. In a recent 4th Circuit decision, the court held that the Virginia Department of Social Services, Division of Child Support Enforcement, was not entitled to post-petition funds held by the Trustee following the dismissal of Mr. Webb’s unconfirmed Chapter 13 case to apply against his delinquent child support. Affirming the bankruptcy and…
Mandatory Wage Garnishment for All Educational Loans?
Last week, Senator Lamar Alexander, the Chair of the U.S. Senate Committee on Health, Education, Labor and Pensions, proposed a program that would require student loan borrowers to repay their loans through mandatory automatic deductions from their paychecks.
How do you value a Chapter 13 debtor’s business for purposes of the best interests of creditors test?
In a recent Michigan bankruptcy court decision, the court used the “going concern forced sale value” to value Chapter 13 debtor’s business for purpose of best interests of creditors test in Code § 1325(a)(4). The court was faced with determining the proper valuation methodology for the Chapter 13 debtor’s interest in a hair salon; the…
What Are Your Actual Monthly Expenses?
Budgeting is the key to your financial success. You have to know what you are doing with your money. Housing: How much do you spend on housing each month? (Include rent/mortgage, taxes, insurance, utilities (electricity, gas, water, telephone, etc.), and repairs/upkeep) Food: What are your expenses at the grocery store, restaurants, etc.? This includes anything…
How much money does it cost you for to pay for your regular living expenses?
Whether you are trying to improve your credit score or contemplating filing for bankruptcy, you must get a handle on your monthly budget. What is your total “net” monthly income including other benefit amounts? How much money does it cost you for to pay for your regular living expenses? If your income is less than…