Here are the elements of judicial estoppel: The doctrine of judicial estoppel is “a common law doctrine by which a party who has assumed one position in his pleadings may be estopped from assuming an inconsistent position,” particularly in situations where “intentional self-contradiction is being used as a means of obtaining unfair advantage in a…
Debtor’s can defend against “fraudulent transfer” claim even where consideration given by debtor was greater than value of benefit received
In a Texas case, a Debtor received full value for prepetition payments made to a creditor for purposes of defense under Code § 548(c) to avoid an alleged fraudulent transfers. The bankruptcy court did not err in concluding that, under Code § 548(c), a creditor holding a security interest in the building in which the…
How do you determine household size for the Bankruptcy Means Test?
The US Trustee’s guide to the Chapter 7 Means Test states that household size is the debtor, spouse and any dependents that the debtor could claim under IRS dependency tests. IRS publication 501 which shows the requirements for claiming exemptions for a dependent. “Qualifying Relative” can be parents who do not live with the debtors…
You cannot surrender property to divest yourself of title to that property in a Bankruptcy in Michigan
The debtor’s surrender of property does not divest debtor of title to property in a Bankruptcy proceeding in Michigan. A Chapter 13 debtor’s surrender of real property collateral has no impact on the debtor’s status as record owner of the property. Under the Bankruptcy Code, the debtor’s “surrender” merely establishes she will not oppose the…
How is the value of property that you want to redeem under 722 determined?
If you file a Chapter 7, you have the option to redeem tangible personal property that is subject to a secured claim by paying that creditor the value of that property. The value of the redemption amount is determined by Section 506(a)(2) of the Bankruptcy Code. This section establishes that value as that price that…
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation is Extended throught 2013!
Congress did one thing right in their last minute wranglings over the federal budget and their efforts to avoiding falling over the fiscal cliff – they extended the The Mortgage Forgiveness Debt Relief Act and Debt Cancellation through 2013. That means if your mortgage company forgives any indebtedness in the case of a short sale…
Is filing for Bankruptcy wrong – or is it a sin?
The short answer is no. The Bankruptcy laws are mandated by the US Constitution. The purpose of bankruptcy is to allow you to get a “fresh start.” Often, circumstances beyond our control put you in a position where you become insolvent – you are unable to meet your obligations as they become due. I have…