Yes – but only if the debtor can show “excusable neglect” they can amend their exemptions in a reopened proceeding. However, in a recent 10th Circuit case, the court held that a Chapter 7 debtors failed to establish that their failure to disclose a personal injury claim, which they subsequently settled for $8,000, was the…
What happens to a non-filing spouses joint tenancy interest when the debtor dies during the pendency of a bankruptcy proceeding?
In a recent decision from the 10th Circuit, the court held that the bankruptcy estate’s interest in joint tenancy property terminated upon debtor’s death. When the Chapter 7 debtor died post-petition, the case continued under Bankruptcy Rule 1016 but the bankruptcy estate’s interest in jointly owned property owned by the debtor and his non-filing wife…
Ohio Court rules that Debtor’s “life estate” in residential property held by trust was sufficient for debtor to claim exemption in her lifetime interest in property
What happens when a Chapter 13 debtor gets divorced while their bankruptcy case was pending?
The dissolution of a marriage is not subject to the automatic stay pursuant to Code § 362(b)(2)(A)(iv). Child custody determinations are not subject to the automatic stay pursuant to § 362(b)(2)(A)(iii). Child support determinations are a domestic support obligation and so are not subject to the automatic stay pursuant to § 362(b)(2)(A)(ii). Alimony is a…
Are Parents sacrificing their own financial security to help adult children?
Reliable facts and recent reports show that parents are spending billions on adult children. It’s getting very expensive for American parents to support their adult child. Parents are spending $500 billion per year to support their adult children. That number represents twice the amount parents are spending on their own retirements. More alarmingly, one in…
Can a Student Loan Creditor Compel Arbitration pursuant to contract provisions?
The Bankruptcy Court in Indiana denied the student loan creditor’s motion to compel arbitration of the debtor’s dischargeability proceeding under Code § 523(a)(8). The Roth court reasoned that the issue of dischargeability was a core matter and therefore the court had the discretion to not enforce the arbitration provision in the debtor’s promissory note if…
Can I keep my securities license if I file bankruptcy?
According to the Financial Industry Regulatory Authority (FINRA) By-Law, Article III, Section 4, filing for bankruptcy is not an event that would disqualify an individual from being associated with a FINRA member firm. Some states are more restrictive than others. According to Attorneys Worwag and Malysz of Des Plains, Illinois, since all individuals are entitled…