In a decision that conflicts with a recent Western District of Michigan Bankruptcy Court,  the 10th U.S. Circuit Court of Appeals ruled in Anderson v. Cranmer , 2012 WL 5235365 (10th Cir. 10/24/12) determined that Social Security income is not included in a debtor’s “disposable income.” Because it is not included in “disposable income” it cannot be included in a Chapter 13 debtor’s “projected disposable income.” The Anderson Court  maintained that neither the ruling in Hamilton v. Lanning , 130 S.Ct. 2464 (2010), or the “good faith” requirement of Section 1325(a)(3) required that social security income be included in a debtor’s disposable income. The court stated, “Nothing in Lanning suggests a court may disregard the Code’s definition of disposable income in calculating projected disposable income….

I am amazed at some of the numbers I see in student loan debt. And – to a person – the school never told the “then” student what to expect for a payment post graduation. Criminal negligence in my mind. All justified with mega structures and more building. Cooley Law School is the biggest law school in the nation. Yes – you heard that correct. Like we need more lawyers??? And they come out of that mill pushing $150k in debt expecting money to fall out of the sky. Believe it or not – the highest paid lawyers are judges and prosecutors. The private practitioners grind it out working 60 to 80 hours a week – I know – poor me. Bottom line: Take care…

Don’t get tricked by the latest scam developed by unscrupulous shills for the pay day loan and cash advance scum bags. Here is the set up: 2 men and one woman – who poses as a receptionist. Everything is done via cell phone – none of the numbers can be traced. You get a call from a guy who calls himself “Mr. Brady.” Brady demands an immediate payment via ACH debit (red flag) and threatens to come to your work place and arrest you, etc. This is like “Dog the Bounty Hunter” on steroids. This character rants on and on – calling you and your place of employment. The most recent client had 15 calls to her and her employer within a 2 hour period….

“Undue hardship” is the standard that CHAPTER 7 & CHAPTER 13 BANKRUPTCY Judges must determine in order to discharge your STUDENT LOANS. Here are some examples of cases where debtors were sucessful and unsuccessful: A 50 year old STUDENT LOAN BORROWER who was earning only $8.50 and hour as a telemarketer was granted a discharge where the BANKRUPTCY JUDGE found that the borrower had reached maximum earning capacity, did not earn enough money to pay the loans and support minimal family expenses and appeared to be trapped in a “cycle of poverty.” A college-educated married couple proved UNDUE HARDSHIP where they both worked and had income barely above the poverty level. Both borrowers worked in worthwhile – low-paying careers: One worked as a teacher’s aide and the other as…

The most recent amendments to the Bankruptcy Code (the 2005 Bankruptcy Abuse Prevention and Consumers Protection Act) has kept the Federal Circuit Courts and Bankruptcy Court busy – while leaving practitioners and Trustees at odds over certain critical issues including whether Social Security Income should be included in your budget (Schedule I). In Baud, the 6th Circuit Court made it clear that Social Security Income should not be included in the Means Test – and by implication – should not be included in monthly budget calculations. In a subsequent decision here in the Eastern District of Michigan, the Tobias court agreed and debtor’s were allowed to exclude their Social Security Income in their monthly budget. The Baud and Tobias decisions were widely respected by local…

In an unexpected decision, the 6th Circuit Court of Appeals upheld Michigan’s exemption law that was enacted shortly after the 2005 Amendments to the US Bankruptcy Code. The case is In re Schafer and was recommended for full-text publication. The State Exemption allowances now allow Michigan residents a viable alternative to the Federal Bankruptcy Exemptions. One of the key features of the Michigan exemption allowances is that you can exempt up to $30,000 in the value (or equity) in your home – $45,000 if you are over age 65 or disabled. By contrast, the Federal bankruptcy exemptions only allow $21,625 for your homestead allowance. The Michigan general homestead allowance is only $3,500. Our State of the Art Computer system allows us to serve all of…

The most common violations under the Fair Debt Collection Practices Act include the following: Communications with third parties about your alleged debt; Communicating with you after you have sent a written cease and desist letter; Any contact with you by post card or with an envelope that identifies itself as a debt collector; Contacting you after the creditor learns that you are represented by an attorney; Calling you at any unusual time (before 8 am or after 9 pm) or calling you at any unusual place or at your place of employment if they know that your employer forbids such calls; Leaving a message on an answering machine or a voice mail without disclosing that the call is from a call is from a debt…