Can a judgment creditor seek to garnish funds in the possession of the Chapter 13 Trustee after a Chapter 13 case is dismissed? The answer is yes in Orlando. A recent bankruptcy decision in the Orlando Division of the Middle District of Florida holds that if a Chapter 13 Debtor’s case is dismissed and the Chapter 13 Trustee is still in possession of funds directed to go back to the debtor, a judgment creditor can run to the State Court and request an Order of Garnishment on the Chapter 13 Trustee. Wow, what a horrible result. I must admit that there is case law on both sides of this issue, but the Orlando Court followed the line of cases allowing the garnishment.
On 08.29.10, In Bankruptcy News, By admin
On 08.29.10, In Bankruptcy News, By admin
You’re told you need to “affirm” or “reaffirm” your mortgage loan to keep your home despite your bankruptcy. Don’t do it. Here’s why.
First, I’ll put on my lawyer hat. It’s called “reaffirm”, although it’s a weird word and people often only remember “affirm”. It means that you want to re-agree to the loan agreement after your bankruptcy case was filed. (Re-agree = reaffirm, get it?)
On 08.27.10, In Bankruptcy News, By admin
Chapter 12 Bankruptcy is a powerful tool for operators of small farms to resolve their debt problems. Farming and debt often go hand in hand. This is particularly true for New York dairy farmers. They are being paid 20 percent less for unprocessed milk than they received in 2008 – even while milk prices at the store are going up. Many NY dairy farmers are on the brink of losing to foreclosure their herd, their equipment and their farms.
On 08.26.10, In Bankruptcy News, By admin
Are you having problems paying a monthly mortgage payment? Are you living in fear of default? Here are some of the warning signs that your mortgage is a time bomb waiting to go off.
The first is the size of your mortgage payment. If your payment is more than third of your monthly take-home pay, it is too large. Most economists agree that a payment that exceeds one-third of take-home pay puts too large a strain on the monthly budget. Here is a calculator that will allow you to determine the appropriate amount for a mortgage payment based on your income. There is not enough room in the money that is left over to cover living expenses, other debt payments and savings for emergencies.
On 08.25.10, In Bankruptcy News, By admin
Modern bankruptcy is largely a voluntary idea, a relief for those in need. The matching right to drop out of a case is less well recognized.
This is true even in Chapter 13 where the right to dismiss your own case seems absolute. On the other hand, many courts have concluded the right to dismiss does not overcome a creditor or trustee’s motion to convert a case to Chapter 7. Typically these cases conclude that a consumer’s “bad faith” in filing Chapter 13 can prevent dismissal and require conversion.
On 08.25.10, In Bankruptcy News, By admin
Modern bankruptcy is largely a voluntary idea, a relief for those in need. The matching right to drop out of a case is less well recognized.
This is true even in Chapter 13 where the right to dismiss your own case seems absolute. On the other hand, many courts have concluded the right to dismiss does not overcome a creditor or trustee’s motion to convert a case to Chapter 7. Typically these cases conclude that a consumer’s “bad faith” in filing Chapter 13 can prevent dismissal and require conversion.
On 08.25.10, In Bankruptcy News, By admin
If you are considering bankruptcy, mortgage modification, debt relief, debt settlement, debt management (credit counseling) or debt consolidation, you should look at all of them to be sure you are making the right decision for you and that you have all the facts.
If you are in financial trouble there are many different options to consider but many people miss the opportunity because they don’t have all the facts or they try the wrong solution first.
On 08.25.10, In Bankruptcy News, By admin
If you are considering bankruptcy, mortgage modification, debt relief, debt settlement, debt management (credit counseling) or debt consolidation, you should look at all of them to be sure you are making the right decision for you and that you have all the facts.
If you are in financial trouble there are many different options to consider but many people miss the opportunity because they don’t have all the facts or they try the wrong solution first.
On 08.24.10, In Bankruptcy News, By admin
People sometimes spend down the last of their cash and then decide they need bankruptcy. This seems like common sense: you go broke and then you go bankrupt. But this is not how it works. There’s a saying that goes, “bankruptcy is not for paupers.” This means that bankruptcy costs money and is usually not for people who don’t have any.
On 08.24.10, In Bankruptcy News, By admin
People sometimes spend down the last of their cash and then decide they need bankruptcy. This seems like common sense: you go broke and then you go bankrupt. But this is not how it works. There’s a saying that goes, “bankruptcy is not for paupers.” This means that bankruptcy costs money and is usually not for people who don’t have any.