The Birmingham Bankruptcy Courthouse, officially known as the Northern District of Alabama-Southern Division, recently reopened after several years of renovations. Although the outside has kept its classic look, except for some minor landscaping changes, the inside is vastly different. All three courtrooms are now located on the first floor, right off the main lobby area, making it much easier for debtors, creditors and attorneys to find their way to the correct courtroom. Meeting of Creditors hearing are now held on the basement level in a room much more conducive to its purpose. Although I cringe at the estimated cost of the ...
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Your Bankruptcy Hearing: What to Expect
For many people, one of the most frightening aspects of bankruptcy is going to court.
What's going to happen? Who will be there? Will I be asked embarrassing questions?
Here are 10 things you need to know about your bankruptcy court date:
1. Don't expect to see the Judge. If you file Chapter 7 Bankruptcy, you will probably never see the Judge. A "Bankruptcy Trustee" (he's just a lawyer appointed by the court to administer your case) will ask you four or five simple questions at your hearing.
2. Your bankruptcy lawyer will be at the hearing with you. He's there to guide you through the process and make sure everything runs ...
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To Deduct or not to Deduct: The Means Test, the Supreme Court and your car.
May a debtor claim an ownership expense deduction under the means test if the vehicle is unencumbered? The Supreme Court will hear a case on this issue to resolve a split in the circuits; well, not a 50/50 split, but the usual split...the 9th Circuit versus everyone else.
Pre-BAPCPA, this would be a simple issue...if the debtor has an expense, then the debtor is allowed the deduction, as long as it does not breach the subjective test of "substantial abuse"; a subjective test based on "real" objective figures. In 2005, BAPCPA introduced the "means test", an objective test based on contrived (i.e.- "fake") figures.
Stephen Saser's article ...
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The Bankruptcy Means Test, Is It The “Real” Test to Qualify for Bankruptcy?
A bankruptcy judge in Georgia ruled that a debtor would be refused a discharge even though he passed the Means Test. At the time of filing, the Debtor paid monthly mortgage payments of $3,273 per month. When calculating the Means Test, the Debtor deducted the mortgage payments, according to 707(b)(2)(A)(iii)(I). The U.S. Trustee objected to the deduction and asked the Court to dismiss the case pursuant to 707(b)(2) and 707(b)(3). The Court ruled the debtor was allowed to deduct mortgage expense, even though the debtor planned to surrender the property. Thus, the debtor passed the Means Test, BUT the Court then ruled that since the debtor ...
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Unemployment numbers and the “Geography of Recession”
Worried about unemployment? Wondering how much unemployment has increased in the last 3 years? Has it effected you? Bill Nolan of Nolan Elder Law sent me the link to this interesting multimedia view of the rising unemployment rate...very interesting. Thanks, Bill!
With unemployment rising, and likely will continue to rise, many people continue to face difficult financial decisions. If you are facing overwhelming debt, harassing debt collectors and/or foreclosure, call for a free consultation about your specific situation and options. Bankruptcy may not be the answer for you...but it might be. ...
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Alabama Foreclosures and Mortgage Delinquencies Still Rising
Foreclosures and Mortgage Delinquencies continue to rise despite government officials pressuring lenders to forestall foreclosure proceedings. After several months of pressure from Washington, mortgage lenders have begun revving up foreclosure proceedings.
What started, over a year ago, as a sub-prime only mortgage meltdown, has evolved into a full blown, across the board pandemic of mortgage delinquencies and foreclosures, including prime, Alt-A and subprime mortgages.
Several factors have combined to create this "perfect storm": declining real estate valuations, rising unemployment, reduced credit availability and the conscious decision ...
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Alabama Bankruptcy Judge allows lower interest rate
In re Crittenden: An Alabama Bankruptcy Judge, in In re Briana L. Crittenden, 19 CBN 1049In re Crittenden (Bankr. M.D. Ala. 2009), overruled an auto creditor's objection to the debtor's Chapter 13 plan, allowing a lowering of the interest rate. Debtor purchased a vehicle from the creditor five weeks prior to filing a Chapter 13 case. Due to unforeseen events, debtor filed Chapter 13. The net effect of the filing was that the monthly amount the creditor would receive was reduced from $400 to $315 per month. The Court reasoned that the debtor did not fraudulently incur the debt, and the plan did no significantly impact the creditor's ...
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Mortgage Delinquencies Still Rising
According to the Mortgage Bankers Association, the residential mortgage delinquency rate reached 9.24% at the end of the second quarter of 2009. The delinquency rate at the end of the second quarter of 2008, was 6.41%. This is the highest delinquency rate since the MBA started keeping records in 1972.
This does not include homes in the foreclosure process. At the end of the second quarter of 2008, 2.75% of homes were in foreclosure; at the end of the second quarter of 2009, the number of homes in foreclosure had increased to 4.3%.
The end result is that 13.16% percent of all home loans were either delinquent or in the process of ...
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Bankruptcy filings up 35%
Bankruptcy filings increased 35% from the first half of 2008 to the first half of 2009. According the the American Bankruptcy Institute, 681,217 bankruptcy cases were filed during the first half of 2009, whereas 503,749 bankruptcy cases were filed in the first half of 2008. This marks a continued upward trend in bankruptcy filings from 2005, when Congress passed the new bankruptcy legislation.
So what is driving the increased number of bankruptcy filing? Take your pick: unemployment, foreclosures, student loans, credit card debt, medical bills, etc...
Americans are over-leveraged; we have too much debt. It's going to take time (not more ...
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Banking Fees Cost You More Than You Think
Banking fees cost consumers more than they realize; banks under pressure from huge losses continue to increase those fees. Your "free checking" may be "bait" for other fees which can cost consumers hundreds of dollars per year. Be careful! In a New York Times article by Eric Dash, banks who received billions of dollars in bailout money (yes, the bailout money came directly from you and your taxes...it's the only money the government has), have thanked the taxpayer by turning around and raising fees even more. Should the banks be under an obligation to lower fees? NO! Should you (or me), the consumer, be under an obligation, or continue ...
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Hello, I am Matt Dunaway