The 2005 Bankruptcy Act is causing trouble in certain discharge of income tax cases. On October 17, 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (“BAPCPA”) became fully effective as the law of the land.  This bankruptcy law update made enormous changes to people needing to file bankruptcy.  Strangely enough, even after being on […]

Wells Fargo Bank violates Discharge Order in Omaha and gets nailed by Nebraska Bankruptcy Court for Sanctions Wells Fargo Bank wouldn’t just leave it alone.  Kevin and Amanda Hebner filed a bankruptcy in the United States Bankruptcy Court for the District of Nebraska on or about November 13, 2008.  During that proceeding,  the debtors’ attorney sent a letter to […]

My last two blogs have focused on wiping out student loan debt.  The first blog, Wiping out Student Loans in bankruptcy is difficult discussed the general guidelines to obtaining a discharge of a student loan in a bankruptcy proceeding.  In general, it is a very challenging and frequently fruitless endeavor but not necessarily impossible.  My […]

A few weeks back, I blogged about how it was very difficult to wipe out a student loan in bankruptcy.  Everything mentioned in that blog still applies, including the fact that wiping out student loans in bankruptcy is very difficult.  Now the question presented is whether or not “private student loans” are dischargeable in bankruptcy.  After all, […]

8th Circuit Bankruptcy Appellate Court (controlling in Nebraska and Iowa) denies discharge of student loan debt It’s a very tough situation.  Very, very tough.  Getting rid of student loan debt in a bankruptcy is a serious challenge but not necessarily impossible. In a decision filed on October 27, 2014, the Bankruptcy Appellate Panel for the 8th Circuit Court […]

U.S. Supreme Court rules against exempting inherited IRAs in Bankruptcy On June 12, 2014, the United States Supreme Court ruled that an individual that owns an inherited IRA may not protect or exempt the same if they file bankruptcy.  In the case of Clark v. Rameker, Trustee, the Debtors in bankruptcy attempted to exempt approximately […]

Nebraska Legislature Expands Protection of the Homestead but other bills fail to pass Previously, certain individuals could not protect the equity in their house if they encountered financial trouble in Nebraska.   (Please see my earlier bankruptcy exemption blog from January 23, 2013) In general, the old law allowed only the Head of the Household or individuals […]

Bankruptcy – Fact v. Fiction There are so many myths surrounding the bankruptcy process and many of these myths prevent people from considering filing for bankruptcy to relieve the financial stress.  Some common myths are discussed here. A medical bankruptcy. Fact and Fiction.  A “medical bankruptcy” is not an official bankruptcy term.  However, many bankruptcies […]

Do you know what the difference is between chapter 13, chapter, 11, chapter 7, and all other types of bankruptcy? Unless you are a legal expert, probably not. If you are facing the possibility of filing for bankruptcy, however, it is imperative that you understand the different classifications so you file for the correct chapter. […]

An Update on the “Tool of the Trade” Exemption in Nebraska I recently posted a blog that discussed lien avoidance and the “tool of the trade” exemption in Nebraska.  The “tool of the trade” exemption was under fire after a local bankruptcy Judge ruled that a vehicle was no longer protected under the exemption if […]

What do you know about filing for bankruptcy? Perhaps you’ve heard the word before on the news, or maybe even had friends who filed bankruptcy, but what do you actually know about bankruptcy?  More importantly, if you are considering filing bankruptcy, what things should you know? Well, obviously, bankruptcy law is complex and one short […]

Is an overpayment of unemployment compensation dischargeable in bankruptcy? Maybe.  I say “maybe,” because technically, an overpayment of unemployment benefits is automatically discharged in bankruptcy unless the state objects to the discharge of that particular debt.  If you live in Nebraska, you can surely expect that the Nebraska Department of Labor will object to the discharge […]

What are bankruptcy exemptions and why are they important? Bankruptcy exemptions are extremely important to anyone thinking about filing bankruptcy with equity in their assets.  They are you financial “shield” and are what protect your stuff.  For example, can you keep your car and furniture if you file bankruptcy?  Will you be able to keep your […]

There is no such thing as a “legal” ZERO ($0) down Chapter 7 bankruptcy BEWARE consumers!  While the economy is in very tough shape and the need to financially protect yourself has never been greater, the truth remains that “Zero Down” Chapter 7 cases are unethical and illegal.  While the vast majority of bankruptcy attorneys […]

A Chapter 13 bankruptcy requires monthly payments for a period of 36 to 60 months.  Contrary to popular belief, Chapter 13 bankruptcies are very effective and provide an affordable option for people to reduce and consolidate their debts.  In many ways, a Chapter 13 is everything that a debt settlement should be and is, in […]

What is a discharge? The definition, according to the Webster Dictionary, is “to end the service of (someone) in a formal or official way.” According to the Black’s Law Dictionary, a discharge is “any method by which a legal duty is extinguished; esp., the payment of a debt or satisfaction of some other obligation.” In […]

Tax day Now that the holidays are over there isn’t much to look forward to between now and the summer months.  Sure, there’s Valentine’s Day (welcome back, House of Cards), St. Patrick’s Day (green beer!), and don’t forget to mark your calendars for March 1st, National Pig Day. But don’t overlook the importance of TAX […]

What is a lien avoidance and why is it important? I recently passed my sixth year as a practicing bankruptcy attorney. Over these years my experience has impacted my advice to clients. One of my first memorable experiences involved a powerful tool under the bankruptcy code is known as “lien avoidance.” Basically, “lien avoidance” is […]

For starters, do we even need to mention that bankruptcy isn’t for everyone? Let’s get this out of the way first:  Nobody wants to file bankruptcy if they don’t have to.  Quite the contrary is true based on my personal observation as a bankruptcy attorney in Omaha for the last 24 plus years.  But, sometimes […]

Ignoring unpaid bills often make the problems multiply Taking action is hard.  Sometimes, simply ignoring the growing pile of bills or avoiding the endless phone calls seems easier than facing what might be inside the envelope or who might be on the other end of the phone line.  But, merely ignoring debt problems won’t make […]

How Medical Care can Lead to Bankruptcy Of all the trials the American people face, perhaps none is more troubling than the financial difficulties brought on by the rising costs of consumer goods and services such as health care. The state of the economy changes every day, which naturally results in fluctuating prices for certain […]

It’s almost never too late for Bankruptcy to stop a Judgment or Garnishment I am often asked questions about whether or not it is too late to file bankruptcy to wipe out a judgment or garnishment.  Common questions include: Will a bankruptcy wipe out a judgment? Is it too late to file bankruptcy if I […]

With today’s economy and a vast number of people hurting financially, the search for a “cheap bankruptcy attorney” is on the rise.  Although Omaha and the metro area missed a lot of the early months of the great recession, it has finally caught up to Nebraska and Iowa. Understandably, people needing to file bankruptcy are […]

Collection lawsuits are rampant in Omaha, Nebraska As of March 5, 2013, over 4,700 lawsuits have been filed in the County Court of Douglas County, Nebraska for 2013 alone!  That averages out to be 104.4 new lawsuits every business day.  And, that’s just in Douglas County.  In Sarpy County, Nebraska , approximately 981 new lawsuits were […]

Can I protect the equity in my house in Nebraska if I file bankruptcy? Normally, the answer is yes, up to $60,000.  But, not everyone qualifies for this exemption.  The bankruptcy homestead exemption law in Nebraska is geared toward protecting families and people 65 years of age or older.   Thus, if you are married […]

Millions of Americans are facing a student loan debt crises.  The young, in particular, have collectively been robbed and cheated of a bright economic future by crushing amounts of student loan balances.  Out of desperation for a solution, more and more people are wondering if bankruptcy of some sort could deal with this problem.  Unfortunately, […]

As a bankruptcy attorney, a very common scenario that I experience is a person that is facing a foreclosure or is worrying about owing money after a foreclosure sale, short sale or deed in lieu of foreclosure. With so many foreclosures in the recent past and with many more in the works, a lot of […]

Paying back loans and debts owed to family members is extremely important to most people.  But, if you really care about them, please don’t pay them back before you file bankruptcy! Paying back family loans before bankruptcy causes problems for them. As the saying goes, no good deed goes unpunished.  This is especially true when you […]

Inheritances and bankruptcy.  Can I keep it? Few areas of consumer bankruptcy law cause more confusion and frustration than the issue of an inheritance.  Part of this reason is likely due to the fact that a loved one has recently died and this was their money and is was intended for me!  There is a natural […]

Tax refunds and bankruptcy.  Is it safe? Every year, around the time that tax refunds start coming in, there are a lot of unnecessary tears shed at bankruptcy hearings in Omaha and Council Bluffs.  Why?  Because there is a limit on what can be protected under the exemption laws of every state.  Nebraska and Iowa have different […]

It’s a hard decision to make:  Do I use my retirement funds and try to avoid bankruptcy, or do I just file bankruptcy to begin with? Author and financial commentator Jane Bryant Quinn addressed this issue with her article in The Daily Beast (a subsidiary of Newsweek magazine) on January 3, 2009.  Quoting from Katie Porter, […]