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 obtain 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 obtaining student loan debt relief in bankruptcy is very difficult. Now the question presented is whether or not “private student loans” are dischargeable in…
It’s a very tough situation. Very, very tough. Getting rid of student loan debt in 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 of Appeals denied a bankruptcy discharge of student loan debt to Kathryn Nielsen. In its decision,…
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 $300,000 from an inherited IRA. The Clarks had argued unsuccessfully…
Nebraska Legislature expands protection of the homestead exemptions, 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…
There are so many myths surrounding the bankruptcy process and many of these myths prevent people from considering filing for bankruptcy to relieve 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 are based on medical-related debts. Medical…
Do you know what the difference is between Chapter 7, Chapter 11, Chapter 13, 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…
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 of the debt owed to them specifically. Other states…
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…
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 are ethical and follow the law, there are always exceptions and I just recently…
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 DAY! Yes,…
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…
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 them magically disappear. In reality, ignoring unpaid bills…
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 products, but in recent years the concern…
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 filed in 2013 in the County Court…
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. Nebraska Bankruptcy Homestead Exemption The bankruptcy homestead exemption law in Nebraska is geared toward protecting families and people 65 years of age or older. Thus, if…