As a bankruptcy attorney in Omaha, I frequently get questions about the “Means Test” by people who have spent a considerable amount of time on the Internet. I actually really enjoy these technical questions because we can jump right into the little nuances of the bankruptcy means test and how it works in the real…
Most people, including attorneys, do not fully grasp the power of a Chapter 13 bankruptcy. It is quite amazing how so many problems can be handled with such bankruptcy. Nothing else even comes close; not a Chapter 7 bankruptcy nor a Chapter 11 proceeding. The reason a Chapter 13 bankruptcy is so powerful lies in…
For better or worse, Nebraska allows mortgage companies, banks, and other lien holders to foreclose on real property without a court proceeding. The authority that provides for non-judicial “mortgage” loans is found at Neb. Rev. St. § 76-1018 et seq. and is commonly referred to as the Nebraska Trust Deeds Act. This Act allows lenders…
Bankruptcy is affordable and offers lasting protection if carefully planned. It’s the classic Chicken and the Egg problem. I need to file for bankruptcy but I can’t afford to file. It’s just too expensive. I need a cheap and affordable option. Chapter 13 is sometimes the best choice Most people are familiar with the concept…
What is Business Bankruptcy? Business bankruptcy is a topic frequently misunderstood. Sometimes, a corporate bankruptcy filing is what is meant. In other words, the corporation itself files bankruptcy, not the individuals that own the corporation. Corporations may generally file a Chapter 7 bankruptcy (to completely go out of business) or a Chapter 11 bankruptcy (to…
If you need legal advice concerning financial problems and specifically with possibly filing bankruptcy, you naturally want to get it done as cheap (and as good) as possible. In the world of Amazon, Facebook, and Google, many of us spend a lot of time doing research to find the best possible answers online, educate ourselves…
Anxiety is the worst. I have it. You have it. We all have it to some degree or another and none of us like it too much. Ok, so anxiety has its good quality: it is meant to keep you alive. That is a perk. Thank you, Anxiety. I appreciate that. But let’s face it,…
Sometimes bankruptcy is a good decision. Sometimes it is not going to help you at all. Most of the time when a person thinks of bankruptcy they think of a Chapter 7 bankruptcy. This is, in a nutshell, when a trustee will essentially take a person’s assets (if any) and use the proceeds (if any) to pay off the…
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…
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. In general, the old law allowed only the Head of the Household or individuals 65 years…
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…