The Bankruptcy Blog

Scary New Trend on Wiping Out Tax Debt in Bankruptcy

Scary New Trend on Wiping Out Tax Debt in Bankruptcy

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 Gets Hammered!

Wells Fargo Gets Hammered!

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…

Private Student Loans Barred by the Statute of Limitations

Private Student Loans Barred by the Statute of Limitations

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…

Can You Wipe Out Private Student Loans in Bankruptcy?

Can You Wipe Out Private Student Loans in Bankruptcy?

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…

Wiping Out Student Loans in Bankruptcy is Difficult

Wiping Out Student Loans in Bankruptcy is Difficult

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,…

Inherited IRAs Are Not Exempt in Bankruptcy

Inherited IRAs Are Not Exempt 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 $300,000 from an inherited IRA.  The Clarks had argued unsuccessfully…

Bankruptcy Homestead Exemption Updated in Nebraska

Bankruptcy Homestead Exemption Updated in Nebraska

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…

Bankruptcy Fact vs. Fiction

Bankruptcy Fact vs. Fiction

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…

2 New Developments in Nebraska Bankruptcy Exemptions

2 New Developments in Nebraska Bankruptcy Exemptions

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…

Will Bankruptcy Discharge an Overpayment of Unemployment Funds?

Will Bankruptcy Discharge an Overpayment of Unemployment Funds?

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…

Better Bankruptcy Exemptions Proposed for Nebraska in 2014

Better Bankruptcy Exemptions Proposed for Nebraska in 2014

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…

A Zero Down Chapter 7 Bankruptcy is Unethical & Illegal
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A Zero Down Chapter 7 Bankruptcy is Unethical & Illegal

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…

Tax Refunds and Bankruptcy: A Busy Time of the Year

Tax Refunds and Bankruptcy: A Busy Time of the Year

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,…

Powerful Tool in Bankruptcy – Lien Avoidance

Powerful Tool in Bankruptcy – Lien Avoidance

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…