Consumer Bankruptcy

This article helps practitioners advise clients whether they should file bankruptcy, with the top 7 reasons to file and not to file bankruptcy, the proper time to file bankruptcy, and the cost of filing. The article details 6 surprising bankruptcy facts that dispel client reluctance to file a chapter 7 bankruptcy and lists sources for finding a bankruptcy attorney and more bankruptcy resources.

A June Supreme Court ruling disallows a scheme by individuals to use a corporate bankruptcy of their closely held business to evade individual liability for fraud, UDAP, and tort claims. This article explains the holding’s implications for consumer claims involving corporations in bankruptcy and lists 12 steps victimized consumers can take to preserve their rights when faced with a corporate bankruptcy filing.

Effective July 1, a new Department of Education rule provides new relief for how a student loan borrower’s income-driven repayment plan is treated if the borrower is in a chapter 13 bankruptcy. The article explains four key new protections that the new rule will implement and provides four essential practice tips for dealing with student loans in a chapter 13 bankruptcy.

A February 22 Supreme Court ruling affects divorced or separated spouses and victims of economic abuse and coerced debt. The ruling encourages bankruptcy creditors to bring nondischargeability actions against innocent debtors based upon fraudulent actions of spouses or domestic partners. This article sets out five ways to counter such challenges and to discharge the debts in bankruptcy.

New federal Guidance should make it far easier to obtain a bankruptcy discharge of student loans. Completing a simple Attestation Form may lead to an agreement to settle the debtor’s undue hardship discharge proceeding. This article explains the new Guidance’s significance, scope, and limits, and then sets out in 10 steps the process to complete the Attestation Form and seek a discharge of student loans.

Effective December 1, 2022, three amendments to the Bankruptcy Rules go into effect that deal with the debtor’s notice to creditors or the U.S. trustee. In general, these amendments simplify the practice of consumer bankruptcy law and this article explains each rule amendment and how it changes existing bankruptcy practice.Effective December 1, New Rules Simplify a Consumer Bankruptcy Practice

The definitive consumer bankruptcy treatise is updated with new case law, an amendment increasing chapter 13 debt limits, new 2022 Bankruptcy Code dollar amounts, the new initial forms, rules effective December 1, 2021, and updated means test data. Learn more and read Chapter One here.

Effective April 1, consumers filing bankruptcy will be able to exempt more of their equity in their homes, cars, household goods, and even retirement accounts. This article describes all the bankruptcy dollar amount changes going into effect April 1.

Unpaid criminal justice debt can have draconian consequences, and this article explains how a bankruptcy filing can sometimes be effective in reducing that debt. Although criminal fines and restitution orders are not dischargeable in bankruptcy, other portions of a filer’s criminal justice debt may be dischargeable. The article also links to several resources covering this topic: a free May 13 webinar, a recent report, and NCLC treatises.

On December 1, extensive amendments to the Bankruptcy Rules go into effect. As analyzed in this article, of special note are rules dealing with mortgage loan payments in chapter 13 cases, electronic filing of bankruptcy forms, and with appeals from bankruptcy court to the federal district court.