Category: Bankruptcy

"Fee Only" Chapter 13 Filings are Not Necessarily Made in Bad Faith

Bankruptcy courts have expressed mixed views on fee-only plans as their experience accumulates. In a recent case, the Chapter 13 debtor proposed a 36-month plan paying $100 per month to the trustee. Out of this money, $2,900 was to go to the debtor’s attorney. The bankruptcy court denied confirmation citing In re Buck, 432 B.R.

Another Take on Florida's Wild Card Exemption in Bankruptcy

In the recent case of in re Kehoe, the Chapter 7 Trustee filed an Objection to a Debtor's Claim of Exemptions against the Debtor. The Debtor owns his home as a tenant by the entireties (TBE) with his wife. And, they used the TBE exemption to fully exempt the marital house. The Debtor did not

TaxMasters Files for Bankruptcy

TaxMasters, the tax-resolution firm, sought bankruptcy protection after coming under fire from multiple states’ attorneys general. The company listed debt of more than $1 million and assets of less than $50,000 in Chapter 11 documents filed in the U.S. Bankruptcy Court in Houston. TaxMasters said it has between 1,000 and 5,000 creditors. The company estimates

Using Tax Refunds to Pay for Bankruptcy Fees

While saving up to declare bankruptcy sounds odd, that’s exactly what many people have had to do. Ever since the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act was passed. Many families wait for their tax refund to file for bankruptcy. This trend has been increasing as costs related to the filing have gone up.

Senator Durbin Targets Private Student Loan Defaults

A top Senate Democrat took aim at the private student-loan industry, calling for new rules that would allow wiping away of educational debts during bankruptcy. Majority Whip Richard J. Durbin (D-Ill.) convened a Senate judiciary subcommittee hearing Tuesday to address what one consumer group has called the nation’s next potential “debt bomb.” Research by the

Pride may be a Bad Reason to Avoid Bankruptcy

For years economists and financial advisers have scratched their heads and wondered how so many Americans wound up in bankruptcy. The numbers show that total U.S. bankruptcies are in decline. U.S. bankruptcies dropped by 12% from November 2010 to November 2011. The total number of U.S. consumer bankruptcies should come in lower than 1.4 million.

Are Fewer People Benefitting from Bankruptcy?

Consumer debt, which drove almost 1.37 million consumers into bankruptcy during 2011, is on the rise. Yet, consumer bankruptcies slowed down last year from the 1.55 million bankruptcy filings in 2010, a decline of 12 percent. Some experts attribute it to more cautious consumer spending and a decline in credit card debt. Others say that

Student Loan Delinquency Reached $85 billion in the 3rd quarter of 2011

The Federal Reserve Bank of New York posted a report on their website recently regarding student loans. The following is some of their findings: If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 954-484-9987. Or, send an e-mail to emil@fleysherlaw.com, or complete the contact

High-End Mortgages Not Immune from Foreclosure

It has been five years since the housing market first began to crash and with many middle and working-class Americans still facing foreclosure; it may come as a surprise to know they’re not alone. Over 36,000 homes valued at $1,000,000 or more have been foreclosed on in 2011 alone. While this accounts for less than

CFPB Proposes to Add Greater Restrictions on Debt Collection Firms

The Consumer Financial Protection Bureau (CFPB) proposed rules to supervise large debt collectors and credit reporting agencies. The rule covers consumer debt collectors, including law firms, earning more than $10 million from the activity. This works out to 4 percent of consumer debt collectors; but about 63 percent of annual receipts from the debt collection