Source: http://bankruptcymarietta.com/tag/bankruptcy/
Timestamp: 2018-03-23 03:20:32
Document Index: 111494132

Matched Legal Cases: ['§544', '§5', '§546', '§544', '§ 547', '§ 544']

bankruptcy Archives - Bankruptcy Attorney | Marietta Georgia
An Equitable Argument by an Unperfected Secured Creditor
An Equitable Argument by an Unperfected Secured Creditor. Has the court ever heard an equitable argument made by an unperfected secured creditor? The answer is yes. Here’s the story.
In a case of very unfortunate timing, a creditor loaned a business $500,000.00 to keep its doors open, took a security interest in the Debtor’s assets to secure the loan, and filed a UCC financing statement five days later to perfect the lien. However, on the day after the loan, and four days prior to perfection of the lien, an involuntary petition was filed against the Debtor. In re Millivision, 474 F.3d 4 (lst Cir. 2007). In this case the creditor argued that the “strong-arm” pro visions of §544 “offended the underlying equitable principles of the Bankruptcy Code by conferring a “windfall” cash infusion…” Further, it was argued that the “relation-back” provision of §5 47(e) (which allows transferees a grace period to perfect a transfer) constitutes “any generally applicable law” under §546(b), which limits the rights of a Trustee to recover under §544. Affirming the lower Courts, the First Circuit rejected the § 547(e) argument, finding that a subsection applicable to prefer entail transfers is not “generally applicable law” for purposes of the strong-arm powers under § 544 (b). The Court then noted that the creditor could have perfected its lien prior to making the loan, and “under long-established principles. Therefore the court found that petitioner’s lack of diligence precludes equity’s operation”. So yes a court has heard an equitable argument by an unperfected secured creditor and lost the argument. If you have a question about your perfected interest, please see a bankruptcy attorney.
For more information about Bankruptcy and Disability Income – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081. Evening and Weekend hours are available to meet with an attorney. If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.
This entry was posted in Debt Collectors, Debts, Pre-Petition and tagged bankruptcy, Secured Creditor, unperfected interest on August 15, 2016 by Cynthia J Remboldt.
Alimony Dischargeable in Bankruptcy
Is Alimony dischargeable in Bankruptcy? It might be, it depends on many factors.
Generally speaking, one of the most significant changes in the bankruptcy code in 2005 (BAPCPA) is that all domestic relations obligations created by a divorce decree or separation agreement are non-dischargeable. The spousal support defined as Domestic Support Obligations are non-dischargeable in every chapter, but non-support obligations under 523 (a)(15) MAY BE dischargable in a Chapter 13 plan.
How do we know if alimony is dischargeable in a chapter 13 bankruptcy? The court will consider the substance of the underlying obligations, as well as the relative financial circumstances of the parties at the time of their divorce. To ascertain the intent of the parties and the substance and function of the obligation, a bankruptcy judge may consider any or all of the following factors:
(1) The amount of alimony, if any, awarded by the state court and the adequacy of any such award;
(2) the need for support and the relative income of the parties at the time the divorce decree was entered;
(3) the number and age of children;
(5) whether the obligation terminates on death or remarriage of the former spouse;
(6) whether the obligation is payable over a long period of time;
(7) The age, health, education, and work experience of both parties;
(8) whether the payments were intended as economic security or retirement benefits;
(9) the standard of living established during the marriage.
If your spouse is trying to discharge your alimony you need to see an attorney right away to make sure your rights are protected. Alternatively, if you need to discharge alimony, an experienced attorney can help you determine how the court is likely to view your case.
For more information about Bankruptcy and if alimony dischargeable in bankruptcy – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081. FREE consultations can be scheduled by calling 404-348-4081. Evening and Weekend hours are available to meet with an attorney. If bankruptcy turns out to be the best way to move forward considering your alternatives, goals and financial challenges, payment plans are available if you need them.
This entry was posted in Domestic Support Obligation, Property of the Estate and tagged alimony, bankruptcy, dischargeability of alimony, domestic support obligation on June 20, 2016 by Cynthia J Remboldt.
Bankruptcy Eligibility for Chapter 7
Bankruptcy Eligibility – As a bankruptcy attorney, I get this question all the time, who can file a chapter 7 bankruptcy? The answer is everybody with some exceptions, I have made a list of the common reasons that make you not bankruptcy eligible for a chapter 7.
(1) If you have been granted a discharge in a chapter 7 case that was filed within the last eight years.
(2) If you have been granted a discharge in a chapter 13 case that was filed within the last 6 years, unless 70% or more of your unsecured claims were paid off in the chapter 13 case.
(3) If you have obtained court approval of a written waiver of discharge in the previous chapter 7 case.
(4) If you conceal, transfer, or destroy property with the intent to defraud creditors or the trustee in the chapter 7 case.
(5) If you conceal, destroy or falsify records of your financial condition or business transactions.
(6) If you make false statements or claims in the chapter 7 case, or you withhold recorded information from the trustee.
(7) If you fail to satisfactorily explain any loss or deficiency of your assets.
(8) If you refuse to answer questions or obey orders of the bankruptcy court, either in your bankruptcy case or in the bankruptcy case of another person such as a relative, a business associate, or a corporation in which you have a relationship.
(9) A person who, after filing a bankruptcy, fails to complete an instructional course on personal financial management.
(10) A person who has been convicted of bankruptcy fraud.
(11) A person who owes a debt arising from a securities law violation.
If you have question about bankruptcy eligibility for chapter 7 bankruptcy, it is best to contact a bankruptcy attorney who can discuss your situation specifically. There are many exceptions to the bankruptcy eligibility rules, and only an experience bankruptcy attorney can assist you in determining if those exceptions apply to your specific case.
For more information about Bankruptcy – contact Cynthia Remboldt, at the Remboldt Law Firm at 404-348-4081.
This entry was posted in Eligibility and tagged bankruptcy, Chapter 7 eligibility, filing a chapter 7 bankruptcy on June 7, 2016 by Cynthia J Remboldt.
Bankruptcy tax refund.
Bankruptcy Tax Refund. This is an article about what happens when there is a tax refund and the IRS files an offset.
Here’s an example of what happens. A debtor filed a chapter 13 bankruptcy. After the filing the IRS retain a portion of the debtors income tax return. The Debtor sought to recover his bankruptcy tax refund, retained by the IRS in his chapter 13. The IRS had retained a portion because it had been set off by the IRS against a priority tax liability. In re Jones, 359 B.R. 837 (Bkrtcy. M.D. Ga. 2006).
Judge Walker analyzed the three different approaches to this issue:
(1) the majority view that an IRS setoff under $553 is not permitted by the bankruptcy court for exempt property. See In re Jones, 230 B.R. 875 (M.D. Ala. 199); In re Alexander, 225 B.R. 145 (Bkrtcy. W.D. Ky. 1998);
(2) The minority view, that the setoff by the IRS is allowed, See In re Wiegand, 199 B.R. 639 (Bkrtcy. W.D. Mich. 1996); or
(3) An emerging view that the “overpayment” by the Debtor does not become a “refund” until and unless all setoffs have been applied, See Beaucage v. U.S., 341 B.R. 408 (D. Mass. 206); In re Baucom, 339 B.R. 504 (Bkrtcy, W.D. Mo. 2006); In re Pigott, 330 B.R. 797 (Bkrtcy, S.D. Ala. 2005).
The Court in this case chose the third options, premised on 26 U.S.C. S6402, which specifically allows setoffs from “overpayments”. From the characterization of the claim as an “overpayment”, it follows that the setoff is allowed and, after it is applied, only then does any excess become a ‘refund” which is an asset of the debtor, or the bankruptcy estate.
This entry was posted in Property of the Estate, Taxes and tagged bankruptcy, IRS, tax offset, tax return, taxes on May 2, 2016 by Cynthia J Remboldt.
Are taxes dischargeable in bankruptcy? The short answer is “sometimes”. If the debts are relatively old and they meet several other conditions, the taxes are dischargable in a bankruptcy; however, you may have to file a complaint in the bankruptcy court to have a Judge determine the dischargeablity of the taxes debts in order to have the IRS honor the discharge.
Generally speaking, for taxes dischargeable in bankruptcy, you must meet all of these conditions:
1 You filed a legitimate tax return.
2 The tax returned was filed at least two years before filing bankruptcy.
3 The tax liability you want to discharge was due at least three years before filing bankruptcy.
4 The IRS has not assessed your liability within 240 days.
5 You did not willfully evade payment of a tax.
A couple of additional notes. Penalties for the taxes dischargeable in bankruptcy are also dischargeable, if the taxes are dischargeable in bankruptcy. But courts are split as to whether you can discharge tax penalties of nondischargeable taxes.
However, if the taxing authority has put a lien on your property, the lien will remain after your bankruptcy. You will have to pay off the lien before you can sell the real estate will a clear title even if the tax was discharged.
As you can see it’s COMPLICATED! If you are considering bankruptcy because of your tax debts, consider a consultation with a bankruptcy attorney experienced in discharging taxes in a bankruptcy.
A word of caution, if you get a loan to pay taxes what would otherwise not be discharged in bankruptcy, you can not eliminate that debt in a chapter 7 bankruptcy. You can’t turn nondischargeable taxes in a bankruptcy into a discharageable debt in a chapter 7 bankruptcy. A chapter 13 might be a better alternative for you in this case.
This entry was posted in IRS, Tax Lien, Taxes and tagged bankruptcy, dischargeability of taxes, IRS, tax lien, taxes on April 26, 2016 by Cynthia J Remboldt.
Bankruptcy and Disability Income
Bankruptcy and Disability Income. Is Disability Income considered income or property of the estate? Here’s a case where the court addressed bankruptcy and disability income.
In 1995, the debtor was diagnosed as suffering from depression. When he filed his Chapter 7 petition in 2000, he was receiving approximately $11,400.00 per month from a former employer as disability insurance, while he continued to work for a subsequent employer. Four days post-petition, the debtor ceased employment. Over a year later he submitted a disability claim to his second employer, seeking benefits retroactive to 1995 (the date the depression disability began). The claim was denied as to the time prior to termination of employment, but granted going forward, from the date employment ceased. This left the Debtor with monthly payments from disability insurance of approximately $21,700.00. The Trustee sought turnover of the disability payments as assets of the bankruptcy estate. In re Stinnett, 465 F.3d 309 (7th Cir. 2006).
Affirming the Bankruptcy and District Courts, the Circuit Court initially found that an insurance contract in which the debtor has an interest pre-petition, generally consituties property of the estate. Further, payments from such insurance contract in which the debtor has an interest pre-petition, generally constitutes property of the estate. Further, payments from such insurance policies, to the extent the debtor has a right to receive and keep such payments, are proceeds of estate property, which are also property of the estate. The court then addressed the debtor’s argument that this disability payment represented post-petition personal services income, which is exempt from becoming estate property under 541(a)(6). The debtor asserted that his entitledment to the payments was predicted on his inability to obtain personal services income, making them a “substitute” for such earnings, and their equivalent. Rejecting this argument, the Court cited In re Prince, 85F.3d 314 (7th Cir. 1996), holding that the “post-commencement earnings exception should be interpreted ‘extremely narrowly’ and ‘excepts only earings from services actually performed by an individual debtor.”
Therefore, “earnings obtained solely by virtue of the inability to perform services cannot be considered the legal equivalent of ‘earnings from services performed.”
This entry was posted in Property of the Estate and tagged Automatic Stay, bankruptcy, Dischargable Bankruptcy Debts on April 21, 2016 by Cynthia J Remboldt.