Ninth Circuit Rules Automatic Stay Protects Abandoned Property A recent decision by the Bankruptcy Appellate Panel for the Ninth Circuit Court A recent decision by the Bankruptcy Appellate Panel for the Ninth Circuit Court of Appeals holds that foreclosure on property after the bankruptcy trustee has abandoned it will violate the automatic stay provisions of…

One major worry for those who file bankruptcy is that it will cause damage to their credit and prevent them from obtaining loans such as a mortgage in the future. Although bankruptcy will likely have an impact on the filer’s credit, it can still be possible to qualify for a mortgage as soon as one…

Court Allows Mortgage Creditor to Continue Legal Actions A recent 9th Circuit decision provides a noteworthy warning to homeowners considering bankruptcy. While bankruptcy may provide troubled homeowners with relief from losing their homes through foreclosure in certain situations, the bankruptcy courts are not an automatic shield. The court’s ruling in In re Alakozai demonstrates this,…

Chapter 13 bankruptcy has several tools to help persons who are struggling or unable to make payments on their car loans. For many Americans, a house and a car are two of the most valuable possessions they will ever own. A recent article from Bloomberg news reports that lenders today are allowing buyers to borrow…

In bankruptcy proceedings, creditors often challenge loans that were made to the debtor prior to the petition for bankruptcy and argue that the loans are equity rather than debt. This kind of challenge is called a “recharacterization challenge.” The complexity of these issues makes it important for creditors and debtors alike to understand the nature…

Consumers who make the difficult decision to file for bankruptcy face many challenges. In some cases, one of those difficulties may be posed by aggressive debt collectors. In one New Jersey case, a collector’s letter, which contained numerous alleged defects in violation of federal debt collection laws, placed it in hot water when the 3d…

Bankruptcy is intended to give debtors a fresh financial start. Through liquidation or reorganization, it allows them renewed hope and a new opportunity to meet their fiscal obligations. For student loan debtors, however, the path is far more complicated. A recent pair of articles in the Wall Street Journal point out that, for some debtors,…

Former ‘Gossip Girl’ Star Seeks Chapter 7 Protection Bankruptcy filers seek protection for a wide variety of reasons, and most do so for reasons other than just profligate spending. Such was the case for TV actress Kelly Rutherford, who filed for bankruptcy this summer. The actress was beset by dwindling income following the 2012 conclusion…

Earlier this summer, the 4th Circuit joined an increasing list of federal appeals courts to confirm that debtors need not include Social Security income in their Chapter 13 plan filings. In In re Mort Ranta, the 4th Circuit agreed with the 9th Circuit and others in highlighting that the 2005 bankruptcy reforms passed by Congress…

The recent economic downturn created, among many other problems, an abundance of people with many financed assets on which they were “underwater” or “upside down,” meaning that the outstanding balance on the loan was greater than the current value of the asset itself. One possible way to address assets upon which you are upside down…