Bankruptcy Alphabet

I believe the world view of even the thought of filing bankruptcy is financial suicide for many people.  They believe their financial lives, credit scores, reputations and even careers are over.  It’s like the “Scarlet Letter” “B” is written, stitched, into the fabric of the rest of their lives.  When networking, I’ve even said that […]

When it comes to bankruptcy, the rules are found in the Bankruptcy Code.  The moment a debtor becomes bankruptcy by filing their case, an impartial person must be appointed by the court to represent the collective interests of creditors and to control and administer the bankruptcy estate. That person is called a TRUSTEE. Thus, in […]

Student loan debt now exceeds credit card debt in the U.S. according to this recent article, When Student Loans Attack. With so many young people unable to get work due to the lagging economy and lack of job experience, it’s natural for them to seek respite in colleges. Unfortunately, tuition is not getting any lower […]

Federal Rules of Civil Procedure (F.R.C.P.)  §17 governs who may sue or be sued and it is this rule that creates particular problems when loan servicers and other entities file Proofs of Claim in a debtor’s Chapter 13 bankruptcy case. Rule 17 is incorporated into Federal Rules of Bankruptcy Procedure (F.R.B.P.)  §3001, which requires a […]

Since the mortgage crisis of 2008, we’ve heard a lot about the mysterious and elusive “robo-signors,” who crop up like cockroaches.  Just when you think you’ve killed one off, another name shows up.  They have been working in the back rooms of national law firms and loan processing companies like Lender Processing Services, and one […]

Do you feel powerless over your financial situation and the state of the economy? That’s why in my bankruptcy alphabet, P is for Power. When you power down your debt, you power up your fortune.  So, the question you must ask yourself is, how long do you want to remain in debt? You have the […]

“In enacting Assembly Bill No. 506 on October 9, 2011, California weighed in by adopting additional legal hurdles before a California municipality may file for Chapter 9 protection. Assembly Bill No. 506 requires a new “neutral evaluator process” prior to filing, which effectively mandates mediation under the auspices of a third party neutral, among the […]

A Levy is the Sheriff’s seizure or taking control of property pursuant to a writ.  More simply, when a creditor obtains a judgment against you in a court of law, they then have the power to take property from you to satisfy their judgment.  It is important to understand that a creditor does not automatically […]

Kaput is defined as utterly finished, defeated, or destroyed.  Kaput also includes being unable to function; or hopelessly outmoded.  In the context of filing for bankruptcy, Kaput means that those who file for bankruptcy are financially defeated.  This perspective of being financially destroyed by bankruptcy is what the creditors want you to think.  The banks […]

There is a second wave of bankruptcy filings that will hit a tsunami level in 2013 according to Judge Julia Gibbons.  In my bankruptcy alphabet, J is for Judge. In April, 2012 the Washington Examiner chronicled A Second Bankruptcy Explosion Expected After Election Day where Julia Gibbons, chair of the Judicial Conference of the United […]