The three toughest questions at your bankruptcy hearing. The three toughest bankruptcy hearing questions are NOT what most people expect.  The bankruptcy trustee does NOT ask you to explain how you got into this mess. They are not asking about your plans for the future.  And the creditors are NOT there demanding their money. Have […] The post The three toughest questions at your bankruptcy hearing by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

   In denying a request to avoid a judgment lien recorded in 2009 in a chapter 7 bankruptcy filed in 2010, the court found that laches barred the debtor's request.  In re Horvath, 2021 Bankr. LEXIS 238, case NO 10-60520 (Bankr. N.D. Ohio, 2 February 2021).  The creditor has been scheduled on the no-asset bankruptcy, which was discharged in 2010.  The creditor renewed it's lien in 2014 and 2019.  Debtors reopened the case in September 2020 and sought to avoid the lien, which was opposed by the creditor.     While finding that this was the type of lien that is avoidable under 11 U.S.C. §522(f), the court agreed with the creditor that laches prevented granting of the request.  The 6th Cir. B.A.P. had previously recognized that laches may prevent belated avoidances.  In re McCoy 560 B.R. 684 (B.A.P. 6th Cir. 2016); In re Yonish, 2016 Bankr. LEXIS 650, 2016 WL 832587 (B.A.P. 6th Cir. 2016).  While Rule 5010, Fed. R. Bankr. Proc does not establish a time limit for a debtor to reopen a case to avoid a lien, the BAP found that if the delay associated with the reopening of the case is accompanied by a demonstration of prejudice to the creditor as a result of such delay, the request may be denied.  The court was troubled by the debtor's failure to identify the lien at the time the case was filed.  There was no dispute that the lien existed at the time the case was filed, nor is it disputed it was properly filed.  Such records were available through a simple online search.  Sanctions had been considered against debtor counsel in prior cases when counsel had not employed such external verification tools that were available and not cost prohibitive.1  When debtors own real estate, and are aware a judgment was filed, such lien search should be perfunctory, and failure to do so does not satisfy the 'reasonable investigation' requirement.  Even though the fault for such omission lies with counsel, they are bound by his act or omission.2    The creditor in this case had incurred additional costs to maintain the lien, in twice renewing the lien, and in maintaining records of the loan and interest for the past decade.  It also responded to two inquiries regarding title searches in 2017 and 2019 and incurred the cost for the current defense against the lien avoidance.  While Debtors counter that they would have incurred some of these expenses anyway as there was a non-debtor third party, they acknowledge that some expenses were incurred, and offered to mitigate the damages.  They requested that the court balance the equities, but there court noted there is no requirement to do so.   Author note: Every debtor counsel should have a checklist to follow prior to filing, which should include pacer searches for prior filings, court record searched, official record searches, vehicle information searches, and property record searches.  While state law may provide alternative methods to eliminate judgment lien's on homestead (ie §§55.145, 222.01 Florida Statutes) this does not eliminate counsel's duty of due diligence.  However,  courts should also consider that  the due diligence standard is evolving over time to be more stringent, and courts should also keep this in mind.    The case also raises the issue whether such malpractice could be an asset of the bankruptcy estate, giving the debtor little or no remedy.    1 In re Parikh, 508 B.R. 572, 585 (Bankr. E.D.N.Y. 2014) (citing Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 404, 110 S. Ct. 2447, 110 L. Ed. 2d 359 (1990)).2 Dreier v. Love (In re Love), 3 Fed.Appx. 497, 498 (6th Cir. 2001) (unpublished) (citing Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P'ship, 507 U.S. 380, 396-97, 113 S.Ct. 1489, 123 L. Ed. 2d 74 (1993).↩↩Michael BarnettMichael Barnett, PA506 N Armenia Ave.Tampa, FL 33609-1703813 870-3100https://hillsboroughbankruptcy.com  

If you are disabled, you may be eligible for monthly Social Security Disability Insurance (SSDI) payments. To qualify for SSDI, your condition must be serious enough to limit your ability to earn a living. Earning a living does not necessarily mean you cannot work – you may still work and earn some money while you […] The post SSDI Income Limits 2021 in Pennsylvania appeared first on .

Did you know that in Pennsylvania, you do NOT need a license to carry a firearm in order to purchase a gun?  You don’t need a license to own a gun either.  Finally, you don’t even need a license to keep a gun in your home or place of business. So when do you need […] The post What Are the Gun Laws in Pennsylvania? appeared first on .

People who owe others money are sometimes used to phone calls, emails, letters, or other communications from creditors and debt collectors. While creditors are allowed to collect the money owed to them, there are specific rules they must follow. When a debt collector’s behavior crosses the line into harassment or abuse, you have legal options. […] The post When is it Creditor Harassment in Pennsylvania? appeared first on .

People who file bankruptcy sleep better. Ninety four percent of people surveyed said they slept better after filing bankruptcy. That’s the result of a 2019-2020 study taken through SurveyMonkey.com of former clients who filed bankruptcy with us three or four years before.  One hundred four people participated in the survey.      Getting good sleep […] The post File Bankruptcy and Sleep Better by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

A Mortgage Forbearance Might Not Get You a Mortgage Deferment A mortgage forbearance under the CARES Act is NOT the same as a deferment. At the end of a mortgage forbearance, you are behind by the exact number of payments they allowed you to skip.  A deferment means you are not behind. Mortgage companies are […] The post Forbearance Might Not Mean Deferment by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

The tax season is upon us, and the tax deadline is coming up on April 15th, 2021. Many of us are looking forward to receiving a nice-sized income tax refund check. But, for people thinking about bankruptcy, there are many questions to consider.  What happens to your tax refund check if you plan to file for bankruptcy?Can you lose your tax refund?Should you wait to file your taxes?  In this article, Wynn at Law, LLC’s bankruptcy attorney Shannon Wynn explains how you can file for bankruptcy and keep your income tax refund. Should I wait to file my income taxes if I am considering bankruptcy? Are you contemplating filing for Chapter 7 or Chapter 13 bankruptcy this year? If so, you may be wondering about the best timing for your bankruptcy. One common consideration is if it is better to file bankruptcy before or after filing your income taxes. Each individual’s situation is unique. A bankruptcy attorney can help you decide when is the best time for you to file. Generally, Wynn at Law, LLC’s bankruptcy attorney, Shannon Wynn, recommends filing your bankruptcy petition after filing your income taxes. In most cases, this is the best scenario. If you file for bankruptcy before filing your 2020 income taxes, the bankruptcy trustee may request you file your 2020 taxes quickly after your bankruptcy filing. Filing your taxes prior to filing bankruptcy, will also help your bankruptcy attorney give you the best advice on any refunds you are entitled to receive from the state or federal government.  Your income tax refund and the bankruptcy estate Your bankruptcy estate consists of all the assets you own when you file your Wisconsin bankruptcy case. Your income tax refund amount is included in your bankruptcy estate. That means the bankruptcy trustee may be able to use the refund to pay your creditors, whether you have already received the check or if you are still expecting the refund check.  It is possible to protect your income tax refund check from the trustee, but that will depend on the allowable amount you can exempt by law and is influenced by the other assets you need to exempt. It is essential to consult with a bankruptcy attorney to pre-plan your bankruptcy estate and exemptions.  Ways to keep Your income tax refund check when filing for bankruptcy You can spend your tax refund prior to filing bankruptcy without getting into trouble with the bankruptcy trustee if you spend it the right way. This list includes living necessities, such as mortgage payments or rent, food, car repairs, and a few others. Ask a bankruptcy attorney what expenses qualify.  It is important to remember that some expenses and utilities can be paid, such as medical bills, but may not be a good idea to pay prior to filing bankruptcy. Once you file your bankruptcy, you may not be responsible for repaying those creditors. You must choose the best way to spend your tax refund, and it is wise to do so under the advice of a bankruptcy attorney. A bankruptcy attorney can help protect your tax refund The absolute best way to avoid losing your income tax refund is to talk to a bankruptcy attorney. It may be worthwhile to use your income tax refund to pay your bankruptcy attorney fees if you plan to file for bankruptcy. If you are hiring an attorney to help with your bankruptcy case, which you should, you need to pay your bankruptcy attorney before filing your bankruptcy case. With your tax refund, you can pay your bankruptcy attorney upfront in one lump sum and start your case faster. This is especially beneficial if you are having a hard time raising the money for the cost of filing bankruptcy. Things to avoid doing with your tax refund when filing for bankruptcy You must not spend the income tax refund money frivolously. Never purchase luxury items or spend the money on loan repayments to your family and friends. Doing so can cause the trustee to require the repayment of the money.  People can often spend their tax refund money before filing for bankruptcy. File your taxes, receive your check, spend the money, and then file your bankruptcy. However, it is vital to keep a record of exactly how the money was spent. The bankruptcy trustee has the right to ask you. Can bankruptcy eliminate income tax debt? It is possible to discharge some Federal and Wisconsin income tax debt by filing for bankruptcy. However, the debt must meet specific qualifications: Federal or state income taxes only.Tax returns must be filed on time – despite not paying the balance due. The tax debt must be at least three years old. (If you are expecting to owe money for your 2020 income taxes, it will not be dischargeable because the debt is less than three years old.) The IRS’s income tax debt must be assessed at least 240 days before you file or must not have been assessed at all (240- Day Rule). Once your qualifying tax debt has been discharged through bankruptcy, you are no longer responsible for paying back the taxes and any penalties assessed on your tax debt.  Do I need to file my income taxes? Yes. The bankruptcy trustee will require you to provide copies of (at least) the last 2 years of income taxes.  Contact Wynn at Law, LLC’s bankruptcy law office If you are considering bankruptcy this year and have questions, please contact our bankruptcy attorney, Shannon Wynn. Wynn at Law, LLC offers free, in-depth bankruptcy consultations. Our bankruptcy attorney is here to listen, advise, and help during your financial difficulties. You can reach our bankruptcy attorney by phone at 262-725-0175 or by email via our website’s contact page. Wynn at Law, LLC has bankruptcy law offices conveniently located in Salem, Delavan, and Lake Geneva, Wisconsin. The post Learn How You Can File Bankruptcy and Keep Your Tax Refund appeared first on Wynn at Law, LLC.

Chapter 7 Trustee Donald F King Donald F King is one of the four Chapter 7 trustees in the Alexandria Virginia Bankruptcy court. When you file a bankruptcy case in Alexandria, the computer assigns you to one of the four trustees. Lawyers are appointed Chapter 7 trustees as a part-time assignment.  He’s a partner in […] The post Chapter 7 Trustee Donald F King by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

We’re Zooming Virtual Bankruptcy Consultations We’ve been Zooming–doing virtual bankruptcy consultations–since April 2020. We’ll continue through 2021. We stopped in-office consultations with the March 2020 pandemic lock down.  (I first heard of Zoom when my church started using it. We’re a small congregation and can see everybody on screen.)  Since April 2020 I’ve Zoomed bankruptcy […] The post We’re Zooming Virtual Bankruptcy Consultations by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.