Monday, May 23, 2011

In re Scholz

2011 WL 1528470 (9th Cir. B.A.P. March 22, 2011)

Benefits from the Railroad Retirement Act are included in the calculation of Current Monthly Income but must be excluded from the determination of Projected Disposable Income because  of an "anti-anticipation" clause.

Chapter 7 Fee Waiver Provisions

As of May 10, 2011, the Poverty Guidelines for waiver of filing fees in a Chapter 7 was amended


7 Tips to Help You Confront Your Law School Debt

QWR -- 12 U.S.C. 2605(e) -Nice outline

  The loan servicer must, either acknowledge receipt or take the action requested, in the QWR within 20 business days.

LA Real Estate Mogul Convicted Of $21m Fraud

"A bankrupt Los Angeles real estate developer has been convicted of stealing some $21 million through a tax shelter scheme. Ezri Namvar was found guilty Thursday of four counts of wire fraud along with a second defendant, 63-year-old Hamid Tabatabai. They could face up to 80 years in federal prison. “

Taking the Husband's Last Name Yes or No ?

The trend I'm seeing in my late twenties/early thirty-something friends is to change your name personally but not professionally.

Chip Parker is Now Attacking Bankruptcy Trustees

The bankruptcy trustee has every right to demand rent or vacation of the house if the homestead exemption was not applied, despite what Chip thinks.

The Supreme Court of Florida stated last month its decision in Osborne v. Dumoulin, — So. 3d –, 2011 WL 320986 (Fla. 2011). In the Osbourne decision, Chief Justice Canady explains that a bk debtor need not do anything affirmative to not claim or receive the benefit of the homestead exemption. A homeowner can choose the $4,000 wildcard exemption if it provides a greater protection than the homestead exemption would. Actual abandonment of the home is not necessary. HOWEVER, the Court states, “When the debtor in bankruptcy does not claim the homestead exemption, the debtor effectively surrenders the homestead to the trustee for administration.” The trustee can sell the home whether occupied or not.

Some trustee have told me that they intend to offer to sell a quitclaim deed to the property to the debtor’s mortgage holder.  If they can also evict the Debtor’s this will be more attractive to the creditor’s.

In the Iuliano case, the Trustee argued - a debtor who does do not claim his homestead as exempt in his bankruptcy petition, but refuses delivering exclusive possession to the Trustee for administration, is impeding the Trustee’s administration of the property.

Federal District Judge Moody stated:

11 U.S.C. § 542(a) requires a debtor to deliver to a trustee the property of the estate, “unless such property is of inconsequential value or benefit to the estate.” Where the estate has no equity in an asset, so that unsecured creditors are unlikely to benefit from a sale of the property, it is generally recognized that abandonment is the appropriate method of dealing with the asset, not liquidation. [Cite omitted.] Where there is no equity, it makes no sense for a Bankruptcy Court to order the surrender of possession of property to the Trustee.

The trustee will still be able to evict the Debtors once he has a buyer for the property.