Wishing you a healthy & happy New Year and a fresh start!
If I can help you with this and you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, or any of the surrounding areas please contact me: Kevin D. Heupel, Colorado bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, or free-consultation form.
What is the ‘abuse’ section, [707(b)], of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)? There are three facets to this section.
The first facet, 707(b)(1), was a part of the bankruptcy law prior to 2005. At that time it was a very minor threat to a bankruptcy petitioner. It read as follows: “The court, on its own motion or on a motion by the United States trustee, may dismiss a case filed by an individual if it finds that the granting of relief would be a substantial abuse of the provisions of this chapter.”
This tended to mean that your income had to be well in excess of your expenses before you would be considered to be “substantially” abusing the provisions of the chapter. Unfortunately, after 2005 BAPCPA took out the keyword “substantial.” This revision made it much easier for the trustees to sustain a complaint against you, for now they were only required to demonstrate any abuse under section 707(b)(1).
BAPCPA also added a new section, [707(b)(2)], that dramatically altered the method of calculating disposable income. This is the section in which the “means test” was instituted. The means test bases deductions on IRS standards, which are regularly adjusted for inflation, that are applied to certain expense categories without regard to your actual expenses.
There was one more new section, [707(b)(3)], added. Even though you have successfully refuted a presumption of abuse arising from either of the other subsections, this section allows the bankruptcy court to consider whether the “totality of the circumstances of the debtor’s financial situation demonstrates abuse.”
These changes to the bankruptcy code have created significant challenges for an individual filing bankruptcy. The trustee frequently prevails in cases where litigation results from a trustee’s 707(b) action. Therefore it is crucial that your bankruptcy attorney thoroughly evaluate your situation with respect to section 707(b) before filing.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions contact me: Kevin D. Heupel, Colorado bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, or free-consultation form.
It’s almost tax time again. This would be a good time to discuss the issues involved with your tax refund and bankruptcy. How does your tax refund effect your bankruptcy case?
As I have said before, if you are filing a Chapter 7 bankruptcy, the trustee will receive your latest tax return. If you are expecting a large tax refund it would be wise to include that in your report to the bankruptcy court. Otherwise, the trustee will conclude that you have more discretionary income than you have disclosed. In a Chapter 7 case you must demonstrate that your monthly living expenses exceed your monthly net income. Thus if you receive a tax refund of $3,600, you will need to show that your monthly expenses are greater than your monthly income by more than $300 a month.
It is important to keep in mind when you claim your tax exemptions that if you withhold more in order to receive a large refund at the end of the year you are short changing yourself every month. If you live paycheck to paycheck the extra money—as in the abovementioned instance three hundred dollars a month—can make a considerable difference and keep you from ending up in greater debt with finance charges to pay. Adjust your withholding using a W-4 form according to your needs.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions contact me: Kevin D. Heupel, Colorado bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, or free-consultation form.
Wishing you and yours a happy healthy holiday season!
From Kevin D. Heupel, Colorado Bankruptcy Attorney, 303-955-7570, COBankruptcyHelpEmail, or free-consultation form
When you fail to repay your credit card debt, a lawsuit may be filed against you by the credit card lender. Such a lawsuit often results in the creditor winning a judgment against you, despite the opportunity you are given to present your side of the case in court. The judgment will give the credit card company additional power to obtain the money you owe them. They will be able to garnish your bank accounts and wages, and place a lien on your real estate or other property. Thus it will become impossible for you to sell the property without paying the debt first. Another significant affect of a credit card lender winning a judgment against you is that the debt you owe will become secured.
In Chapter 13 bankruptcy cases a secured debt is given a higher priority than an unsecured debt in terms of repayment. Therefore in a Chapter 13 bankruptcy, secured debts are paid first and in full, before any unsecured ones. Unfortunately, this could mean you would have a larger monthly payment throughout your Chapter 13 bankruptcy. If you are facing such a lawsuit it is important that you contact a bankruptcy lawyer as soon as possible. They should be able to help you by filing bankruptcy immediately. In this way an “automatic stay” will be instituted which will stop the lawsuit and any other collections activities by creditors against you. Then the creditor will be unable to obtain a judgment against you and your debt will remain unsecured.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions.
Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.
I know I have already discussed various facets of a Chapter 7 bankruptcy case. But another question I would like to address involves the length of time required for a Chapter 7 bankruptcy proceeding.
Usually a meeting of creditors occurs about thirty days after your case is filed. Then if all goes according to the average process-in other words, a creditor doesn’t contest your case and the bankruptcy trustee doesn’t have any of your assets that must be distributed-your case will be over approximately sixty days after the initial hearing.
Let’s review the usual course of events for a Chapter 7 case.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions.
Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.
An article on the Channel 9 news website declared that greater than twenty-six thousand Coloradans have filed for bankruptcy in 2009. It has been estimated that bankruptcy filings in Colorado could reach twenty-nine thousand in 2009 whereas in 2008 slightly less than twenty-one thousand filed. The year with the greatest number of bankruptcy filings was 2005, just before the changes in the U.S. Bankruptcy Code occurred. Forty-three thousand Coloradans filed for bankruptcy in that year.
The article went on to say that there is a free clinic available that focuses on how to file Chapter 7 bankruptcy without a lawyer. The classes are held in room 154 of the U.S. Bankruptcy Court Building on 19th Street. The free bankruptcy clinic is held by the Colorado Bar Association and the Denver Bar Association.
Many of the individuals who come to the classes intend to act as their own attorney while filing bankruptcy. Obviously, their belief is that this will save them money. Unfortunately, this is often not the case. The bankruptcy application package is typically about sixty-three pages long. If you make an error in filling out the paperwork, you will have paid the $299 filing fee for a Chapter 7 bankruptcy proceeding only to have your case dismissed. Then you will need to begin again. Also it is important to keep in mind that lawyers at the free class don’t discuss individual personal circumstances. Thus the idiosyncrasies of your particular case may not be thoroughly addressed, if at all.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me with any questions.
Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.
In an article for CNNWORLD Daniela Deanne stated that “Colombian singer Shakira, whose hit ‘Hips Don’t Lie’ is the most played record in American radio history, became a musical sensation and a global philanthropist because of her family’s bankruptcy when she was eight years old.” Her family had experienced great debt which had caused them to sell all of their furniture, their air conditioner, and their cars. When she expressed how upset she was by the family’s losses, her parents took her to the park to see the homeless barefoot children who were orphans. This impressed upon her that bankruptcy was not as devastating as she initially thought, particularly compared to the alternatives such as homeless. She understood then that bankruptcy was a solution to her family’s present circumstances. As a result of this experience Shakira was inspired to start a charitable foundation called the Barefoot Foundation to help promote and fund education for poor children in Columbia. She also became a goodwill ambassador for UNICEF.
Shakira’s experience with bankruptcy as a child changed her life. For many people it is a life-changing event that forces them to face their situation and to acknowledge they need economic help. After which they can start fresh with an opportunity to improve their circumstances. My intention is to help you realize that rather than viewing bankruptcy as a shameful life event, realize that for most it is an opportunity.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions contact me:Kevin D.Heupel a Colorado bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, or free-consultation form.
The likelihood of there being a house inspection during your Chapter 7 bankruptcy case is very slim. There are two possible reasons that someone would be sent to your house to inspect your property during your bankruptcy proceedings. One reason the bankruptcy court might be interested in the value of your property would be if the trustee has determined that your house or the contents of your house should be made available to pay your unsecured creditors some portion of the debt you owe them. Assets that your unsecured creditors are given access to are known as “non-exempt” assets.
Another reason that an inspection of your house might be required would be if the trustee has reason to believe that you have provided false information about the value of your house or the value of your belongings. As I have mentioned in an earlier blog, during a bankruptcy proceeding you are required to list all of your assets and liabilities. Failure to do so may be considered an attempt to defraud or mislead the court. This can result in a delay or dismissal of your bankruptcy, or in a fine, or jail time.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, and have any questions please feel free to contact me.
Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelpEmail, free-consultation form.
The portion of the Wall Street Reform and Consumer Protection Act related to bankruptcy and mortgages, which I discussed in an earlier blog, did not pass last week. Responding to criticism from banks, the House rejected the part of the legislation that allowed bankruptcy judges to restructure mortgage payments, a plan that has passed in the House before but not in the Senate.
If it had passed, it would have permitted bankruptcy courts to adjust mortgage terms, extend the time for repayment, decrease interest rates and fees, and adjust the principal balance of mortgages in an attempt to protect homeowners from foreclosure. The effort would have been a logical extension of the current legislation, which currently gives bankruptcy judges the power to restructure any legally binding contract between two parties.
With bankruptcy rates on the rise, many loans would have come under the jurisdiction of bankruptcy judges. There are some who believe the measure failed due to the lobbying of powerful banks, since they are the group that would stand to lose the most if this measure had moved forward.
If you live in Denver, Aurora, Arvada, Brighton, Broomfield, Commerce City, Englewood, Highlands Ranch, Lakewood, Lafayette, Littleton, Northglenn, Westminster, Wheat Ridge, or Golden, Colorado, please feel free to contact me.
Kevin D. Heupel, Colorado Bankruptcy attorney, 303-955-7570, COBankruptcyHelp Email, free-consultation form.
