Each state has different laws on what is recognized as exempt property, that is, property that is out of the reach of creditors (including bankruptcy trustees). Further, there are federal exemptions. We wrote about this extensively and you may find it helpful reading.Here's the kind of question that occasionally comes up when we counsel a married couple about bankruptcy.Q: The exempt … [Read more...]
NC Medical Expense Collections Law
April 20, 2011 By
Did you know that under North Carolina law, one spouse can be liable for the medical expenses incurred in providing necessary medical services to the other spouse? This is true:even where that spouse did not sign a credit application and even where that spouse did not sign or any agreement to be responsible for the billsIntroducing the doctrine of necessaries Thanks to the “doctrine … [Read more...]
How Long Does it Take to File and Process a Bankruptcy Case?
February 10, 2011 By
It’s easier to answer the second part of the question first, so how long does it take to complete or process a bankruptcy case in the court system?A typical Chapter 7 case is open approximately four months, and, assuming that a discharge is ordered by the bankruptcy courts, dischargeable debts are discharged as of the date the petition is filed (not the date the case is closed).A typical … [Read more...]
Charlotte Mortgage Modification Case Study
December 28, 2010 By
When we warn clients about the rocky road toward a permanent mortgage modification, and why bankruptcy protection may make more sense for them, they always think THEY will be the one who succeeds. Odds of seeing the Loch Ness Monster are worse, but not by much. Only 35% of applicants have received permanent modifications, and, in our clients’ experience, the permanent modification sometimes … [Read more...]
Over 50 and Unemployed?
September 24, 2010 By
The 57-year-old woman featured in this NYT story paid her home off but may lose it in foreclosure because she cannot pay her property taxes. She is not alone.According to the article it will take years to absorb the giant pool of unemployed at the economy’s recent pace:Of the 14.9 million unemployed, more than 2.2 million are 55 or older.Nearly half of them have been unemployed six … [Read more...]
The Economy’s Crystal Ball
September 13, 2010 By
Two economists believe the past can indicate the future. At least as it concerns an economic recovery. Economists Vincent and CarmenReinhart just published a study of what happens to economies after big crashes like we suffered in 2008. The Reader's Digest version goes like this: Unemployment rates are "significantly higher" in the decade after crises, compared to the decade before. In 10 … [Read more...]
Start a Business NOW?
June 29, 2010 By
With so many people un- or under-employed it's no wonder people who have always wanted to work for themselves are considering doing so now. As bankruptcy lawyers, my partner and I perhaps have a skewed view of the landscape so here's a good list of questions to ask yourself before venturing out, courtesy of Inc. magazine. Dipping into the 401-k? With bank financing so difficult to obtain, … [Read more...]
Student Loans and Bankruptcy
May 14, 2010 By
On April 15 of this year The Private Student Loan Bankruptcy Fairness Act of 2010 was introduced to the House of Representatives calling for certain student loans to be eligible for discharge under bankruptcy.Time will tell whether the Act becomes law; if it does, it is likely to undergo substantial revisions prior to passage. Student loans are not dischargeable Under the current law, … [Read more...]
Creditor Protection Without Bankruptcy
March 16, 2010 By
With so many people unwinding unprofitable businesses and adjusting their lifestyles after financial hardship, many are confused about assets a creditor can seize and if bankruptcy is the only way to protect themselves from the proverbial wolves at the door.While we offer general information here, it is not comprehensive and not intended as legal advice. Exempt property: hands off, … [Read more...]
Can a Creditor Take My 401k?
March 12, 2010 By
Although creditors have been known to claim that they can liquidate everything including the clothes on your back to settle your debts, each state provides guidance on what assets are safe from creditors. These are termed "exempt property." So what about life insurance and retirement plans? Are they at risk if a creditor takes you to court? IRAs and life insurance North Carolina includes two … [Read more...]