Which Reaffirmation Are Binding?

We had discussed the definition of ‘surrender’ and ‘reaffirmation’. In this post, we would only discuss reaffirmation. Some time creditors lure the debtors to sign reaffirmation with various tactics like lowering the interest rate, shortening time period etc. The Code does not completely bar reaffirmation, it however, restricts them significantly. Section 524(c) and (k) sets [...]

How to File Proof of Claims?

This is our part two here. In the first post, we had defined various actors like debtor, creditor, unsecured creditor, priority of claims. In this post, we would address how to file proof of claims. It is important if you need to get some money from the estate, and the bankruptcy has been transformed to [...]

What Exactly is a Creditors Committee in Ch. 11?

Creditors’ committees can play a major role in chapter 11 cases. The committee is appointed by the U.S. trustee and ordinarily consists of unsecured creditors who hold the seven largest unsecured claims against the debtor. 11 U.S.C. § 1102. Among other things, the committee: consults with the debtor in possession on administration of the case; [...]

What is Debtor-In-Possession?

Chapter 11 is typically used to reorganize a business, which may be a corporation, sole proprietorship, or partnership. A corporation exists separate and apart from its owners, the stockholders. The chapter 11 bankruptcy case of a corporation (corporation as debtor) does not put the personal assets of the stockholders at risk other than the value [...]

Does filing of chapter 7 stays collection activities?

Inherent in the filing of chapter 7 is an automatic stay which comes into life right after the filing of chapter 7 petition. Creditors are notified officially of the automatic stay in the notice of meeting of the creditors. However, this notice is not mailed sometime many days after and meanwhile the collection activities continues. [...]

Can Objections Be Raised Against Discharge?

As we had discussed it few times in this forum that the purpose of filing Chapter 7 is to get a discharge from the accrued debts, and that is one foremost objective. This discharge gives debtors fresh start that the bankruptcy is meant to provide. However, discharges are not automatic and can be contested by [...]

Frequently Missed Information When Filing Bankruptcy

When you file bankruptcy, you have to report all kinds of income, assets and property in your Chapter 7, 13 petitions. However, there are numerous things, which even very seasoned legal practitioners forget or overlooked. Most of these practitioners (unfortunately, in many cases their legal assistants in Nevada) only have a pile of forms, and [...]

Divorce and Bankruptcy

We always advise our clients to first file bankruptcy and then if need arise, to file divorce. A divorce before bankruptcy complicates things, and a bankruptcy prior to filing divorce is a prudent matter as this divides the property more amicably than in a typical divorce courts where emotions run very high. As we know, [...]

Bankruptcy and Second Liens–What Happens?

As a bankruptcy law practitioner, I had been asked this question many times: what happens to your second or third mortgages and liens on your home when you file bankruptcy? Excellent question. Even though the law and practices are different, we still like to address these issues, basically from the perspective of Nevada standards only. [...]

How to reopen your BK if discharged for lack of filing of Form 23?

As have written before that there are two kinds of certificates required: one for financial counseling and the other debtor’s education certificate, commonly called Form 23. However, if the debtor does not file Form 23, the bankruptcy case is dismissed without a discharge. Now, you are stuck and the only choice left is to reopen [...]