What constitute bankruptcy fraud?

When you file bankruptcy, you take an oath (in 341 meeting as well) that all documents filed are filed diligently and not meant to defraud anyone. Also, within the Bankruptcy court, the officials of Trustee and the Department of Justice investigates all of the paperwork filed and can ask questions in a 341 meeting.
The latest reform of 2005 had made bankruptcy simpler and information, it can, however, be easier to forget to file many documents in Bankruptcy courts and make them subject to a formal investigation.Following is a link with the IRS which gives many examples of bankruptcy fraud.



What Are Nevada’s Bankruptcy Exemptions

State of Nevada had opted out from the exemption list of federal government. The 2005 Act substantially changed the domiciliary provision found in former section 522(2)(A). The new requirements are found in Section 522(b)(3)(A). These domiciliary requirements also determine which state law will be used to determine whether the debtor may elect to claim the federal bankruptcy exemptions.

Whether State Exemptions Laws Applies?
The state exemption law that applies to a debtor is determined by the state in which the debtor’s domicile has been located for the 730 days immediately preceding petition filing date. If the debtor’s domicile has not been located in a single state for the 730-day period, the applicable state exemption law is that of the state in which the debtor was domiciled for the 180 days immediately preceding the 730-day period, or in which the debtor was domiciled for the longer portion of such 180-day period than in any other place.

Nevada State Exemptions?
Nevada has opted out from the federal bankruptcy exemptions. The purpose of this article is only highlighting the Nevada exemptions.
Exemptions Exemption Amount Statutes
Homestead Real property or mobile home to $550,000 (husband and wife may not double)
Must record homestead declaration before filing for bankruptcy. 21.090(1) (m), 115.010

Public Benefits Aid to blind, disabled, AFDC
Industrial insurance (workers’ compensation)
Unemployment compensation
Vocational rehabilitation benefits 422.291
Personal Property Appliances, household goods, furniture, home and yard equipment to $24,000 total
Books to $10000
Burial plot purchase money held in trust
Funeral service contract money held in trust
Health aids
Keepsakes & pictures
Metal-bearing ores, geological specimens, art curiosities or paleontological remains, must be arranged, classified, catalogued & numbered in reference books
Motor vehicle to $15000; no limit if vehicle equipped to provide mobility for disabled person
One gun 21.090(1) (b)
21.090(1) (a)
21.090(1) (p)
21.090(1) (a)
21.090(1) (f), (o)
21.090(1) (i)
Tools of Trade Arms, uniforms & accouterments you’re required to keep
Cabin or dwelling of miner or prospector; cars, implements & appliances for mining claim you work to $4500 total
Farm trucks, stock, tools, equipment & seed to $4500
Library , equipment, supplies, tools & materials to $4500 21.090(1) (j)
21.090(1) (e)
21.090(1) (c)
21.090(1) (d)
Wages Minimum 75% of earned but unpaid wages; bankruptcy judge may authorize more for low income 21.090(1) (g)
Wild Card None
Insurance Annuity contract proceeds to $350 per month
Fraternal benefit society benefits
Group life or health policy or proceeds
Health proceeds or avails
Life insurance policy or proceeds if annual premiums not over $1000
Life insurance proceeds if you’re not the insured 687B.290
21.090(1) (k)
Miscellaneous Property of business partnership 87.250
Pensions ERISA-qualified benefits to $100,000
Public employees 21.090(1) (q)

Lowest home rate ever

The home ownership rate in the U.S. fell to 65.4% in the first quarter, hitting a 15-year low amid still-high foreclosure rates and a stronger market for rents.

The rate is lower than the 66% from the fourth quarter and the 66.4% from the first quarter of last year, according to the Census Bureau. The rate hit a high of 69.2% in 2004, before the housing bubble burst.

The housing market has been trying to recover ever since. Several reports have suggested that the market has turned a corner, with pending home sales up and housing values bottoming.

But foreclosure rates are still high (and may continue to increase following a landmark settlement with loan servicers earlier this year).

In the first quarter, 74.6 million housing units were occupied by owners. Home ownership is down in every region, falling to 59.9% in the West. The region, which has the lowest rate in the country, hasn’t had such a small percentage of homeowners since at least 2006.

Rates among minorities continue to trail the nationwide numbers. Black home ownership is at 43.1%; the Hispanic rate is 46.3%

Vacancy rates at rental properties fell to 8.8% — their lowest level in a decade. Rents, which are at a median $721, are at a post-recession high.

The median sales prices for vacant units – a number that spiked in 2007 but has slipped steadily since – is $133,700.

Do you need cheap or production mill attorney for your bankruptcy?

We heard this proverb many times and it is still good when someone is filing for bankruptcy, “You get what you pay for.”

One can see hundreds of ads with cheap attorney production mills as well as from bankruptcy petition preparers on TV, online and otherwise in yellow pages (now getting defunct). If you go to the trustee’s meeting i.e. 341 meeting, and I had heard it many times the trustee yelling at these novice attorneys “Mr. you have to learn bankruptcy and take responsibility.” These newly licensed attorneys are not bad meaning or otherwise incompetent; they are just not fully trained. An interesting article is published in today’s Las Vegas Review Journal and by no mean we are insinuating any attorneys here or disrespecting anyone’s sensibilities. Please see the article:


Do you know what a lawyer has to do to be a “bankruptcy lawyer?”  Nothing!  Ten years ago, every general practice lawyer added bankruptcy to the list of things he or she did to make money. Then, in 2005, the bankruptcy laws changed when the United States Congress passed broad modifications to the bankruptcy laws. The new laws are complex, including the very complicated Means Test. Most of these attorneys only steer towards Chapter 13 because they tend to make more money by doing this. I have few of these clients coming to me and we prepared their Means Test, and we found them fully entitled to file Chapter 7 and get a subsequent discharge after that. Of course we do not charge too much, just reasonable but not too cheap that we have a circus outside our office. Our client can come and meet directly the attorney and can ask him questions without any intermediate channel or without any Chinese Wall. Of course, we believe in face-to-face contact and personal meetings.

Quite often I see these $693 ads or so, they are ridiculously low. After all, someone is compromising the quality of work. Also, lots of things which should have been included, are deliberately set aside to be added later on. Why so low? Because of the following reasons:

1. The attorney may be working from some dump truck location where he is not paying any rent, and not much of an overhead. Maybe he has an internet location only.

2. Attorney is sending his work to someone like a ghost attorney or paralegal to cut cost. These ghost attorneys have no insurance, never took any CLE and not even present in the jurisdiction. Same ways our large retailers send work to China where the minimum wages is probably 20 cents an hour.

3. Attorney has no malpractice insurance, workmen compensation and liability insurance, and probably not the latest software where he is cutting corners and saving money.

4. Attorney is only filing bare minimum with lots of exception to be filed separately or not completely disclosed to the client.

5. Attorney is not cautioning the client if anything goes wrong, or if he/she has to appear in front of the judge. And, one may know that Bankruptcy judges in Nevada takes their job very seriously and it is no pleasure to be lambasted in full view of other attorneys and clients by a judge.

6. Let us say, you see these guys on TV, how many of them you see in actual court. I go to court frequently; I myself barely see them other than on TV. You can imagine what would be their familiarity with judicial procedure, laws and other allied matters.

 Conclusion: Please be careful of cheap attorneys because there is a strong likelihood, they can easily mess up your seemingly very simple case and changing it to a complex and protracted litigation. Now, you have major problem at your hand. If you want the best, expect to pay a little more. Trusting Google? That is funny. Read the attorney blog; know more about him/her. Google only give you most “optimized” attorney in the search engine categories.

Although not always true, the lawyers with the best reputation in bankruptcy court typically cost more than average.  A little additional money can get you quality over quantity and now you are building a relationship which may be conducive for many other purposes. Good bankruptcy lawyers are at the top of their game, and they’re in high demand. No one can charge outrageous amount these days, but quality should not be compromised. After all, would you go to a cheap brain surgeon if you need brain surgery? Good quality attorneys meet their clients and give them preferential treatment, and in fact, talk directly to them instead a paralegal or legal assistant.  The best often charge only a modest premium that is more than offset by the quality of their representation. So, what’s a smart consumer to do when locating an experienced bankruptcy lawyer?  Spend some time researching lawyer credentials not on Google but going through their website and if they have blog reading all of it and ask educated questions.  Don’t just trust Google to give you the best bankruptcy lawyer.  Google’s just gives you the best “search engine optimized” lawyer – whether she’s great or lousy.

How to form bankruptcy forms?


Can the Court do attachment without notice and hearing in Nevada?

NRS 31.017 Issuance of writ of attachment without notice and hearing. The court may order the writ of attachment issued without notice to the defendant only in the following cases:

1. In an action by a resident of this State against a defendant not residing in this State. For purposes of this subsection only, domestic corporations and foreign corporations who are doing business in this State and who have qualified to do business in this State as required in chapter 80 of NRS shall be deemed residents of this State. Alien corporations and foreign corporations who have not qualified to do business shall be deemed nonresidents.

2. In an action upon a foreign judgment for the direct payment of money.

3. In an action for the recovery of the value of personal property, where such personal property is owned by the plaintiff and has been taken or converted by the defendant without the consent of the plaintiff.

4. In an action by a resident of this State, where the defendant is about to remove the defendant’s money or property, or any part thereof, from this State, and the defendant’s property which may remain within this State, if any, will be insufficient to satisfy plaintiff’s claim. For purposes of this subsection only, a foreign corporation qualified to do business in this State as provided in chapter 80 of NRS shall be deemed a resident of this State.

5. Where the defendant is about to give, assign, hypothecate, pledge, dispose of or conceal the defendant’s money or property or any part thereof and the defendant’s money or property remaining in this State or that remaining unconcealed will be insufficient to satisfy the plaintiff’s claim.

6. In an action for the recovery of money or property, or the proceeds thereof, obtained from the plaintiff by the defendant through embezzlement, forgery, larceny or extortion.

7. In an action brought under chapter 112 of NRS.

8. In an action by the State, or a political subdivision thereof, brought under chapter 130 of NRS.

9. In an action where jurisdiction in this State can only be obtained by the attachment of the defendant’s property.