The facts are simple. A debtor files for chapter 13 and proposes a plan, which is confirmed. The debtor makes payments pursuant to the terms of the plan but is unable to continue funding the plan a considerable time later.
Many Americans are questioning the future solvency of the Social Security program and, although its severity is inconclusive, many doubt that they will receive Social Security payments, causing them to seek additional financial arrangements.
[1]Chapter 7 individual debtors with business debts and surplus income, beware! In Schlehuber v. Fremont Nat’l Bank & Trust Co. (In re Schlehuber),[2] the Eighth Circuit affirmed a Nebraska bankruptcy court’s order to convert an individual debtor’s chapter 7 case to chapter 11 — not under § 707(b), as commonly used in consumer cases with facts similar to Schlehuber — but under § 706(b). Section 706(b) states that “[o]n request of a party in interest and after notice and a hearing, the court may convert a case under this chapter to a case under chapter 11 of this title at any time.”[3]
[1]On June 12, Sens. Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.) introduced S. 2471, the Medical Bankruptcy Fairness Act of 2014,[2] which would amend §§ 101, 104, 109, 521, 522, 523, 707 and 1325 of the Bankruptcy Code to create a new class of “medically distressed debtors.”
[1]The common belief that all student loans are protected from discharge in bankruptcy is based on a misunderstanding of 11 U.S.C. § 523(a)(8).
The Bankruptcy Code requires debtors to file a schedule of thei
In many common nondischargeability claims, the plaintiff credit
Recent decisions from Michigan and Georgia have cast further co