The Florida Department of Revenue was found in contempt for continuing to send collection letters to a debtor after the chapter 13 plan was confirmed.  The State appealed, and the contempt and attorney fee sanction was affirmed by the District Court in In re Gonzalez, 2013 WL 5308020 (S.D. Fla., Sept 20, 2013).  The State argued that there had to be specific injunctive language in the order confirming plan to prevent post-confirmation collection activity for child support arrearages.  Judge Marra ruled that  In re Rodriguez, 367 Fed. Appx. 25 (11th Cir.2010), cert. denied, ----U.S.---, 131. S.Ct. 128, 179 L.Ed.2d 34 (2010) supported the finding of contempt.   In Rodriguez the 11th Circuit found that the sending of post-confirmation collection letters by the Fla. D.O.R. violated the confirmed plan and affirmed the award of fees to Debtor's counsel.  Id. 367 Fed.Appx. at 30.  It also found the filing of claim had waived sovereign immunity.  Id.   Appellant's conduct was unambiguously proscribed by 11 U.S.C. § 1327(a). It was not necessary for the Bankruptcy Court to add anything additional to its order.    Finally, Judge Marra found that BAPCPA did not not change the result in Rodriguez.  Had Congress intended support obligation creditors to not be bound by orders confirming plans, it would have amended §1327 to so state.   .

   It is not uncommon for a complaint under §523 to be dismissed for failure to state a claim.  An amended complaint in these proceedings may well be time-barred under Rule 4007(c), Fed. R. Bankr. P.  unless it relates back to the original complaint.  This is the issue before the Court in In re Holland, 2013 WL 5314872 (Bankr. D.D.C. 2013).    The timely filed original and initial amended complaints were dismissed for failure to plead facts establishing the nondischargeability of  the debts under the various provision of §523(a) plead. The 2nd amended complaint was filed at 1:10 a.m. on the day following the expiration of the dischargeability bar date.  Rule 4007(c) generally requires any complaint objecting to the dischargeability of a debt to be filed within 60 days of the date first set for a meeting of creditors.  While this can be extended by the court, such extension must be requested before the expiration of the bar date.    Under Rule 15(c)(1)(B) Fed.R.Civ.P. (applicable in bankruptcy per Rule 7015, Fed.R.Bankr.P.) an amended pleading relates back to the original pleading if “the amendment asserts a claim or defense that arose out of the conduct, transaction, or occurrence set out—or attempted to be set out—in the original pleading.” Fed.R.Civ.P. 15(c)(1)(B).   The test being whether the original complaint adequately notified the defendants of the basis for liability the plaintiffs would later advance in the amended complaint.”Meijer, Inc. v. Biovail Corp., 533 F.3d 857, 866 (D.C.Cir.2008).  The Holland Court found that all the nondischargeability claims in the second amended complaint arise out of the same conduct, transaction, or occurrence set forth in Jones' first complaint.  While the factual allegations in the second amended complaint were more detailed than in the prior complaint, where such changes do not allege a new claim but rather simply renders prior allegations more definite and precise, the amendment relates back.  Bensel v. Allied Pilots Ass'n, 387 F.3d 298, 310 (3d Cir.2004).    Even when the plaintiff added a new count under §523(a)(15) not included in the prior complaint, the Court still found that it related back.  The Court found that the original complaint did claim that Jones was entitled to half of the proceeds from the intended sale pursuant to the parties' divorce, therefore it gave adequate notice to the defendant that her alleged failure to sell the Property and give half of the proceeds to Jones incident to their divorce was a basis for liability.    The Court also found that Plaintiff adequately demonstrated excusable neglect under Rule 9006(b)(1), Fed. R. Bankr. P. to warrant an extension after the deadline had passed.  While no formal motion under Rule 9006(b)(1) was filed, the Court found that the oral argument of counsel at the hearing on the Defendant's motion to vacate the order extending time to file the complaint was an implicit motion for such extension.   

If you filed bankruptcy through no fault of your own, or if you suffered a foreclosure for reasons beyond your control, it is now possible to get an FHA insured loan. You can get a new mortgage  one year after bankruptcy or foreclosure if you can show you had a big cut in pay, a big decline in your business income or became unemployed for no fault of your own.  And as in the past, you can be eligible if you suffered a medical emergency or recently became a widow or widower. You can’t get on this fast track to a new mortgage if you quit your job, or if you were fired for cause. The new FHA policy is much more liberal than the harsh policies of Fannie Mae and Freddie Mac.  These agencies require a waiting period of 3 years after completion of a foreclosure or discharge from bankruptcy if there are “extenuating circumstances” and up to a seven year waiting period otherwise. There are many bogus sources for FHA financing.  However, you can  find many answers to your questions about FHA loans at  http://portal.hud.gov/hudportal/HUD?src=/FHAFAQ.  You can also find an FHA approved lender at http://www.hud.gov/ll/code/llslcrit.cfm To qualify for a mortgage after bankruptcy or to qualify for a mortgage after foreclosure, it’s very important that a bankruptcy case or the foreclosure case to be completely closed.  Lenders frequently fail to complete a foreclosure, especially for condominiums and homes with a home owner association because they don’t want to assume the costs of home-ownership.  This leaves the owner stuck holding the bag.  It also leave the owner ineligible to look for a new mortgage. Lakelaw has developed innovative tools to force lenders to take action to conclude a foreclosure case and allowing borrowers to have a fresh start. We at Lakelaw value our former clients and friends and hope you gain value from our periodic messages to you about developments in bankruptcy and foreclosure. We especially appreciate your referrals of friends, family members and others you know who can benefit from our services.  Thank you for your continued interest in and support of Lakelaw – your financial lifesaver ™ We continue to represent people and businesses in bankruptcy and foreclosure defense in Illinois and Wisconsin.  We do so with care, kindness, courtesy, respect, professionalism and dedication. And we always will.

Sam and Sally were victims of payday loans in Wisconsin.  The payday lenders were sucking large sums of money from their bank accounts every month. Lakelaw filed bankruptcy for Sam and Sally to stop the payday lenders. The automatic stay for bankruptcy in Wisconsin serves as a legal stop sign.  If a creditor tries to collect a debt even after we file a chapter 7 case in Wisconsin or even a chapter 13 case in Wisconsin, Lakelaw can sue that creditor for damages and attorneys fees to make them stop. Bankruptcy stops payday lenders from collecting.  Bankruptcy stops payday lenders from taking money from peoples’ bank accounts.  But Sam and Sally’s payday lenders ignored the law.  They took money from Sam and Sally’s bank account after Lakelaw filed their bankruptcy.  Sam and Sally got hit with bank fees and overdraft charges. Lakelaw informs creditors after a bankruptcy filing our client has filed a bankruptcy case, whether under chapter 7 or chapter 13.  This way, the creditor can’t complain they didn’t know about the case.  If they keep collecting anyway, it’s a willful violation of the automatic stay.  We also tell our clients to stop any automated withdrawals from their bank account.  We frequently tell our clients to close their bank accounts and open new ones so the creditors can’t get their hands on their money. Most honest creditors stop collection right after we file the bankruptcy case.  But Lakelaw will sue and collect from those who insist on doing the wrong thing, Creditors with no notice of filings might not be willingly ignoring the bankruptcy stay when they act, but if they get notice and still refuse to correct their behavior, a court can rule they were liable for their actions after getting the notice. Lakelaw helps our clients recover money taken from them after filing, even if it means extra time on the phones and fax lines.  It’s part of completely representing our clients from start to finish and providing them with true debt relief. Lakelaw also protects people after bankruptcy taking advantage of consumer protection laws such the Fair Debt Collection Practices Act, the Telephone Collection Practices Act and by enforcing the discharge injunction.  After a bankruptcy is complete,  creditors can’t collect on claims which arose before the bankruptcy. Lakelaw insists that such creditors stop.  And if they don’t we sue them and collect for our clients. We also help our clients restore credit after bankruptcy by reviewing their credit reports and correcting errors. When facing financial crisis, whether in Wisconsin or Illinois, let Lakelaw fight for you.  Remember, Lakelaw is your financial life-saver ™.  We help people with bankruptcy and foreclosure in Illinois and Wisconsin.  

Taxes were due prior to filing. They are discharged right?The answer is, it depends. Taxes and their dischargeability depend on the type of taxes, what tax year they are form, when they were filed, when they were assessed and whether they are now secured by any real estate.We will discuss the most typical type of taxes that Debtors want to discharge. That is state and/or federal income taxes. In order to taxes to be discharged they must meet the following criteria:Taxes must be for a year that is atleast 3 taxes years ago from prior the date the bankruptcy is filed; AND Example: The bankruptcy is filed on August 1 2013. The 3 tax years that were due at the time of filing are 2012, 2011 and 2010. This means that any debt owed for those years is not discharged. However, Tax years 2009 and prior can be discharged through the bankruptcy IF it meets the remaining criteria detailed below.Taxes must have actually been filed atleast 2 taxes years ago from prior the date the bankruptcy is filed; AND Example: The bankruptcy is again filed on August 1, 2013. The taxes that are owed are for 2008 meaning that they pass the test above in that they were filed more than 3 tax years ago as of the date the bankruptcy was filed. So now we look to when the taxes were actually filed. In our example we will say the taxes were actually filed on July 10, 2011. Given that July 10, 2011 is more than 2 years prior to the date the case was filed, the taxes are eligible to be discharged through bankruptcy IF it meets the remaining criteria detailed below.Taxes must have actually been filed atleast 180 days ago from prior the date the bankruptcy is filed; AND Example: Example: The bankruptcy is again filed on August 1, 2013. The taxes were for tax year 2008, they were actually filed July 10, 2011 and were assessed December 15, 2011. Given that they meet the criteria above and they were assessed more than 180 days prior to the date the bankruptcy was filed, the taxes are eligible to be discharged through bankruptcy IF it meets the remaining criteria detailed below.There must not already be a lien placed on your property, real estate or otherwise.Even if the taxes meet all the criteria above, if there is a lien against your real estate the debt cannot be discharged through a bankruptcy.  

My car got repossessed. There is nothing I can do to get is back right?Wrong, depending on when you take action. You an often contact your creditor, make the payment to become current and they will return the vehicle. However, you probably do not have the money to become current or you would have paid it before it was repossessed. So now what?You can file a Chapter 13 bankruptcy, again depending on when you take action. If you contact our office prior to the car being repossessed we may be able to prevent repossession which will save you on repossession and storage fees. However, even if it has already been repossessed, the creditor must wait at least 10 days before they can sell the vehicle. So long as we file the Chapter 13 bankruptcy before the vehicle is sold, the creditor must return it to you given that you comply with certain requirements.In order to file the Chapter 13 bankruptcy we need:Most recently filed state and federal taxes6 months of income historyCredit counseling certificateDocumentation of the creditor who did or is about to repossess the vehicleA completed questionnaire that we will provide to you (While it is ideal to have this completed prior to filing, depending on the time crunch, this can be completed the day after the bankruptcy is filed)Attorney’s fees and court costs (Fees should be discussed with the attorney as they vary by office and circumstanceOkay so the bankruptcy is filed. You are done and they have to give you the car back right? Not necessarily.Prior to returning the vehicle to you the creditor CAN, but does not always require:Storage/Repo fees to be paid. Occasionally the creditor will agree to roll these fees into the loan. While you are still eventually going to pay for it, it helps with not having to come up with the money immediately in order to have the vehicle returned.The creditor can request proof of insurance. Seems simple enough since you should have insurance on the vehicle anyways. However, rules allow the creditor to require proof of 3 months prepaid insurance with a minimum liability amount. This can pose a problem depending on how you pay for insurance. If you pay monthly you likely will have to come up with additional funds to prepay the 3 months.

“Transferred, Sold” accounts from Chase are a common error on after bankruptcy credit reports. When a bank sends your credit card account to a debt collector before your bankruptcy is filed, your after bankruptcy credit report often does NOT show the bankruptcy discharge on that “transferred, sold” account. Instead, they usually show “transferred, sold” account [...]The post “Transferred, Sold” accounts on your after bankruptcy credit report appeared first on Robert Weed.

  In our previous post we discussed the bankruptcy petition, the Schedule A listing of real estate/property and the Schedule B listing of personal property. In this post we will discuss property exemptions (Schedule C). Under federal and state bankruptcy laws, there are categories and amounts of property that are exempt from the bankruptcy process. […]The post Bankruptcy Filing – Property Exemptions and Schedule C appeared first on Tucson Bankruptcy Attorneys Trezza & Associates.

This is the case of Barb from Chicago, Illinois.  Barb comes to my office with medical bills, credit card bills and most importantly, a home that she really cannot afford.  She has an equity loan on her home which matures in approximately 2 years.  She is considering Chapter 7 bankruptcy to eliminate her debt but+ Read MoreThe post Bankruptcy Analysis For Barb T. From Chicago appeared first on David M. Siegel.

In a Chapter 13 bankruptcy case, upon filing, there is a creation of the Automatic Stay which protects the debtor against certain actions by creditors.  If the debtor is filing a bankruptcy case where a prior case was dismissed within the last year, then the Automatic Stay unless extended, will expire after 30 days.  This+ Read MoreThe post Motion to Extend the Automatic Stay appeared first on David M. Siegel.