Consumer Bankruptcy

With the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) came numerous amendments to the U.S. Bankruptcy Code.  Of great significance was the inclusion of a calculation of monthly income required for individual consumer debtors to determine their eligibility for relief under chapter 7 of the Bankruptcy Code, commonly referred to as the “means test,” and provided for in 11 U.S.C. § 707(b)(2)(A) and (B). The failure of an attorney to accurately disclose a client’s monthly income and expenses on the means test can have devastating consequences on the debtor and may result in potentially sanctionable actions against the attorney pursuant to the Bankruptcy Code and the Rules of Professional Conduct.

Getting paid in a consumer bankruptcy practice can feel like nighttime in Westeros: dark and full of terrors. [1]

Debtors typically see bankruptcy as a last resort and often don’t contact an attorney until they are out of time and money, usually while facing existential issues with strict timelines. Depending on your jurisdiction, stopping certain actions can be all but impossible without filing for bankruptcy. Yet, the retention and compensation of a bankruptcy attorney is subject to serious complexities. Often, the choice of chapter is made by what the client can afford to do now, not what’s best.

Post-Confirmation Jurisdiction in Chapter 13: Is Vesting an Issue? By Robert G. Drummond The filing of a chapter 13 petition creates a bankruptcy estate consisting of the legal and equitable interests of the debtor. 1 Property of the chapter 13 estate also includes

Bankruptcy Judge Montali didn’t toss an individual out of chapter 7 just because he owned two LLCs that sold marijuana at retail.