With the economy in a recession, job layoffs common and prices for necessities rising, it is no surprise that bankruptcy filings across the country are at an all time high. Not surprisingly, our firm frequently receives calls from prospective clients who need to file bankruptcy but who are flat broke.
If you are extremely cash strapped, you might be tempted to look for a "cheaper" way to file for bankruptcy - either by trying to fill out the bankruptcy petition paperwork yourself or by... Read Full Story
What is an "objection to confirmation" in a Chapter 13 case and should you be concerned about it? As you know, a Chapter 13 bankruptcy functions as a court sanctioned repayment plan. Under the law, you - the debtor - must propose this repayment plan to the court.
Clark and Washington's job is to evaluate your financial circumstances and to prepare this repayment plan. As your attorneys, we have both a desire and an obligation to represent you zealously. We know that five years (the... Read Full Story
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Tennessee's sales tax holiday is set for August 1 through August 3, 2008. Subject to some limitations you will not have to pay sales tax on clothing, school supplies and computers purchased during this 3 day period.
Here is a link to the Tennessee Department of Revenue's web site where you can learn more about the sales tax holiday.
Enclosures
AugTaxHoliday_music02 (audio)
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May a debtor include payments due secured creditors (house payment and car payment) for Chapter 13 means test calculation purposes if the debtor's plan provides for the surrender of the collateral? Attorney Mary Beth Ausbrooks, managing attorney of Clark and Washington's Nashville office recently argued this issue before Judge Marian Harrison in Nashville (Middle District of Tennessee) bankruptcy court.
Opposing Mary Beth was the Nashville Chapter 13 trustee, Henry Hildebrand. The trustee... Read Full Story
The past few years have amounted to something of a tranisition period in the bankruptcy world. In October, 2005, the bankruptcy law changed, requiring debtor lawyers to learn and apply new law and to change office procedures to address new filing requirements. In the months preceding October, 2005, filing rates zoomed, as families concerned about the uncertainty of the new law filed while the older, more lenient rules applied.
In the months following October, 2005, bankruptcy filing rates... Read Full Story
A recent Tampa bankruptcy case has led to federal prosecution for bankruptcy fraud and likely jail time for a wife who trusted her husband. The Tampa Tribune reports that Joanne Cone is facing a possible five years in prison for conspiring with her husband to concel assets from the bankruptcy court.
Michael Cone, the former president of a road contracting company, has been sentenced to a fifteen year prison term for bankruptcy fraud. His wife, Joanne, claims that she had minimal knowledge... Read Full Story
With Tennessee again leading the nation in bankruptcy filings, it is no surprise that instances of mortgage fraud are on the increase throughout the state. According to the FBI, there are two categories of mortgage fraud - fraud for property and fraud for profit.
Fraud for property involves situations where a homeowner misrepresents his income and/or net worth on a loan application in order to qualify for a mortgage. The homeowner's intentions may be to remain in his house and repay the... Read Full Story
Where do John McCain and Barack Obama stand on the nation's housing crisis? on bankruptcy reform, on economic issues that affect Americans fighting to avoid bankruptcy. Reuters news service has published a useful summary, which I am reprinting here:
McCain:
1. Proposes to spend up to $10 billion to allow some homeowners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer... Read Full Story
USA Today reported in today's edition that complaints against debt collectors have reached an all-time high. The Better Business Bureau reports at 26% increase in complaints in 2007, and attorneys general in many States are pursuing actions against collection agencies for false and misleading activities.
In discussing debt collection tactics with our bankruptcy clients, it appears that there are some debt collectors that will do or say anything to intimidate a debtor into paying an overdue... Read Full Story
Part of the bankruptcy work that Clark and Washington does with our Chapter 13 clients involves the creation of a budget that will become part of the bankruptcy petition and filed with the clerk of bankruptcy court.
By law, Chapter 13 cases must last a minimum of 3 years, although many of the Chapter 13 cases we file will end up lasting 5 years.
It is hard enough to prepare a budget for the next six months - how can anyone possibly predict 5 years into the future? There is no absolute answer... Read Full Story
