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Archives for August 2014

Do I have to Reopen my Chapter 7 Bankruptcy in Michigan and add a Creditor if I Forget to List that Creditor?

No.  The 6th Circuit has established an “omitted creditors rule” in the case In re Madaj, 149 F3d 467 (1998). Here is a summary of the Madaj opinion and holding: 1.       The confusion regarding the treatment of omitted creditors is due to a line of cases that perpetuates the erroneous view that once a case…

Student Debt Threatens the Safety Net for Elderly Americans According to Bloomberg

As reported by Natalie Kitroeff from Bloomberg Businessweek, student debt is growing faster for seniors than for any other age group, according to the latest data gathered by the Federal Reserve Bank of New York. Lingering student loan debt is part of a broader and, many elder-care lawyers say, devastating accumulation of debt among older…

Consumer Financial Protection Bureau Issues Warning on Bitcoins

The New York Times DealBook Blog reported that the Consumer Financial Protection Bureau issued its first consumer advisory on virtual currencies, including Bitcoin, and said that it would begin accepting complaints about such issues or companies. The agency warns consumers to be aware of hackers and schemes, volatile exchange rates and a lack of government…

Is a Debtor Judicially Estopped from Prosecuting Undisclosed Prepetition Causes of Action where Debtor’s Bankruptcy Case has been Dismissed?

As reported by Robin Miller of CBAR: Although the debtor had failed to schedule her prepetition claims against her mortgage creditors in her prior Chapter 13 bankruptcy case, and her failure to list the causes of action among her assets was tantamount to a representation that she had no such claims, the debtor was not…

What Is The Difference Between a Bankruptcy Case That is Closed Versus One That is Dismissed?

As reported by Robin Miller with CBAR: Distinguishing a bankruptcy case that is closed from one that is dismissed, and reaching a conclusion that is independent of the chapter under which the debtor’s bankruptcy case was filed, the Second Circuit Court of Appeals held that, under Code § 349(b)(3), even undisclosed assets revest in the…

BEWARE THE AFFECT OF FORM 982 ON THE FOREGIVENESS OF INDEBTEDNESS AND ITS AFFECT ON THE BASIS YOU YOUR HOME

If you negotiate the foregiveness of indebtedness from a bank on a home loan or credit card company, you will recieved a 1009C. Many bankruptcy practictioners, treat the “discharge in a case under Title 11” and “insolvency” as equally effective ways to avoid including cancelled debt in taxable income and filed a Form 982. Most…

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