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Always Ready for a Challenge: Brian Zinn

Always Ready for a Challenge: Brian Zinn

Fort Myers, FL—In a state like Florida, the bankruptcy laws don’t always seem to make sense.  When clients come to bankruptcy attorney Brian Zinn’s office for the first time, they often don’t know what they’ll be allowed to keep after the case is finished.

“Here in Florida, the way the laws are written for bankruptcy is that people are allowed to keep their home, but they have to pay a lot of money to keep anything else,” Zinn explained in a recent interview with Laws.com.  “So it is difficult explaining to someone who, for example, has a paid-off car, that they basically have to pay for their car again in order to keep it.”

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These situations can sometimes lead to dire consequences for filers, according to Zinn: “They ask, doesn’t the court know that I need my car to work, so if they take my car, how am I going to pay my bills, or pay the bankruptcy court?”

People also come in with mistaken ideas about what bankruptcy means.  “There are a lot of superstitions associated with bankruptcy that you have to tell the client is not correct.  One of them is that if a person files bankruptcy, their credit is supposedly ruined for 7 years.”

While many bankruptcy attorneys say that they prefer simpler, more straightforward bankruptcies, Zinn says that more complicated situations are his specialty.  “I love the more complex, challenging cases,” he explains.  “I think I’ve gotten a reputation in my local legal community for handling those types of unusual cases.”

One of the more recent unusual cases Zinn has handled involved an issue that is currently controversial in the United States: gay marriage: “I just filed a bankruptcy petition for a gay married couple.  Florida law does not recognize gay marriage as a valid marriage.  These people had gotten married in Vermont, and then moved here.  Now, the question is: are they allowed to do that?  We filed it—whether the trustee office tries to kick it out, we will have to wait and see.”

Because debt in the United States is constantly changing, the field of bankruptcy law is, as well, with several reforms taking effect between the overhaul of the bankruptcy code in the 1980s and the most recent BAPCPA law in 2005.  Zinn thinks that this is one of the reasons that bankruptcy law can be such an interesting profession for an attorney.

“Bankruptcy law is one of the few areas of law where things are constantly changing.  It’s not like real estate law, where the most recent case is a hundred years old,” he says.

Zinn, a solo practitioner, says that his new practice is something he should have done long ago: “I was always afraid to do it.  Now I see it as one of the best things I could have done.”

In addition to being an interesting profession, Zinn also sees bankruptcy law as a rewarding one.  “When I first started doing bankruptcy, I was taken aback by the thanks that I got from almost every client,” he says.  “You feel like you’re the person who is getting rid of their debt.  For a person, a major part of their life has just gotten better.  That made me feel really good and kept me in the field.”

 

Wyoming Bankruptcy

Wyoming Bankruptcy

 

Wyoming Bankruptcy Law

 

Wyoming bankruptcy follows laws that reflect federal law and compare closely to other states with strict laws concerning exemptions.  Because of the state’s low unemployment rate, 7.0%, and lack of exemptions under Chapter 7, many people will either choose to file for Chapter 13 or be told by a judge that it’s their only option.  The WY bankruptcy laws are strict, but the laws are in place to help a person who has either been irresponsible with their finances or been the victim of unfortunate economic conditions.

 

Wyoming Bankruptcy : Personal and Corporate

 

If a family or individual decides to file for Wyoming bankruptcy, they generally file for Chapter 7 or Chapter 13.  If a corporation is facing economic hardship, it can opt to file for Chapter 11.  There are other types of bankruptcy, but these chapters are the most common.

 

WY Bankruptcy : Chapter 7

 

Chapter 7 bankruptcy has become harder and harder to obtain in the last couple of years under federal and state law.  However, the initiative still works best for families or individuals with large amounts of unsecured debt (credit cards, medical, personal loans, etc) and low to no means of income.

 

In order to qualify for Chapter 7, a person must pass a means test.  In order to pass, the person’s household income must fall below Wyoming’s state average of $53,757, and a judge must conclude that the person cannot afford monthly payments in order to pay back some of the debt.  After qualifying for Chapter 7, a person may be entitled to some or all of the exemptions below:

 

• $10,000 homestead

• $2,400 for vehicle

• Up to $3,000 in personal property

• Pensions

• $2,000 for tools of trade

 

WY Bankruptcy : Chapter 11

 

If a corporation is facing economic instability, an owner may choose to file for Chapter 11 bankruptcy.  The measure gives the corporation a “grace period” in order to reorganize its finances, employees, and other essential logistics in order to increase profit and reduce the overall owed debt.

 

WY Bankruptcy : Chapter 13

 

A family may either choose to file for Chapter 13 or be forced to file this type of bankruptcy.  The most beneficial aspect of Chapter 13 allows a family or individual to keep their property and assets during a period of three to five years.  During this time period, they make monthly payments in order to reduce their overall owed debt by as much as 25% or even more in some cases.  This type of bankruptcy is also called “reorganization” because it allows a person or family to organize their finances and living expenses in order to reduce debt.

 

Taxes

 

If a person files under Chapter 7, a creditor may collect their federal and state tax returns as assets.  These funds are normally protected under Chapter 13.

 

Filing for Wyoming Bankruptcy

 

Like most other states, the state of Wyoming makes a person attend a credit counseling course six months before even filing for Wyoming bankruptcy.  Additionally, the same individual must attend a debtor education courses before reaching a final settlement with a creditor.

 

It’s always in your best interest to hire an attorney if considering Wyoming bankruptcy.  A lawyer can help you submit the right documents and fees at the right time, and they can sometimes help reduce backed taxes to the IRS in some cases.  Nonetheless, they will help you reach the best possible settlement with your creditor.  You will be required to submit the following documents under Wyoming and federal law:

 

• Petition

• Attorney certificate

• Proof of income

• Proof of net monthly income

• Anticipated changes in income

• Educational individual retirement account

• Tax returns from most recent to as far back as four years

Bankruptcy Attorney Gets Real on Reform, Loans

Bankruptcy Attorney Gets Real on Reform, Loans

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New York, NY—Attorney Stephen B. Kass knows better than almost anybody how the economic slump of 2008 to present has affected New Yorkers.  As someone fascinated by bankruptcy law and helping people get back on their financial feet ever since his time in law school classes at Hofstra, Kass is an innovative advocate for people who need to declare bankruptcy under any chapter of United States bankruptcy code.

As an experienced bankruptcy attorney, Steven appreciates both straightforward and complex bankruptcy cases.  Straightforward cases, he says, allow him to help more clients more quickly.  Complex bankruptcies, on the other hand, are more interesting and allow Kass to use more creative strategies to make sure that his client is brought back from the financial brink.  

Kass says that in recent years, he's seen the “worst slow down in Chapter 11 filings” of any time in the past, which has led to bankruptcy attorneys getting less business from individuals and businesses alike.  The reason that Chapter 11 filings have slowed so much, according to Kass, is the credit crunch: without available credit from banks, businesses and individuals haven't had the opportunity to get in debt over their heads.

Bankruptcy reforms have also changed how Americans can file for bankruptcy.  In 2005, Congress passed a law requiring bankruptcy filers to pass a means test showing that their income was not above preset maximums in order to file for Chapter 7.  Kass believes that this means test reform sometimes produces results that punishes people who need to file bankruptcy with moderate income and who were conservative while rewarding people with high incomes who have been irresponsible.

Another bankruptcy reform that may be on the table in the near future in Congress is student loan discharging.  Currently, student loans, both public and private, are almost impossible to discharge in bankruptcy unless the borrower has become permanently disabled.  Kass says he is of two minds about allowing student loan discharges.  On the one hand, he says that this could be very helpful to some clients, but on the other, he worries that educational institutions and other lenders may be less willing to allow students to borrow money if bankruptcy laws surrounding student loans are changed to allow discharge.

When Kass began work in bankruptcy law, he initially took very small cases.  He says that new bankruptcy attorneys today “think filing a Chapter 7 bankruptcy is an easy task,” but warns: “that isn't always the case.”  There can potentially be a great deal of risk to clients from an improper Chapter 7 filing, so Kass emphasizes the need for due diligence, especially from new and inexperienced bankruptcy attorneys.  In order to avoid creating problems for clients, Kass recommends that newly minted bankruptcy attorneys mentor under a more experienced lawyer, who can help them avoid common pitfalls and provide better client service.

Kass also has advice for Americans who are looking to reduce their risk of needing his services, or the services of any bankruptcy attorney.  Use caution in real estate investments—even your investment in your own home.  If you do make investments, he advises asking yourself: what if I'm wrong?  Will I still be able to survive financially even if it turns out I've made a mistake?  If not, you may want to reconsider and choose different investments.  

Kass also recommends a conservative approach to personal finances, including setting a budget and sticking to it.  With contemporary technologies that allow people to keep track of their personal spending, Kass believes nearly everybody should be able to successfully manage their own budgets and live within their means.

Stephen B. Kass is a tax and bankruptcy attorney in New York City. He works with people seeking debt relief through bankruptcy protection.

Bankruptcy Attorney Stresses the Importance of Common Sense

Bankruptcy Attorney Stresses the Importance of Common Sense

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Burbank, CA—For Mark Markus, who has been practicing bankruptcy law since 1991, bankruptcy cases inspire empathy.  “It’s really just a matter of helping out people who are very much like myself,” he told laws.com in a recent interview.  “Everyone has trouble with their finances once in a while.”

While some people may look down on bankruptcy filers, according to Markus, those filing for bankruptcy are just like anybody else.  “There seems to be a belief, in general, that people filing bankruptcy are dishonest.  I have not had that experience at all,” he says.  “Most people feel terrible about having to file bankruptcy, to the point where they’re almost immobilized by it.  Most of them take very seriously the requirements and understand what it is they’re doing.”

Markus says that bankruptcy law is always interesting to him as an attorney, because cases tend to involve so many different aspects of the law.  “Even the simplest case has a lot of different academic and practical implications,” he says.  “There’s no boring case, and some can get incredibly complex.  It keeps you alert and interested.  While some parts can be routine, it’s always kept my interest alive.”

Recent bankruptcy reforms have kept lawyers and clients on their toes, according to Markus.  “The law made it a lot more time consuming for the attorney, and added more requirements for the client.  It has made somewhat fewer people eligible than before, but not a substantial amount.  It requires a lot more analysis by the attorney, and that analysis changes every month.”

That, in turn, he says, has made it harder for lawyers: “It’s a substantial amount more time put in on a case by the attorney and we can’t charge that much more than we were.  It has become unnecessarily less profitable.”

While those reforms make life more difficult, Markus also believes that other types of reforms are needed.  For instance, he believes that student loans should be something that can be discharged in a bankruptcy filing.  “People have absolutely no means for dealing with student loan debt outside of bankruptcy,” he says.  “There are some income based repayment plans that work okay, but they’re basically involuntary servitude, people trying to come up with a payment plan that they can pay for the rest of their life.  It’s not the most productive way to spend the rest of your life.”

According to Markus, the laws regarding student debt would be better if they were rolled back to their pre-1998 state, allowing filers to discharge student loans in bankruptcy if the loans had been in repayable status for a number of years.  In fact, he’d like to see it go one step further still: “Student loan debt is just out of control.  I would like there to be no time limit at all or a different balancing of interests test that isn‘t as harsh as the current “undue hardship“ requirement.”

For those struggling with their finances, Markus says that a healthy dose of common sense is needed.  “The biggest problem I see with some of my clients is a lack of organization.  Most of it is common sense, but that doesn’t make it any less important or easier.  They crunch numbers and realize they would never be able to pay this debt off.”  Markus suggests seeing an accountant or Certified Financial Planner to examine your entire financial picture to identify where the problems are. “Accountants aren’t just for tax returns, they’re there for advice as well.”

 

Mark Markus is a bankruptcy attorney and lawyer serving Los Angeles, California.

Over 500 Bankruptcy Cases: Michael Siegel

Over 500 Bankruptcy Cases: Michael Siegel

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New York, NY—After helping clients to resolve over 500 bankruptcy cases, Michael Siegel of New York law firm Siegel & Siegel says that consumers need to focus on having both a long and short term view of their own debts.

“You should avoid obligations you cannot afford,” he told laws.com in a recent interview, “and pay very close attention to your monthly bills, especially credit card debt.”  Failing to look at the longer term view can, according to Siegel, lead to taking on long-term obligations that may cause you trouble in months or years to come, while neglecting the basics of your short-term debt obligations can be a slippery slope that leads to ever-greater financial woes.

Siegel, who began his career as a bankruptcy attorney at the prominent law firm of Millbank-Tweed, saw his first big bankruptcy case soon after.  This case, the bankruptcy of Continental Airlines, was one in which he played a prominent role, and he began to specialize in bankruptcy law after this.  Today, he estimates that approximately one in three of his cases is bankruptcy related.

After the economic downturn in 2008, bankruptcy attorneys like Siegel saw a marked uptick in new cases, as people began to lose houses, jobs, and income.  However, Siegel says that in 2013, that trend has started to reverse.  He notes that there has been a significant decrease in bankruptcy filings this year compared to last year, due to improved economic conditions in New York and nationwide.

Some homeowners have found it easier to file for bankruptcy in recent years, according to Siegel, because of recent increases to exemptions in New York bankruptcy code.  Additionally, he says that many people avoid filing bankruptcy because they don't want to lose equity in their homes—and with the recent slump in housing prices, many people simply don't have as much equity to lose in bankruptcy proceedings.

The next debt crisis, according to Siegel, will come from student loans and the ever-increasing amounts of student debt that college students are incurring before they even graduate and get their first paying job.  “The system of student debt was supposed to be self-funding when it began,” he points out, and says that he tries not to get involved in the politics of whether the bankruptcy code should be reformed to allow the discharge of student loans.

When consumers ask how they can avoid bankruptcy, Siegel says that it's not always something that should be avoided.  “Bankruptcy is not a moral decision, it is a personal finance decision.  Bankruptcy is a government program and law that should be taken advantage of if you need to.”  

Consumers shouldn't worry that filing for bankruptcy makes them bad people, according to Siegel, but they should get professional help instead of trying to file alone.  “Even though you can file bankruptcy yourself, you shouldn't.  It is important to have a professional involved who knows the law, because the consequences can be severe for mistakes made during the process.”

Asked whether he prefers simple or complex bankruptcy cases, Siegel says that he doesn't have much of a preference.  “Work is work,” according to Siegel, and he represents his clients' needs regardless of whether their case is straightforward or nuanced.

Michael Siegel is a bankruptcy attorney in New York City. It is his firm’s mission to combine large firm quality service with personal attention and caring for clients and their problems.

 

Bankruptcy Attorney Shares Secrets to Avoiding Financial Trouble: Yelena Kalika

Bankruptcy Attorney Shares Secrets to Avoiding Financial Trouble: Yelena Kalika

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New York, NY—For Yelena Kalika, who graduated law school in the United States after getting a physics degree in her native Ukraine, practicing bankruptcy law became a calling after the U.S. economy took a nosedive in 2008.

“I graduated law school in 2004, and for several years I was involved in pharmaceutical litigation—but since I was in law school, I always wanted to start my own practice,” she told laws.com in a recent interview.  “Several years ago, I figured it was the right time.  In the financial crisis, people were losing their jobs and their savings.  It was a very natural choice: I figured that people needed bankruptcy attorneys now more than ever.”

Being a bankruptcy attorney, Kalika says, is all about the little things.  “I use the same approach for every case, whether complex or simple.  Every number has to be verified, every question has to be asked.  Every case has taught me to pay attention to the details.”

Today, Kalika says that recent changes to New York bankruptcy law mean that consumers may want to take a look at bankruptcy as an option to protect their assets during a time of financial trouble.  “Changes in New York state law in 2011 included federal bankruptcy exemptions.  Federal exemptions are beneficial for debtors who don't have real estate, just consumer debt,” Kalika explains, a situation common to many New Yorkers who rent instead of owning.

The new exemptions don't stop there.  “The wild card exemption gives people the opportunity to protect assets they wouldn't be able to protect otherwise.  In addition, another change beneficial for debtors was the increase of the homestead exemption.  It now protects $150,000 in equity in a bankruptcy filer's home, per person—that's $300,000 for a married couple. (In other New York State counties the number may be lower).  People can now file for bankruptcy without being afraid of losing their homes.”

Kalika has financial advice for people who are worried about the state of their finances in the new economy.  “Don't overspend on what you can't afford—use your credit cards only in case of emergency.”  If your financial troubles get too deep, Kalika says you “shouldn't wait too long to file for bankruptcy.”

It can be critical, according to Kalika, to make sure that you're consulting with a bankruptcy attorney before doing anything with major tax implications.  “Tax debt is rarely dischargeable.  It's a lose-lose situation—tax authorities are a creditor no one wants to have.  The IRS can go after many types of assets, including benefits such as Social Security.  Clients should be aware of this, and file early before it becomes an issue.”

How can people avoid needing to file and falling into a debt hole?  The answer is simple, says Kalika: “Rich people prefer to pay cash for all purchases, whether those purchases are real estate, cars, or so on.  Whatever it may be, pay in cash—if you can't pay in cash, then you can't afford it.  People are rich because they follow that rule.”

Yelena Kalika is a bankruptcy attorney in New York City. She represents and assists individuals in consumer Chapter 7 and Chapter 13 bankruptcy and consumer debt matters.

 

Marvin Wolf Talks Bankruptcy Law: Fear and Lending in New Jersey

Marvin Wolf Talks Bankruptcy Law: Fear and Lending in New Jersey

Rochelle Park, NJ—“Bankruptcy law is not something at attorney can just jump into — bankruptcy law is a deceptively complex field that is becoming more complex with time,” Marvin Wolf, a bankruptcy attorney, told laws.com in a recent interview.

For Wolf, entering into this complex profession began in a big law firm.  “I chose bankruptcy law because of a desire to help people.  That law firm did more creditor representation work, whereas I ended up on the debtor side of the practice.  I like that there's never a quiet moment and the law is constantly developing.  There is always a new surprise, and the jurisdictions often treat the same law in different ways, which is unique for something that is characterized as federal law.  There is a constant battle between creditor attorneys and debtor attorneys.  It keeps you on your toes.”

In his years as a bankruptcy attorney, Wolf has seen a number of changes —not all of them beneficial to the consumer.  “In the so-called reforms of 2005, right-wing corporations took charge of Congress,” he says.  “Those reforms were not written by Congress – they were actually written by big business with the goal of making bankruptcy more difficult as a remedy for debtors.  The new law included elimination of some statutory breaks for debtors that were recharacterized as “loopholes”, and added new obstacles such as random audits and the means test.   As a result, cases have become more complicated, and filing for bankruptcy has become a more expensive proposition. Credit card companies had a goal of making bankruptcy unavailable for the average client.  Fortunately, debtor attorneys were able to find new workarounds and tactics to help debtors in need.”

Even some well-intentioned reforms can backfire, according to Wolf.  “One of the “reforms” instituted by BAPCPA (the 2005 Bankruptcy Act) was a mandatory credit counseling class requirement as a prerequisite to filing bankruptcy.  The problem is that the providers of these classes often aren't that well trained, or have an anti-bankruptcy bias.”  He notes that in many of the classes, filers must create a debt management plan with their counselor, and that these plans frequently produce inaccurate and unrealistic budgets.

One of the fastest growing debt segments in the American economy is student loan debt, and Wolf believes that bankruptcy law needs significant reform to help students who are in over their heads.  “It's the next bubble to burst.  I visit Congress every year, as a constituent and as a State Chair of NACBA [National Association of Consumer Bankruptcy Attorneys], and I feel these loans should be dischargeable in bankruptcy.  However, I also think they should close down half the colleges, because there are not enough jobs for all of their graduates to fill.  When a school produces a graduate with a high loan to pay off and no prospects for employment to pay off that loan, and with no means to ever discharge the loan, it creates a form of financial slavery.   This is unfair to the average student and also devastates the finances of parents, who are often co-signers on the loans.”

Students experience numerous problems when trying to do the right thing financially, according to Wolf.  “The recordkeeping for Sallie Mae is horrific.  Colleges exaggerate the importance of a college degree or offer degrees that don’t lead to sufficient meaningful employment when compared with the ultimate debt load.   Large schools treat student loans as a profit center, sometimes pushing loans from Sallie Mae rather than alternatives.”  Wolf believes that in this economy, many students would be better served by going into trades and building skills instead of going to college.  “Choose a job that can’t get outsourced.”

Today, Wolf says consumers are also facing increased problems with unfair debt collection practices.  “Creditors threaten jail sentences, harass employers and relatives, suggest token payments to extend the statute of limitations on old debts, and claim they only use direct wire transfer, which requires a debtor to send all their bank account information—once provided, they sometimes drain the account or cause it to be overdrawn.”

Many of these practices are prohibited by law, Wolf, says, including “scams out there in which creditors harass people after they've filed for bankruptcy.”  After a consumer has filed, creditors are supposed to stop contacting the consumer regarding the debt and must direct any communication toward the attorney.  To avoid fear-based debt collection scams, Wolf recommends keeping a written log of what was said, and saving all communications, so that a bankruptcy attorney can make sure the creditors have stayed within the bounds of the law.

In the new economy, Wolf says that staying afloat is not just a matter of doing the basics, such as spending within your means and paying with cash—though those help, too.  “Ask yourself: what happens if I lose my job tomorrow?  What can I do, and where can I do it?”  Wolf suggests having a “financial 'go bag'—ask yourself what skills you have, where you can go, and what you can do with those skills.  Pay attention to the writing on the wall, and even be ready to change careers.  Getting trained and certified for a particular job can be relatively quick and cheap sometimes.  Also, it’s easier to find a job while you still have one.”

When consumers need to file for bankruptcy, Wolf says it's important to be completely honest with their lawyers—and not to find the cheapest attorney on Craigslist.  This could end up costing more in the long run because newer practitioners can make expensive mistakes by filing incorrect petitions.  “Don't be afraid to tell your lawyer the truth or leave anything out.”  He also recommends you consult an attorney earlier in the process.  Wolf likes to recite what he calls Wolf’s Law Number One:  “Your legal rights are like a block of ice: if you sit on them, they melt away.  A case becomes more expensive the longer you wait.  Treat a financial problem as if it’s cancer: the sooner you get to treating it, the better the long-term prognosis.”

 

Marvin Wolf is a bankruptcy and debt relief attorney in Rochelle Park, NJ.

 

Bankruptcy Attorney Appreciates the Subtle Nuances of Bankruptcy Law: Carlos Cuevas

Bankruptcy Attorney Appreciates the Subtle Nuances of Bankruptcy Law: Carlos Cuevas

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Yonkers, NY—After getting his start at top-ranked Yale Law School, Carlos Cuevas let his strengths decide his career.  A great grade in a bankruptcy law class and new changes to the United States bankruptcy code made his decision easy.  Today, Cuevas works as one of the pre-eminent bankruptcy lawyers in New York.

“I appreciated the subtle nuances of the practice, as well as the rich tradition behind it,” Cuevas told laws.com in a recent interview.  He likens law to medicine, saying that both doctors and attorneys have a general knowledge of their field, but also should have specific expertise in a particular area.

A desire for intellectual stimulation has caused Cuevas to take a number of complex bankruptcy cases.  In fact, he says that he prefers complex bankruptcies to more straightforward situations, because they're “usually more nuanced.”

Changes to the United States bankruptcy code in 2005, including a means test, were expected to have a significant impact on filers, but Cuevas says that very few of his clients were actually impacted by these reforms.  Today, he says that the economic crash in 2008 has created a large need for bankruptcy attorneys, because many people have experienced unemployment or a significant loss of income or equity since the recession began.

Cuevas's clients face new challenges in 2013.  According to him, today's biggest challenge can actually come just from getting bankruptcy cases confirmed and completed at a time when up to two thirds can end in failure.  “Primarily, bankruptcy was used to prevent someone from losing their house, now many people are in trouble because their house was already in foreclosure,” he says, which limits the options consumers have for being able to hold on to their property.

Consumers today who want to avoid bankruptcy, Cuevas says, should “live within your means, invest in education and retirement.”

Even young people who are just getting started can make themselves less likely to file bankruptcy, according to Cuevas.  The answer can be as simple as going to the right school.  “People need to be more realistic about their academic pursuits,” he says, noting that the price of higher education is “out of control.”

“Be sure about what you want before taking on a student loan, and state schools need to be made into a more appealing option.  The lack of funding for state schools has caused a drop in math and science majors,” Cuevas says.  He suggests that reforming the bankruptcy code to allow students to discharge student loans would not be good for bankruptcy law, and that instead the government should work to find a better mechanism for funding higher education.

For new attorneys or law students who are considering a career in bankruptcy law, Cuevas says that there's no substitute for watching experienced practitioners.  “Every lawyer should visit the Supreme Court and sit in for an oral argument,” he says, noting that it's also critical for every new attorney to find a good mentor who can give professional guidance.

For over 25 years, Carlos Cuevas has represented debtors, secured creditors, unsecured creditors, creditors committees, equity security committees, and trustees in bankruptcy cases.

 

Nebraska Bankruptcy

Nebraska Bankruptcy

 

Nebraska Bankruptcy Law

 

Nebraska bankruptcy has specific procedures to follow.  These laws are extremely detailed and specific, so you may want to refer to an attorney or do some research of your own before considering NE bankruptcy.  An updated set of laws exists of the official District of Nebraska’s website under Nebraska bankruptcy procedure.  

 

Nebraska bankruptcy is intended to help the debtor through a tough economic period and carry them into financial and economic security in the future.  In order to educate people on the procedures of NE bankruptcy and the financial responsibilities involved in a settlement, the state of Nebraska makes an individual attend a credit counseling course six months before filing for Nebraska bankruptcy.  

 

Nebraska Bankruptcy : Personal and Corporation

 

Similar to other states, a citizen or corporation within the state of Nebraska can both file for different forms of bankruptcy.  An individual or family will usually choose to file a Chapter 7 or Chapter 13.  The two chapters provide different measures in repaying creditors.  A corporation suffering from financial trouble or a large debt can file for Chapter 11 bankruptcy.  The action will give the company time to reorganize and attempt to increase profits.  

 

NE Bankruptcy Chapter 7

 

In the state of Nebraska, a person or family may opt to file Chapter 7 bankruptcy if they cannot file a Chapter 13.  Chapter 7 debt usually allows a person to eliminate their unsecured debt, such as credit card bills, medical bills, and personal loans.  In some cases, a property will sometimes be put up for sale in order for a creditor to obtain repayment for debts.  Other assets can also be taken away if a Chapter 7 is filed, but there are some exemptions within the state of Nebraska:

 

• Up to $60,000 for a residence 

• 85% of wages for the head of the household and 75% of other members

• Up to $2,400 for a vehicle 

• Certain personal items

• Trade tools and professional books and/or supplies

 

NE Bankruptcy Chapter 11

 

A business or corporation can file for a Chapter 11 bankruptcy if they are facing a large debt or tough economic situation.  The owner of the company usually serves as the overseer of the reorganization of the company, and this type of bankruptcy usually works in “good faith” of the business owner.  

 

NE Bankruptcy Chapter 13

 

A family or individual can usually consider Chapter 13 bankruptcy if they have a steady income and are faced with an abnormal or tough economic condition.  Families often establish a repayment schedule of three to five years with a creditor.  If an individual or family defaults on this repayment, the state of Nebraska has specific laws and procedures that will affect the settlement.  

 

Taxes

 

Within the state of Nebraska, an individual must file all of their tax returns if involved in a NE bankruptcy.  The overseer of the repayments will often take the tax returns into consideration for repaying any debt.  If a company is involved in a Chapter 11, no personal assets or tax returns will apply.  

 

Filing for Nebraska Bankruptcy

 

Nebraska bankruptcy has very specific timelines and procedures for filing bankruptcy.  You should hire an attorney to the best of your ability in order to help you follow the proper procedures involved in a NE bankruptcy case.  If you cannot afford an attorney, you can file for Nebraska bankruptcy through a filing service, but your best chances for reaching a reasonable settlement involve hiring a Nebraska bankruptcy lawyer.  

Montana Bankruptcy

Montana Bankruptcy

 

Montana Bankruptcy Law

 

Montana bankruptcy laws that closely reflect the provisions and procedures of other states’ bankruptcy laws.  Additionally, many of the MT bankruptcy laws aren’t intended to prohibit a person or corporation from filing MT bankruptcy.  Instead, Montana bankruptcy law strives to help a person through a tough economic point in their life and carry them back into a good economic standing.

 

Before filing for Montana bankruptcy, a resident of Montana must take a credit counseling course before filing for MT bankruptcy, and they must also show evidence of taking a debtor education course before reaching a settlement.  

 

Montana Bankruptcy : Personal and Corporate

 

Individuals, individual families, and corporations can file for Montana bankruptcy.  A family or individual with a large amount of debt will often opt for Chapter 7 or Chapter 13 within bankruptcy law.  A corporation faced with a large business debt and/or lack of resources or production may file for Chapter 11 within the state of Montana.  There are a number of exemptions for all chapters of MT bankruptcy.  

 

MT Bankruptcy Chapter 7

 

Within the state of Montana, there is not limit of debt required for filing MT bankruptcy.  However, if the amount of debt is big enough, a person may not be able to file for Chapter 7 bankruptcy.  Filing for Montana bankruptcy will also greatly affect your credit, and the action usually appears on a credit report for 10 years within the state of Montana.

 

Chapter 7 bankruptcy is often referred to as liquidation, and the person is often left with a clean slate after all assets have been collected by creditors.  Some exemptions for handing over assets include:

 

• Homestead worth up to $250,000

• 75 percent of a person’s annual earnings

• Automobile worth up to $2,500

• Some personal property like appliances, jewelry, firearms, musical instruments, etc

 

MT Bankruptcy Chapter 11

 

If a business or corporation is facing bankruptcy, the company will file a Chapter 11.  The type of bankruptcy gives the company time to reorganize their expenses, employees, and any other type of measure that my decrease their owed debt.  Assets are not available to creditors within Chapter 11, but the value of company shares may be in danger in such a process.

 

MT Bankruptcy Chapter 13

 

In the state of Montana, you may file for Chapter 13 bankruptcy if you have steady income.  You will be required to make payments for a three to five year period.  During this time period, creditors cannot hassle you for repayment because a judge establishes a final settlement agreement.   Since foreclosure is sometimes a form of collection, Chapter 13 allows a family to keep their home through the bankruptcy process.  

 

Taxes

 

Your federal income tax may be considered an asset if you file a Chapter 7.  However, if you file a Chapter 13, you may be able to keep your income tax and use it towards living expenses and/or repayment.  Normally, other owed taxes cannot be waived within a Montana bankruptcy.  

 

Filing for Montana Bankruptcy

 

It’s always a good idea to hire a Montana bankruptcy lawyer before filing.  The attorney will be able to help you with all the documents and fees associated with the filing process, and they will be able to advise you while talking with your creditors as well.  If you cannot afford an attorney, you can go through a filing service, but you should attempt to hire a lawyer as much as possible.