Kenneth E Lenz's Answers

What happens to the assets of a business when a person files BK???

So long as the business you own has a value that is exempt, the trustee will have no interest in liquidating it. The secured creditor(s) may exercise their rights to repossess and liquidate the assets you pledged as collateral. However, your bankruptcy gives you an opportunity to restructure the secured debts through a workout with the secured creditors. Your personal bankruptcy discharge will convert the loan into a non-recourse loan (your guaranty will be extinguished) so the creditor may...

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Sued by credit card company

The credit card plaintiff is likely to be given a second chance to reply to your affirmative defense, and you just alerted it to file that reply. There's nothing you need to do at this point, but the correct motion you should have filed is not a motion to dismiss, but a motion for default for failure to plead. The CT Practice Book is pretty complex. Most people don't attempt to represent themselves, unless the matter is in small claims court. The Court clerk can only give you a limited...

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Is a legal settlement exempt from bankruptcy? If I have not filed for bankruptcy and receive a legal settlement later?

If you obtained funds from a legal settlement and spent them prior to filing bankruptcy, the trustee may rightfully want to know what you did with the money, and require documents proving what you . If you preferred a family member or friend by paying that person back within a year of the bankruptcy filing the bankruptcy trustee may seek to avoid the preferential transfer. If you paid back any creditor within the 90 days prior to filing bky the same thing might happen. Further, to the...

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What is a conformed copy of a completed return of summons.

(1) Yes. If you properly served the summons and complaint and the defendant did not file an appearance, you can then file a motion for default judgment. (2) A completed return of summons is basically filling out and signing the reverse side of the summons, stating how you served the summons and complaint on the defendant. (3) Without knowing what your complaint asks for, I cannot answer this. If you are requesting monetary damages, you will need to file an affidavit of debt, or some sort...

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Ex filing chapter 7 bankruptcy in Connecticut. Does this affect back and current child support, including garnishment?

The reason you received a notice on the ex's bankruptcy filing is because the statute requires it, but his domestic support obligations (DSO) are not discharged in bankruptcy. I disagree with an earlier post that suggests you have to file for relief from stay, since the bankruptcy stay specifically does not apply to DSO. If you have a contempt action or similar action going against him in family support court, you might need to file a motion to lift the stay. You may want to look at his...

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I am an authorized user on a credit card this is not mine. Can i declare bankruptcy without hurting the primary account holder?

If as you say you are an authorized user, not a co-signer, on the account your bankruptcy will not damage the credit of the account holder. However, some creditors issue oddly-worded "trade lines" after bankruptcy like "bankruptcy filed by authorized user", which seems to imply the account is discharged in bankruptcy. This is not the proper wording, and may be challenged by the consumer on whose credit report it appears. I trust your reasons for filing bankruptcy are more substantial than...

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Am I responsible for husband's credit card debts if I'm a user on the card?

If you are a co-applicant on the account (or a co-signer) you are jointly responsible for the entire debt. Otherwise, you are responsible for only for the charges that you authorized. You should consider cancelling your account now. Amex is a pretty aggressive creditor and you may have to file bankruptcy to get rid of the debt.

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Is money owed in a divorce decree protected from bankruptcy discharge by section 523 automatically?

If the debt from your former spouse arose from a divorce judgment or separation agreement approved by a court, or arose from a divorce court order, and is owed to you or to your child, this 11 USC Sec. 523(a)(15) declares it non-dischargeable. You need not file any complaint or other legal pleading to fix that determination, as it arises automatically by law. About the only debt that is dischargeable is attorney's fees, unless a divorce court orders the debtor to pay them as part of the...

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Answering a small claims writ.

You may well be able to have the Court set a low payment, but the key is to appear in Court on this matter on your trial date. Just explain to the judge what your financial condition is and request a nominal order. Do not offer a financial statement or alert the plaintiff to the fact that you own a house (unless you are asked this under oath or by the judge). Just remember that any judgment will carry a statutory interest rate, so it will continue to grow until you pay it off. In the long...

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What are the $$ exemption for a personal injury with bankruptcy in CT?

The personal bodily exemption found at 11 USC Sec. 522(d)(11(D) states "a payment, not to exceed $20,200, on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an indifidual of whom the debtor is a dependent." You may also have been able to add a second exemption, the "wildcard" exemption, which is $1075, plus up to $10,125 of any unused amount of the "homestead" exemption. How long it takes to get the money is...

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