David Adam Blansky's Answers

Objection to Motion of Relief from Automatic Stay

The creditor has likely sought relied under 11 U.S.C. 362(d)(1), which provides that upon appropriate notice and a showing of cause, which showing can include a lack of "adequate protection", a party may terminate the stay as it applies to the collateral. "Adequate protection" protects the secured creditor from a decrease in the value of the creditor's interest in such property during the bankruptcy case. With respect to real property, it is essentially the value of the property above the...

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What do I have to do after being served papers from a creditor seeking a debt collection judgment

Once a judgment has been entered against a person, the party who obtained the judgment - the "judgment creditor" - will takes steps to enforce its judgment agains you, the "judgment debtor". The judgment creditor may attempt to record the judgment in any county in which real property you own is situated for the purpose of creating a lien against that property. The judgment creditor will also want to learn about your assets and prevent your from transferring them. To learn about your assets,...

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Summons on credit card debt.

There is no harm in trying to negotiate a payout with your creditor, however you should be mindful of the deadline to respond to the summons and the attached complaint, if any. There may also be a notification of a court date. You do not want to default by failing to respond or appearing in Court when directed. In your question, you do not identify in which Court your case is pending. If this is a small claims court, then the pleading requirement are pretty liberal and the clerk might...

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If we convert our chapter 13 to a chapter 7 can we still keep our home

It sounds as though you no longer have the disposable income necessary to fund your plan, in the event one has been confirmed. You may have no choice in the decision to convert your case, but find your case converted as a product of your failure to comply with your plan. I suspect that in the Chapter 13 you had hoped to pay any mortgage arrears existing at the time of your filing over the life of your Chapter 13 plan (typically 3-5 years), without interest. In a Chapter 7, a Chapter 7...

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Do I have to file bankruptcy if the only debt I have is the mortage?

While a Chapter 7 bankruptcy filing may help stall a foreclosure proceeding, it will not enable you to "discharge" the mortgage. However, a bankruptcy filing where the only real debt is a mortgage may be beneficial where the property is "under water" and the foreclosure is inevitable. Where a property is worth less than the amount of the mortgage, a deficiency judgment for the difference can result after sale. While the mortgage itself generally cannot be discharged in bankruptcy, the...

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How do I file a Complaint Objecting to Discharge of the Debtor or to Determine Dischargeability of Certain Debts?

The most important thing is to make sure you do not miss the deadline for filing your complaint objecting to the discharge (11 U.S.C. 727) or seeking a determination of dischargeability (11 U.S.C. 523). The notice of bankruptcy filing you received, which among other things likely references a date of a meeting of creditors, contained a deadline for a complaint such as yours. If you fail to commence your action by filing your complaint with the Bankruptcy Court before that deadline or to...

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Can filing bankruptcy affect tax returns?

Note that a tax refund for the pre-bankruptcy period paid to you after you file may be property of the bankruptcy estate, subject to any cash exemption to which you are entitled. You should consult your bankruptcy counsel concerning the impact of any anticipated refund. In the event you were unaware that a refund was due to you at the time you filed, but learned of it afterwards, you should made your bankruptcy trustee aware of it as you will likely be required to deliver that part of it...

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I have about $15,600 in delinquent credit card debt. Is it wise to use a debt settlement company?

Be aware that there are tax consequences to the settlement of debts. For example, if you manage to compromise your $15,633.00 in debts by paying the banks 40% of that amount, i.e. $6,253.20, the settlements would result in the foregivess of $9,379,80 in debts. This forgiveness of debt is generally treated as income, should result in a 1099 form issued by the settling creditors to you and a tax liability on the forgiven debt. Be cautious in proceeding with debt compromise and be prepared...

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Debt collection by original creditor

Under the Fair Debt Collection Practics Act, creditors are prohibited from attempting to collection a debt using harassing tactics. A copy of the Act may be found here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf In part, the Act provides that a "debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the...

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Can I keep my cars after bankruptcy?

The short answer, in a Chapter 7 bankruptcy, is "yes". However, there are strict time constraints that must be abided by if you wish to keep the vehicles. Under the bankruptcy law effective as of 2005, upon filing a Chapter 7 bankruptcy petition, a debtor must, within 30 days of that initial filing date, file a 'statement of intention' with respect to any debts secured by the debtor's assets as of the date of the bankruptcy filing. The debtor then has, under 11 U.S.C. §521(2)(B), 30 days...

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