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John Daniel Lamey

John Lamey’s Answers

10 total

  • I have a lien placed by the IRS & DOE. Can the gov'come after a LLC business account to collect funds despite multiple owners?

    I am disabled. Liens were placed on my personal account by the IRS for back taxes. They told be that my case is considered "non--collectible" due to my very low income, which is comprised of a disability check and a few dollars that I make a month...

    John’s Answer

    If the LLC bank account is set up under a separate tax ID number, the funds in the LLC account are safe. You may want to consider a very low payment chapter 13 to get you out of this mess!

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  • Need to file Bankruptcy and Need a lawyer!

    So here is the deal I use to make a lot of more money then I do no well actually now I make nothing.. I have a a lot of really dumb debt that there is no way I can pay its about 20,000 in total I have the list of everything owed and to whom and w...

    John’s Answer

    chapter 7 is your only option. chapter 13 requires you have regular income. 80% of the cases are chapter 7, so you are in the majority. Since your post implies you don't own a home, you would file in WI using the federal exemptions. After staking your vehicle and wild card exemption, your vehicle can be worth about 16,000 before you risk being "over" your limits. Cost wise, the court filing fee is 335, attorney fees at our firm would be a flat fee of $1500.

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  • I am in a chapter 7 right now if I convert to a chapter 13, do I have a deadline to file a new plan?

    Hello I am in a chapter 7 bankruptcy. I want to go to a 13. If I convert, how long do i have to file the plan? Is this something that is easy to do?

    John’s Answer

    You would have 15 days from the order of conversion. this time may be extended by application to the court stating the reasons you can't file the plan within the allotted time. Also, most courts have a "local" chapter 13 form that is on the court website. Using the local chapter 13 plan form is advised.

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  • Can a creditor take my social security disability back payment lump sum?

    I am permanently disabled and can no longer afford to live in my home. Unfortunately, my home is not worth what I owe on it anymore. In theory I will qualify for a "short sale" with one concievable exception. I still have most of the lump sum back...

    John’s Answer

    NO. In the state of Minnesota (and presumably all other states), any social security is excluded from the bankruptcy estate. Also, under Minnesota State exemptions, this money is protected if it is your bank account less than 60 days. If you let it sit in a bank account for more than 60 days, then it loses its protection. As you can see, this question is very state specific, if you do not live in Minnesota, please contact an attorney in your home state.

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  • Settlement of Lawsuit after Ch 7 filing?

    My wife and I filed bankruptcy in CA and received a discharge in October 2011. The bankruptcy was the result of a lawsuit filed against us. The legal defense in the case should have been handled by an insurance policy, but they refused to accept r...

    John’s Answer

    It all depends if the trustee filed a formal "abandonment" of the asset, or was it "abandoned" because the case was closed? What statute did you use to claim this as exempt? Was the magical language of "100% of FMV" used on Schedule C (Schwab US Supreme Court case). The Schwab case gives the trustee powers to snatch part of this settlement depending on the answers to the above questions. Go back to your BK attorney and discuss these questions with him/her

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  • How much does it cost to convert to a ch 7 from a 13?

    no longer can afford ch 13 payments..bank has filed a release of stay

    John’s Answer

    the attorney fees can vary greatly. In MN, some charge 700 to convert, others charge 1500 to convert. it is an additional fee as the attorney has to update the petition, do a new means test, and then attend another 341 hearing. There is a chapter 7 trustee appointed, so the attorney has to deal with this new trustee on any issues.

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  • I'm considering filing Chapter 13 bankruptcy while I'm separated. Will it affect my spouse?

    We are legally separated and I am considering filing Chapter 13 but I don't want her to be involved or effected. Is that possible for her not to be effected by me filing bankruptcy? The mortgage, one car, and several credit cards are under both o...

    John’s Answer

    There is a way to classify these "joint" consumer claims into a separate class under the chapter 13 plan, and have the trustee pay these claims in full, with interest (there is a provision under chapter 13 to "protect" non-filing debtors that are liable on consumer debts). Howerver, before the trustee will start making payments, the non-filing party's credit WILL be adversly impacted due to the period of time where no one is making the payments on this joint debt. As additional issue is that if the family law judge rules that you have to pay this "joint" debt, bankruptcy won't help you out as you will be legally obligated to pay it thought the divorce decree. If you were my client, I'd tell you to do one of 2 things: (1) file a joint petition with your estranged wife (let her know her credit will be trashed if you file any kind of BK, so she should jump on the ship with you); or (2) get divorced, see how the chips fall as to what marital debt you will end up being ordered to take, then meet with a BK atty to see your options under chapter 13 or 7.

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  • My dad filed bankruptcy and everything was discharged under schedule F, excluding IRS. Under Schedule D is the mortgage and a ju

    gement lien from my dads divorce attorney. My dad never showed up and they applied the judgement lien by default. Can we refile with the BK court a motion to avoid lien, and is the attorneys lien a secured lien. What does he hold secured...as c...

    John’s Answer

    The attorney lien is a creature of your state statutes. You must read the state statutes to see if the attorney complied with the requirements to file a lien against the homestead. From the sounds of your question, this might just be a plain old judgment for attorney fees? If so, this is a judgment lien that can be avoided as it impairs the homestead exemption. In Minnesota, there is a very simple process for removing a judgment lien after one gets their discharge. I would call around to attorneys in your area, it might be a very simple process. Regarding the IRS, the priority over "who comes first" typically depends on who recorded the lien first. Again, if no attorney lien on the real estate, it appears the IRS lien eats up all the equity.

    John Lamey
    www.brokemn.com

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  • Can I claim bankruptcy?

    I've lived on my own since I was 16, yet never became emancipated. So when I decided to put myself through college, my parents income counted as mine therefore I only qualified for high interest private loans of which I accepted the maximum amoun...

    John’s Answer

    Discharging student loans are nearly impossible. In most jurisdictions, you have to prove a substantial hardship, which, unless you have server medical issues (physical or psychological), is very hard to do. You still can file BK to get rid of the credit card debt, that will free up income to pay on the student loans. Another non-bankruptcy option to deal with student loans is to see if you qualify under the income contingent repayment plan. I would highly suggest you apply for this! here is the blurb from the website:

    "Income Contingent Repayment
    (not available for parent PLUS loans)

    This plan gives you the flexibility to meet your Direct Loan obligations without causing undue financial hardship. Each year, your monthly payments will be calculated on the basis of your adjusted gross income (AGI, plus your spouse's income if you're married), family size, and the total amount of your Direct Loans. Under the ICR plan you will pay each month the lesser of:

    1. the amount you would pay if you repaid your loan in 12 years multiplied by an income percentage factor that varies with your annual income, or
    2. 20% of your monthly discretionary income*.

    If your payments are not large enough to cover the interest that has accumulated on your loans, the unpaid amount will be capitalized once each year. However, capitalization will not exceed 10 percent of the original amount you owed when you entered repayment. Interest will continue to accumulate but will no longer be capitalized.

    The maximum repayment period is 25 years. If you haven't fully repaid your loans after 25 years (time spent in deferment or forbearance does not count) under this plan, the unpaid portion will be discharged. You may, however, have to pay taxes on the amount that is discharged."

    source: http://www.direct.ed.gov/RepayCalc/dlindex2.html

    hope this helps!

    John Lamey
    www.brokemn.com

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  • In chapter 7 bankruptcy. What would I expect to pay to hire lawyer to defend 707(b) motion. They think I make too much $

    I believe the means test was passed correctly, but I am still an above median earner. Now, I am faced with dismissal or chapter 13. Will I need to hire an attorney or is it mostly a matter of showing up and pleading your case to the judge? ...

    John’s Answer

    In our district of Minnesota, an attorney can not exclude this essential service. I do not know about your district. In any event, although you pass the means test, the US Trustee still can argue your circumstances still rise to the level of "abuse." A lot of the times, if you respond and "fight" the motion, the UST will back down as sometimes you can explain why it isn't abuse. If you check out my website (www.brokemn.com) and recent victories, we respond to almost every one of these (and win). Regards, John

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