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Mohammed Omar Badwan

Mohammed Badwan’s Legal Guides

20 total


  • What Not To Do When Contemplating Bankruptcy

    Paying back a relative Relatives are considered "insiders" in the bankruptcy world. The bankruptcy code prohibits prefering one creditor over another. The bankruptcy trustee has the power to undo any

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  • Who is Considered an "insider" in a Consumer Bankruptcy?

    In a consumer bankruptcy, the trustee has the authority to recover any payments to an "insider" made within one year immediately preceding the commencement of the case. An "insider", if the debtor is an individual (opposed to a corporation or partnership), is any relative of the ...

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  • 341 Creditor's Meeting

    Everyone that files bankruptcy MUST appear before the US Trustee at a meeting known as the 341 creditor's meeting. The purpose of the 341 meeting is for the Trustee to gather information about you for the benefit of the creditors. The Trustee's main objective is to verify the inf...

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  • The Coveted Automatic Stay

    Pursuant to 11 U.S.C. 362, once a debtor files for bankruptcy, all collection efforts by creditors must cease. Therefore, they can not continue to collect on the filer's debt or property. Keep in mind that secured creditors can file a motion to lift the automatic stay if their co...

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  • Mortgage Payment Deduction Allowable In Means Test Even If Surrendering Property

    The situation is as follows: Chapter 7 debtor wants to surrender his/her home in a bankruptcy. In order to qualify for a Chapter 7, they will have to pass the means test if their income is above the median. The question becomes, is the mortgage an allowable expense when surrender...

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  • Saving A Home With A Chapter 13

    It may sound too great to be true. I am sure you have heard of saving your home by filing a Chapter 13 bankruptcy. If filed correctly, a Chapter 13 can save ones home even though they are in late stages of foreclosure. Here's how it works. In order to save your home with C

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  • 85% Of Accounts Receivable For Services Rendered Exempt From Bankruptcy Estate

    There has been a tremendous amount of disagreement among the Courts as to whether unpaid wages for services rendered are part of a consumer's bankruptcy estate. Judge Wedoff out of the Northern District of Illinois has ruled that only 15% of the wages are subject to the estate. T...

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  • Statement of Intention

    Everyone filing bankruptcy must file a "Statement of Intention" with their petition. The Statement of Intention is exactly what it sounds like. The consumer must notify secured creditors (creditors whom the consumer is making monthly payments to) as to their intention regarding t...

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  • 401(k) Deductions and the Means Test

    Many clients are stumped when I inform them that they do not qualify for a Chapter 7 because they have disposable income at the end of the month after all their necessary expenses are deducted. Any debtor making over the median income for the applicable household size must pass t...

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  • No Absolute Right to Voluntarily Dismiss Chapter 7

    The scenario is as follows: client wants to file a Chapter 7 but does not want to lose any personal property through liquidation. After advising the client that any nonexempt property may be liquidated by the trustee, the client asks if they can "take back" their bankruptcy filin...

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