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We stay abreast of current legal developments. The law is always evolving.
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Bankruptcy Definitions: Chapter 7 Bankruptcy
CHAPTER 7 BANKRUPTCY: The chapter of the Bankruptcy Code providing for "liquidation," i.e., the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors. [Source: Bankruptcy Court, District of New Jersey; printed here as “Fair Use” under...
Bankruptcy Definitions: Business Bankruptcy
BUSINESS BANKRUPTCY: A bankruptcy in which the debtor is a business or an individual involved in business and the debts were incurred primarily for business purposes. [Source: Bankruptcy Court, District of New Jersey; printed here as “Fair Use” under the US Code]
Bankruptcy Definitions: Bankruptcy Trustee
BANKRUPTCY TRUSTEE: A private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's creditors. [Source: Bankruptcy Court, District of New Jersey; printed here as...
BANKRUPTCY LAW (Expansiveness of Automatic Stay)
BANKRUPTCY LAW (Expansiveness of Automatic Stay): Automatic stay of 11 USC Sec. 362 applies to bar actions against debtor and against the bankruptcy estate. This automatic stay protects the debtor, as well as the assets of the estate, and creditors. Actions that are...
REAL ESTATE & BANKRUPTCY (Preferential Transfer)
Whether a non-judicial foreclosure sale, carried out under State law in the 90 days to 1 year before bankruptcy, will be considered a “preferential transfer,” and therefore invalid, will depend upon many factors. The court must hear evidence regarding whether or not...
REAL ESTATE & BANKRUPTCY (Lien Stripping)
Where debtor received discharge of unsecured junior mortgage in Chapter 7 proceeding, and then filed a Chapter 13, the Court held that the junior mortgage was an unsecured debt, but not uncollectible, and the debtor should be required to make affordable payments on...
BANKRUPTCY LAW Preferential Transfer: Serial Overdrafts
BANKRUPTCY LAW (Preferential Transfer): The bankruptcy court abhors, and will seek to undo, what it considers a preferential transfer. A debtor who paid off serial overdrafts to his bank within 90 days of filing bankruptcy made preferential transfers. The court...
BANKRUPTCY LAW Preferential Transfer: Can the Transfer Be Unwound?
BANKRUPTCY LAW (Preferential Transfer): A preferential transfer is a payment made within 90 days before the filing of bankruptcy, which is not made in the ordinary course of business. WHEN the trustee or Court finds that the debtor has made such a transfer, the...
BANKRUPTCY LAW (Discharge): Relief From Pre-Petition Debts
BANKRUPTCY LAW (Discharge): A Chapter 7 Petition, and accompanying discharge, provide relief from pre-petition debts. The 9th Circuit Court of Appeal has stated: A Chapter 7 bankruptcy discharge releases the debtor from personal liability for her pre-bankruptcy...
