Chapter 7

Wells Fargo has a policy of freezing debtor bank accounts that have a balance of more than $5,000. Don’t look for the source of this policy in the bankruptcy code, rules, or jurisprudence. Don’t look for it in the “best...

Here is how a bankruptcy liquidation is supposed to work: a trustee sells a debtor’s non-exempt assets and distributes the proceeds to the debtor’s creditors based on the order of priority set forth in the bankruptcy code. It makes sense...

It has been settled law in every circuit but one that wholly unsecured subordinate mortgages could not be stripped-off in chapter 7 cases. But since it only takes one heterodox circuit to create a split in the circuits, the US...

The Supreme Court of the United States issued its opinion June 12, 2004 in Clark v. Rameker, No. 13-299. The important holding from the Court is that inherited individual retirement accounts are not “retirement funds” under the meaning of section 522(b)(3)(C) of the federal...

A recent opinion issued on June 6, 2014 from the Bankruptcy Court for the Eastern District of North Carolina found that a creditor had not violated the bankruptcy code based on the following facts: In March 2008 a creditor realized...

Eastern District of North Carolina Bankruptcy Judge Randy Doub ruled in the Hurst case on June 20, 2014 that unusually high commuting expenses (70 miles for husband and 95 miles for wife) were not sufficient to show special circumstances such...

Eastern District of North Carolina Judge Randy Doub recently ruled against the plaintiff/trustee in a fraudulent transfer action captioned Angell v. Craft Air Services, LLC. The defendant had been paid funds by the corporate chapter 7 debtor over the 2...

In addition to the potential pleasure that might be enjoyed as a result of owning and utilizing certain recreational items (e.g. boat, camper, motorcycle, ATV, etc), there may also be a financial/legal benefit in a bankruptcy case. The reason is...

When a corporation is a chapter 7 debtor a trustee is appointed by the court to act on behalf of the bankruptcy estate. The chapter 7 trustee has the power to waive the attorney-client privilege with regards to communications that...

It is common for chapter 7 debtors to co-own property with a spouse, family member, friend, business associate, etc.. If the chapter 7 debtor’s interest in the property is not exempt then the chapter 7 trustee may seek to liquidate...