A total of $600 or more in money or property which is paid to a creditor within 90 days prior to filing is a preference. The Trustee may recover preferences and divide the money between all creditors. (In Chapter 13, the debtor may be able to prevent the trustee from going after the creditor by increasing the amount paid into the plan.) [11 USC §547(b)(4)(B), 11 USC §547(c)(8), 11 USC §101(31)]
Since 2007, the debt limits for you to be able to file a Chapter 13 bankruptcy have been $1,010,650 in secured debt, and $336,900 in unsecured debt. On April 1, 2010, those debt limits (along with most other dollar amounts in the Bankruptcy Code, including exemption amounts) will increase. in accordance with the increase in the Consumer Price Index for the last 3 years. The official numbers have yet to be released, but the new limits will probably be $1,081,500 for secured debt, and $360,525 in secured debt.
For Pennsylvania, the new means test numbers, effective 3/15/10, are as follows:
FAMILY SIZE
1 EARNER - $44,396
2 PEOPLE - $53,572
3 PEOPLE - $67,516
4 PEOPLE - $77,590
The previous figures were:
1 EARNER - $44,555
2 PEOPLE - $53,763
3 PEOPLE - $67,757
4 PEOPLE - $77,867
In In re Price, 370 F.3d 362 (3d Cir. 2004) the court held that a non-defaulting bankruptcy debtor has the option to retain property while remaining current on payments, without needing to enter into a reaffirmation agreement, a so-called “pass through” option. Cases within the Third Circuit decided since the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) have concluded that the passage of that statute did not affect the availability of the pass through option as recognized in Price. See, In re Baker, 390 B.R. 524 (Bankr. D. Del. 2008), In re Hart, 402 B.R. 78 (Bankr. D. Del. 2009). Thus, a Debtor is not required to enter into the Reaffirmation Agreement in order to keep the home so long as she makes the required payments.
A total of $600 or more in money or property which is paid to a creditor that is a relative or insider (certain business associates) within a year prior to filing is a preference. The Trustee may recover preferences and divide the money between all creditors. (In Chapter 13, the debtor may be able to prevent the Trustee from going after the relative by increasing the amount paid into the plan.) [11 USC §547(b)(4)(B), 11 USC §547(c)(8), 11 USC §101(31)]
Taxes based on income or gross receipts for which a return (if required) was due within 3 years prior to the filing of the petition are not discharged in Chapter 7. [11 USC §523(a)(1)(A)]
The date due includes any extensions, i.e., if the April 15 due date for income tax is extended to October 15 the later date will be used determining if the 3 year period has been passed. [11 USC §507(a)(8)(A)(i)]
The 3 year period may be extended by any time in a bankruptcy plus an additional 6 months. [11 USC §108(c), 26 USC 6503(h), IRC 6503(h)]
Penalties for taxes not discharged (above), tax penalties regarding a transaction within 3 years of filing, and government fines and forfeitures are not discharged. [11 USC §727(b)] [11 USC §523(a)(7)]
Debt incurred to pay taxes not discharged (above) are not discharged. [11 USC §727(b)] [11 USC §523(a)(14), (14A))]
A debtor may not file any bankruptcy if he or she filed a previous bankruptcy which was dismissed in the preceding 180 days either (1) on the court’s order because of your willful failure to obey orders of the court or to appear in court when required; or (2) at the debtor’s request after the filing of a request for relief from the automatic stay. [11 U.S.C. § 109(g)]
A debtor cannot receiving a discharge under Chapter 7 if he or she received a discharge in a Chapter 7 or Chapter 11 bankruptcy which was filed within 8 years before the present case is filed. 11 U.S.C. §727(a)(8)
A New York judge has wiped out $525,000 in mortgage debt for a couple, saying the bank misled him about the amount at stake and refused to work with the homeowners to modify the loan.
The judge from Suffolk County, New York, canceled the homeowners mortgage, interest and penalties after finding that the actions of the bank and its mortgage servicer were “harsh, repugnant, shocking and repulsive,” according to CNN. SEE THE VIDEO HERE: CNN VIDEO.
Powered by WordPress