Archives January 2021

Good Faith Factors in Chapter 13

lady justice with flag background

Overview: The Bankruptcy Code requires Chapter 13 plans to be “proposed in good faith”. The code does not have a set standard of what meets this “good faith” test, but courts tend to have a list of factors they consider along with a totality of the circumstances test to determine good faith. Today’s post details what that means for debtors filing plans in Kansas and if the factors set out in Flygare are still relevant for a good faith analysis.

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Do married people filing separate bankruptcies each get a homestead exemption?

Overview: 

When you are considering filing for bankruptcy and you are married, you must decide whether or not you and your spouse want to file together, only have one person file, or both file separately.  You have the option to file jointly, meaning all property of both spouses and all debts become property of a single bankruptcy estate. You can also file separately without your spouse or only one of you could file. Depending on your situation, one may be more beneficial than the other. 

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Can the bankruptcy trustee seize my class action settlement?

Financial disclosure is paramount in filing a bankruptcy petition and can impact the chances of a discharge. In re Lana shows us that the trustee is always looking, even post discharge, for undisclosed assets and why it is important to disclose any potential lawsuit or settlement in your Schedule A/B. Today’s article will touch on personal injury claims and how they fit into the bankruptcy estate. 

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Should I Borrow from My Retirement Account to Pay Down on Debts?

The short answer is no. The long answer is still no unless the circumstances are appropriate.

If you borrow money from your retirement account to build a gazebo or replace the roof on your house or even to buy a car it might be a financially sound decision. You have something tangible to show for it – a gazebo, roof, or car. As long as you are paying attention to your budget and not over extended it should be okay. This is not the same as paying off debts.

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