Finding solutions for your consumer debt problems in bankruptcy

Here is a scary statistic for 2007 being reported by ABC News: 10% of American homeowners owe more money on their house than the house is worth. That figure has doubled from 5% in 2006.

For homes purchased in the past two years, the figure shoots up to an alarming 30%, according to Reuters. These are the highest numbers of homes under water since the Great Depression of 1929.

Eight million families are in danger of losing their homes due to mortgages that are greater than the value of the homes. See what fellow blogger, Gene Melchionne, has to say on the Mortgage Law Network about what this means for all Americans, particularly retirement funds.

A Wichita car dealer who gave money to relatives before filing his bankruptcy case and lied on his bankruptcy paperwork was convicted of federal crimes this week and faces possible jail time for his fraud.

Evidence at trial proved he gave money to his wife and his brother prior to filing his bankruptcy case and he lied on his paperwork. He falsely said he had no bank accounts and he had made no transfers of money to relatives nor closed any bank accounts. He also charged $125,000 on credit cards within a year of filing the bankruptcy petition for airline tickets, jewelry and other goods. [Read more →]

The bankruptcy judges in Kansas have approved new language for all chapter 13 confirmation orders that will put an end to the abusive practice of secretly adding fees to a debtor's mortgage loan balance.

No real estate creditor shall ever assess, charge or collect, from either the debtor or the real estate collateral, any assessments, fees, costs, expenses or any other monetary amounts, exclusive of principal, interest, taxes and insurance, that arose from the date of the filing of the bankruptcy petition to the entry of the Order of Discharge except as may be allowed by court order or an allowed proof of claim.

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Kansas Attorney General Stephen N. Six issued the following statement on home mortgage foreclosure this week, urging people facing foreclosure to seek help from an attorney.

Home foreclosure is a growing problem in Kansas and across the nation. Mortgage fraud and subprime lending have left many homeowners stuck with home loans they can no longer afford.

My office recently convened a task force to investigate this problem. Consumer advocates met with representatives from lending and real estate industries to determine ways we can stem the tide of home foreclosure in Kansas.

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Jill Michaux has earned recertification in consumer bankruptcy law by the American Board of Certification. She was awarded her 15 year pin as a consumer bankruptcy specialist.

She was the first Kansas lawyer to be board certified in consumer bankruptcy law. Her partner, Mark Neis, was second. Today, they are the only board certified consumer bankruptcy specialists in Topeka and two of ten in Kansas.

Board certification means that Jill has met rigorous, objective standards and has demonstrated expertise in consumer bankruptcy law. She goes the extra mile to keep current on bankruptcy law changes by attending national seminars, participating in daily e-mail updates and by attending several times the hours of continuing legal education required by Kansas.

You expect certification from your doctor - expect it from your lawyer too. Hiring an attorney with expertise in any specialized field of law, such as bankruptcy, can be a bewildering experience. As a client, you want to make sure your attorney is experienced in consumer bankruptcy law. Choosing a board certified specialist in one way to make sure.

Your spouse does not have to file bankruptcy with you in Kansas, but make sure you don't want to file a joint case, because you can't add your spouse to the case later.

Judge Dale L. Somers denied an attempt by a debtor to add her spouse two months after she filed her case by amending her petition filed with the Court. In Re Cheryl R. Daly, 07-22628-13, (Bankr. D.Kan. 01-28-2007).

It would be possible for the nonfiling spouse to file his own case and then consolidate the two cases for administration.

A bill has been introduced in the Kansas legislature to exempt federal earned income tax credit. The law, if passed, would protect the funds from seizure by creditors.

Earned income credit is money the federal government gives to low-income individuals and families in the form of tax credit, which is paid in the form of a tax refund even if no taxes are paid or owed. [Read more →]

The Kansas income guidelines for the bankruptcy means test go up February 1, 2008.

Kansas Median Family Income by Family Size for Bankruptcy Cases Filed on or After February 1, 2008,

• 1 earner……….$38,594
• 2 persons……..$52,989
• 3 persons …….$58,075
• 4 persons …….$69, 831
• 5 persons …….$76,731
• 6 persons …….$83,631
• Add $6,900 for each additional individual

Richard A. Wieland has been named U.S. Trustee for Region 20, which covers Kansas, Oklahoma and New Mexico.

Wieland has been serving as acting Region 20 U.S. Trustee since September 1, 2007. He is familiar to the Kansas bankruptcy bar, having been a trial lawyer in the Wichita office since 1988. When the Bankruptcy Abuse Prevention and Consumer Protection Act was enacted in 2005, he played a pivotal role in implementing the consumer credit counseling and debtor financial management education requirements for the Executive Office of the U.S. Trustee in Washington, D.C

The U.S. Trustee program is charged with overseeing bankruptcy case administration. Region 20 offices are headquartered in Wichita with additional offices in Oklahoma City, Tulsa and Albuquerque.

Here is a link to the official EOUST press release.

A $49.8 millon creditor of NovaStar Home Mortgage Inc. filed an involuntary bankruptcy petition against the company in Kansas City this week.

The petition was filed January 23, 2008, in the U.S. Bankruptcy Court for the Western District of Missouri at Kansas City.

For more information see the article in the Kansas City Business Journal or the bankruptcy court's website.