The Legal BLOG

New Bankruptcy Myths for 2012: Run Up Credit Cards to Qualify for Chapter 7

February 6th, 2012

This week, our blog will be busting the top three bankruptcy myths for 2012. This blog has already discussed how bankruptcy will not destroy a person’s credit (it will likely improve a credit score,) how bankruptcy is not a moral failing  (honest individuals are forced to file every day,) and how debtors greatly benefit from having a qualified bankruptcy attorney (do not be fooled into using a “petition preparer.”) So this week, our blog will move on from those old bankruptcy myths and discuss some that are more relevant for 2012. The first myth, that running up credit cards is a sure way to gain access to Chapter 7, is based on people’s misunderstanding of the bankruptcy means test. To qualify to file for bankruptcy in a Chapter 7 proceeding, a person’s income must be below the median income for the state of residence. If the individual’s income is higher…
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Reinstate Your Driver’s License in Chapter 13 Bankruptcy

February 3rd, 2012

Suspending a driver’s license is a tool many states use in order to coerce debtors to pay outstanding judgments, unpaid parking and traffic tickets, or child support arrearage. The problem with suspending a license, however, is that will only make it more difficult for individuals to retain employment in order to pay creditors. The good news for those who have steady employment is that filing for bankruptcy can allow for a reinstatement of a driver’s license, and a Chapter 13 repayment plan will allow the debtor to make payments on the outstanding debt over time. Without filing for bankruptcy, an individual’s license will only be reinstated if the judgment or debt is paid in full. It may also be reinstated upon a discharge of debt in bankruptcy, which may take months to complete in Chapter 7. Under Chapter 13, however, a person can get his or her license back once…
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Temporary Emergency Jurisdiction Under the UCCJEA

February 2nd, 2012

On Tuesday, this blog looked at the UCCJEA to explain an overview of general child custody jurisdiction. If the child has no “home” state, then for a court to make a decision about the child, the state must have ties more than just the child’s physical presence. Temporary emergency jurisdiction, however, allows for jurisdiction in any situation where the child is phyciall present. A state can make emergency decisions regarding the child if he or she was abandoned, if it is necessary in an emergency to protect the child, or a parent or sibling is subjected or threatened with mistreatment or abuse. The court’s decision-making ability will only be for the duration of the emergency. The state making decisions must include an end date to give the case back to the child’s home state. This is not always a clear-cut issue, as was recently demonstrated in the Mindy McCready parental…
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