A ritual of spring in America is about to begin. Tens of thousands of people will soon get their tax refunds, and when they do, they will finally be able to afford the thing they’ve thought about for months, if not years: bankruptcy.

As a consumer Bankruptcy attorney, I cannot recount how many times over my career I have heard these words, even though the need for Bankruptcy relief is compelling – if not overwhelming.

Ipso facto literally means "by that very fact" in Latin. It is an extremely important concept in Bankruptcy which if not recognized and enforced, could undermine the very protection of Bankruptcy itself.

Certainly a visit to a bankruptcy attorney would rank up there with one of the least anticipated appointments on a calendar.  However, like many type of medical visits, needless delay can be extremely costly or worse to the bankruptcy process.  As I say so often, it rarely gets better with time. 

The author of the expression that “nothing is certain but death and taxes” never spoke to a bankruptcy lawyer.  Contrary to what many think, taxes under certain circumstances can be discharged and eliminated in a bankruptcy filing.

This season brings out the best - and regrettably sometimes the worst in individuals. For example, in the effort to "enjoy the season" we often go overboard and spend well beyond our means which can create havoc just a few short months from now.

A Presidential election may have more impact on one’s daily life than you might guess. Look no farther than the 2004 Presidential election which returned George W. Bush to the White House with a sufficient Republican majority to pass through the 2005 Bankruptcy “Reform” Legislation which had been vetoed (pocket vetoed to be exact) by President Clinton in 1998 and stalled by the Democrats in the Senate during President Bush’s first term.

Why would someone voluntarily agree to repay a debt just discharged in Bankruptcy? Isn’t bankruptcy designed to eliminate debts? This concept of reaffirmation of debts, as permitted by 11 U.S.C. §524 (c) of the Bankruptcy Code has become one of the more vexing issues faced by bankruptcy counsel and debtors.

2+2 may not always equal 4. 

Depending on the type of plan, events may transpire post petition which could increase the amount necessary to satisfy the Chapter 13 obligations.  There may be additional administrative claims (for legal fees on application to the Court) or post petition creditor claims which could increase the amount necessary to fund the plan.

13 Myths About Chapter 13 Bankruptcy

So much is written and put out on the internet about the “Individual Repayment” option contained in the Bankruptcy Code under Chapter 13 that it probably is not surprising that much of it is either skewed for one reason or another - or is outright misinformation. This article includes some of the fairly constant refrains we as bankruptcy lawyers hear from clients to explain their hesitancy to consider Chapter 13. It is further an attempt to clarify and/or reassure individuals who may be considering Chapter 13 or desperately need its enhanced protections under the Bankruptcy Code.

Most people have heard of the basic Chapters of Bankruptcy filing; Chapter 7, 11 or 13.   Some are even aware of the less used provisions of Chapter 12 (for farmers or fishermen) or Chapter 9 (municipal entities) or even of late Chapter 15 (for foreign corporations).  But a hybrid approach called "Chapter 20" is getting a lot more attention.

The notions of filing for Bankruptcy and enjoying the holidays are not as foreign as one might think. Most people will try to forget their financial issues around this time of the year, but the financial stress can never be far from the surface. Creditors do not go on holiday. One of the primary goals of a bankruptcy filing is to restore some financial sanity to people's existence - so that they can enjoy the rest of their lives.

The ability to create a plan of action which deals with the overwhelming burden of out of control debt is itself a form of relief. Long before the actual bankruptcy petition is filed with the Court, our office will tell clients to refer creditor and collection calls to us so that we can inform them of the pending Bankruptcy filing, and with it the imposition of the federally mandated automatic stay which stops everything in its place. Even though there may not be a legal bar for collection (although harassment is always prohibited under law), most creditor are not terribly interested in pursuing individuals about to file Bankruptcy. It is not in their financial interests to do so.

Phone scammers are targeting bankruptcy filers in several states, using personal information from filings and posing as attorneys to get intended victims to immediately wire money to satisfy a debt.

The National Association of Consumer Bankruptcy Attorneys issued a warning that “Under no circumstances would a bankruptcy attorney or staff member telephone a client and ask for a wire transfer immediately to satisfy a debt. Nor would the bankruptcy attorney and staff ever threaten arrest if a debt isn’t paid.”

Bankruptcy filers in Vermont and Virginia reportedly have received calls. Vermont’s Attorney General says scammers use software to “spoof” the Caller ID system so the call appears to be originating from the phone line of the consumer’s bankruptcy attorney. Typically the calls come late in the evening or during non-business hours to make it difficult for intended victims to verify the call by contacting their attorney.

October 17, 2015 marked the ten year anniversary of the implementation of the 2005 "reform" legislation (entitled the Bankruptcy Abuse Prevention and Consumer Protection act and commonly known as BAPCPA.). While some of the doom and gloom predictions that the Bankruptcy practice would be eradicated in this country were obviously overstated and have proven utterly groundless, it would equally be inappropriate to deny the reality that the practice has substantially changed in these years- and has become much more difficult, aggravating and expensive for bankruptcy debtors.

This peculiar concept in Bankruptcy Law can offer immeasurable relief to bankruptcy debtors in general, and struggling homeowners in Chapter 13 Bankruptcy specifically. It refers to whether or not a creditor’s claim is truly “secured” under the Bankruptcy law, and if not –it potentially can be treated as an unsecured creditor and be paid little (or even nothing) in the Bankruptcy and the lien on the collateral voided.