When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 28, 2020, nearly everyone had questions about what the act contained. For bankruptcy professionals, there were two primary questions: Would the money be counted in calculating a debtor’s income? Would the money be part of the bankruptcy estate and subject to […]
A funny story from the world of credit…
Okay, since here at DFW/Denton/Lewisville Bankruptcy we’re always addressing serious topics, I decided to keep it light today. There’s a story buzzing around the internet that a 3 year-old recently got an American Express Gold Card application in the mail. Also, there are many report of dogs and cats getting credit card offers. If that’s […]
BANKRUPTCY: CROSS-COLLATERALIZATION AND CREDIT UNIONS
In bankruptcy, debtors often wish to discharge their unsecured debt but keep their secured collateral. This is generally allowed in bankruptcy, but a practice commonly employed by credit unions makes this process more complicated and often more expensive. The reason is because credit unions often include cross-collateralization clauses in their loan documents. Cross-collateralization means that […]
BANKRUPTCY:DISCLOSE YOUR CAUSE OF ACTION OR LOSE YOUR RIGHT TO SUE
When a person files bankruptcy, they are required to list all of their assets in their bankruptcy schedules. In bankruptcy, an asset is anything you own, but it also includes anything you may acquire contingent upon some event happening. For example, if you are in a car wreck, you may acquire a cause of action, […]
BANKRUPTCY: EXEMPTION FROM THE CREDIT COUNSELING REQUIREMENT
Debtors wishing to file bankruptcy are required to successfully complete a credit counseling course during the 180 days prior to filing bankruptcy. However, debtors that can show that they are incapacitated due to mental or physical disability may be exempt from this requirement. Under Sec. 109(h)(4) of the Bankruptcy Code, a debtor may be excused […]