Judge’s Decision Clears Way for Stockton’s Chapter 9 Bankruptcy
A ruling by Judge Klein of the U.S. Bankruptcy Court (ED California) has allowed the city of Stockton, California to proceed with its chapter 9 bankruptcy case filed last June.
Read MoreBankruptcy in the News: Girls Gone Wild Files for Chapter 11
Girls Gone Wild, the adult entertainment franchise with the memorable late night infomercials, filed for Chapter 11 protection last Wednesday.
Read MoreWhen Must I Start Paying My Mortgage in Chapter 13 Bankruptcy?
One of the main reasons to file chapter 13 bankruptcy is to save your house from foreclosure. If you are doing a “save your house” chapter 13 bankruptcy, then you are probably behind on your mortgage payments. To save your house in a Colorado chapter 13 bankruptcy, you must do two things: Restart paying your contractually due mortgage payment, and Propose to cure your mortgage arrears (back payments) in your chapter 13 plan. In a Colorado bankruptcy the debtor is responsible for paying the mortgage directly, unlike some states that have the debtor pay the bankruptcy trustee both the...
Read MoreBankruptcy Is About Forgiveness; Bankruptcy is Moral!
The idea of debt forgiveness goes back thousands of years. The Old Testament provides that lenders shall forgive debt every 7 years; Deuteronomy15, 1-11. The interesting thing to note about that passage is that the text places the moral duty on the lender. It was part of a lender’s moral or ethical code to forgive debt every 7 years. Where has that moral duty gone today? Conceptually, modern bankruptcy law is how we hold financial institutions to that moral code. However, laws and regulations are poor substitutes for genuine moral obligation and courage; hence, why we have lost the idea...
Read MoreDo I Lose Frequent Flier Miles If I File Bankruptcy?
As a practical matter, most likely yes. If you have a credit card that provides frequent flier miles or points and you file bankruptcy, you will lose those miles or points. Whether you keep or lose the points is up to the lender. Bankruptcy doesn’t force the issue, but every lender I have encountered has a policy/clause in its credit agreement that if the debtor defaults or files bankruptcy, the lender can revoke the miles or points. Even if the card has a zero balance when you file bankruptcy, you will still lose the miles. As such, there is no benefit to trying to pay-off that card prior...
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