Bankruptcy Information

There has been considerable buzz in the news lately about the financial woes of one of the world’s best-known soccer teams, England’s Liverpool Football Club. The trouble involves loan defaults, ownership issues and lots of other juicy bankruptcy-related news – of course, Liverpool’s fans probably aren’t too thrilled.

Loan Defaults and Contract Breaches

According to Bloomberg news, Liverpool Football Club’s money problems are somewhat thorny:

• Parent company behind on its loan: It seems that Kop Holdings, the parent company of Liverpool FC, has fallen behind on a loan agreement with Wells Fargo bank. In fact, sources note that the loan is in default (more than 30 days past due).
• Potential buyout by an American company: According to reports, the American company New England Sports Ventures LLC has proposed a buyout plan that would let England’s most successful soccer team avoid bankruptcy.
• Contract breach might prevent the sale: But, news outlets report, the current owners of the team made eleventh-hour changes to the board to ensure that its members voted against the buyout. Royal Bank of

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Tags: Club, Football Club, Liverpool Football, Liverpool Football Club

Before bankruptcy, I like to meet with you and go over your credit report.    The credit report I like best is at experian.com/reportaccess.

One reason I like that report is big print.  (I’m 62 and I’ve worn glasses since I was 8.)  But the other reason is that Experian report shows the balance history of your credit cards.

We don’t get that balance history on credit reports from freecreditreport.com.  Even though freecreditreport.com is owned by Experian, the report you get there doesn’t have that detail.  And the print is a lot smaller.

(I hate them for another reason, too.  I don’t think something is “free” if you have to sign up for an annual subscription to get it.)

Knowing your balance history is important in the timing of your bankruptcy.

The bankruptcy code, at 11 USC 523(a), provides that the bank can object to discharging their debt if you made a “false representation.”

The “false representation” they like to bring up is the small print when you sign a charge slip.  The small print that says something li

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Tags: Bankruptcy, Bankruptcy Why

The Federal Trade Commission filed a complaint last week with a federal judge to halt what was reportedly an organization devoted to tricking people out of money by promising to help with tax debts.

Tax Debt, Debt Relief Scams and You

Like so many other debt relief scams, this one is particularly difficult to stomach because it preyed on consumers who could least afford to lose the money they allegedly paid to the fraudsters. According to the FTC, here’s how the scam worked:

• False promises of debt help: In TV, radio and Internet ads, the company (called American Tax Relief LLC) reportedly claimed that it could settle consumers’ back tax debt for only a portion of the total amount.

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Tags: Tax, Tax Relief

Here’s a question from a bankruptcy attorney in South Florida which touches upon an important and very basic concept for the bankruptcy means test. The attorney states that he represents a Chapter 7 client who has been in a domestic partnership for a long time. He and his partner have two children. The client claims himself and  one of the children as a dependant for income tax purposes. The attorney asks if the debtor includes only his income and the expenses of the child he claims as tax dependent, or household income.

The answer is household income. For bankruptcy purposes, the debtor’s household includes all the people living in the home as a primary residence regardless of whom is claimed as a dependent for tax purposes. This debtor’s means test should include everyone’s income and everyone’s household and living expenses.

Tags: Bankruptcy Means, Bankruptcy Means Test, Means Test, Test

The Case Ransom v. MNBA appeared before the Supreme Court last week and raised interesting questions about the role of the means test bankruptcy filers must pass in order to qualify for protection under Chapter 7 of the U.S. Bankruptcy Code. Here’s a look at what’s involved in the case and what it might mean for future bankruptcy filers.

Car Payments and Income in the Means Test

The court case involves the bankruptcy petition of man named Jason Ransom.

• No car loan: Sources note that Ransom has a car that he owns fully – that is, he is no longer making payments on the vehicle.
• Ownership deduction: In his bankruptcy petition, Ransom reportedly claimed an ownership deduction of $471 per month for his vehicle.
• Court rejection: Because he had no car payment, though, the bankruptcy court rejected this deduction in his initial case filing. An appellate court upheld the decision. T

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Tags: Case, Means Test, Supreme Court