Michael L. Detzky Law Blog

Over the last few months I have had several consultations with potential clients who at first appear to be eligible for chapter 7 bankruptcy. They own no real estate nor business and have little if any money in bank or brokerage accounts. Everything appears to be on track until a little more questioning reveals the following:

1) They did own a house but transferred their interest in the real estate to their spouse or child and received no money in return, and continue to reside... Read More

It's Spring! The traditional time to clean up from old man winter. This year instead of  just thinking about Spring cleaning for your home, why not  consider cleaning up those old debts as well? Why anguish over 18, 19 and 20% interest rates on Christmas bills from 2009 when bankruptcy may offer a way to get out of debt once and for all and get a fresh start for Spring? Don't let misconceptions and false information about bankruptcy prevent you from taking immediate positve steps... Read More

In the classic Charles Dickens story, A Christmas Carol, Ebenezer Scrooge is approached by two men seeking donations for the poor. His response was "Are there no prisons, are there no workhouses? Better for them to die and decrease the surplus population". Although there are no longer "debtor's prisons" and public workhouses, worry about  overwhelming debt can lead to marital discord, fear and depression. Thankfully, society has come a long way since... Read More

Anyone contemplating filing a bankruptcy petition should be alerted to the fact that Wells Fargo Bank, N.A., and it's recent acquisitions Wachovia Bank and Wachovia Bank of Delaware have adopted a national policy of unilaterally freezing the checking and savings accounts of its depositors who it learns have filed a Chapter 7 case. This freeze remains on the affected accounts until the bank is formally notified by the Chapter 7 case trustee in writing that he or she has no claim... Read More

I'm very pleased to announce that  I am a contributing author to the Aspatore Books series Inside the Minds, Trends in Consumer Bankruptcy Filings. My chapter,  entitled Current Challenges and Strategies for Chapters 7 and 13, is the first one in the book and discusses the major changes I have observed in my consumer bankruptcy practice  since the enactment of the Bankruptcy Prevention & Consumer Protection Act of 2005. I have written both here and... Read More

I recently wrote about a recurring scenario I have been encountering in my consultations with potential bankruptcy clients. They earn too much money to qualify for a Chapter 7 pusuant to the "Median Income" Test adopted by Congress in the  Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and have too much debt to qualify for a Chapter 13 Bankruuptcy pursuant to the debt limits of Section 109(e) of the Bankruptcy Code. Even though those debt limits were... Read More

At least once a week while conferring with a potential bankruptcy client it is revealed that he or she owns real estate, a car or other valuable personal property worth far more than can be protected by the available exemptions under the bankruptcy code. Invariably, their response is "Why can't I just deed it or give it to my [wife, sister, brother, etc] and thereby get it out of my name?"  The assumption is that if they simply transfer the valuable  property... Read More

A frequently encountered question from my bankruptcy clients is whether their spouse must be included in their bankruptcy petition. The short answer is no. It depends on whether or not the spouse is jointly liable on the debts. For example, many credit cards offer the cardholder the option of  authorizing a spouse or child to have a duplicate card in their name for their convenience with the ultimate responsibility for payment remaining with the primary account holder. This is... Read More

This October will mark Five years since the terrible mistake called "The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" BAPCPA.  This ill conceived, mean spirited and illogical piece of legislation, bought and paid for by the political contributions of the consumer credit card industry, had the backing of both sides of the political spectrum. It introduced, for the first time in the history or our bankruptcy laws both a medium income test which... Read More

Almost every day now brings encouraging news that the recession is finally over. Increasing home sales, lower unemployment figures and  increased consumer spending are all seen as signs pointing to a recovery. Most bankruptcy lawyers have also seen a less well publicized signal, a major shift in the types of people who are now filing bankruptcy petitions. It is rare nowadays to encounter a client who is within or below the median family income level necessary to qualify... Read More