The Rule 2004 Examination is adapted from the civil “discovery” process in a case.  It allows debtors, bankruptcy Trustees and any other party in interest in a bankruptcy case to examine “any entity” (meaning whatever part of the bankruptcy and its dealings that they choose) as long as the examination relates to, according to Rule [...]

What’s the purpose of the Means Test? The basic purpose of the Means Test is to determine whether a Debtor is eligible to file Chapter 7 bankruptcy.  Along with other supporting requirements, the Means Test plays a major role in Chapter 7 bankruptcy.  The Means Test also tells us whether a Debtor would need to [...]

Rental properties can be a great source of income until a renter moves without notice or fails to pay or that rental income starts to be used for your personal household expenses.  As situations arise, many people are finding it necessary to file bankruptcy and surrender a rental property or properties they own.  When you [...]

The Internal Revenue Service (IRS) uses a basic logic that if you have any signing authority over the business bank account, then you can be held personally responsible for certain taxes owed by that business.  So, yes, if you own a business or part of a business, be prepared to pay certain accrued taxes. This [...]

Many of those who are facing financially tough times right now are stressed out even more by creditors who call non-stop. Creditors push the boundaries on what they may and may not do to collect a debt. For example, here is a voicemail a client of ours emailed us the other day. Our client allowed [...]

Yes, in some cases, you can lower your mortgage on a non-residential piece of property.   In a Chapter 13 bankruptcy, clients can attempt to do what is known as a “cramdown” to lower their mortgage.  A “cramdown” lowers the principal amount you owe on the mortgage, and then the bankruptcy court determines the interest rate [...]

This is an excellent question.  For the most part, our bankruptcy clients who have businesses fall into two categories. The first category consists of those who feel as though they and their business are “one” entity. The second category consists of those who feel as though their business is a completely separate entity. Often, when [...]

If a creditor were to sue you for a debt owed, eventually they may try to obtain a judgment against you. There are two main ways we see clients usually end up getting judgments against them. The first way is by a default judgment. This basically means you never answered the complaint and, therefore, the [...]

There are many times when you may need a copy of your North Carolina state income tax returns. If you are in legal proceedings such as a divorce or bankruptcy, the court may require a copy or copies of your tax returns.  If you are applying for a mortgage loan, the underwriter will require copies [...]

A lawsuit is crafted of several different stages.  In the civil proceedings there are certain litigation paths that must be taken depending on the route of the case.  Discovery is in the pre-trail phase of a lawsuit and acts as the parties’ opportunity to gather information. Upon the commencement of a civil action by filing [...]