UPDATE: On June 26, 2013, the Supreme Court of the United States declared in United States v. Wilson, that section 3 of DOMA (the "defense of marriage act") is unconstitutional. Read our analysis of what this changes: SCOTUS decision on DOMA affects Joint Bankruptcies
ORIGINAL POST:
A recent article in The Boston Globe indicated that bankruptcy filings are at an all-time high in Massachusetts (since the 2005 changes to the bankruptcy law went into effect). The reasons are varied: overwhelming debt, bad mortgages, a loss of income, or an effort to avoid foreclosure. These economic realities are blind to the sexual orientation or familial relationships of debtors. A down economy affects us all, whether we are gay or straight.
The U.S. Bankruptcy laws are some of the oldest in our country, predating even the Bill of Rights and, are intended to protect honest people who have experienced difficult financial hardships. Your sexual orientation should not affect how this law protects you, but it does.
Why is the law different for same-sex married couples?
The U.S. Bankruptcy Code is a federal program and is overseen by the U.S. Department of Justice. Although it is administered at a state level and each state has the ability to specify its own procedural rules and an alternate exemption scheme, the Bankruptcy Court applies federal law. Since the Bankruptcy Code applies federal, not state, law, bankruptcy courts are required to follow the requirements of DOMA and refuse to recognize joint bankruptcy filings by same-sex married couples. DOMA, short for the Defense of Marriage Act, is a federal law passed in 1996 that bars federal recognition of same-sex marriage in federal programs.
How is the law different for same-sex married couples?
Under the bankruptcy code, a heterosexual married couple can petition for relief jointly. Debts that are owned by either spouse individually, and/or by both spouses jointly can be discharged under one proceeding. Both debtor-spouses proceed through the bankruptcy process together under the same case, meaning that all conferences and appearances are jointly held with both debtors, and both spouses can count on consistent relief from one bankruptcy court judge and one bankruptcy trustee.
There is also a financial savings to filing jointly. Joint debtors pay only one filing fee for the petition (ranging from $274 to $1,049, depending on the chapter) and usually attorney’s charge less fees for one joint filing then they would for two separate individual filings.
Finally, there is a significant benefit to filing jointly because of how exemptions are calculated. Exemptions, i.e. the amount of property that cannot be taken to pay your debts, doubles for a joint filing, making it possible to protect more assets, regardless of which spouse owns the property.
What is the current law in effect?
Over the years, the bankruptcy court has refused to extend the benefits of a joint filing to same-sex couples. Decisions such as In re Allen, 186 B.R. 769, 773 (Bankr. N.D. Ga. 1995) held that two debtors were ineligible to file a joint bankruptcy petition because they were not legally married. A different court reached a similar result in 2004 with In re Kandu, 315 B.R. 123, 148 (Bankr. W.D. Wash. 2004), where the bankruptcy court, citing DOMA, dismissed a joint chapter 7 petition filed by a lesbian couple validly married in Canada. Despite the fact that they were validly married under Canadian law, the court cited that DOMA restricted marriage to heterosexual couples in the eyes of federal law, including the bankruptcy code, and refused to extend the federal benefits of a joint filing for bankruptcy to the debtors.
What has changed?
In Commonwealth of Massachusetts v. Health and Human Services and Gill v. Office of Personnel Management, the Massachusetts Attorney General and same-sex spouses, respectively, sought relief from the U.S. Court for the District of Massachusetts, requesting that the Court find DOMA unconstitutional for prohibiting the extension of federal benefits to same-sex spouses. The Court concluded that DOMA’s definition of marriage, and its attempts to limit the benefits thereof to heterosexual couples did not constitute a legitimate government interest, and was therefore, unconstitutional. U.S. District Judge for the District of Massachusetts, Joseph Tauro, wrote in the Gill decision: “As irrational prejudice plainly never constitutes a legitimate government interest, this court must hold that Section 3 of DOMA as applied to Plaintiffs violates the equal protection principles embodied in the Fifth Amendment to the United States Constitution.”
Although neither of these cases dealt directly with the federal benefit of joint bankruptcy filing, the door is now open to argue that married same-sex joint debtors may rely on the Court’s decision in Gill, and obtain the same legal and practical benefits of a joint bankruptcy filing.
Despite the court’s recent decision, DOMA is still the law, and we would anticipate that a bankruptcy Trustee would likely move to dismiss any joint filing by a same-sex marriage until there is a case which deals specifically with this issue (or DOMA is repealed). However, given the rationale provided in Gill, we believe a debtor stands a reasonable chance of succeeding before the bankruptcy appellate panel or the U.S. District Court if that specific issue were presented on appeal.
How can we help?
Kelsey & Trask, P.C. understands that not everyone wants to be a constitutional test case, and for some, operating within the restraints of the law, no matter how unfair, is better in the short term than changing the legal thinking of an entire system. We recognize the limitations and restrictions presented by DOMA. While we cannot extend all benefits of a joint filing, we do recognize and support the same-sex community.
If you need assistance in the bankruptcy court, we will not charge you as separate clients; rather, we will charge the same fee as we would any married couple. We will also do our best to ensure your cases are presented to the same trustee, and remain in front of the same Judge, by filing them simultaneously (giving them the best chance to be in front of the same trustee and Judge).
Joint filings were created in order to protect the family unit and allow for collective financial planning. While federal law currently chooses to deny same-sex married couples from such federal benefits, we have chosen to treat same-sex married couples with the same dignity and treatment as their heterosexual counterparts. It is not a perfect solution, but if it helps your family to get a fresh start, we don’t want you to go alone.
Tuesday, September 7, 2010
Tuesday, July 20, 2010
What are the Costs of Bankruptcy?
Bankruptcy in the United States is permitted by the United States Constitution (Article 1, Section 8, Clause 4) which authorizes Congress to enact "uniform Laws on the subject of Bankruptcies throughout the United States." As such, Constitutional recognition of bankruptcy law is amongst the oldest in the United States, predating even the bill of rights. Even 223 years ago, the Founding Fathers and the draftsmen of this Country’s earliest laws recognized that sometimes people got in over their heads as a result of insufficient planning or factors beyond their control. They understood that it was in the best interests of both debtors and the economy as a whole to provide people with a fresh start in the event someone found themselves with debts they were unable to pay.
Despite the fact that the Constitution specifically permits Congress to enact bankruptcy legislation, there is still a significant cost, both economic and emotional, to seeking the protection of the Bankruptcy Court. So, if you or someone you know is considering bankruptcy, let’s take a look at the undocumented costs of bankruptcy.
First, the most obvious: Court Fees.
Court filing fees (the fee for filing your petition) for bankruptcy vary depending on the chapter you are filing under, but initially plan on $274.00 for Chapter 13 and $299.00 for Chapter 7. If you need to change your petition after it is a filed, there is an additional $26.00 filing fee.
In addition to court fees, there will be Legal Fees, i.e. what you pay to your Bankruptcy Attorney to analyze your case, review your purchase history to avoid nondischargability issues (meaning you still owe money to a creditor after bankruptcy), make recommendations regarding when you should file and under which chapter, preparing your petition, schedules and disclosures, and representing you at the §341(a) Creditor’s Meeting. Each attorney offers slightly different services, and charges different amounts. You should speak with your attorney to understand his or her fee structure, and always get the fee agreement in writing.
Rebuilding Credit: Assuming your bankruptcy goes to discharge without objection and you receive your Order Discharging Debtor, debtors now finds themselves with the daunting task of rebuilding their credit, post-bankruptcy. The costs here are more difficult to identify specifically. Because bankruptcy negatively impacts your credit, borrowing money may be more difficult, and when possible, may be more expensive.
For example, assume that the debtor has an old car and would like to trade it in for a new car, post-bankruptcy. The debtor may find themselves unable to qualify for a car loan for some time after discharge, thereby incurring the increased maintenance costs and fuel costs of an old, inefficient vehicle for longer than originally anticipated. When the debtor does qualify for a new car loan, the increased interest rate assessed to borrowers with negative marks on their credit score will cost the borrower more in interest over the term of the loan. Similarly, a borrower seeking to obtain a home loan may be required to pay “points” in addition to a higher interest rate, adding thousands of dollars in closing costs.
However, there are potential savings and benefits to a bankruptcy filing. The costs of bankruptcy should be weighed against the benefits. First, bankruptcy offers a debtor a fresh start, and a responsible debtor can begin repairing their credit immediately after discharge, and may qualify for a prime rate mortgage in as little as 3 years after filing. Since the debtor’s previous debts were discharged, the debtor no longer has the burden of making monthly installment payments on consumer credit cards or other non-retained property.
Finally, potential bankruptcy petitioners should be aware of the noneconomic costs of bankruptcy: A bankruptcy filing remains on your credit report for 10 years, and individual debts discharged in bankruptcy for 7 years following your discharge. Therefore, whenever you apply for credit, a new loan, and more frequently, a job or undergo a background check, a previous bankruptcy will be visible to the loan officer, hiring manager or credit card company. While many debtors are encouraged by a “light at the end of the tunnel” or feel as though a weight has been lifted from their shoulders upon discharge in bankruptcy, there may be the lingering feeling of personal failure or shame in filing for bankruptcy. To that, I recommend the debtor consider my opening remarks in this post, and make a decision about what is best for them and their family in the long term.
If you need help weighing your options and if bankruptcy can help you if you are in over your head, contact Attorney Matthew Trask at 508.655.5980 to schedule a one-hour consultation.
Despite the fact that the Constitution specifically permits Congress to enact bankruptcy legislation, there is still a significant cost, both economic and emotional, to seeking the protection of the Bankruptcy Court. So, if you or someone you know is considering bankruptcy, let’s take a look at the undocumented costs of bankruptcy.
First, the most obvious: Court Fees.
Court filing fees (the fee for filing your petition) for bankruptcy vary depending on the chapter you are filing under, but initially plan on $274.00 for Chapter 13 and $299.00 for Chapter 7. If you need to change your petition after it is a filed, there is an additional $26.00 filing fee.
In addition to court fees, there will be Legal Fees, i.e. what you pay to your Bankruptcy Attorney to analyze your case, review your purchase history to avoid nondischargability issues (meaning you still owe money to a creditor after bankruptcy), make recommendations regarding when you should file and under which chapter, preparing your petition, schedules and disclosures, and representing you at the §341(a) Creditor’s Meeting. Each attorney offers slightly different services, and charges different amounts. You should speak with your attorney to understand his or her fee structure, and always get the fee agreement in writing.
Rebuilding Credit: Assuming your bankruptcy goes to discharge without objection and you receive your Order Discharging Debtor, debtors now finds themselves with the daunting task of rebuilding their credit, post-bankruptcy. The costs here are more difficult to identify specifically. Because bankruptcy negatively impacts your credit, borrowing money may be more difficult, and when possible, may be more expensive.
For example, assume that the debtor has an old car and would like to trade it in for a new car, post-bankruptcy. The debtor may find themselves unable to qualify for a car loan for some time after discharge, thereby incurring the increased maintenance costs and fuel costs of an old, inefficient vehicle for longer than originally anticipated. When the debtor does qualify for a new car loan, the increased interest rate assessed to borrowers with negative marks on their credit score will cost the borrower more in interest over the term of the loan. Similarly, a borrower seeking to obtain a home loan may be required to pay “points” in addition to a higher interest rate, adding thousands of dollars in closing costs.
However, there are potential savings and benefits to a bankruptcy filing. The costs of bankruptcy should be weighed against the benefits. First, bankruptcy offers a debtor a fresh start, and a responsible debtor can begin repairing their credit immediately after discharge, and may qualify for a prime rate mortgage in as little as 3 years after filing. Since the debtor’s previous debts were discharged, the debtor no longer has the burden of making monthly installment payments on consumer credit cards or other non-retained property.
Finally, potential bankruptcy petitioners should be aware of the noneconomic costs of bankruptcy: A bankruptcy filing remains on your credit report for 10 years, and individual debts discharged in bankruptcy for 7 years following your discharge. Therefore, whenever you apply for credit, a new loan, and more frequently, a job or undergo a background check, a previous bankruptcy will be visible to the loan officer, hiring manager or credit card company. While many debtors are encouraged by a “light at the end of the tunnel” or feel as though a weight has been lifted from their shoulders upon discharge in bankruptcy, there may be the lingering feeling of personal failure or shame in filing for bankruptcy. To that, I recommend the debtor consider my opening remarks in this post, and make a decision about what is best for them and their family in the long term.
If you need help weighing your options and if bankruptcy can help you if you are in over your head, contact Attorney Matthew Trask at 508.655.5980 to schedule a one-hour consultation.
Monday, July 19, 2010
I Just Filed My Chapter 13 Case - Now What?
As you may have read in our similarly entitled post "I Just Filed My Chapter 7 Case - Now What?", our clients often ask us after the filing of a bankruptcy petition:
"So what happens next?"
Just like in a Chapter 7, what happens next is a flurry of deadlines and court control dates, some of which require the client's participation (such as responding to the Trustee's requests for additional information), some do not require the client's participation, and others may require the attorney's participation, depending on how the case progresses.
Often, the client is overwhelmed with the detail and the numerous dates, and simply wants to know where to send the plan payments. However, some clients with more complex cases appreciate the added detail, which is why we have added a convenient Chapter 13 Timeline to our website.
The new addition allows a client or prospective client to input their Chapter 13 Filing Date and Section 341(a) hearing date (if known), and will output a scaled timeline with the important dates. Links to the relevant portions of the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are also included for cross reference at the bottom of the timeline page.
For those of you reading this post on your smartphone, you can also check out our mobile version of the calculator.
We hope this tool will help clients, prospective clients and attorneys alike better understand and navigate the meticulous and often trap-ridden world of bankruptcy law.
If you have any questions regarding Kelsey & Trask, P.C.'s Chapter 13 Timeline, please contact Attorney Matthew Trask at 508.655.5980.
"So what happens next?"
Just like in a Chapter 7, what happens next is a flurry of deadlines and court control dates, some of which require the client's participation (such as responding to the Trustee's requests for additional information), some do not require the client's participation, and others may require the attorney's participation, depending on how the case progresses.
Often, the client is overwhelmed with the detail and the numerous dates, and simply wants to know where to send the plan payments. However, some clients with more complex cases appreciate the added detail, which is why we have added a convenient Chapter 13 Timeline to our website.
The new addition allows a client or prospective client to input their Chapter 13 Filing Date and Section 341(a) hearing date (if known), and will output a scaled timeline with the important dates. Links to the relevant portions of the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are also included for cross reference at the bottom of the timeline page.
For those of you reading this post on your smartphone, you can also check out our mobile version of the calculator.
We hope this tool will help clients, prospective clients and attorneys alike better understand and navigate the meticulous and often trap-ridden world of bankruptcy law.
If you have any questions regarding Kelsey & Trask, P.C.'s Chapter 13 Timeline, please contact Attorney Matthew Trask at 508.655.5980.
Thursday, July 1, 2010
My house is in a trust. Is it protected in a Bankruptcy?
Question of the week: My house is held in a nominee trust, primarily for estate planning purposes. If I were to file for bankruptcy, would my house be protected if I filed a Chapter 7 Bankruptcy?
Answer: There are a number of factors that all address whether or not a debtor's house is exempt from the bankruptcy estate, or whether the bankruptcy court could require the debtor to sell his property to pay some (or all) of his debts. For example, whether or not the debtor actually resides in the subject property or if it is held as an investment property; the total net equity in the property, including mortgages or other liens; and the debtor's exemption elections could all affect how a debtor can protect (or, conversely, risk) a house and your other various assets upon filing a Chapter 7 petition.
First, in Massachusetts, recall that there are two separate exemptions schemes which define what types of property you are allowed to retain, and cannot be sold by the Chapter 7 Trustee to be distributed to your creditors: Federal Exemptions and Massachusetts Exemptions. Generally speaking, the federal exemptions are better suited to protecting your tangible personal property, such as automobiles, bank accounts, etc., but cannot protect more than approximately $21,625.00 worth of equity in a homestead. In situations where you are seeking to protect more than $21,625 in home equity, the Massachusetts Exemptions can protect up to $500,000.00 in home equity, at the cost of significantly reduced exemptions for personal property (i.e., $700.00 equity in an automobile, for example). The caveat is that in order to benefit from the Massachusetts Exemptions, you must file and record a Massachusetts Declaration of Homestead.
Ownership of real property through a nominee trust creates a legal impediment to protecting your equity in your home, however, in certain circumstances, the court has essentially ignored this impediment.
In situations where a trust is the legal titleholder of the debtor's residence, and not the debtor, there is a legal question of whether the debtor is still permitted, by law, to file a Massachusetts Declaration of Homestead. A 2007 Massachusetts Bankruptcy Court case titled “In re: Edward R. Szwyd” decided that “property held in trust is not eligible for Homestead protection. Only individuals may claim a Homestead.” However, in Szwyd, the debtors nevertheless filed a homestead declaration and the Court allowed the Homestead to stand. In this case, the debtor was the sole trustee and beneficiary and no trust existed under Massachusetts law, because the legal protections of the trust merged into the sole trustee and beneficiary, making the debtor the sole beneficial “owner” for purposes of the bankruptcy code.
UPDATE: The law in this area has developed rapidly and swung widely on the issue since 1995. The most recent decision, and currently viewed to be the controlling law with respect to Massachusetts bankruptcy case, is In re Olga M. Rodrigues, 2010 WL 716192 (Bankr. D. Mass., 2010). The Rodriguez decision looked to the statutory language of the Massachusets Homestead Act, which permits a person who “rightfully possess[es] the premises and occup[ies] said home as a principal residence” to file a Declaration of Homestead on the property.
As long as the debtor resides in the house, the debtor may file a Declaration of Homestead to protect the debtor’s interest in the home, even if that interest is little more than a right to ownership upon revocation of the trust. Debtors should take the Rodriguez decision to mean that even in the case of a self-settled trust, nominee trust or merged trust (or any trust where the trustee has significant discretion regarding the trust assets) that trust may be breached by the trustee, and the assets included in the bankruptcy estate. However, the legal form of ownership of the debtor’s residence (including whether the property is held in trust) will no longer serve as a bar to the election of Homestead Act protection, and provides a means of exemption under the Massachusetts bankruptcy exemptions.
If you own property that is held in a trust, and are considering bankruptcy, it is important that you understand the trust which is the legal titleholder to your property as well as the nuances of the United States Bankruptcy Code. If you have questions regarding how to protect your assets through a Chapter 7 Bankruptcy, contact Kelsey & Trask, P.C. for a one-hour consultation at 508-655-5980.
Answer: There are a number of factors that all address whether or not a debtor's house is exempt from the bankruptcy estate, or whether the bankruptcy court could require the debtor to sell his property to pay some (or all) of his debts. For example, whether or not the debtor actually resides in the subject property or if it is held as an investment property; the total net equity in the property, including mortgages or other liens; and the debtor's exemption elections could all affect how a debtor can protect (or, conversely, risk) a house and your other various assets upon filing a Chapter 7 petition.
First, in Massachusetts, recall that there are two separate exemptions schemes which define what types of property you are allowed to retain, and cannot be sold by the Chapter 7 Trustee to be distributed to your creditors: Federal Exemptions and Massachusetts Exemptions. Generally speaking, the federal exemptions are better suited to protecting your tangible personal property, such as automobiles, bank accounts, etc., but cannot protect more than approximately $21,625.00 worth of equity in a homestead. In situations where you are seeking to protect more than $21,625 in home equity, the Massachusetts Exemptions can protect up to $500,000.00 in home equity, at the cost of significantly reduced exemptions for personal property (i.e., $700.00 equity in an automobile, for example). The caveat is that in order to benefit from the Massachusetts Exemptions, you must file and record a Massachusetts Declaration of Homestead.
Ownership of real property through a nominee trust creates a legal impediment to protecting your equity in your home, however, in certain circumstances, the court has essentially ignored this impediment.
In situations where a trust is the legal titleholder of the debtor's residence, and not the debtor, there is a legal question of whether the debtor is still permitted, by law, to file a Massachusetts Declaration of Homestead. A 2007 Massachusetts Bankruptcy Court case titled “In re: Edward R. Szwyd” decided that “property held in trust is not eligible for Homestead protection. Only individuals may claim a Homestead.” However, in Szwyd, the debtors nevertheless filed a homestead declaration and the Court allowed the Homestead to stand. In this case, the debtor was the sole trustee and beneficiary and no trust existed under Massachusetts law, because the legal protections of the trust merged into the sole trustee and beneficiary, making the debtor the sole beneficial “owner” for purposes of the bankruptcy code.
UPDATE: The law in this area has developed rapidly and swung widely on the issue since 1995. The most recent decision, and currently viewed to be the controlling law with respect to Massachusetts bankruptcy case, is In re Olga M. Rodrigues, 2010 WL 716192 (Bankr. D. Mass., 2010). The Rodriguez decision looked to the statutory language of the Massachusets Homestead Act, which permits a person who “rightfully possess[es] the premises and occup[ies] said home as a principal residence” to file a Declaration of Homestead on the property.
As long as the debtor resides in the house, the debtor may file a Declaration of Homestead to protect the debtor’s interest in the home, even if that interest is little more than a right to ownership upon revocation of the trust. Debtors should take the Rodriguez decision to mean that even in the case of a self-settled trust, nominee trust or merged trust (or any trust where the trustee has significant discretion regarding the trust assets) that trust may be breached by the trustee, and the assets included in the bankruptcy estate. However, the legal form of ownership of the debtor’s residence (including whether the property is held in trust) will no longer serve as a bar to the election of Homestead Act protection, and provides a means of exemption under the Massachusetts bankruptcy exemptions.
If you own property that is held in a trust, and are considering bankruptcy, it is important that you understand the trust which is the legal titleholder to your property as well as the nuances of the United States Bankruptcy Code. If you have questions regarding how to protect your assets through a Chapter 7 Bankruptcy, contact Kelsey & Trask, P.C. for a one-hour consultation at 508-655-5980.
Thursday, June 24, 2010
Waiting in line for the new iPhone? There's no wait (and no cost) to download our Apps!
Today, June 24, 2010, the day of the iPhone 4.0 release, many, many Apple devotees are waiting in line, no doubt playing games, checking e-mail and surfing the web on their 3GS until they get their hands on the newest iPhone. Well, whether or not you've braved the lines to be the first to have the new device, you can still download the Kelsey & Trask, P.C. Web-Apps and iPhone Apps. (see the end of this post for instructions on how to access these apps on other smartphones as well)
iPhone Apps:
The Chapter 7 Means Test Calculator App
The means test is a test required under the new bankruptcy law to determine a debtor's eligibility to file for bankruptcy under Chapter 7 of the Bankruptcy Code. If your income is greater than the median income for your state of residence and family size, in some cases, creditors have the right to file a motion requesting that the Court dismiss your cases under Section 707(b) of the Bankruptcy Code.
Use this App to determine whether you qualify for Chapter 7 bankruptcy under part a of the Chapter 7 Means Test. You can even save or e-mail your calculation to access it later. If your income is greater than the median income for your state of residence and family size, you still might meet part b of the means test after taking into consideration certain expenses and deductions as defined by the Bankruptcy Code. You should consult with an attorney to determine your eligibility.
The Child Support Calculator App
Use this worksheet to calculate the presumptive amount of child support to be ordered by the Probate & Family Courts in Massachusetts based on the Massachusetts Child Support Guidelines (including all of the calculations required for filling out the court form). You can then save your calculations, and even e-mail them.
Must have app for Family Law Attys - ★★★★★
Review by Mass Attorney
Must have app. Quickly calculate child support according to the guidelines and try different income scenerios.
The Divorce Spousal Support Calculator App
Some states use formulas to calculate presumptive alimony. And notwithstanding the lack of legislative support, some Judges in Massachusetts have suggested doing the same. A Joint Task Force of the Massachusetts Bar Association and the Boston Bar Association has prepared a draft report which also suggests a formula to calculate the maximum alimony award possible.
All of these formulas are included in this calculator, which we believe can be a valuable resource in helping parties understand a reasonable potential range of spousal support orders.
In addition, you can access the full Article (The Divorce Spousal Support Calculator: An Alimony Formula Resource and Tool for Computing Suggested Alimony Payments in Divorce Cases) directly from the App by clicking on the Settings button in the lower left-hand corner of the App.
Similar to the Child Support Calculator App, you can also save and e-mail your calculations.
Web Apps:
These three Apps are also available as Web-Apps and can be accessed directly on our mobile site or through the Apple Web-App Store.
The Chapter 7 Means Test Calculator Web-App
- Direct Link: mobile.kelseytrask.com/meanstest.htm
The Child Support Calculator Web-App
- Direct Link: http://mobile.kelseytrask.com/childsupport.htm
The Divorce Spousal Support Calculator Web-App
- Direct Link: http://mobile.kelseytrask.com/spousalsupport.htm
In addition we have a recently created fourth web-app:
The Chapter 7 Timeline Calculator Web-App
- Direct Link: mobile.kelseytrask.com/7timeline.htm
The bankruptcy court is very strict regarding deadlines. Often, missing a deadline will result in the dismissal of your Bankruptcy Case. Therefore, it is very important that all documents are filed accurately and on time with the Bankruptcy Court.
This App displays approximate dates for deadlines and events in a Chapter 7 Bankruptcy case when you enter a filing date. These dates are subject to change by amendments to the U.S. Code, or may vary due to local rules or practices or even due to the specific facts of your case. If you have any questions you should consult with an attorney when reviewing this timeline.
Don't have an iPhone, that's okay too. Whether you are an Android, Blackberry or other smartphone user, you can still use all of our great calculators in your web-browser on our mobile pages designed just for smartphones. Just visit m.kelseytrask.com or mobile.kelseytrask.com on your mobile phone and you should see a page that looks something like this:
iPhone Apps:
The Chapter 7 Means Test Calculator App
The means test is a test required under the new bankruptcy law to determine a debtor's eligibility to file for bankruptcy under Chapter 7 of the Bankruptcy Code. If your income is greater than the median income for your state of residence and family size, in some cases, creditors have the right to file a motion requesting that the Court dismiss your cases under Section 707(b) of the Bankruptcy Code. Use this App to determine whether you qualify for Chapter 7 bankruptcy under part a of the Chapter 7 Means Test. You can even save or e-mail your calculation to access it later. If your income is greater than the median income for your state of residence and family size, you still might meet part b of the means test after taking into consideration certain expenses and deductions as defined by the Bankruptcy Code. You should consult with an attorney to determine your eligibility.
The Child Support Calculator App
Use this worksheet to calculate the presumptive amount of child support to be ordered by the Probate & Family Courts in Massachusetts based on the Massachusetts Child Support Guidelines (including all of the calculations required for filling out the court form). You can then save your calculations, and even e-mail them.Must have app for Family Law Attys - ★★★★★
Review by Mass Attorney
Must have app. Quickly calculate child support according to the guidelines and try different income scenerios.
The Divorce Spousal Support Calculator App
Some states use formulas to calculate presumptive alimony. And notwithstanding the lack of legislative support, some Judges in Massachusetts have suggested doing the same. A Joint Task Force of the Massachusetts Bar Association and the Boston Bar Association has prepared a draft report which also suggests a formula to calculate the maximum alimony award possible. All of these formulas are included in this calculator, which we believe can be a valuable resource in helping parties understand a reasonable potential range of spousal support orders.
In addition, you can access the full Article (The Divorce Spousal Support Calculator: An Alimony Formula Resource and Tool for Computing Suggested Alimony Payments in Divorce Cases) directly from the App by clicking on the Settings button in the lower left-hand corner of the App.
Similar to the Child Support Calculator App, you can also save and e-mail your calculations.
Web Apps:
These three Apps are also available as Web-Apps and can be accessed directly on our mobile site or through the Apple Web-App Store.
The Chapter 7 Means Test Calculator Web-App
- Direct Link: mobile.kelseytrask.com/meanstest.htm
The Child Support Calculator Web-App
- Direct Link: http://mobile.kelseytrask.com/childsupport.htm
The Divorce Spousal Support Calculator Web-App
- Direct Link: http://mobile.kelseytrask.com/spousalsupport.htm
In addition we have a recently created fourth web-app:
The Chapter 7 Timeline Calculator Web-App
- Direct Link: mobile.kelseytrask.com/7timeline.htm
The bankruptcy court is very strict regarding deadlines. Often, missing a deadline will result in the dismissal of your Bankruptcy Case. Therefore, it is very important that all documents are filed accurately and on time with the Bankruptcy Court.This App displays approximate dates for deadlines and events in a Chapter 7 Bankruptcy case when you enter a filing date. These dates are subject to change by amendments to the U.S. Code, or may vary due to local rules or practices or even due to the specific facts of your case. If you have any questions you should consult with an attorney when reviewing this timeline.
Don't have an iPhone, that's okay too. Whether you are an Android, Blackberry or other smartphone user, you can still use all of our great calculators in your web-browser on our mobile pages designed just for smartphones. Just visit m.kelseytrask.com or mobile.kelseytrask.com on your mobile phone and you should see a page that looks something like this:
Wednesday, June 16, 2010
I Just Filed My Chapter 7 Case - Now What?
With many clients, once the attorney and client have reviewed the bankruptcy petition, schedules, statements, worksheets and calculations, and their case is ready to file, I am often met with a perplexed look and a question:
"So what happens next?"
What happens next is a flurry of deadlines and court control dates, some of which require the client's participation (such as responding to the Trustee's requests for additional information), some do not require the client's participation, and others may require the attorney's participation, depending on how the case progresses.
Often, the client is overwhelmed with the detail and the numerous dates, and simply wants to know that they will get their discharge in "about four months". However, some clients with more complex cases appreciate the added detail, which is why we have added a convenient Chapter 7 Timeline to our website.
The new addition allows a client or prospective client to input their Chapter 7 Filing Date and Section 341(a) hearing date (if known), and will output a scaled timeline with the important dates. Links to the relevant portions of the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are also included for cross reference at the bottom of the timeline page.
We hope this tool will help clients, prospective clients and attorneys alike better understand and navigate the meticulous and often trap-ridden world of bankruptcy law.
If you have any questions regarding Kelsey & Trask, P.C.'s Chapter 7 Timeline, please contact Attorney Matthew Trask at 508.655.5980.
"So what happens next?"
What happens next is a flurry of deadlines and court control dates, some of which require the client's participation (such as responding to the Trustee's requests for additional information), some do not require the client's participation, and others may require the attorney's participation, depending on how the case progresses.
Often, the client is overwhelmed with the detail and the numerous dates, and simply wants to know that they will get their discharge in "about four months". However, some clients with more complex cases appreciate the added detail, which is why we have added a convenient Chapter 7 Timeline to our website.
The new addition allows a client or prospective client to input their Chapter 7 Filing Date and Section 341(a) hearing date (if known), and will output a scaled timeline with the important dates. Links to the relevant portions of the U.S. Bankruptcy Code and the Federal Rules of Bankruptcy Procedure are also included for cross reference at the bottom of the timeline page.
We hope this tool will help clients, prospective clients and attorneys alike better understand and navigate the meticulous and often trap-ridden world of bankruptcy law.
If you have any questions regarding Kelsey & Trask, P.C.'s Chapter 7 Timeline, please contact Attorney Matthew Trask at 508.655.5980.
Friday, June 11, 2010
What is the Median Family Income for Massachusetts?
The Median Family Income for Massachusetts as of March 15, 2010 is as follows:
Family size 1: $53,315 per year
Family size 2: $69,204 per year
Family size 3: $82,297 per year
Family size 4: $99,293 per year
add an additional $6,900 per year for each additional household member, up until April 1, 2009. For cases filed after April 1, 2009 add an additional $7,500 for each additional household member.
Under Part (a) of the Chapter 7 means test, if your income is greater than the median income for your state of residence and family size, then there is a presumption that you qualify for bankruptcy relief under chapter 7.
For more information on other states and a Median income Calculator visit our webpage, our mobile webpage designed for smart phones, or download our iPhone App.
Please note that these figures are subject to change and you should consult with an attorney for the current figures.
Family size 1: $53,315 per year
Family size 2: $69,204 per year
Family size 3: $82,297 per year
Family size 4: $99,293 per year
add an additional $6,900 per year for each additional household member, up until April 1, 2009. For cases filed after April 1, 2009 add an additional $7,500 for each additional household member.
Under Part (a) of the Chapter 7 means test, if your income is greater than the median income for your state of residence and family size, then there is a presumption that you qualify for bankruptcy relief under chapter 7.
For more information on other states and a Median income Calculator visit our webpage, our mobile webpage designed for smart phones, or download our iPhone App.Please note that these figures are subject to change and you should consult with an attorney for the current figures.
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