About Me
“ Craig D. Robins, Esq., has been a practicing Long Island bankruptcy attorney for over twenty-four years ”
Bankruptcy Practice
Written by Craig D. Robins, Esq.Many High-income Debtors with Significant Income Can File Chapter 7 Bankruptcy and Still Pass the Means Test
During the past few years I’ve noticed a fascinating trend: I’m counseling more and more bankruptcy clients with high income and high debt.
During the past few years I’ve noticed a fascinating trend: I’m counseling more and more bankruptcy clients with high income and high debt.
Representing such debtors requires addressing certain special issues which I will focus on in this article which was originally published in the June 2010 Issue of the Suffolk Lawyer, a Bar Association periodical.
Blame the Recession
Perhaps the current drawn-out recession is affecting an increasing number of consumers beyond the low and middle-class – long the bastion of typical bankruptcy filers.
In addition, falling real estate values have wiped out the equity in many people’s homes. Many middle and upper-class Americans have thus lost their ultimate source of long-term savings.
Chapter 7 Bankruptcy Is Usually the Consumer’s Best Choice
Assuming that there’s no need to consider Chapter 13 to stop foreclosure, I always strive to file Chapter 7 bankruptcy petitions for all my clients – but doing so requires that they qualify under the means test. After all, if a Chapter 7 case goes smoothly, the debtor will discharge most or all debts and ideally keep all assets.
For high-income debtors, Chapter 7 eligibility has become rather challenging considering that under the 2005 Bankruptcy Amendment Act (BAPCPA), a consumer debtor will almost certainly face opposition to getting a discharge if he or she does not pass the means test. There is no salary cap for filing Chapter 7 Bankruptcy.
The U.S. Trustee is especially vigilant in reviewing any case that is deemed abusive, or that may even be close to being abusive.
Accordingly, analyzing the facts of a high-income debtor becomes critical and properly preparing the means test and other bankruptcy schedules becomes crucial.
How Much Income Is “High-income”?
Lately I’ve been regularly filing Chapter 7 bankruptcy petitions for families with incomes well over $100,000. I recently filed two Chapter 7 cases where the family income was over $200,000. I actually wrote a blog post a year ago entitled: Can You File Chapter 7 Bankruptcy on Long Island With a Family Income of $200,000 a Year?
Considering the perceived income limitations for seeking Chapter 7 relief under the new bankruptcy laws, such high-income filings seem difficult or impossible; yet in practice, they are not.
Generally, a high-income debtor is one who has income over $100,000 per year or $10,000 per month. In my bankruptcy practice, high-income debtors are often executives, doctors, assorted professionals, and families of double-income spouses.
General Principle for Filing High-income Cases
General Principle for Filing High-income Cases
A high-income debtor can file for Chapter 7 relief if the debtor a) passes the means test or conversely does not need to qualify for the means test; and b) passes a totality of circumstances test for filing in good faith – often meaning that all of their expenses are reasonable and necessary. See: If I Make Over $100,000 a Year, Can I Eliminate Credit Cards Debts in Bankruptcy?
Many high-income debtors also have relatively high levels of debt. A former executive previously earning several hundred thousand dollars per year can easily have as much credit card debt.
In such cases, the debt must have been incurred in good faith and must not be unreasonably high in relation to the debtor’s income at the time the debt was incurred. Counsel should devote extra time to reviewing the various debts in such cases.
The Business Debt Exception to the Means Test
Many high-income debtors have very substantial debt obligations from failed business ventures, often due to having signed a personal guarantee. A debtor is excused from preparing the means test if the debtor’s debts are not primarily “consumer debts”, and there is a box on the means test for this exclusion.
A “consumer debt” is defined as a debt incurred by an individual primarily for a personal, family or household purpose. On the other hand, some courts have defined “business debt” as debt that is incurred with a “profit motive.” I hope to devote a future column to a more involved discussion about how courts have defined debt as either business debt or consumer debt.
To see a more thorough discussion of this, please see my post: This Debtor Didn’t Have to Do the Bankruptcy Means Test .
Variables Making High-income Debtors More Eligible for Filing
Certain individuals are able to pass the means test much more easily than others. Those that have large families with multiple dependants, large mortgages, two car loans or leases, mortgage arrears and tax arrears are more likely to qualify under the means test because these items can all be used as means test deductions.
Since individuals with large famlies can benefit from increased means test deductions, consider issues in Determining Household Size for the Means Test .
Frequently, individuals with high income receive year-end bonuses. By timing the filing of the petition, the impact of year-end bonuses on the means test can be minimized or even reduced. See my prior post: Advance Planning: File Bankruptcy Before You Get a Year-End Bonus .
The Budget Must Be Reasonable
Even if the debtor passes the means test, that alone is not enough to demonstrate that the case is not abusive, and that it is filed in good faith. All budget items must be reasonable and necessary, based on the debtor’s actual income going forward. This requires a more subjective and equitable assessment of the debtor’s circumstances.
For example, the U.S. Trustee is likely to object to an expense of $2,000 per month for food for a family of four, but will not have any problem with an expense of $1,200, even though that is on the high side.
Some expenses will not pass muster. The U.S. Trustee will likely argue that an expensive summer camp is unreasonable, as sending the kids there is being done at the expense of the creditors.
Issues with Keeping Rental Property
Issues with Keeping Rental Property
High-income debtors are much more likely to have investment real estate in addition to their homes. In such cases, there is an issue as to whether keeping the rental property is reasonable. If the expenses of retaining the property exceed the amount of rental income, then keeping the property will result in a reduced amount of disposable income.
In such a case, the U.S. Trustee will argue that the debtor will have additional income each month to make payments to creditors if the investment property is abandoned.
In such a case, the U.S. Trustee will argue that the debtor will have additional income each month to make payments to creditors if the investment property is abandoned.
Maintaining a Luxury Residence
A high-income debtor is much more likely to have an expensive home. However, there are some cases across the country in which the U.S. Trustee argued that it is unreasonable for a debtor to keep a luxury home with a very high monthly mortgage at the expense of the creditors. This issue has not been addressed in our Circuit.
Alternatives If Debtor Isn’t Eligible for Chapter 7 Relief
If the debtor fails the means test or simply has too much disposable income, then there are still a number of options available. The debtor can file for Chapter 13 relief if his or her secured debts are less than $1,081,400 and unsecured debts are less than $360,475.
If the debt levels exceed these amounts, they can file for Chapter 11 relief. Debt Negotiation is also an option in which the attorney can negotiate settlements with the creditors. See my blog post: Options If You Fail the Bankruptcy Means Test .
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About the Author. Long Island Bankruptcy Attorney Craig D. Robins, Esq., is a regular columnist for the Suffolk Lawyer, the official publication of the Suffolk County Bar Association in New York. This article appeared in the JUNE 2010 issue of the Suffolk Lawyer. Mr. Robins is a bankruptcy lawyer who has represented thousands of consumer and business clients during the past twenty years. He has offices in Mastic, Patchogue, Commack, West Babylon, Coram, Woodbury and Valley Stream. (516) 496-0800. For information about filing bankruptcy on Long Island, please visit his Bankruptcy web site: http://www.BankruptcyCanHelp.com.
Written by Craig D. Robins, Esq.
I am currently in San Francisco where I just attended the annual convention of the National Association of Consumer Bankruptcy Attorneys (NACBA). I write this report from there on May 1, 2010.
[Note: this article was previously published in the May 2010 edition of the Suffolk Lawyer].
[I will soon post a number of photos that I took at the NACBA convention}
Many years ago I discovered how exciting it is to travel across the country to interact with fellow bankruptcy practitioners and learn the latest about strategies for protecting consumer bankruptcy debtors, and tips for running a bankruptcy law office.
Over the course of three days, some of the country’s leading bankruptcy attorneys as well as a number of bankruptcy judges, provide valuable insight at daily programs and seminars.
What I find just as important is trading notes and war stories with other bankruptcy attorneys from across the country and learning about new products and services at the accompanying trade show.
Here Are Some Highlights of the Bankruptcy Convention
New Trend in Interpreting the Means Test
In a half-day program which addressed the means test, the speakers concluded that both the United States Trustee and our country’s bankruptcy judges have become more lenient in interpreting the means test in Chapter 7 cases. There are three reasons for this trend.
Apparently, the current recessionary climate and sentiment against large banking institutions is resulting in the U.S. Trustee bringing fewer Section 707 motions alleging that the debtor filed an abusive case.
In addition, more and more debtors are providing information to the U.S. Trustee’s office in cases where there are means test issues. This enables the U.S. Trustee to evaluate the issue of abuse and reach a conclusion that the U.S. Trustee should not object.
Finally, there seems to be a greater number of experienced bankruptcy attorneys who know what red flags to look out for and consequently these experienced attorneys refrain from filing abusive cases.
Wide-Spread Concern Over Bankruptcy Judge Salaries
Judicial salaries are relatively low. It appears that we are losing a large number of bankruptcy judges because the level of judicial pay is so low. When there is a vacancy on the bench, this causes the bankruptcy court’s entire case load to slow down, which means unhappiness and dissatisfaction to litigants and all others involved.
This was indeed the case just two three years ago here, in the Eastern District of New York. Our Chief Bankruptcy Judge for the district, Hon. Melanie L. Cyganowski, left the bench to pursue a much more profitable position as a partner in a leading bankruptcy firm.
I interviewed Judge Cyganowski at that time and she clearly indicated that her reason for leaving the bench was because of her unreasonably low judicial salary. See: Chief Bankruptcy Judge Melanie Cyganowski Stepping Down.
HAMP Bankruptcy Update
There was ample discussion about President Obama’s Home Affordable Modification Program (HAMP) which seems to be rife with problems as an unusually small percentage of homeowners actually get permanent relief.
Here’s why:
a) there is a major lack of communication on the part of the lender;
b) lenders are continuing to threaten homeowners with foreclosure even as the lender is evaluating the homeowner for a modification, and even if the homeowner has been approved for a trial term; and
c) lenders are arbitrary in granting relief.
On a positive note, however, a new law is going into effect on June 1, 2010 that, among other things, makes it illegal for a lender to discriminate against a bankruptcy debtor because he or she is in the HAMP program.
The new law will also provide certain protections to Chapter 13 debtors as mortgagees will be precluded from objecting to discharge.
Lower Prices for Credit Counseling
When the 2005 Bankruptcy Amendment Act first went into effect in 2005, there were only four approved credit counseling agencies in our jurisdiction (E.D.N.Y.), and they all charged the same rate – $50 per credit counseling session.
There must have been about 20 credit counseling companies exhibiting at the trade show and many now charge fees as low as $15 per session.
In addition, they gave out so much shwag that my ten-year-old son, Max, will be delighted to receive from me upon my return a large number of squeeze toys, flashlights, keychains, fancy chocolates, playing cards, puzzles, T-shirts and what-not that I picked up from these exhibitors.
My hard-working office staff will also be the recipient of a good deal of this booty.
Emerging Technologies for Consumer Bankruptcy Practices
One of the most crowded exhibitor booths belonged to a OTB, an company that created BK Express, a comprehensive practice management system which is designed for consumer bankruptcy attorneys.
I actually just set up my office to use this software which is basically a special shell designed to work on top of LexisNexis’s Time Matters system.
Problems with MERS Mortgages and Foreclosure Defenses
In a very dynamic session, we were told that 50% of all residential mortgages in this country are nominally owned by MERS, which is Mortgage Electronic Registration Systems, a privately held company that operates an electronic registry designed to track servicing rights and ownership of mortgage loans in the United States.
The problem with MERS-recorded mortgages is that MERS really does not own the mortgage, thereby creating an interesting argument that MERS does not have any standing in bankruptcy court.
I previously wrote about special defenses that a homeowner can assert to defend a foreclosure action involving a MERS mortgage. See: A New Powerful Mortgage Foreclosure Defense — Compliments of MERS.
If your client has a MERS mortgage, consider looking at the pooling and service agreement to make sure that there was a true and valid assignment at every link of the chain, including delivery and acceptance of assignment documents. If there was not, you may have a good objection to a MERS proof of claim or motion to lift the stay.
Few Bankruptcy Attorneys From New York
I was rather surprised the very small turn-out from our state. Out of about 1,600 bankruptcy attorneys who attended the convention, there must have been fewer than 20 from New York, and only one other member, I believe, from the Suffolk County Bar Association. That was Allison Shields, who was actually one of the speakers – she spoke on managing a successful bankruptcy practice.
Written by Craig D. Robins, Esq.High Court Issues Decision on Attorneys’ Ability to Give Legal Advice to Bankruptcy Clients
The U.S. Supreme Court ruled today that a provision of the 2005 Bankruptcy Act, which bars attorneys from advising clients to take on more debt before filing for bankruptcy protection, is permissible in certain situations.
I first wrote about this case, Milavetz, Gallop & Milavetz v. United States, a year and a half ago when the Eighth Circuit Court of Appeals ruled that the provision was unconstitutional: Portion of New Bankruptcy Laws Declared Unconstitutional. Court of Appeals Strikes Down Provision which Prevented Attorneys from Advising Clients .
The Court of Appeals had ruled that the provision barring such advice was unconstitutionally broad and violated free-speech rights
Now, the Supreme Court unanimously reversed that ruling, but with a caveat.
Today’s decision, which was written by Justice Sonia Sotomayor, said the provision prohibiting such advice was valid, but should be read narrowly. She said that the law only prohibits attorneys from advising clients to abuse the bankruptcy system.
However, Justice Sotomayer indicated that it would be permissible for lawyers to advise clients contemplating bankruptcy to take on additional debt in certain situations. She wrote that bankruptcy lawyers could advise clients to refinance a mortgage or purchase a reliable car prior to bankruptcy on the grounds that doing so would reduce the debtor’s interest rates or improve the debtor’s ability to repay.
“It would make scant sense to prevent attorneys and other debt relief agencies form advising individuals thinking of filing for bankruptcy about options that would be beneficial to both those individuals and their creditors,” Sotomayor wrote.
Professionals specializing in bankruptcy “remain free to talk fully and candidly about the incurrence of debt in contemplation of filing a bankruptcy case,” Sotomayor wrote.
How This Decision Affects Bankruptcy Attorneys and their Clients
I often encounter a situation where my client’s car lease is about to end. Before the 2005 Bankruptcy Amendment Act (BAPCPA), I would have simply advised the client to immediately surrender the existing car and obtain a new car lease or car loan, as getting a new car is easier to do before filing for bankruptcy than after.
However, BAPCPA contained a provision which prevents attorneys from advising clients to incur debt in contemplation of bankruptcy. So, for the last five years, I’ve been technically unable to give clients such advice.
Today’s Supreme Court decision now clarifies that as long as my advice is not meant to abuse the system, it is considered appropriate. Of course, a bankruptcy attorney cannot advise a client to go out and charge up debt when the client has no reasonable expectation to repay it — providing such advice would be considered abuse, and therefore a violation of the statute.
I view the decision as a victory of sorts because it enables us bankruptcy practitioners to do what we’ve wanted to do all along: give honest and appropriate advice to clients in order to reach a beneficial result, as opposed to taking advantage of the system and defrauding creditors.
Bankruptcy Attorneys Are Debt Relief Agencies
Justice Sotomayer also upheld the BAPCPA’s requirement that attorneys make certain disclosures in their advertisements and ruled that attorneys who provide bankruptcy assistance are debt relief agencies within the meaning of the law.
Having to label bankruptcy attorneys as “debt relief agencies” seems silly, and serves no useful purpose. However, the requirement is rather benign, and more of a nuisance than anything else.
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About the Photo: That’s my son, Max. To see more Max, click: Super Ninja Bankruptcy Attorneys
Written by Craig D. Robins, Esq.I just attended a seminar last week offered through the National Association of Chapter 13 Trustees about HAMP. Here’s some useful information.
Today’s post is Part One. I will continue tomorrow with a detailed discussion of bankrutpcy issues.
What Is HAMP?
HAMP (Home Affordable Modification Program) is one of President Obama’s initiatives to make a dent in home affordability by using the economic bailout program.
It’s a quasi-voluntary program to modify home mortgages with the goal of getting the monthly payment to 31% of gross (pre-tax) income.
The program seeks to provide taxpayer-funded incentives to mortgage servicers and lenders to voluntarily modify mortgages. The program was created in March 2009. This government program earmarked $75 billion for this purpose.
HAMP will reduce a homeowner’s monthly mortgage payment on a TEMPORARY basis. However, the adjustment becomes permanent after the homeowner makes three on-time payments.
The incentive for mortgage lenders in doing this is that the Obama administration is offering big bucks in incentive payments to lenders.
Here is the official link to Home Affordable Modification Program.
Home Affordable Modification Program Has Not Worked Well So Far
To date, results for HAMP have been very disappointing. I wrote about this at length two months ago: Obama’s “Making Homes Affordable” Mortgage Modification Program Failing.
The program has only resulted in 116,000 permanent modifications in the entire country, in which each borrower is saving about $500 per month.
Incidentally, these homeowners typically went from paying 45% of their gross income towards their mortgage, down to 31%, which is the goal of the program.
To date, only 110 mortgage servicers have signed participation agreements. All Fannie Mae and Freddie Mac loans are automatically eligible.
Who Is Eligible for HAMP?
Here are the requirements:
1. You must be the owner and occupant of the home and utilize it as your primary residence
2. You must have a maximum principal balance of $729,750
3. You must have a monthly mortgage payment that is greater than 31% of pre-tax monthly income
4. You must be unable to afford your current payment
5. You must not have applied for HAMP before
Why Have Many Considered HAMP to be a Failure So Far?
Many homeowners applied for HAMP assistance because they thought it would help them avoid bankruptcy. However, a great many mortgage servicers were unprepared to handle HAMP applications and were not able to process the mortgage modification requests quickly enough to offer any real relief.
Some problems were highly publicized. For example, there have been lenders who refused to even acknowledge receipt of mortgage modification documents, and other lenders who lost these documents numerous times for the same homeowner.
To Be Continued This Week
Retainer Agreements in Bankruptcy Cases
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Written by Craig D. Robins, Esq.Having a written retainer agreement in a consumer bankruptcy case is not only important, it’s the law.
For the 20+ years that I have been representing clients in bankruptcy cases, I have always used written retainer agreements. Four years ago, when the bankruptcy laws were changed, written retainer agreements became mandatory. Even so, there are some sloppy bankruptcy attorneys who neglect to use them.
A written bankruptcy retainer agreement clearly sets forth the understanding between the bankruptcy attorney and the bankruptcy client. It also sets forth what services are included and what services may not be included. Several years ago I wrote an article for the Suffolk Lawyer about Best Practices for Representing Your Clients and discussed the importance of using a plain-English written retainer agreement.
Bankruptcy court rules require the bankruptcy attorney to file some forms with the petition indicating the amount of the legal fee. Sometimes counsel files a copy of the retainer agreement to support this disclosure.
A properly-prepared retainer agreement also indicates what the bankruptcy legal fee is, the amount of the filing fee, and whether there are any disbursements, such as those for obtaining a credit report or for advancing the costs of credit counseling.
My retainer agreements also indicate what obligations my clients have. These include simple things such as reading mail that I send them, agreeing to provide correct and accurate information, and letting me know if there are any significant changes in their circumstances.
If you are filing for personal bankruptcy, make sure your attorney prepares a written retainer agreement, and of course, make sure you read it before signing it; ask any questions if you do not understand it; and make sure you get a copy of it.
Written by Craig D. Robins, Esq.The Importance of Experienced Counsel in Bankruptcy Cases
Let’s start with the likelihood of success of a debtor filing a pro se Chapter 13 bankruptcy case. It’s virtually zero. There is almost no chance of success. This is based on regular reports from Chapter 13 trustees around the country.
But suppose you retain a Chapter 13 lawyer. Does that mean you will definitely succeed with your case? Not necessarily. A debtor’s success with a Chapter 13 bankruptcy is still not assured merely because you are being represented by counsel.
What’s most important in having a successful Chapter 13 case is the competence and ability of the debtor’s attorney, the attorney’s understanding of the law, and his or her appreciation of the responsibilities and obligations of the attorney-client relationship in bankruptcy cases.
These were the comments of my colleague, bankruptcy attorney William J. McLeod, who spoke at a consumer bankruptcy seminar in Boston this afternoon which was attended by several hundred bankruptcy attorneys from across the Northeast. Bill is the author of a great little resource book for bankruptcy attorneys, Chapter 13 in 13 Chapters.
The Bankruptcy Battleground is Constantly Changing Whether It’s Chapter 7 or Chapter 13
Here’s why having experienced counsel is so important. Practicing bankruptcy law is in essence like shooting a moving target. The rules are constantly changing, the law is constantly changing, and the bankruptcy court’s interpretation of the law is also constantly changing.
What a debtor might be able to get away with one month can be shot done the next month, and visa-versa.
For example, last month I wrote about a bombshell decision from Long Island Bankruptcy Court Judge Dorothy T. Eisenberg who had just come down with a decision permitting Chapter 7 debtors to cram-down second mortgages. (Chapter 7 Cram-Down of Second Mortgages ). Obtaining this relief was previously impossible in the Bankruptcy Court for the Eastern District of New York.
My office quickly seized on this new avenue of legal relief, and we are now helping a number of clients to eliminate their second mortgages in Chapter 7 cases.
However, most attorneys still do not even know about this new decision as the Judge delivered it with no fanfare or other formal announcement. To my surprise, the Judge didn’t even mention it at a recent bankruptcy seminar.
I learned about it because I regularly read every new bankruptcy court decision that comes out of the Long Island Bankruptcy Court. I asked the judge why she didn’t mention the decision at the seminar and she said that she assumed all bankruptcy counsel regularly read the new case decisions.
Having experienced bankruptcy counsel is necessary to properly evaluate a potential bankruptcy filing, develop an appropriate bankruptcy strategy, and then communicate with the clients so that they understand how the bankruptcy case will work.
Debtor’s Counsel Plays an Integral Role in the Bankruptcy Process
When you have questions about your bankruptcy, you call your bankruptcy attorney.
When creditors have a question or concern, they call debtor’s bankruptcy attorney.
When trustees file a motion to dismiss, it is debtor’s bankruptcy counsel who must respond, appear and when appropriate, defend the matter in bankruptcy court.
Without any doubt, debtor’s counsel plays an integral role in the bankruptcy process.
Bottom Line: If you want to make sure your bankruptcy case is successful and that you get the maximum amount of debt relief the the bankruptcy laws afford you, use a competent and experienced bankruptcy attorney.
When a client comes in to meet with one of my Long Island bankruptcy attorneys or me, they can be assured of getting personal attention and up-to-date bankruptcy advice, based on our experience and knowledge.
Written by Craig D. Robins, Esq.Last week I wrote a post in which I said that You Need Certain Identification to File for Bankruptcy . I did have one unusual case in which my client could not obtain the necessary photo ID.
Several years ago I represented a disabled woman through the Volunteer Lawyers Project. She had no photo identification when she came to my office and had never driven a car in her life. In addition, she had never worked. As you can imagine, she never received a driver’s license or any other kind of photo identification.
I sent her to the NYS Department of Motor Vehicles to get an official New York State identification card, but they refused to give her one because she had no other sources of identification to prove who she was.
When I filed her bankruptcy case in the Central Islip Bankruptcy Court, the Chapter 7 trustee, Allan B. Mendelsohn, eventually agreed to examine her at the meeting of creditors, but did not officially close the meeting. I then brought a motion to waive the identification requirements after reviewing the matter with the Office of the United States Trustee. The motion was granted, the trustee closed the meeting of creditors, and the debtor received her discharge.
Written by Craig D. Robins, Esq.Everyone who files for personal bankruptcy must produce identification. You are not required to produce identification at the time of filing, but at the meeting of creditors which occurs one month later. However, any experienced bankruptcy attorney will want to see that ID from the outset.
The Office of the United States Trustee adopted a policy in 2002 in which individuals are required to identify themselves with picture identification (typically a driver’s license) and proof of correct Social Security number (typically a Social Security card).
However, other forms of proof are acceptable as well. According to instructions about identification issued by the Office of the United States Trustee, Chapter 7 and Chapter 13 trustees should also accept the following items as acceptable forms of photographic identification: passport, legal resident alien card, military identification, or state-issued photo identification card.
Satisfactory proof of Social Security number can be also demonstrated with the following documents as long as they contain the full Social Security number and full name of the debtor: pay stub, health care card, any correspondence from the Social Security Administration, or a current W-2.
I’ve actually attended hearings in which I observed some local trustees in the Central Islip Courthouse being unaware that a debtor can furnish proof of Social Security number with some of the above documents. Hopefully all of the trustees have become aware of the U.S. Trustee’s policies by now.
If the debtor does not have photo identification and proof of Social Security number with them when they appear before the trustee at the meeting of creditors, the trustee can refuse to examine them.
In my practice, I require all clients to provide me with their driver’s license and Social Security card at the initial intake. I then make a legible photocopy and place it in the file. On numerous occasions these copies have saved the day when the client forgot to bring their ID to the court. Also, by reviewing the debtor’s identification early on, I have time to enable the debtor to obtain satisfactory identification there is a problem with it.
My Favorite Bankruptcy Book
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Written by Craig D. Robins, Esq.Ever since I started practicing bankruptcy law over twenty years ago, I’ve relied on one law book more than any other: Consumer Bankruptcy Law and Practice.
Published by the National Consumer Law Center, it is now in its Eighth Edition. It is my favorite bankruptcy handbook and I often refer to it as the bankruptcy bible.
This is the definitive consumer manual and the must-have book for any attorney who practices bankruptcy. It is now takes up two volumes for a total of well over thirteen hundred pages. There are excellent summaries of almost every possible bankruptcy issue, together with case citations, sample pleadings, a full copy of the Bankruptcy Code and Rules and more. It’s cost of $180 is well-worth it. Also included is a CD-Rom.
The only downside for Long Island bankruptcy attorneys is that it does not focus on any New York issues or exemptions.
The publisher, the National Consumer law Center, is a not-for-profit operation that emphasizes education and advocacy to help and protect consumer rights. You cannot go wrong with this book.
Interpreters in Bankruptcy Court
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Written by Craig D. Robins, Esq.
What happens if you are a debtor in a bankruptcy case and you can barely speak English?
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Free English translation services now available in our Long Island Bankruptcy Court
The U.S. Trustee Program recently began offering free translation services. The service is limited to assisting non-English speaking debtors at the meeting of creditors, which is also known as the section 341 hearing.
The first time I saw this in action I was amazed at how smoothly the process worked. I was at a meeting of creditors a few months ago with some Spanish-speaking clients. The trustee was Andrew Thaler who had never utilized the service before. Using a telephone in the meeting room, the trustee called a central translation service switchboard, provided some info, and within minutes was connected to a Spanish-speaking interpreter.
The interpreter methodically translated through the speaker phone, and there were no problems at all.
In the past, a debtor with limited English proficiency would have to bring their own interpreter with them, who was often a family member. Although this had worked smoothly with most trustees, some trustees were not too willing to let family members serve as interpreters because of potential bias.
The new system, which is in accordance with an Executive Order from the President requiring federal agencies to have a Language Assistance Plan, provides interpretation services in as many as 196 languages. Currently the service is only available in some areas and we are fortunate enough to have it in the Central Islip and Brooklyn Bankruptcy Courts.
To minimize delays at the meeting of creditors, debtors wishing to take advantage of this free service are encouraged to have their bankruptcy attorney contact the trustee in advance of the meeting.