Supreme Court: Inherited IRA’s Not Protected in Bankruptcy

In a unanimous decision, the Supreme Court in Clark, et ux v. Rameker, 573 U.S. __(June 12, 2014), resolved a split among federal appeals courts as to whether inherited IRA’s are shielded from creditors in bankruptcy.  Unlike traditional IRA’s, they are not.  The case dealt with a Wisconsin couple, Heidi

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Tips for Preparing a Financial Statement for a Lender

  Be truthful.     When filling out a financial statement for a lender, you must fully and accurately list all of your ownership interests in property and all of your debts.  If you provide a false financial statement to a lender and the lender extends credit to you based on those

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SCOTUS on Bankruptcy Jurisdiction: Prediction

On June 9, 2014, SCOTUS issued one of its rare birds —  a 9-0 ruling.     While all the Justices are unanimously united, the rest of us are now dealing (yet again) with another wrinkle-trying to understand what the heck they are talking about.   In the case of  Executive Benefits Insurance Agency

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Massive Double Whammy in Kentucky Pension Community

First, after 5 pm on Friday, May 30, Bankruptcy Judge Joan Lloyd issued an 80-plus page opinion that Seven Counties, the community mental health center that serves 32,000 clients in the Louisville metro area, is permitted to withdraw from the Kentucky state pension system.  Press and other speculation is running rampant on

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Automatic Stay: What is it?

The foundational goal of the bankruptcy system is to provide deserving debtors with relief from their debts so that they can obtain a “fresh start.” This process starts at the moment that a debtor files for bankruptcy case through the “automatic stay.” The automatic stay is a portion of the

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5 Concerns When Closing a Medical Practice

With the current uncertainty of Medicare reimbursement rates and rising operating costs, many medical practices–in particular, independent medical practices–are closing their doors.  If you are in the process of closing a medical practice, here are a few areas of concern: Patient notice of closing.  You will want to consult your state

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Chapter 11 Decisions: Absolute-Priority Rule Stands

THE SIXTH CIRCUIT COURT OF APPEALS RULES THAT THE ABSOLUTE- PRIORITY RULE STILL APPLIES IN INDIVIDUAL CHAPTER 11 CASES The Sixth Circuit Court of Appeals recently issued an opinion reversing the lower bankruptcy court’s holding that the absolute- priority rule no longer applies to individual Chapter 11 cases following the

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Chapter 12, bankruptcy, farmers, family farm, fisherman

What is a Chapter 12 Bankruptcy?

Chapter 12 Bankruptcy If you are a Kentucky farmer or fisherman you may be wondering…’what is a chapter 12?” Chapter 12 bankruptcy is a reorganization bankruptcy intended for family farmers and family fishermen. This chapter is designed specifically for small to medium-sized family operations as there are debt limits for

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What Do Judges Want?

I recently listened to a panel of bankruptcy judges from across the country give their “pet peeves” at an event held for Fellows in the American College of Bankruptcy.  The College is an honorary association of bankruptcy and insolvency professionals, invited to join based on exhibiting the highest standards of

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The Pitfalls of Asset Disclosure In Bankruptcy Filing

Everyone who files a bankruptcy petition signs their bankruptcy schedules under penalty of perjury. Failure to list assets or accurately disclose your financial condition can lead to a denial of a bankruptcy discharge or allegations of bankruptcy fraud. Here are a few tips to consider when filing bankruptcy: List ALL

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