Supreme Court Corner – Hot Off the Wire

Community property works differently in bankruptcy. I probably don’t have to tell you that. On the issue of assets and debts, community property is pretty straightforward. All of the community property comes into the estate upon the commencement of a bankruptcy case, even when only one spouse files. §541(a)(2). Every creditor with a right to be paid from the community can file a claim, regardless of which spouse incurred the debt. §101(7). So creditors of the nonfiling spouse are proper claimants in the filing spouse’s bankruptcy case. If the bankruptcy estate contains separate property as well, §726 creates a distribution scheme that segregates community assets from separate property assets in paying community and non community debts. So far pretty straightforward. Right?

The bankruptcy means test, designed to keep people out of bankruptcy, has a fatal weakness. . . . it’s health care.

The Honorable Paul W. Bonapfel, United States Bankruptcy Court for the Northern District of Georgia, produces an extensive outline on Subchapter V. This is a FREE resource and is freshly updated!! Thank you Judge Bonapfel!

Mary Elisabeth Naumann Sworn in as Judge

Our SIXTH podcast episode just dropped!

Seventh Circuit Announces the Appointment of Michael B. Slade to the U.S. Bankruptcy Court for the Northern District of Illinois

“Three cheers for Jen Lee’s piece on the need to pitch the manifest strengths of Chapter 13. Her advice to use head-to-head comparisons with alternative approaches to debt for the client is right on. An image makeover for Chapter 13 would be even more powerful if we can spread the word to a broader audience, before they’ve shorted their tax withholding, encumbered their exempt homestead, signed on with a profit-focused ‘debt consolidation’ company, or dipped into their retirement funds.” Think Chapter 13 needs an image makeover? Let us hear from you.