Avoidance Powers In Chapter 13 – Part 1 of 6

“The bankruptcy petition came to my desk for review with no entry for “clothing and wearing apparel”. Funny, I think I’d remember if I’d interviewed any naked people lately.” Although filled with Attorney Moran’s wit, there is an important lesson here! Feel free to add your own ‘naked client’ story in the comments section below the article.

This article is not mortgage-related and it is a Chapter 7 . . . BUT the order issued in this adversary is instructive regarding the bases for having records sealed in a bankruptcy case.

Chapter 13 debtor may modify confirmed plan, both to reduce payments and shorten length of plan even though the debtor had above-median income at the time of confirmation but below median income, at the time of modification.

Equity that accrues as a result of market conditions in debtor’s assets between the time of confirmation of a Chapter 13 plan and conversion to Chapter 7 constitutes property of the estate which may be administered by the Chapter 7 trustee.

“Is it possible to voluntarily convert a chapter 13 case to chapter 7, and later reconvert back to chapter 13? There is a split of authority on whether this maneuver is allowed.”

Jen Lee is spot-on highlighting poor client communication as the source of both individual client anguish and with discontent with the legal profession as a whole. Failure to return calls is the most frequent complaint to the state bar where I practice. See also: -Stop the Chaos and Fix Client Communication with Smart Tech -Spitballing Chapter 13’s Image Makeover -Ditch the Bankruptcy Jargon—Marketing Chapter 13 as the Ultimate Solution (Note that there are a few comments on this article.) Thoughts on a Chapter 13 image makeover? Let us hear from you.