Attorneys Have Debt Problems And File Bankruptcy Too

by Dan Nunley on March 16, 2010

in Lawyer to Lawyer

So far this year, I’ve been contacted by three attorneys who are considering filing bankruptcy. I’ve been a bankruptcy lawyer for fifteen years now and it seems that every year at least one or two attorneys contact me for advice regarding serious debt problems.

Attorneys aren’t that different from other consumers – some have serious debt problems. Many attorneys are self-employed entrepreneurs whose cash-flow can fluctuate greatly from month-to-month just like the incomes of other small business owners.

While considering bankruptcy is a stressful thought for almost all business people, attorneys who are thinking about bankruptcy have some unique concerns. The attorneys that I have counseled have all been worried that filing bankruptcy might mean that they wouldn’t be able to continue to practice law.

Here are some typical questions that I get from attorneys:

  • Are attorneys allowed to file for bankruptcy?
  • Is filing bankruptcy a violation of the rules of professional conduct?
  • Can an attorney continue to practice law after filing bankruptcy?

Here’s what I tell attorneys who contact me for bankruptcy advice: [read more]

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Means Test Income Figures Changing March 15

by Dan Nunley on March 4, 2010

in Means Test

Every few months, the income figures used to determine whether or not a person qualifies to file Chapter 7 bankruptcy are adjusted. The current means test income figures that have been in effect since November 1, 2009 will be changing March 15, 2010.

My review of the new numbers reveals that it will be a little harder for Oklahomans to qualify for Chapter 7 bankruptcy on March 15 compared to today. This is because the new median income figures are lower than the prior income figures for Oklahoma households of all sizes.

The new median income figures for Oklahoma households are:

  • $38,929 (1 person household)
  • $50,710 (2 person household)
  • $54,328 (3 person household)
  • $61,816 (4 person household)

*Add $6,900 for each individual in the household over 4 for cases filed from March 15 through March 31, 2010.

*Add $7,500 for each individual in the household over 5 in cases filed on April 1, 2010 or thereafter.

If a person’s household income falls below these income levels, he/she passes the Means Test and automatically qualifies to file a Chapter 7 bankruptcy.

Most types of income are counted toward these figures, but a few types of income are excluded such as Social Security income.

A person whose household income exceeds these figures may still qualify for Chapter 7 bankruptcy if he/she has enough allowable expense deductions to offset his/her above median income.

A person who fails the Means Test and does not qualify to file Chapter 7 bankruptcy may choose to file a Chapter 13 bankruptcy instead.

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Why You May Not Want To Hire The Cheapest Bankruptcy Attorney

February 24, 2010

I get a lot of telephone calls and emails from people wanting to know how much I charge for a bankruptcy. I usually tell them that’s like calling up a car dealer and asking how much it costs to buy a car. The price depends on a lot of factors.
My attorney’s fee is set based [...]

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Pryor Gatorade Plant To Close

February 23, 2010

PepsiCo announced last Thursday that it is closing its two-year old Gatorade plant located in Pryor’s Mid-America Industrial Park. The company has already stopped regular production work at the plant and plans to wind down operations during the next three months.
Pepsico says all of the approximately 100 employees will receive three months and one week [...]

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Defending Foreclosures In Oklahoma

February 22, 2010

One of the things I am committed to doing as an Oklahoma attorney is staying up-to-date on the law and the different remedies available to Oklahoma consumers. To do that, I spend many days each year attending local and national legal seminars where I learn from the best and the brightest legal minds from all [...]

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A Good Bankruptcy Attorney Will Understand Your Feelings

February 17, 2010

Many of the people who contact me to talk about debt problems have already talked with at least one other bankruptcy lawyer. And many of the stories I hear aren’t good.
It seems that a lot bankruptcy attorneys have a terrible “bedside manner.” Some come across as arrogant. Others act like they’re doing you a favor [...]

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Unemployment Benefits Will End Soon For Millions Of Unemployed American Workers

February 16, 2010

Back in December, the qualification dates for existing tiers of unemployment benefits were extended for an additional two months. This extension is up at the end of February which means that unless another extension is made, millions of unemployed workers will lose their unemployment benefits over the next few months.
The National Employment Law Project (NELP) [...]

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Tulsa-Based Homeland Federal Mortgage Goes Out Of Business

February 15, 2010

Tulsa-based Homeland Federal Mortgage has closed for business.
The mortgage company’s officers, Daniel & Laura Newberry, filed a personal Chapter 7 bankruptcy on February 5th in the U.S. Bankruptcy Court for the Northern District of Oklahoma.
Homeland Federal’s president, Dan Newberry, who also is an Oklahoma state senator, said the closing of his mortgage company and his [...]

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No Income Tax Owed On The First $2,400 Of 2009 Unemployment Benefits

February 12, 2010

If you received unemployment benefits last year, remember in preparing your 2009 tax returns that the first $2,400 of those unemployment benefits is tax-free income.
Under last year’s American Recovery and Reinvestment Act (ARRA), every person who received unemployment benefits during 2009 is eligible to exclude the first $2,400 of these benefits when they file their [...]

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Discharging Payroll Taxes In Bankruptcy

February 8, 2010

Can payroll or employment tax liability be discharged in bankruptcy? It depends.
Payroll or employment taxes are comprised of two parts:

the employer portion, and
the employee portion.

Employer Portion of Payroll Taxes is Dischargeable – Sometimes.
The employer portion of the payroll tax is the tax which the employer owes directly to the IRS. The employer portion includes [...]

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