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THE CONSUMER BANKRUPTCY LETTER |
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In This Issue:
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July 19 2004
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DISCHARGING TAXES MADE SIMPLE!
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TAX DISCHARGE CONSULTING BY PHONE
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NO LEGISLATIVE ACTION SEEN
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TRUSTEE'S ATTORNEY ENGAGED IN POINTLESS LITIGATION
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REPORT BLASTS CREDIT COUNSELING
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KING BANKRUPTCY ACADEMY SCHEDULES 3-DAY SEMINARS ON DISCHARGING TAXES - LAS VEGAS, SAN FRANCISCO & SAN ANTONIO
The first dates scheduled for the 5th annual Bankruptcy Academy program on discharging taxes in bankruptcy cases have been scheduled for
LAS VEGAS, Nevada, on Sept. 8, 9 and 10, 2004;
FISHERMAN'S WHARF, S. F., on October 27, 28 & 29, 2004,
SAN ANTONIO, Texas, January 27, 28 & 29, 2005.
Additional 2005 dates are pending for Atlanta, Georgia, and Boston, Mass.
Principal presenters will be; Morgan King, attorney and author of Discharging Taxes in Bankruptcy; Charles F. Rosen, former chief of the Los Angeles IRS office of Special Procedures (bankruptcy, insolvency); Eric M. Casper, formerly Senior Trial Attorney, Tax Division, U.S. Department of Justice - Washington, D.C.; and Robert N. Kolb, formerly with the IRS and recently the prevailing attorney for the debtor/taxpayer in two important appellate cases.
The 3-day seminar and workshop will be a thorough exploration of bankruptcy remedies for delinquent taxes and tax liens in consumer bankruptcy cases (chapter 7 and chapter 13), emphasizing practical handlng of tax discharge cases from A-to-Z.
CLE ACCREDITATION
Previous programs have qualified for CLE in all states for which CLE accreditation was requested. The Academy is applying for attorneys' CLE accreditation in all states for which CLE is mandatory. We are also applying for CPE accreditation from the IRS for enrolled agents, as well as CPE with the national association of CPAs.
TUITION
Single attorney registration $645 until Aug. 2 (then $695)
Double attorney registration $995 (saves $400!)
Paralegal or other office staff $350
Enrolled agent or CPA $495
For more information about the Tax Discharge program, or to enroll, click on red below or call (925) 829-6460 west coast time.
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CONSUMERS WARNED ABOUT CCCS
WASHINGTON, July 12 /PRNewswire/ -- A national advocacy group, Consumers for Responsible Credit Solutions, released an 80-page report today that carries serious warnings for consumers about the nation's best known chain of credit counseling agencies, Consumer Credit Counseling Services (CCCS).
Some of the many creditors who have been represented on the NFCC Board of Trustees have recently paid hundreds of millions of dollars in Federal Trade Commission fines and other settlements for anti-consumer practices and abusing consumers' rights.
The report argues the best way to make the credit counseling industry more favorable to consumers is to reduce the direct influence and control of creditors and encourage the growth of independent, non-NFCC credit counseling agencies.
The report finds two factors have particularly enabled problems to arise: a lack of national regulatory standards; and mandates that credit counseling agencies be "nonprofit," which exempts them from most state and federal regulation. This has left an industry that handles billions of dollars in consumer payments largely unregulated. The report recommends establishing national standards and opening the industry to professional financial services businesses that already serve consumers and are already subject to regulatory scrutiny.
Consumers looking to better understand the NFCC and the industry are urged to read the report entitled: "Nonprofits In Service to One of America's Most Profitable Industries: A Report On How Creditor Control of the Credit Counseling Industry Hurts Consumers and The Need For Fundamental Reform." Copies are available at:
http://www.responsiblecredit.com
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U.S. HEADED FOR NEW BANKRUPTCY FILING RECORD
Americans are going broke as never before: A record 1,625,208 families sought bankruptcy protection last year, and filings are up 2.7 percent so far in 2004.
Put another way, 1 in 73 households declared bankruptcy in 2003, numbers that make it likely you have a neighbor, co-worker or family member who was, is or is about to go bankrupt. Experts Elizabeth Warren and Amelia Warren Tyagi expect more families to see bankruptcy court than divorce court this year.
Americans hold $8.9 trillion collectively in household debt, a record compared to their disposable income. Simply put: We spend more than we can afford.
By MARY DEIBEL, Scripps Howard News Service
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TRUSTEE'S ATTORNEY CLAIMS $19K IN FEES TO COLLECT $14K IN FUNDS
Bruce Leichty, in his capacity as counsel for a Chapter 7 trustee, appeals the bankruptcy court’s order, which, pursuant to 11 U.S.C. § 330, awarded only half of the compensation he requested in his final fee application. The bankruptcy court did not award the full amount requested because it concluded that Leichty pursued litigation that was not reasonable or necessary in its entirety. We hold that the bankruptcy court did not abuse its discretion in making this determination.
Held, it is readily apparent that if the legal fees exceed the recovery, the estate is not benefitted. Even if the potential for recovering attorney’s fees is included, incurring $19,065 in legal fees in exchange for the uncertain prospect of recovering $14,000 for a priority creditor holding a nondischargeable debt could reasonably be characterized as a “modest” benefit to the estate.
In re STRAND (9th Cir. 2004)
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STUDENT LOAN DISCHARGED: ILL HEALTH KEY FACTOR
Held, debtor satisfied all three elements of the Brunner test and her student loan was discharged pursuant to 11 U.S.C. section 523(a)(8). Availability of income-contingent repayment plan did not preclude finding of undue hardship.
Durrani suffers from diabetes, high blood pressure, high cholesterol, poor vision and osteoarthritis in one knee. She has a permanent handicapped parking placard from the Illinois Secretary of State. 8. Durrani has consistently tithed to her congregation for over 20 years. In 2001, she tithed $1,706 and made additional offerings of $42. In 2002, she tithed $1,967 and made additional offerings of $37. Through May 18, 2003, she had tithed $1,105 and made additional offerings of $23.
Accordingly, the issues that must be resolved in the instant proceeding are: 1. Whether, based on current income and expenses, Durrani can maintain a “minimal” standard of living for herself if forced to repay the loan; 2. Whether additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the loan; and 3. Whether Durrani has made good faith efforts to repay the loan.
Durrani v. ECMC (Bankr. N.D. Il. 2004)
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FINISH THIS JOKE . . .
Last week we invited our readers to submit their own endings to the joke starting out, "a freighter on the high sees came across a rubber raft..." We received only two responses, which shows what a bunch of wuses are out there. Anyway, we found the responses reasonably amusing. Here they are:
A freightor on the high seas came across a rubber raft with three dead bodies and one barely alive. The dead were identified as a bankruptcy judge, a trustee, and a debtor's attorney. The barely alive one was the debtor.
"What happened was this," began the debtor ...
The short answer -
I told 'em the water wasn't safe to drink ... but my lawyer just covered his ears and didn't listen, the judge said that was just hearsay, and the trustee said it tasted like blood.
Brian Crozier Whitaker, San Diego, CA
The long answer -
We went out for a sail on the yacht I forgot to list on my petition, but it sank in a storm. We didn't have enough food or water. The trustee wanted to throw me to the sharks and eat the leftovers, but my attorney said, "Take me instead!" and jumped in.
A shark came along and threw my attorney back into the raft, saying something about professional courtesy. As he landed, my attorney cracked his head on the trustee's head, and they both fell into a coma and eventually died of thirst. That left me as a pro se debtor, and I'm afraid that I wore out the judge's patience to the point where he strangled himself.
Does that mean I'm not getting a discharge?
- Walter Oney, Boston, MA.
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PUBLISHED BY KING BANKRUPTCY MEDIA FOR BANKRUPTCY PROFESSIONALS 7080 Donlon Way Suite 222 Dublin California 94568 (925) 829-6460
© King Bankruptcy Media 2004 CONTACT US AT editor@bankruptcymedia.com
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