Your Cornacopia of Bankruptcy Goodness ...

Federal Regulations Double the Average Minimum Credit Card Payment

By The Associated Press

Federal regulations require credit card companies to increase minimum payments from 2% to 4% of the balance beginning January, 2006; good for consumers in the long run (less interest) but obviously a burden in the short run.

2 Million Plus Filings in 2005

The UST reported that 2,043,535 people and businesses filed in 2005; by far the highest number of filings on record. 60% of filings since the effective date of BAPCPA have been under Chapter 13, roughly double the number typically filed.

Getting Paid from the Chapter 7 Estate (Revisited)

The problem: Getting paid for both pre-petition and predictable post-petition work by your Chapter 7 Client.

The solution: Take a larger retainer before filing

(Bonus problem: if they could afford a large retainer they would not be filing Chapter 7)

Anyway .... let's assume your Chapter 7 client has the money. We have a couple of different options:

1. Claim funds that will pay for post-filing work as exempt.

2. Under a literal reading of the Code, advances for future services are not part of the estate.

3. State-law lien on cash in your possession (check it out)

4. Two contracts -- one for prepetition services and one for post-petition (with payment from a post-petition source).

Enjoy.