South Carolina consumers who file for bankruptcy need to provide information about finances, but bankruptcy lawyers say that trustees in another state are overstepping with some requests. Two Maryland trustees are asking debtors to disclose login information for their Amazon Prime, eBay and PayPal accounts. The debtors are also required to leave the accounts open and cannot change their passwords for at least 10 days.
South Carolina residents may be interested to know that a debtor may be able to discharge credit card debts quickly after acquiring them. This was the ruling of the U.S. Bankruptcy Court for the Northern District of West Virginia in a case against World's Foremost Bank. The bank that issued the credit card contended that the debtor in question didn't have the right to discharge a $7,993 credit card cash advance.
South Carolinians who want to file for bankruptcy may be interested in a ruling handed down by the 9th Circuit court in the fall of 2016. The matter involved a dentist who filed for bankruptcy after one of his patients secured a malpractice judgment against him. Because the dentist transferred some of his real estate assets before his successful bankruptcy filing, the patient sought to bar him from obtaining a discharge on the grounds that he made the transfer in order to cheat his creditors out of compensation.
South Carolina residents who do not have a large savings account are not alone. According to reports, nearly two-thirds of Americans have less than $1,000 put away, and one out of every three Americans have no money saved for their retirement. A major factor behind people's inability to save money is debt.
South Carolina residents who are considering a Chapter 7 personal bankruptcy may be aware that trustees are appointed to ensure that the laws and procdures are followed, but they may not know that the compensation of these trustees is strictly regulated and commission based. The creditors of an Illinois construction company that filed a Chapter 7 petition sought legal remedies when the trustee involved claimed the maximum commission allowed by law, but a May 17 U.S. Bankruptcy Court decision clarified the rules and dismissed the creditors' objections.
South Carolina residents interested in bankruptcy matters might like to know about the Supreme Court ruling on May 16 where the judges ruled 7-1 that fraudulent conveyance schemes constitute a fraud exception from bankruptcy discharge even if there is no false representation. They also decided that the term "actual fraud" from the federal bankruptcy code did apply in this circumstance.
People in South Carolina who file for Chapter 11 bankruptcy and then convert it to Chapter 7 may face having to turn earnings over to the trustee based on a March 2016 ruling in a district court. The district court, which is located in Illinois, heard the case of a man who was unable to reorganize his debts and thus converted from a Chapter 11 to a Chapter 7. One of his creditors and the Chapter 7 trustee said the man had to turn his earnings from his debtor in possession account over to the trustee.
According to court documents, health kiosk company HealthSpot has filed for Chapter 7 bankruptcy, under which the company's assets will be liquidated in order to pay its creditors. The move came after reports that the company would be closing.
Many South Carolinians have experienced financial hardships due partially to mounting student loan debts. Some may file for Chapter 7 bankruptcy as a last resort to resolve their debts with the impression that it will solve their student loan issues along with their other obligations. However, student loans can be considerably more difficult to discharge in bankruptcy filings than other debts.
Married couples in South Carolina often decide to seek a divorce when there seems no way out of mounting financial problems, and some unhappy spouses looking for a fresh start also decide to file for bankruptcy. While both bankruptcy and divorce offer an escape from unmanageable situations, the decision about which to pursue first should be made carefully.