Summary:
The Female Debtor received a bonus for 2010 in March 2011 ad filed Chapter 7 in June 2011. She claimed an exemption in an annual bonus under N.C.G.S.
The characteristics of bankrupt households (such as income and asset levels) vary widely across states. This paper asks whether these variations can be attributed to state exemption laws or state garnishment laws. Using a new household-level dataset, the author finds that high exemption levels encourage high asset households to file for bankruptcy while high garnishment rates encourage low income households to file for bankruptcy.
Summary:
The Debtors had initially disclosed in their petition that they anticipated receiving tax refunds for 2008 totaling $3,000.00. The actually received $11,194.00, but failed to notify either the Chapter 13 Trustee or their attorney.
After failing to obtain confirmation of their original Chapter plan, which sought to strip-off a junior mortgage held by State Employee's Credit Union, a the Debtors proposed a plan releasing their residence to SECU. Under the new plan, no funds would be paid to SECU, which accordingly sought and obtained an order allowin
This paper looks at the extent that differences in foreclosure and bankruptcy laws can jointly explain variation in default rates across states. The author finds that more generous homestead exemptions raise the cost of unsecured borrowing. Households in states with high exemptions therefore hold less unsecured and more mortgage debt compared to low exemption states, which leads to lower bankruptcy rates but higher foreclosure rates.
