{"id":16,"date":"2007-05-24T05:13:00","date_gmt":"2007-05-24T05:13:00","guid":{"rendered":"https:\/\/mn-bankruptcy.com\/blog\/?p=16"},"modified":"2007-05-24T05:13:00","modified_gmt":"2007-05-24T05:13:00","slug":"big-victory-for-broke-people","status":"publish","type":"post","link":"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/","title":{"rendered":"Big Victory for Broke People"},"content":{"rendered":"

The Eighth<\/span> Circuit Court of Appeals just issued a decision today which fixes one of the numerous rules of bankruptcy law that had been wrong for a long time. They actually did something that makes sense.<\/p>\n

The rule was that any money in a debtor’s checking account was considered to be an asset of the debtor even if there were outstanding checks that had not yet cleared the bank. In the case of Brown v. Pyatt<\/span><\/a>, U.S. Court of Appeals Case No: 06-3404 from the U.S. Bankruptcy Court for the Eastern District of Missouri – St. Louis, the federal appeals court told the United States Trustee’s office that they can no longer count money in a checking account as an asset if there are outstanding checks that the money is needed to cover.<\/p>\n

I consider this a victory for compassion and clear thinking. Up until now, a debtor<\/span> in bankruptcy, after being lectured by a credit counselor about the need to learn better financial habits, was then told by the trustee that already spent money in a checking account still counted as an asset. It was a stupid rule, and I’m glad to see it apparently gone.<\/p>\n

I hope this doesn’t turn out to be an empty victory. The fine print in the decision indicates that the trustee can go after the payees of the checks and recover the money from them. I’m not sure if the trustees will actually go ahead and do that. But lets say one of the checks is for a house payment and the trustee demands repayment from the mortgage company. I would assume that the mortgage company would then claim that the mortgage is a month behind – which puts the debtor back in a tight spot. Even though I like the looks of this decision, I will continue for now to advise clients to avoid having checks out there that have not cleared as of the date of filing. What I’ve been doing is telling them to use money orders instead of writing checks in the week or so prior to filing.<\/p>\n

For a rundown on filing bankruptcy in Minnesota, see my site at http:\/\/www.mn-bankruptcy.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Eighth Circuit Court of Appeals just issued a decision today which fixes one of the numerous rules of bankruptcy law that had been wrong for a long time. They actually did something that makes sense. The rule was that any money in a debtor’s checking account was considered to be an asset of the … <\/p>\n

Continue reading “Big Victory for Broke People”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nBig Victory for Broke People - Better Call Dave - Bankrupt MN Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Big Victory for Broke People - Better Call Dave - Bankrupt MN Blog\" \/>\n<meta property=\"og:description\" content=\"The Eighth Circuit Court of Appeals just issued a decision today which fixes one of the numerous rules of bankruptcy law that had been wrong for a long time. They actually did something that makes sense. The rule was that any money in a debtor’s checking account was considered to be an asset of the … Continue reading "Big Victory for Broke People"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\" \/>\n<meta property=\"og:site_name\" content=\"Better Call Dave - Bankrupt MN Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/davidkelllylawoffice\" \/>\n<meta property=\"article:published_time\" content=\"2007-05-24T05:13:00+00:00\" \/>\n<meta name=\"author\" content=\"DaveKelly\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"DaveKelly\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\"},\"author\":{\"name\":\"DaveKelly\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#\/schema\/person\/a385963a920f92e1cf406fa921c98453\"},\"headline\":\"Big Victory for Broke People\",\"datePublished\":\"2007-05-24T05:13:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\"},\"wordCount\":372,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#organization\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\",\"url\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\",\"name\":\"Big Victory for Broke People - Better Call Dave - Bankrupt MN Blog\",\"isPartOf\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#website\"},\"datePublished\":\"2007-05-24T05:13:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Minnesota Bankruptcy\",\"item\":\"https:\/\/mn-bankruptcy.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Big Victory for Broke People\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#website\",\"url\":\"https:\/\/mn-bankruptcy.com\/blog\/\",\"name\":\"Better Call Dave - Bankrupt MN Blog\",\"description\":\"Minnesota Bankruptcy Lawyer David Kelly discusses Filing Bankruptcy in Minnesota\",\"publisher\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/mn-bankruptcy.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#organization\",\"name\":\"Kelly Law Office\",\"alternateName\":\"Dave Kelly Law Office\",\"url\":\"https:\/\/mn-bankruptcy.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2018\/05\/Kelly_Bnnr-3.jpg\",\"contentUrl\":\"https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2018\/05\/Kelly_Bnnr-3.jpg\",\"width\":549,\"height\":144,\"caption\":\"Kelly Law Office\"},\"image\":{\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/davidkelllylawoffice\",\"https:\/\/x.com\/mnbankruptlawyr\",\"https:\/\/www.linkedin.com\/in\/david-kelly-5887aa7\/\",\"https:\/\/www.youtube.com\/user\/freshstartdwi\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#\/schema\/person\/a385963a920f92e1cf406fa921c98453\",\"name\":\"DaveKelly\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\/\/mn-bankruptcy.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/25bc3be9b896136baf5897f6238b816558c7b3ecb8147373f71c203e2763a6e8?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/25bc3be9b896136baf5897f6238b816558c7b3ecb8147373f71c203e2763a6e8?s=96&d=mm&r=g\",\"caption\":\"DaveKelly\"},\"description\":\"I've been practicing law in the western suburbs of Minneapolis for over 37 years. Sometimes that seems like a long time, and other days I feel as if I just started. These days my practice is devoted entirely to counseling folks concerning their financial problems and representing them in Chapter 7 and Chapter 13 bankruptcy. One thing I don't do is credit repair. When asked about matters concerning credit scores, I like to say \\\"I'm a very good source of unreliable information about that.\\\" What I mean is that I hear a lot about it from my clients who often report back to me how they are doing after their bankruptcy is completed, sometimes even years later; but having heard some stories from a few people doesn't qualify me to give any advice. I spend a lot of time with my clients. I want to be sure we get it right. There are civil and criminal penalties for concealing or providing incorrect information in a bankruptcy care, and my goal is to keep myself and my clients as far away from problems like that as possible. You can find me in MInnetonka near I-394 and Hopkins crossroad. It's ten or fifteen minutes from downtown Minneapolis. You can see parts of Plymouth, Minnesota, Golden Valley, Minnesota and St. Louis Park, Minnesota from the high ground in front of my building. If you take a look at the map, you can see that most of St. Louis Park is closer to my office than many parts of Minnetonka.\",\"sameAs\":[\"http:\/\/www.mn-bankruptcy.com\"],\"url\":\"https:\/\/mn-bankruptcy.com\/blog\/author\/davekelly\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Big Victory for Broke People - Better Call Dave - Bankrupt MN Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/mn-bankruptcy.com\/blog\/big-victory-for-broke-people\/","og_locale":"en_US","og_type":"article","og_title":"Big Victory for Broke People - Better Call Dave - Bankrupt MN Blog","og_description":"The Eighth Circuit Court of Appeals just issued a decision today which fixes one of the numerous rules of bankruptcy law that had been wrong for a long time. They actually did something that makes sense. 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