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You Will Make It Through Your Bankruptcy; Don’t Panic For many people the thought of filing for bankruptcy is devastating. If it turns out that you need to file and you simply cannot pay off your debt, listen to the advice of your bankruptcy attorney and don’t panic. There are several panic mode incidents which+ Read More
The post You Will Make It Through Your Bankruptcy; Don’t Panic appeared first on David M. Siegel.
The federal Consumer Financial Protection Bureau (the "CFPB") announced today that it has taken action against a medical debt collection company in regard to the manner it handled consumer credit reporting disputes and consumer debt collection rights. The CFPB reports that the collection company's practices potentially affected the credit scores of thousands of individuals. The CFPB is ordering the company to correct its business practices and to provide over $5.4 million in relief to harmed consumers.
The CFPB notes that companies that "collect medical debt and supply this information to credit reporting agencies have a significant impact on consumers' credit scores." It reports that more than 43 million American have medical debt that adversely affects their credit reports.
The CFPB found that this company mishandled consumer credit reporting disputes by "failing to investigate and respond to consumers within the 30-day timeframe required under the law." The CFPB order charged the company with violating the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
The federal Consumer Financial Protection Bureau (the "CFPB") announced today that it has taken action against a medical debt collection company in regard to the manner it handled consumer credit reporting disputes and consumer debt collection rights. The CFPB reports that the collection company's practices potentially affected the credit scores of thousands of individuals. The CFPB is ordering the company to correct its business practices and to provide over $5.4 million in relief to harmed consumers.
The CFPB notes that companies that "collect medical debt and supply this information to credit reporting agencies have a significant impact on consumers' credit scores." It reports that more than 43 million American have medical debt that adversely affects their credit reports.
The CFPB found that this company mishandled consumer credit reporting disputes by "failing to investigate and respond to consumers within the 30-day timeframe required under the law." The CFPB order charged the company with violating the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
What types of bankruptcy are available?
Chapter 7 and chapter 13 are the two chapters most often used by the average consumer. Chapter 7 is typically used by those with little non-exempt property and less than median income. Chapter 13 is used by consumers who desire to propose a chapter 13 plan of reorganization to provide for their various debt over a 3 to 5 year plan of reorganization.
How does a person decide which chapter is best?
Various items need to be considered in determining whether to file for bankruptcy under chapter 7 or chapter 13. One item to be reviewed is the "mean test" which was added to the bankruptcy code in 2005. If a person has substantial property in excess of that which is "exempt," filing under chapter 13 would likely be appropriate. Also is a person is behind with their mortgage or in a foreclosure, they would consider using chapter 13 to propose a plan to reinstate their mortgage.
Can a future employer consider my bankruptcy in a hiring decision?
Goverment employers may not deny employment to those who file for bankruptcy. Private employers may not terminate an employee because of a bankruptcy filing. Although technically a private employer can refuse to hire a person on account of a bankruptcy filing, often the discharge of debt makes a person a better candidate with his financial situation resolved.
May a person file for bankruptcy for just come of his debt?
A person is required to list all of his or her debt in the bankruptcy case. Those debts that are dischargeable will be discharged. A person though is free to voluntarily repay any debts if they should so desire.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
What types of bankruptcy are available?
Chapter 7 and chapter 13 are the two chapters most often used by the average consumer. Chapter 7 is typically used by those with little non-exempt property and less than median income. Chapter 13 is used by consumers who desire to propose a chapter 13 plan of reorganization to provide for their various debt over a 3 to 5 year plan of reorganization.
How does a person decide which chapter is best?
Various items need to be considered in determining whether to file for bankruptcy under chapter 7 or chapter 13. One item to be reviewed is the "mean test" which was added to the bankruptcy code in 2005. If a person has substantial property in excess of that which is "exempt," filing under chapter 13 would likely be appropriate. Also is a person is behind with their mortgage or in a foreclosure, they would consider using chapter 13 to propose a plan to reinstate their mortgage.
Can a future employer consider my bankruptcy in a hiring decision?
Goverment employers may not deny employment to those who file for bankruptcy. Private employers may not terminate an employee because of a bankruptcy filing. Although technically a private employer can refuse to hire a person on account of a bankruptcy filing, often the discharge of debt makes a person a better candidate with his financial situation resolved.
May a person file for bankruptcy for just come of his debt?
A person is required to list all of his or her debt in the bankruptcy case. Those debts that are dischargeable will be discharged. A person though is free to voluntarily repay any debts if they should so desire.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
The bankruptcy code's "means test" looks to the size of the debtor's "household." The bankruptcy code does not define what constitutes a "household."
Census Bureau Definition
Some bankruptcy courts hold that the Census Bureau's definition of "household" provides the most appropriate definition of household for use in the means test. The Census Bureau defines "household" as "all of the people, related and unrelated, who occupy a housing unit"such as a house, apartment, group of rooms or single room that is intended for occupancy as a separate living quarters." These Courts hold that the word "household" and not "family" and did not intend to limit household size to only household members related by blood, marriage or adoption.
Internal Revenue Manual Definition
In some cases, parties argue that the Internal Revenue Manuel's ("IRM") definition of "household"should be used. The IRM does not define "household" but indicates that the number of persons allowed under the national standard expenses should generally be the same as the number of dependents on the taxpayer's latest tax return.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Miami Personal Bankruptcy Lawyer Jordan E. Bublick has over 25 years of experience in filing Chapter 13 and Chapter 7 bankruptcy cases. His office is centrally located in Miami at 1221 Brickell Avenue, 9th Fl., Miami and may be reached at (305) 891-4055. www.bublicklaw.com
The bankruptcy code's "means test" looks to the size of the debtor's "household." The bankruptcy code does not define what constitutes a "household."
Census Bureau Definition
Some bankruptcy courts hold that the Census Bureau's definition of "household" provides the most appropriate definition of household for use in the means test. The Census Bureau defines "household" as "all of the people, related and unrelated, who occupy a housing unit"such as a house, apartment, group of rooms or single room that is intended for occupancy as a separate living quarters." These Courts hold that the word "household" and not "family" and did not intend to limit household size to only household members related by blood, marriage or adoption.
Internal Revenue Manual Definition
In some cases, parties argue that the Internal Revenue Manuel's ("IRM") definition of "household"should be used. The IRM does not define "household" but indicates that the number of persons allowed under the national standard expenses should generally be the same as the number of dependents on the taxpayer's latest tax return.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Colonial Bankruptcy Laws
In the American colonial era, many of the states had bankruptcy and insolvency laws. Imprisonment for debt was commonplace.
Bankruptcy Act of 1800
The first federal bankruptcy law was passed by Congress in 1800, eleven years after the ratification of the United States Constitution. This Bankruptcy Act was designed to be a temporary measure and was repealed after only three years.
This act was virtually a copy of the existing English law, which was the 1732 Statute of George II. The English laws maintained a distinction between "bankruptcy laws" and "involvency" laws. Bankruptcy law generally involved involuntary proceedings against business trader while involvency law addressed concerns of debt relief generally, including the release from debtor's prison.
Bankruptcy Act of 1841
Following the financial Panic of 1837, the Bankruptcy Act of 1841 was passed. It provided for both involuntary and voluntary bankruptcy. This act allowed a person some basic exemptions of property, but state exemptions were not available. Although the act worked well, creditors considered it a failure and it was repealed in 1843. The 1841 Act though was important in that it established the allowance of voluntary bankruptcy for all debtors.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
Colonial Bankruptcy Laws
In the American colonial era, many of the states had bankruptcy and insolvency laws. Imprisonment for debt was commonplace.
Bankruptcy Act of 1800
The first federal bankruptcy law was passed by Congress in 1800, eleven years after the ratification of the United States Constitution. This Bankruptcy Act was designed to be a temporary measure and was repealed after only three years.
This act was virtually a copy of the existing English law, which was the 1732 Statute of George II. The English laws maintained a distinction between "bankruptcy laws" and "involvency" laws. Bankruptcy law generally involved involuntary proceedings against business trader while involvency law addressed concerns of debt relief generally, including the release from debtor's prison.
Bankruptcy Act of 1841
Following the financial Panic of 1837, the Bankruptcy Act of 1841 was passed. It provided for both involuntary and voluntary bankruptcy. This act allowed a person some basic exemptions of property, but state exemptions were not available. Although the act worked well, creditors considered it a failure and it was repealed in 1843. The 1841 Act though was important in that it established the allowance of voluntary bankruptcy for all debtors.Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
With certain exceptions, the filing of a bankruptcy petition immediately and automatically puts into place a court order of a stay of collection action applicable to all entities against actions by creditors against the person who filed for bankruptcy relief as well as his property. The bankruptcy stay remain in effect until it is terminated by the bankruptcy court or as otherwise provided by the Bankruptcy Code.
Chapter 13 Co-Debtor Stay
In a chapter 13 case, the automatic stay is also effective against a person who is a co-signer on consumer debt.
Violations of the Automatic Stay
Most court hold that actions taken in violation of the automatic stay are void.
Jordan E. Bublick - Miami Bankruptcy Lawyer - Kendall & Aventura Offices - (305) 891-4055 - www.bublicklaw.com
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