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Many people go to extreme measure to avoid filing for bankruptcy. There are a number of alternatives that people may consider that can actually be worse in the long run than filing for bankruptcy. Below are a few examples.1. Debt Consolidation Options. There are a number of companies that will offer to consolidate your credit cards and help to improve your credit. Be very cautious here and ask them to explain the entire process to you. Many of the places will tell you to stop making your payments to creditors and direct your payment amounts to the company instead. They will then hold onto this money until it reaches a certain amount and then will negotiate your debt down, sometimes only paying cents on the dollar of what you owe. This can have a number of negative implications. First, your credit will continue to worsen as your bills go unpaid for months. Second, the fees that some of these companies charge are exhorbitant. Third, the difference between what you owe and what they will pay your creditors will be considered taxable income to you. Finally, this is a service that you do not need to pay for. You could hold on to your own money and negotiate the debt down yourself.2. Charge Off of Accounts. Many times debtors are relieved when companies charge off an account or mark it as uncollectable. An important thing to note is that this does not mean that the creditor does not have a legal right to collect. Often times the original creditor will sell the account to another party and that third party may start to harass you about the debt. Also, as mentioned above, any amount charged off is considered "discharge of indebtedness" and is taxable income. For example, if you owe 10,000 to your credit card and they settle for 2,000 the 8,000 written off should be reported on your tax returns the following year. You will be taxed on this money as you are taxed on your income, which may mean that you owe taxes you didn't expect to owe. 3. Ignoring the problem. Creditors will not usually disappear and may even start contacting you at work or contacting your friends and family members. Ignoring the problem will not make it any better.If you have questions, or would like to schedule a free consultation, contact a St. Louis Bankruptcy Attorney Today.
Jordan E. Bublick is a Board Certified Consumer Bankruptcy lawyer (American Board of Certification). The law firm was established in 1985. Practice is limited to bankruptcy law.
Jordan E. Bublick is a graduate of New York University School of Law (LL.M., 1984), Ohio State University College of Law (J.D., 1983), and Brandeis University (B.A., 1979)
North Miami Office - 11645 Biscayne Blvd., Suite 208, Miami, Florida (305) 891-4055
Broward Telephone - (954) 424-6618
Chapter 7 personal bankruptcy is generally used to discharge your dischargeable debt including credit cards, medical bills, and unsecured loans.
Chapter 13 bankruptcy is generally used to reorganize your financial affairs while under the protection of the Bankruptcy Court. Chapter 13 bankruptcy is often used to stop a mortgage foreclosure and to catch the payments up-to-date.
Chapter 11 bankruptcy is also used to reorganize your financial affairs while under the protection of the Bankruptcy Court. Chapter 11 can be used by individuals or corporations.
Practicing in Miami-Dade, Broward, and Palm Beach Counties, including W. Palm Beach, Boca Raton, Ft. Lauderdale, Coral Springs, Miramar, Pembroke Pines, and Plantation.Jordan E. Bublick, Miami and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983
Unfortunately going through divorce is not just an emotional roller coaster but it's also a financial disaster. It has been my experience that most married couples rely heavily on two incomes. Losing an income makes it impossible to maintain their household when dealing with separation or divorce. Yes, Family Court will grant you some relief once the divorce decree has been entered and the debts have been divided, however, most individuals will not be able to pay the debts they have been ordered to pay. In order to relieve one from these debts and the legal liability that goes along with these debts many individuals opt to file bankruptcy (Chapter 7 or Chapter 13) either before or after they have filed for divorce. Bankruptcy and Divorce seem to go hand in hand when talking about a fresh start. Not only are these individuals starting a new chapter in their lives but are starting it debt free or at the very least with their debt under control. Filing for bankruptcy after a divorce may make it possible for you to save your home or keep your vehicle (Chapter 13). In order to get your new life headed in the right direction it's important that you reevaluate your finances and make the necessary adjustments. Bankruptcy may be your answer for a fresh start and a new outlook.
A Chapter 13 Bankruptcy generally lasts for a period of five years. As we all know a lot can change in a five year period. Over the course of five years debtors may marry, have children, need to purchase a vehicle, or even suffer damage to a home or vehicle already owned. If a debtor becomes entitled to insurance proceeds while in bankruptcy he should notify his attorney as soon as possible.
The general rule is that if a debtor becomes entitled to any sum of money it must be turned over to the bankruptcy trustee to be distributed to creditors. Common sources of money that need to be disclosed, and potentially turned over, include money or property from an inheritance, tax refunds, insurance proceeds and so on. As a rule of thumb, if you receive any money you should inform your attorney.
If you want to keep the money that you are entitled to you can file a motion to retain the proceeds. This will have to be submitted to the court and it is generally set on negative notice. This means that your attorney will submit your motion to retain and if no one objects to the motion within 21 days you will be able to keep the money received. Any number of people may object, including the trustee and/or one of your creditors.
It is important to note that if you receive insurance proceeds for property, i.e. a vehicle, and there is a total loss any existing loan balance has to be paid off before any funds would be released to you if your motion to retain is successful.
If you would like to retain insurance proceeds your attorney will need a number of things to prepare your motion to retain. Your attorney will need to know how much money you will be receiving for the property. If the property is not a total loss and just needs repairs your attorney will need to know the estimated cost of repairs. It is best if you can provide a written estimate from a qualified individual to your attorney to file with the motion. If the property is a total lose (i.e. a vehicle that you are not keeping) your attorney will need to know how you intend to spend the money received. Perhaps you need to replace your vehicle. Again, it is best to provide written figures for how you will spend the money. If you would like to purchase a new car with a loan your attorney will also need to submit a motion to incur debt.
Please keep in mind that this process will take time. The motion will be submitted and it will be at least 21 days before a decision is made. From there your attorney will have to submit an order and the judge will need to sign the motion.
If you have questions, or would like to set up a free consultation, contact a St. Louis Bankruptcy Attorney today.
Bankruptcy Lawyer Miami - Practice Limited to Bankruptcy
Jordan E. Bublick Attorney at Law is a Board Certified Specialist in Consumer Bankruptcy Law (American Board of Certification) with offices located at 11645 Biscayne Blvd., Miami, Florida and South Dade Brand at 10700 Caribbean Blvd., Miami, Florida. Jordan E. Bublick limits his practice to person and businesses in Chapter 7, Chapter 13, and Chapter 11 bankruptcy. The firm of Jordan E. Bublick, P.A. was established in 1985. The firm offers a free initial consultation.
Chapter 7 bankruptcy allows a person to discharge most types of debt while keeping his "exempt" property.
Chapter 13 bankruptcy allows a person to propose a plan of reorganization. It is often used to stop a mortgage foreclosure and to catch the mortgage payments up-to-date. Chapter 11 is used by individuals and businesses to reorganize their debt under a chapter 11 plan.Jordan E. Bublick, Miami and Palm Beach, Florida, Attorney at Law, Practice Limited to Bankruptcy Law, Member of the Florida Bar since 1983
Myths and Truths About Chapter 7 Bankruptcy, Part IVMyth: A debtor can dismiss a Chapter 7 bankruptcy if the Trustee finds assets.Truth: In a Chapter 7 bankruptcy, it is not possible to voluntarily dismiss your case if the Trustee finds assets. Generally, a debtor can voluntarily dismiss their case before discharge if they change their mind about filing the bankruptcy; however, this is not the case if the Trustee has found assets. When a bankruptcy is filed, the debtor has an obligation to list any property they have at the time of the filing and the value of said property, as well as any pending insurance claims, inheritance, and personal injury claims, etc. If the Trustee determines that the personal or real property has a higher value than the debtor originally assessed or if the Trustee finds assets that were not listed in the bankruptcy petition, the Trustee can seize the assets if they are not exempt. In order to prevent this from happening, many debtors request to voluntarily dismiss their case without discharge so they may retain their assets. This is not a possibility. If a Trustee finds unexempt assets in a Chapter 7 case, debtors are unable to dismiss their case voluntarily. That is why it is so important for debtors to accurately disclose their property and assets (present and future) to their attorney and on their bankruptcy petition before filing. Myth: If a debtor does not list something on the bankruptcy petition, the Trustee will not find out.Truth: It is essential for debtors to disclose all income, assets, and property, as well as the accurate value, on their bankruptcy petition and to disclose this information to their attorney. It is also important for debtors to list any transfers, money paid to family members or friends, payments to creditors, etc. The trustee completes their own investigation into the debtor's petition. They can check what property the debtor has and the value of the property. They can also find out about transfers of property and the recipients of transferred property. Trustees can require an appraisal of real or personal property if they believe the value listed is too low. They sometimes even wish to view the property personally. They can also look at bank accounts to determine if money was taken out or given to someone else or if income was earned but not reported. The Trustee will ask debtors questions under penalty of perjury. For this reason, it is essential to disclose fair, honest, and accurate information on the bankruptcy petition and schedules. If you have any questions, please contact a St. Louis or St. Charles bankruptcy attorney.
Myths and Truths About Chapter 13 Bankruptcy, Part IVMyth: If a house is jointly owned and in foreclosure, both parties on the loan must file Chapter 13 bankruptcy in order to save the house from foreclosure.Truth: Both parties on the loan do not need to file bankruptcy in order to save the house from foreclosure. It is very common for a house to be owned jointly, especially by a married couple. Many people think that because both names are on the loan, both people on the loan need to file bankruptcy in order to save the house from foreclosure. Actually, as long as one party on the loan files, that is enough to protect the house from foreclosure and implement the automatic stay as long as the bankruptcy is filed before the foreclosure. It may be beneficial for both parties to file together if they have other debt to include in the bankruptcy. In some cases, however, the house may be the only debt the parties possess or the additional debt may only be in the filing debtor's name. In that case, some people prefer to have only the one party on the loan file in order to preserve the credit of the other person. If the house is later surrendered through the bankruptcy or foreclosed, the second person on the loan may want to consider filing bankruptcy because they would then be responsible for the deficiency on the property. Otherwise, only one party would need to file bankruptcy.Myth: If the creditor isn't being paid through the bankruptcy, it is because the Trustee is choosing not to pay them.Truth: If a creditor is not being paid through the Chapter 13 bankruptcy, it likely due to reasons outside the Trustee's control. When a bankruptcy is filed, the creditors receive notice of the bankruptcy and are given a deadline in order to file a proof of claim. The proof of claim informs the Trustee of the amount due to the creditor so they know how much should be in the plan to pay them. Upon review of the proofs of claim, the Trustee makes sure the plan is feasible and pays the creditor a certain amount per month through the life of the plan. If the creditor does not file a proof of claim, the Trustee cannot pay them. Therefore, if the creditor is not being paid, there is a good chance there is no proof of claim filed. In that case, the debtor's attorney can call the creditor to remind them or file a proof of claim on the creditor's behalf to guarantee payment by the Trustee. If you would like more information, please contact a St. Louis or St. Charles bankruptcy attorney.
When considering filing for bankruptcy there are a number of things to consider. Some of them will be related directly to paperwork, but many of the factors will be life decisions that might not seem related to your bankruptcy on its face. One such example is the decision to relocate to a different state. Moving within a state will not cause you any problems with filing, but if you are retaining an attorney you may want to see if that attorney will be able to handle your case after your relocation. If you are staying in the same general area it shouldn't be a problem, but if you are moving a considerable distance you might be outside of your attorney's practice area or even outside of where your attorney is licensed to practice. If you are considering filing for bankruptcy and may be moving out of a state there are a number of factors to consider. First, you must be a resident of a particular state on the day of filing to file in that state. So, if you retain an attorney in Missouri and then move to Kansas before your case is filed you will have to find other representation. Not only do you have to live in the state on the day of filing, but you must have lived in the state for the greater part of the 180 days leading up to bankruptcy. Basically, you must live in the state for 91 days or more prior to filing. If it is imperative that you file right away you may want to consider filing in your current home state prior to moving out of state. If you are considering filing for bankruptcy in a state that you have not lived in for at least two and a half years you will want to notify your attorney of this as soon as possible. This does not mean that you cannot file, it simply means that the exemptions you will use might be different that the state you live in. This is not a problem, and does not mean that you cannot file, it just means that your attorney may have to do a bit of research to determine what exemptions apply. Depending on the circumstances you may use the exemptions from a state of prior residence or federal exemptions. If you have not lived in the state for at least two and a half years your exemptions will be based on the preference of the state that you lived in for the greater part of the six months prior to the two years prior to filing for bankruptcy.If you have questions, or would like to set up a consultation, contact a St. Louis Bankruptcy Attorney Today.
An American tradition is to take the family to the beach for Memorial Day weekend, but if you or your spouse is about to file bankruptcy, do NOT charge this vacation on your credit card. Your credit card company will heavily scrutinize any charge made within 90 days of filing bankrupcy, so my typical advice is to not even use your credit cards within 90 days of filing; however, there is nothing inherently (or legally) wrong with living your life and supporting your BASIC needs on credit. The problem comes from section 523 of the bankrupcy code, which provides that any amount owed to a single creditor over $600 for a luxury good or service within 90 days of filing is presumed to be nondischargeable. Nondischargeable means that the debt will not be wiped out by your bankruptcy discharge. It does not matter whether you are filing Chapter 7 bankrupcy or Chapter 13 bankruptcy, the amount you charge for a luxury vacation (or almost any heavy travel) will be determined nondischargeable
What If I Pay OFf the Credit Card?
Many people may think they are in the clear by simply paying off the amount charged for the vacation, but this payment, since it is likely going to be more than $600, could be viewed as a preferential transfer by the trustee. If the trustee does attack this payment by suing your creditor for the amount received, the creditor can then sue you in bankruptcy court (called an adversary proceeding) for the amount taken by the trustee. Often this will not happen, as the amount that the trustee could recover for the “preferential transfer” is not worth the cost of litigating with the credit card holder you attempted to pay off.
My Advice
If you really have to take a vacation right before filing, then you would have had to save for it or have the non-filing spouse charge it on his or her credit card. While not my official advice, I understand some people do not want to give up a family tradition because one spouse has to file bankruptcy.
Many people turn to bankruptcy for help when they are in over their heads financially. Bankruptcy can take care of a number of debts, including unsecured creditors. However, there are some types of debts that are not dischargeable through either a Chapter 7 or Chapter 13 Bankruptcy. The list below is intended as guidance, not as an all-inclusive list. If you have specific questions you should contact your attorney. Some examples of non-dischargeable debts are as follows:1. Domestic support obligations. These may include any child support, alimony, or any other payment ordered by the court that related for family care and support. This can category would also include divorce and separation agreement settlements.2. Student loans are not generally dischargeable. However, in very extreme cases they may be dischargeable if there is an extreme hardship. Generally this will be limited to cases where the debtor is unable to work or pay the student loans for some reason out of the debtor's control. This must generally be a permanent issue, not a short term issue. For example, if the disability is short term and you will be able to return to work in a few months your loans will not be discharged.3. Debts owed to government agencies. This can include traffic tickets, fees associated with criminal charges, criminal restitution, and taxes. In some circumstances, where taxes were timely filed (or filed at least two years prior to filing the bankruptcy) and they are more than three tax years old, the debt may be dischargeable. 4. Debts related to personal injury or death caused while the debtor was under the influence of drugs or alcohol. However, fees, fines, and settlements from car accidents not caused while driving under the influence are generally dischargeable.5. Any debt related to fraud or misrepresentation, including embezzlement, larceny, or failure to perform certain fiduciary duties. Keep in mind that it can be considered fraud to not list a creditor on your bankruptcy petition and schedules. If the creditor does not get notice the debt may not be discharged. 6. Debts incurred very close to filing for bankruptcy, particularly for luxury goods or services. When anticipating filing for bankruptcy debtors should not make extravagant purchases to avoid any potential issues. If you are unsure about this you should speak with your attorney and explain your intentions and current situation.If you have questions, or would like to schedule a consultation, speak with a St. Louis Bankruptcy Attorney Today!
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