Jacksonville Bankruptcy Lawyer Blog

The average student loan debt for a four-year degree is over twenty-three thousand dollars. Many people understandably want to get rid of this debt. However, student loan debt is very difficult to discharge in bankruptcy.

Generally, student loan debt is nondischargeable unless the debtor can prove he or she would suffer an "undue hardship". Whether or not you are suffering an undue hardship is up for the court to decide, but it's important to realize that this is a relatively high standard to show. Courts often look at whether you made a diligent effort to pay the debt, find a good paying job, and reduce your living expenses. In actual practice, almost the only way that you are going to get your student loans discharged through bankruptcy is if you are permanently disabled, with no opportunity or ability to get a job to repay your student loans.

If you are in debt and are thinking of filing bankruptcy, contact a Jacksonville Bankruptcy Attorney to discuss what debts can ben discharged and whether filing is right for you.

If the debt was properly listed on your bankruptcy schedules and subsequently discharged, the creditor no longer has the right to collect that debt from you. If the creditor is continuing to harass you, you should have your Jacksonville Bankruptcy Attorneywrite a cease and desist letter to the creditor. This usually cures the problem and the creditor will stop contacting you. If, however, the creditor continues to try and collect the debt, this is illegal and your Jacksonville Bankruptcy Attorney will file a complaint against them for possible discharge violations, FDCPA violations, FCCPA violations, and/or FDUTPA violations. Often times attorneys will take these cases on a contingency basis, meaning that you and the attorney would each get a share of the monies recovered, so that you would not have to pay any legal fees up front. If a creditor is harassing you, contact a Jacksonville Bankruptcy Attorney today to discuss your options.

In a Chapter 13 bankruptcy, a Jacksonville Bankruptcy Attorney might be able to strip a lien for you. This means that the lien would be considered unsecured, so that a creditor cannot take your collateral if you do not pay it. Most often, this is done with a second mortgage. If you owe more on your first mortgage than the house is worth, you can strip the second mortgage in a Chapter 13 bankruptcy. Then, the debt becomes unsecured. The amount of money you must pay to unsecured creditors is determined by your means test and the amount of unexempt property that you have. So any amount that you owe to unsecured creditors beyond this amount simply gets discharged in the bankruptcy and you do not owe it anymore. In saying, the amount you must pay to unsecured creditors through your Chapter 13 bankruptcy is not dependent on the amount of money you owe to unsecured creditors or the amount of any unsecured claims in your case. So it is of great value to you if you can strip the second mortgage in your bankruptcy and no longer owe this debt. If you would like to learn if you are eligible for your second mortgage to be stripped, contact a Jacksonville Bankruptcy Attorney today to discuss your particular situation.

One of the first questions new clients ask me, as a Orange Park Bankruptcy Attorney, is if filing for bankruptcy will negatively affect their credit. There is no completely clear answer to this question, but I tend to lean towards yes, it will affect your credit.

A bankruptcy will appear on an individual's credit report for ten years. However, the odds of obtaining credit after a bankruptcy discharge are very good. In fact, some credit card companies target individuals right after a bankruptcy discharge because the credit card companies know they have a clean slate.

To learn more about bankruptcy and the possible effects on your credit contact an Orange Park Bankruptcy Attorney today to schedule a free consultation.

In the majority of Florida bankruptcy cases including those in Jacksonville bankruptcy court, debtors do not have to appear in court for every hearing. However, debtors do have to attend a proceeding called the "meeting of creditors" or a "341 meeting". At this meeting the debtor meets with the Florida bankruptcy trustee and any present creditors (who rarely attend). In Jacksonville the trustee and any present creditors ask the debtor a few questions about the financial documents the debtor filed with the court. The process takes just a few minutes and is normally pain-free if you are prepared for the questions and have discussed your answers with a Jacksonville Bankruptcy Lawyer.

The only time the debtor may have to appear in court is if a creditor or the bankruptcy Trustee files a motion or an adversary action, or if the debtor's Jacksonville Bankruptcy Lawyer chooses to dispute a debt.

Normally these hearings are not included in a standard bankruptcy fee and you should discuss the costs with your Jacksonville Bankruptcy Lawyer.

Should you be considering bankruptcy contact a Jacksonville Bankruptcy Lawyer today to schedule a free consultation.

There are many reasons that it would be advantageous to file for bankruptcy, but here are some of the most common reasons:

1. The first reason to file for bankruptcy is to stop a foreclosure sale. Filing for bankruptcy immediately stops a halts a foreclosure suit against you. This can give you time to reorganize your finances, try to sell your home, negotiate a modification, or find another place to live. Your chapter 13 Plan can let you catch up on your arrearages over a 5-year time span and so cure your default. If your home has been foreclosed upon, bankruptcy might be a good option for you.

2. Filing for bankruptcy not only stops a foreclosure suit, it halts almost all legal actions taken against you, such as a garnishment or auto repossession. If your auto is in danger of being repossessed, filing for bankruptcy will keep the creditor from doing so. You can value your auto in the bankruptcy and pay only fair market value to the creditor. This means that if you owe $20,000 on your auto and it is only worth $10,000. you can pay the $10,000 to the creditor through your bankruptcy and own the vehicle outright after your Plan is completed.

3. If debt collectors are hounding you too much, filing for bankruptcy can help. Immediately upon filing, creditors must stop from trying to collect the debt. This means the harassing phone calls and letters will stop. For most, this is a big relief.

4. If you are simply behind in your bills and need a chance to catch up or for the debts to be discharged altogether, bankruptcy probably is a great option for you. Some people are just too in debt and need a fresh start. Bankruptcy can provide this to you.

5. If you would like to surrender your property to the creditor and not be liable for any deficiency amount, bankruptcy will allow you to do this. If you surrender the property back to the creditor outside of bankruptcy, the creditor can almost always sue you for the deficiency amount (the difference in what you owe on the property and what they can sell the property for). If you do the surrender through the bankruptcy, the creditor cannot come after you for this money.

These are just some of the reasons that filing bankruptcy might be in your best interest. There are many more, and every case is different. To schedule a free consultation with a Jacksonville Bankruptcy Attorney, call 904-685-1200 today.

Many people considering bankruptcy have religious concerns and wonder if they can still be a good Christian or Jew and simultaneously file bankruptcy. Very few people know that the origins of bankruptcy actually come from Deuteronomy 15:1-2 which reads:

"At the end of every seventh year you are to cancel the debts of those who owe you money the Lord himself has declared the debt canceled."

This is the reason why people can only file a Chapter 7 bankruptcy every eight years (eight years being the end of the seventh year). To take things further, the United States Bankruptcy Code permits a substantial tithe contribution to qualified charities if made under certain circumstances.

We at Apple Law Firm have lawyers who are members of the Christian Lawyer Directory should you have a bankruptcy question, or if you would like to discuss a consumer law issue with a Jacksonville Bankruptcy Lawyer, call 904-685-1200 today.

When people consider bankruptcy they often wonder if they'll be able to keep their car, home or even personal belongings. Fortunately, the bankruptcy laws are designed to help you get a fresh start and in the spirit of a fresh start they allow you to keep more than the shirt on your back with "Exemptions" i.e. property that you'll be able to keep through the bankruptcy.

Exemptions come in two forms: State or Federal. Once you've lived in Florida for two years you must use our state exemptions. If you haven't lived here quite that long you will need to use either your previous state's exemptions or the federal exemptions.

Every state that has opted to create their own exemptions has it's own nuances. For example, a bankruptcy debtor in Texas is allowed to keep a gun as well as a certain amount of homestead property. Maine allows a debtor to keep a wedding ring of unlimited value and one of each type of farm equipment needed to raise and harvest crops. Florida allows you to keep $1,000 in vehicle equity, $1,000 in personal property (beds, jewelry, televisions, etc.) and either $4,000 of additional personal property or the benefit of a homestead of any value. Back when homes were worth more than was owed on them, the unlimited homestead exemption was a huge benefit to people in bankruptcy. The unlimited homestead allows you to file a Chapter 7 bankruptcy, keep a three million dollar homestead and discharge three million dollars in credit card debt. Unfortunately, not a lot of people have three million dollars in household equity these days. In fact, as stated in our Jacksonville Report Rate of Florida Mortgages Underwater Down, 46 percent of home-owners currently owe more on their mortgages than those homes are worth. As a result, more people than ever are entering bankruptcy with homes that have no equity at all. When choosing between a house with no equity and keeping an extra $4,000 in personal property, the right decision is not always clear. Economically, it makes sense to take the $4,000 and give up the house, but for many people a home means more than bare dollars and cents. Fortunately, a new case from the Florida Supreme Court Osborne v. Dumoulin allows some people who have filed bankruptcy to keep both the $4,000 exemption for personal property and keep their homestead. This gives them the best head start in their life after bankruptcy without having to move out and it helps keep their children in the same school district.

If you have questions about exemptions, or if you would like to discuss a bankruptcy law issue with a Jacksonville Bankruptcy Lawyer, call 904-685-1200 today.

Ray Guy, who used to play for the Oakland Raiders, auctioned his Super Bowl rings as part of his bankruptcy case. Guy won 3 Super Bowls throughout his career, in 1976, 1980, and 1983. Guy had filed for bankruptcy in Georgia in April 2010.

You may be wondering if you must give up your personal property if you file for bankruptcy. You might. If you have any unexempt personal property, you will either have to surrender that property or buy back its value from the trustee. To see if your personal property is exempt, call a Jacksonville Bankruptcy Lawyer at 904-685-1200 to discuss your options.

Marika Tolz, a trustee in southern Florida, was sentenced on August 10, 2011 to 81 months in prison. Tolz was found guilty of wire fraud conspiracy. Tolz was a Chapter 7 trustee in Hollywood, Florida, who misappropriated approximately $16 million in funds from cases assigned to her. Ironically, one of the cases she defrauded was that of a Ft. Lauderdale man, Scott Rotstein, who was accused of orchestrating a ponzi scheme that defrauded victims out of a substantial amount of money.

If you feel the trustee in your Chapter 7 or Chapter 13 bankruptcy case is acting inappropriately, contact a Jacksonville Bankruptcy Lawyer to discuss your options and your specific situation.

As of 2005, every debtor who wants to file for bankruptcy must complete two credit counseling requirements. The first class is called credit counseling and must be done within the 6 months prior to filing for bankruptcy. The second class is called debtor education and must be completed after you file for bankruptcy. In a Chapter 7, the debtor education course must be completed within 60 days after the first date set for the meeting of creditors in your case. In a Chapter 13, the debtor education course must be completed before the last payment is due under your Chapter 13 Plan.

If you have a bankruptcy question, or if you would like to discuss a consumer law issue with a Jacksonville Bankruptcy Lawyer, call 904-685-1200 today.

Supreme Court Modifies Means Testing for Certain People

When determining whether you are eligible to file a Chapter 7 bankruptcy, you usually must show that your annual household income is less than that of the average family in your area. The test that makes this determination is informally called the "Means Test", i.e. do you have the means to pay your creditors. Being ineligible for a Chapter 7 would mean considering other Chapters for relief from debt, which may not be as favorable to your financial situation.

For the purposes of the Means Test, your annual income is calculated by taking your last six months of household income and multiplying that amount by two. By looking at your last six months of income, the court is able to estimate your projected disposable income for the next year. Because the Internal Revenue Service (IRS) considers just about any money that comes to you as income, things like disability benefits are included in the calculation of your income. This caused problems for people whose benefits ceased within the six months prior to filing because their income appears to be higher than it will be in the future.

The good news is, that as of June 7, 2010 the United States Supreme Court has ruled that because the Means Test is intended to calculate "projected disposable income", the court may account for changes in income that are known or virtually certain when analyzing your income for means test. So, disability benefits or other temporary income that ceased prior to your filing bankruptcy should no longer be included as income as the loss of those benefits is 'known or virtually certain'.

If you would like to discuss your income and which type of bankruptcy you qualify for contact a Jacksonville Bankruptcy Lawyer or call 904-685-1200 for a free consultation.

Yes, if it is a non-priority debt. Taxes become non-priority debt when 1. the return was due more than 3 years prior to filing the bankruptcy 2. the return was filed at least 2 years before you filed for bankruptcy 3. the tax debt was assessed at least 240 days prior to filing AND 4. you are not guilty of any type of fraudulent behavior, like tax evasion. Also, you cannot have signed a settlement agreement with the IRS. This can be an in-depth analysis, so it is best to have a competent attorney look at your specific situation. To schedule a free consultation today, get in touch with a Jacksonville Bankruptcy Attorney by calling 904-685-1200.

As you probably know, credit rating agency Standard & Poor recently downgraded the United States' credit rating from AAA to AA+. S&P also gave the US a negative outlook, which means S&P could downgrade the US again within the next two years to AA+. S&P is not the only rating agency, however. Moody's and Fitch both left their AAA ratings in tact, but said they might reconsider those ratings at a later date.

But what does this mean to you? Aside from the increased political bickering on TV and in Washington, the downgrade could have some negative side effects for the American consumer.

First, we may see a rise in inflation. This is due in large part to the slowing economy and rising amounts of currency in circulation.

Second, higher taxes might be on the way. As it currently stands, the US receives a very good interest rate on its debt. That could change with our lowered rating. This would mean paying more interest on our debt, which would make our lack of revenue more concerning.

Finally, we may see higher homebuying costs. Fannie Mae, Freddie Mac, and the Federal Housing Administration may see higher interest rates, which may mean higher rates for borrowers in order to balance their increased costs.

It's unclear yet whether any of these possibilities will occur; however, they are something to keep in mind. Here at Apple Law Firm we like to keep abreast of the latest political and economic news to impact the Consumer Law field. If you would like to contact a Jacksonville Bankruptcy Attorney to discuss your consumer law issue, call 904-685-1200 today.

There are two aspects of this question: marrying someone who is currently filing bankruptcy, and marrying someone who has already filed bankruptcy. One thing to keep in mind is that the bankruptcy code allows a person to file individual bankruptcy even if married, so marrying someone who is currently undergoing bankruptcy proceedings isn't necessarily going to drag you into the mix. However, the person in the bankruptcy might have to disclose to the court the new income that marriage will bring into the household.

Whether you're marrying someone currently undergoing bankruptcy or someone who filed years ago, you should know that you both have separate credit scores, so your spouse's bad credit won't kill your good credit just because you tie the knot. As time goes on, your spouse's credit will improve and the bankruptcy will not matter as much.

If you or your new spouse is thinking about filing bankruptcy, you should contact a Jacksonville Bankruptcy Attorney to discuss the ramifications for both you both.

A new law, Florida Statute 222.21, is going to be amended to state that inherited IRA's are exempt property. So if you inherit an IRA from a loved-one or spouse, the trustee will not be able to take that money to pay your creditors. This will be the case even if the deceased lived out of state. And the law is retroactive, so it does not matter if the IRA was inherited before or after the bill becomes law. If you have questions regarding your IRA or other investment property, contact a Jacksonville Bankruptcy Attorney at 904-685-1200 today.

A lot of people give their 16 and 17-year old children cars to drive. But in Florida, a minor child cannot own property. So the car must be titled in the parents' name. If this is the case, this asset might be unexempt property, or at risk of being taken to pay your creditors. However, a recent case from the Southern Division of Florida clarified how one could keep this from happening. The court said that the parent could own a car as trustee for the minor child and keep this asset away from creditors in a bankruptcy. To find out how to hold the car in trust for the child, or for any other bankruptcy questions, contact an Orange Park bankruptcy attorney now to discuss your situation.

No, your will not lose any rights to your child support by filing for bankruptcy. You must disclose in your bankruptcy how much child support you receive. However, this child support is exempt from being taken to in order to pay your creditors (meaning it is exempt property) for any amount reasonably necessary to help support your children.

The child support that you receive is considered income for purposes of the means test. The means test is the mechanism used to determine if you qualify for a Chapter 7 bankruptcy. (If you do not qualify for a 7, you can always file for Chapter 13 bankruptcy if you meet the debt ceiling to do so.)

To find out more about child support in bankruptcy, contact a ">Jacksonville bankruptcy attorney today. We do free consultations, just give us a call at 904-685-1200 to schedule yours today!

First of all, as far as your credit score goes, banks usually report a deed in lieu as a foreclosure. In other words, a deed in lieu will probably have the same effect on your credit score as a regular foreclosure. Further, even if a bank has a deed in lieu, they will likely require you to sign a note saying you will pay them any amount left over if the sale of your home is less than what you owe.

You're probably wondering: What is the advantage of a deed in lieu over a foreclosure? For most people, there isn't one. If you accept the foreclosure, you should ensure your agreement states you will not owe any amount on a potential deficiency sale. Both deeds in lieu and foreclosures will look the same on your credit score, so bankruptcy is also another consideration here.

If you are thinking of filing bankruptcy, contact a Jacksonville Bankruptcy Attorney today. If your home is facing foreclosure, contact a Florida Foreclosure Defense Attorney to further discuss your options.

You must list all of your assets in your bankruptcy, but the trick is getting all the exemptions that you can for your possessions. By saying that your item is exempt means that the creditor cannot take it to pay for your debt. Which items are exempt? This answer varies state by state. Bankruptcy is technically a federal program, as it stems from the US Constitution. However, Congress allows states to opt out of the federal exemptions and make up their own.

You cannot simply pick and choose which items you want to keep out of bankruptcy. In Florida, you can exempt your homestead, certain insurance plans, alimony, child support payments, certain pensions, some of your wages, a certain amount of automobile equity, and a certain amount of your personal property. An Orange Park consumer law attorney will help get you the most exemptions that you are eligible for, letting you keep the most amount of your property. Call us today at 904-685-1200 to discuss your specific case.

The answer to this question depends on what type of bankruptcy you qualify for. You cannot receive a discharge in a Chapter 7 bankruptcy if you have received a discharge in a Chapter 7 in the past 8 years or if you have filed a Chapter 13 within the past 6 years. On the other hand, if you received a discharge in a Chapter 13, you can file a Chapter 13 again in 2 years.

However, you do not want to abuse this process, as there task forces in place to seek out those who do so. Contact a Jacksonville bankruptcy attorney today to see if filing for bankruptcy is beneficial for your situation.

Unfortunately, the answer to this question is yes. Creditors can use something called a "break order", which allows them and the sheriff to go to your house and break in. They can even do this without notifying you beforehand. There are a few exceptions, however: break orders are generally impermissible when only one party in a marriage is filing, for example. Additionally, if you share the home with someone else, your creditors may not be able to enter. A Jacksonville Bankruptcy Attorney will be able to assess your specific situation.

The good news is this doesn't happen very often; it's generally used to intimidate an uncooperative debtor. Further, a judge must issue break orders; the creditor can't simply call the sheriff and ask for some deputies to come break into your home. However, having an attorney may prevent such intimidation tactics. If you are filing bankruptcy, talk with a Jacksonville Bankruptcy Attorney by calling 904-685-1200.

If you've ever seen (or read) Master in Commander, you may recall that the central character was attempting to flee debtor's prison. Debtor's prison was very common for many years, and the question is often asked: can the government put you in jail for owing money to a private party? The answer is no. The United States used to have a Federal prison for unpaid debts; however, it was abolished in 1833. Some states still allow debt collectors to seek arrest warrants for debtors in default, but Florida is not one of those states. Further, the US constitution prevents incarcerating someone simply for owing a debt.

However, if you owe a debt to the state or federal government, you may find yourself in jail. The recent economic downturn has caused thousands of Floridians to owe court fees, and some of them are being jailed -- not for owing a debt, but for "failing to follow a court order".

Defaulting on a debt is rarely a good thing. If you have mounting debt and are unsure of what to do, contact a Jacksonville Bankruptcy Attorney to discuss whether bankruptcy is a good option.

If you and your spouse are still facing piling debt, you may be thinking about bankruptcy. However, since money issues are often the cause of divorce, you may also be thinking about splitting up as well. This dilemma leads to the question: Should you file bankruptcy now, or wait until after you split?

First, you should know that it is possible to file bankruptcy separately even if you are still married. This is often best for couples who know they are about to split and don't think they can work well together during their joint bankruptcy. The rules differ for spouses who are still cohabitating as opposed to those who have separated, so *talk with an attorney to figure out what's best for you.

However, if you and your spouse believe you can work together during the bankruptcy, it might make sense to file bankruptcy before your divorce. Only married couples can file jointly, and it helps keep down numerous costs. Filing bankruptcy prior to the divorce may effect alimony payments and other divisions of assets during the divorce process. Keep in mind, however, it is not always possible to discharge certain spousal payments such as alimony or child support payments in divorce. To find out which situation will be best for you, call a Jacksonville Bankruptcy Attorney.

For example, what if someone thinking about bankruptcy has stock. Can he or she sell that stock before filing bankruptcy and put the money in something else? Generally, if you file bankruptcy, the Court will ask you about your sales of assets in the months prior to filing. They will attempt to see if you have made any fraudulent sales or transfers in an attempt to avoid paying a creditor, during this time and they mainly check to see if you received fair market value for your assets. So, if you sell your stock, you will need to disclose that sale and will need to list the proceeds as an asset.

Further, the court may view your sale as fraudulent in certain circumstances. For example, in Florida there exists an exemption under bankruptcy plans for your homestead. In other words, creditors cannot use the equity in your home to satisfy debts. However, if you have a second home, creditors may use the equity therein to satisfy your debts. Thus the question arises: what if you sell your second home and use the proceeds to pay some (or all) of your mortgage on your primary home?

The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCA) largely prevents these practices. The statute now says you might lose your ability to discharge debts if you transfer property solely to hinder, delay or defraud creditors. Courts are left to determine what constitutes hindrance, delay, or fraud, so lawyers are cautious in encouraging such practices. If you are thinking about filing bankruptcy, contact a Ponte Vedra Beach Bankruptcy Attorney at 904-685-1200 to discuss your options.

Using an example, let's say you have a former judgment against you and are required to pay punitive damages. The answer differs depending on which type of bankruptcy you are filing, whether it's under Chapter 7 or Chapter 13 of the bankruptcy code. For example, damages owed due to drunk driving, willful injuries, and malicious fraud will not likely be discharged under a Chapter 7 plan in Jacksonville. Chapter 13 of the Bankruptcy Code is more liberal and may allow you to discharge these debts; however, there are certain conditions on this general .

Also, punitive damages related to a fraud case will likely not be discharged in any bankruptcy proceeding. To find out if your punitive damage judgment qualifies for discharge, contact a Jacksonville Bankruptcy Attorney today.