Jacksonville Bankruptcy Lawyer Blog

One of the most unfortunate situations I see in bankruptcy cases occurs when a debtor has borrowed money from friends or relatives. In the old days, people headed toward bankruptcy would pay their creditors here and there what they could when they could. Often this would lead to one creditor being paid more than the others. Creditors were right in thinking that this was unfair and so the Legislature created 11 U.S.C. 547 (b)(4)(A) which states that any payment to a creditor made within 90 days of filing can be "avoided" (reversed) if that payment is greater than what the creditor would get from the bankruptcy estate. Further, if the creditor being paid is an "insider", the 90 days is inflated to a full year.

What is an insider? 11 U.S.C. 101(31) defines insiders as relatives, business partners, etc. So, if you owe your parents $3,000 and you're about to file a bankruptcy, know that payments to them within a year of the time of filing can be reversed. This can cause huge family upsets and in the wrong circumstances could lead to a bankruptcy for the parents.

If you want to pay money or transfer property to a friend or relative but you also think you may need bankruptcy protection soon, please contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Tax time is coming soon. Employers are required to get W2s to their employees by January 31st so that they can file their federal income taxes. According to the website Bankrate, 30% of those getting tax returns plan to use it to "pay down debt". Some of those tax returns will be used to fund bankruptcies.

One of the biggest benefits to filing bankruptcy just after receiving your tax return is that you have the opportunity to spend your return on reasonable and necessary things instead of turning it over to the bankruptcy trustee. You see, if a debtor was to file bankruptcy in July, they would have already earned 1/2 of their tax return for that year. The trustee would then ask for half of their tax return once it was received. As long as the debtor spends the return on reasonable and necessary things and then files bankruptcy, the money is both well spent and protected.

While I'd still argue that it's Better to File Your Bankruptcy Before the Holidays, attorney's fees do count as reasonably necessary expenditures which are allowed just before a bankruptcy. Many debtors have difficulty coming up with money to pay an attorney to file their case. A tax return gives them the opportunity to come up with that money in one lump sum. A New Year and hopefully a new financial life with a bankruptcy discharge.

It is important that money spent leading up to bankruptcy not be spent on "luxuries". If you have questions about what constitutes a luxury and would like to plan out your bankruptcy before obtaining your tax return contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Jacksonville has plenty of options when it comes to payday loans, be it "Check 'n Go" or "Advance America", you know they're all over town. A relatively new study out of Vanderbilt University and the University of Pennsylvania suggests that payday loans may actually cause bankruptcies.

Paige Marta Skiba and Jeremy Tobacman both have doctorates from esteemed establishments (UC Berkeley and Harvard respectively) and a 57 page collaborative work titled, "Do Payday Loans Cause Bankruptcy?" attempts to prove that these loans, despite only being for amounts around $300, do in fact cause an increased probability of filing bankruptcy.

The statistics they give are quite telling, for instance, the interest rates given on payday loans are often quoted as being small because they're based on a few days or weeks, however when you amortize a 18% loan over two weeks out to a per annum (yearly) basis, the total interest percentage is actually 468%. It's these high interest loans that Skiba and Tobacman say force some people to file for bankruptcy.

If you find yourself habitually taking out "Payday loans" and can't seem to get out of the hole, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Unfortunately, bankruptcy and foreclosure are often very related issues. Financial troubles leave many homeowners thinking they should simply walk away from their homes, especially if they owe more on the home than it is actually worth.

There may be good news on the horizon. Florida state courts currently have a mediation program that is intended to help homeowners negotiate with their mortgage lender and reach a mutually beneficial agreement. But the program has met a fair amount of criticism as not encouraging honest participation. Parties sometimes fail to show up and don't always follow the terms of the agreement.

The program was a step in the right direction, however, and Florida's federal courts have taken notice. And unlike Florida's state program, the federal program has been very successful so far. It is still a relatively young program, but 90% of those who have used it have been approved for mortgage modifications.

Because it is a federal program, homeowners must first have a reason to be in federal court. The program is based in Chapter 13 bankruptcy for this reason. In other words, a homeowner does not qualify for this federal program unless she first files bankruptcy under Chapter 13.

Not everyone qualifies for Chapter 13, and you should speak with a Jacksonville Bankruptcy Attorney to see if a remedy this available for you.

Plus, the program itself can be complicated and, because it is relatively new, it has not been completely developed. Nor is it available to all Floridians just yet: the program is currently available in Orlando, with immediate plans to move into Manatee and Sarasota counties. It is also now available to Jacksonville residents as well.

Hopefully the program will help lenders and homeowners alike. Lenders will benefit by not having to foreclose on homes that sell for less than they're worth, while homeowners obviously benefit by being able to stay in their homes with lower payments.

If you are considering filing Chapter 13 Bankruptcy contact a Jacksonvile Bankruptcy Attorney today to discuss Chapter 13 and see if this program will benefit you.

Though few Jacksonville bankruptcy filers make a million dollars a year, it is still possible for such a debtor to get a discharge in a Chapter 7 liquidation bankruptcy. In 2005 Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) which instituted all sorts of hoops debtors now have to jump through to successfully file a Chapter 7 bankruptcy. The most common "hoop" is known as the "Means Test".

The Means Test requires under 11 U.S.C. § 707(b) that a debtor whose debts are primarily consumer show that their gross income is less than the average gross income for their family size in their geographic region. Let me say that again in English, "If your debts are mostly from non-business transactions you have to prove to the court that you, your spouse and one kid make less than the average married couple with one kid in Jacksonville." Most people skip over the first part of this paragraph and focus on the income and family size. However, if you can show that your debts are primarily non-consumer or "Business related" debts you can bypass the means test altogether. For example, if you make $1,000,000 a year and you are a family size of one, you far exceed the median income as stated by the IRS, but if you can show that your debts are more business than consumer, you can file Chapter 7 anyway.

This loophole was put into place by Congress to encourage businesses. We've all heard stories of a large percentage of small business failing within their first year. Apparently Congress heard this too and decided to allow business debtors to file Chapter 7 instead of forcing them into a long, costly Chapter 13 to encourage people to take risks and open businesses. Whether it is actually good for the economy is up for debate, but Congress thought so, so we now have the 11 U.S.C. § 707(b) exception to the means test.

If your debts are primarily business related and you have a substantial income, consider your options in Chapter 7 before jumping into a Chapter 13. Contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Before receiving a discharge in bankruptcy, debtors must first take a Debtor Education Course (or it's equivalent) per 11 U.S.C. § 707(b). There are hundreds of Debtor Education providers out there for a variety of prices from free to $50.00. They can be in person, over the internet or telephone. People tend to go for the least expensive one just to get it over with, but I wanted to see what they might get out of such a course so I decided to take a couple of them myself.

A few weeks ago I went to Douglas W. Neway's free debtor education course for Jacksonville's Chapter 13 filers. This class was informative and gave debtors the opportunity to ask questions directly to the trustee's staff, however it was mostly engineered to help debtors get through the Chapter 13 process rather than budget and survive life after the bankruptcy.

Dave Ramsey also provides debtor education. He's energetic, intelligent and best of all, he's been there. Back in the late 80's Dave went through a bankruptcy and has made multiple millions since. His course covers every topic, negotiating purchases, insurance, home mortgage interest, car purchases, credit reports, etc. He even provides short comprehensive quizzes after each section.

The only thing I disagree with in Dave's course is that he states in his conclusion, "Don't rebuild your credit." This is because he recommends that people live using cash only for transactions. Cash only is a good idea because you can never go into debt using this method, however without building credit you'll never get a good mortgage rate either. His of not rebuilding credit would have people continuing to buy milk but never being able to finance the cow. I agree that cash is king, but the right mortgage rate on the right terms is better in the long term than paying rent each month because rent is lost as soon as it's paid where an intelligently planned mortgage payment will build equity over time.

Overall, I'm inclined to suggest both courses for those in a Chapter 13 and Dave's only for those in Chapter 7. The information Douglas Neway's office provides is very valuable and accurate -it's straight from the horses' mouth. Dave's course is also valuable, more so I think than the mere $25 he charges for it.

If you're considering bankruptcy and would like to know your options in debtor education or any related matter, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Jacksonville residents have several options when it comes to dealing with secured assets when filing bankruptcy. They can redeem the property by paying the creditor it's fair market value, reaffirm the debt by offering the creditor the same loan terms or surrender the item by giving it back to the creditor.

Redemption is an attractive choice for debtors because it allows them to pay what a secured asset is worth instead of what they owe on it. There can be a significant savings here as vehicles plummet in value as soon as they roll of the car lot. However, there are two conditions precedent that often get in the way.

First, if the car is being used for personal consumer use, the date of purchase (or refinance), must be longer than 910 days before filing the bankruptcy to redeem. If the car was purchased for business use, there is no waiting period. The second, and more difficult issue, is that the money to pay for the vehicle's value must be paid for at the time of redemption. This is a problem because the debtors are bankrupt and rarely have enough cash to meet the payoff amount.

The unique possibility here comes into play when the case involves a married couple and only one spouse is filing. If the vehicle is financed in the name of the spouse who is filing bankruptcy, the filing spouse may still opt to redeem the vehicle and keep it paying only the fair market value by having the non-filing spouse finance the redemption. Even if the non-filing spouse doesn't have cash in the bank, they could still attempt to get a signature loan and use those funds to finance the redemption. In effect, this is a chance to refinance a vehicle and reduce the principle at the same time. I also want to note that it doesn't have to be a spouse who helps refinance the vehicle -it can be anyone whose willing to put up the cash on behalf of the bankrupt person, so parents and friends can work too.

If you have questions about bankruptcy and would like to set up a free initial consultation, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

When people think of bankruptcy they often think of it as being one thing, a bankruptcy. However there are actually six different "Chapters" in the bankruptcy code, four of which are available to individuals in the United States. The other two being for non-residents who want to file an international bankruptcy case or for a municipality that needs to reorganize.

The most common bankruptcy to file is Chapter 7. Chapter 7 is the liquidation form of bankruptcy. You are allowed to keep a certain amount of exempt property, the remainder of your assets are liquidated and dispersed to your creditors on a pro rata basis. Your unsecured creditors are generally discharged and your case is usually closed in four to five months. This can be limited by how much money you make per month. If you make too much money, you may not be able to file this chapter.

The next most common bankruptcy is Chapter 13. This is a reorganization bankruptcy where your debts are characterized and given priority based on those characterizations. Debtors in this kind of bankruptcy have to make payments toward their unsecured debts of their disposable monthly income for three to five years. There is a so called, "debt ceiling" to file this kind of bankruptcy, i.e. if you owe too very much money, you cannot file.

Chapter 12 is a special bankruptcy available only to fishermen and farmers. It works much the same as Chapter 13, but has an even higher debt ceiling (multiple millions).

Finally, Chapter 11 is a different form of reorganization that has no debt ceiling or income limitation, however it does require that your creditors vote on your repayment plan based on how many of them there are and how much is owed to them individually. This is the most expensive chapter to file and is typically associated with businesses and Hollywood celebrities.

Finding out which chapter may be right for you is not always a simple task as some chapters deal with debts differently than others. contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 and we can talk about these differences during a free initial consultation.

George Sadorus could have been more careful when he hired an attorney over the internet to file his bankruptcy case. However he really should have been suspicious when his attorney told him to lie to the Trustee about why he could not attend his 341 Meeting of Creditors.

Sadorus was advised by a paralegal that $8,000 he had in a bank account would be exempt in his bankruptcy. His attorney later filed his case not disclosing the account holding the $8,000 because the paralegal hadn't informed the attorney of the account. Once the attorney realized his mistake, he advised the client to not attend the mandatory 341 hearing and to lie about his reasons for not attending. The theory was that if the client's case was dismissed, he could spend the money on reasonable and necessary living expenses and then refile.

The attorney then refiled the case without discussing whether any funds were remaining in the client's account. $5,000 remained in the account when case #2 was filed. This time the client attended the 341 hearing, disclosed to the trustee what had gone on and fired his attorney. The trustee, surprised by the revelation sued the debtor for the contents of that account as well as the lawyer for sanctions and discouragement (refund) of his fee. The attorney was suspended from practicing law in that state upon the condition that he take educational courses in ethics and general practice and was forced to return to the debtor his retainer fee.

Unfortunately, because the retainer fee was returned to the client while in bankruptcy, the money became property of the estate and was subject to collection for the benefit of the debtor's creditors. So, because the debtor chose an attorney who gave him poor advice and then followed that poor advice by lying, he lost the $5,000 in his account and lost the $1,000 he'd paid the attorney (he paid it, had it returned, then had it garnished for the estate). For more information, see In Re Sadorius.

We all would be tempted to hire the least expensive attorney we can find, but all to often we get what we pay for, which can sometimes cost us more than we anticipated. If you are considering bankruptcy and want to meet with an attorney who you can shake hands with and trust, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Florida was hit harder than most states when the recession of 2007 hit. The so named, "Middle District" being the third highest rate in the nation from mid-2010 to mid-2011.

As a result, it's no surprise that Trailer Bridge, a local trucking and shipping company, filed for Chapter 11 bankruptcy reorganization yesterday. Truckers have been hit hard by the economic downturn and several of them are seeking loan modifications on their trucks. In a Chapter 13 reorganization, the secured amount owed on a truck can be reduced to what it's fair market value is on the date of filing rather than what the driver actually owes in the contract. This method is called, "Redemption". The loan new amount is also re-amortized to five years so that the driver leaves the bankruptcy owning the vehicle free and clear.

If you would like to learn more about "Redeeming" a vehicle, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 to schedule a free initial consultation.

An Amended Complaint was filed on Monday in the case against the Madoff family bringing the amount of the lawsuit up to $226.4 million from $198.7 million. Most of the sum reflects salaries and bonuses obtained by Bernard Madoff's family members during the ponzi scheme. Those being sued are Peter Madoff who invested $32k but withdrew over $16 million, Andrew Madoff and Mark Madoff's estate who withdrew more than $35 million (Mark's estate, not him due to his recent suicide) and Shana Madoff (Peter's daughter) who was a member of the company's compliance division at Bernard L. Madoff Investment Securities LLC.

Although the family "steadfastly contend their involvement with BLMIS was entirely legitimate..." they appear to have made withdraws of unreasonable sums of money based on their investments. Shana Madoff, who appears to have taken no withdraws herself is being sued for the lowest sum, $12.7 million for being "derelict" in her duties on the securities firm's legal board.

The legal justification for the suit comes from fraudulent transfers, preferential payments (favoring one creditor over others when making payments just prior to bankruptcy) and turnover of property, which will allow the court to obtain property or cash from the defendants.

Although being in the Madoff situation is a very rare situation, we can all run into issues of fraud and preferential payments. If you are considering bankruptcy in the future, you need to know what sort of transfers you can and cannot do. Contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

One of the most common reasons for filing a bankruptcy is due to illness or other medical problem. In fact, according to the Census Bureau, one in six Americans lives without health insurance.

Most of us live on the edge in the current economic climate. According to Census data the average American cardholder carries about $5,100 in revolving debt at any one time. All it takes is one accident or illness and we're behind on our bills. Then the credit card companies increase interest rates and it quickly becomes impossible to get back on our feet.

Declaring bankruptcy is not an easy decision, but sometimes it's the only thing that can get life back on track. Medical debts incurred for reasonable health and welfare can almost always be discharged in a bankruptcy and as long as you're well enough to return to work, your life can start getting back to normal.

If you're overwhelmed with debts due to a medical condition, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

To say that the state court run Residential Mortgage Foreclosure Mediation program has been a failure is an understatement. This program was created by the Florida Supreme Court in an attempt to help Florida citizens modify their home loans so that they'd not be foreclosed upon for being unable to pay. With only a 3.6 success rate, the Supreme Court of Florida is now considering termination of the program.

On the heels of this debate comes an attractive Federal Court alternative: forcing modification in a Chapter 13 bankruptcy and using the threat of giving the home to the bank as a means of lowering principle and interest payments. This method started last year in Orlando, it appears to be working, and it makes total sense.

For a long time banks have been foreclosing on the homes of good people who can't make their payments only to be unable to sell the property for anywhere near the debt owed. The banks can write-off this difference as a tax loss, but they can only claim so much tax loss each year. Jacksonville judges are now allowing debtors to file motions to force the lenders into mediation where we can show them what they'll get if the debtor gives the house up in the bankruptcy vs. what they'll get if they willingly drop principle and interest on the loan.

This is all fine and dandy in theory, but what about real life?
One law firm stated a 90% success rate for mortgage modifications with 20% of those receiving a reduction of the principle amount owed. One case in particular reduced their principle by $160,000 on a $618,000 loan.

If you are unable to make your mortgage payments and would like to attempt forcing your bank into a mediation, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Doctors practicing in the Jacksonville area should consider their options in bankruptcy if they've been found liable for medical malpractice, especially if they were not covered by insurance.

Some debts are non-dischargable, as referred to in our previous entry. However, 11 U.S.C. 523(a)(6) prevents a debtor from discharging debts arising from willful and malicious injury to another person.

In Kawaauhau v. Geiger attorneys argued about the definition of "Willful", as it could mean an intentional act that brings about an injury or an act that brings about an intentional injury. The Supreme Court oversaw the case and unanimously found that Congress intended the statute to prevent only intentional injuries, not intentional acts that lead to injuries. This means that a doctor who commits negligence can still discharge their liability for that injury in bankruptcy.

In theory, this means that a doctor could practice medicine without malpractice insurance and file bankruptcy if they were ever liable for negligence. Of course, this would likely mean filing a Chapter 13 due to a doctor's income being traditionally too high for the means test, but it would allow that doctor to keep his home as exempt in bankruptcy and allow him to discharge the debt.

If you are a doctor who has been practicing without malpractice insurance and are concerned about your liability, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation and we'll explore your options.

Ponte Vedra's Sawgrass Marriott played host to this year's Jacksonville Bankruptcy Bar Association (JBBA) seminar. The new Chief Judge Karen Jennemann was in attendance as well as the former Chief Judge, Paul M. Glenn.

As usual the event was both educational and interesting and the accommodations were elegant. An interesting discovery for me was to find that the Resort had been lost to Goldman Sachs Group, Inc., as part of RQB Resort's Chapter 11 bankruptcy.

Apparently, the reorganization plan does not require Goldman Sachs to keep the hotel under the, "Marriott" name. This could mean that the 348 room hotel could change names come November when formal control is relinquished. RQB showed that the recession had caused a 25% drop in business for the resort in 2009, bringing about the bankruptcy. The value of the resort is currently $132 million dollars.

Both Chapter 7 and Chapter 13 bankruptcy filings are down 16.35% when compared to the year to date filings from last year. These filings, which are traditionally down at the end of December and early January traditionally peak in the month of March. This is likely because people hold off filing their cases for those two months due to the holidays and come around to filing as soon as March hits and the financial strain of the holiday season is over. You can see the peaks on the above graph. Blue represents 2010, while red represents this year thus far.

Hopefully, this is a sign of economic recovery, however it may just say that those who were going to bankrupt have already done so.

Few southerners are familiar with the department store Filene's, especially since it's retail outlet was bought out in 2006 by Macy's. Macy's then removed Filene's name from the stores and replaced them with it's own. Filene's Basement was the "outlet" version of the retail store, having served as a place to liquidate overstock back in the early 1900's. The companies diverged in 1988.

Now, in 2011 Filene's Basement, the last storefront bearing the name will be closing it's doors. This is sad to me not only because I used to shop there with my mother as a young child but also because my grandfather, Richard Fyler Sr., retired as a caretaker for Mr. Filene's decedents. They had a profound influence on my upbringing as they built a recreation center for the children of the town as well as funding the only local library.

This once great business now has between $1 and $10 million in assets and between $50 and $100 million in liabilities per Boston.com. It may be nostalgia, but I think it's always sad when a legacy dies and this company is no exception.

Jacksonville bankruptcy filings are always down from November through February and the reason is obvious: the holidays are upon us and no one wants to file bankruptcy during the holidays.

The problem with the delay is that despite the fact that people are in debt, they are still obliged to buy gifts. 11 U.S.C. § 523 lists various, "Exceptions to Discharge" which include under (c)(i)(I) any, "luxury goods or services incurred... ...within 90 days]" of the day of filing over $500 in value and any "cash advances aggregating more than $750... ....within 70 days of filing. There is an exception for goods and services that are reasonably necessary for the support or maintenance of the debtor or debtor's dependents. Presents, even though traditional, are likely to be considered a luxury unless especially modest. These purchases just prior to filing would be non-dischargable in the bankruptcy causing debtors to enter life after the bankruptcy already in debt again.

Purchases made without the intent to repay the debt are fraud under 11 U.S.C. § 727(a)(2) which can lead to a denial of discharge (bankruptcy case closed and debts still owed), or even jail time.

Filing before the holidays makes more sense because Chapter 7 property of the estate is determined on the date of filing. Purchases made with post-filing funds would not be fraudulent and would allow the debtor to enter the New Year without having to worry about the dischargability or criminal liability of new holiday debt.

If you'd like to prepare your bankruptcy before the holidays, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Imagine that you're a single woman who has some unpaid debt but like everyone else you're just trying to live your life and get by. Perhaps one lonely evening you create a personals ad on an online dating service. Soon you are happy to get a response from a young man who asks you to meet him. You prepare for the date, show up on time and he shows up too. You order drinks, then food and then he declares that he is in fact a debt collector for the company you owe. He tells you that you need to pay your debts, gets up and leaves.

Does this sound impossible? Well it isn't. In fact, someone seeking help with creditor harassment described a very similar situation to me just yesterday. This behavior comes out of left field for creditors as it requires more time and resources than we'd expect from a creditor. It also appears to violate the Fair Debt Collect Practices Act (FDCPA) as creditors cannot use deceptive means in an attempt to collect or enforce a debt.

If you think that a creditor is doing something unethical in an attempt to collect a debt, it may be illegal. Contact a Jacksonville Bankruptcy Lawyer or call us at (904) 685-1200 for a free consultation.

The Las Vegas Mobster Museum is headed to court, but not for racketeering. The museum that houses the world's largest collection of organized crime artifacts (other than the FBI evidence room), has found itself faced with a Chapter 11 bankruptcy filing citing $5.8 million dollars in debt.

This museum's debt is proportionally greater than the amount Capone owed to the IRS. When Capone was arrested in 1931 he owed $215,000 to the IRS. According to WestEgg.com this is the equivalent of about $3 million dollars today (after adjusting for inflation) and lead to Capone being given an eleven year prison sentence.

The Mobster Museum will be purchased for $2 million by JVLV Holdings LLC. The former developer, Jay Bloom, is faced with accusations stemming from overstated potential daily visitors and using corporate money to pay for personal automobiles, credit card bills and groceries. Depending on Mr. Blooms testimony, these transactions may be a violation of the bankruptcy code under 18 U.S.C. § 152. which protects against fraud in bankruptcy cases. Even if so, the maximum imprisonment under this statute is only five years, which is quite light when compared to Capone's eleven. I guess this tells us something we already knew- that it's bad to lie in bankruptcy court, but it's far worse to lie to the IRS.

Married Jacksonville residents seeking to defend wage garnishments may have a unique opportunity over unmarried debtors. Section 222.11 of the Florida Statutes allows any Head of family to exempt all of their disposable earnings from garnishment. Section 222.11(1)(c) defines "Head of family" as any natural person who provides more than one half of the support of a dependent.

Based on this definition, it would make sense that a husband and wife could both exempt their wages from garnishment as long as they were each providing more than 50% of the support for a child from a prior relationship.

Similarly, in a bankruptcy case, having a non-filing spouse can protect all titled marital property from liquidation by filing that property as, "Tenancy by the Entireties". This trick is commonly used in the bankruptcy arena.

Usually, we bankrupt married couples in a single document called a, "Joint Petition", which only requires a single filing fee. However, joint petitions don't allow for the "Tenancy by the Entireties" defense, so personal property above state exemption amounts would be lost. A unique possibility for married couples would be to file one spouse, claim the entireties exemption and then file the second spouse claiming the entireties exemption after the first case is closed.

Whether bankrupt or defending garnishments there are unique strategies that we can help you with. Come see a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation and we'll explore how those strategies can work best for you.

Jacksonville Bankruptcy judges are following Orlando judge's lead in granting bankruptcy debtors motions for court ordered mediation. These motions not only require banks to attend mediation in good faith, but they also require the debtor and banks to come prepared -with all the information and documentation that is required to do a modification. Taking things further, the court will require the bank to send an agent who has actual authority to perform the modification.

Many people fail to get loan modifications because the bank either, "lost the paperwork" or the documents became outdated when the bank had time to reviewed them. A lot of these people are eventually foreclosed on and are forced to bankrupt themselves to remove the liability.

Yes, for this to work the debtor will need to file bankruptcy, but it may be just what some debtors need to force banks to modify loans and keep their homes. If you've been trying to modify a loan and found the banks unresponsive and/or impossible to deal with, contact a Jacksonville Bankruptcy Lawyer or call us at (904) 685-1200 for a free consultation and we'll explore your options.

The filing fees for the Jacksonville District Court increased November 1st. The fees for filing are as follows:

Unfortunately, everyone is hard pressed for money these days. This includes the government, which appears to have lead to this cost increase. It does make one wonder if the people who are bankrupt are the ones who should be paying extra when they really are the ones who have the least.

Your Jacksonville home has a sale date. You've been holding off on filing bankruptcy because you thought a mortgage modification might be possible and now you have 24 hours before your home is going to be sold. If you think that nothing can be done to stop it, you're wrong.

If you file bankruptcy in the morning and your home was going to be sold in the afternoon, that sale will be stopped by the automatic stay. In simple terms, the automatic stay tells creditors to, "Stay away" until either the bankruptcy has completed or until they are granted court permission to collect again (a process which takes weeks).

The problem most people have is that filing a bankruptcy case requires a LOT of paperwork, and because this paperwork has to be accurate and is signed under penalty of perjury, it has to be accurate and complete. Fortunately, there is a way to gain the benefits of the automatic stay without having to complete all the paperwork up front: The Bare Bones Filing.

A Bare Bones Bankruptcy or Skeleton Bankruptcy is the creation of technicalities in the law. The title 11 bankruptcy code requires only that Form B1 (three pages) be completed on the day of filing. Four or five more pages are due within two days of that, but the remainder of the paperwork (upwards of 50 or so pages) isn't due for two whole weeks.

Now, I'm not advocating waiting until the last minute, but it's important to know that there is still hope if you are in that situation. If you would like to schedule an emergency filing, please contact a Jacksonville Bankruptcy Lawyer or call us at (904) 685-1200 for a free consultation.

As you may be aware, the L.A. Dogers filed for Chapter 11 bankruptcy protection in late June of this year. Chapter 11 is a reorganization bankruptcy available to both individuals and businesses where the creditors get to vote on whether or not to approve your proposed repayment plan.

Although McCourt is the owner of the Dodgers, it is the business, the "Los Angeles Dodger" that is filing the bankruptcy. McCourt withdrew an alleged $189.16 million dollars from the businesses funds according to the Los Angeles Times to settle his divorce with Jamie McCourt. To read more about the divorce side of things, see Kelly Ryan's divorce blog. Taking money from your own business probably wouldn't be an issue if that business weren't already insolvent.

In theory, Mr. McCourt has diverted money that could have gone to pay the business' creditors to his now ex-wife. These transactions could be violations of the bankruptcy code. Things have gotten so contentious that Major League Baseball has petitioned the court to order the sale of the Dodgers. It is difficult to say what will happen in this case as new facts and arguments are coming every day, but the moral of the story is that you don't drain the assets of an insolvent business and then try to file that business in a bankruptcy.

If you feel the need to liquidate assets of an incorporated business you should speak to an attorney first. Please contact a Jacksonville Bankruptcy Lawyer or call us at (904) 685-1200 for a free consultation.

UPDATE: McCourt has agreed to sell the Dodgers. This is a little reminiscent of the Texas Rangers who were sold only last year in their own Chapter 11.