Jacksonville Bankruptcy Lawyer Blog

Inheritance can be an issue in bankruptcy law. One might think that after you receive a discharge in your bankruptcy case, your case is done and the court does not have an interest in your finances. This is not always so.

In a Chapter 7 case, if a loved one dies and leave you an inheritance within 180 days from the date of filing your case, then this money becomes part of your bankruptcy estate. The trustee may want some or all of the inherited funds to distribute to creditors. The important thing to remember is that the date that you become eligible for the inheritance that is the date to use in this 180 day analysis. This is the date of the loved one's death, not when you actually receive the money or property.

In a Chapter 13 case there is an ongoing obligation to keep the trustee appraised of what property you own. Once they learn of an inheritance, they will likely take those funds for the benefit of your creditors. This can occur any time during the case. Since Chapter 13 cases are often as long as five years, it is important to make arrangements with relatives who may pass on during this time.

If you think you may receive an inheritance around the time when your going to be in bankruptcy, make sure to discuss this with your Jacksonville bankruptcy attorney so that steps can be taken to preserve your family's interest in those assets. To speak with a Jacksonville Bankruptcy Attorney today, call us at 904-685-1200.

If you file for Chapter 7 or Chapter 13 bankruptcy, you must attend a 341 Meeting of Creditors at the federal courthouse. This is a hearing with the trustee, and any creditors are invited to attend, though usually they decline to. You will be put under Oath and asked to produce a photo I.D. and social security card. Then the trustee will ask you some questions. Here are some sample questions that a trustee might ask.

1. Are you personally familiar with the information contained in the petition, schedules, statements and related documents? To the best of your knowledge, is the information contained in the petition, schedules, statements, and related documents true and correct?

2. Are all of your assets identified on the schedules?

3. Have you listed all of your creditors on the schedules?

4. Have you previously filed bankruptcy?

5. What is the address of your current employer?

6. Is the copy of the tax return you provided a true copy of the most recent tax return you filed?

7. Do you have a domestic support obligation? To whom? Please provide to me the claimant's address and telephone number, but do not state it on the record.

8. Have you made any transfers of any property or given any property away within the last one year period?

9. Do you have a claim against anyone or any business?

10. Does anyone owe you money?

11. Do you own an automobile?

12. If you do not own an automobile, how do you get around?

The questions that the trustee will ask you will most likely pertain to your specific circumstance, as outlined in your schedules. Your bankruptcy attorney will attend with you, so if you do not know the answer to a question or are confused, your attorney will be able to help you. It is important, as when filing, to be honest in your answers. The 341 Meeting usually only takes around 10 minutes per person. To contact a Jacksonville Bankruptcy Attorney today for a free consultation, call 904-685-1200.

With shares dropping 50% from last year, it comes as no surprise that Sears Holdings Corp., which owns both Sears, Roebuck & Co. and Kmart Corp., is closing stores more than 100 stores. The graph above shows a 84% decrease in income for the company since it first acquired Kmart.

The fall is an interesting development coming on the heels of Sear's CEO Edward Lampert pay out of a record $1 billion dollar income in 2004.

It is impossible to tell what the future holds for these companies, but I speculate that they will eventually file a Chapter 11 (Kmart did a few years ago) or that the company will be divided into smaller parts, Lampert selling off the less profitable portions and attempting to recover on the more profitable ones. Unfortunately, the brunt of the fall will be felt by the employees, who will lose their jobs and may be forced into bankruptcy themselves. Lampert, with a one year income of over a billion dollars, probably won't be so unfortunate.

As is most legal processes, bankruptcy can be a difficult thing to maneuver. There is a lot of misinformation out there, you need to be careful to get your information from a trusted source. Here are some myths regarding bankruptcy:

Myth 1: If I file for bankruptcy, everyone will know.
Like most legal proceedings, most bankruptcy documents are public record. Since I work at a law firm in the bankruptcy department, I search these records all the time. I even have a special username and password that allows me access online. However, how many times do you think your friends, family, or co-workers search through federal court records? The truth is that while your bankruptcy documents will be public information, it is unlikely that those you know would search to find them.

Myth 2: If I file for bankruptcy, I have to give up all my house.
If you are filing a Chapter 7 or Chapter 13 bankruptcy, you are often able to keep your house. Obviously, you need to be sure that you can pay your mortgage, or it would be useless to try and keep the house. But if you can afford the payments, then you can reaffirm the debt and retain your house. In a Chapter 13, you can even catch up on mortgage arrearages through your Plan, which may be all the help you need to keep your home.

Myth 3: Chapter 13 Plans require you to pay all of your unsecured debts.
A "means test" is the tool used to figure out if you qualify for a Chapter 7 or Chapter 13 bankruptcy. If you must file a Chapter 13, then a similar test tells you what your disposable monthly income is. This amount must be paid to your unsecured creditors. So, depending upon your situation, you could pay all of your unsecured debt, very little of your unsecured debt, or none at all.

Myth 4: Married couples must file bankruptcy together.
This is not true. You can file a joint petition if you want to save on court costs, but you are not required to. A Jacksonville Bankruptcy Attorney can assess your particular situation and tell you whether it is beneficial for one of you or both of you to file, based on how much debt you have, what kind of debt it is, and in whose name the debt is in. Often times it is more beneficial for one spouse to file.

To discuss any questions you have regarding bankruptcy, creditor harassment or consumer law, contact a Jacksonville Bankruptcy Attorney today at 904-685-1200 for a free consultation.

Upon filing for bankruptcy protection, an automatic stay is put in place. This means that creditors can not try and collect from you. So a creditor cannot call you to request payment, send bills to you, garnish your wages anymore, or repossess your car without court permission. If there is a foreclosure suit against you, that suit must also stop immediately. If your home is sold and you filed prior to the sale, that sale can be vacated. Obviously, this is a powerful tool bankruptcy. Many people file to stop creditors from taking actions against them or their property.

The automatic stay will remain in effect until one of the following things occurs:
1. A creditor petitions the court for relief from automatic stay and the court enters an order granting it;
2. You receive a discharge in your bankruptcy case; or
3. Your case is dismissed.

If you have creditors that you would like to keep at bay by filing for bankruptcy and getting automatic stay protection, contact a Jacksonville Bankruptcy Attorney today for a free consultation to discuss your specific case.

The Federal Housing Finance Agency is reviewing a proposal that would permit Judges of Chapter 13 cases to give 0.00% interest rates on FHFA loans during the duration of the five year cases. Since about 90% of all U.S. Mortgages are FHFA backed, this would allow nearly all mortgages to have zero interest rates for five years. This comes on the heels of the Federal Housing Finance Agency's plan to allow Chapter 13 bankrupt to enter modifications and attempt to reduce their principle balances.

The proposal comes with two caveats: 1. The home must be worth less than it's mortgage (46% of Florida homes are underwater) and 2. whether or not to grant the modified interest rate would be up to the bankruptcy judge.

White House spokeswoman Amy Brundage told the Financial Times that the administration is not considering this particular idea. Fortunately, this bill can become law without approval from the White House. Even if a President were to use their veto power, the bill could still be passed by a 2/3rds majority vote by both houses of Congress.

Since the creation of this bill is only under consideration, it is likely that the 2012 election will have passed by the time it gets to the president, whose policies may be different than our current leader of the executive branch.

A Shreveport, Louisiana man was sentenced to 6.5 years in federal prison for concealing over $400,000 in assets in a joint Chapter 7 petition. He also attempted to discharge a debt of $750,000 which was supposed to be held in escrow for a real estate project. He was convicted of concealing assets, making a false statement under penalty of perjury and bankruptcy fraud. As part of his criminal monetary penalty, he is to pay the U.S. Trustee $754,000. According to the National Association of Bankruptcy Trustees, the case was investigated by the FBI and the United States Bankruptcy Trustee's Office and prosecuted by the Assistant United States Attorney.

Many people forget that bankruptcy relief is a privilege with limitations and that abuse of the system can be severely penalized. Before taking actions could lead to trouble, you should first consult experienced counsel. Contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

The Florida District Court of Appeals shed light on how Florida's Statute of Limitations functions as to Judgments in their recent decision in Corzo v. West.

In Corzo, the creditor, Corzo Trucking Corporation, had obtained a judgment against the debtor, Bob West in 1984. Corzo had been unable to locate West for twenty-one years, but since the debt owed by West was so large, ($120,223.80 in principle plus $297,933.61 in interest, totaling $418,157.41), an attempt was made and he was located in the state of Georgia. Suit was brought in 2006 in an attempt to force West to "make good" on the 1984 judgment. West did not file any papers or attend hearing in 2006 and a default judgment was obtained against him. In 2009, when Corzo attempted to enforce the new 2006 judgment, West replied the action and the judge dismissed the case. Corzo appealed this decision and brought about the new case.

The District Court of Appeals explained that the 2006 judgment is a distinct and different judgment from the 1984 judgment. Despite being based on the prior judgment, the new one had it's own case number and was enforceable once obtained for another twenty years. What West should have done was appear to court when summoned in 2006 and brought up the defense of the statute of limitations then. At that point the new judgment wouldn't have been entered and the old judgment would have been unenforceable, but because he didn't bring up the defense at that time, the court considered it waived. Now he has to deal with nearly half a million dollars in debt.

If you have an old judgment that is attempting to collect, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Many people who are considering bankruptcy are concerned that they will be unable to find a place to live if they give up their home. Although I have addressed this concern in the past by calling housing complexes around the city to see if they will rent to those who are bankrupt, there are still people who worry. Of course there is always the thought, "Sure, it someone else who filed for bankruptcy found a place to rent, but it what if it won't happen for me?". It's easy to understand this concern as almost nothing is more important than having shelter, especially if you have children.

According to the Consumer Bankruptcy Project of 2007, 70% of those who who surrender their home in bankruptcy rent thereafter. Others chose to live with relatives, purchased a different house, etc. I still keep a list for my clients of properties around Jacksonville who will rent to those who file bankruptcy. If you would like more information regarding bankruptcy or would like to get your complex added to our list, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

The first automobile company to come up with heated seating has filed for bankruptcy in it's home country of Sweden. Although it began as an aircraft manufacturer, Saab entered the growing automobile market after World War II. Saab sales peaked in 1988 at sales of nearly 135,000 and nearly returned to that peak in 2006. USA Today's, data shows a decline in Saab sales by 20.3% from 2006 to 2009.

According to Inside Line, the Swedish Company Reorganization Act requires that a bankruptcy application be approved only if there is reasonable cause to assume that the purpose of the reorganization will be achieved. Since the purpose of this reorganization is to keep the company running, it will be interesting to see what transpires.

Of course, the worst of the impact of a corporate bankruptcy is borne by the employees of the company. BBC News reports that Saab's employes have complained that they've not been paid since last month. Since corporate bankruptcies often take months (if not years) to complete, it's hard to imagine just how many personal bankruptcies this corporate one will cause.

If you are having financial difficulties as a result of a layoff or corporate shut down, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Two bankruptcy petition preparers in Wisconsin are in big trouble with the Court, facing possible criminal charges. Jennifer Abbott, who is a disbarred attorney, was cited with contempt by a bankruptcy judge. The Court said that she has violated bankruptcy Court Orders repeatedly and she refused to obey a subpoena issued by the U.S. Trustee's office. Abbot has also been convicted of felony theft for stealing from a client.

The second bankruptcy petition preparer, Gaynor Morrison, is in trouble for failing to appear in bankruptcy Court when ordered to do so. Also, he was alleged to have been overcharging clients and failed to return fees to clients after being ordered to by the Court.

Bankruptcy petition preparers are non-attorneys who help people file for bankruptcy. Courts and trustees often comment that the petitions or other required documents are flawed when drafted by a bankruptcy petition preparer. If this happens and the case gets dismissed without discharge, people could lose valuable assets or have to pay additional filing fees. Not all bankruptcy petition preparers are unprofessional, but it is best to have a licensed attorney with knowledge of the complexities of the Bankruptcy Code prepare your bankruptcy documents. To contact a Jacksonville Bankruptcy Attorney today, call 904-685-1200.

In a Chapter 13 bankruptcy, some of your debts must be paid through a Chapter 13 Plan. This plan lasts up to 5 years. A part of filing for Chapter 13 bankruptcy is that all of your monthly disposable income is committed to your unsecured creditors. Without proper budgeting, this may not leave money for unexpected expenses, like your car breaking down, unexpected medical bills, or needing to fly to California last-minute for a funeral. It is not uncommon for debtors to fall behind on their Plan payments on occasion. So what happens if you do?

If payments are a month or more behind, the Trustee will typically file a Motion to Dismiss your case for Failure to Make Plan Payments. If this is your first time missing a payment, the Court will enter an order giving you a specific amount of time to make up your payments, usually 60 or 90 days. The Order will state the date by which you need to be current.

One great way to make sure and not get behind on your payments is to have the money taken directly from your paycheck and given to the trustee. In the Jacksonville, Florida Middle District, we can have a judge sign an order for direct withdraw of those funds. This makes it much more difficult for debtors to get behind.

Another thing you should do is to keep track of your payment online. The Jacksonville, Florida Chapter 13 trustee has a website where you can see if your payment has been received, which creditors are getting money, if you are delinquent and by how much.

If you are thinking of filing for bankruptcy contact a Jacksonville Bankruptcy Attorney today at 904-685-1200.

In the recent publication, "Broke: How Debt Bankrupts the Middle Class" by Kathrine Porter, Miss Porter explains that while most Americans are pushed to attend college as though it were the only path to success, anything less than a four year degree will increase your probability of filing for bankruptcy. She goes on to state that the cause of bankruptcy for these individuals does not appear to be student loan obligations, but she offers no concrete alternative explanation.
A study by The Institute for Financial Literacy reiterates Porter's surprise at the growing number of educated bankrupt, but still shows that the majority of bankruptcy filers are those who have only high school education or went to college but never finished.
Gant Daily came to similar findings but only showed a little more than 2% growth in higher education filings over the last few years.
The long story short is that the largest groups filing bankruptcy are still those with only high school or some college education. It has been this way for some time. It is my belief that the new trend of increasing bankrupt being from the upper middle class is just that, a trend. When economic recovery gives a more certainty and consistency back to the markets, I anticipate that the increased number of college graduates filing will return to the norm. Still, these studies are interesting and relay an important message: No matter what educational demographic you come from, you are not alone.

Jacksonville residents are facing some of the hardest times ever. With 46% of Florida Homes worth less than their mortgages notes, a lot of folks are considering bankruptcy.

As attorneys, it is our job to counsel our clients on what action is in their best interest. I have worked at a few different law firms and I have found that there are three schools of thought. The first thought is that the debtor should always keep the house, regardless of it's value to debt ratio. This philosophy feels that the American Dream should prevail and that every one of us deserves to own a home. While I don't disagree that we should all have the opportunity to own a home, this philosophy often fails because the debtor's income is simply too low to make the house payments. Attorneys who say that they always try to save the house either make so much money that they don't remember what it's like to struggle or even worse, they're just telling clients what they think the clients want to hear. Be wary of attorneys who only tell you what you want to hear. That's a sign of a good salesman, not of a good counselor.
The next school of thought is that the house should always be surrendered if it's under-water. This purely economical approach makes more sense than the one toting the "American Dream" and it's quite attractive. However I don't think it's enough to consider only the economics of the situation. Bankruptcy attorneys tend to think numbers, because that's what we deal in, but a wise person once said something to the effect of, "A home is more than just a house."
The final school of thought is the one I tend to subscribe to. If a home is under water I consider the individuals complete situation and ask the following questions: Does the debtor have young kids? How long as the debtor lived in the home? To what degree is it underwater? Will the debtor be able to gain the same or better financing on a home later? The list goes on. So, is keeping your home a purely economic decision as the home is just a house? No. Is the ownership of a home an inalienable right guaranteed to every American? No. Whether or not a client is advised to keep an underwater home should depend all the factors involved, be they emotional or economically driven.

If you have an underwater home and aren't sure what direction to take, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Yes, you can still file for bankruptcy. However, a very important part of every bankruptcy case is your exemptions. Exemptions allow you to keep your real and personal property. There are federal exemptions, but most states have adopted their own exemption laws. To use Florida exemptions in your bankruptcy, there are residency requirements. If you have lived in Florida for the 730 days prior to your filing, you can use Florida's exemptions. If you have not lived here for that long, then your exemptions will be those of the state in which you resided for during the 180 days prior to your filing or the federal exemptions, whichever your prior state's law indicates.

Florida is often seen as having a liberal homestead exemption, as it allows you to keep your home despite unsecured creditors. However, to use the Florida homestead exemption, you must have owned the home for 1215 days, otherwise you can only protect up to $125,000 in equity. Since nearly half the homes in Florida are underwater on their mortgage, it is a rare circumstance that anyone has more equity that the federal system allows. If you are unclear what exemptions you are allowed to use, contact a Jacksonville Bankruptcy Attorney today to discuss your specific case and what exemptions would be best for you.

December is often a hard time for families to pay their bills. Often in January, people begin to think about filing bankruptcy. This can be a problem because one of the things that must be done prior to filing a bankruptcy is to have filed all previous tax returns including the current year. It is virtually impossible to file your tax returns in January for most people. To reward those who file by the end of the year, we are offing a $500 discount on Chapter 13 Bankruptcy filings. Court fees and costs are not included and generally run $281. To find out more about filing bankruptcy contact a Jacksonville Bankruptcy Lawyer or visit our Jacksonville Bankruptcy Lawyer Blog.

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Some of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

Recently, the U.S. House of Representatives voted to pass the The National Guard and Reservist Debt Relief Act of 2011 (H.R.2192). This bill is an extension of a 2008 version of the bill with the same name. The currently existing law helps soldiers qualify for Chapter 7 bankruptcy by allowing those on active duty to bypass the means test.

Soldiers would more easily qualify for a Chapter 7, because they can now bypass the means test. The means test requires the court to look at the debtor's income and compare it to an average income for the same family size. If the debtor's income is above average, then the filing a Chapter 7 is presumed a fraudulent abuse of the system as the debtor makes too much money to not pay any debts back. The debtor presumed fraudulent can then either file a Chapter 13 bankruptcy or pursue a non-bankruptcy option. The National Guard and Reservist Debt Relief Act of 2008 dictates that those in active duty for at least 90 days do not have to overcome any fraud analysis. They automatically qualify for a Chapter 7 regardless of how high their income is.

The justification behind the bill is that oftentimes these soldiers are called upon on short notice, requiring them to leave higher paying jobs to travel to remote locales to defend America. This may lead to soldiers having to maintain more than one household. Again, to qualify under this bill, reserve members must have been on active duty for 90 days or more since September 11, 2011. You can also qualify during the 540 days following activation.

If you are a military service member and would like to find out more about filing for bankruptcy, contact a Jacksonville Bankruptcy Attorney today for a free consultation.

The U.S. House of Representatives introduced a new bill, the Mobile Informational Call Act of 2011, that would allow businesses to dial consumers' cell phones using an automatic dialing system. This practice is oftentimes called "robo-calling". This means that the operator does not have to manually dial each number. Rather, the computer system can dial the numbers and play a prerecorded message on many phones at once. The current law is that operators have to manually dial the numbers (unless the customer consents to robo-calling), which is not very profitable for many collection agencies.

The down side to this bill would obviously be that creditors would be able to start robo-calling your cellphone. This does not sit well with many consumers. But some creditors say that the current regulations have not kept up with the technology of today, and that a lot of people do not have home phone lines anymore. Creditors are wanting robo-calling access to cell phones.

The upside to the bill, however, is that an airline company could robo-call passengers if a flight was cancelled or is running late. Or your credit card company could set up a system to automatically call you if they think someone is fraudulently using your card. Or your bank could robo-call with a message that someone changed the address or PIN number on your account.

It does not look like the bill will be passed as it is. But the proponents may make some changes and re-introduce the bill. Either way, remember that the FDCPA is still in effect. Creditors cannot harass you. Creditors can only call at certain times during the day. Creditors cannot be abusive. If you have problems with creditors, contact a Jacksonville Bankruptcy Attorney today.

Singer Beyonce Knowles, recently sold her Miami, Florida condo for nearly 25% of what she paid for it. According to TMZ, Beyonce bought the 190 square foot condo in 2002 for $465,000 only to sell it this November for $110,000. This is a $355,000 loss on what TMZ suggests was essentially a private restroom. This is a far greater loss than most mortgage holders face, but this also wasn't Beyonce's homestead, it was a luxury property. With so many homes underwater in Florida, it's no wonder the star lost out on this investment. One things is for certain, with an income like hers, a small property like this won't be irreplaceable.

There's not much that inspires us to act (or not act) than the threat of imprisonment. Collection agencies are using a new angle on collections that can lead to the arrest of unwitting debtors.

The Fourteenth Amendment states that "[n]o state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law". Despite the protections of this amendment, collectors are satisfying the requirements of due process by filing suit, unilaterally scheduling hearings, and when the debtors fail to appear for court, they have they ask the judge sign an order for them to appear. If they don't show up for the second hearing, the judge will issue a warrant for the debtor's "willful" non-appearance before the court. The next time the debtor is pulled over for a route traffic stop, they can be arrested.

The problem with this satisfaction of the due process requirement is two-fold. First is the fact that most collection agencies have bad or outdated addresses for debtors. People move all the time, especially those with financial troubles. If the address is incorrect, then the debtor never gets notice of the hearing. This makes the "willful non-compliance with a court order" no longer willful. If the debtor didn't know, how could they willingly not comply?

The second and perhaps more concerning problem with this methodology is that the debtor is broke. One of the victims of this scenario spent four days in jail over $730 dollars. If you have no money to pay your debts, you probably don't have the money to pay for an attorney. Lacking charity, that means that it's up to the debtor to fight for their legal right to due process.

Fortunately, we have not seen a lot of these kinds of cases here in Jacksonville, but it's impossible to tell what angle collection attorneys will try next. If you fear you may have a warrant out for your arrest for non-compliance of a court order, or fear that this may happen to you, please contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Just because it is the holidays doesn't mean domestic violence incidences come to a screeching halt. In fact, the opposite can be true. Many reports suggest that domestic violence rates increase during the holidays.

If you find yourself this holiday season in the unfortunate position of dealing with or needing an injunction (commonly known as a restraining order) Contact a Jacksonville Family Law Attorney for more details on this offer. To read more about domestic violence, divorce, family law, child support, or child custody visit the Jacksonville Divorce Attorney Blog

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Some of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

When filing for bankruptcy, it is very important to be very honest and disclose everything. If you do not, you risk having your bankruptcy denied, discharge revoked or even prison time in the worst case scenario. When you sign your bankruptcy documents, you are doing so swearing that they are true under penalty of perjury. If the trustee finds out that something you have in your schedules is incomplete or untrue, this will raise a red flag and the trustee will scrutinize your bankruptcy schedules even more.

A common way that people fail to disclose everything in bankruptcy is trying to hide assets. Debtors might leave off a gold watch or a private bank account. This is a big mistake. When filing for bankruptcy, you must list all of your assets. Even if you think an asset is inconsequential or minute, you should list it. It is better to have overkill than to raise a red flag.

Another thing debtors sometimes fail to list is creditors that happen to be friends or relatives. Or maybe the debtor does not want a specific creditor to know that they have filed for bankruptcy, so they do not want to list that creditor. You should not do this. You need to list all creditors to whom you currently owe any kind of debt on your bankruptcy papers. The trustee wants to make sure that all of your creditors get their fair share of your estate. No matter your intentions, make sure to list every creditor. If you do not and the trustee finds out, this will raise a red flag.

If you fail to disclose everything on your bankruptcy schedules, you will most likely be sorry in the long run. However, the trustee may be understanding if you make an honest mistake. If you accidentally leave something off your schedules, correct the mistake by filing an amendment as soon as you realize the mistake.

To learn more about bankruptcy and to schedule a free consultation, contact a Jacksonville Bankruptcy Attorney today at 904-685-1200.

When people are in desperate situations, they often have desperate thoughts. One of those thoughts that often comes to light in my office is the idea of hiding assets from the trustee. Sometimes it's money, sometimes it's your great grandfather's old service revolver. Either way, these items must be listed in your bankruptcy petition as they are your property. Declaring them does not necessarily mean that you have to lose them, as certain amounts of personal property is exempt in bankruptcy.

18 U.S.C. §152 makes it a federal felony to knowingly and fraudulently conceal any property belonging to the estate of the debtor from the United States Trustee or from creditors. The penalty for this crime is a fine up to $250,000, up to five years in federal prison, or both.

The easiest thing to do is not hide assets in the first place. The Federal Bankruptcy Code is there to provide relief to those who need it. It allows for certain amounts of exempt property so that those who need it can attempt to restart their lives and get out of desperate situations. The best way to deal with property you don't wish to lose in a bankruptcy is to attempt to exempt it properly. If you would like to meet with an attorney who understands how the Florida bankruptcy exemptions work, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

December is often a hard time for families to pay their bills. Often in January, people begin to think about filing bankruptcy. This can be a problem because one of the things that must be done prior to filing a bankruptcy is to have filed all previous tax returns including the current year. It is virtually impossible to file your tax returns in January for most people. To reward those who file by the end of the year, we are offing a $500 discount on Chapter 7 Bankruptcy filings. Court fees and costs are not included and generally run $301. To find out more about filing bankruptcy contact a Jacksonville Bankruptcy Lawyer or visit our Jacksonville Bankruptcy Lawyer Blog.

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Some of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

Considering divorce and want a fresh start for 2012? Apple Law Firm wants to help you make the transition from married to single life as seamless and stress-free as possible. Thus, we are offering $500 off fee agreement which involved a divorce until the end of the year. Contact a Jacksonville Family Law Attorney for more details on this offer. To read more about divorce, family law, child support, or child custody visit the Jacksonville Divorce Attorney Blog

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Some of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

Just because it is the holidays doesn't mean domestic violence incidences come to a screeching halt. In fact, the opposite can be true. Many reports suggest that domestic violence rates increase during the holidays.

As the Holiday season approaches Apple Law Firm's Personal Injury Attorneys would like to offer our new clients an opportunity for a Free Consultation and a Reduced Contingency Fee agreement of only 25% maximum. Note fees and costs are extra as with any PI case. This is 15% below the normal contingency fee and represents a significant reduction legal fees which could result in more money in your pocket. This offer applies to any new Jacksonville Personal Injury case with a signed fee agreement. Don't let the Holiday season get the best of you, contact us today!

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Some of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us and have a signed fee agreement by 12/31/11.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

A recent Jacksonville case allowed a debtor to pay for a mortgage in his sister's name on a house in which he had a 50% ownership interest. As long as the debtor has a legitimate ownership interest in the property, the debtor can pay any lien on the property (including any arrears on that lien) in a Chapter 13 repayment plan.

This case occurred when a sister executed a mortgage on her home, transferred that home to her mother only to have the mother die shortly thereafter. Because the mother died intestate, the ownership in the house was then split amount her ten children evenly. One son wanted to live in the home and because the sister had not paid on the mortgage in some time, four of the other siblings transferred their interest in the house to that son. He then had a 50% interest on a home that was now facing foreclosure. In an effort to cure his sister's arrearage no the mortgage, he filed a Chapter 13 case and submitted a payment plan that included his sister's mortgage.

The sister, for unknown reasons, filed an objection to her brother paying off her mortgage. She argued that because the mortgage was not in his name, he could not pay it. Interpreting the bankruptcy code, the Judge ruled that the debtor had the ability to pay on any lien encumbering property in which the debtor had an interest. As a result, the son was able to pay his sister's mortgage through a Chapter 13 case.

Admittedly, these are unusual facts, but the letter of the law could be applied to any similar facts that include some property in one person's name and a lien on that property in someone else's.

If you have questions about a unique financial situation, please contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

Jeffrey Summers, of Taft, California, and Stafan Miller, of Santa Clara, California, perpetrated a scam upon multiple creditors. They formed Maxwell, Turner & Associates, a collection services company who employed around 20 people. From February 2009 until May 2010, their company did not deliver on their promises to clients. Summer and Miller would provide false information about legal proceedings and tell their creditor clients wrong contact information for debtors. Also, if the company did collect any money from debtors, it would not pass this money along to the appropriate creditor. Instead, the two would pocket the money. The scheme took in more than $2.7 million.

Summers was convicted for conspiracy to commit mail fraud and sentenced to 8 years in federal prison. Miller was ordered to serve 6 years and 9 months for conspiracy to commit mail fraud and money laundering. The two have also been ordered to repay $1,311,700 in restitution to the victims of their fraudulent scheme.

If you feel that you have been defrauded in any financial situation, you should speak with a Jacksonville Consumer Law Attorney to see if a remedy this available for you.

Interested in a Gun Trust or one of our new Asset Protection Gun Trusts? This special is for today only. If you contact us by email or telephone today, we will knock $100 off the price of your Gun Trust. To learn more about what a Gun Trust is visit the Gun Trust Lawyer® Blog If you contact us after hours on Dec

The Apple Law Firm has decided to do 12 great specials for our new and existing clients.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

This special is for any new or existing Foreclosure Defense clients and can offer you a substantial discount and save you a substantial amount of money. While we understand that not everyone will be able to take advantage of the offer, for those of you who can it should be considered. If you pay for 2 months of Foreclosure Defense we will give you a credit for an additional month at no charge. For more information on Strategic Default or Foreclosure Defense in Florida, please see the target="_blank">Florida Foreclosure Defense Lawyers Blog.

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Many of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

Filing for bankruptcy can be very confusing for those trying to go it alone. As an in-depth legal process, it is greatly beneficial to have a Jacksonville Bankruptcy Attorney to help you navigate your way through a successful bankruptcy. Here are some reasons why:

1. There are many calculations that must be done correctly. To file for bankruptcy, you must first know which Chapter you qualify for, a Chapter 7, 13, 11 or 12. One step to figuring it out is by completing a Means Test. This is complex thing to do. You must know things which deductions you can use for food, clothing, personal care, health care, housing, and many more. You'll need to how the allowances for vehicles work and what involuntary deductions you can take. You must know how to list future debt payments correctly. And the list goes on and on. Without the proper knowledge and skill, this can be very difficult to do right the first time. If you do not do this correctly, the court could dismiss your case without a discharge, penalize you with fines or in rare cases, even send you to jail. Hiring a Jacksonville Bankruptcy Attorney would be beneficial because someone with knowledge and experience would be handling these issues, taking the stress off of you.

2. Another daunting task is drafting a Chapter 13 Plan. This Plan is very important, as it outlines your responsibilities over a three to five year period. You must know which creditors get paid, how much is required to go to unsecured creditors, and how to allocate the Trustee's portion. You want to make sure that you get all the benefits you can through your Plan. It is not the job of the Court or Trustee to watch out for your interest, it is there job to be sure that the code is being applied properly.

3. A Jacksonville Bankruptcy Attorney can negotiate with creditors for you, if need be. We can dispute claims on your behalf or negotiate lesser amounts owed. If you hire us, then you will not have to deal with creditors on your own. Once creditors know that you are represented with regard to their debt, then they cannot contact you anymore. This can be a relief, especially if the creditors are calling multiple times per day or you have multiple creditors calling.

4. Time can be saved by hiring counsel. While it may only take an attorney a short time to fill out a document correctly, it might take you hours. An attorney is trained to know how to fill out the paperwork quickly and efficiently. Since you do not do this everyday, it will likely take you much longer.

These are just a few reasons to hire a Jacksonville Bankruptcy Attorney to file your bankruptcy. There are many more. Contact us today at 904-685-1200 to set up a free consultation.

On 06/25/10, Mark Brunell, ex-quarterback for the Jacksonville Jaguars filed for Chapter 11 bankruptcy protection. In a Chapter 11 bankruptcy a debtor proposes a repayment plan that includes all of their creditors. Those creditors then get to approve of the plan if their rights are infringed. Once all creditors infringed are satisfied with the proposed plan, it can be confirmed. Mr. Brunell's plan was confirmed yesterday by Jacksonville's very own Judge Jerry A. Funk.

Consumer debtors who earn more than the median income for their family size cannot file Chapter 7 Bankruptcy. Often, this results in their filing of a Chapter 13, however Chapter 13 has a "debt ceiling". This "debt ceiling" limits the dollar amount owed by any debtor who wishes to file this chapter. Currently, the debt ceiling is $360,475 for unsecured debts and $1,081,400 for secured. If a debtor makes more than the median income, but owes more than the debt ceiling, their only recourse may be to file Chapter 11, just as in this case.

Creditors in a Chapter 11 must retain their existing rights in the proposed plan, or consent to having those rights modified by the plan or get at least as much in the plan as they would if the debtor was liquidated in a Chapter 7 bankruptcy. Because Mr. Brunell owned $350,000 in assets that would be unexempt (and therefore liquidated) in a Chapter 7, so his plan requires that $350,000 will be paid to his unsecured creditors by June 30, 2012.

Similar to a Chapter 13, no debts are deemed discharged until every payment contemplated in the plan has been paid. That being so, Mr. Brunell has a little more than six months to come up with $350,000, quite a sum to pay his unsecured creditors. However, according to News4Jax.com, Mr. Brunell, who earns approximately $960,000 playing football for the Jets, will sell some assets to cover the $350,000.

If you have questions about the different kinds of bankruptcies, please contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

If you or a family member has been accused or are under investigation for a Crime and are looking to hire a Florida Criminal Defense lawyer to represent you, we have an offer that may make it easier to hire an attorney around the end of the year. The Apple Law Firm is offering to reduce any new retainer by $500 for representation for a felony or misdemeanor crime. For more information, you may review the Jacksonville Criminal Defense Lawyers Blog.

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Many of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

Is your credit card company driving you crazy? Think they are trying to rip you off or aren't taking your complaints seriously? The Dodd-Frank Act created the Consumer Financial Protection Bureau (CFPB), an agency to whom you can voice concerns regarding your credit card companies. Since their opening in July 2011, the office has fielded more than 5,000 consumer complaints. Some of the most common complaints dealt with collection practices, debt protection services, account closures, identification theft, fraud, and fees.

After a complaint is filed, the CFPB acts as a go-between in order to resolve the issue between you and your credit card company. So far, approximately three quarters of the complaints have been either partially or fully resolved by the credit card company. The rest are either still under review or there was no relief found.

Consumers can submit their complaints either online with Consumer Finance's Government Site or by calling 855-411-CFPB (855-411-2372). In the near future, CFPB will be fielding complaints for all kinds of consumer financial products, including mortgages and other loans.

If are having some of these issues with a credit card company or any other financial company, don't hesitate to contact a Jacksonville Consumer Law Attorney at 904-685-1200 to discuss your options.

Jacksonville bankruptcy filers are required to take a credit counseling course before filing bankruptcy as well as a "debtor education" course during their bankruptcy before they can obtain a discharge of their debts. When George Bush signed the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, there was a feeling that those filing bankruptcy must be doing so because they do not know how to properly budget money. This feeling lead to the creation of 11 U.S.C. §109(h) and 11 U.S.C. § 727(a)(11) which require the counseling and education courses.

In the past, the primary reasons for filing bankruptcy were varied, the Chicago Tribune states that the primary drivers of bankruptcy are illness, divorce and loss of employment. While this used to be true, it seems that the vast majority of the people I consult with have only one issue, what to do with a home that is more underwater than it is worth and a bank that won't budge when it comes to modification.

When an underwater home is the reason for bankruptcy, no amount of budget knowledge is going to help, yet it is still required. Fortunately, there are Debtor Education providers like Dave Ramsey, who give more useful tips on growing wealth than how to simply balance a checkbook.

Contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation to discuss credit counseling, debtor education and other options.

12 Laws of Christmas - Day 1 Create a Will for $25

Have you been in need of a Florida Will or have a family member that is in need of a new Will? Have you considered using an online service but been afraid of what you might create or what mistakes you may make? Now, you can have a lawyer create a will for only $25. This is not a will that you would find at staples or in a form book, but a fully customizable will based on your needs and desires.

The Apple Law Firm has decided to do 12 great specials for our new and existing clients. Most of the specials will only be valid for the day they are mentioned, but we will honor this special as long as you contact us about it by December 25th and pay for it by the end of the year.

If you want to be the first to find out about the special offers by the Apple Law Firm for the remaining 12 Laws of Christmas, be sure to check this blog daily or subscribe to our blog updates.

AMR, the parent company of American Airlines, announced November 29, 2011 that they filed for Chapter 11 bankruptcy in the Southern District of New York. The company said that in the first nine months of 2011, they lost $868 million and project that they will lose around $1.1 billion by years end. AMR, a Fort-Worth based company, listed $24.7 billion in assets and $29.6 billion in debt in their bankruptcy Schedules.

An article in the Financial Times says "the move brings to end a nearly decade-long effort to avoid Chapter 11. In 2003, American chose to avoid bankruptcy, while its rivals used the process to shed their pension plans and reduce structural costs, leaving it at a substantial disadvantage."

The company's CEO, Gerard Arpey, was not in favor of the company filing for bankruptcy. In fact, he had spoken out several times saying that he did not want AMR to file for bankruptcy. So he retired. Tom Horton, previously the company's president, will now step in as the new CEO.

For now, American Airlines says that they will continue normal business operations. Flights will go on as scheduled, and tickets will be honored as usual. Employees, their paychecks and benefits will also not be affected, at least not right away.

Contact a Jacksonville Bankruptcy Attorney if you have any questions about bankruptcy at (904) 685-1200 for a free consultation.

For Jacksonville Bankruptcies, individuals filing bankruptcy are permitted to keep certain amounts of property pursuant to the "Florida Exemptions". One of these pieces of property is their Homestead.

Article X § 4 of the Florida Constitution prevents a home of up to 1/2 acre within a municipality or 160 acres outside a municipality from being forced to sale by anyone except those holding liens for taxes, mortgages, mechanics and the like. This protection is one of the most liberal in the United States Bankruptcy Courts and has lead to the relocation of celebrities such as Oj Simpson who homesteaded property to avoid the loss of otherwise obtainable assets. Due to the quick relocation of people like Simpson, Florida now requires a person to own the property at least 1215 days (about 3.3 years) to exempt the entire value of equity in the home.

A new case, In re Gentry rules that even when a debtor initially states that they intend to abandon their homestead at the date of filing, they can later change their mind by filing an amendment and keep the home. Originally it was thought that the debtor's intention on the date of filing is what controlled this issue, but the Tampa court stated that Florida Homestead protection is so widespread and liberal that the debtor can change their mind mid-bankruptcy. The question that remains unanswered is just how far into a bankruptcy a debtor would be to be "too late".

If you have questions about the homestead exemption or would like to know if your home would be protected from creditors, contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

I admit that the title of this blog, "Jacksonville Debtors Stripping Second Mortgages with Chapter 7" is technically inaccurate. An older post addresses how lien stripping and cram-downs actually work. This blog post is going to tell you how we can get an effect similar to "lien stripping" but in a Chapter 7 case instead of a Chapter 13.

When a person files Chapter 7 bankruptcy, they have the opportunity to keep their debt on a secured loan in a Chapter 7 as long as their current on payments. This, along with the Florida Constitution allow people to keep their financed homes through a bankruptcy.

The problem most people have these days is that their home is under water and their second mortgage is no longer secured by equity. To make things easier, let's use the following example:

Home Value	Mortgage Amount	Secured Amount
$110,000	1st Mortgage $120,000	$110,000
	2nd Mortgage $80,000	$0

In this example, the debtor owes $120,000 + $80,000 or $200,000 on their home, but the home is now only worth $110,000. This means that the debtor is underwater $90,000. A smart debtor might choose to give up their home in a bankruptcy because it's horribly underwater. After all, no one in their right mind would knowingly agree to pay $90,000 more than something is worth. Back to the example: If the debtor did surrender the home in bankruptcy, the first mortgage holder would get the whole $110,000 from the sale (first mortgage holders always get paid first) and the second mortgage holder would get $0.

The second mortgage holder knows that they will get zero if the debtor bankrupts as it happens all of the time. They also know that the debtor is likely to go bankrupt if they're under water because it makes financial sense to do so. What we do is negotiate with the second mortgage holder. We tell them that they can either lose their entire interest in a bankruptcy, or we will offer to settle their lien for a paltry sum. If they accept, the bank can still write off the remaining unpaid amount on their taxes and get cash in the meantime. The debtor can then wait 90 days to avoid the transaction being classified as a "Preferential Payment" and then file a Chapter 7, reaffirming the up to date first mortgage, discharging their other unsecured debts and going on with their life.

If you think you might be a candidate for the "stripping" of a Chapter 7 mortgage contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.