Jacksonville Bankruptcy Lawyer Blog

There are several steps that must occur before you can be garnished. Typically, a creditor must file a complaint, serve the debtor with a copy of the complaint then, if they debtor responds they fight it out in court or, more commonly, the debtor never responds and a default judgment is entered against them. Once this judgment is received, the creditor can petition the court for permission to garnish your bank account.
Recent court findings state that a garnishment from a Florida court does not have jurisdiction to hear cases involving bank accounts that originated outside the state.
This creates a huge hurtle for collection agencies. For example, I came from Maine and have bank accounts that originated there. If someone attempted to garnish me in Florida they would have to obtain a judgment against me, then petition the Maine court to domesticate a foreign judgment, then would have to follow Maine laws to garnish my wages. This would require the creditor to hire a lawyer licensed in multiple states or to hire multiple lawyers.
This even works when the bank has local branches. Even though your direct deposit and/or withdrawals occur locally, the money is actually still associated with the state of origin.
There are two problems with this defense. First, the defense must be brought up at the right time in the litigation or else it is waived and secondly, many judges are unlikely to be familiar with this defense and will therefore need to be educated of the case law to come to the correct conclusions.
If someone has served you with a complaint alleging that you owe a debt, whether you owe it or not you should consult an attorney to see what your options are. Contact a Jacksonville Bankruptcy Attorney or call us at (904) 685-1200 for a free consultation.

The head of family exception to wage garnishment also applies in an application for Chapter 13 Bankruptcy. Under the statutory exemption, an individual is considered to be the head of the family when (s)he "provid[es] more than one-half of the support for a child or other dependent." Fla. Stat. Ann. § 222.11(1)(c). This statute allows for the head of family whose disposable earnings do no exceed the statutory amount to exempt all of his or her earnings from garnishment or attachment. Additionally, the disposable earnings of a head of family exceeding that amount may not be attached or garnished unless the individual agrees otherwise in writing, and then the amount available for garnishment is limited by 15 U.S.C. § 1673.
However, if the individual filing is only claiming a spouse as a dependent, the dependent spouse's income must be insufficient to support him or herself without the income of the spouse claiming them. The purpose of the head of family exemption is to preserve the home and shelter for the family, so as to prevent the family from becoming a public charge.
The head of family exemption is intended to protect the family unit; therefore, when an individual filing for bankruptcy and claims the head of a family exemption, the dependent she is supporting must be receive income insufficient to independently support himself without the claimant's income. If the claimant's dependent is able to independently support himself, the claimant will not qualify under this exemption.

If you want to reaffirm a debt after filing for bankruptcy, your must executed a new agreement with your creditor. This reaffirmation agreement must be written and must be signed by both you and the creditor. Should you sign this reaffirmation agreement? Here are some pros and cons.

Pros
First, if you want to keep the property, you must sign the reaffirmation agreement. Also, if you do sign, you will be certain what your payments will be, what your interest rate is, etc. Signing a reaffirmation agreement may also help rebuild your credit, since you are taking responsibility for a pre-filing debt and are making regular payments on a debt.

If the collateral is something other than a car, say furniture or electronics, then you may be able to negotiate a lesser amount due before signing the agreement. This is because the alternative to reaffirmation for the creditor is to repossess and auction off the property -something that costs the creditor money. Sometimes creditors would rather renegotiate your contract than to go through this hassle.

Cons
By signing the reaffirmation agreement, you are stating that you are now going to be responsible for the debt again. So if you cannot pay in the future and default, you no longer have the remedy or protection of bankruptcy available to you (unless you file again). If you default, a creditor may be able to garnish your wages to cover your debt.

If you have a debt for which you would like to reaffirm, or have any other consumer law issue contact a Jacksonville Bankruptcy Lawyer today for your 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.

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.

Garnishments in Jacksonville usually take one of two forms:
A Continuing Writ of Garnishment, which deducts from your income; and
A Writ of Garnishment, which freezes your bank account.

A Continuing Writ of Garnishment is authorized under Title VI, Chapter 77, section 305 and it allows a creditor to take up to 25% of your income to pay your debt.

A writ of Garnishment on a bank account can give a creditor the right to deduct from your account the money you owe them. All too often these writs occur without notice the debtor who only finds out when they attempt to withdraw cash. When this happens, they should consult an attorney.

Certain amounts and kinds of income and people of certain income levels are exempt from garnishment, but you must file the proper paperwork and often attend a hearing (or hearings) to establish your exempt status.

If your income is being garnished, do not hesitate, contact a Jacksonville Bankruptcy Lawyer or call us at (904) 685-1200 for a free consultation.

Most debts are dischargeable in bankruptcy. However, there are a few debts that are not:

1. Debts arising from fraudulent conduct
2. Government-backed student loans (unless severe hardship can be shown)
3. Debts stemming from death or personal injuries related to your operation of a motor vehicle while intoxicated
4. Certain taxes and fines
5. Some debts not listed on your bankruptcy
6. Domestic support obligations (alimony, child support, etc.)
7. Debts arising from willful and malicious injury by the debtor to another person or property.

To see if your debts qualify for discharge, contact a Jacksonville Bankruptcy Attorney today to schedule a free consultation.

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

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

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

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

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

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

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

In Jacksonville, Florida, a creditor such as a credit card company cannot garnish your wages without a court order. The company must go to court and obtain a "writ of garnishment" before they even have authority to garnish your wages. They may then contact your employer, who will be required to comply with the court order and garnish a portion of your wages in order to pay your creditor(s). Further, a creditor can obtain a writ of garnishment that lasts until the judgment is satisfied, or until otherwise provided by court order.

Wage garnishment is generally considered a "last resort" in Florida, as it is difficult for the garnishee to continue paying bills and putting food on the table. If you are in such a situation, you should call a qualified Jacksonville Bankrupcty Attorney to discuss your options. There are often ways to legally stop a garnishment that is going to or already in place.

Yes, a creditor can freeze or take money out of your bank account if they have a judgment against you from the court. (If your delinquent debt is for unpaid taxes or child support, sometimes the creditor can take out money from your bank account without a judgment.) If you have a joint account and the other person on your account has the judgment, the creditor can also seize the funds from your account. It is up to you to prove at a hearing that these funds taken from the account are yours, and not the joint account holders. A Jacksonville attorney can help you do this properly.

A creditor can take this money from your account with no warning in most cases. They must notify you in writing the next day that they have taken the money, but by that time the damage is already done. Your bank must also notify you after the funds are taken.

A Jacksonville consumer law attorney can quite possibly get this money back for you, however. Oftentimes certain money is exempt from the creditor's grasp, but you must have a hearing to prove it. Social security income and veterans benefits income are exempt from being taken. Also, certain retirement income and disability income are exempt. There is other exempt monies as well. Contact our Jacksonville lawyer today to see if the money taken from your account is exempt and learn how our legal team can help you get it back.

First let me say that you should contact a Jacksonville consumer law attorney before the creditor gets a judgment against you. Only by addressing the complaint or lawsuit timely do you have a chance to avoid a judgment.

If a judgment has already been entered against you, a Jacksonville attorney may still be able to help you from getting your wages garnished. There are laws regarding what monies may be garnished and from whom. For example, the wages of the head of a family cannot be garnished unless that person's net wages are more than $500 per week AND that person has agreed in writing to allow their wages to be garnished. Someone is a "head of the family" if they reside in Florida and provide more than one-half of the support of a dependent. If you do not qualify as a head of the family, you still might have protection against wage garnishment. Contact a Jacksonville attorney who specialized in wage garnishment today if you might be at risk of wage garnishment to protect your rights.

In many countries around the world, if you cannot pay your debt, you can be thrown in jail. The United States is not one of those countries. In the U.S., you cannot be thrown in jail for defaulting on your financial obligations. (An exception is child support obligations or when you are ordered to do so by a court- you are not actaully put in jail for failing to pay the debt, but for being in contempt of court for not following the judges order)

A creditor can, however, take you to court and get a judgment against you. It is very important if a creditor files suit against you to contact a Florida Bankrupcty attorney to discuss your case. If you do not properly and timely answer the creditor's complaint, the creditor can get a default judgment against you, even if you dispute the validity of the debt. After getting a default against you, the creditor may be able to garnish your pay. A Jacksonville consumer law attorney can help you defend your suit and even negotiate with the creditor. Call 904-685-1200 today for a free consultation.

When you file for bankruptcy in Jacksonville or Florida, an automatic stay goes into effect immediately. (Unless there has been aprevious bankruptcy, then you have to ask the Judge for one). This halts virtually all legal actions and collection actions against you or if they continue and a stay in in place they can be undone in most cases. This can really bring relief to those with creditors calling all day long. This also means that any foreclosure or garnishment action is halted, and a creditor cannot repossess your car, or the court cannot sell your home. So if you are behind on payments and think your collateral may be subject to repossession, a Florida bankruptcy can help to protect your assets while you figure out your next step.

If you think that getting a fresh start by filing for bankruptcy might help your situation, contact a Jacksonville bankruptcy attorney today at 904-685-1200 to assess your needs.