Jacksonville Bankruptcy Lawyer Blog

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.

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.

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.

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.

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.

If you find that you cannot make your payments under your confirmed Chapter 13 Plan, you should call and write your trustee's office and let the trustee know when and why you cannot make your payments, and whether the situation is temporary or permanent. If it is temporary, the trustee will usually agree to give you time to catch up. If, however, you permanently cannot make your Plan payment, the trustee may move to dismiss your case or convert your bankruptcy to another chapter. If your situation is permanent, there is another solution. Your Jacksonville Bankruptcy Attorney can file a motion with the court to modify your Chapter 13 Plan payments. Call us today to discuss your case.

When someone files for bankruptcy a trustee is appointed by the court to hold the debtor's unexempt property in trust for the benefit of that debtor's creditors. That property is then either liquidated at auction or repurchased by the debtor. Because there is a cost associated with the collection and liquidation of assets, the trustee will often give a small discount to the debtor, should the debtor wish to pay for or "buy back" the unexempt property. These buy backs should be thought of as a courtesy, as they are not a right of the debtor and as such the terms are between the debtor and trustee.

In a Chapter 7, the trustee's pay is set forth by statute and begins as a set portion of the filing fee, say $60.00 of the $299.00. From there they get a graduated percentage of the property they liquidate for the benefit of the creditors. Those percentages are set forth in 11 USC 326(a) as follows:
25% of the first $5,000;
10% of the next $50,000;
5% of the next $1,000,000; and
3% of any monies in excess of $1,000,000.

In a Chapter 13, the trustees get paid a flat rate percentage of all the money they collect for creditors. This rate varies from state to state, but in Florida it is set at 10%, however it is actually calculated by dividing the total sum by 0.9 rather than multiplying by 0.01. As this percentage includes ANY payment to a creditor, including ongoing payments on home mortgages, it is hugely advantageous if we can allow a debtor to pay for their home outside their plan so as to avoid those ongoing charges.

Continue reading "Who is the Trustee and how does the Trustee get paid?" »

A means test dictates what chapter of bankruptcy you qualify for. This is a very important part of your case, and a Jacksonville Bankruptcy Attorney will make sure that it is done correctly. The attorney will input your income for the prior six months and then take deductions for the things allowed by law. Knowing what deductions can be taken and how to accurately calculate them is extremely important, as this will lower your disposable monthly income amount.

Your disposable monthly income number is one of the most important things in your bankruptcy case. This number dictates whether you can file for a Chapter 7 bankruptcy or if you must file for a Chapter 13 bankruptcy. Also, if you file for Chapter 13 bankruptcy, your disposable monthly income number will dictate how much money you must pay to unsecured creditors in your Chapter 13 Plan.

The means test can be very tricky, you really need to know what you are doing to get an accurate test. If it is not done correctly, the trustee will file an objection in your case. We offer means testing here at Apple Law Firm. Contact a Jacksonville Bankruptcy Attorney today for your free consultation.

Yes. You must disclose all sources of income on your bankruptcy schedules. You can, however, put on the schedules that this support is not likely to continue in the future, but you must disclose any monies received in the prior six months from any source. Some income, however, is exempt from counting towards your Current Monthly Income calculation as reported on the means test. Some social security income, unemployment income, pension income, etc. will not count towards your Current Monthly Income. Your Ponte Vedra Bankruptcy Attorney will know how to list your income so it will be most beneficial to you. Contact us today at 904-685-1200.

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

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

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

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

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

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

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

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

In Jacksonville when someone files for bankruptcy, they must attend a 341 Meeting of Creditors. This is a meeting at the federal courthouse where the creditors in your Florida bankruptcy case get a chance to show up and speak regarding their claims in your case. Most of the time, creditors do not show up to the meeting, and it is just you, your Jacksonville bankruptcy attorney, and the trustee. In Jacksonville the trustee will ask you questions regarding your case.

Some sample questions include: Does anyone owe you money? Do you expect to inherit any property in the next six months? Do your bankruptcy schedules list all of your personal property? Have you previously filed for bankruptcy? What is the address of your current employer? Do you have any domestic support obligations? The trustee will also ask to see your driver's license and social security card.

Though it can seem intimidating, the 341 meeting of creditors is not all that bad if you and your Jacksonville Bankrupcty lawyer property prepare for the meeting. The total time you will be talking with the trustee is approximately 5-10 minutes. If you are nervous, get to the courthouse before your scheduled time and watch some of the 341's before yours. You are allowed to do this. That will give you an idea of what to expect and will calm your nerves a bit. If there were to be any problems with your case, your Jacksonville bankruptcy attorney would know how to handle it and can work out almost any problem with the trustee. Contact us today at 904-685-1200 for your free bankruptcy consultation.