Discharge

Published on: September 13, 2011

Toni Braxton Receives Bankruptcy Discharge

Famous singer Toni Braxton filed for relief under Chapter 7 Bankruptcy in September of 2010, listing luxurious personal property items, such as a Porsche, lavish household contents, and expensive jewelry. She claimed around $1.6 million in assets. The judge in her case has now granted her a discharge. This means that she will no longer be liable for certain debts. This is her second bankruptcy preceding since 1998.

To see what assets of yours you would get to keep after filing for bankruptcy, contact a Jacksonville Bankruptcy Attorney today to discuss your specific situation.

Published on: September 8, 2011

Private School Loans Dischargeable in Bankruptcy?

By David M. Goldman

There is current legislation before both the US Senate and US House of Representatives that would allow private school loans to be discharged in bankruptcy, as most of them were before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Legislators are reasoning that there is a strong interest in not allowing federally backed student loans to be discharged in bankruptcy, but these reasons do not apply to private school loans and so they are rethinking the laws. The New York Times wrote an interesting article on the topic.

To see if your loans qualify for discharge, contact a Jacksonville Bankruptcy Attorney today to discuss your situation.

Published on: September 6, 2011

How Long Will It Take Me to Pay Off My Debts With A Chapter 13 Bankruptcy?

By David M. Goldman

When you file for Chapter 13 bankruptcy, you will pay off your debts through a Chapter 13 Plan that lasts anywhere from 3-5 years. A Chapter 13 Plan allows a debtor to catch up on most any debt, including mortgage arrearages, owed taxes, missed payments on vehicles, HOA dues, legal fees, fines owed to the city or state, and more.

Your unsecured creditors might also get some payments through the Chapter 13 Plan. If they will and how much will they receive is determined by your means test and the amount of unexempt property that you have. Any amount of unsecured debt that you have over this amount will be discharged at the successful conclusion of your Chapter 13 bankruptcy. For example, if you owe $20,000 in unsecured debt and your case only dictates that you must repay $5,000 to unsecured creditors, the $15,000 balance gets discharged or forgiven when you successfully complete your Chapter 13 Plan. If your case dictates that no money must be paid to unsecured creditors, then the entire balance of $20,000 would be forgiven.

To see how a Chapter 13 Plan would be structured for your specific situation, contact a Jacksonville Bankruptcy Attorney today for a free consultation.

Published on: August 31, 2011

Can I Get Rid of My Student Loan Debt in Bankruptcy?

By David M. Goldman

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

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

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

Published on: August 30, 2011

I Received A Discharge In Bankruptcy, But The Creditor Keeps Contacting Me. What Should I Do?

By David M. Goldman

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

Published on: August 23, 2011

What is Debt Counseling and Do I Have To Do It To File Bankruptcy?

By David M. Goldman

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

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

Published on: August 12, 2011

How Often Can a Person File Bankruptcy?

By David M. Goldman

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

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

Published on: August 2, 2011

Florida Bankrupcty Lawyer: Can I sell my Assets Prior to Filing Bankruptcy?

By David M. Goldman

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

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

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

Published on: August 1, 2011

Will Bankruptcy Relieve my Obligation to Pay Punitive Damages?

By David M. Goldman

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

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

Published on: July 15, 2011

I Am Two Years Into My Chapter 13 Plan and Want To Get Married. Will This Affect My Bankruptcy in Florida?

By David M. Goldman

When someone files a Chapter 13 bankruptcy, they must repay some of their debts over a three to five year time period. These payments are dictated by a Plan that is filed with and confirmed by the court. The Plan is based on your income and your debts. If you get married two years into your Plan payments, the marriage might affect your bankruptcy. You might have to count the new income in your bankruptcy. Your new spouse will not be liable for your old debts and the bankruptcy will not appear on their credit report. However, your Plan payment amount might change.

Every circumstance is different. Contact a Clay County bankruptcy attorney today to determine if your upcoming nuptials will impact the amount you must pay your creditors through your Chapter 13 Plan.