Discharge

Published on: June 26, 2011

Divorce and Bankruptcy

Filing for Bankruptcy in Jacksonville is often a complicated and frustrating process. Many believe that bankruptcy in Florida simply wipes out a person’s debts — however, sometimes this is not the case. For example, federal law states that almost all types of debts arising from a divorce are non dischargeable. So, if you have gone through a Florida divorce and have a decree from a judge, the debts listed on that decree will likely not be discharged in a bankruptcy proceeding under most types of Florida bankruptcy proceedings.

Even if you have gone through a divorce, some of your debts arising from that divorce might be discharged if you qualify for a Chapter 13 Bankruptcy Plan. The differences between the different chapters of bankruptcy proceedings is complicated, which is why you should contact a Jacksonville Bankruptcy Attorney in order to help you understand your options.

Additionally, it might make sense for some to file bankruptcy in Jacksonville prior to filling for divorce. If you are considering filling for divorce, contact a Jacksonville Divorce Attorney to discuss your situation.

Published on: June 24, 2011

I Walked Away from my Mortgage. Can I Get Rid of the Deficiency Judgment by Filing Bankruptcy?

By David M. Goldman

If you are one of the many people who walked away from your home before filing for bankruptcy, you might still owe the bank some cash. Generally, when you walk away from your mortgage, the bank will foreclose on your home, sell it, and likely take the loss on that sale (the selling price is usually lower than what you might have owed the bank).

However, Jacksonville Bankruptcy Lawyers are seeing an increase in what is called a “deficiency judgment.” Banks might ask for a deficiency judgment, which is essentially a lawsuit filed by the bank against you. It means the bank wants you to pay the difference between what you owed on the home and what it sold for.

For example, let’s say you walk away from a mortgage that you owe $200,000 on. The bank forecloses on your home and sells it for $50,000. The bank might then seek a deficiency judgment. If the court grants the judgment, you’ll be on the hook for that $150,000 + interest.

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Published on: June 2, 2011

Is It Possible For Me To File Bankruptcy Without My Husband Filing?

By David M. Goldman

Yes it is possible for one spouse to file bankruptcy and the other not to file. This may beneficial in some cases, such as when the bulk of the debt is in one spouse’s name only. Be advised, however, that if the non-filing spouse is a co-debtor on a secured debt, the non-filing spouse will still be liable for such debt. Also, the spouse’s income must be disclosed and considered in the bankruptcy. Deciding if both spouses or just one spouse should file bankruptcy involves an in-depth legal analysis and should not be taken lightly. A Jacksonville bankruptcy attorney can advise you if filing with one spouse only is the best legal strategy for you.

Published on: June 1, 2011

Is There a Way To Get Student Loans Discharged in Bankruptcy?

By David M. Goldman

Yes, there is, but it is extremely difficult and rare. Student loans are classified as non-dischargeable debt, meaning that they are still due even after filing bankruptcy. However, there is a way to get the court to discharge them: prove undo hardship. To do this, you must convince the court that you cannot maintain a minimum standard of living and also repay your student loans at the same time, your current bad financial situation is extremely likely to continue, and that you have made an honest effort to pay off the student loans. Although this is theoretically possible, it is very rarely granted by the court. A court might consider this route if you are permanently and totally disabled.

If you have questions about whether your situation might warrant a student loan debt discharge, contact a Florida bankruptcy attorney to discuss your case.

Published on: May 31, 2011

What Is Credit Counseling and Do I Have To Do It To File Bankruptcy?

By David M. Goldman

A new law that came out in 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act, requires consumers that file for bankruptcy to complete credit counseling within the 6 months prior to filing. This is a program that can be done online, in person, or over the phone. You can search the Internet for a provider. Also, there is usually a free course given once per month at the Federal Courthouse. Once you have completed the course, the provider will email or fax a Certificate of Credit Counseling to your Jacksonville bankruptcy attorney. Your The date you completed your credit counseling must be before your petition is filed.

There is also a second education requirement when filing bankruptcy, the Certificate of Debtor Education. This is very similar to the credit counseling but this one must be done after you file your bankruptcy. You must fulfill this requirement before the court will grant you a discharge. So for a Chapter 7, the debtor education must be completed within 60 days of your 341 meeting of creditors. For a chapter 13, the debtor education requirement must be completed before the last payment under your Plan is due, so this could be up to five years.