Chapter 13

Published on: August 21, 2020

Start Planning Now for When the COVID-19 Relief Runs Out

COVID-19 has been on the scene for over 6 months now. The federal government implemented various relief programs like the Stimulus Checks and $600/week federal supplemental unemployment benefits to help consumers. These benefits cost taxpayers nearly $250 billion. Congress is presently debating what it should do next to help Americans get through the prolonged economic slowdown.

Businesses are going bankrupt to deal with the slowdown and loss of revenue. Many national retailers have filed bankruptcy, or soon will. J. Crew, Neiman Markus and JC Penney have filed bankruptcy. Just last week, Jacksonville-based Stein Mart filed Chapter 11 and is closing stores. When discount retailers like Stein Mart go under, it does not bode well for the economy.

Corporations have used the bankruptcy code as a way to bail themselves out financial straits for decades. Individuals can also use bankruptcy law to get a fresh start. In an interview with a then 80-year-old St. Augustine grandmother in 2008, a national news magazine asked:

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Published on: June 23, 2020

Can A Judgment Creditor Really Take My House to Pay the Judgment?

By Robert Wilbert

As the nation enters Phase 2 of the Coronavirus Lockdown, millions of Americans are still behind on their monthly bills. Many lenders have implemented programs to help people manage debt payments during this economic uncertainty. However, while people with student loans, mortgages and automobile loans were offered helpful alternatives to survive the Corona-induced downturn, people with credit card debts often were not. Debtors with medical debt have not fared well either.

A recent article in the California Law Review Online declared that, “The coronavirus pandemic is set to metastasize into a debt collection pandemic. This is because while evictions, foreclosures and student loan payments have been stayed by various government orders and federal regulations, there is no blanket moratorium or order stopping debt collection lawsuits. Many debt collection law firms have ramped up credit card collections lawsuits since they have not been able to bring or finish foreclosure lawsuits. Many credit card collection lawsuits end up with the consumer getting a default judgment entered against them, since they believe there is nothing that they can do to stop these lawsuits. Debt collection law firms nationwide kept filing new cases during the shutdown, consumers be damned. For example, in Maryland, two major debt collectors alone filed over 2,000 suits in April. These law firms must keep their gravy train rolling, even if many Americans have lost their jobs or part of their income, through no fault of their own.

After a homeowner gets a judgment against him or her, the law firm will usually attempt to get paid–voluntarily at first, and then by using court process to take the homeowner’s income and assets. There are several ways in Florida that a judgment creditor can collect on a judgment.

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Published on: May 15, 2020

With So Many Floridians Losing Their Jobs or Income, Now is a Good Time to See if You Qualify for Chapter 7 Bankruptcy

By Robert Wilbert

Because of the historic economic impact of COVID-19, economists are predicting a “tsunami” of personal bankruptcy filings. Well-known businesses like J. Crew, Beall’s, Goody’s, Gold’s Gym and Neiman Marcus recently filed for bankruptcy protection. Most major airlines could face bankruptcy without a government bailout.

Americans who have become used to using credit cards as a stop-gap measure to survive pay-cuts might not be able to rely on this method since nearly 50 million Americans just had their credit card limits cut.

For centuries, companies have used bankruptcy as a tool to survive, reorganize or to shut-down. Several airlines have filed bankruptcy over the past three decades, primarily to break contracts and modify pensions.

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Published on: April 6, 2020

How Coronavirus Might Affect Your Finances, and What You Can Do About It

By Robert Wilbert

Every January 1st, people make resolutions about changes they want to see in the new year; things like hitting the gym, saving money, finishing college or just vowing to be a better person make many lists. At the beginning of this new decade, no one had any idea that within weeks, something that we cannot even see would change the world—and change it drastically. Just 3 months into 2020, COVID-19, or the Coronavirus, has already infected over one million people and killed over 50,000, according to Johns Hopkins University.

Americans are now bracing for the worst week since COVID-19 came on the scene. President Trump warned that the upcoming two-week period will be “painful.” However, Dr. Fauci, a key member of President Donald Trump’s Coronavirus Task Force, added: “We should hope that within a week, maybe a little bit more, we’ll start to see a flattening out of the curve and coming down.”

People who still have jobs are worried about how long the virus will stick around and keep businesses shuttered. Tourism is dead in the Sunshine state and the governor finally issued a stay-at-home order. When people are at home, they do not support the local economy. This lessened demand for products and services has a ripple effect, which impacts all sectors of the economy. People are not only learning how interdependent the economy is, but also that some jobs are more “essential” than others.

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Published on: March 2, 2020

Filing Bankruptcy May Not Discharge Your Student Loans, but a New Court Program Could Lower Your Payments

By Robert Wilbert

Student loans affect all generations of Americans, from millennials to baby boomers. A recent study in Detroit showed that people nearing retirement age are one of the fastest growing demographics with student loan debt. In this election year, many presidential candidates are promoting ways they would address the student debt crisis. Younger people who have just earned their degrees are having troubling buying houses since their student loan debt is so burdensome.

With tax season upon us, some student loan borrowers are shocked to find out that their student loan servicers can intercept their tax refunds in order to pay delinquent student loan debt.

While Americans can file bankruptcy to get relief from most types of debts, student loans are among the types of debts that a debtor may not discharge in bankruptcy unless paying them back would be an “undue hardship” on the debtor. (This standard is extremely hard to meet and in one older case from Jacksonville, even a lawyer who said an auto accident left her disabled, failed to meet the high standard). In order to address this issue, the U.S. Bankruptcy Court for the Middle District of Florida (Jacksonville, Orlando, Tampa and Ft. Myers) recently instituted a “Student Loan Management Program” (Program).

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Published on: November 19, 2018

Bankruptcy Filings for Older Floridians Increase

By David M. Goldman

Bankruptcy Filings for Older Floridians Increase

Florida has seen bankruptcy filings for older Floridians increase in recent years. A bankruptcy filing is the term used when an individual or company cannot repay their debts and asks a Court for relief. A Jacksonville Bankruptcy Petition filed with the Court begins the bankruptcy filing. Older Floridians refer to individuals who are 65 or older and primarily live in Florida.

Bankruptcy filings for older Floridians have tripled over the last 25 years. This is a trend seen across the entire U.S. In 1991, only 1.2 out of every 1,000 Americans between ages 65 and 74 filed bankruptcy. By 2016, that increased to 3.6 out of every 1,000 Americans. Interestingly, while bankruptcy filings have increased for older Americans, bankruptcy filings have decreased among young Americans.

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Published on: November 18, 2018

Bankruptcy Filings increase for Older Floridians

By Kendal Schoepfer

Florida has seen bankruptcy filings increase for older Floridians in recent years. A bankruptcy filing is the term used when an individual or company cannot repay their debts and asks a Court for relief. A Bankruptcy Petition filed with the Court begins the bankruptcy filing. Older Floridians refer to individuals who are 65 or older and primarily live in Florida.

Bankruptcy filings for older Floridians have tripled over the last 25 years. This is a trend seen across the entire U.S. In 1991, only 1.2 out of every 1,000 Americans between ages 65 and 74 filed bankruptcy. By 2016, that increased to 3.6 out of every 1,000 Americans. Interestingly, while bankruptcy filings have increased for older Americans, bankruptcy filings have decreased among young Americans. Continue reading →

Published on: July 16, 2018

What information is needed to file Bankruptcy in Jacksonville, Florida

By Kendal Schoepfer

After a client has decided to file bankruptcy, their next question is always what information is needed to file bankruptcy in Jacksonville, Florida. Since Federal Law requires 100% full disclosure of a person’s assets, debts, and income, getting together the information needed to begin your bankruptcy can be very overwhelming at first. But, as with everything else, the information required can vary from person to person based on the number of debts and assets you might have. Here is a list of the most common documents your Bankruptcy Attorney might need to adequately prepare your bankruptcy petition.

Questionnaire: Your bankruptcy attorney will most likely begin by asking you to fill out a fairly extensive questionnaire. Not only will the questionnaire ask you to list all of your debts, income, and assets, it will ask many questions about many different types of assets you might have held and transactions you have done in the past two to five years. The questionnaire will give your attorney a very good overall picture of what your financial profile really looks like and will help them determine what other types of information is needed to file bankruptcy in Jacksonville, Florida. Continue reading →

Published on: June 29, 2018

Bringing your mortgage current through Bankruptcy in Jacksonville, FL?

By Kendal Schoepfer

Bringing your mortgage current though Bankruptcy in Jacksonville, FL might be a possibility. But you must first take into account your income, how far behind you are on you mortgage payments, as well as all of your other debts. Bringing your mortgage current through Bankruptcy in Jacksonville, FL is a three to five year commitment that comes with its own challenges.

In order to bring your mortgage current through Bankruptcy, you must first file a Chapter 13 Bankruptcy even if you qualify for a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy is a reorganization of your debts through a 60 month payment plan; referred to as a Chapter 13 Plan. Based on your income and family size, you make payments to a trustee. The trustee then distributes these monthly payments proportionally to your creditors. Whichever debts have not been paid off at the end of the 60 months are discharged. Continue reading →

Published on: June 18, 2018

Bankruptcy after Identity Theft in Jacksonville, Florida

By Kendal Schoepfer

As a very last resort for debt relief, many people look to bankruptcy after identity theft in Jacksonville, Florida. Identity theft is a major issue throughout the United States and can leave the victim with a mess to clean up. One of the biggest results of being the victim of identity theft is having to deal with debt collectors and having a bad credit score for debts you did not acquire; even after filing a police report. After filing a police report, it is almost impossible to actually locate the individual who stole your identity. This leaves you with very few options as to how to get away from the debt that is not yours. This is also all too often the case even after you have contacted each credit card company, informed them that the account is due to identity theft and provided them with proof that the debt is not yours (including a police report). These debts can even remain on your credit report, causing a bad credit score, after disputing each indebtedness with all three credit bureaus. Continue reading →